McDonald Elementary PTA

Financial Policies

as of August 20, 2013

McDonald Elementary PTA should adhere to the Washington State PTA Financial Guidelines issued in Money Matters and the below financial policies specific to McDonald Elementary PTA. It is the responsibility of the entire PTA Board to ensure these policies are followed. Money Matters and the below Financial Policies outline basic financial procedures which will help ensure PTA funds are properly administered and safeguarded.

Budget

An annual budget should be developed that reflects the goals and objectives of the PTA. The budget should be developed and approved before the end of the current school year (June 30) for the next fiscal year (July 1 – June 30). This allows the PTA to continue operating and to meet its financial obligations once school is over for the summer.

The budget should be reviewed and approved by the PTA board. Following the board’s review and approval, the budget must be presented to the membership for approval. A majority vote by the PTA’s general membership is required for approval of the budget at a general membership meeting.

Throughout the year, the budget can be changed (amended or reallocated) by:

  • Vote of general membership
  • Vote of the board of directors acting on behalf of the membership, between meetings of the membership. The board must be acting with permission of the general membership through the standing rules. If the board approves a change, it must be presented to the general membership at the next general membership meeting.

Disbursing Funds

All PTA funds should be disbursed via check with two signatures. The use of a PTA debit card, credit card, ATM card, and online banking to disburse PTA funds is not permitted. Only elected officers shall have the authority to sign checks. Authorized signers should not include members from the same family.

PTA expenditures should be documented with a receipt or invoice. Reimbursement should be requested using the attached Reimbursement Request Form.

Bank Accounts/Statements

The balance in any one bank should not exceed $250,000 at any time to stay within FDIC Insurance limits. Banking activity online should be limited to receiving ACH and other direct deposits, viewing and printing bank statements and making transfers between PTA bank accounts. No disbursements should be made online. Bank statements should be mailed to the Treasurer, but opened by a Board Member who is not an authorized signer on the account. The Board Member should review the bank statements using the attached checklist. Both the Board Member and Treasurer should sign and date the checklist. The checklist should be maintained with the bank statement.

Bank accounts should be reconciled in a timely manner. Monthly QuickBooks (QB) financial reports should be printed and filed with the month-end bank reconciliations, ensuring the bank account balance in QB on the day of the reconciliation matches the bank reconciliation.

A log should be kept of all voided checks and they should be entered into QB.

A system should be put into place to record any adjustments made to prior periods in QB after the month end bank reconciliation is completed.

Receiving Monies

Monies received via cash or check by the PTA should be collected by someone other than the Treasurer and recorded on a check log (see attached). The monies and check log should be handed over to the Treasurer for recording in QB and deposit into the bank account. The check log and monies should be tallied, reconciled, and signed by both the person collecting the monies and the Treasurer. All cash collected should be counted by at least two PTA individuals.

Receipts should be provided for all donations received by the PTA.

All PTA funds should be deposited and only into authorized PTA bank accounts.

All non-move-a-thon income or donations/grants specifically allocated are to be allocated to the Immersion Assistant Fund. At the end of the fiscal year, all general funds not used or reserved are to be allocated to the Immersion Assistant Fund. Donations/grants specifically allocated must be used as designated.

Contracts/Grants

All PTA contracts/grants should be reviewed by the PTA board and signed by the PTA President and one additional elected PTA officer.

Financial Reports

A detailed financial report should be prepared for each of the 12 months and presented at every board meeting. The latest report should also be provided at three PTA general meetings per year. A detailed annual financial report for the fiscal year end (June 30) should be prepared and presented at the fall PTA general meeting.

Membership Dues

Membership service fees should be submitted on time and should reconcile to the number of members recorded in the on-line membership enrollment program. Each time membership service fees are remitted, a copy of the membership services remittance form, a member listing from membership enrollment program, and a snapshot of the QB membership due account should reconciled and maintained in the PTA’s records.

Financial Review

An annual financial review should be performed as outlined in Money Matters.

Submissions

All required PTA submissions should be filed accurately and on time:

  • Membership Service Fees
  • Insurance Payment
  • Secretary of State Non-Profit Incorporation Service Fees
  • City of Seattle Business Tax Return
  • IRS 990 Tax Return
  • Secretary of State Charitable Organization Renewal

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