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Audit
Questions & Answers
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| Click on a question below to link to its respective answer. | |
| Questions — | |
| Q: |
When is an audit required? |
| Q:
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What is an audit committee? |
| Q: |
Who should be on an audit committee? |
| Q: |
Can
the audit committee be composed of any of the executive board members? |
| Q: |
Can PTA hire an outside auditor to provide audit services? |
| Q: |
How often should the books be audited? |
| Q: |
What can be done if the treasurer refuses to turn over the
books and records for audit or inspection? |
| Q: | Are the recommendations in the audit report included in the minutes? |
| Q: |
If there are problems with the audit, is the report still adopted by the association? |
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| Questions & Answers — | |
| Q: | When is an audit reqired? |
| A: | An audit is required at the end of each fiscal year or any time authorized check signers change. |
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| Q: | What is an audit committee? |
| A: | It is a group of members who review and examine the books and records of the PTA to assure the membership that the funds have been properly handled and administered. |
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| Q: | Who should be on an audit committee? |
| A: | It should be comprised of members who were not on the bank signature card for the period of time being audited. |
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| Q: | Can the audit committee be composed of any of the executive board members? |
| A: |
Yes. The audit committee may be composed of any executive board member except any check signer. |
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| Q: | Can PTA hire an outside auditor to provide audit services? |
| A: | Yes. The PTA executive board must make full disclosure to the membership of the outside auditor being hired and the amount paid must be fair market value for the services provided. |
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| Q: | How often should the books be audited? |
| A: | An audit is required annually, at the close of the fiscal year. It is also recommended that a mid-year audit be conducted. An audit should also be conducted anytime someone suspects that anything improper has occurred with the books or finances. Also, anytime a new person becomes treasurer (other than at the beginning of each fiscal year), an audit should be conducted. |
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| Q: | What can be done if the treasurer refuses to turn over the books and records for audit or inspection? |
| A: |
The books/records are the property of the PTA. The treasurer is only the custodian of them. Is there something in that volunteers life that may be preventing the return of the books (i.e., a family emergency or tragedy)? Do you suspect something improper may have occurred with the PTAs funds? (By his/her behavior, the treasurer is certainly creating the impression that something improper may have occurred.) If, after a reasonable number of attempts, the treasurer refuses to give the board those records, call the Council PTA for assistance. |
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| Q: | Are the recommendations in the audit report included in the minutes? |
| A: |
Yes. Recommendations are a part of the audit report and attached to the minutes. Upon adoption at an association meeting, the audit committee chairman reads only the statement, "The audit committee has examined the books and find them . . . "correct," "substantially correct," " incomplete," or " incorrect." Do not make any implicit or explicit statements regarding any person if problems are detected by the auditor(s). If mismanagement of funds is suspected, contact the council or district immediately for assistance. |
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If there are problems with the audit, is the report still adopted by the association? |
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| A: | Yes. The audit report tells the status of the books. If the financial records are incorrect, then take steps to correct any problems. If the audit is done incorrectly, then do another audit. |
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