This week we are covering 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 go over step five.
Step 5: Present the audit to the association for review and vote
You’ve nearly completed your mid-year audit process. You have taken the time to do a thorough examination of your records, you’ve shared your findings with your executive board, and you are ready to share your report with the association.
- The President should include the audit on the January or February association meeting per your bylaws.
- At the association meeting, the auditor will once again stand up and read their report: “I have examined the financial records of the treasurer of (unit name) and find them (correct, substantially correct, partially correct, or incorrect).”
- The auditor or another officer will then move the adoption of the audit.
- The chair will call for a second, any discussion and a vote.
- Once the association has adopted the audit, you will need to write the date of the meeting on the audit report.
I love using the audit as a chance to help our parents understand some of the practices and policies we follow as a PTA. As the chair of the meeting I often take some time during this meeting to talk about what an audit is and why we complete two audits a year. I often say things like:
“In PTA we believe in transparency and fiduciary responsibility. Part of the way we help to make sure we are handling the funds properly is by participating in two audits every year — a mid-year audit done when the books close in December and another audit when the fiscal year is done. Our auditors and their review committees look over all of our financial records — our checkbook, bank statements, receipts, minutes and treasurer’s reports — all to make sure that we are spending the funds raised at our school in accordance with the will of the association. They are also checking to make sure that our taxes are filed and our unit stays in compliance with the state and federal government. Our insurance company also requires audits, with a review by an audit review committee to maintain our insurance coverage. We share these reports with our executive board and discuss any improvements that might need to be made, and then we bring the audits to you, our association, for final approval. We want you to know that we take our responsibilities of handling the funds for the PTA of our school very seriously, so we want to be as transparent as possible.”
Now you have completed the mid-year audit process!! You will need to give a copy of the completed audit to each of the following:
- The President
- The Treasurer
- The Secretary (to keep in the minute book as a permanent record for your unit)
- The Auditor
- To your council and/or district
It is also a good idea to upload a copy of your audit into the MyPTEZ (formerly called PTAez) record retention file. This is free to all units, whether or not you use PTAez, and it helps to keep an additional permanent record of your paperwork.
Well done on completing your mid-year audit! Don’t forget that your unit should be doing mini-audits every month when a non-check signer opens your bank statements, signs, and dates them, and when a non-check signer reviews, signs and dates the monthly bank reconciliations. If you stay on track with that, then your auditor will have a much easier job when it comes time to complete the end-of-year audit — and they will love you for it!
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