The Processes

TRANSITION PERIOD

The treasurer’s term of office begins on July 1, but he or she should start “transitioning” right after being elected to serve. Both the outgoing and incoming officers are responsible for an effective and efficient transition between fiscal years.

According to Article VIII, Section 3 of Local PTA/PTSA Bylaws, during the transition period between their election and June 30th, the incoming officers shall meet as needed to coordinate with the outgoing officers, prepare for their term of office, formulate their tentative plans and proposed budget, schedule their calendar, coordinate with the principal, and, if applicable, select commissioner and committee chairs, and shall attend the Utah PTA convention in May. The incoming officers shall assume no financial responsibilities nor obligations until July 1st.

The Outgoing Treasurer is Responsible For…

Preparing a Year-end Financial Report and seeing that an Annual Financial Reconciliation (AFR) of that statement and the related records is completed.

• The books should be closed no later than June 30th. No transactions should occur between the time the books are closed for AFR, which will be no later than June 30th, and the time the incoming treasurer begins making transactions, which will be no earlier than July 1st.

• Both the financial statement and the AFR report are to be submitted to the new Executive Committee and to the council/region no later than August 1st. Each council/region will set its own procedures for submission of these reports, possibly involving transition training before or during the transition period and/or small group meetings with outgoing and incoming presidents and treasurers.

• The financial statement and AFR should be presented for adoption at the first general membership meeting of the new school year.

Preparing and submitting a Sales Tax Refund Request for the fiscal year July 1st to June 30th by August 1st.  The Sales Tax Refund Request is submitted on the Utah PTA website either by the local unit or the council/region treasurer.

Preparing the applicable IRS filing—either Form 990EZ and related schedules, if required, or Form 990N.

• All PTAs in Utah are required to make an annual filing with the IRS.

• PTAs that have gross receipts (all funds received from all sources, except dues forwarded to Utah PTA and National PTA, including gross income from fundraisers) that are more than $50,000 (for a three year rolling average) are required to file "Form 990EZ" (including the applicable schedules).

• All other PTA units (local, council, and region) will file Form 990N, also known as the e-Postcard.

• A PTA may complete its IRS filing any time following the completion of the AFR after July 1st.

• Form 990EZ and related schedules are filed electronically at IRS.gov. A copy of the efile confirmation needs to be submitted to Givebacks or council/region treasurer by August 1 

• Form 990N (the e-Postcard) is filed electronically at IRS.gov/990N. Only basic information is required on the form. You must sign in again after seven minutes to receive the "Accepted" status before printing the acceptance form. A copy of the accepted "990N" from the IRS needs to be submitted to Givebacks or council/region treasurer, by August 1st.

An Incoming Treasurer’s Checklist: Have I …

• Received the training I need to fulfill my responsibilities as treasurer? Utah PTA’s Leadership Convention is held in May. Council and/or regions will schedule post-convention training and/or field service training subsequent to the convention.

• Made note of the duties of the treasurer and other financial requirements per the PTA Bylaws? The bylaws should be reviewed by the Executive Committee at the beginning of each year. The treasurer should keep a copy of the bylaws in the current year’s financial file and/or binder.

• Begun my responsibilities as chair of the Budget Committee? Sources of information to create the proposed budget include needs assessments, input from each commissioner and/or chairperson, and prior years’ financial records. Once the proposed budget is approved by the board, it must be approved by the membership at the first general membership meeting (prior to October 1st).

• Taken custody of the checkbook by July 1st and the prior year’s financial records by August 1st? The incoming treasurer can begin writing checks and making deposits on July 1st, even if the AFR has not been completed. Expenditures should be limited to those of a routine or emergency nature until the budget is approved by the general membership.

• Had the signature card at the bank changed, effective July 1st? At least three unrelated, elected officers should be authorized to sign on the account: the treasurer, the president, and generally the secretary and/or the president-elect. (Note: The bank may require an outgoing officer to initiate this change.)

• Set up a current year’s financial file and/or binder?

• Made sure that a ten-year file and a permanent file of financial records are retained and stored in a safe place, at the school if possible? (To find what is included in these files, see "What to File" section.)

