WWWW YYYY J FFFF OOOOFFICERFFICEROF OOFFOFTHE...

2327 L Street, Sacramento, CA 95816 976-440-1985 [email protected] · www.capta.org

2019 California State PTA Convention

A/B02 C/D07 What is Your Job as a Financial Officer? 1

WWWWHATHATHATHAT ISISISIS YYYYOUROUROUROUR JJJJOBOBOBOB ASASASAS AAAA

FFFFINANCIALINANCIALINANCIALINANCIAL OOOOFFICERFFICERFFICERFFICER OFOFOFOF THETHETHETHE PTA?PTA?PTA?PTA?

www.capta.orgwww.capta.orgwww.capta.orgwww.capta.org

2019 California State PTA Convention A/B02 C/D07 What is Your Job as a Financial Officer of the PTA?

PTA CPTA CPTA CPTA CHANNELSHANNELSHANNELSHANNELS

�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


FFFFIDUCIARYIDUCIARYIDUCIARYIDUCIARY RRRRESPONSIBILITIESESPONSIBILITIESESPONSIBILITIESESPONSIBILITIES

�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


TTTTHEHEHEHE TTTTRANSITIONRANSITIONRANSITIONRANSITION

�Meet with your outgoing counterpart

�Get financial procedures in order

�Contact council/district treasurer for financial

due date information


TTTTHEHEHEHE BBBBUDGETUDGETUDGETUDGET ININININ AAAA NNNNUTSHELLUTSHELLUTSHELLUTSHELL

�Budgets are an ESTIMATEESTIMATEESTIMATEESTIMATE of planned income

and expenses for the year

�Budgets should be goals and program-driven

NOTNOTNOTNOT revenue-driven





TTTTHEHEHEHE BBBBUDGETUDGETUDGETUDGET –––– GGGGETTINGETTINGETTINGETTING SSSSTARTEDTARTEDTARTEDTARTED

�Board-elect meets to decide on tentative goals

�Meet with principal

�Ask teachers and staff

� Involve the association members


TTTTHEHEHEHE BBBBUDGETUDGETUDGETUDGET –––– WWWWHATHATHATHAT DDDDOOOO YYYYOUOUOUOU NNNNEEDEEDEEDEED

�Prior year reports

�Current year reports

� School calendar

� Insurance Guide


TTTTHEHEHEHE BBBBUDGETUDGETUDGETUDGET –––– WWWWHATHATHATHAT DDDDOESOESOESOES ITITITIT LLLLOOKOOKOOKOOK LLLLIKEIKEIKEIKE

�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






BBBBUDGETUDGETUDGETUDGET PPPPOINTSOINTSOINTSOINTS TOTOTOTO RRRREMEMBEREMEMBEREMEMBEREMEMBER

�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


TTTTHEHEHEHE BBBBUDGETUDGETUDGETUDGET –––– OOOOTHERTHERTHERTHER TTTTHINGSHINGSHINGSHINGS TOTOTOTO KKKKNOWNOWNOWNOW

�You must notmust notmust notmust 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





WWWWHATHATHATHAT’’’’SSSS NNNNEXTEXTEXTEXT

�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


BBBBANKANKANKANK AAAACCOUNTSCCOUNTSCCOUNTSCCOUNTS

�Review bylaws for approved signers

�Make sure minutes of election reflect the

change in check signers

�Visit the bank to update signature cards


BBBBANKANKANKANK AAAACCOUNTSCCOUNTSCCOUNTSCCOUNTS –––– NNNNEWEWEWEW TTTTREASURYREASURYREASURYREASURY DDDDEPTEPTEPTEPT. R. R. R. RULESULESULESULES

�Banks are now required to collect, validate, and screen

personal data for allallallall individuals:

� With “significant responsibility” for managing the bank

account (i.e. ALL signers)

� Who are opening the bank account (for new accounts)

�This means that allallallall signers are now required to provide

personal information, generally including a social security

number and valid driver’s license or other government-issued

ID that shows legal name, address and date of birth.





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


FFFFIRSTIRSTIRSTIRST AAAASSOCIATIONSSOCIATIONSSOCIATIONSSOCIATION MMMMEETINGEETINGEETINGEETING

�Present year-end audit for adoption

�Accept prior year Annual Financial

Report

�Present proposed budget for adoption

�Present treasurer’s report


OOOOTHERTHERTHERTHER TTTTHINGSHINGSHINGSHINGS TOTOTOTO DDDDOOOO

� Forward copies of year-end audit, approved

budget, annual financial report and tax returns

to council (or district if Out-Of-Council)

� Forward membership remittances monthly

� Forward insurance premium and Workers

Compensation form by due dates





Questions?Questions?Questions?Questions?


