Treasurer

Lisa Anderson

E-mail: lisa@utahpta.org
Phone: 801-261-3100

An Annual Financial Reconciliation (AFR) of the PTA’s books is required by the bylaws (Article VII, Section 6). The AFR is to be performed either by an AFR committee of at least three members of the PTA or by an auditor. An AFR committee would perform an “internal annual financial reconciliation,” following Utah PTA’s recommended AFR procedure checklist. An outside auditor is not required to perform an audit in accordance with generally accepted auditing standards. “Agreed-upon procedures” (based on the recommended internal audit procedure) are sufficient to fulfill the requirement. An auditor who is a member of the PTA could perform an “internal AFR” such as would be performed by an AFR committee.

Use the documents below to learn more information on the AFR requirement.

All PTAs in Utah are required to make an annual filing with the IRS. The determination of which form is required is based on the Gross Receipts Test (see details below).

PTAs in Utah have a fiscal year of July 1 - June 30. 

* If you are filing a 990N, Utah PTA needs a copy of the confirmation email received.  Please forward that to your Council or Region BEFORE September 1, 2012.

* If you are filing a 990EZ, Utah PTA needs it to be sent to the Utah PTA office (DO NOT FILE DIRECTLY WITH THE IRS) by October 1, 2012.

IRS Forms and Websites:

• Form 990N Filing Site
• Form 990EZ
• Schedule A
• Schedule C
• Schedule G  
• Schedule O

Use the documents and forms below to get more information on IRS filings.

In your fundraising efforts, you may be requested by a company to have proof of your tax-exempt status.

The IRS issues a “determination letter” to organizations that have qualified for tax-exempt status. Because Utah PTA, as a central organization, determines which units are included as subordinates under its group exemption ruling, anyone seeking to verify that a PTA in Utah is tax-exempt can contact the Utah PTA treasurer.

Utah PTA can provide a letter about the group ruling and a copy of its determination letter from the IRS for potential donors, sponsors, or grantors. According to IRS Publication 4573, “donors may rely upon central organization verification with respect to deductibility of contributions to subordinates covered in a section 501(c)(3) group exemption ruling.”

Utah PTA will issue your PTA this letter if your unit is in good standing. This includes having paid membership dues this current fiscal year, have completed the required 990 tax filing and have current bylaws.

If you need a letter, send an email to lisa@utahpta.org to request a letter and copy of supporting documentation. Make sure you include the name of your PTA, city you are located in and the name and address to whom the letter and documentation should be sent.

Keep a copy of the letter and supporting documentation until the end of the current fiscal year. It will be valid during the entire fiscal year.

Banks are strictly following guidelines when setting up a new bank account or changing signers.  When you are changing the signers on the bank statement, you should take

* All current signers and all new signers to the bank with photo ID
* A copy of your red stamped bylaws
* Minutes of the meeting where the new board was elected
* You may also take a copy of one the letters below edited with your PTA information

Banks are not trying to hinder the work of PTA, they are trying to protect the money that is in the account for your membership.

The budget is your financial road map for the year. The budgeting process should be taken seriously. However, it does not need to be complicated.

Information about the budgeting process can be found in the "Budgeting Process" document (below). See "Sample Budget" for the proposed budget of Example Elementary PTA; this is the budget to be presented at Back-to-School Night to the general membership for their approval. "Sample Budget Detail" is a more detailed version for the use of the Executive Committee as they oversee the programs and activities for the year; having a more general budget approved by the membership will allow the Committee some flexibility as the year progresses.

Many PTAs are asking if they can take credit cards for membership and for fundraising items.  Utah PTA requires the following guidelines to be met:

1. Check with your Region Director to find out if your school district has a policy for or against PTAs using credit cards in their school.  We must always follow district guidelines as we are guests in their schools.