WHAT TO FILE

Current Year Files

Each treasurer should set up and maintain a current year’s financial file or binder. This file should contain the following items:

• Copy of current bylaws

• Copies of prior year information

  • Year-End Financial Statement

  • AFR (Annual Financial Reconciliation) report

  • IRS filing

• Minutes of meetings

• Budget information

• Copies of Utah PTA signature documents

  • Basic Fiscal Management Procedures

  • Ethics/Conflict of Interest Policy

• Treasurer’s reports

• Bank statements with related reconciliation reports

• General ledger and check register

  • Organized by budget categories (and subcategories, as appropriate)

  • Maintained manually or using computer software

  • Used to track detail of transactions and to facilitate preparation of treasurer’s reports

• Supporting documents for all financial transactions

  • Receipts, organized chronologically

  • Disbursements, organized chronologically—in check number order

• Membership records

• Sales Tax Refund Request forms

• Grant agreements, if applicable

Ten-Year Files

It is important that certain records be kept beyond the current year. It is strongly recommended that the treasurer establish a record retention policy and maintain a ten-year file and a permanent file that could be kept at the school, with the permission of the principal. Here are some items that should be retained. Each treasurer should review the files annually and shred those records no longer needed.

For Ten Years

• Budgets

• Treasurer reports

• Check Register and General Ledger organized by budget categories 

• Cash receipts records, including Funds Received forms

• Bank statements

• Disbursement records, including Check Request forms with invoices, receipts, etc., including sales tax information

• Contracts and leases (expired)

• Grant award letters of agreement

• Sales Tax Refund Request forms

Permanent Files

In the Permanent File

• AFR (Annual Financial Reconciliation) reports and related Year-End Financial Statements

• Bylaws, including all amendments

• Contracts and leases still in effect

• Legal correspondence

• Insurance records, accident reports, claims, policies, certificates

• National PTA unit identification number

• Minutes of board and committee meetings

• Standing rules (current)

• Tax-exempt status documents

  • Letter from IRS assigning EIN

  • Determination letter

  • Form 990EZ and related schedules, if required, or Form 990N

  • Form 990T, if applicable, for unrelated business income

  • Correspondence with IRS

BANKING

The PTA should maintain one checking account with one checkbook for PTA funds. The checking account may be an interest-bearing account. The Employer Identification Number (EIN) issued by the IRS must be given to the bank and listed on the PTA checking account. The EIN assignment letter should be part of the PTA’s permanent records. An individual’s social security number should never be used on a PTA checking account except to verify the identity of a signer. When the PTA updates the signature card, the EIN should be verified. If there is any discrepancy, contact the Utah PTA office. Utah PTA will furnish a letter, if needed, to the bank to make necessary changes in the EIN.

Two signatures are required on all PTA checks. There must be at least three people authorized to sign on the checking account: the treasurer, the president, and generally the secretary and/or the president-elect. These people should not be related by blood or marriage, or reside in the same household. If the treasurer is related to one of the other officers, the treasurer is always on the signature card and another officer, unrelated, would be added. If the president and treasurer are related, the president should not be on the signature card but should sign all Check Request forms before the treasurer issues a check. The Admin VP and Teacher Rep VP (or other school district employees) cannot be signers on the PTA bank account. This could be considered a conflict of interest if they had jurisdiction over school district funds.

A PTA is permitted to have a savings account for its reserve funds. If the balance in the savings account becomes too large, it may become necessary to look closely at the purpose of the PTA’s fundraising. In addition, a PTA may not invest reserve funds in funding tools such as CDs, stocks, bonds, etc.

The purpose of the PTA is never to become the fundraising arm of any organization or to accumulate large sums of money.

Banking services should be reviewed every fiscal year. It is permissible for a PTA to bank with a traditional bank or a credit union. Services vary at each institution and factors involved in the decision where to bank should include the proximity to the school, the bank’s hours, after hours deposit policy, and banking fees. The decision to move from one institution to another should be a board decision and documented in the minutes of the board meeting.

In recent years, banking services have changed. Bank accounts are being accessed by debit cards as well as via the internet. Because of the volunteer nature of PTA, the turnover of officers, and the necessity of maintaining an accurate paper trail, PTAs must not use debit cards and limit internet banking services to “read only” options only.

Utah PTA and National PTA advise that if your PTA’s current environment has weak business processes resulting in poor internal controls, this must be addressed prior to or in conjunction with transitioning to an electronic environment. Taking weak and ineffective business processes and moving them to an electronic environment will only make matters worse quickly. The need for complete and accurate documentation is more important in an electronic environment. The need to recognize, research, respond to, and correct a problem is time sensitive in the electronic realm. Documentation regarding the change should be filed with your financial records and the changes should be approved by the PTA membership. 

