Yelm Prairie PTO - Audit Worksheet Responsibilities The auditors need to complete their report by: Frequency of Audit Audit Committee/Auditor

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1 Yelm Prairie PTO - Audit Wrksheet Respnsibilities T certify the accuracy f the bks and recrds f the financial fficer; and T assure the membership that the assciatin's resurces/funds are being managed in a businesslike manner within the regulatins established fr their use. Auditing invlves fllwing financial transactins thrugh recrds t be sure that receipts have been prperly accunted fr and expenditures made as authrized in the minutes and in cnfrmity with PTO bylaws, standing rules, and budget limitatins. The utging treasurer cannt pay bills after the bks are clsed fr audit. Upn assuming ffice, the incming treasurer may depsit funds in the PTO bank accunt. During the audit prcess it is recmmended that expenditures within an adpted budget be limited t thse f an emergency nature. The auditrs need t cmplete their reprt by: Frequency f Audit An audit is t be cnducted annually, at the clse f the fiscal year. An audit may als be requested anytime smene suspects that anything imprper has ccurred with the bks r finances r when a new persn becmes treasurer (ther than at the beginning f each fiscal year). Audit Cmmittee/Auditr The audit is t be cnducted by an Audit Cmmittee appinted by the PTO s Executive Bard. The Cmmittee is cmprised f three members in gd standing. Members f the cmmittee cannt have had signature authrity n the checking accunt nr have been a member f the Executive Bard fr the perid which is being audited. Alternately, the PTO Executive Bard may, after full disclsure t the membership, hire an utside auditr wh wuld be cmpensated at market value fr the services prvided if the audit prves unfavrable r if financial findings are questinable. Bks & Recrds ALL past & present bks/financial recrds are the prperty f the PTO. The treasurer is nly the custdian f them. The audit cmmittee needs cpies f all f the treasurers recrds and a checklist is included t assist in the cllectin prcess. Checklist The treasurer shuld deliver t the auditing cmmittee the fllwing: Cpy f the last year s audit reprt Cpy f current By-laws Bank Statements and Depsit Receipts Checkbk and Canceled Checks Cpy f Audit Wrksheet Treasurer's Ledger Bk Annual Financial Reprt Receipt Bk All Treasurer s Mnthly Reprts Itemized Statements and Receipts f Bills Paid Check Request and Cash Verificatin Frms, if applicable Adpted budget and any apprved amendments fr the audit perid Page 1 f 7

2 Cpies f all Bard & General Meeting Minutes (especially if impacting the PTO s financial dealings Prf f: WA Secretary f State Annual Reprt, I.R.S. taxes filed and bnding insurance receipt/letter; dnatins given r received (letters, receipts) Any ther requested dcumentatin (specify): Audit Prcedure Start the audit with the recrds psted after the last audit. Check t see if the amunt shwn n the bank statement crrespnds t the starting balance recrded in the checkbk and ledger. Recncile bank statements with the cancelled checks. Make sure that every check written is substantiated with a check request r a bill f sme kind shwing reasn fr disbursement. Verify that all incme and expenditures are allcated int the same categries that cnstitute the apprved budget. Make certain that mney cllected fr a specific purpse (special prjects, schlarship funds, dues, etc.) has been disbursed. Recncile each depsit slip with bank statement and checkbk entries. Make sure additins and subtractins are crrect in all instances. Check all cash receipt slips issued and verify with prper entry in ledger. Check each mnth's ledger entries fr errr, and crsscheck against checks issued and receipts psted. Crss-reference checkbk stubs with checks issued. If a check was issued and n check request can be substantiated, check t see if it was an apprved budgeted item. Check treasurer's reprts and annual reprt fr accuracy. After any errrs have been crrected by the treasurer and the cmmittee is satisfied that the financial accunts are crrect, draw a line acrss the ledger where the audit cncludes, and sign and date the ledger using a different clr ink: "Examined and fund crrect. (name) (date)." Ensure that all checks were accunted fr including vided checks; make sure that all checks are imprinted with sequential numbers and that all checks were signed by (2) fficers. Reprting If all is in rder, the audit cmmittee shuld prepare a reprt (see Audit Reprt attached) and each member f the cmmittee r the auditr shuld sign it. The reprt will indicate the status f the bks and recrds and whether the audit cmmittee finds the bks t be "crrect," "substantially crrect," "incmplete," r "incrrect." The reprt may als include recmmendatins t Page 2 f 7