IIIINCOMENCOMENCOMENCOME –––– WWWWHATHATHATHAT IIIISSSS IIIITTTT

�Membership dues

� Unit portion versus

Council/District/State/National portion

� Fundraising proceeds

� Gross proceeds not the net funds

�Donations


IIIINCOMENCOMENCOMENCOME –––– HHHHANDLINGANDLINGANDLINGANDLING MMMMONEYONEYONEYONEY

�Use Cash Verification Form to document money

received

�Two people count money at all times

�Deposit money immediately

�Categorize income when recording deposits





CCCCASHASHASHASH VVVVERIFICATIONERIFICATIONERIFICATIONERIFICATION FFFFORMORMORMORM –––– WWWWHATHATHATHAT ISISISIS ITITITIT????

� Specifies event or activity, and date

� Details all money collected

� Signed by two to three people

� Included as part of backup for deposits


2019 C

alifo

rn

ia S

tate P

TA

Con

ven

tio

n

A/B

02 C

/D07 W

hat is

You

r J

ob a

s a

Fin

an

cia

l Offic

er o

f th

e P

TA

?

IIIIMPORTANTMPORTANTMPORTANTMPORTANT TTTTOOOO KKKKNOWNOWNOWNOW AAAABOUTBOUTBOUTBOUT DDDDEPOSITSEPOSITSEPOSITSEPOSITS

�PTAs shall notnotnotnot deposit funds:

� From other groups or organizations into the

PTA account

� In a personal account

� In school or school district accounts







DDDDEALINGEALINGEALINGEALING WWWWITHITHITHITH EEEEXPENSESXPENSESXPENSESXPENSES

�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 a

signed/approved authorization for payment


EEEEXPENSESXPENSESXPENSESXPENSES –––– TTTTHEHEHEHE TTTTREASURERREASURERREASURERREASURER’’’’SSSS RRRROLEOLEOLEOLE

�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





PPPPAYMENTAYMENTAYMENTAYMENT AAAAUTHORIZATIONUTHORIZATIONUTHORIZATIONUTHORIZATION FFFFORMSORMSORMSORMS

� 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


EEEELECTRONICLECTRONICLECTRONICLECTRONIC PPPPAYMENTSAYMENTSAYMENTSAYMENTS

� Complete a Payment Authorization Form

� Complete an Authorization for EFT Payment

� Authorization must be signed by two

authorized signers


PPPPAYINGAYINGAYINGAYING MMMMEMBERSHIPEMBERSHIPEMBERSHIPEMBERSHIP DDDDUESUESUESUES & I& I& I& INSURANCENSURANCENSURANCENSURANCE

� Membership per capita is paid through

channels as received, except for members who

join through Totem

� Use proper remittance form

� Insurance must be paid by due date

� Council, district, state, and National PTA dues

are Funds Not Belonging to Unit





UUUUNITNITNITNIT RRRREMITTANCEEMITTANCEEMITTANCEEMITTANCE FFFFORMORMORMORM

� 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


TTTTOTEMOTEMOTEMOTEM EEEE----MMMMEMBERSHIPEMBERSHIPEMBERSHIPEMBERSHIP SSSSYSTEMYSTEMYSTEMYSTEM

�Do not forward per capita for Totem members.

� Insurance cannot be paid through Totem and must be

sent in through channels

�Your budget should include a separate income category

for membership dues received from Totem.







DDDDEPOSITSEPOSITSEPOSITSEPOSITS AREAREAREARE DONEDONEDONEDONE, C, C, C, CHECKSHECKSHECKSHECKS AREAREAREARE WRITTENWRITTENWRITTENWRITTEN ––––

NNNNOWOWOWOW THETHETHETHE LLLLEDGEREDGEREDGEREDGER

� 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


DDDDEALINGEALINGEALINGEALING WWWWITHITHITHITH NSF CNSF CNSF CNSF CHECKSHECKSHECKSHECKS

� 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


BBBBANKANKANKANK SSSSTATEMENTSTATEMENTSTATEMENTSTATEMENTS ANDANDANDAND THETHETHETHE BBBBANKANKANKANK RRRRECONCILIATIONECONCILIATIONECONCILIATIONECONCILIATION

� 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 and the

reconciliations are reviewed and signed by a non-

signer

Tip for making reporting easier –

Change the bank statement reporting period to a month-end cycle





MMMMONTHLYONTHLYONTHLYONTHLY TTTTREASURERREASURERREASURERREASURER’’’’SSSS RRRREPORTEPORTEPORTEPORT

� 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 presented the report is filed for audit


