Treasurer, Part 1 Terri Lyn George treasurer@pccpta.org
Good morning. My name is Terri Lyn George. I love being your Pinellas County Council Treasurer. BUT before we get started, I have a couple of housekeeping notes: Take Groupie Now
Resources You are never alone, we are here to help! www.pccpta.org Dollar$ and $en$e, Florida PTA Kit of Materials www/floridapta.org www.pta.org Back to School Kit, E Learning Courses Leadership/Convention County Council, local trainings Peers, close local units County Council Treasurer treasurer@pccpta.org
I am the treasurer for my unit, now what? To begin lets follow up on a few of these items: Review treasurer resources Set up your Treasurer materials Review your Bylaws, Standing Rules and Policies and Procedures Are signatures at the bank updated If there was a debit card to a previous treasurer/president; has it been turned in and canceled. If so, have new Electronic Banking agreement been signed. Account passwords and log in s changed Was the Financial Review Complete Has the 990 form (which ever is applicable) been filed
Insurance Why is it important for local units and county councils to have insurance? Overview: All individuals authorized to handle PTA funds should be covered by bond insurance. Just like a business, your PTA is exposed to certain risks that you may or may not be aware of. You may do everything you can to prevent something from happening to your PTA, but in reality no one can guarantee that things are going to run smoothly all of the time. PTAs are not immune from liability. Your PTA insurance policy will protect not only the assets of the PTA and the officers/board members, but can pay attorney fees to defend you, whether the lawsuit has merit or not. There are five separate risks that your PTA needs to be aware of: General Liability Accident Medical Fidelity Bond Property Directors and Officer Liability Your Administrator and your President (or appointed representative) hopefully attended the Insurance class
SAMPLES Sample Proposed Budget Proposed/Projected Summer Funds (Interim Funds) Sample Treasurer s Report 3:1 Rule Do 3 programs for every 1 fundraiser. Programs are Free or fees charged cover the cost.
Budget Meeting BUDGET COMMITTEE & CREATING A BUDGET The Treasurer should serve as the chair of the Budget Committee. Unless your Bylaws or Standing Rules state otherwise, the officers will make up the Budget Committee. The budget committee usually meets before the school year starts to create a tentative budget for the new school year, shares the tentative budget with the board, then at the first general meeting of the year presents the budget. The budget must be adopted by the general membership before any funds are spent. Suggested items to have on hand for the budget meeting: Previous year final budget Previous year completed audit Calculators, pens Proposed calendar for planning Plan of Work, include donations for accurate accounting
Budget Do s and Dont s UBI is Unrelated Business Income is income that the PTA did not do more than 50% of the work. (this is not the same at Donations or Sponsorships) Remember that your UBI (Unrelated Business Income) needs to stay less than $1,000. If it goes over, you risk having to pay taxes on it. Can not purchase Gift Certificates or Gift Cards Can not distribute donated Gift Certificates or Gift Cards If you do have donated gift cards and want to use for say, staff appreciation, give them to the school to distribute. Should not solicitant them on behalf of PTA for this purpose. Can not give gifts to a specific person for retirement, birth of a baby, send flowers to a specific person for ANY reason You CAN use a donated gift card for purchasing items of the PTA doing business (i.e. a Sam s Club G/C to purchase items for an event you are hosting) You CAN use donated gift cards to use in a Silent Auction. I will answer questions about this topic in the next hour.
