Timothy Duke, Tennessee PTA Treasurer
Announcements and Information
Four Annual Finanical Requirements from the State/Federal government and National PTA:
1. File your 990-N or 990 tax form each year (penalty IRS revocation; filed no later than November 15)
2. File your audit report within 30 days of your unit audit each year (Tennessee state law requirement; report received by State PTA Office no later than November 15)
3. Pay your PTA unit membership dues by required report deadline each year (National PTA unit in good standing and IRS charitable organization requirement)
4. At a general membership meeting, have your unit budget voted on each year (National PTA and IRS requirement)
Budget and Finance Commmittee Explained
The object of the Budget and Finance Committee is to develop a budget to meet the needs of the year’s activities as planned by the PTA. The treasurer, the past treasurer, and members of the association who are proficient in bookkeeping and accounting may be considered for membership on this committee. If a Ways and Means Committee is created, its chairman should also be a member of the Budget and Finance Committee.
The proposed budget and suggested plans for raising the necessary funds should next be referred to the Executive Board for consideration and finally to the association for adoption. The budget, as adopted by the association, serves as a financial guide for the year; it may, however, be amended by a vote of the association at any regular meeting or at any special meeting called for that purpose. Any additional expenditures not provided for in the budget are also presented to the association for adoption; however, no bills may be paid by the treasurer until they have been authorized by the association, the Executive Board, or the president, according to the procedure outlined in the bylaws. State and National portion of dues should never be listed under assets of the local association. The money is not the property of the local unit. The unit serves only as the channel through which it is collected and passed on.
Suggested Activities for the Budget and Finance Committee:
Study the record of past receipts and expenditures.
Study the plans for the year’s activities and suggest ways and means of procuring whatever funds are needed.
Set up a budget showing the allotment of expenditures for the year’s activities.
At each regular meeting of the executive board present a statement showing how the amounts expended to date compare with the corresponding items in the budget.
Recommend to the association any budget revisions that are necessary for the effective development of the work of the association.
Recommend to the association, after approval by the executive board, a plan to provide sufficient funds in the budget to enable the association to carry on its program during the summer prior to its fall membership enrollment.
What is a budget? A budget is a guide. It is a simple statement showing a plan for obtaining funds and appointment of these funds to meet the needs of the unit’s yearly activities.
Who prepares the budget? A budget committee prepares the budget. It may be composed of the treasurer, past treasurer, member's proficient in bookkeeping and accounting, and the Ways and Means Chairman. Check your bylaws for the formation and duties of the budget committee.
How is the budget prepared? Consider the amount of money on hand, study the current receipts of the past year, noting expenses to be repeated, and consider the costs of new programs and projects. Study and compare past budgets.
Who decides about the budget? The budget is presented to the board for approval and to the association for adoption.
How can it be changed? When there are additional expenses or a change in an allocated expenditure, the budget may be amended by a vote of the association at any regular meeting or at a special meeting called for that purpose. See your bylaws.
What about a special project? A special project is usually financed by special means and is not part of the budget.
Where do we put state and national dues? NOT IN THE BUDGET!!! The unit is the agent for the collecting of the state and national portion of dues. The dues are never listed on the budget because the money is a transfer item. Only local dues are shown on the budget.
Guidelines for Unit Savings Accounts
PTA is an educational organization…NOT a fund raising organization. We raise only those funds that are necessary to meet the needs of the year’s activities as planned by the unit, and listed in their budget. It is not uncommon practice for units to have small contingency savings accounts in planning of the budget for the following reasons:
Efficient management of funds (earns interest until funds are expended).
Reserve to carry on programs during summer and fall, until dues are collected.
Monies to finance approved projects or programs.
As a guide, these reserve funds should not exceed one half of an average year’s budget of the unit. If it does, it may mean that the unit is not giving enough service to and on behalf of children and youth.