PayPal/Square

Many PTAs are now considering using other electronic conveniences such as PayPal/Square. For example, T-shirt orders can be placed and PayPal/Square used as the payment method. The invoice is sent to the PayPal/Square account for payment. After logging into the PayPal/Square account, the invoice can then be approved for payment. The person confirming the payment through PayPal/Square can approve payment using digital cash, a credit card, or other EFT options. A few items to think about:

1. Is the benefit worth the cost? There is a cost in the time involved in setting up the account as well as transaction fees. If you think that using PayPal/Square would result in substantial increased donations then it is worth the cost. If it will bring in one or two more than you would have received via check or cash, then probably not.

2. A PTA PayPal/Square account should be directly linked to the PTA bank account. A PTA must never use someone’s personal or business account for PTA Purposes.

3. PayPal/Square transactions require the same documentation as other monies received including the purpose and source of the money. It might be helpful if someone other than the treasurer (ex. secretary) be responsible for maintaining the paperwork and the treasurer be responsible to review the documentation and make the download from PayPal/Square if all is in order. This maintains an additional checks and balances system.

Make sure that your PTA board approves this method of accepting funds and it is documented in the minutes that it was approved so there is no appearance of one person being in charge of the money and possibly using it for personal or business purposes.

Venmo Policy

Due to Venmo's user agreement, it is not acceptable for PTA units to use Venmo as a platform for collecting monies.  While Venmo now allows small businesses and non-profit organizations to use their platform (for a fee), a PTA unit that opens a Venmo account is in violation of Venmo's user agreement and is considered to be utilizing it fraudulently.  One of the stipulations of Venmo's user agreement is that an owner of the bank account must initiate transfers from Venmo to the linked bank account.  PTA officers are authorized signers on the PTA bank accounts and do not own them; therefore, this is not a platform designed for PTA usage.

Additionally, PTA board members must not collect funds on behalf of the PTA in their own personal Venmo account, and then remit a lump sum to the PTA.  This violates PTA internal control policies and is considered a mismanagement of funds.

Givebacks Store

Givebacks provides an easy-to-use store for each PTA. You can sell memberships, school gear, tickets, donations, and fundraising items in your Givebacks store. Givebacks partners with Stripe to process transactions. Much like other credit card processing platforms, Givebacks charges fees that can either be passed on to the purchaser or absorbed by the PTA. For more information about setting up your online Givebacks store, see Support.Givebacks.com.

Bank Statements

The monthly bank statement should be mailed to the PTA at the school address. When the bank statement arrives, a designated board member (who is not a signer on the bank account) should immediately review it, initial it, and then give it to the president to review and initial. Then it will be given to the treasurer to reconcile. For bank statements that are delivered online with read-only access, a designated board member (who is not a signer on the bank account) should go online to review, download, and print the statement.  This board member should initial the statement and give it to the president to review and initial. Then it is given to the treasurer to reconcile.

The bank statement must be reconciled by the treasurer in a timely manner. A sample form in Appendix 2 of this handbook outlines the reconciliation process. The bank statement usually has a form on the back that can be used for this purpose. Those PTAs using accounting programs to maintain their records should utilize the reconciliation function of the program. Once the treasurer has reconciled the bank statement, this report is then taken to the board meetings for the board to approve.

Accepting Credit Cards

Many PTAs take credit cards for membership and for fundraising items. Utah PTA requires the following guidelines to be met:

1.  Check with your region director to find out if your school district has a policy for or against PTAs taking credit cards in their school. We must always follow district guidelines since we are guests in their schools.

2.  In order for a local PTA to accept credit cards there must be at least three authorized signers on the bank account and bonding insurance must be purchased. Bonding insurance can be purchased through AIM Insurance (Utah PTA sponsor) for about $100 per year. This insurance will cover any board member who handles money for up to $10,000. There are other insurance companies that offer the same services.

3.  Local PTAs must follow proper procedures as a board by:

   • Holding monthly board meetings

   • Giving a verbal treasurer’s report at each board meeting

   • Reconciling bank statements monthly

   • Taking minutes at every board meeting and printing them out for the next meeting

   • Adhering to all internal controls and financial guidelines in the Treasurer Handbook

4.  Collecting funds via credit card processing must be approved by the board, it can not be a decision by the president or executive committee. To begin accepting credit cards, a motion must be made at a board meeting where a quorum is present. The motion is made and seconded, then the vote can be taken. The motion and result of the vote must be recorded in the minutes.

