As usual, JHB has some great tips. I'll add a bit more...we require every check to be signed by two authorized officers (prez, trez, vp). Some banks (like ours) won't enforce the 2 signer rule, but we just order our checks with 2 signature lines and don't tell anyone that a check could actually be cashed with only one signature. People respect that rule and it's a great financial control. Also NEVER pre-sign blank checks even though it might be a tempting "time saver",so you don't have to track down the second signer.
We don't issue a check without a completed transaction form, and a receipt (for reimbursement requests) or invoice (for check requests). We also have a bylaw that requires reimbursement requests be submitted within 45 days of the expenditure or it will be denied. That rule helps keep our accounting current.
Another good financial control is to have the bank statement mailed to someone other than the treasurer (we send it to the Prez). The prez looks over the statement and the cancelled checks, initials the statement, and then gives it to the treasurer who does the account reconciliation. A second set of eyes is always a good thing.
One of the most powerful statements I've heard on this subject came from Jim Carpenter at a PTO Today confernce. Jim's advice:
"Trust is not a safeguard."
You're not questioning someone's integrity when you put financial controls into place. You're safeguarding the PTO.
The Chairperson of each PTO event shall work with the Treasurer and other officers to plan for the handling of all funds in an approved manner.</font>
Chairpersons/Project Coordinators must make sure any volunteers dealing with funds understand the process.</font>
All PTO funds must be counted with 2 people present, each initialing the “Summary of Funds Received†form.
1. Complete the form and itemize the fund sources (membership, T-Shirt sales, event sales, etc.) as well as cash vs. checks.
2. Copy the completed form and give to school secretary to file.
3. Seal the funds and the original form in an envelope.</font>
The Treasurer will make all deposits unless specifically planned otherwise.</font>
Funds should be deposited same day acquired. If not possible, funds will be secured at the school in the designated locked area.</font>
Cash must be deposited on day received or, at most, one business day later.</font>
Checks must be deposited within 5 business days.</font>
It is not necessary to record all checks on the bank deposit slip – a spreadsheet can be attached instead.
PTO funds are intended to benefit the students through the enhancement of school programs and activities. The PTO Officers are the guardians of these funds and have an obligation to see that they are protected and used wisely. It is very important that everyone follow these policies.
I am helping a new middle school start their PTO. At my current PTO (elementary) we have had some problems with a past treasurer, money missing, etc... In order to help alleviate these problems with the new PTO we would like to put ALL money/check handling procedures in writing before hand.
Does anyone have such a thing?
If not, what are the things that should be addressed?
1. who can sign checks and how many signatures
2. who can count money
3. where money is stored if it can't be deposited
4. how often to make deposits
5. what backup documents are necessary before a check can be signed
