PTA Leaders

Financial Red Flags

  • Unapproved annual budget and/or calendar of events
  • Board unfamiliar with payment authorization procedure
  • Receipts not attached to Payment Authorization/Request for Reimbursement Form(s)
  • Fundraising projects that benefit a board member financially (Conflict of Interest)
  • Lack of documentation of fundraiser income and expenses
  • Only one person counting money; no cash verification sheets
  • Only one person signing checks; only one person on bank signature card
  • Signing blank checks
  • Late payment of bills
  • Bank statements sent to officer’s house rather than the school
  • Bank statements not reviewed by a non-check signer
  • No treasurer’s reports at executive board or association meetings
  • Reports are given orally with written information to be provided “later”
  • Organization not meeting Federal and California filing requirements and deadlines
  • Failure to provide a year-end financial review on request

Financial situations to avoid

  • President writes the checks because the treasurer has no experience, is unavailable, etc.
  • Funding projects without going through the approval process required by PTA
  • School staff member as treasurer or president
  • Paying for salaries for ongoing staff positions (encumbering future boards)
  • Lack of/incomplete minutes, particularly in matters involving use of funds; no motions releasing funds or approving expenses
  • Banks that do not return processed checks or make copies available