5.  Open an email account only used for the PTA (sunshinepta@gmail.com). Give access to all executive members to check the email account at all times.

6.  Open the account with the credit card company (ie: Square, PayPal/Square, Intuit, etc.) Use the email that you opened for the PTA for this account.

7.  Print out payment notification email or a statement and attach to a Funds Received form to account for funds transferred into the account.

8.  Following the bank statement process, have a non-signing board member look over the account first, then the president, then the treasurer can reconcile.

9. A separate treasurer report for this account must be presented at every board meeting.

UTAH PTA E-COMMERCE POLICY

Definition: Spending cards are prefunded and have limited funds available and time allowed to be spent. They are linked directly to your PTA/PTSA checking accou

NO DEBIT or CREDIT CARDS ALLOWED

PTA/PTSA units may adopt the use of online banking systems by board decision including; but not limited to, online banking with their primary banking provider, and/or online accounting tools such as QuickBooks.

The following are requirements that are consistent with non-profit laws and best practices. Also, check with your insurance company which holds your local PTA/PTSA unit policy to assure compliance.

•  PTA/PTSAs must have a bank account

•  Online accounts can only be opened and managed by the executive officers (president, vice president, secretary, and treasurer)

•  PTA/PTSA accounts cannot link to any individual accounts

Online Statement Review

Upon adoption of the e-Commerce Policy by a local unit, bank statements may be delivered online (read-only not required). A designated board member (who is not a signer on the bank account) should go online to review, download, and print the statement. This board member should initial the statement and give it to the president to review and initial. Then it is given to the treasurer to reconcile. The review by a non-signer is crucial as most insurance companies will require this in order to be eligible for any possible fraud claims.

Use of Prefunded Spending Cards

Cards are issued to the PTA/PTSA unit and the name of the user. Prior to use of the prefunded spending card, a budget for the funds must be approved by the membership. Following the purchase, the itemized receipt must be given to the treasurer and attached to the "Prefunded Spending Card" form.

•  Prefunded spending cards are not to be used for recurring payments or fund transfers

•  No cash transactions will be allowed (ATM, cash back, etc.)

•  If card is lost or stolen, the account must be reconciled immediately

Online Account Access

The password for online accounts must be changed at least once a year when there is a change in signer or when there is a financial reconciliation.

The PTA/PTSA needs to determine who has online access to the account. The treasurer and president should have full access, and if possible, the additional authorized signers and a designated non-signer bank statement reviewer should have read-only access.

BUDGETING

One of the duties of the treasurer is to develop, with the Executive Committee, an annual budget to be approved by the local PTA membership at the first general membership meeting of the year. The budget is the PTA’s road map for the year. The budgeting process should be taken seriously. However, it does not need to be complicated.

The treasurer is the chair of the Budget Committee. The president is a member of the Budget Committee, as are other elected officers or general members as either elected or appointed by the president. The Budget Committee will develop the budget and then propose it to the entire Executive Committee for their approval, after which it will be presented to the general membership for their approval.

Developing the Budget

The Budget Committee should begin the budgeting process during the transition period, after the new officers have been elected. The goals of the PTA for the year should be established first, and then decisions can be made about how to raise the needed funds. To create a budget proposal, the following information should be considered:

• Prior year financial records

• Needs assessment results

• Input from each commissioner and/or program chair

The estimated expenses of every program, project, and activity should be determined, along with any anticipated related revenue (for example, with a book fair). The budget should also include general and administrative costs, especially for leadership training (such as the Utah PTA Leadership Convention). Sources of revenue will include membership dues (local portion only) and contributions, as well as fundraising projects. Both the funds carried over from the previous year and the amount of money to be carried over to the subsequent year should be identified.

A Proposed Budget Worksheet, located in Appendix Two: Tools, may be helpful in this process.

The budget should be general and flexible enough to meet the changing needs of the PTA. Establishing categories for both revenue and expenses is recommended, individually listing only those items greater than ten percent of the total budget. Budget categories can be organized by commission, with more detailed information for Executive Committee use only. The PTA may consider including a phrase such as “Revenues received in excess of budgeted amounts will be carried over to the subsequent year” on the budget.

Approving the Budget

Once the proposed budget is approved by the Executive Committee, it must be approved by a majority vote of a quorum of the membership at the first general membership meeting (such as Back-to-School Night). The number needed for a quorum can be found in your bylaws and is usually at least ten members. The treasurer might present the budget item by item, either by distributing a copy of the proposed budget to each member or projecting it on an overhead or via computer at the meeting. Members should have the opportunity and the time to ask questions before voting on the proposed budget.

