Wake County PTA Council End of Year Financial

Wake County PTA Council End of Year Financial Bootcamp Treasury and Finance Workshop

End of Year Financial Bootcamp Welcome and thanks for joining us! • Out of respect for other attendees, please set phones to vibrate. • We will not have any official breaks in our agenda today. Feel free to take breaks as needed or to step out of the room if necessary. • Today’s session is an expansion of a previously recorded webinar housed at www. ncpta. org. This archived webinar is one hour in length and may be referred to for more information if needed. However, today’s workshop contains updates that are NOT included in that recorded webinar.

End of Year Financial Bootcamp Handling Questions at Today’s Workshop – We will do our best to handle questions along the way, but please recognize that we have a lot of material to cover and may have to defer some questions to the end of the workshop. We will try to leave time for questions, up to our 11: 30 am stop time. – We MUST leave this room at 11: 30 due to facilities reservation. – If you still have questions after the end of the session today, please don’t hesitate to submit questions to us via email (contact information at end of slide deck), and we’ll get back to you as quickly as possible.

Today’s Workshop Objectives • Understand what support resources are available to guide you in financial matters. • Understand how to close out your books and records for the year. • Understand the importance of financial risk mitigation for your PTA unit • Financial review: – Understand when a financial review is required and the types of reviews – Understand who may perform the review – Understand the database entry/confirmation of completion to NCPTA for your annual review • IRS Form 990: – Understand the three different types of IRS Form 990 s – Understand how your Board should stay informed of the 990 process – Understand database entry/confirmation of completion to NCPTA • Understand “Good Standing Requirements” for your unit • Encourage attendance at future training sessions

Fail Treasury and Finance Workshop Fail Resources to Guide Your Unit in making Financial Presented by decisions Sarah Martin, NCPTA Board of Directors Success

End of Year Financial Bootcamp PTA Leader Resources from NCPTA • NCPTA leader resources available online at www. ncpta. org • Click on “Leaders” in the top toolbar • On the leaders page, you’ll see a listing of resources on the right side, including leadership tools, membership database, good standing information, and NCPTA annual reporting. • The NCPTA website also offers a “search” box.

End of Year Financial Bootcamp Overview of Sept 2014 Treasury Webinars • Roadmap to Successful PTA Budgets Thursday, September 4, 2014 • Best Practices in PTA Cash Management Thursday, September 11, 2014 • Examining the Financial Review Committee and Your PTA 990 Thursday, September 18, 2014 Recorded versions of the above webinars are archived at www. ncpta. org. Today’s workshop is also there in shortened version (although it has not been updated for recent changes in audit and 990 reporting procedures).

Financial Management Guidance from National PTA • National PTA has done a great job summarizing the work in PTA financial matters in the Back to School Kit for 2016 -2017 • For the entire load of Back to School Kit information, visit www. ptakit. org and you’ll see all the topics in the toolkit. • Once there, you will want to visit the “finance” tab from the toolbar at the top of the website • Let’s visit there now: www. ptakit. org

Uniform Bylaws will guide Roles & Responsibilities • You’d be shocked by what you can learn from reading your unit’s Uniform Bylaws • All PTA units in the state use the same bylaws • You should have a copy readily available from your current PTA president. If not, visit www. ncpta. org or contact office@ncpta. org for a copy.

• Article 7 – Board of Directors Section 7. 4 Accounts and Records This local PTA shall keep such permanent books of accounts and records as shall be sufficient to establish the items of gross income, receipts, and disbursements of the local PTA. These records shall include the official membership roster. Such books of accounts and records shall at all reasonable times be open to inspection by an authorized representative of NCPTA.

Fail Treasury and Finance Workshop Fail Closing out Your Unit’s Books and Records for the Year. Presented by Sarah Martin, NCPTA Board of Directors Success

Closing out current year budgets • You may need to educate your Board about funds availability as you get closer to year end. • Consider contacting key committee chairs to discuss plans on remaining funds in their budgets. • Work with your Board to establish deadline for check requests and reimbursement requests from current year funds.

