Treasurer Basics

1. Georgia PTA presents… • Treasurer Basics

2. Duties of the Treasurer • Bylaws Article VII, Section 4 • The Treasurer shall: • Have custody of the funds of this local PTA/PTSA; • Maintain a full account of the funds of this local PTA/PTSA; • Make disbursements as authorized by the president, or Board of Directors of this local PTA/PTSA in accordance with the budget adopted by this local PTA/PTSA;

3. Duties of the Treasurer • Bylaws Article VII, Section 4 • The Treasurer shall: • Have checks signed by two people: the treasurer and one other person. Individuals authorized to sign checks shall not be related to each other by marriage or any other relationship; • Never sign a blank check; • Pay all bills by check – never by cash;

4. Duties of the Treasurer • Bylaws Article VII, Section 4 • The Treasurer shall: • Never deposit funds of this PTA in a personal account or a school account; • Always issue a receipt for cash received; • Maintain a full and accurate account of the receipts and disbursements in the books belonging to this PTA/PTSA;

5. Duties of the Treasurer • Bylaws Article VII, Section 4 • The Treasurer shall: • Not sign checks for this PTA after the books are closed for audit; • Report the findings of the annual audit to this PTA/PTSA no later than the first general meeting of the new school year; • Determine the gross receipts for the previous fiscal year and file the appropriate federal tax form(s) with the IRS;

6. Duties of the Treasurer • Bylaws Article VII, Section 4 • The Treasurer shall: • Be prepared to answer all questions promptly and to have records available at all meetings; • Provide a written financial statement at each meeting of the general membership, Board of Directors and Executive Committee; • Present an annual report of the financial condition of the organization; • Have the accounts examined annually at the end of the school year or upon the change of treasurer by an auditor or committee

7. Duties of the Treasurer • Bylaws Article VII, Section 4 • The Treasurer shall: • Reconcile the bank statements monthly and have the statements reviewed, signed and dated by a PTA member. This PTA member shall not be related to the treasurer by marriage or any other relationship; and • Perform such other duties as may be provided for by these bylaws, prescribed by the parliamentary authority, or directed by the president, the Board of Directors, or the Executive Committee

8. Incoming Treasurer Responsibilities • Go to the bank to change the check signers on the account. You should have three if possible.Do not allow the bank to sign you up for a debit card! • Make sure the audit is complete. • Audit Report findings should be reported to the board and general membership at the first meeting of the year. • Audit Report is due to Georgia PTA by Sept 30, 2015. • Receive the books • Checks • Manual or computerized check register • Check on the insurance and bonding policy to make sure it is up to date. • Make sure the annual incorporation renewal fee has been paid. ($30.00)

9. In Good Standing • Requirements to be “In Good Standing” • Pays state and national dues on a monthly basis and annually and has a minimum of 25 members • Has approved bylaws on file at the state office • Submits an annual audit report to the state office by the last business day in September • Submits annually to the Internal Revenue Service (IRS) the appropriate 990 by applicable IRS due date and submit to GA PTA the IRS 990 Filing Verification Form with a copy of the first page of the 990EZ or 990-N as a receipt • Pays Council dues

10. Your PTA’s 501(c)3 Status • The IRS classifies PTAs as a tax exempt 501(c)(3) organization. • To insure this status, PTA must ensure that fundraising is not the primary focus • PTA’s are exempt from paying federal income tax on money earned and donors may deduct charitable contributions • Every PTA has an EIN number

11. The Budget • Over the summer, work on the new school year budget. • Use information from last year • Communicate with board members to see what the goals are for the year in relations to school needs • Must have a balanced budget in place to be voted on in the first general membership meeting • Your previous year’s budget gets you through your FIRST budget approval for this year. (page 108 of LRG) The Budget is an estimate of the expected income and planned expenses for the year. The budget can and should be amended throughout the year.

12. Meetings • Monthly Board meetings • Present a written detailed Treasurer’s Report • Include the cash balance • General Membership Meetings • Present a written detailed Treasurer’s Report • Present the revised budget for vote • Should be revising the budget every general membership meeting

13. Bank Reconciliations • The checking account should be reconciled at the end of each month • A copy of the bank statement that includes check images along with bank reconciliation report should be printed out every month • The treasurer, president and one non-check signer should review the bank reconciliation and bank statement and sign it every month

14. Processing Deposits & Payments • Processing Deposits • Cash Verification Form (find the blank form on www.georgiapta.org) • Two others should be counting the money • Treasurer is the 3rd counter, not 1st or 2nd • Make sure the form is filled out completely • Make the deposit within reasonable amount of time • Processing Payments • Check Request Form (find the blank form on www.georgiapta.org) • Do not write a check without a check request form and original receipts attached • Every check needs two signatures • No checks written for cash • Do not use a debit card

15. Event Prep • Have cash boxes ready with cash verification forms • Cash boxes should be counted after the event and recorded on the Cash Verification Form by two counters (treasurer is third counter) • If Using Square or GoPayment, print out reports, attach to the cash verification form and sign • No one takes the money home • Deposit the money immediately or the very next day

16. Electronic Banking • For RECEIPT of funds only • Use a cash verification form and print out the statements. • Unit may not pay by credit card, debit card, or online transfer

17. Donations • Contributions to the PTA are tax deductible in full if no service or other benefit is received in return. • Single cash contributions in excess of $250 require a receipt documenting the charitable donation to the PTA. • If the donor claims the value of a non-cash contribution of $250 or more, the PTA is required to furnish a written acknowledgement as well, following similar guidelines for cash contributions. However, the PTA is not required to, and should not, place a value on the contributed item(s) for the donor.