The motion to approve the budget is made as follows:

• The treasurer could make the motion: “I move that the budget be approved as proposed.”

• If the motion comes from the Budget Committee, no second is required.

• The president asks: “Are there any (further) questions or discussion?”

• After discussion and questions, the president calls for the vote: “If there is no further discussion, we will take the vote on the motion to approve the budget as proposed. All in favor, please say aye. All opposed, say nay.”

• The president then reports on the result of the vote: “The motion to approve the proposed budget has passed (failed).”

A majority vote of the general membership is required for approval, with at least a quorum in attendance as specified in the bylaws. (Most local PTA bylaws specify that ten members constitutes a quorum; see Article IX, Section 2.) The secretary must take minutes at this meeting to document the approval of the budget. A copy of the approved budget and the minutes of the October 1st.

The approved budget gives the Board of Directors authorization to spend the PTA’s funds in accordance with that budget. Committees and committee chairs receive authorization to proceed with a project or to spend funds from the Board of Directors. No committee or committee chair should ever obligate the PTA to a program, project, or activity—or any obligation, financial or otherwise—without the approval of the Board of Directors. No officer is authorized to spend funds that have not been approved by the membership. All expenditures must have been approved through the budgeting process.

Amending the Budget

Because the budget is only an estimate or approximation, it is likely that changes will be necessary during the year. (For example, if a fundraiser is more or less successful than anticipated or if a situation or opportunity arises that had not been considered when the original budget was created.)

Changes or amendments to the budget during the year must be approved by a vote of the membership. PTA funds belong to the membership. No other group or individual—including the president, the treasurer, the Executive Committee, the school principal, and the school community council—may make financial decisions alone.

Any substantial change (10%) to the budget must be approved by a two-thirds vote of a quorum of the membership.

• The amendment must occur prior to any additional funds being disbursed.

• The vote may be taken at any regular general membership meeting or at a special meeting called for that purpose.

• The number of members required for a quorum is defined in the bylaws.

The motion to amend the budget is made as follows:

• The treasurer could make the motion: I move that the budget be amended to… “ (e.g., add $100 to Health and Safety; transfer $175 from Education to Individual Development; provide that the $3000 in fundraising revenue received in excess of the budgeted amount be carried forward to the 2022-2023 fiscal year).

• Unless the motion comes from committee, a second is required: “I second the motion.”

• The president asks: “Are there any questions or discussion?”

• After discussion and questions, the president calls for the vote: “If there are no further questions, we will take the vote on the amendment to [read the original motion]. All in favor, please say aye. All opposed, say nay.”

• The president then reports on the result of the vote: “The proposed amendment to the budget has passed (failed).”

Carryover or Reserve Funds

Emergency reserve funds are considered an integral part of each PTA’s planning and budgeting process. An emergency reserve fund is intended to serve as a means to retain financial stability in the event of unforeseen developments. Maintaining a small savings account and/or carryover balance will allow for efficient management of funds as well as provide funds to carry on programs until the next opportunity for revenue.

The amount of the carryover or reserve funds will vary according to each PTA’s size and needs. National PTA has suggested that the reserve not exceed one-half of a PTA’s budget for an average year, but each PTA can establish its own policy. No IRS regulation or other federal law specifies a carryover limit.

If the revenue sources for one year bring in more money than was anticipated, it can readily be carried forward, giving the next year’s officers the opportunity to have limited fundraising or even no fundraising at all. No one has the authority to write a check to the school or anyone else for unbudgeted items to “clean out” the PTA account. The purpose of fundraising is to run PTA programs; the PTA is not the fundraising arm of the school.

PTAs without a sufficient carryover or reserve fund should work to build one over time.

Board Designated Funds

PTAs will sometimes identify projects for which it is necessary to accumulate funds over a period of time, or for which it wants to allocate funds in order to maintain the project. In such cases, the board should vote to designate a specified amount of carryover money be set aside for a specific purpose. For example, a motion could be made that “Sample High PTSA set aside $___ of carryover funds to finance the continuation of the _______ project next year.” It is highly recommended that the motion approving the designation also be voted on by the general membership.

Generally, such a designation will only be effective when there is continuity in the leadership. The future board(s) will decide whether or not to continue the designation. There is no time limit on how many years funds can be carried forward, as long as the membership approves raising funds for the project each year.