Membership Dues Remember that membership dues are due to the state office every month with the final payment by May 1 st. You must have dues submitted for County Council award eligibility by April 1 st. This form can be found on the Florida PTA website State and National Dues Payment Form Use this form for MEMBERSHIP DUES and FOUNDER S DAY GIFTS ONLY NOT FOR ADDITIONAL MEMBERSHIP CARDS All PTA/PTSAs are legally required to send membership payments to the state office MONTHLY, as collected. State and National dues are not to be used as funds for the local unit or considered a part of the local unit s budget. As of May 1st each year, PTAs that have not paid any dues will be considered inactive and appropriate action will be taken. Any dues received after May 1st, will not be credited to the current membership year. For the Reflections Program, Scholarships and other PTA programs, dues must be paid monthly and no later than December 15 th. (This refers to membership dues NOT County Council dues, which have a separate date.) For membership reporting, the deadline for FINAL DUES PAYMENTS TO FLORIDA PTA IS MAY 1, 2015. Each person joining your local unit PTA automatically becomes a member of the state and national associations. The state portion of a member s dues is $1.25; the national portion is $2.25. Each officer receives a free subscription to the Florida PTA enewsletter and the National PTA s Our Children, as well as additional resources (sent throughout the year). SO THAT WE ACCURATELY CREDIT YOUR LOCAL UNIT PTA, PLEASE COMPLETE ALL SECTIONS ON THIS FORM. Date Submitted Membership Year (i.e., 2014/15) # of Members Members @ $3.50 each $ National PTA ID # Founder s Day Gift $ Total Amount Enclosed $ County Full Name of PTA School Address President s Name President s Email Treasurer s Name Treasurer s Email School Telephone City Zip President s Telephone Treasurer s Telephone Make checks payable to Florida PTA and mail to the address below or use our ONELINE secure ACH payment service (www.floridapta.org): Florida PTA 1747 Orlando Central Parkway Orlando, FL 32809 Please DO NOT staple or tape check to this form. PLEASE NOTE: There is a $35.00 charge for returned checks. Be sure signatures and the amount is correct. Due to reporting requirements For Office use only we CANNOT refund membership over-payments. www.floridapta.org (2014-2015) 0
Best Practice in Handling Monies Only handle money with another board/chair member present. All deposits are verified and initialed by another board/chair member. If Treasurer did not make deposit, upon receiving deposit, recount and initial (remember first rule at top of slide). Never make a check payable to Cash. Make it to the board member going to bank to get an Event Bank. When redepositing the Event Bank, it is a good practice to make it a separate deposit so that it is easily identifiable.
Deposits Committee chair has contacted you that they have a deposit is ready and has placed it in the PTA safe. Verify checks payable to PTA, signed, dated Endorse each check - For Deposit Only Complete bank deposit form (some banks offer carbon books) Document what account monies received are from (i.e. $150 PTA Membership and $300 for T-shirts) Hold dual signed PTA documents until bank statement verification (then file hard copy) Retain bank deposit receipt for your records, many staple the deposit receipt to the deposit ticket (with copies of the checks). You will be amazed at how often you will need to refer to the checks deposited.
Deposits Continued To allow for more transparent accounting practices, it is advised to keep deposits separate as to the reason or the line item in your budget. (Example, funds collected for a yearbook and funds collected for membership dues should have two separate bank deposit slips.) Deposit all monies promptly in the local PTA approved bank account. NEVER deposit monies in a personal bank account or in the school account. NEVER allow the school, school clubs or other organizations to deposit money in the PTA account. If other groups deposit money through the PTA, it is as if you, as a taxpayer with a Social Security number, allow someone else to use that number. A PTA may jeopardize its tax exempt status by assisting another organization to avoid compliance with tax laws. When preparing the bank deposit ensure the checks are dated, signed and made payable to your PTA. Then endorse using a permanent stamp or write For Deposit Only. Ensure a Cash Count Worksheet, Cash Verification or a PTA Deposit Form signed by two people has been verified before taking the deposit to the bank (see General Controls and Best Practices: Handling Cash and Funds). Keep the receipt given by the bank and either attach it to the dual signed form, your deposit book or hold until the monthly bank statement when it arrives. See Finance Quick Reference Guide for information on Deposits and Joint Fundraising.