2. Local PTAs should NOT start accepting credit cards unless there are at least three check signers and Utah PTA strongly suggest that they are bonded board members. (Bonding can be purchased for $90 a year and will cover any board member who touches money, up to $10,000 through AIM Insurance, a Sponsor of Utah PTA)

3. Local PTAs must be following proper procedures as a board with the following:

a. Holding monthly board meetings

b. Giving a verbal treasurer's report at each board meeting

c. Monthly reconciliation of bank statements

d. Minutes taken at every board meeting and printed out for the next meeting

e. All financial guidelines on page 23 of the Treasurer's Handbook must be adhered to

IF all of these guidelines are met, then the individual boards can start exploring the use of accepting credit cards for membership or fundraising purposes.  It must be made as a motion at a board meeting where a quorum is present, it must be voted on and it must be recorded in the minutes.

The only resource Utah PTA will recommend is for locals to go to http://www.learnjbf.com/takepaymentsindex.php.  Just Between Friends has been a partner with National PTA for membership and they have now established taking credit card payments for memberships and setting up a store for their individual PTA.

Many PTSAs ask if they can give away a scholarship to a student upon graduation from high school.  This is a legitimate PTSA expense and should be allocated in your budget.  It should be given for college or trade school for a student to continue their education.

There should be clear guidelines for the qualifications for the scholarship.  There also should be clear guidelines on how the money is to be disbursed and/or held, if necessary due to delay in schooling.  This should be decided on at the beginning of the school year and advertised well in advance so that all students have the opportunity to apply.

The scholarship MUST include:
* The student(s) MUST be a member of your PTSA
* The money MUST be given to the school they are to attend under their name to be used for tuition, books, supplies, housing, etc.

The scholarship COULD include components such as:
* Perform a certain number of service hours
* Serve on your local PTSA student board
* Help plan/run PTSA events
* Include an essay question about their experiences and memories of PTA through the years

If you have questions how to start the scholarship for your PTSA, contact your Council President or Region Director for help.

The sample forms available for download below are "tools" and can be altered to meet the needs of the PTA unit. The specific format of this type of form doesn't matter as much as the fact that some type of form is being used. Those PTAs using a computer program for record-keeping should utilize the capabilities of the program being used, especially for preparing reports.

PTAs can purchase insurance from any insurance company they choose. Utah PTA Sponsor AIM (Association Insurance Management), which specializes in PTAs, can be contacted at 800-876-4044 or aim@aim-companies.com, or visit their website: http://www.aim-companies.com.

• General Liability. This insurance provides coverage for a PTA’s legal liability arising from injury or property damage resulting from the PTA’s activities and operations. Such coverage may be purchased either on a continuous, year-round, comprehensive coverage basis, or on a one-time basis for special events (such as carnivals). While some PTA events may be covered by the school district’s general liability policy, coverage should not be assumed to be in place. PTA offi cers need to talk to their principal and to district personnel over risk management. Some districts have certain requirements that must be met for coverage, such as submitting a list of volunteers or working only with vendors from an approved list. In many instances, the district does not cover PTA-sponsored events at all.
• Fidelity Bonding. This type of policy covers losses through fraudulent or dishonest acts committed by employees, offi cers, or volunteers. If someone entrusted with the PTA’s money embezzles that money, this policy will replace those missing funds. 
• Directors and Officers (D&O) Liability. This insurance provides protection against claims arising out of the wrongful acts of directors and officers, such as discrimination and breach of contract. The Volunteer Protection Act of 1997 provides some reduction of risk to nonprofit organizations, including PTAs, but the laws have signifi cant limitations. (For more information on the Volunteer Protection Act, see www.eriskcenter.org/erisk.htm?pid=126.)
• Property. This type of policy will replace PTA property damaged or lost due to theft or natural hazard. Most local units do not own personal property, but those that do should consider this coverage. This type of policy would also protect fundraising merchandise while it is in your possession.
• In making decisions about risk management, two variables should be considered: the frequency at which a loss can be expected to occur, and the severity of the loss that can be expected when one does occur. When the risk has a high frequency of occurrence, steps should be taken to reduce the risk. This risk reduction might take the form of cash counting policies that would prevent one person from having sole access to fundraising money. But when the risk has a low frequency of occurrence but a high severity of loss, such as the death of child on a carnival ride, transfer of the risk is likely the best approach. In other words, this is the type of situation in which the PTA might consider covering the risk through the purchase of an insurance policy.

