The treasurer, elected by the members, is the legally responsible, authorized custodian of the funds of the PTA unit. However, the president, who bears full responsibility for the total affairs of the PTA unit, must work closely with the treasurer at all times and have a complete understanding of all financial matters.
Frequent, effective communication between the treasurer and the president is vital. In addition, as the president fulfills his or her role in the PTA’s money matters, the president and treasurer create a system of checks and balances that help ensure that everything is being handled properly.
Here are a few of the financial responsibilities the president should fulfill (in coordination with the Treasurer):
- Fiduciary responsibility. All members of the board of directors have the same fiduciary responsibility (mentioned earlier in this handbook), part of which is to provide financial oversight. The president, as well as the other board members, should be studying the reports of the treasurer, requesting additional information, and asking questions of the treasurer on a regular basis. The treasurer should not take offense to such scrutiny. The treasurer, in fact, should encourage a thorough examination of his records so that allegations of mishandling cannot be made at a later date.
- Budgeting process. The president should serve as a member of the budget committee (see section on budgeting in this handbook). The president should also study and understand the budget-to-actual analysis so appropriate budget amendments can be proposed as needed.
- Internal controls. The president plays a vital role in maintaining an adequate internal control system. Among other things, the president is the preferred second signer on all checks, approves all Check Request Forms, and reviews the monthly bank statement before giving it to the treasurer. The president should also be available and willing to count money and make deposits at the bank as needed.
- Protection of tax-exempt status. The president should understand and help ensure compliance with the IRS’s requirements of 501(c)(3) organizations, including rules about corporate sponsorship.
- Embezzlement or mismanagement of funds. In the unfortunate event that embezzlement or mismanagement is suspected (or known), the president must follow established guidelines, including holding a hearing with the person involved. The president also bears a great responsibility to ensure that no public or private statements are made about a suspected problem.