| Go to bottom of page | |
| Click on a question below to link to its respective answer. | |
| Questions — | |
| Q: | Is
the PTA going to develop financial software? Can a PTA use Quicken, or
a similar software product? |
| Q: | Should
a local unit record, in its financial books, the state and national membership
dues it collects then sends to the State PTA? |
| Q: | Do
all the expenditures need to be read off at every board meeting or can
they just be listed in the monthly treasurer's report? |
| Q: | The
president gave the treasurer a bill for an expense that was not part of
the annual budget and was not approved by the board of directors. The
treasurer refused to pay it. What should be done? |
| Q: | If
the school has an activity not sponsored by the PTA, can the PTA collect
the funds and write checks for the activity on behalf of the school? |
| Q: | The
president wants the treasurer to sign a blank check. Should this ever
be done? |
| Q: | Can the treasurer write an authorized check to herself? |
| Q: | What
steps can be taken if the past treasurer will not give up the past records?
|
| Q: | What
should a PTA do about a NSF (non-sufficient funds) check? |
| Q: | How
are the PTA books adjusted to reflect an NSF check that cannot be collected?
|
| Q: | Is
it acceptable for PTA to refuse checks from people who have past NSF checks
that they have not resolved? |
| Return to top | |
 |
|
| Questions & Answers — | |
| Q: | Is the PTA going to develop financial software? Can a PTA use Quicken, or a similar software product? |
| A: | With
the numerous software products already developed and on the market, it
would not be cost effective for PTA to develop special software. It is
perfectly acceptable for a PTA to utilize one of these products and track
their finances electronically. Remember to print out a hard copy of the monthly treasurer's report and affix it in the permanent secretary's minute book. |
| Return to top | |
| Q: | Should a local unit record, in its financial books, the state and national membership dues it collects then sends to the State PTA? |
| A: | Yes. This money is shown as "Income not belonging to the unit" and "Disbursements not belonging to the unit." |
| Return to top | |
| Q: | Do all the expenditures need to be read off at every board meeting or can they just be listed in the monthly treasurer's report? |
| A: | The treasurer should provide a written treasurer's report at every executive board meeting with the expenditures listed. Board members should be given an opportunity to ask questions concerning any expenditure. It is the responsibility of the entire executive board to ensure that proper financial procedures are being followed. |
| Return to top | |
| Q: | The president gave the treasurer a bill for an expense that was not part of the annual budget and was not approved by the board of directors. The treasurer refused to pay it. What should be done? |
| A: | The treasurer (or any member of the board) is not authorized to spend funds in an unapproved manner. Approval is gained through a) the item being on the approved budget; b) action by the board of directors; or, in the case of a very large or significant expenditure; c) action by the membership. This issue should be brought before the board at the earliest opportunity. Based on the circumstances, the PTA may have a legal obligation to pay the bill. Consult with your council. |
| Return to top | |
| Q: | If the school has an activity not sponsored by the PTA, can the PTA collect the funds and write checks for the activity on behalf of the school? |
| A: | NO. This is called co-mingling of funds and is illegal. The PTA can help facilitate the activity but all school funds must be deposited into the school account. NOTE: All income must be reported on an annual financial report and if required, must also be reported on tax filings. Therefore, if school funds were to be deposited into the PTA account, those funds would have to be reported as income. |
| Return to top | |
| Q: | The president wants the treasurer to sign a blank check. Should this ever be done? |
| A: | No. This is an important rule: Never sign a blank check. If necessary, call the vendor and find out the price before going to purchase the product. |
| Return to top | |
| Q: | Can the treasurer write an authorized check to herself? |
| A: | Yes, she can write the check to herself, but it would be prudent that she not sign her own check. All PTAs are required to have at least three elected check signers. |
| Return to top | |
| Q: | What steps can be taken if the past treasurer will not give up the past records? |
| A: | The president should send a certified letter, return receipt requested, that all treasurer materials be returned to the PTA. Request that the person return the materials to the school office by a specific date, or arrange to have two executive board officers to pick up the records at a specific time and date. Ask the person to leave the materials by the front door if she doesn't want any contact with the PTA officers. Talk to the principal to see if he can facilitate the process. Call the bank and freeze the account, and if records are not returned, close that account and open a new one. If mismanagement of funds is suspected, conduct an audit using past executive board and/or committee records. Request past statements from bank. Contact council or district for assistance. |
| Return to top | |
| Q: | What should a PTA do about a NSF (non-sufficient funds) check? |
| A: | Call the writer of the check, explain that the check was returned by the PTA's bank and provide the reason given by the bank. Remember to state that the writer is now liable for whatever fee the bank has charged for the transaction. |
| Return to top | |
| Q: | How are the PTA books adjusted to reflect a NSF check that cannot be collected? |
| A: | When a check has been returned by the bank, note it in the ledger and checkbook register along with the charges levied by the bank. Treat the charge as a disbursement. |
| Return to top | |
| Q: | Is it acceptable for PTA to refuse checks from people who have past NSF checks that they have not resolved? |
| A: | Yes. You do not have to accept another check from that person. Demand payment in cash. |