Treasurer Training�

Presenter

Rachel Coleman, Minnesota PTA Treasurer

Treasurer@mnpta.org

Treasurer Training-Agenda

• Purpose of the Treasurer
• Required Responsibilities
• Filing the 990 (Required for All Units)
• Filing with the Attorney General’s Office (Required for Some Units)
• Fundraising Rules of Thumb
• *New* Gift Card Policy
• *New* Banking Guidelines and Best Practices
• PTA Insurance
• Resources
• Questions

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Treasurer 101—Governance

• PTAs are 501(c)(3) Non-Profit Organizations

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• Non-Profit Organizations exist to provide PUBLIC VALUE

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• Board of Directors is a steward of the Mission and Resources
• Provide for Transparency & Accountability
• Practice sound Financial Management
• Resources are held in trust on behalf of the Public

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• Treasurer is a KEY Member of the Executive Committee! Where you spend your limited resources ($, Time, etc.) = your Priorities

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• The Purpose of PTA is in the Universal Bylaws

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Treasurer 101-Governance

• Treasurer’s Key Responsibility is to assure that financial resources are used for the purpose (Public Value) set out in the Bylaws.

Universal Bylaws & Standing Rules

• Universal Bylaws passed in 2018.
• All MNPTA units share the same set of bylaws.
• Units will now submit Standing Rules once and then whenever changes are made.
• Universal Bylaws and Standing Rules Templates can be found here.

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Treasurer 101-Treasurer’s Role

• Three Key Areas:
• Internal Cash Controls
• Allow you to have control over the unit’s finances

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• Financial plan
• Budget

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• Reporting on Financial Activities
• To allow the board to make informed decisions
• Allows for transparency to the membership & public

Treasurer 101 - Must Do

• Read the Universal Bylaws and your unit’s Standing Rules

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• Banking: Have custody of all the funds of the association

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• Budget: Make disbursements as authorized in accordance with the budget adopted by the unit

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• Two Signers on Checks: Have checks or vouchers signed by two authorized persons (the treasurer and one other)
• Separation of cash duties (keeping honest people honest)

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Treasurer-Must Do

• Present a Financial Statement at Meetings:
• Every meeting of the association
• Other times when requested by the executive board
• Make a full report at the meeting at which new officers officially assume their duties (usually the annual meeting)

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• Generally, a Financial Statement Would Include:
• Revenue & Expenses by line item so far that FY
• Budget to Actuals
• Assets (Cash) & Liabilities (if any)

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• Financial Review: Have the accounts examined annually or upon change of officers by an auditor or an auditing committee

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Treasurer-Must Do

• Records:
• Keep a full and accurate account of receipts and expenditures
• The Bylaws state that each unit must keep the following records:

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Filing the 990 Form with the IRS

• Must file 990N, 990EZ or 990 yearly (due 15th day of 5th month after fiscal year end) (ALL MN PTA’s year end June 30th, taxes due Nov 15th)
• 990N = less than $50,000 gross revenue
• 990EZ = between $50,000 and $200,000 gross revenue
• 990 = over $200,000 gross revenue

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• After 3 years of not filing, lose non-profit status

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• PTA’s (not PTO) gain their federal non-profit status through affiliation with MN PTA – independent groups must request EIN number themselves PTA’s must use THEIR OWN EIN number, not the school district’s.

Filing the 990-N Form with the IRS

• IRS Website now has a new easy to use website!
• MNPTA has a training on how to file the 990-N!

Filing the 990 Form with the IRS

• MNPTA provides File990.org as an easy to use service to local units at no cost to you.
• Just go to File990.org and start your filing!
• Contact treasurer@mnpta.org or mnpta@mnpta.org if you have questions!

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Filing with the Attorney General’s Office

• Your unit must file with the Attorney General’s Office one more more of the below criteria are met:
• Collect over $25,000 in non-taxable donations in one fiscal year
• Hire paid staff
• Hire a professional fundraising company (such as a “Fun Run company) to solicit contributions.

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• This DOES NOT include:
• Give MN or organizations that help you sell closing or school swag through their website.

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• Failure to file annually will result in a $50 penalty.

Filing with the Attorney General’s Office

Treasurer- Best Practices

• Multiple people should have access to the bank account
• Multiple people should see bank statements
• Two people count money
• Cash should never be brought to a home.
• No pass through-Any $ going into your bank account must be PTA $
• Receipts, receipts, RECEIPTS!– at events, for fundraisers, etc.

Treasurer-Fundraising Rules of Thumb

• The Purpose of PTA is to advocate for a better education for all children.
• Fundraising is not the primary function of the PTA.

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• For every ONE fundraiser…There should be TWO to THREE events or services.

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• ALWAYS fundraise for a purpose & spend the money within 3 years.

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• Find fundraisers that fit YOUR community.

