You’ll find the forms you need for this here – https://jcpta.org/local-unit-officer-resources-forms/.
Step 1: Recruit an internal financial review committee.
Your financial review committee should not include anyone with check signing authority.
Step 2: The Treasurer should provide the committee with the financial records.
Step 3: Explore the records posted after the last audit or financial review.
Check to see if the amount shown on the bank statement corresponds to the starting balance recorded in the checkbook and ledger.
Step 4: Complete a sample test of transactions.
The size of this sample should be based on the size of the association. If mistakes are found, the sample should be broadened to take in more transactions. It may be necessary to review all the transactions of a PTA. You should consider retaining the services of an external auditor if there are numerous errors or concerns regarding accuracy.
- Monthly bank reconciliation conducted by a non-signer on the accounts
- Unexplained reconciling items
- Unusual endorsements on checks
- A match of check endorsements to payees
- Disbursements not supported by invoices or other documentation
- Blank checks secured in a safe place
- Deposit ticket dates timely with dates received by bank
- Timeliness of deposits based on known dates of events
- All invoices paid by check and not cash
- Actual expenses were approved in the budget adopted by the members or noted in the PTA general membership meeting minutes
Step 5: Ensure accurate disbursements.
Make certain that money collected for a specific purpose (special projects, gifts, scholarship funds, council dues, etc.) has been so disbursed. This includes keeping state and national portions of the membership dues separate from other receipts and forwarding to the Colorado PTA office.
Step 6: Check the Treasurer’s reports and annual report for accuracy
Step 7: Collaborate with the Treasurer to correct errors.
If errors or discrepancies are discovered during the financial review, the Treasurer should correct the errors before the Financial Review Form is completed.
Step 8: Prepare the financial review results.
The financial review committee must submit a report signed by the President, Treasurer, and financial review committee members documenting their review and sharing results. The financial committee should select one of four possible conclusions on the Financial Review Form:
- The records were in good order, and all receipts and disbursements were substantiated and in accordance with approved budget.)
- Substantially correct with the following adjustments. Records were in good order, maybe a few missing receipts, or minor discrepancies, or account adjustments. The adjustments/ exceptions should be listed, or noted on a separate report attached to the Financial Review Form.
- Unreconciled differences between treasurer’s records and bank statements were noted during the review. The financial committee should attach a detailed report of the differences noted to the financial review form.
- The treasurer didn’t supply sufficient records for the financial review committee to determine the accuracy of the records. A separate report detailing all missing records, unsubstantiated transactions, and any other exceptions (lack of minutes, lack of approval for expenditures, non-compliance of bylaws, etc.) should be attached to the financial review form.
Step 9. Submit the Financial Review Report to the membership.
The financial review must be officially adopted by the local PTA and must be include an annual Treasurer’s report covering the association’s entire fiscal year .If the report states that additional information and verification is needed, the requested information should be provided by the Treasurer.
Step 10. Contact Jeffco PTA if questions remain.
If the validity of the financial review is questioned, the Jeffco PTA may be contacted for information or assistance.
Email the completed Financial Review form to your AAVP, aavp@jeffcopta.org, or to office@copta.org.
The report should be read by a member of the Financial Review Committee or Secretary at the first general membership meeting of the new school year.