Consideration of Budget Amendments • After a thorough review of budget versus actual spending for the year, it may become clear that a budget amendment is needed. • Uniform bylaws layout procedures for such amendments in Section 11. 4: Amendments to the budget may be considered and adopted at regular or special general membership meetings

Fail Treasury and Finance Workshop Financial Risk Mitigation in your PTA unit Presented by Fail Sarah Martin, NCPTA Board of Directors Success

Guidance from National PTA • Internal controls provide some level of assurance that – Financial reporting is reliable – Operations are being conducted efficiently and effectively – The PTA unit is complying with laws/regulations • “Good internal controls will take away the opportunity needed by desperate people to commit a crime. ” (National PTA website) • From PTA Kit: http: //www. ptakit. org/Finance/Theft-Fraudand-Embezzlement-Guidelines/Internal. Controls. aspx

Guidance from National PTA • There is a list of PTA-specific warning signs that may indicate that theft, fraud or embezzlement is taking place. • From PTA Kit: http: //www. ptakit. org/Finance/Theft. Fraud-and-Embezzlement. Guidelines/PTA-Specific-Warning. Signs. aspx • Check out the whole section on Theft, Fraud, and Embezzlement

Audit Committee: Fail Treasury and Finance Workshop - Standing Committee of your PTA unit Presented by Fail Sarah Martin, NCPTA Board of - Composition of Directors committee Success

The Audit Committee is a Standing Committee of your PTA Unit • Board of Directors establishes audit committee by July 1 each year • Board of Directors elects chair and members of the committee • The president is an ex officio voting member of all standing committees EXCEPT Nominating Committee and Audit Committee.

Composition of Audit Committee • Committee must have no fewer than three members. • Individuals with check signing authority and their family members are not eligible • Outgoing or incoming treasurer not eligible • It is not recommended that a principal serve on the Audit Committee.

Financial Reviews: Fail Treasury and Finance Workshop Fail -When and Types -Who Performs? - Database Presented by Entry/confirmation Sarah Martin, NCPTA Board of of completion to Directors NCPTA Success

Bylaws Article 11 Addresses Financial Reviews for the PTA Unit • Monthly Financial Reviews • Financial review when a financial officer leaves office • Annual financial review Note that the Board may call for a financial review at other times, as well, and that such reviews would be conducted either by the Audit Committee or by an independent accountant.

• Article 11 – Finance and Budget Section 11. 1 - Monthly Financial Review The audit committee will conduct a monthly review of this local PTA’s bank statements and supporting documents and shall sign an acknowledgment on the bank statements that the expenditures were consistent with the approved budget.

Monthly Financial Reviews • No set reporting format that must be used (not reported to NCPTA) • Not only required by bylaws, but also by many insurance companies • Failure to perform these reviews (if required by insurance) can be grounds for denial of an insurance claim by your insurer. • Quick procedure (may be done in just a few minutes) • You really need an audit committee in order to do this – CPAs rarely perform these sorts of monthly procedures.

• Article 11 – Finance and Budget Section 11. 2 - Financial Review when financial officer leaves office If any officer with financial responsibility, including but not limited to check signing authorization, leaves office before the end of a fiscal year, the audit committee will conduct a review of the local PTA’s financial records.

Financial Review When Financial Officer Leaves Office • Provides protection for both the outgoing officer and the incoming replacement officer • Recommend using the annual review checklist and reporting format • Good idea to update in the NCPTA database date of latest review completion. • This will not suffice for the annual review at the end of year.

• Article 11 – Finance and Budget Section 11. 3 – Annual Financial Review By August 31 each year, the audit committee, or a certified public accountant appointed by the board shall: a. Examine the treasurer’s year-end financial report and this local PTA’s financial records (including but not limited to all depository accounts, the general ledger of receipts and expenditures, supporting documentation and checks, and records of membership dues paid); and

• Article 11 – Finance and Budget Section 11. 3 – Annual Financial Review b. State in writing whether or not the treasurer’s year-end report is correct and shall submit that statement, with a copy of the report, to the board of directors. Note that NCPTA has CHANGED this guidance and now requires only that the database be updated to confirm completion of the annual review – no report copies are needed for NCPTA.

