Transcript Document

Area 2 Gwinnett County
Council Leadership
Treasurer Training
Cathy Wendholt-McDade
Georgia PTA Treasurer
The PTA Audit
• Certify the accuracy of the records of the
financial officer.
• Assure the membership that resources/funds
are being managed in a businesslike manner
within the membership approved budget.
• Required to be in good standing with Georgia
PTA and for bonding insurance.
Audit FAQs
• Does the audit have to be completed by
a CPA?
• Do we have to pay someone to do our
audit?
• Can we write checks during the audit?
Once the audit is complete…
• Auditor presents report to the Executive
Committee
• Executive Committee presents the report to
the membership at the first meeting of the
school year to adopt the report
• Copy of audit report (all 3 pages) is
submitted to the state office no later than
September 30th.
• Gross receipts for the year are filed on the
appropriate federal tax form with the IRS.
IRS Form 990
• All Not For Profits, regardless of
income, required to file a Form 990
• 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
IRS Form 990 N
Completing the e-Postcard requires the seven
items listed below:
1. Employer identification number (EIN)
2. Fiscal year
3. Legal name and mailing address
4. Any other names the organization uses
5. Name and address of a principal officer
6. Web site address if the organization has one
7. Confirmation that the organization’s annual
gross receipts are normally $50,000 or less
990 FAQs
• When is my 990 due?
• Who is responsible for completing?
• Who is responsible for sending in to
IRS?
• Who signs the return?
Online Resources
Internal Revenue Service
www.irs.gov
GuideStar
www.guidestar.org
National Center for Charitable Statistics
http://nccsdataweb.urban.org
The Budget Process
• Budget Committee prepares proposed
budget
– Calendar of programs and projects
– Realistic estimates of the costs
– How will you fund programs
• Present proposed budget to Board of
Directors
• Present proposed budget to General
Membership for approval
• New budget each year
Things to Consider before
Fundraising
•
•
•
•
Don’t just fundraise to fundraise!
Membership Approval
Carry over
3 to 1 Rule
• http://www.irs.gov/charities/index.html
Things To Remember
• Dues Transmittal
• Insurance Premium
• Incorporation Fees
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)
Other Insurance Coverage
• 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.
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.
Treasurer’s Responsibilities
• Write checks as authorized by the PTA/PTSA
president in accordance with the adopted
budget ;
• Have checks signed by 2 people: the treasurer
and 1 other person. (Individuals authorized to
sign checks shall not be related to each other;
• Always issue a receipt for cash received;
• Maintain a full and accurate account of the
receipts and disbursements in the books
belonging to your PTA/PTSA;
Treasurer’s Responsibilities
• Reconcile the bank statements monthly and have
the statements reviewed, signed and dated by
the president and another PTA member (not
related to the treasurer);
• Have records available at all meetings;
• Provide a written financial statement at all
PTA/PTSA meetings;
• 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
Treasurer’s Responsibilities
• Never sign a blank check;
• Pay all bills by check – never by cash;
• Never deposit funds of this PTA in a personal
account or a school account;
• Electronic banking
Treasurer’s File
•
•
•
•
•
•
•
•
•
•
•
Bylaws
Budget
Last Audit Report
Checkbook register/Cancelled checks (voids too)
Signed Cash Verification Forms/Deposit slips
Authorized Check Request Forms/Receipts
Bank statements, bank books Cash receipts
All PTA/PTSA meeting minutes
Treasurer and Secretary reports
Annual Financial Report
Copy of last tax return filed
Internal controls
The cornerstone of all your PTA’s financial
transactions.
Most only require one person to create, the risk
of fraud increases due to lack of checks and
balances.
Ensure that you have proper internal controls
in place to mitigate that risk.
Internal controls
Factors necessary:

Board of directors commitment

Sound policies and/or procedures
regarding the segregation of duties

Compliance with and review of the
policies/procedures in place
Internal controls
Factors necessary:

Policies/procedures should be in writing

Segregation of Duties
Internal controls
Factors necessary:
 Segregation of Duties:
•
A person(s)* who does not have the
authority to approve payments receive
invoices
•
The person(s)* who can approve payment
should not be able to cut checks or enter
invoices into the accounting system
Internal controls
Factors necessary:

Review on a monthly basis all bank
statements and bank reconciliations by
someone who does not have access to
authorize or enter invoices

Maintain a filing system for proper and
complete storage of all necessary
documentation
Internal controls
Factors necessary:

