Treasurer Basics

Basics of Being the Treasurer

The treasurer, elected by the members, is the legally responsible and authorized custodian of the funds of the PTA unit. The treasurer does more than make deposits and write checks. It is the treasurer who ensures that the unit’s finances are properly handled. This is a critical job, since proper handling of the unit’s finances will keep the unit in good standing and maintain its credibility with the members, the school, and the public.

A treasurer must be diligent, knowledgeable, and conscientious in order to maintain accurate and up-to-date records. These records should be kept in accordance with standard, accepted accounting practices and must comply with PTA bylaws and IRS regulations. As an elected officer of the PTA unit, the treasurer is a member of the executive committee and the board of directors. The treasurer’s active participation in all executive committee and board meetings is imperative so that he or she has input into the business of the board and in the decision making. Members of the board of directors of any non-profit organization have important responsibilities. Some of these responsibilities are imposed by law; others are the result of years of court decision which have imposed various “fiduciary duties” on directors.

Duties of the Treasurer

The specific duties of the treasurer are outlined in the bylaws (Article VII: Duties of Officers, Section 5, for local PTAs and Article IX: Duties of Officers, Section 5, for councils).

The treasurer shall: Œ

• Have custody of the checkbook and be responsible for all funds of the PTA unit. Œ
• Develop, with the executive committee, an annual budget to be approved by the local PTA membership (or council voting body). Œ
• Keep a full and accurate account of receipts and expenditures of all monies of the PTA unit. Œ
• Count all monies with three people present and deposit all monies in the bank the same day received. Œ
• Make disbursements as authorized, in accordance with the approved budget. Œ
• Co-sign all checks with the president, president-elect, or secretary. (No two officers who are related by blood or marriage or who reside in the same household may be signers on the checking account.) Œ
• Make a monthly remittance of state and national portions of membership dues to Utah PTA. Œ
• Present a treasurer’s report at every meeting of the executive committee, board of directors, and general membership. Œ
• Make a financial report at the annual meeting and submit a full written year-end financial statement to the incoming executive committee. Œ
• Submit the books, after they have been closed for the year, for an AFR (Annual Financial Reconciliation) by an auditor or an AFR committee.

The PTA Fiscal Year

A fiscal year is a twelve-month accounting period. Many businesses conduct their financial operations based on a fiscal year rather than the calendar year. PTAs in Utah operate on a fiscal year of July 1 to June 30, as specified by Article XII of the local PTA bylaws and Article XIII of the council bylaws. Each PTA unit is required to operate within that accounting period. The fiscal year corresponds with the term of office.

A Unit in Good Standing

For a local PTA to be “in good standing,” it must be in compliance with National PTA and Utah PTA bylaws and guidelines, including the following: Œ

• Adhering to the purposes and basic policies of PTA. Œ
• Having an EIN (Employer Identification Number) from the IRS on file with Utah PTA. Œ
• Submitting the names and contact information of current officers to council/region or on MemberHub. Œ
• Having current bylaws renewed every three years. Œ
• Remitting national and state portions of membership dues to Utah PTA by dates designated. Note: The current procedure requires local PTAs to make monthly remittances, by the 25th of each month, with a final remittance by June 25. Œ
• Submitting year-end financial statement, AFR (Annual Financial Reconciliation) report, and approved budget to council/region or on MemberHub. Œ
• Submitting approved budget and minutes, proof of insurance, and signature pages for Basic Fiscal Management Procedures and Ethics/Conflict of Interest Agreements to council/region or on MemberHub. Œ
• Submitting IRS Form 990EZ, if required, or Form 990N, both online.
• If a local PTA is not in good standing, neither the unit nor the students attending the PTA’s school are eligible to participate in PTA programs (such as Reflections or Battle of the Bands) or receive awards. Sales tax refunds will not be issued to PTA units not in good standing, and these units may be subject to loss of their tax-exempt status through Utah PTA’s group exemption.

Accountability and Transparency

“Accountability” and “transparency” are two buzz words that represent important concepts in accounting and financial operations. An attitude of open and full disclosure is important for all nonprofit organizations. The more transparent and accountable the PTA unit, the better. Providing relevant, reliable information about the PTA’s activities and its financial position—through newsletters, regular treasurer’s reports, and year-end financial statements, for example—will fulfill the association’s responsibility to be accountable and transparent. Who is the PTA accountable to? To the members, sponsors, community, and government regulatory agencies. Each local PTA is also accountable for the good reputation that PTA has earned over its long history.