This week we are going to give you all the skills you’ll need to successfully complete your mid-year audit in January. These five steps include the new insurance requirement of having an audit committee. Today we’ll cover step one.
Step 1: Gather all the needed materials
Gather all of the needed materials. Collect all financial books, records and reports from the treasurer, including:
- A copy of the last audit report — this will give you the ending balance for the last completed audit, which is the starting place for this audit.
- Originals of checkbook register, whether handwritten or computer-generated, and cancelled checks (including voided checks)
- Originals of bank statements, bank book for each bank or savings account. Make sure you have the December bank statement before you begin. Reminder: Bank statements should be opened by a non-check signer each month. After a quick review, that person needs to sign and date them before giving them to the treasurer.
- Deposits and supporting documents for all monies received, including cash verification forms
- Authorizations for payment with attached receipts
- Itemized statements and receipts of bills paid
- Monthly Treasurer’s Reports for all monthly board meetings and general association meetings
- Original treasurer’s books/ledgers including backup files if the books are kept on a computer. Reminder: Bank reconciliations also need to be reviewed monthly by a non-check signer and signed and dated by the person who reviews them.
- Financial Report by category for the period of the audit with or without budget comparison
- Copies of board, executive committee and association minutes (including an adopted budget), any amendments that were approved during the year, approval of expenditures, and ratification of payments
- Committee reports from chairs (e.g., fundraising, membership, etc.)
- Current bylaws and standing rules
- Copy of PTA-required Workers’ Compensation Annual Payroll Report form
- Copies of all required state and federal report forms if PTA hires employee(s)
- Copies of all required federal report forms if PTA hires independent contractor(s)
- Copies of the most recently filed IRS Form 990, California FTB 199 form, and Attorney General’s Charitable Trust Renewal Form RRF-1
Visit the Toolkit to get the two forms you will need:
Once you have everything gathered, it’s time to begin the audit.
Click here to view Step 2.
Click here to view Step 3.
Click here to view Step 4.
Click here to view Step 5.
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