Receiving and Disbursing Funds

The treasurer has the responsibility to ensure that all funds going in and out of the PTA’s bank accounts are accurately recorded on the PTA’s books. Funds Received Forms and Check Request Forms should be used to maintain adequate documentation of all transactions.

Receipts

Detailed supporting documentation should be maintained for every deposit.

• Use of the Funds Received form provides this documentation. (See a sample form in Appendix 2.) The source(s) of revenue (e.g., memberships, t-shirt sales, fundraiser, sales tax refund) and any other pertinent information should be noted on the form, and any supporting documentation available should be attached to the form. 

• The person, often an event or program chair, who completes the Funds Received form should give it promptly to the treasurer, who will prepare the deposit. A copy of the completed deposit slip (which will show the date and the total amount of the deposit) and the checks to be deposited should also be attached to the form.

• Deposits should be numbered, and deposit receipts (from the bank) should be attached to the Funds Received forms.

• Funds Received forms should be maintained with the financial records.

Three people must be present for all counting of cash (membership dues, book fair receipts, fundraising activities, etc.). The treasurer should be one of the three people, whenever possible. The others can be members of the Executive Committee, event or program chairs, or other PTA volunteers who have been trained on proper procedures. Any board member or PTA volunteer must sign the PTA Basic Fiscal Management Procedures form before handling the money of the PTA.

• Money Counting Sheets, with three signatures, should be used. (See a sample form in Appendix 2.)

• Counting sheets should be attached to Funds Received forms, utilizing one set of counting sheets per deposit so that the count agrees to the amount of the deposit.

All money received should be deposited the same day.

• Two people should take the deposit to the bank.

• Money should never be taken home or left at the school overnight.

• The bank’s night depository should be used for events concluded after banking hours. (A key can be obtained from the bank or the bank bag picked up the next day.)

• Preparing daily deposits throughout a lengthy event, such as a book fair, will minimize the time required at the conclusion of the event.

Disbursements

A PTA check should never be written without a completed Check Request form.

• The form should include the date, the payee of the check, the amount, the purpose, as well as a place for the check number.

• The form should also include a place to track the amount of sales tax paid.  This will provide the documentation necessary to submit a Sales Tax Refund Request at the end-of-year reporting period.

• A sample Check Request form is located in Appendix 2.

• Receipts and/or an invoice (or other supporting documentation) must be attached to the form.

• The person submitting the request should sign it, and the president and the treasurer will also sign the form, indicating their approval of the disbursement.

• The principal signs each check request. He or she is not approving the check request, but acknowledging that he or she is aware of each transaction.

All PTA expenses must be paid with a PTA check (or Prefunded Debit Card, if e-Commerce Policy has been adopted by your PTA), either issued for the original expenditure or as a reimbursement to an individual for expenses he or she has personally paid. Sales tax refund requests can only be made for expenses paid by a PTA check. The use of Petty Cash systems is prohibited in PTAs. The following rules govern issuance of PTA checks:

• All PTA checks must be signed by two authorized officers: the treasurer, except in an emergency, and preferably the president. The signers may not be related by blood or marriage, nor reside in the same household.

• Neither the Principal nor the Teacher Vice Presidents should sign PTA checks to avoid any possible conflict of interest.

• Checks should only be issued after a Check Request form is completed.

• Receipts must be attached to Check Request forms.

• A blank, signed check should never be given to anyone.

• When the PTA membership approves funds to be given to the school, it is preferable that the PTA pay bills directly. The school can also be reimbursed for specific purchases made for the PTA within the approved budget; copies of purchase orders and/or itemized receipts should be provided to the PTA. If direct payment or reimbursement is not possible, the funds should be given to the school in the form of a grant. A written grant agreement between the PTA and the school should be signed by the PTA president and treasurer and the school principal. The agreement should specify the amount of money to be granted, the purpose for which it is to be used, the date by which it is to be spent, and statements that the school will provide an accounting of the funds to the PTA and that unused funds will be returned to the PTA. (See Appendix 2 for a Sample Grant Agreement.)

All transactions should be recorded in the check register in a timely manner. A ledger system should also be established whereby a written record is maintained of revenue and expenses by category, as outlined on the budget. Samples of a manual ledger system are located in Appendix 2. Computer programs may also be used to record transactions and are generally easier and quicker to use after the initial set-up time. 

