A yearly financial review completed in July is necessary to ensure that the board has engaged in responsible fiscal oversight and that good financial practices have been followed. It is a formal examination of the financial books and records of your PTA and serves to certify that receipts and expenditures, as authorized in the minutes, conform with bylaws, standing rules, and budget limitations. The annual financial review is also a PTA/PTSA insurance requirement.
Additionally, completing a mid-year review in January can make the year-end review easier to process and allows your PTA to catch any problems early on so that they are addressed as soon as possible.
As a treasurer, you want to make sure your review committee can easily access all documents. As the review committee, you want to stay organized and have a good system for including all committee members in the process.
Did you know that financial reviews can be done in person or virtually over a video call? Offering a digital option allows for more flexibility in how volunteers meet and can even make it more accessible with tools such as closed captioning during video calls. Below, you will find pointers for both treasurers and financial review committees on how to organize, prepare, and complete an online financial review. Following the guidance below will help treasurers feel confident when handing over the books for review and help empower the financial committee members to fulfill their duties.
Who Can Serve on the Finanical Review Committee:
The financial review committee shall consist of no fewer than three members appointed by the president.
The financial review committee shall not include officers with signatory authority or individuals living within the same household as those authorized to sign on the bank account for the period being reviewed.
Further information about financial reviews may be found in the Managing Your Nonprofit PTA Handbook.
You want to make sure you are continuing to maintain your physical binder while also putting together a digital binder. The entire review committee will need access to the digital binder, but it’s recommended that at least one member of the review committee be given access to the physical binder as well. Note: Before you hand over your binder, remove anything you store in it that shouldn’t be shared, such as passwords. Also, if it is at all possible, give at least one person on your review team viewing access to your financial software.
Steps to creating a simple and easy-to-use online binder:
FINANCIAL REVIEW COMMITTEE MEMBERS
If you’ve volunteered to be a part of your PTA’s Financial Review Committee and are not sure where to begin, check out these 3 steps:
The annual Financial Review is a requirement of your PTA/PTSA’s insurance. It is also a helpful tool meant to assist the treasurer and the rest of the board of directors in establishing and refining best practices. During a Financial Review, the policies and procedures are reviewed, and the committee’s feedback is important in providing guidance on those policies.
If you still have questions about preparing for or completing a Financial Review, contact Council Treasurer, Brenae Brix.