Essential Steps for Preparing Your PTA Financial Review Before October 31

As the October 31 deadline for your PTA financial review approaches, it's more important than ever to keep financial records organized. This review isn’t a mere requirement; it’s a vital process that upholds transparency, accountability, and trust within your community. In this post, we will guide you through the essential steps to prepare for your PTA financial review, helping you meet the deadline confidently.

Understanding the Importance of the Financial Review

The financial review is a key moment for your PTA. It assesses your financial health, showing how funds are managed. This review is a compliance requirement, in line with Free State PTA guidelines.

Conducting this review can reveal discrepancies or areas needing improvement in your financial practices. According to a study by the National PTA, 75% of effective PTAs report that regular financial reviews lead to enhanced financial oversight, ultimately supporting student success and community trust.

Form a Financial Review Committee

A Financial Review Committee (Bylaws Article VII, Section 4, l. & Article VIII, Section 4, e.) should consist of not less than three PTA members selected by the Board of Directors. It should be noted that this is a committee of PTA members. PTA is a member association, and the books and records belong to the membership.

Non-members do not have a right to examine these records.

THIS COMMITTEE MUST NOT INCLUDE ANYONE WITH SIGNATURE AUTHORITY OVER THE PTA’S BANK ACCOUNT OR ANYONE RELATED TO OR LIVING IN THE SAME HOUSEHOLD AS A PERSON WITH SIGNATURE AUTHORITY.

Incoming officers who were not on the PTA bank account during the year being reviewed can be part of the committee.

Gather Necessary Documentation

Before diving in, gather all necessary documents to make the review process smoother. Key items to collect include:

• Bank Statements: Gather all statements from your financial accounts for the review period. Ensure that you have statements from every PTA account.

  
  

• Receipts and Invoices: Collect all receipts and invoices for PTA-related expenses, as they will help validate your financial records.

  
  

• Budget Reports: Have your budget reports available to compare actual vs. planned spending. Identify any variances that need addressing, as 40% of PTAs have found substantial discrepancies during this process.

  
  

• Meeting Minutes: Collect minutes from PTA meetings where financial discussions took place, providing context for financial transactions.

  
  

Organizing these documents beforehand will make the entire process more efficient.

Assign Roles and Responsibilities

To ensure a seamless review, assign roles and responsibilities among PTA members. Designate a financial review committee to lead the review and involve other members for added support. Here’s how you can break down responsibilities:

• Data Collection: Assign one person to gather all necessary documentation.

  
  

• Data Entry: Designate another member to input financial data into spreadsheets or accounting software.

  
  

• Review and Analysis: Have someone analyze the financial data and prepare a summary report.

  
  

Splitting tasks not only enhances efficiency but also reduces overwhelm for individuals.

Complete the Financial Review and Report the Results

The Financial Review must be officially adopted by the General Membership of the PTA at the first general meeting of the year. If the report states that more information and verification is needed, the Treasurer should provide the requested information. The Annual Financial Review Report along with the Annual Financial Report (Treasurer’s final report with Budget vs Actual) must be sent to Free State PTA by October 31st.