CASH BOX INSTRUCTIONS

1. Complete a Check Request form for the beginning cash box amount (to document check).

2. Write a check out to the chair person of the event for the beginning cash box balance.

3. Give the check to the chair person, instruct them to cash the check at their bank and bring the cash to the event. Have chair person give you the check’s cashed receipt from bank, if the bank provides one. Attach the receipt to the Check Request form.

4. Have someone other than the chair person verify and document the beginning cash box balance on the Money Counting Sheet.

5. Before depositing the proceeds from the event, make sure the cash box start balance is removed from the income of the event and, when deposited, document it as Cash Box Re-deposit and not as actual income from your event.

The "Beginning Cash Box Balance" form is in Appendix 2 of this handbook.

It can also be found at utahpta.org/Treasurer

REPORTING

The treasurer is responsible for making regular financial reports to the PTA officers and to the membership of the PTA.

• The PTA officers have a fiduciary responsibility to know the current financial status compared to the budget approved by the membership.

• The PTA membership needs to know how their money is being handled compared to the budget they approved.

• The PTA officers and members need to know if there are sufficient funds available to meet the goals set.

Treasurer’s Report Information

At each meeting of the Board of Directors and at each general membership meeting, the treasurer should present a report giving the financial status of the unit. This report should include at least the following items:

• Balance from the last report

• Income since the last report, e.g., dues, fundraising event, book fair

• Expenses since the last report

• Current account balance

This report should be made available for any interested officer or member to see where the PTA money is coming from and how it is being spent. Remember that the budget was approved by the PTA membership and they have the right to see whether the board is spending within those guidelines. When the membership can see that the PTA board is trying to follow the budget guidelines, there will be fewer complaints about the handling of the PTA money. More information about the treasurer’s report can be found in Appendix 2. Three copies of the Treasurer's Reports should be made: one for the president, one for the secretary to be filed with meeting minutes, and one for the treasurer to keep on file for the AFR (Annual Financial Reconciliation).

A budget analysis can be a very useful form of the treasurer’s report. This report shows a comparison of what was budgeted, the actual expenses and income, and the difference between the two. It gives, at a glance, a detailed accounting of how the PTA is using the money and can show where there are any problem areas in the budget.

Year-End Financial Statement Information

The Year-End Financial Statement is prepared by the treasurer at the end of the PTA fiscal year (June 30th). It is a detailed report of actual income and actual expenses for the entire PTA year (July 1st - June 30th). This report is the means by which the PTA members are informed of the financial situation of the PTA for the past year. This information should be easily obtained from the ledgers for the year or from the Monthly Treasurer's Reports. This Year-End Financial Statement must be given to the incoming PTA officers by June 30 and is submitted with all the treasurer’s records for AFR. The new officers will present the Year-End Financial Statement with the AFR report to the membership at the first general membership meeting of the new PTA year (usually Back-to-School Night).

Samples and report forms are in Appendix 2 of this handbook as is a Year-End Financial Statement form. They can also be found at utahpta.org/Treasurer

Annual Financial Reconciliation (AFR)

The AFR Procedure Is As Follows:

1. Agree beginning balance (July 1st) to ending balance (June 30th) on previous audit report and on June 30th Bank Reconciliation.

2. Check Year-End Financial Statement and Monthly Treasurer's Reports for accuracy.

3. Review final Bank Reconciliation (June 30th), noting deposits pending and checks outstanding.

4. Verify that all income and expenses listed on the Year-End Financial Statement were included in the approved budget.

5. Perform a sample test of transactions. The size of this sample should be based on the size of the organization. If discrepancies are found, the sample should be broadened to take in more transactions. At some point, it may be deemed necessary to audit all the transactions of a PTA. Testing should include the following areas:

   • Tracing entries in general ledger and/or check register to treasurer’s reports.

   • Reviewing monthly Bank Reconciliations, investigating any unusual or unexplained reconciling items.

   • Examining canceled checks for two signatures and, if possible, appropriate endorsements.

   • Tracing deposits made to cash counting sheets and deposit slips, noting timeliness of deposits based on known dates of events.

   • Tracing checks paid to Check Request forms, noting appropriate authorizations and supporting documentation.

6. Reconcile membership dues income to membership reports by agreeing number of members to amount recorded as income (number of members multiplied by local portion of membership dues amount). Make certain that Utah PTA and National PTA portions of membership dues receipts (amounts not belonging to the unit) have been remitted through Givebacks or via check with dues remittance form in a timely manner. If applicable, make certain that the council PTA dues have also been remitted to council/region treasurer in a timely manner.

