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. It is recommended that Funds Received Forms and Check Request Forms 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. 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 might 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 should be present for all counting of cash (membership dues, book fair receipts, fundraising activities, etc.). It is recommended that the treasurer 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 in the appropriate procedures.
- Money counting sheets, with three signatures, should be used.
- 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 can 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 deposits periodically 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.
- It is highly recommended that the form also provide a place to track the amount of sales tax paid.
- A sample Check Request Form is attached.
- 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 is not approving the check request, but acknowledging that he is aware of each transaction.
All PTA expenses must be paid with a PTA check, 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. Petty cash systems should not be used. 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.
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. 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
- Complete a Check Request Form for the beginning cash box amount (to document check).
- Write a check out to the chair person of the event for the beginning cash box balance.
- 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.
- Have someone other than the chair person verify and document the beginning cash box balance on the "Money Counting Sheet."
- 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.