Info Needed for the Annual Financial Review • Total gross income of your PTA unit for the year under review • Treasurer’s Reports • Bank Statements • Number of PTA members during the fiscal year • General knowledge re: your PTA’s budget, financial controls, insurance, tax forms, and management • Copy of minutes of membership meetings

Info Needed for the Annual Financial Review • Review instructions from NCPTA: – Visit www. ncpta. org and click on “leaders” in the top toolbar. – In the sidebox at the right of the page, click on “Membership Database” – Links are located there with Financial Review instructions and checklists for the review to be performed

After the Annual Financial Review • Audit Committee should produce a report to the Board • Must submit confirmation of completion of Annual Financial Review (see upcoming slide) • Deadline for filing online completion confirmation is August 31 to remain in good standing. If deadline is missed, move with all rapidity to file as soon as practicable and to restore your good standing. • Should also summarize report to general membership

Fail Treasury and Finance Workshop NCPTA Database Entry Presented by Fail Sarah Martin, NCPTA Board of Directors Success

Database Entry is done Online and may have changed now that NCPTA has moved to Member. Hub How do I submit confirmation that the annual Financial Review for my PTA has been completed? platform • • • 1. Go to the NCPTA Database (the same website Officers enter member information): www. ncpta. org/db 2. Login using the User ID and Password assigned to your PTA (the same User ID and Password Officers use to enter member information). 3. Under “Financial Confirmations” click “Financial Review” 4. Fill in the required information: • Your Name: • Your Email: • Your Position: Select your position from the drop down box • Membership Year for the Financial Review: Select the year for the financial review you are confirming (reminder: the financial review is always for the prior membership year: July 1 -June 30) • Date Financial Review Completed: Fill in the date your Audit Committee completed the financial review (mm/dd/yyyy) or use the calendar to select your date. 5. Check the Confirm Box: This confirms that the review was completed on the date provided and has been reported to your PTA’s Board of Directors. 6. Click “Submit” The Financial Review Confirmation cannot be changed

Database Entry is done Online (con’t) • PLEASE maintain hard copies of the annual financial review documents in your PTA records. • PLEASE do not submit a hard copy to the NCPTA office

IRS Form 990: Fail Treasury and Finance Workshop Fail - Why File? - 3 Form Types - Board review Presented by - IRS Due Dates Sarah Martin, NCPTA Board of Directors Success

If We’re Tax Exempt, Why File? • The IRS Form 990 is required as an annual informational filing to the IRS. • While taxes are not assessed with this filing, the penalties for failure to file timely returns are stiff and can result in loss of your 501(c)3 status. • These filings are a matter of public record and can be viewed using Guidestar online services if you create a user account: http: //www. guidestar. org/rxg/help/faqs/form 990/index. aspx • Keep in mind that other tax filings may be applicable for your unit, including Unrelated Business Income Filings and filings with the State of NC for refunds of sales tax paid on purchases by your PTA unit. For more information from NCPTA on sales and use tax filings, visit http: //ncpta. org/index. php/state-sales-and-usetax/

Three Types of IRS Form 990 • Form 990 -N (“e-Postcard”) – 8 questions – Electronically filed return – For units with gross income under $50 k for the 2010 tax year & thereafter • Form 990 -EZ (2 page return) – For units with gross income under $200 k • Form 990 (“long form”) – For units with gross income in excess of $200 k

How to Complete IRS Form 990 • Great guidance provided by the nonprofit division of the IRS • Visit http: //www. stayexempt. irs. gov/Virtu al. Workshop/Form 990. aspx for complete step by step instructions