RRRREPORTINGEPORTINGEPORTINGEPORTING TOTOTOTO THETHETHETHE BBBBOARDOARDOARDOARD

�Present a treasurer’s report for each bank

account at every board meeting

�Present all bills to be paid

�Keep board updated about income and expenses

in relation to the budget


RRRREPORTINGEPORTINGEPORTINGEPORTING TOTOTOTO THETHETHETHE AAAASSOCIATIONSSOCIATIONSSOCIATIONSSOCIATION

�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







TTTTAXAXAXAX FFFFILINGILINGILINGILING RRRREQUIREMENTSEQUIREMENTSEQUIREMENTSEQUIREMENTS

� All PTAs must file a Federal and a State tax return

� Due on the 15th 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


FFFFEDERALEDERALEDERALEDERAL TTTTAXAXAXAX RRRREQUIREMENTSEQUIREMENTSEQUIREMENTSEQUIREMENTS

� 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





FFFFEDERALEDERALEDERALEDERAL IRS FIRS FIRS FIRS FORMORMORMORM 990990990990

If your PTA’s gross receipts are: Form to File

Normally equal to or less than $50,000 990N

More than $50,000 and less than $200,000, and

total assets are less than $500,000

990EZ

Equal to or more than $200,000 or more, and total

assets are equal to or more than $500,000

990


CCCCALIFORNIAALIFORNIAALIFORNIAALIFORNIA FFFFRANCHISERANCHISERANCHISERANCHISE TTTTAXAXAXAX BBBBOARDOARDOARDOARD

RRRREQUIREMENTSEQUIREMENTSEQUIREMENTSEQUIREMENTS

� Form 199 tax returns are required annually

�No extension is required

�Due on the 15th day of the fifth month after the end of the fiscal year (4½ months)

� June 30 - due November 15

�No filing fees required for 199 forms


CCCCALIFORNIAALIFORNIAALIFORNIAALIFORNIA FTB FFTB FFTB FFTB FORMORMORMORM 199199199199

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





AAAATTORNEYTTORNEYTTORNEYTTORNEY GGGGENERALENERALENERALENERAL FFFFORMORMORMORM RRFRRFRRFRRF----1111

�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


SSSSECRETARYECRETARYECRETARYECRETARY OFOFOFOF SSSSTATETATETATETATE FFFFILINGSILINGSILINGSILINGS

�All incorporatedincorporatedincorporatedincorporated 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







PTA IPTA IPTA IPTA INSURANCENSURANCENSURANCENSURANCE

�General Liability

�Directors and Officers

�Bonding Insurance

�Workers’ Compensation


PTA PTA PTA PTA ASASASAS ANANANAN EEEEMPLOYERMPLOYERMPLOYERMPLOYER

� 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


WWWWORKERSORKERSORKERSORKERS’ C’ C’ C’ COMPENSATIONOMPENSATIONOMPENSATIONOMPENSATION IIIINSURANCENSURANCENSURANCENSURANCE

�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





WWWWORKERSORKERSORKERSORKERS’ C’ C’ C’ COMPENSATIONOMPENSATIONOMPENSATIONOMPENSATION IIIINSURANCENSURANCENSURANCENSURANCE

� 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 whether or whether or whether or

not wages are paidnot wages are paidnot wages are paidnot wages are paid


PTA PTA PTA PTA ANDANDANDAND GGGGIFTSIFTSIFTSIFTS TOTOTOTO SSSSCHOOLSCHOOLSCHOOLSCHOOLS

�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


PTAPTAPTAPTASSSS ANDANDANDAND SSSSTAFFTAFFTAFFTAFF AAAAPPRECIATIONPPRECIATIONPPRECIATIONPPRECIATION

� 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 all

areas of hospitality, not just staff appreciation

� PTA monies may notmay notmay notmay not be used for personal gifts





PPPPREPARINGREPARINGREPARINGREPARING FORFORFORFOR THETHETHETHE AAAAUDITUDITUDITUDIT

� Complete and pay all pending authorizations

� Clear all outstanding checks

� Use the Audit Checklist to organize records for the

auditor


AAAAUDITORUDITORUDITORUDITOR DDDDUTIESUTIESUTIESUTIES

�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


IIIINSURANCENSURANCENSURANCENSURANCE RRRREQUIREMENTSEQUIREMENTSEQUIREMENTSEQUIREMENTS FORFORFORFOR AAAAUDITSUDITSUDITSUDITS

�An audit/review of the books must be done at

least annually. (CAPTA requires two audits per

year.)

�Audits/reviews must be performed by a

qualified accountant OR an audit/review

committee.

�Monthly bank reconciliations must be reviewed

and signed by a non-signer.





MMMMISMANAGEMENTISMANAGEMENTISMANAGEMENTISMANAGEMENT OFOFOFOF FFFFUNDSUNDSUNDSUNDS

�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: [email protected]

�California State PTA website: www.capta.orgwww.capta.orgwww.capta.orgwww.capta.org

�PTA Toolkit

� Insurance Guide

�National PTA website: www.pta.orgwww.pta.orgwww.pta.orgwww.pta.org


WWWW YYYY J FFFF OOOOFFICERFFICEROF OOFFOFTHE...

Documents

Transcript of WWWW YYYY J FFFF OOOOFFICERFFICEROF OOFFOFTHE...