Financial officers are elected to manage the fiscal operations of the unit, council and district PTA. These officers include treasurer (required), financial secretary (optional) and auditor (optional). All unit, council and district PTAs are required to have an auditor who may be elected, appointed, or hired in accordance with bylaws.

Upon assuming office, the incoming treasurer obtains the following from the outgoing treasurer: supplies, ledger, checkbook, tax records, and all other treasurer materials. Each financial officer needs to obtain the procedure book from the previous office holder. Additional materials may be obtained from the bank or purchased from the California State PTA office. The new treasurer must also contact the bank to file new signature cards for checking and savings accounts. Banks may require minutes of the election meeting recording names of new officers.

These items are necessary for the financial operation of the association. When a new unit is established, the treasurer should request assistance from council or district PTA in obtaining them.

The outgoing treasurer cannot pay bills after the books are closed for audit or after the term has ended. Books being audited may not be available immediately. The California State PTA recommends that if the audit is not completed within two (2) weeks after the end of the term of office, the president may appoint a committee to immediately audit the books. The same time frame must be followed for the semi-annual audit. Upon assuming office, the incoming treasurer may pay authorized bills and deposit funds in the PTA bank account before the audit is completed.

Treasurer Duties

Keep permanent records that track gross income, receipts and disbursements of the association, including the number of members, dues collected and the total per capita dues remitted through channels to the California State PTA. These records should be available for inspection by an authorized representative of either the California State PTA or National PTA.

Chair the budget committee and prepare the budget for adoption by the association.

Receive all monies from the financial secretary or from other volunteers counting monies received. Give a receipt. Deposit immediately in the name of the association in a bank approved by the executive board.

Receive and retain a copy of the deposit slip for any deposit made.

Pay all bills as authorized by the executive board or the association and on receipt of payment authorization signed by the president and the recording secretary.

Secure two authorized signatures on all checks. Any two elected officers (with the exception of the secretary and officers related by blood, marriage, or living in the same household) may be authorized to sign checks. Refer to bylaws to determine who is authorized within the unit, council or district PTA.

Keep an accurate record of receipts and disbursements in a ledger, which is a permanent record of the PTA (Records Retention Schedule, 5.1.5, 201).

Report expenditures to the membership as they relate to the budget adopted by the association.

Each month, remit portions of per capita dues through channels (Unit Remittance Form 5.1.7f, 219; Per Capita Dues 3.2.2, 71; Forms 455).

Prepare and present a Treasurer's Report (Treasurer's Report 5.1.7f, 218; Forms 417) at every association and executive board meeting. The Treasurer's Report also should be presented at other times, if requested by the association.

Be responsible for completing and forwarding all necessary report forms required by the California State PTA for insurance and for filing all tax returns and other forms required by government agencies (Tax Requirements 5.7, 239).

Make an Annual Financial Report (Annual Financial Report 5.1.7e, 219; Forms 379) to the association that includes gross receipts and disbursements for the year.

Maintain continuous and direct communication with the president regarding finances. Advise board members of the status of the treasury and their individual budgets.

Obtain information on proposed programs from program committee chairman.

Become aware of deadlines (including postmark dates) for all financial transactions.

All treasurers are encouraged to attend the California State PTA convention finance conferences.

Attend council and district PTA workshops and trainings, when scheduled.

If the PTA has a bulk mail permit, verify funds are maintained in the account.

Financial Secretary Duties

Give a receipt for all monies received for the association and either turn funds over to the treasurer or deposit in the PTA bank account. Give a copy of the deposit slip to the treasurer for the association's records.

Keep an accurate record of all receipts and payment authorizations for the treasurer's financial records.

Prepare all payment authorizations as approved by the executive board or the association. Forward authorizations to the president and recording secretary for signatures. Financial secretary also may be a signer.

Prepare and present a Financial Secretary's Report (Forms 405) at association and executive board meetings and at other times when requested by the association. The report must include an accurate record of all receipts, deposits and authorizations for payment.

Report all funds deposited to the treasurer. These totals should be included in the Annual Financial Report to the association.

Perform such other duties as may be delegated to the financial secretary by the president or treasurer.

All financial secretaries are encouraged to attend the California State PTA convention finance conferences.

Attend PTA district or council workshops and trainings when scheduled.

Sample Calendar of Activities

(Year-round PTAs adapt accordingly)

JULY/AUGUST

Treasurer chairs budget committee.

Present budget to the executive board for approval.

SEPTEMBER

Present budget to the executive board for approval.

Present budget to association for adoption at its first meeting.

Send the first remittance of per capita dues through channels. Send monthly there after.

OCTOBER

Prepare tax forms as required (Tax Requirements 5.7, 239).

NOVEMBER/DECEMBER

Send checks for insurance premiums through channels. Do not send checks directly to the California State PTA office or the insurance broker.

Pay convention-housing deposit, if required by PTA district.

JANUARY

Submit books and financial records for mid-year audit as specified in the bylaws.

Send the Workers' Compensation Annual Payroll Report through channels.

Pay annual U.S. Postal Service Bulk Mailing permit fee, if required.

Forward insurance premium through channels. Premium must be postmarked by the PTA district by January 31 or a late fee of $25 will be assessed.

FEBRUARY

Send Founders Day freewill offering through channels to district when collected. (The event may be held during a month other than February.)

MARCH

Ensure all per capita dues have been forwarded through channels, in accordance with estab-lished deadlines.

APRIL

Issue convention checks for authorized expenditures for elected delegates.

MAY/JUNE

Attend workshops for financial officers when offered.

Submit books and financial records for end-of-term audit as stipulated in the bylaws.

Give financial records and materials to the incoming financial officer (except those in audit).

