ARTICLE VIII - DUTIES OF OFFICERS

Section 3. The treasurer shall:

a. Have custody of all the funds of the association;

b. Keep a full and accurate account of receipts and expenditures;

c. Make disbursements as authorized by the president, executive board, or association

in accordance with the budget adopted by the association;

d. Have checks or vouchers signed by two authorized persons (the treasurer and one

other);

e. Present a financial statement at every meeting of the association and at other times

when requested by the executive board;

f. Make a full report at the meeting at which new officers officially assume their duties

(usually the annual meeting);

g. Be responsible for the maintenance of such books of account and records as conform

to the requirements of Article V, Section 5 of these bylaws and State Bylaws, Article

VII, Section 5;

h. Have the accounts examined annually or upon change of officers by an auditor or an

auditing committee of not fewer than three members, who, satisfied that the

treasurer’s annual report is correct, shall sign a statement of that fact at the end of

the report; and

i. Submit the books annually for an audit by an auditing committee selected by the

executive board before the meeting at which new officers assume duties.

Your PTA relies on you to ensure that appropriate financial records are kept, a budget is established and followed and controls are in place to prevent theft or fraud. Responsibilities include:

• Keeping accurate records and submitting written financial statements for meetings

• Chairing the Budget Committee, which prepares and monitors the annual budget

• Ensuring an audit, financial review or compilation is done in accordance with the bylaws

• Preparing an annual report to be used to review your PTA financial records

• Filing your PTA's 990 report to the IRS on time—if your unit is a 501(c)(3)

• Submitting state-level reports and filings as required

• Overseeing proper handling of money, such as ensuring money is collected, counted, recorded and deposited promptly and appropriately

• Ensuring financial checks and balances are in place at all times

Great treasurers often have skills or experience with basic financial management. Training and tools are available from your state PTA and National PTA.

A PTA Treasurer's First 30 Days

If you take each of these steps in (roughly) your first month in office, you'll be off to a fantastic start!

#1: Gather.

There are several items you'll want to put your hands on right away to be sure important records aren't lost in the transition. Collaborate with your PTA president and past officers to gather these records. If any records are missing, contact your State PTA for guidance. Records to gather include:

• Your PTA Bylaws (and any accompanying standing rules) to find important information about how finances are to be handled and how funds are to be disbursed.

• Current year's budget to guide any immediate expenditures, as well as prior year budgets, to help you get ready to draft a budget for next year.

• Receipt book to acknowledge money received.

• Checkbook to disburse funds as authorized by the current year's budget and bylaws.

• Treasurer's account book in which to keep the PTA's financial records. If this is an electronic file or system, schedule time to be trained on how it works.

• IRS tax information, including your unit's IRS determination letter of tax-exempt and/or application (if you have it), federal employer identification number (EIN), and copies of filed Form 990 or other required tax forms. You should also have information regarding your state tax status, including sales tax.

• The most recent audit report and recommendations. If an audit did not occur after the latest transition of officers, make sure to get one done. You will want to start fresh with a new set of books. Be sure the previous accounts are "closed" or "zeroed" out and audited.

• Bank statements and electronic access. Gain access to and then change the usernames and passwords for all accounts - for many units, this includes both a checking and a savings or reserve account.

#2: Protect.

Take these few important steps right away to safeguard your PTA's nonprofit status and protect your local PTA from theft, fraud and liability.

• Make sure IRS Form 990 was filed properly for the most recent year. See Your 501(c)(3) Status and/or the 501(c)(3) Basics for Local PTAs eLearning Course for more information.

• Change the signatures on your PTA's bank accounts. You will want to be sure previous officers no longer have access to your accounts. A transition letter from the outgoing treasurer or president to the bank may be necessary to enact this change. Also, make sure the bank has your PTA's EIN on file, rather than an individual's social security number.

• Ask your state PTA what is required for insurance and when the payment is due. Insurance can protect your board members, events, and PTA property.

#3: Prepare Your Team.

With your PTA president, set and communicate the fiduciary standards by which your PTA team will be bound.

• Establish or update procedures for handling money, getting reimbursed, and applying for grants.

• Educate your board about how to read the budget and encourage them to ask good questions.

• Seek other PTA members with experience writing grants, assisting with sponsorship and helping to raise funds.

To Exercise the Proper Duty of Care:

The duty of care generally requires that directors discharge their duties in good faith, in a manner the director reasonably believes to be in the best interests of the nonprofit corporation, and with the care an ordinarily prudent person in a like position would exercise under similar circumstances. 

To Exercise the Duty of Loyalty:

Directors have an absolute duty of complete, undivided loyalty to the organization. This means that directors should avoid using their position or the nonprofit’s assets in a way which would result in monetary gain for them or a member of their family. A director should put the best interests of the organization first and avoid engaging in transactions with the organization from which the director will benefit. 

To Exercise the Duty of Obedience:

Directors have a duty to follow the nonprofit’s governing documents, to carry out the organization’s mission, and to ensure that funds are used for lawful purposes. Additionally, directors must comply with state and federal laws that relate to the organization and the way in which it conducts its business.