Every Board member has a fiduciary responsibility to protect the assets of the PTA. Assets include money, volunteers, reputation and continuity of the organization. The financial officers have the responsibility to ensure the financial transactions are reported properly and the transactions are transparent for the board members and the members of the association. Many resources are available to make the job easier.
The Finance Section and Forms Sections of the PTA Toolkit have valuable information and can be downloaded from the PTA website at www.capta.org. Other references on the website are Communicator articles and PTA Connects. The Finance Pocket Pal is available for purchase from the PTA materials and publication section of the website. Additional treasurer and auditor resources can be found on the Service Mailing CD. When in doubt, contact Silvia Flores, Treasurer at the Tenth District.
Every unit must file the appropriate IRS Form 990 and California Form 199. Every association must apply for a Charitable (CT) Number before December 31, 2012 or face penalties. Once the association has the assigned a CT number, an RRF-1 form is due to the Attorney General annually as well. Incorporated units have SI-100 reports due biannually to the Secretary of State’s office.
Every unit must file these tax returns and informational returns by the 15th day of the 5th month after the fiscal year ends. The latest tax requirements can be found at www.capta.org , Tax Filing Updates button (left side of the home page). Any letters received from the Internal Revenue Service (IRS), Franchise Tax Board (FTB) or Attorney General’s Office should be reported to district PTA immediately. All letters must be dealt with swiftly to avoid further penalties or loss of non-profit status.
FINANCIAL ACTIVITIES CHECKLIST
Visit the bank immediately upon taking office.
• Add new check signers as authorized in the bylaws and listed in association minutes.
• Verify old signers are removed.
• Verify NO ATM cards are associated with account, deposit cards allowed.
• On-line access to the account is permitted as long as bill pay is blocked.
Revise the budget that was developed in the spring.
• Review the goals and programs.
• Present and get approval of the budget by the Executive Board.
• Prominently display the approved budget and/or send to the school population along with
the invitation to join PTA
Make sure the outgoing treasurer has completed the Annual Financial Report.
Make sure the year-end audit is completed by outgoing auditor or audit committee as soon
as possible after fiscal year end, contact district/council for help if not completed by Aug 15.
Arrange for a non-check signer (auditor) to review bank statement monthly (Use the 5 Minute Audit in the finance packet on the Service Mailing CD).
Make sure outgoing treasurer files the applicable IRS Form 990. California Form 199 and RRF-1 form by the due date. Due date is by the 15th day of the 5th month after the fiscal year end. If the year-end is June 30th it is due Nov. 15th.
Get your financial books in order.
• Computer vs. manual ledgers and register: if using a computer other than PTAEZ, PTA should own the program so it can be passed from treasurer to treasurer.
• Train officers/chairmen on use of Cash Verification form and how to count cash.
• Provide Payment Authorization/Request for Reimbursement form and instructions to officers/chairmen.
Plan to attend fall training provided by council/district.
• Make contact with council/district treasurers to determine due dates.
• Sign up for PTA Connects www.capta.org/sections/communication/connects.cfm.
First association meeting:
• Present the Annual Financial Report and Year-end Audit for adoption.
• Request approval of proposed programs and fundraisers.
• Present proposed budget for adoption, request release funds from appropriate expense categories for fall programs. Release of funds does not authorize anyone to spend funds; plans must be presented to executive board before funds expended.
• Present Treasurer Report and request ratification of checks written since last association
Forward copies of year-end Audit Report, budgets, Annual Financial reports and tax returns to the council/district.
Forward membership remittances monthly.
Forward insurance premium and Workers Compensation Form by the due dates (Check with district PTA for due dates and amounts due). NOTE: the Worker’s Compensation Form must be completed even if the unit has not had any employees.
Prepare a treasurer report for every PTA meeting. Budget to Actual comparison reports should be prepared for the Executive Board at least quarterly.
Make sure financial activities are transparent.
PTA leaders throughout the state have requested assistance for financial record keeping. In response, California State PTA has launched a program called PTAEZ Accounting Online. PTAEZ strengthens financial controls and procedures, generates financial reports customized for PTA, ensures a smooth transition of records from year to year, and provides summary information for the 990 and 199 tax returns and much more. PTAEZ Accounting Online is available at a low annual subscription price exclusively to California State PTA units, councils and districts. Check out PTAEZ at www.ptaez.org