Treasurer-Best Practices

• We encourage PTAs to provide enrichment programs for all students and families.
• PTAs should provide funds for experiences that enhance or supplement rather than providing for essential educational items.
• Cash should not be used as reimbursement. Checks are preferred.
• PTAs should not pay for salaries (i.e. a paraprofessional, teacher, bus monitor, etc.)

Treasurer-Best Practices

• Sunshine Funds:
• 501(c)(3) organization must not be operated for the benefit of private interests.
• Can benefit a group of individuals rather than a specific person or family

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• Example of an Unacceptable Activity:
• Fundraising for a specific family that lost clothing in a fire.

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• Example of Acceptable Activities:
• Winter Clothing Drive for children attending your school.

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*NEW* Gift Card Policy

• Q: Can a PTA purchase gift cards?

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• A:It is acceptable for a non-profit organization to use gift cards with a reasonable value (National PTA describes reasonable value as $25 or less) to incentivize individuals, to show appreciation, attend an event, take a survey, etc.

*NEW* Gift Card Policy

Best practice should include:

• Individual gift cards should not exceed $25.
• Gift cards should be to a specific vendor (not debit or prepaid cash cards such as Visa or Mastercard).
• Gift cards should not be purchased from alcohol, tobacco, gambling or other establishments that have age restrictions.
• Gift cards should be distributed fairly.
• Protect the gift cards as cash.
• Control their use by keeping a log of the gift cards purchased (see sample).
• Record the purchase and distribution of the card (see sample).

*NEW* Gift Card Policy

*NEW* Banking Guidelines & Best Practices

Banking Best Practices

• All PTAs must have a bank account.
• The bank account must be opened in the name of the PTA and not in the name of an individual.
• Funds should be deposited in a timely manner.
• If a PTA switches banks, they must open the new account prior to closing and obtaining funds from the old account.
• Online accounts can only be opened and managed by the Executive Officers (President, Vice President, Secretary, and Treasurer)
• PTA accounts cannot link to any individual accounts.
• Check your PTA insurance policy to assure that all policies and procedures comply with the policy requirements.

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Online Bank Statement Review

Online Bank Statement Review

• Banking statements may be reviewed online. A non-signer must review a copy of the statement to be signed, either on paper or electronically, and given to the Treasurer.

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*Most insurance companies require this step in order to be eligible for any possible fraud claims.

Online Banking Accounts

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

Debit Cards

• Use of Debit Cards Credit cards are NOT recommended.
• Debit cards should be issued to the PTA unit and not under an individual name.
• Authorized signers should be the same as the signers on the bank account. The debit cards should remain in the possession of the Treasurer.
• Prior to use of the debit card, a funds request should be completed and submitted.

Debit Cards

• Following the purchase, the itemized receipt should be given to the Treasurer and attached to the funds request.
• A change in signer on the checking account will require a change in signer on the debit card and a financial reconciliation shall be performed.
• This also applies when fraud or misuse of the debit card has been discovered.
• If the card is lost, accounts must be reconciled and reviewed by at least 2 people.

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Accepting Payment by Credit Card and Online Payment Collection

• All Minnesota PTA Local Units have access to MemberHub, which allows collection of secure credit card payments with competitive fees.
• Other third-party processing company accounts, such as Stripe, PayPal, etc., must be in the PTA’s name.
• Venmo, Cash App, or other person-to-person companies should not be used.
• Third-party processing company statements must be clear with details and accessible on a real-time basis. The PTA must have immediate access to know who has paid, the purpose of the payments, and the expected cash transfer amount.

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Accepting Payment by Credit Card and Online Payment Collection

• Third-party processing companies must be Certified Compliant with the Payment Card Industry Data Security Standards (PCI DSS).
• Third-party deposits are processed the same as a traditional bank deposit and require the same documentation.
• Associated fees are budgeted as an expense line item and reported on the financial report.
• The Policy also discusses how to handle refunds and disputes.

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PTA Insurance

One company that offers PTA insurance is AIM Companies. Their number is 1-800-876-4044. If you do have insurance, make sure to read and follow the requirements of your insurance policies.

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• The following are a few types of insurance your unit may want to consider: ■ Fidelity Bond Coverage: Fraud or dishonesty coverage.

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• ■ Commercial General Liability Insurance Coverage: Bodily injury, personal injury (false arrest, libel, slander, and other defined injuries), advertising injury, and property damage. Generally, school district liability insurance does not extend to PTAs or their activities.

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• ■ Directors and Officers (D&O) liability Insurance Coverage: Wrongful acts of board of directors and officers in making policy and managing the affairs of the PTA that do not fall under the definition of physical injury. May provide coverage for the defense costs resulting from covered claims.

National PTA Resources

MN PTA Resources

Questions?

• MNPTA.ORG
• Email Rachel at: Treasurer@mnpta.org or Amber at MNPTA@mnpta.org.

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Questions