Reimbursements What is a reimbursement? A reimbursement is payment to an authorized person making purchases on behalf of the PTA. Before writing check confirm: authorized receipts/invoice funds are within budget funds are available and in the bank ensure reimbursement form is completely filled out and the committee name is listed original receipt is attached to the form
Writing Checks Do s and Don ts ALWAYS have checks signed by 2 check signers. Typically the Treasurer and the President. Make sure the reimbursement request forms are approved by another board member (other than the Treasurer), this is typically the President. NEVER sign your own check. NEVER sign a check for someone that lives in the same household (i.e. Don t sign a check made payable to your husband/roommate) NEVER purchase Gift Certificates or Gift Cards
Bill Payments What is the difference between a bill payment and a reimbursement? A bill payment is a payment made to a company or program that offered services to the PTA. authorized receipts/invoice funds are within budget funds are available and in the bank The original bill from the company (service provider) must be attached ensure bill payment form is completely filled out and the committee name is listed
Electronic Payments ELECTRONIC BANKING BEST PRACTICES Many of you may have already been offered such cards by your financial institution as a way to make banking easier. The local unit PTA s board of directors should discuss and set policy BEFORE obtaining any debit/credit/gift cards for use by the local unit PTA. Internal Controls for Electronic Banking: Policies/procedures should be in writing and reviewed annually. Financial responsibilities, including the monitoring of credit/debit card use should be separated between multiple people: A person(s) who does not have the authority to approve payment should review invoices for appropriate use of funds based on the pre-approved budget; Bank statements and bank reconciliations should be reviewed on a monthly basis by someone who does not have the authority to approve debit/credit card purchases. Follow all best practices for money control, IE original receipt stapled to Electronic payment form and signed by purchaser, committee chair and president. MUST fill out an Electronic Banking agreement (Found in the Dollar$ and $en$e). Is expense an authorized expense
Banking PTA account only (not school or personal). Must be sent to school s address. DO NOT go paperless. Copies of cancelled checks should be included in monthly bank statement. NO PTA monies should EVER, for ANY REASON be deposited in your personal account or school s account. PTAs can maintain checking, savings, CDs or other forms of bank accounts PTAs are allowed to earn interest on their bank accounts Only the board can approve a change in banks (and must be recorded in the minutes) Three signatures on file usually President, Treasurer, Vice President (exceptions) When you leave the school with a deposit, you should be going the bank in the next few hours. PTA Moines are only held in a PTA safe or secure location, never in the school safe or with the school bookkeeper. PTA must have their own lockbox/mailbox on campus that is visible by others or monitored by a camera. Limited people should have access to open. Usually the Treasurer and President.
Bank Statements Bank statements along with check images or cancelled checks should be reviewed on a monthly basis. Statements should be opened by a non-check signer on the account. They should receive the unopened bank statement and review the activity before passing it on to the Treasurer for reconciliation. The reviewer should be looking at checks for dual signatures, vendor names are known, fees are not excessive, appropriate documentation on deposits. Immediately upon receiving a bank statement the Treasurer should balance the ledger (books), check book and prepare a monthly report for the next meeting. Ensure that 2 non signers sign and date the bank statements after they review them (one being the administrator and the other being a non-checker signer on the executive board. It is a good practice to announce at each board meeting (and record in the minutes) which statement(s) have been reviewed by whom. Caution: Be sure to receive statements from any and all PTA accounts!
Balancing the Bank Statement Compare beginning balance to previous ending balance For each deposit and check listed: compare amount to documentation (form & bank receipt) check off item in bank transaction log if applicable, update in check log list, stub etc. update monthly report File paperwork
Mid Year Review In the middle of our school year review where you stand with your budget actual expenses vs. projections. What to look for: Did any fundraiser/program come in under projection Did any fundraiser/program come in over projection If adjustments need to be made, do a Proposed Budget Amendment. Just like the first budget, it must be approved by General Membership.
You ve Got This!