3 imprve the recrdkeeping and these recmmendatins are t be attached t the minutes. When the reprt is presented fr adptin at the rganizatin s meeting, the audit cmmittee chair reads nly the statement, "The audit cmmittee has examined the bks and find them... "crrect," "substantially crrect," " incmplete," r" incrrect." If the reprt reflects that additinal infrmatin and verificatin is needed, the treasurer shuld prvide it. The audit reprt must be fficially adpted and must be included in the rganizatin's annual reprt. N statements, implicit r explicit, shall be made regarding any persn if prblems are detected by the auditr(s). If mismanagement f funds is suspected, cntact the Principal r Yelm Cmmunity Schls District Business Administratr immediately fr assistance. The annual audit is t be kept in the treasurer's recrds. If the validity f the audit is questined, an independent certified public accuntant shuld be engaged. At any time during the prcess, the President r Vice-President may be cntacted fr infrmatin r assistance. ALL COMPLETED AUDIT WORKSHEETS & SUPPORTING DOCUMENTS ARE TO BE KEPT ON FILE IN THE PTO ROOM FOR 7 YEARS. Page 3 f 7

4 Yelm Prairie PTO Audit Wrksheet -- Revised June 2013 KEY: Y dentes cmpliance N dentes nn-cmpliance NA dentes nt applicable Sectin 1. ANNUAL BUDGET Was an annual budget created & vted n by PTO at the beginning f the schl year? YES / NO Treasurer t prvide a cpy f annual PTO expenses IF NO, did Treasurer prvide a dcument utlining why a budget was nt created? OR were reasns fund in any meeting minutes? IF NO budget created, Treasurer t prvide reasns why nt cmpleted r prvide meeting minutes that explains this discrepancy. IF NO infrmatin was given fr the abve items, please nte this in recmmendatins sectin. Is there evidence that PTO made amendments t the annual budget AFTER initial annual budget was vted n? If applicable, Treasurer t prvide cpy f apprved amendments. IF NO evidence was prvided, please nte this infrmatin was missing in recmmendatins sectin. Sectin 2. ACCOUNTS RECEIVABLE Are cash/debit/credit handling prcedures utlined in writing? (PTO by-laws) Is there prper dcumentatin fr all mney received? Mney shuld nt be received withut attached paperwrk. Are all funds prmptly depsited (within 2 banking business days f an event/fundraiser)? Cmpare receipt recrds with bank depsits. Page 4 f 7

5 Sectin 3. DONATION RECORDS/RECEIPTING PTO usually makes an annual mnetary cntributin t The Salvatin Army ( Santa Visit ). Smetimes PTO receives dnatins in-kind (nn-cash) gds r services frm a business r individual (Tree sales; raffle items fr Hallween Carnival, etc.). Treasurer t prvide an utline f when dnatins made r received & purpse -OR- Prvide cpy f thank yu letter(s)/receipt(s) t dnr(s) Is there prf (ledger; checkbk register; meeting minutes r written letter) that PTO recrded all mnetary r in-kind dnatins thrughut the schl year? IF NO evidence was fund n the purpse f these dnatins, please nte this infrmatin was missing in recmmendatins sectin. Sectin 4. TREASURER S REPORT / FINANCIAL STATEMENTS Are mnthly financial statements prepared in a timely manner and submitted t the membership? Are accunt balances in the financial recrds recnciled with amunts presented in the bank statement? Sectin 5. BANK STATEMENT & RECONCILIATION Name f Financial Institutin in which PTO maintains a checking accunt: Name f Financial Institutin in which PTO maintains a savings accunt: (if applicable) Is the bank recnciled n a timely basis? Test the recnciliatin fr several mnths in the fiscal year. Trace transactins between the bank and the mnthly file fr cmpleteness and timeliness. Are there checks that have been utstanding ver three mnths? Was there a receipt r invice fr all expenditures? Were all checks imprinted in sequential numbers? Were all PTO checks signed by (2) fficers? Sectin 6. ACCOUNTS PAYABLE Are all disbursements paid by check nly? YES / NO IF YES, are they clearly utlined in the checkbk register? Are credit r debit cards als used t pay disbursements? YES / NO Are credit and debit card purchases clearly marked in the checkbk register? YES / NO Page 5 f 7

