PTA Checking Account
The PTA should maintain one checking account with one checkbook for PTA funds.
The checking account may be an interest-bearing account.
The Employer Identification Number (EIN) issued by the IRS must be given to the bank and listed on the PTA checking account. The EIN assignment letter should be part of the PTA’s permanent records.
An individual’s social security number should never be used on a PTA checking account except to verify the identity of a signer.
When the PTA updates the signature card, the EIN should be verified. If there is any discrepancy, contact the Utah PTA office. Utah PTA will furnish a letter, if needed, to the bank to make necessary changes in the EIN.
Two signatures are required on all PTA checks. There must be at least three people authorized to sign on the checking account: the treasurer, the president, and generally the secretary and/or the president-elect. These people should not be related by blood or marriage, or reside in the same household. If the treasurer is related to one of the other officers, the treasurer is always on the signature card and another officer, unrelated, would be added. If the president and treasurer are related, the president should not be on the signature card but should sign all Check Request Forms before the treasurer issues a check.
Banking services should be reviewed every fiscal year. It is permissible for a PTA to bank with a traditional bank or a credit union. Services vary at each institution and factors involved in the decision where to bank should include the proximity to the school, the bank’s hours, after hours deposit policy, and banking fees. The decision to move from one institution to another should be a board decision and documented in the minutes of the board meeting.
In recent years, banking services have changed. Bank accounts are being accessed by debit cards as well as via the internet. Because of the volunteer nature of PTA, the turnover of officers, and the necessity of maintaining an accurate paper trail, PTAs should not use debit cards and limit internet banking services to “read only” options only.
A Savings Account
A PTA is permitted to have a savings account for its reserve funds. If the balance in the savings account becomes too large, it may become necessary to look closely at the purpose of the PTA’s fundraising.
Bank Statements
The monthly bank statement should be mailed to the PTA at the school address. When the bank statement arrives, a designated board member (not the president, treasurer, or secretary) should immediately review it, initial it, and then give it to the president to review and initial. Then it will be given to the treasurer to reconcile.
If statements are online only, have a non-signer on the board go online and look at the statement, then let the president know it is okay. Then the president can look, followed by the treasurer so it can be reconciled.
The bank statement must be reconciled by the treasurer in a timely manner. A sample form is attached to the bottom of this page and outlines the reconciliation process. The bank statement usually has a form on the back that can be used for this purpose. Those PTAs using accounting programs to maintain their records should utilize the reconciliation function of the program. Once the treasurer has reconciled the bank statement, this report is then taken to the board meetings for the board to approve.
Monthly Bank Reconciliation
The treasurer should reconcile the monthly bank statement and compare with the check stub/register balance promptly to ensure that bank and financial records are correct. Identify differences, note outstanding checks and determine the adjusted bank balance at the end of the month. This establishes the funds available against which checks may be written.
After reconciliation, file all supporting receipts, details of deposits, canceled checks in numerical order and duplicate deposit slips. Make notations in the check register of all cleared checks, note any uncashed checks, and indicate that the account was reconciled.
Learn how to change the signature card at the bank Here