There are various forms that treasurers must submit to the Utah PTA, Councils, and Regions throughout the year. Follow the Timeline for Treasurers (available below) to help you in your duties.

IMPORTANT NOTE: The forms available below, which are also found in the 2012-2013 Utah PTA Handbook, are the most up-to-date forms available. Please discard all previous versions.

 

The primary purpose of a PTA is to raise funds for PTA programs within your own school community. Our budgets are based on the fundraising efforts. Most school districts have rules and regulations on what kind of fundraisers can be done as well as the number of fundraisers that can be run each year. As PTAs we must follow the guidelines that have been set.

 

We know of terrible accidents involving students and families within our own schools. These events cause us great heartache and sorrow and many times we want to get to work to see that those families will also not suffer financially as well as emotionally or physically. We know that PTAs can accomplish any goal when there is a worthy cause. This is why many groups approach PTAs to help in those fundraising effots.

 

There are some financial ramifications that may occur if PTAs do fundraising for individuals or families within their own community.

 

1. Budgets are set and approved by the membership at the beginning of the year. They can be amended at any time during the year but by running a fundraiser of this sort through the PTA, your gross receipts may rise above the IRS threshold and your PTA may be required to complete the 990EZ filing.

 

2. By doing one of these type of fundraisers, PTA will be looked at as a fundraising organization rather than an organization that raises funds to exist to run PTA programs.

 

3. As a 501(c)3 organization, we are held to IRS regulations. The IRS states " No part of the net earnings of a section 501(c)(3) organization may inure to the benefit of any private shareholder or individual. A private shareholder or individual is a person having a personal and private interest in the activities of the organization." Some interpret that last statement as that PTAs should not donate to individuals or families within their community. I always train that there is black and white, wrong and right in the sight of the IRS but then there is a gray area. This is a gray area. I train that it is best to stay away from the gray area.

 

We have wonderful organizations that exist that we even partner with from time to time with like goals and values. Make-A-Wish and Sub-For-Santa are just two. School communities can rally together to do this type of work but it would be better for PTAs to let community organizations run these events with parents from the PTA being involved in letting the school community know of those efforts in newsletters and facebook pages.

 

Can our PTA have a savings account and how much can we have in it?

Many financial institutions require a minimum amount in a savings account to hold a checking account at their institution.  This is perfectly acceptable.  The amount and any interest should be shown as part of the budget on a separate line.

Any amount is acceptable to have in the account and if a PTA would like to build up their reserve, in case of a bad fundraising year, the reserve can be put into a savings account and used the next year.

There is no need for a PTA to have more than one fiscal year’s budget in their reserve and if that is starting to occur, fundraising efforts should be scaled back.  There is no reason to continue to raise money just to raise money.  PTAs raise funds to exist; PTAs do not exist to raise funds.

The other risk in having so much money is that your school will start to request more and more money from the PTA.  PTA funds are to be primarily used for PTA programs.  There are opportunities, however, for a PTA to grant money to a school, but again, this is not the main purpose for the PTA.  If you have enough money in your accounts to run your PTA programs, then don’t try to continue to raise money.

PTAs CAN use their wonderful volunteer efforts to help raise money for the school’s needs, but other than providing our amazing and powerful manpower efforts, the money should not ever be “run through” the PTA accounts.

Please see the Utah PTA Treasurer Handbook for more details.

Can our PTA do a Raffle?

The definition of a raffle is: a lottery in which each participant buys a chance or chances to win a prize.  Chances are considered gambling in the state of Utah so the answer is No, your PTA can not hold a raffle.

PTAs can hold drawings for prizes.  One example includes when a parent purchases a PTA membership, their name goes into a drawing.  This means that they have purchased the rights to be a member and get discounts from PTA partners and such.   Another example would be if there is a purchase involved and they receive something for that purchase, such as xx.xx amount in carnival tickets purchased; their name goes into a drawing.