7. Verify that any money collected for a specific purpose has been disbursed for that purpose.

8. Check that refunds have been requested through Utah PTA for all sales tax paid during the year.

AFR Report

The auditor/AFR Committee must issue a written report once they are satisfied that the records are accurate. Any errors found should be corrected. (Samples and forms are located in Appendix 1.) To be meaningful, the report should include three parts:

1. A summary of beginning balance to ending balance for the fiscal year showing gross receipts and gross disbursements.

2. A reconciliation to the bank statement balance as of June 30th.

3. A statement of the results, signed by the auditor/AFR Committee.

The auditor/AFR Committee must also issue a report in the event that there are not adequate records to conduct appropriate AFR procedures. A sample statement might read, “The AFR Committee has examined the records of the treasurer of _______ PTA and found that more adequate accounting procedures need to be followed so a more complete AFR report can be issued.” The AFR Committee should indicate the information that is needed.

At any time during the AFR process, your council president, treasurer, or region director may be contacted for information or assistance.

The AFR Procedure Checklist and Report Form are in Appendix 1 of this handbook. They can also be found at utahpta.org/treasurer

MEMBERSHIP DUES

State and National Dues

Membership dues should be paid by a PTA check and mailed to Utah PTA office with a Dues Remittance form, or an ACH eCheck through Givebacks. A $1.00 ACH fee for each eCheck transaction will apply. For more information on submitting dues, see the Utah PTA website or Support.Givebacks.com. No cash or personal checks will be accepted.

• Dues should be submitted by the 25th of each month.

Council Dues

• The council dues are only applicable if you are in a region with councils.

• The council dues amount is determined by the council bylaws.

• Council dues are to be submitted to council treasurer by the 25th of each month. 

SALES TAX REFUND REQUEST FORMS

Instructions for Submitting

Keep these errors in mind as you read through the instructions for your PTA.

Most Common Errors

1. Wrong period covered. Check to make sure that the appropriate period is covered by the specified deadline. Also, do not include any items outside of the period to be covered.

2. All necessary information is not included on the detailed list of sales tax transactions.

3. Including book fair sales tax on the refund request. Sales tax collected on behalf of third-party vendors, such as the book fair, will not be refunded by the Utah State Tax Commission.

Submission Instructions

1. Unit requests for sales tax refunds are due by August 1st for the fiscal year just ended (July 1st through June 30th).

2. To receive a refund from the State of Utah, a PTA making a refund request must be a PTA in good standing. This means that it must have an EIN, current bylaws, and all membership dues must have been paid to Utah PTA and National PTA.

3. There is no minimum for which refund request may be made. A $2.00 processing fee will be assessed by Utah PTA for refunds over $20.00

4. Make a copy of all pages for document retention by the PTA.  

5. Sales Tax Refund requests should be submitted online at utahpta.org or give to the council/region treasurer for online submission.

6. Once requests are submitted, it takes approximately three months for check to be received back from the Utah State Tax Commission via Utah PTA. Refund checks will be mailed to the school address.  Checks should be deposited promptly upon receipt.

7. Completing a Sales Tax Refund Request should not be viewed as an optional activity. These funds can and should be requested according to the established procedure so that they can be used to further the work of PTA.

Council Instructions

See current instructions on utahpta.org/treasurer

Region Instructions

See current instructions on utahpta.org/treasurer

Book Fair Sales and Sales Tax

• In 2017 the Utah State Tax Commission issued clarification on PTA book fairs and sales tax. Book fair companies are now classified as "3rd party sales" companies.

• This means they bring books, etc. to your school for the sale. Then they pick up the leftover books, etc. to resell at the next book fair.

• You must charge sales tax to all customers.

• If the school wants to use their tax exempt number to purchase books, please see that the book fair company knows the amount and gets the tax exempt number for their records.

• When accounting is finished at the end of the book fair, you will send all the taxes plus what sales you owe them. The book fair company will be responsible to pay Utah State Tax Commission the appropriate taxes. 

• Sales tax paid to 3rd party sales companies (such as Scholastic Books, for book fairs) can not be request as a refund on a PTA Sales Tax Refund request.  Per the Utah State Tax Commission, this event is not exempt from sales tax.

Sales Tax Refund Request forms are in Appendix 1 of this handbook. They can also be found at utahpta.org/treasurer