Dollar and ense

2. Dollar$ and $ense! Betsy Landers National PTA Secretary/Treasurer

3. Let�s Talk About Money Management Reports and Regulations Insurance Needs Fund Raising Resources Best Practices

4. First Steps! Make sure books are audited Check the files! Study duties and any reference to finances/budget in PTA bylaws Secure signatures of authorized officers File signature cards with bank Check on bond and liability procedures Study PTA Money Matters Quick-Reference Guide!

5. Money Management

6. Money Management Develop a realistic budget Keep good records Copies of All Treasurer�s Reports Bank Statements and Reconciliations Attach Check Request to All Checks Store Records Properly Place in Easy To Find Permanent Location Review Records Retention Schedule

7. Banking Two (2) Signatures on All Accounts Use Large Size Checks Check Copies No Fees Location and Hours Online Banking Availability Monthly Statements Deposit Totals and Withdrawal Totals All Accounts should have a two signatures (Explain) Use only large (business) size checks. Never use Counter Checks! Set up the account/accounts with a institution that offers no monthly fees for non-profits. Choose a bank that has locations of branches and hours that are convenient for everyone Online Banking Availability Statements should show both Deposit Totals, as well as Withdrawal Totals.All Accounts should have a two signatures (Explain) Use only large (business) size checks. Never use Counter Checks! Set up the account/accounts with a institution that offers no monthly fees for non-profits. Choose a bank that has locations of branches and hours that are convenient for everyone Online Banking Availability Statements should show both Deposit Totals, as well as Withdrawal Totals.

8. Reporting Make reports at All Board and Membership meetings Develop the report to best reflect a transparent process Best Practice Budget Amount Monthly Report Year-to-Date Total Balance of Line Item

9. East Anywhere High School

10. Reports and Regulations

11. Reports and Regulations Follow all State and Federal guidelines Make sure all transactions are transparent Follow your budget, amend if needed Perform an audit or financial review at year�s end, or when needed Study relevant areas of www.irs.gov

12. Applying for Tax-Exempt Status www.irs.gov

13. Resources From National PTA National PTA provides all states and local units access to resources that are easy to understand.

14. Tax Code Compliance A top priority of any state, council, district or local unit is to stay in compliance with tax code.

15. Federal Requirements Federal Tax Exempt Status � 501(c)(3) -- Organizational Test -- Operational Test Employer Identification Number (EIN) Determination Letter of Tax Exempt Status Private Inurement Public Inspection Requirements Unrelated Business Income

16. A Correct and Timely Form 990 Who should file? Which form should be filed? When to file? What are gross receipts? Why is this important? What happens if we don�t file?

17. Audits and Financial Reviews

18. Purpose of the PTA Audit To certify accuracy of books and records To assure membership resources are being managed properly

19. Compiled Financial Statements Limited or no verification of information Reviewed Financial Statements Perform some inquiry and analytical procedures � Limited assurance of information Audited Financial Statements Highest level of assurance of information Extensive substantiation and verification Compile financial statements � Limited or No verification of information Reviewed Financial Statements � Perform some inquiry and analytical procedures. Limited assurance of information Audited Financial Statements Compile financial statements � Limited or No verification of information Reviewed Financial Statements � Perform some inquiry and analytical procedures. Limited assurance of information Audited Financial Statements

20. Preparation for Internal Review Financial records should be �put in� order Bills cannot be paid after books are closed for audit Materials needed include: Copy of last audit Checkbook and canceled checks Bank statements and deposit receipts Itemized statements and receipts of bills paid Check requests

21. The Need for Insurance

22. Why does PTA need Insurance Coverage? School districts generally do not cover PTA Units. Protects the assets of the PTA. Protects the assets of PTA members. If someone can sue�they probably will School districts generally do not cover PTA Units and their members. Insurance will protect the assets of your PTA units � as well as the assets of its officers and members. If someone can sue�. They probably will. Coverage will cover attorney fees!School districts generally do not cover PTA Units and their members. Insurance will protect the assets of your PTA units � as well as the assets of its officers and members. If someone can sue�. They probably will. Coverage will cover attorney fees!