PTAs need to stay as far away from the gray area as possible.  We do not want a PTA to lose their tax-exempt status nor good standing with the Division of Consumer Protection for the state of Utah by holding a “raffle”.  

If you have had a lot of items donated for a carnival or other event, consider doing a silent auction.  This also brings in a good deal of money for PTAs that have participated in them.

Please see the Utah PTA Treasurer Handbook for more details.

Here we are going to list several companies that provide fundraising for your PTA.  Utah PTA does not endorse any of these companies and we urge you to research them out before making a committment to use them.  Remember that decisions on fundraisers are BOARD DECISIONS!
 

Fundraising With Hearts

Fundraise with love, with heirloom quality glass hearts.  Hand made by a master glass artist in Laguna Beach, CA.    Custom 2-color combinations are available to match your schools colors.  Visit us at  www.fundraisingwithhearts.com

Hillel Rzepka, Master Glass Artist, 714-767-2897
Joshua Kovalscik, Fundraising Representative, 714-269-0924, Scik12@yahoo.com

Jumbies

What are Jumbies?  Jumbled baby animals!  Cute, soft plush stuffed animals with names like “Dingbat” and “Pigbit” these cute animals are sure to win your heart. Learn more about these critters at www.jumbies.com 714-879-2300

info@jumbieland.com

www.facebook.com/jumbies

www.twitter.com/jumbies

Cardraising

Holiday Card Fundraising. Endless options to customize your card exactly how you want it.  Pick a design, format and color.  Voila.  Cardraising Inc., will supply your school with items to help promote your fundraising event. Learn more at www.cardraising.com

800-451-4004 x113

Snail’s Pace 

Eco-Friendly Fundraising.  Beautiful greeting cards, wrapping paper, gift bags and scrapbook paper just to name a few.  Each item is made with soy-based inks on paper that is made from 100% post-consumer fiber.  A wonderful alternative with artistic beauty. Learn more at www.snailspacepaper.com

Vicki Gehlhausen, Fundraising Manager, 1-800-334-1696 ext.  8040, help@snailspacepaper.com

~Retail Companies~

DollarDays

Online supplier of over 200,000+ wholesale products.  Free shipping, no minimum purchase required on products with a personal account manager ready to help you and your needs. Learn more at www.dollardays.com

Michael Stringer, VP of Business Development, 866-969-7742, mstringer@dollardays.com

Blue 84 Spirit

Promote your school spirit with customized t-shirts.  We also provide posters to help promote your school spirit. Learn more at www.blue84spirit.com

Blair Stelter, Spirit Wear Coordinator, 1-888-458-3025, blairs@blue84.com  

African American Expressions

Calendars, Greeting Cards, Fundraising & Fine Gifts.  Check us out at www.black-gifts.com

Ron Gilmore, Sales Manager, 916-424-5000 ext, 107, ron@black-gifts.com

Got Milk? Magic Milk Flavoring Straws

Learn how to increase your calcium and earn redemption points for your school.  Check us out at www.milk4edu.org

1-888-353-3664

Eat To Win Games

Fun nutritional board games that teach kids the value of calories, nutrition and having a fun time in the process. Learn more at www.eattowingame.com

Jammi Roscoe, Chief Executive Director, 248-224-8011, jroscoe@eattowingame.com

~Company Services~

Leanlocal

A Winning revenue solution for your community, schools and businesses.  Learn more at www.leanlocal.com

Contact: Sales, 386-586-5571

More Prepared

Emergency Survival Kits and Supplies.  Visit us at www.moreprepared.com

Jose Hernandez, 888-543-7548, jose@moreprepared.com

DeLiceful of Long Island

A full service company that is dedicated to the detection and removal of head lice.  Learn more at www.deliceful.com

Angelica Hauppauge, 631-724-7444, info@deliceful.com

Our School Pages

Customize your school on a website created for you!  Visit us at http://ourschoolpages.com. 

info@ourschoolpages.com 1-866-616-3247

Lyon Workspace Products

Steel Locker Solutions, America’s leading manufacturer of lockers and accessories for schools, hospitals, institutions and industry.

Check us out at www.lyonworkspace.com

1-800-323-0082