Obtain new bank account signature cards to assist the incoming officers.

Prepare Annual Financial Report and tax reports (end of fiscal year).

Other pertinent dates should be added (or adjusted) to the calendar to meet timeframes specific to each PTA and fiscal year.

Contents of the Treasurer's File

A complete treasurer's file should contain the following:

• All auditors reports
• Budget
• Bylaws and standing rules
• Correspondence
• District-specific information
• Employee records, current
• Federal Employer Identification Number (EIN)
• Corporate number and California State Franchise Tax Board number, if applicable
• Annual financial reports
• Monthly financial reports
• Remittance forms to council and/or district
• Workers' Compensation Annual Payroll Report
• National PTA Annual Resources for PTAs,Money Matters
• California State PTA Toolkit (Section 5, Finance,215-254)
• Recommendations for successor
• Fax-on-demand list, 877.406.3680, xiii-xx

Records Retention Schedule

It is very important that certain records be retained. Listed here are items that must be reviewed on a periodic basis and kept in a safe place. Develop a records retention policy based on this list.

PERMANENT STORAGE

Annual audit reports

Articles of Incorporation

Canceled checks for important transactions (e.g., taxes, contracts).

Checks should be filed with papers pertaining to each transaction

Corporation reports filed with the Secretary of State

Legal correspondence

Group exemption documents

Insurance records:

• Accident reports
• Claims
• Employee Acknowledgement Forms
• Policies

Ledgers

Minutes of executive board, association and committees (bound)

PTA Charter

Tax documents:

• Exempt status
• Group exemption
• Letter assigning IRS Employer Identification Number (EIN)(Employer Identification Number 5.6.9, 238)
• State and federal tax forms, as filed

Correspondence with state or federal agencies

Trade mark registrations

10 YEARS

Financial statements (year-end) and budgets

Grant award letters of agreement

7 YEARS

Payment authorization and expense forms (receipts attached) for payments to vendors or reimbursement to officers

Cash receipt records

Checks (other than those listed for permanent retention)

Expired contracts and leases

Insurance incident reports

Invoices

Purchase orders

Sales records

3 YEARS

General correspondence

Employee records (post-termination)

Employment applications

Petty cash vouchers

1 YEAR

Bank reconciliations

Correspondence with customers or vendors if non-contested

Duplicate deposit slips

Current Bylaws, approved by state parliamentarian

Standing Rules

Certificates of Insurance

Inventories of products and materials, updated yearly

Financial Officers' Reports

TREASURER 'S REPORT (Forms 417)

A monthly report must include

• balances at the beginning and end of the period covered;
• amounts credited to the general fund and any special funds;
• receipts and disbursements with a detailed written report;
• The report must be posted and/or distributed. Copies of the report must be provided to the president and secretary and added to the treasurer's file, which must be placed on file for audit.

Financial Secretary's Report (Forms 405)

A monthly report must reflect the duties of a financial secretary, as assigned in the bylaws, and should include

• Itemized listing of receipts
• Itemized listing of deposits
• Itemized listing of Authorizations for Payment

Auditor's Report

A written Auditor's Report must be presented semiannually to the association after the books and financial records of the association have been audited. If all is in order, the auditor or audit committee should prepare a report, and the auditor and each member of the committee should sign it.

A report must also be submitted by the audit committee in the event that there are not adequate records available to conduct a proper accounting of the association funds. The audit report must be officially adopted by the association (Audit Report 5.4.5, 229).

WORKERS' COMPENSATION ANNUAL PAYROLL REPORT

All unit, council and district PTAs must file a Workers' Compensation Annual Payroll Report annually. Reports must be forwarded through channels and received by the California State PTA no later than January 31.

If no one was employed during the report period, complete the information as requested and write "no payment made" in the area where one would list the employee's name.

If workers were paid (even for one hour), report the name of the worker, specific type of work performed, date worked, amount paid and whether the worker carried personal Workers' Compensation insurance. If the PTA does not pay the worker directly but donates the money to the school, do not list the worker.

Individuals paid directly are considered to be hired by the PTA and listed on this form (PTA as an Employer 5.6, 235). You must be specific about what type of work is performed (see Sample Workers' Compensation Annual Payroll Report, Forms 399).

• Baby-sitters must be listed on this form as employees of the PTA (PTA-Provided Baby-sitting Services 5.8.5, 245).
• Off-duty policemen hired by PTA, with payment made by the PTA directly to the officer, are considered employees.
• Individuals paid by a school district or other employer are NOT considered to be hired by the PTA and are not listed on this form.
• Cafeteria and custodial employees who are employed by the school district and whose services are normally arranged by the school administrator are not considered PTA employees. If PTAs pay for the services of such district employees, the PTA pays the school district for such services.
• Payments to police departments or security agencies for security personnel are not included, if the persons were salaried by the department or agency during the period of service to the PTA.

ANNUAL FINANCIAL REPORT (Forms 379)

The Annual Financial Report reports gross receipts and disbursements for the fiscal year. The report is distributed to the executive board, to the membership, and may be required by federal and state tax agencies. The council and district PTA also may require reports.

UNIT REMITTANCE FORM (FORMS 419)

The Unit Remittance Form accompanies the per capita dues, insurance premiums and freewill offerings submitted through channels to the California State PTA office.

Financial Officers Leaving Office

Financial records should be put in order for the auditing process shortly before the end of the term of office. The audit should be completed as quickly as possible. The outgoing treasurer cannot pay bills after the books are closed for audit or after the term of office ends. Upon assuming office, the incoming treasurer may deposit funds in the PTA bank account and pay authorized requests for reimbursement bills as needed.

Sample Treasurer's Report [pdf]

Sample Annual Report [pdf]

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