23. Types of Coverage General Liability Fidelity Bond Directors and Officers Liability Property Accidental Medical

24. General Liability Coverage

25. General Liability Coverage Who should be protected? Normally the PTA unit It is recommended that an �endorsement� be included for volunteers, PTA members What protection does general liability provide? Actions against the PTA from injury or property damage Is there a dollar limit? PTA�s are encouraged to investigate a policy containing a $1 million limit; this is an industry standard

26. Coverage Types of Events Covered Meetings and Dinners Book Fairs Food Sales Carnivals Dunking Tanks Bounce Houses After Prom and Graduation Parties

27. Events Not Covered Typically the following events are not covered. Firework Sales Mechanical Rides Boats Watercraft Activities Organized Sports Little League High School Etc.

28. Fidelity Bond Coverage

29. Fidelity Bond Coverage Protects the cash of the PTA unit against: Theft Robbery Embezzlement Who�s Covered? All individuals in the PTA who has access to or handles funds regularly Treasurer President Fund Raising Chairman

30. Considerations How can your PTA protect itself? Two signatures on checking account Have the checking account reviewed by someone who is not on the account Conduct an annual audit/financial review How much coverage do we need? Each PTA has to determine their own amount of coverage

31. Officers and Directors Coverage

32. Officers and Directors Coverage How are PTA Officers protected? What situations are covered? How are officers not protected? How are PTA Officers protected? Officer liability coverage are covered from lawsuits from wrongful acts or actions What situation are covered? Mismanagement. Misrepresentation. Distribution of false information. Activities detrimental to your community. How are officers not protected? Standard wording on most policies does not cover: Dishonest Actions � Reckless Behavior � Willful Behavior � Criminal ActsHow are PTA Officers protected? Officer liability coverage are covered from lawsuits from wrongful acts or actions What situation are covered? Mismanagement. Misrepresentation. Distribution of false information. Activities detrimental to your community. How are officers not protected? Standard wording on most policies does not cover: Dishonest Actions � Reckless Behavior � Willful Behavior � Criminal Acts

33. A �Word� About  Fund Raising!

34. How many Fund Raisers should our PTA hold? Be knowledgeable of IRS Regulations Research State regulations governing non-profit fund raising Base fund raisers on your annual budget and plan your activities Remember the �3 to 1 Principal� Base your fund raisers on your annual budget and plan your activities accordingly. Remember � the PTA 3 to 1 principal. Three (3) programs for every one (1) fund raiser!Base your fund raisers on your annual budget and plan your activities accordingly. Remember � the PTA 3 to 1 principal. Three (3) programs for every one (1) fund raiser!

35. Who needs to approve contracts? Approval of contracts has an effect on your overall PTA Budget and Operations The Board should have input The president should sign Do not allow a vendor to push your PTA into a contract

36. Tips for a Successful Event Make sure your percentages are the highest possible Does the event have a good track record with your PTA? Make sure your members know where the funds are going to be used Deposit the funds the day they are received Make sure your percentages are the highest possible. Does the event have a good track record with you PTA? Make sure your members know where the funds are going to be used. Example: Teacher supplies; equipment; etc.Make sure your percentages are the highest possible. Does the event have a good track record with you PTA? Make sure your members know where the funds are going to be used. Example: Teacher supplies; equipment; etc.

37. Because Fund Raising is so important to Local Units � National PTA developed� Fund Raising Essentials

38. Useful Resources www.pta.org National PTA e-Newsletters PTA Money Matters PTA Convention Handouts PTA Quick Reference Guides Electronic Resources

39. The 2008-2009 Money Matters will arrive in the New Back To School Kit

40. Another great resource developed by National PTA is the� PTA President�s Quick Reference Guide

41. Best Practices We hope that this has been a useful session, now it�s time to share your ideas and best Practices!

42. Contact Information Betsy Landers National PTA Secretary-Treasurer (901) 361-0933 blanders@pta.org