THIS DOCUMENT WAS PRESENTED AT THE 2018 CALIFORNIASTATEPTA CONVENTION. INFO@CAPTA.ORG WWW.CAPTA.ORG SUCCESSFUL TREASURERS REFERENCE MATERIAL CALIFORNIA STATE PTA (2017) ALL RIGHTS RESERVED. CALIFORNIA STATE PTA, 2327 L STREET SACRAMENTO, CA 95816-5014 WELCOME AND THANK YOU FOR JOINING US! SUCCESSFUL TREASURERS www.capta.org 2018 Cailfornia State PTA Convention 1
PTA CHANNELS Unit Also referred to as the association Council A group of local units District A geographical division of the California State PTA; usually one or more counties California State PTA National PTA FIDUCIARY RESPONSIBILITIES PTAs must be fiscally responsible to the members and need to ensure that all financial procedures are followed This is the responsibility of all members of the executive board FIRST THINGS FIRST Board-elect members meet Survey the schools needs Set goals for the year Attend trainings 2018 Cailfornia State PTA Convention 2
THE TRANSITION Meet with the outgoing treasurer Get financial procedures in order Contact council/district treasurer for financial due date information THE BUDGET IN A NUTSHELL Budgets are an ESTIMATE of planned income and expenses for the year Budgets should be goals and program-driven NOT revenue-driven THE BUDGET GETTING STARTED Board-elect meets to decide on tentative goals Meet with principal Ask teachers and staff Involve the association members 2018 Cailfornia State PTA Convention 3
THE BUDGET WHAT DO YOU NEED Prior year reports Current year reports School calendar Insurance and Loss Prevention Guide THE BUDGET WHAT DOES IT LOOK LIKE Beginning funds per the audit Income (Revenue) Funds not belonging to Unit income Expenses (Disbursements) Carry-over for next year Unallocated funds Funds not belonging to Unit Expense BUDGET POINTS TO REMEMBER 3 to 1 Rule Make sure to include operating expenses Insurance premiums Council/district workshop and association meeting fees California State PTA Convention National PTA Convention 2018 Cailfornia State PTA Convention 4
THE BUDGET OTHER THINGS TO KNOW You must not encumber future boards The entire board is responsible for monitoring the budget Budget-to-Actual numbers should be reviewed regularly The budget is a working document and can be revised by a vote of the association WHAT S NEXT Present the proposed budget to the board-elect Present the proposed budget to the association at the last meeting of the year Release funds needed over the summer BANK ACCOUNTS Review bylaws for approved signers Make sure minutes of election reflect the change in check signers Visit the bank to update signature cards 2018 Cailfornia State PTA Convention 5
ORGANIZE THE RECORDS Treasurer s report, check ratification list, and minutes from each meeting Bank reconciliation, bank statement, and canceled checks for each month Deposit records Disbursement records FIRST ASSOCIATION MEETING Present year-end audit for adoption Accept prior year Annual Financial Present proposed budget for adoption Present treasurer s report OTHER THINGS TO DO Forward copies of year-end audit, approved budget, annual financial report and tax returns to council Forward membership remittances monthly Forward insurance premium and Workers Compensation form by due dates 2018 Cailfornia State PTA Convention 6
Questions? INCOME WHAT IS IT Membership dues Unit portion versus Council/District/State/National portion Fundraising proceeds Gross proceeds or net? Donations INCOME HANDLING MONEY Use Cash Verification Form to document money received Two people count money at all times Deposit money immediately Categorize income when recording deposits 2018 Cailfornia State PTA Convention 7
CASH VERIFICATION FORM WHAT IS IT? Specifies event or activity, and date Details all money collected Signed by three people altogether Included as part of backup for deposits IMPORTANT TO KNOW ABOUT DEPOSITS PTAs shall not deposit funds: From other groups or organizations into the PTA account In a personal account In school or school district accounts Questions? 2018 Cailfornia State PTA Convention 8
DEALING WITH EXPENSES All expenses must be approved by the board and/or association An Authorization for Payment must be completed Authorized funds may be paid upon receipt of an signed/approved authorization for payment EXPENSES THE TREASURER S ROLE Provide Payment Authorization forms and instructions to members Review completed forms and attached receipts prior to presentation to the board or association, or writing the check Categorize expenses when recording PAYMENT AUTHORIZATION FORMS Completed for every check issued Signed by the person submitting the request Approved by the event chairman/vice president in charge of the event President and recording secretary also sign 2018 Cailfornia State PTA Convention 9
ELECTRONIC PAYMENTS Complete a Payment Authorization Form Complete an Authorization for EFT Payment Authorization must be signed by two authorized signers PAYING MEMBERSHIP DUES & INSURANCE Membership per capita is paid through channels as received Use proper remittance form Insurance must be paid by due date Council, district, state, and National PTA dues are Funds Not Belonging to Unit UNIT REMITTANCE FORM Use when forwarding funds to council/district Details what the funds cover Serves as a receipt to show the funds were received by council/district 2018 Cailfornia State PTA Convention 10
