YEAR-END AUDITS ARE DUE!
Per unit and council bylaws, audits must be completed typically on a semi-annual basis. Audits are not optional. An audit is a formal examination of the financial books and records of the financial officers of the PTA and serves to certify that receipts and expenditures, as authorized in the minutes, are in conformity with Bylaws for Local PTA/PTSA Units, Standing Rules, and budget limitations.
WHAT TO DO WHEN YOUR UNIT OR COUNCIL DOES NOT HAVE AN AUDITOR
If your unit or council does not have an auditor, the Executive Board may do the following:
- Appoint an individual or committee among board members or the membership-at-large to complete the audit. NOTE: The president, treasurer, financial secretary, secretary, or committee chairmen handling funds may not audit the finances.
- Hire a professional. If this is the case, please remember (1) the expense of hiring this person must be a line item on your budget and must be approved by the Association and (2) the professional must be made aware of the PTA procedures that she or he must follow to conduct the audit. Provide the professional with Toolkit sections pertaining to audit, the Audit Report form, the Audit Checklist and all materials that will be needed for the audit. She or he must be told that this audit is NOT conducted under the normal accepted accounting procedures by the American Institute of Certified Public Accountants (AICPA). This is an internal audit conducted under PTA guidelines and procedures.
- IMPORTANT: In either case, the auditor should reconcile membership per capita. This is an item that is on the Audit Checklist. Membership dues that are deposited should EQUAL the amount of dues being forwarded through channels.
WHAT TO DO AFTER YOUR AUDIT IS COMPLETED
- Attach any recommendations to the report. Any “No” responses on the Audit Checklist should be addressed on this Recommendations Report.
- Present the Audit Report with Recommendations to the Executive Board, and attach the Report, Recommendations and Audit Checklist to the Executive Board minutes. Be sure to make copies of these three items
- The auditor (or the President if a professional was hired) must present the audit report to the association at an Association Meeting by stating, "The audit committee has/I have examined the records of the treasurer of _____ PTA and find them to [whatever box is checked on the Audit Report form].”
- Then formally adopt the Audit Report with a motion: "I move that the audit report be adopted." Any PTA member may make a motion to adopt the Audit Report. The Secretary should record this action in the association minutes and attach a signed copy of the Audit Report to the association minutes.
- Forward the following items to the next level PTA (unit to Council unless out-of-Council, then it would be to District, and Council to District):
3. Recommendations Report
(NOTE: Council Auditors, it is your responsibility to ensure that units have submitted ALL three items to you before forwarding the completed audit to the District.)
QUESTIONS?
Units, please direct all questions to your Council. If out-of-council, then direct questions to the District. If you do not know to which Council you belong, please contact the Ninth District PTA office at ninthdistrictpta@sdcoe.net.
