FINANCIAL REVIEW RESOURCES & INFORMATION
FINANCIAL REVIEW SUBMISSON:
Both the FINANCIAL REVIEW PROCEDURE CHECKLIST and the FINANCIAL REVIEW FORM must be submitted to support your Financial Review.
Please email a copy of completed form to treasurer@westvirginiapta.org
"or" Enter Submisson in Givebacks under Compliance or mail to:
ATTN: Treasurer, West Virginia PTA
PO Box 3557
arkersburg, WV 26103-3557
FINANCIAL REVIEW PROCEDURE CHECKLIST: West Virginia PTA units are required to have an annual financial review performed after the close of the fiscal year. Procedures to be performed include: confirming ending balances in accounts and disclosures, examining source documents, and testing internal controls. The books can be reviewed by an internal financial review committee (who are not signers on the checking account) or an outside person.
FINANCIAL REVIEW FORM: Use this excel file to enter the financial balances, receipts, disbursements, deposits, and check information. This form determines whether the books of the Treasurer are Correct, Incorrect, or Incomplete. This form must be signed by the reviewers who cannot be bank account signers.
FINANCIAL STATEMENT SUMMARY EXCEL FORM: This form is typically required by county Board of Education Treasurers. It is in Excel format so that you may enter the financial information required. This form would be provided to the Principal or other Administration contact. WV PTA does NOT require this form for the Financial Review submission.
CONDUCTING A FINANCIAL REVIEW
A Financial Review involves examining financial records and transactions to ensure that receipts have been properly accounted for and expenditurewidgets s have been properly authorized and recorded, in conformity with PTA bylaws, standing rules, and budget limitations.
Your PTA’s bylaws should indicate who, when and how a Finacial Review is to be conducted and reported to the membership. Financial records should be reviewed once a year. WV PTA requires one financial review annually. Books should also be reviewed if a financial officer resigns (see Final Steps before Leaving Office Checklist), before the new officer assumes his or her duties, and at any other time deemed necessary.
You have several options for how to complete an examination of the financial statements and records. The first option is the least expensive:
• Internal financial review is conducted by an internal committee. This committee should not include anyone with signature authority over the PTA’s bank account or any relatives to a person with signature authority. The committee periodically reviews all of the Treasurer’s records for errors. Check with WV PTA if support is required for internal financial reviews.
The remaining three options require retaining a professional firm with nonprofit accounting experience. Laws in several states require 501(c)(3) organizations to hire a professional firm to complete the audit when gross income exceeds a certain amount. Be sure to check the laws in your state or talk with WV PTA about your unique circumstances. You will hire a firm to:
• Compile financial statements. The CPA receives financial information from the client, reviews it for obvious errors without verifying the facts or tracing the transactions, and prepares financial statements using the information provided. Upon completion, a report is issued that states a compilation was performed in accordance with professional standards, but no assurance is expressed on the statements.
• Review financial statements. The CPA performs inquiry and analytical procedures in addition to the procedures described above for a compilation. Upon completion, a report is issued stating that a review has been performed in accordance with professional standards, that the review conducted was less rigorous in scope than an audit, and that the CPA did not become aware of any material modifications that should be made in order for the statements to be in conformity with generally accepted accounting principles.
INTERNAL FINANCIAL REVIEW
10 Steps for Conducting a PTA Financial Review
Shortly before the end of your Treasurer’s term or at the end of the fiscal year, it is important to conduct a financial review of the Treasurer’s records. Take these 10 simple steps for success.
Step 1: Recruit an internal committee. Your financial review committee should not be anyone with check signing authority.
Step 2: Provide committee with Treasurer’s records including:
• Last financial review report
• Checkbook and canceled checks
• Bank statements and deposit receipts
• Treasurer’s book or ledger
• The annual financial report
• Itemized statements and receipts of bills paid
• Check requests
• Minutes that would include an adopted budget
• Current bylaws and standing rules
Step 3: Explore the records posted after the last financial review.
Step 4: Explore a sampling of transactions. The size of this sample should be based on the size of the association. If mistakes are found, the sample should be broadened to take in more transactions.
Step 5. Ensure accurate disbursements. Make certain that money collected for a specific purpose (special projects, gifts, scholarship funds, council dues, etc.) has been disbursed for that purpose. This includes keeping state and national portions of the membership dues separate from other receipts and remitting these portions to the state office monthly.
Step 6. Check the Treasurer’s reports and annual report for accuracy.
Step 7. Collaborate with Treasurer and President to correct errors.
Step 8. Prepare financial review results. The financial review committee also must submit a report documenting their efforts and sharing results.
Step 9. Submit report to board or membership. The financial review must be officially adopted by your PTA and must be included in a completed annual report covering the association’s entire fiscal year.
Step 10. Contact your state PTA or a CPA if questions remain.
Submit the finanical annual review/audit of financial records
within 120 days after the end of the fiscal year