Be organized and consistent

Review internal control policies/
procedures annually

Ensure proper training for personnel
or volunteers
Risk
Regardless of how automated the
process, without effective internal
controls in place, there will be
opportunity for fraud to occur.
Risk
For fraud to occur, only three
things are needed:
opportunity
pressure
rationalization
FRAUD
If you believe that fraud has
occurred, which generally involves
stolen or misappropriated assets
like cash, property, or equipment;
you should contact your Council,
District and State PTA.
Online Bill Payment
Helps improve visibility and transparency of
the accounts payable process through
automation and electronic record-keeping
Helps eliminate lost or misfiled documents
Reduces process and data entry errors
through document capture and financial process
automation
Eliminates check printing, signing, and
mailing
Online Bill Payment
Allows access to financial documents
anytime, anywhere
Helps eliminate check fraud
Forces second approval of vendor payments
Can increase productivity and lower costs
through paperless document imaging, automated bill routing, and integrated online bill
payment
Online Bill Payment
But….
fraud could still occur the same way it could if
using checks.
Online Bill Payment
Possible Service Providers
Anybill - https://www.anybill.com
Bill.com™ – https://www.bill.com
Intuit Quicken Bill Pay –
https://quicken.intuit.com/
Online Banking
Recommended Account Controls

Train volunteers on policies and procedures

Consult with your bank to see what security
options are available

No shared user names and passwords

Assign two individuals as administrators

Set user online access levels by roles and
responsibility
Online Banking
Recommended Account Controls

Review user online access levels regularly

Delete online user IDs as soon as a person
resigns his or her position

Set up alerts to notify persons of payments
initiated or deposits made

Allow read-only access to individuals who
should be monitoring the bank account
Online Banking
Recommended Security Settings

Keep an updated antivirus application

Keep your passwords and user IDs secure

Select a strong password and do not give
your password or bank ID to anyone

Never respond to or open internet links or
attachments in unsolicited emails, especially
ones that appear to come from your bank
Using Credit Cards
for Bill Payments
Have credit card policies and procedures in place
 State by whom and for what it can be used
and cardholder responsibilities
 Have cardholders sign a statement
- they have received the credit card
- have read and agree to the terms and
conditions of the credit card policy

Get a credit card that will allow limits by user
-limits set by board of directors
Using Credit Cards
for Bill Payments
Have credit card policies and procedures in place
 Get a credit card that will allow limits by user
-limits set by board of directors
 Set up an approval process
-all credit card receipts are received
-all charges have been pre-approved
 Make sure expense reports are signed/dated
-card holder -designated approver
Using Credit Cards
for Bill Payments
Have credit card policies and procedures in place
 Make sure the cards of all former volunteers
are destroyed and deactivated immediately
upon termination
 Assign a person who does not have a
company card to review receipts and
reconcile them to the credit card statement
Use of ATM/Debit, Gift, or
Deposit Only Cards
National PTA highly recommends that the
use of debit or gift cards not be used as a
form of payment.
Deposit only ATM cards are acceptable if
your bank offers this service.
Deposit Only Cards
Deposit only ATM cards can be requested for
volunteers, which allow them to make deposits
only
Each card has a unique card number and
individual personal identification number (PIN)
Deposit cards can be used at any deposittaking ATM that is affiliated with your bank
Accepting Credit Cards
When a local PTA decides to accept credit
cards as a form of payment, a review of internal
controls will need to be conducted to ensure
policies/procedures are in place.
Accepting Credit Cards
Best Practices
Do not transmit cardholder’s credit card data
by e-mail, mail or fax
Do not store credit card data for customers on
paper or electronically in an unsecured area
Do not store PIN or CVV2/CVC2/CID numbers
Do not share user ID’s
Accepting Credit Cards
Best Practices
Never disclose any cardholder’s data without
their consent
Store all documents containing credit card data
in a secure place which PTA solely controls
Ensure that the person processing the
transaction is properly trained in best practices
Accepting Credit Cards
Best Practices
Each person who has access to credit card
information is responsible for protecting it
Keep documentation for each transaction so
that disputed charges do not become a problem
When a refund is necessary, the refund must be
credited only to the same account from which
the purchase/donation was made
Accepting Credit Cards
PTA’s Responsibilities
Must comply with Payment Card Industry Data
Security Standards (PCI DSS)
These standards protect the PTAs from issues
of liability and fraud
PCI Data Security Standards can be located at:
http://www.pcisecuritystandards.org/securitystandards/pci_dss.shtml
Thank you for having me here today
Cathy Wendholt-McDade
Georgia PTA Treasurer
[email protected]
114 Baker St., NE
Atlanta, GA 30308-3366
Phone: 404-659-0214 or 1-800-PTA-TODAY