6 Is there written dcumentatin filed t supprt all disbursements? N check/credit card r debit purchase shuld be written withut prper dcumentatin/backup. Are pre-numbered checks used? Have all the check numbers been accunted fr including vided checks? Is there evidence f unpaid invices including vendr name, invice date, and due date? (in check bk register) Are any f the accunts payable items significantly past-due? Sectin 7. INSURANCE POLICIES Is there prf that PTO purchased general liability insurance this schl year? YES / NO Treasurer t prvide cpy f insurance (Yelm Cmmunity Schls) IF NO evidence was fund r prvided, please nte this infrmatin was missing in recmmendatins sectin. Is there evidence that PTO filed a claim made against its insurance? If applicable, Treasurer t prvide cpy f claim IF claim was made but NO evidence prvided, please nte this infrmatin was missing in recmmendatins sectin. Sectin 8. FEDERAL & STATE REPORTING OBLIGATIONS Did PTO file the required federal tax frms, in a timely manner? (Frm 990-EZ; Frm 1023; ther tax frm, if applicable) Treasurer t prvide prf f tax-filed frms Is PTO s Emplyer Identificatin Number (EIN) listed n the tax frm: YES / NO Please write the EIN # listed n frm: Did PTO s grss incme exceed $25,000 fr the mst recent fiscal year? YES / NO Can yu tell if PTO has been granted tax-exempt status? YES / NO Treasurer t prvide prf f Letter f Determinatin r ther fficial dcument IF NO evidence was fund r prvided, please nte this infrmatin was missing in recmmendatins sectin. Page 6 f 7

7 Is there evidence that PTO filed its Nn-Prfit Crpratin Annual Reprt with the WA Secretary f State s Office by Nvember 15? YES / NO Treasurer t prvide cpy f filed reprt Please list the Crpratin number listed n the frm: Date f filing: Nte: Annual Reprt. Generally, the Secretary f State sends the reprt t the crpratin s registered ffice at least 30 days prir t the required filing date. Failure t file the reprt within the required time perid results in autmatic disslutin f the crpratin by the Secretary f State. (Excerpt frm Washingtn Nn-Prfit Handbk, WA Secretary f State) Sectin 9. SAVINGS AND INVESTMENT ACCOUNTS If applicable, Treasurer t prvide savings & investment infrmatin Are all savings and/r investment accunts recrded in the financial recrds? Cmpare mnthly statements t the bks. Are earnings r lsses frm savings and investment accunts recrded in the bks? Sectin 10. CHARITABLE SOLICITATIONS IF applicable: Treasurer t prvide prf it registered under CSA (WA State Secretary f State) if PTO grssed mre than $25,000 a year. Currently, PTO is exempt frm the CSA because it DOES NOT raise mre than $25,000 a year. Did PTO register by Octber 31, under the Charitable Slicitatins Act (CSA)? The Bttm Line: If PTO were t grss mre than $25,000 a year r mre by the public (fundraising), it must file an additinal frm thrugh the WA Secretary f State s Charitable Prgrams and submit payment. Hwever it des nt currently meet this criterin. Page 7 f 7