Auditor
Year-End and Mid-Year Audits: The Paperwork
As specified in the bylaws, all units must have a complete
financial audit conducted on a semi-annual basis. Since the
fiscal year runs from July 1 to June 30, this means all units
should have their year-end audits complete prior to the first
unit board meeting (mid-year audits should be completed during
January with the cut-off date of December 31). The completed
audit must be adopted by the association at a unit meeting by
way of motion; and the adoption date must be indicated on the
audit. A report form for the audit is in the "Forms"
section of the Toolkit or is available on this website (click
here - Adobe PDF document).
During the audit process, the auditor:
* prepares an audit report for each account. The report should
include: beginning balance (ending balance from last audit),
all expenditures, all deposits, outstanding checks, outstanding
deposits, and an ending balance. (See audit examples in California
State PTA Toolkit, and National PTA's Annual Resources for PTAs.)
- should include a statement at the bottom of the report (See
statement in the Toolkit). The auditor should sign the report.
- should attach any recommendations to the report. List errors
in arithmetic or posting. List unpaid bills, payments authorized
but not paid.
- should request that the audit report be formally adopted with
a motion: "I move that the audit report be adopted,"
and that the action be recorded in the association minutes.
- should have the secretary attach a signed copy of the audit
to the minutes.
If assistance is needed, contact the council or district PTA.
In any question of mismanagement of funds, assistance should
be sought immediately from the council and district PTA officers.
Do not make any implicit, explicit written or verbal statement
or accusations. Such actions could result in a lawsuit for libel
or slander.
The completed audit report is then forwarded to the council
auditor. Council audits are forwarded to Fourth District.
Due dates (Council to Fourth District PTA):
Year-End Audits: Due SEPTEMBER, 2008
Mid-Year Audits: Due MARCH 26, 2009
Units are required to submit two copies of their semi-annual
and final audits to their council (who will then forward one
copy to Fourth District along with a copy of the council audit).
This is now one of the requirements of being a unit or council
in good standing. If your audit report is not forwarded, you
could have your charter revoked, just as for not paying your
membership dues or insurance payment.
Download the Auditor
Job Description
Auditor FAQ
What is an audit?
An audit is a formal examination of the financial books and records of the financial officers of the PTA. It serves to certify that receipts and expenditures, as authorized in the minutes, are in conformity with Bylaws for Local PTA/PTSA Units, Standing Rules, and budget limitations. The PTA audit serves as an official examination of the financial records conducted by the auditor or appointed audit committee at the times specified in the Bylaws for Local PTA/PTSA Units,Article VI, Section 8 and when there is a change in financial officers.
What is the purpose of an audit
An audit determines the accuracy of the books, detects inconsistencies or errors, provides recommendations for corrective action, protects the financial officers, verifies that funds were sent through channels as appropriate, and assures the membership that the association's resources were managed in a businesslike manner within the regulations established for their use.
There are two main reasons for performing an audit—for the peace of mind of the officers and members, and for verification of the PTA's financial integrity. The members will have confidence in their local organization when they know that their finances are in order. California State PTA requires units to perform twice-yearly audits to remain in good standing.
Who must conduct an audit?
All PTA districts, councils, and units must conduct an audit.
Is it hard to do an audit?
It takes a little bit of time, but California State PTA provides a form which greatly simplifies the process.
When should the mid-year audit be done?
You should check your bylaws for the exact time. Most PTAs begin their fiscal year in July 1, so the mid-year audit covers the six-month period between July 1 and December 31. It is time to perform the audit once the bank statement which covers the December time period has been received.
Who can be an auditor?
The only qualification for an auditor is to enjoy looking at numbers. The auditor is often a member of the budget, programs, or fundraising committees, but is never the one authorized to sign the PTA's checks. It is permissible for the PTA to hire a professional well-versed in the tax requirements for nonprofit organizations to conduct the audit.
The auditor may be an elected officer; appointed individual or committee; or a professional hired by the PTA in accordance with the procedures listed in your bylaws. The president, treasurer, financial secretary, secretary, or committee chairmen handling funds may not audit the finances. The auditor should not be related to the president or treasurer by blood or marriage.
Where can I find the audit forms?
Audit report forms can be found in the California State PTA Toolkit, or they can be downloaded from the Fourth DistrictPTA website. What do I do when the audit is completed?
The audit needs to be formally adopted at an association meeting with a motion, and then it should be signed by the auditor and attached to the minutes. It will then be stored as a permanent document of your PTA.
How many copies should I make?
Make copies for your president, treasurer, financial secretary (if you have one), auditor, secretary (for permanent filing with the minutes), and your next level, be it council or district.
Please Note:
• COUNCIL treasurers and auditors collect UNIT financials and audits, and do not forward them to Fourth District PTA.
• DISTRICT treasurers and auditors collect COUNCIL financials and audits only.
Council officers have direct responsibility to insure that all units in the council turn in their mid-year and year-end audits. A filing system is strongly recommended for council financial officers where each unit has a labeled file folder to hold their audits and a master list can be checked off as financial materials are received.
Where can I find more information regarding details of the PTA audit and the auditor's specific duties?
The California State PTA has further information available on their website in the section entitled, " PTA Audit", including what materials and records are required to complete an audit, audit procedure, the audit report, etc. Information is also available in the Toolkit, which is available for download in both English and Spanish. A more detailed FAQ is also available.
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