Board Review of IRS Form 990 • The filing includes more than just the financial results for the year • Includes a full cadre of questions about financial controls • Many of these questions are addressed in the NCPTA annual review checklists described above • IRS is looking for good compliance in the internal financial controls of non-profit organizations

Form 990 Due Dates (regardless of Type of Form used) • Due date is 4. 5 months after fiscal year end. • Uniform bylaws establish all NC units have same fiscal year: July 1 – June 30 • Therefore, all units have 990 s due on or before November 15 th following the close of the year. • Early filings encouraged. • Officially, uniform bylaws state incoming treasurer is responsible. • Preferable to have outgoing treasurer complete the 990, but if not possible, then the new treasurer MUST do it. VERY IMPORTANT! The 990 cannot be left “undone” under any circumstance.

After the Annual 990 is Completed • You must submit a confirmation to NCPTA that the 990 has been completed and filed. • Failure to file the 990 return for three consecutive years results in revocation of your PTA’s tax-exempt status. NCPTA’s goal is to prevent our PTAs from losing their taxexempt status with the IRS.

Database Entry is done Online & may have changed with move to Steps to submitting your PTA’s Form 990 Confirmation: Member. Hub 1. Log into the NCPTA Membership Database at 2. 3. 4. 5. www. ncpta. org/db Under “Financial Confirmations” click “Form 990” Fill in the required information: • Your Name: • Your Email: • Your Position: Select your position from the drop down box • 990 Filing: Select which Form 990 your PTA submitted to the IRS from the drop down box • Total Gross Receipts: Fill in your PTA’s total gross receipts • Date Form 990 Filed: Fill in the date your Form 990 was submitted to the IRS (mm/dd/yyyy) or use the calendar to select your date. Check the Confirm Box: This confirms that the 990 return was submitted to the IRS on the date provided. Click “Submit” The Form 990 Confirmation cannot be changed after you click the “Submit” button. If you need to make a change to the confirmation information, you will have to delete the confirmation and start over. The 990 return must be filed with the IRS and this confirmation must be completed by November 15 of each year in order to remain a unit in good standing with NCPTA.

Fail Treasury and Finance Workshop Good Standing Requirements Presented by Fail Sarah Martin, NCPTA Board of Directors Success

• Article 4 – Relationship with National PTA and NCPTA Section 4. 5 Good Standing Requirements This local PTA shall comply with the good standing requirements of NCPTA. The good standing requirements are available on the NCPTA website. The good standing requirements are also available at the NCPTA headquarters and upon request by mail, email, or telephone. The good standing requirements are subject to change at any time by NCPTA.

Good Standing Requirements Finding the good standing requirements on the NCPTA website: • Search box: Good Standing Requirements • Top Toolbar: Click on Leaders, then on GSR in the listing at right of website Let’s visit there now: http: //ncpta. org/index. php/leaders hip-tools-for-officers/good-standingrequirements/

WRAPPING UP FOR THE DAY --Let’s Stay in Touch!

Wake County PTA Council www. wakepta. org New Officer Training --- 2 dates for 2017 Best Option: THURSDAY, JUNE 1 (6 pm to 8 pm) RSVP at https: //www. surveymonkey. com/r/2017 PMNew. Officer. Training Secondary Option: FRIDAY, JUNE 2 (9: 30 – 11: 30 am) RSVP at https: //www. surveymonkey. com/r/2017 AMNew. Officer. Training Summer Leadership Conference --in late Aug/early Sept (details to come)

Communication with Wake County PTA Council: Wake County PTA Council Yahoo Group – PLEASE have all Board members join to keep up with our announcements. To join, simply send an email (from the email at which you wish to receive our messages) to: wakeptacouncil-subscribe@yahoogroups. com Keep an eye on our website – http: //www. wakepta. org/ Like us on Facebook – http: //www. facebook. com/Wake. PTA

CONTACT INFORMATION: leadership@wakepta. org sbmmom@gmail. com office@ncpta. org