What is an Audit?
Auditing involves following financial transactions through records to
be sure that receipts have been properly accounted for and expenditures
made as authorized in the minutes and in conformity with PTA bylaws,
standing rules, and budget limitations. It must be completed at the end
of each PTA fiscal year and when a treasurer resigns their position.
No one should EVER take the "books" from a
past treasurer until an audit has been completed! Purpose of an Audit
To certify the accuracy of the books and records of the financial officer
and to assure the membership that the association's resources/funds are
being managed in a businesslike manner within the regulations established
for their use. About an Audit
PTA bylaws indicate when an audit is to be made, its procedure, and
when it should be reported to the membership. Record-keeping books should
be audited at least once a year. Books should also be audited if a financial
officer resigns, before the new officer assumes his or her duties, and
at any other time deemed necessary.
The process for selection/election of individuals to serve on the internal
audit committee, or for retaining a professional (with nonprofit accounting
experience) will also be found in the bylaws for the PTA. You must use
the Virginia PTA form "Local Unit Audit Report". Information
after adoption of this report by your general membership shall
be forwarded to your council president and the Virginia State PTA. Preparation for an Audit
Financial records should be put in order for the auditing process shortly before the end
of the term of office. The outgoing treasurer cannot pay bills after the books are closed for
the audit. Upon assuming the office, the incoming treasurer may deposit funds in the PTA bank
account. During the audit process it is recommended that expenditures within an adopted budget
be limited to those of an emergency nature. The audit should be completed as quickly as possible.
The treasurer shall deliver the following to the auditors:
- a copy of the last audit report
- checkbook and cancelled checks
- bank statements and deposit receipts
- treasurer's book or ledger
- the annual financial reports
- itemized statements and receipts of bills paid
- check requests
- copies of board, executive committee and organization minutes, which would incldue an adopted budget
as well as any amendments that were approved during the year
- current bylaws and standing rules
- any other information requested by the auditor/audit committee
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