??? QUESTIONS??? We will stop here because I know you may have MANY, MANY questions. I will answer some until the end of our time and more in the next class. Please make sure you put your name, school, phone number (not the school s) and e-mail on back of index card. If I don t get to your question, I will contract you to answer it.
Preparing for the Financial Review The purpose of the annual audit or financial review (internal or external) is to certify the accuracy of the books and records of the financial officer and to assure the membership that the association s resources/funds are being managed in a businesslike manner within the regulations established for their use. By exposing the books and records for review it is an excellent chance to detect the level of internal financial controls (strong or weak). Refer to Dollar$ and $sen$e for Finance Quick Reference Guide for additional information. WHEN TO AUDIT/REVIEW All PTAs must have their financial records reviewed annually even if the Treasurer is holding the office for another year. The records also would need to be reviewed at any time the treasurer is replaced during the year. Check your PTA s bylaws for the procedure to select the person (s) to conduct the financial review.
Financial Review Continued The Treasurer should start verifying the financial records are in order before the end of the fiscal year (June 30). Once the June bank statement is received, reconciled and the Treasurer s Annual Report produced then the books and financial records can be turned over to the audit or Financial Review committee. However if your gross revenue exceeds $50,000 and your unit files a 990-EZ or 990 with the IRS (Internal Revenue Service) you may choose to complete the return first, then turn over financial records to the Financial Review committee or auditor so they can review the return and schedules. Once the Financial Review is complete, the outgoing Treasurer can sign and mail the return.
Financial Review Continued PREPARING FOR THE AUDIT/REVIEW After the June financial report has been reconciled and Treasurer s Annual Report produced, the treasurer (no one else) should deliver the following to the Audit Committee: Copy of last year s annual financial review report Treasurer s book (ledger) Copy of the Treasurer s Annual Report Bank statements and bank deposit receipts (July 1 prior year through June 30 current year) Checkbook, cancelled and any voided checks Check Request Forms with itemized statements and receipts of bills paid Deposit Forms with applicable signatures and documentation Bylaws
Financial Review Continued Copies of Treasurer s monthly financial reports Copies of budget and general meeting minutes that include an adopted budget as well as any amendments approved during the year. Other material requested by the audit committee or the auditor. DURING THE AUDIT/REVIEW: The outgoing Treasurer cannot write checks or make withdraws after the books are closed for the financial review; however bank deposits may be made if needed. Basically during the review they are establishing the validity of the treasurer s report and tracing figures back through original deposit slips and receipts and comparing to documentation and the bank statements. Refer to Dollar$ and $en$e for procedures on conducting an Internal Financial Review and Additional Resources for a Sample Financial Review Form.
Now that the FINANCIAL REVIEW IS COMPLETE Which 990 form do you need? Once that it is determined file our correct 990 form (most will file an e-postcard, a 990n) BE AHEAD OF THE GAME. Please do not wait until Nov. 15 th. That is the deadline not the due date.
You have made it! FINANCIAL REVIEW AND 990 ARE COMPLETED REMEMBER TO SEND A COPY OF THE FINANCIAL REVIEW AND 990 RECEIPT TO AUDIT @FLORIDAPTA.ORG
IMPORTANT DATES Sept. 30 Deadline to submit Financial Review to Florida State PTA Nov. 15 Tax Filing Deadline Dec. 1 Must have submitted Dues to State in order to submit Reflections entries May 1 State & National Dues Deadline (return any unused or voided cards) July 1 Schedule Financial Review ~RETENTION DATES~ Make sure you picked up a copy in the back
??? QUESTIONS??? I bet you still have questions. I will answer some until the end of our time and more in the next class. Please make sure you put your name, school, phone number (not the school s) and e-mail on back of index card. If I don t get to your question, I will contract you to answer it.
THANK YOU YOU ARE READY! REMEMBER, THERE ARE ALWAYS PEOPLE AVAILABLE TO ASSIST YOU! YOU ARE NEVER ALONE. Terri Lyn George treasurer@pccpta.org