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Rockwood School District

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Training

Purpose/Goals

  • Provide an update on finance related topics that may affect your organization
  • Resource for questions you may have about your operations
  • Contacts for questions/situations that may come up during a school year

Budgets

  • Prepare budget prior to the beginning of the school Plan your activities/committees and include appropriate line items
  • Gather information from previous 2-3 years and from the most recent chairperson(s)
  • Present proposed budget first to board/chairpersons, then general membership for a vote and post on website once approved
  • Share budget information with committee chairpersons and check in periodically
  • Routinely review budget vs actual and report to board and post on website
  • Funds may be retained to cover start-up costs the following fiscal year. Can retain 5% of budget as rollover. Anything in excess of 5% should be earmarked for a specific purpose
  • Avoid changing the budgeted amounts frequently. Stick to the budget unless there is a significant reason for changing amounts or adding line items. If budgeted amounts must change, a vote of your board is typically necessary.

End of Year Surplus Funds

  • Review your by-laws and budget allocations
    • Per the Bylaws - The Executive Board shall see that a budget shall be presented for approval at the [first/final] general membership (open) meeting of the academic year. At that time, additional funds from the [previous/current] year are also allocated—know whether your organization's bylaws say first or final, previous or current.
  • Earmarking or gifts to schools should include 1-3 year vision for your school/community
  • Meet the intention of your fundraising activities
  • Discussed during your board meetings

Gifts to School

  • Consider surveying staff, families and students for wish list items
  • Discuss ideas with building principals
  • Report to the school community on projects funded/items purchased by your PTO/PSO
  • Consider budget, bylaws and voting requirements, when considering gifts

Gifts

  • District Policy 1470—Public Gifts to Schools
    • Standards for schools to accept a gift
      • Primary purpose of gift must be to benefit the district
      • Pose no hazard to students or staff
      • Age appropriate
      • Other costs (install, maintenance, ) should be considered
      • All gifts become property of the District
  • Schools will be required to submit to District BOE any gift greater than$1,000
  • Includes monetary and non-monetary gifts from PTO's to the schools

Bylaws

  • Review all, especially your fiscal policy
    • Budget adjustments authorized by your Board
    • Carryover funds at end of year—how are they handled
  • Year End process
    • Recommend annual audit/review of financial transactions by a committee of two or more persons independent of the financial transaction duties

Internal Controls

  • Purpose: to ensure safeguarding of funds donated or generated through fundraisers by your organization
    • Cash Received - locked box, timely intact deposits, stamp back of checks, 2 counters, list contributions received, reconcile deposit slips to bank statement, only bonded board members may transport cash off school property
    • Cash Disbursements - proper documentation (reimbursement request with receipts, invoice, contracts), no blank checks issued, consider dual signatures for check signing
  • Debit Cards-do not use for cash withdrawals, safekeeping of card, proper documentation, daily limit on card, board approved and documented protocol to ensure controls are in place
  • Bank Reconciliations
    • Should be completed on monthly basis
    • Board member not involved in financial aspects should reconcile or review each month
  • Financial Statements
    • Prepare and report to board monthly (be sure to include budget vs. actual) and post to website
    • Should include all income/expenses for the month in a clear, concise format
    • Attach copy of bank reconciliation and statement to the financial statement
  • Payment methods to be used—times have changed
    • Checks
    • Debit/credit card
    • Paypal
  • Any option used should have proper controls in place
    • Secure any debit/credit card
    • Access to PayPal accounts should be restricted and overseen
    • Board member not involved in financial transactions should be receiving/reviewing bank statements
    • Routine audits of transactions by independent person
  • Internal Audit
    • Committee of 2 or more not involved in financial transactions
    • Sample deposits and review supporting documentation
    • Sample expenditures and review supporting documentation
    • Reconcile bank statements to ledger
    • Review all checks payable to officers of the PTO
    • Signed statement by auditor of procedures followed and outcome-keep with financial files for year

How Long to Retain Documents

  • Tax Returns should be kept in your permanent files.
  • Minutes and Financial Documents should be kept in your permanent records.
  • Other treasurer records—you should keep the past three years and the current year
  • Purpose of keeping records
    • Evidence of complying with tax rules and tax-exempt status
    • Systems generally should include a summary of transactions.
    • Documentation must be kept to support the summaries.
    • Storage should allow for easy access and transition.
    • Electronically or paper

Missouri Sales Tax Exempt Status

  • Each individual PTO should have their own sales tax exemption certificate from the State of Missouri.
  • Ensure appropriate use of tax exemption certificate for purchases made on behalf of PTO
  • Verify the expiration date of your exemption letter and file a renewal form if needed
    • MO Form 1746R

Missouri Secretary of State Annual Registration Report

  • Complete Annual Registration Report for a Domestic Nonprofit Corporation through Missouri Secretary of State's Office

IRS Determination Letters

Federal EIN

  • Each PTO is a 501(c)(3) subordinate under the President's Forum umbrella
  • Copies of the general 501(c)(3) letter and your specific organization's Federal Tax ID number may be obtained from the district (fleerjodie@rsdmo.org)
  • This number is needed to process corporate matching donations or may be requested by a business donating goods to your PTO
  • This number is needed when filing your annual taxes
  • This is NOT THE SAME as the Missouri Sales Tax Exemption Number

Tax Preparation

  • Which form to use
    • 990-N (Postcard): annual gross receipts less than or equal to $50,000
    • 990-EZ: annual gross receipts less than $200,000 and assets less than $500,000
    • 990: annual gross receipts greater than or equal to $200,000 and total assets greater than or equal to $500,000
  • Due date—15th day of the 5th month after the fiscal year end date
    • June 30 year end and due date of November 15th
    • The actual tax return or extension needs to be filed by this date
  • 990-N Postcards—5 simple questions, recommend filing yourself rather than paying an accountant
  • Submit a copy annually to Presidents' Forum Treasurer and District Finance Secretary

Contracts

  • Approved Board Member Should Review and Monitor (provisions included in your Bylaws or Standing Rules )
    • Communicate to volunteers alerting them of consequences of using their personal credit card or signing a contract in their name
    • Look at indemnification provision
    • How are disputes handled-make sure venue is St. Louis County
    • Confirm Coverage for all events with PTO Today (800-557-2670 or insurance@ptotoday.com)

Insurance

  • What coverages should my PTO have related to:
    • The amount of money generated during the year or at a specific event
    • The amount of assets owned (cash and inventory)
  • District recommends to contact PTO today to ensure activities at your event are covered by the general liability policy (ex: baseball toss at school festival, dunk tank, mechanical rides are not )
  • Proof of Insurance requirements
    • School PTO Sponsored determines insurance coverage
    • Refer to flowchart document in the Presidents' Forum
  • Special event coverage may need to be purchased to cover events/activities excluded from the general liability policy. If an excluded activity is held on District property Rockwood requires following:
    • Calling PTO Today to see if Special Event insurance is
    • Hiring vendors to provide activities that are not covered under General Liability policy:
      • There must be supervision over the vendor
      • Vendor must have appropriate insurance
      • Vendor must Name your organization and the Rockwood School District (if on Rockwood property) as an additional insured on the vendor's policy (obtain copy and submit to the district if on district property)
      • Purchase special events insurance policy

PTO Bonds

  • It is expected that your organization purchase a bond to cover the person or persons responsible for keeping records and handling funds if your account balances are above $15,000 annually.
  • PTO bonds may be purchased from Arthur Gallagher or PTO Today.
  • How do you check your insurance coverage