Questions? DEPOSITS ARE DONE, CHECKS ARE WRITTEN NOW THE LEDGER Receipts and disbursements must be categorized and recorded in a ledger Ledgers come in different forms Ledgers are a permanent record and are kept forever DEALING WITH NSF CHECKS Deal with NSF checks immediately Collect the total of the NSF check and any bank fees Enter the NSF check in the ledger Enter replacement receipt in the ledger immediately upon receipt 2018 Cailfornia State PTA Convention 11
BANK STATEMENTS AND THE BANK RECONCILIATION Bank statements should be mailed to the school Reviewed and signed by an officer who is a non-signer then forward it to the treasurer Statements are reconciled every month Tip for making reporting easier Change the bank statement reporting period to a month-end cycle MONTHLY TREASURER S REPORT Starts with balance as of the last reported period Shows total receipts since last report Shows total disbursements since last report Shows balance as of end of reporting period Once approved the report is filed for audit REPORTING TO THE BOARD Present a treasurer s report at every board meeting Present all bills to be paid Keep board updated about income and expenses in relation to the budget 2018 Cailfornia State PTA Convention 12
REPORTING TO THE ASSOCIATION Present a treasurer s report at every association meeting Ratify any checks written since the last association meeting Approve new fundraisers/upcoming activities Release funds from the budget until the next association meeting Questions? TAX FILING REQUIREMENTS All PTAs must file a Federal and a State tax return Due on the 15 th day of the fifth month after the end of the fiscal year (4½ months) June 30 - due November 15 Upload copies of all returns to PTAEZ 2018 Cailfornia State PTA Convention 13
FEDERAL TAX REQUIREMENTS Form 990 tax returns are required annually Form 8868 is required for an extension Schedule B is required if the PTA received a donation of $5,000 or more from a single donor Forms 990EZ and 990 have additional schedules FEDERAL IRS FORM 990 If your PTA s gross receipts are: Form to File Normally equal to or less than $50,000 More than $50,000 and less than $200,000, and total assets are less than $500,000 Equal to or more than $200,000 or more, and total assets are equal to or more than $500,000 990N 990EZ 990 CALIFORNIA FRANCHISE TAX BOARD TAX REQUIREMENTS Form 199 tax returns are required annually No extension is required Due on the 15 th day of the fifth month after the end of the fiscal year (4½ months) June 30 - due November 15 2018 Cailfornia State PTA Convention 14
CALIFORNIA FTB FORM 199 If your PTA s gross receipts are: Form to File Normally equal to or less than $50,000 199N Normally greater than $50,000 199 ATTORNEY GENERAL FORM RRF-1 RRF-1 form filed with the Registry of Charitable Trusts annually Gross receipts should match tax return and determine the fee due Copy of Federal return must be sent with the RRF-1 SECRETARY OF STATE FILINGS All incorporated units, councils, and districts must file the SI-100 form (Statement of Information) with the Secretary of State every other year within 5 months after the month incorporated Date incorporated even year, file every other even year Date incorporated odd year, file every other odd year 2018 Cailfornia State PTA Convention 15
Questions? PTA INSURANCE General Liability Directors and Officers Bonding Insurance Workers Compensation PTA AS AN EMPLOYER It is preferable to gift funds to the school or school district rather than hire an employee Contact your Council/District PTA before you consider hiring an employee or independent contractor 2018 Cailfornia State PTA Convention 16
WORKERS COMPENSATION INSURANCE California state law requires all workers be covered PTA policy covers employees and independent contractors Base insurance premium covers gross wages of all persons hired up to $1,000 WORKERS COMPENSATION INSURANCE PTAs that pay wages over $1,000 must pay an additional premium of 5% of total gross wages less $1,000 California State PTA Workers Compensation insurance carrier requires a completed Workers Compensation Annual Payroll report whether or not wages are paid PTA AND GIFTS TO SCHOOLS Obtain approval from membership Gift should benefit the largest number of students possible \ Ensure school district accepts responsibility for liability, maintenance, and upkeep Use a Fiduciary Agreement to ensure the gift is used as directed 2018 Cailfornia State PTA Convention 17
PTAS AND STAFF APPRECIATION IRS regulations govern expenses not directly related to the primary purpose of PTA 5% rule applies to all expenses not directly related to the primary purpose of PTA, which include areas of hospitality, not just staff appreciation PTA monies may not be used for personal gifts PREPARING FOR THE AUDIT Complete and pay all pending authorizations Clear all outstanding checks Use the Audit Checklist to organize records for the auditor AUDITOR DUTIES Review all financial transactions Ensure receipts and disbursements are accounted for properly Review conformity to PTA financial policies and procedures Audit each account separately Note corrections to entries and procedures in Recommendations Report attached to audit 2018 Cailfornia State PTA Convention 18
MISMANAGEMENT OF FUNDS PTA funds are protected when correct financial procedures are followed Mismanagement does not automatically imply theft or loss Raises questions about integrity of individual(s) in charge of PTA funds RESOURCES Your council/district PTA Treasurer California State PTA Treasurer: treasurer@capta.org California State PTA website: www.capta.org PTA Toolkit Insurance & Loss Prevention Guide National PTA website: www.pta.org 2018 Cailfornia State PTA Convention 19