18. Corporate Sponsorship • Sponsorship is simply the donation of money, goods or services by a business to a PTA in return for a public acknowledgement of that donation. • For example, a company donates money to the PTA to pay for a Parent Involvement Guide. On the back of the book, the PTA prints the company's name as the • sponsor.

19. Deposits & Joint Fundraising • PTA funds should always only be deposited in the PTA account, never into a personal account or the school account. • All money deposited into a PTA account is considered PTA funds and the IRS will view it as such. • A PTA should NEVER deposit school money in its account.

20. Raffles & Bingo • • RAFFLES & BINGO Georgia law (OCGA Section 16-12-22.1) allows certain nonprofit, tax-exempt organizations to operate raffles. PTAs interested in conducting a raffle must check with the local school administration to ensure such an activity does not violate any existing policies or rules. The PTA must apply for a license with the sheriff of the county in which the PTA is located, as well as verify if there is a limit on the number of raffles that each organization can operate annually. • • Recreational Bingo (Free Bingo) – No license required. These are bingo games for which your PTA does not charge participants to play and does not award cash prizes or prizes worth more than $15 per game. Also, the non-cash prizes cannot be exchanged or redeemed for money. Recreational bingo games are not considered gambling under Georgia law, so your PTA may hold them as often as you like. Other types of bingo are considered gambling and therefore require a permit or license from the Georgia Bureau of Investigation. • • Annual Bingo Fundraiser – This is a special exception for nonprofit school organizations, and PTAs are included under this exemption. The GBI will issue a one-time permit for one bingo session during the calendar year free of charge. Keep in mind that only one permit will be issued per school or PTA; not to both during the same calendar year. Your PTA must apply for the permit by letter on school letterhead signed by the principal and PTA president. The permit must be posted in the location where you hold the bingo. • Please note: The permit will only be issued once between January 1 and December 31, which obviously overlaps two school years. Plan ahead!

21. Sales Tax & Fundraising • Use the 3:1 rule for fundraising. • For every one fundraising endeavor, there should be at least three projects aimed at helping parents or children that are non-fundraising. • If buying for resale, tax exempt • If buying to use, need to pay sales tax

22. IRS 990 • Since 2006 all Not For Profits, regardless of income, required to file a Form 990. • It is due 5 ½ months after the tax year end. • Failure to file for three years, automatic • revocation of tax exempt status. • • 990 N – Electronic Postcard • – Receipts less than $50,000 • • 990 EZ • – Receipts less than $500,000 and assets • less than $1.25 million

23. The PTA Audit • The Board of Directors selects an auditor or audit committee no later than two weeks prior to the end of the school year. • The treasurer supplies the auditor with the financial records as detailed on the PTA Audit/Financial Review Form. • Completed audit must be sent to Georgia PTA by September 30.

24. Items Needed for Audit • Copy of last audit report • Checkbook and cancelled checks • Bank statements & Deposit Slips • Treasurer’s book or ledger of transactions • Approved Budget with any amendments • Itemized statements and receipts of bills paid • Cash Verification Forms • Check Request Forms (Receipts attached) • Copies of executive, board, and association minutes • Copies of all Treasurer Reports • Current Bylaws • Annual financial report

25. Defining Theft, Fraud, and Embezzlement • Theft: The action or crime of stealing • Fraud: Wrongful or criminal deception intended to result in financial or personal gain • Embezzlement: Steal or misappropriate money placed in one’s trust or under one’s control

26. Impact of Fraud • Theft hurts PTA’s cause for children • Damaged reputation and relationships • Loss of members • Loss of grants

27. Warning Signs of Theft • Delayed reports • Cash receipts • Many corrections to the ledgers • Lifestyle changes • Missing money on Friday, replaced Monday • Signatories are related • Checks made out to “Cash” • Large checks, pre-signed checks, or bouncing checks • Not following internal controls • Avoid/delay annual audit

28. Common Reasons Theft is Not Reported • Negative publicity • Concern for safety if the offender makes threats • Legal action by the offender • To avoid embarrassing the offender and/or the offender’s children/family

29. Downside of Not Reporting Theft • Sets precedent for additional thefts • Creates an environment that encourages theft • Loss of credibility and respect for your PTA among members, the community, partners, and donors

30. What to do if you suspect theft • •DO NOT make accusations! (libel, slander) • •Determine suspect’s access to other PTA resources • •Gather facts, documents, and interviews. • •Identify all accounts involved and consider freezing or closing them • •Contact the authorities • •Contact the insurance company

31. Insurance What does a fidelity bond policy cover? Protects the cash of the PTA unit against theft, fraud and embezzlement Who should be covered under this policy? Anyone in your PTA who has access to or handles money (e.g. Treasurer, President, Fundraising chair)

32. Insurance GENERAL LIABILITY: Protects all members in case they are held legally liable for bodily injury or property damage to another person that resulted from a covered event. DIRECTORS & OFFICERS LIABILITY: Covers protection if an officer or member of PTA is sued for not living up to the responsibilities and duties assumed as a member of PTA. PROPERTY: Covers property owned by the PTA - Laptop, merchandise for fundraiser, Fall Festival Booths, etc. ACCIDENT MEDICAL: Provides medical payment for injuries sustained at a PTA event.

33. Final tips! • Make sure your PTA insurance is up to date • Contracts should be signed by the president and another officer • PTAs cannot obligate future boards to a contract or particular expenditure • Only PTA membership may decide on how funds are spent • There is no hard and fast rule about carry over • Keep all financial records for 7 years

34. Leadership Resource Guide • A must have for every Treasurer! • Print pages 75-122 of the Leadership Resource Guide. • Also go to www.ptakit.organd review the Fundraising section of that website.