Kirkwood School District | Westchester Elementary School

ATTACHED POLICY A

PTO FINANCIAL MODEL

 

Cash Receipts

 

1. Responsibility and accountability for control of cash deposits must involve two or more PTO members. Each person should count the money and sign the deposit slip.

2. Segregation of duties must exist.

   1. This means that the treasurer who records revenue should not handle or count deposits.

   2. If segregation of duties is not possible, the the PTO must have mitigating controls to ensure funds are collected and deposited properly.

      For example: The PTO is selling tickets to their carnival. Fifty $1 tickets are printed. When the deposit is made from the revenue of the ticket sale, a Reconciliation Confirmation slip should be completed. The person depositing the funds should account for all 50 tickets – by noting on the slip that 50 tickets were printed, 10 tickets were returned, and $40 was deposited into the account. If there are any discrepancies, it should be noted on the Reconciliation Confirmation slip and the president should be notified.

3. The PTO president or designee should review all deposits and Reconciliation Confirmation slips on a monthly basis to ensure that the deposits were made correctly and on a timely basis.

 

Cash Disbursements

 

1. A “Check Request” (Exhibit A) form should be completed and approved by the president and treasurer before purchases are made.

2. An itemized receipt or invoice for all purchases is required.

   1. If gift cards are purchased and given to teachers as a grant to purchase classroom items, the IRS requires the following documentation:

      1. Receipt for the purchase of the gift cards.

      2. Proof that the gift card was given to the teacher, “in furtherance of the exempt purpose of the organization” (IRS Statement). (PTO by-laws state the exempt purpose of the PTO.) The PTO can prove this by having approved grant documents and by proving that the recipient was a teacher for the district.

      3. Requesting receipts from the teachers for the items purchased with the gift card is not required by the IRS; however, the IRS thinks it's a good idea to do this.

• Checks should be made out to vendors whenever possible and not individuals.

• All checks should be signed by the treasurer and one other person. This will ensure that at least two people are involved in each disbursement.

• Under no circumstances should blank checks be signed.

• Check signers cannot sign a check made out to their self; two other people should sign.

• Check disbursements should be approved by the board each month.

• PTOs are exempt from paying Missouri sales tax. The vendor's name should be written across the tax exempt form to help prevent it from being used at multiple locations.

• The treasurer and all other individuals authorized to handle cash should be covered by a fidelity bond. Fidelity bonds cover losses sustained by fraudulent or dishonest acts.

 

Reporting

 

1. Bank statements should be mailed to the PTO president, not the treasurer.

2. The PTO president or designee should check to see that deposits are made timely and they should agree to the bank statement.

   1. The PTO president or designee should review the following items on each cleared check:

      1. Vendor and check amount should agree to the receipt.

      2. Check should contain two approved signature.

      3. Endorsement agrees to the payee.

• PTO president or designee must agree the prior month's deposits in transit and outstanding checks to the current bank statement to see that they cleared in a reasonable time.

• Bank accounts must be reconciled on a monthly basis before the financial statement is prepared (Exhibit B-2).

• Financial statements (Exhibit B) must be prepared and presented to the board monthly.

• Financial statements should list gross revenue by type or category and by event (do not net expenditures and revenue).

• Revenue should be reported in the same manner that is reported on the Form 990 tax return:

  1. Contributions, gifts, grants, and similar amounts received.

  2. Membership dues and assessments

  3. Investment income

  4. Special events and activities

  5. Sale of inventory

  6. Expenditures should be reported in the same manner that is reported on the Form 990 tax return:

  7. Special event direct expenses

  8. Cost of goods sold (inventory)

  9. Grants and similar amounts paid

  10. Professional fees and other payments to independent contractors

  11. Occupancy, rent, utilities, and maintenance

  12. Printing, publications, postage, and shipping

  13. Other expenses

• The financial statement should show the beginning cash balance and the ending cash balance.

• The beginning cash balance for the current period on the financial statement should agree to the ending cash balance on the prior month's financial statement.

• The ending cash balance on the financial statement should agree to the cash balance in the check register and to the ending cash balance on the bank reconciliation.

• PTO president or designee must review the monthly financial statements for reasonableness.

  For example: If there was a book sale during the month, the financial statement should show the revenue from the book sale and the related expenses from the book sale.

• PTO president or designee must agree the bank statement and bank reconciliation balance to the cash balance on the financial statement. The PTO president or designee must also agree the beginning cash balance for the current period on the financial statement to the ending cash balance on the prior month's financial statement (Exhibits B, B-1, and B-2).

• Bank statements and bank reconciliations should be presented to the board monthly with the financial statements.

• Copies of the bank statement, bank reconciliation, and financial statements should be sent monthly to the school principal.

• It is recommended that the books be reviewed annually by an independent certified public accountant or auditing firm.

 

School Principals

 

1. Principals should be aware of all PTO activities.

2. Principals must review the monthly financial statements for reasonableness. For example: If there was a book sale during the month, the financial statement should show the revenue from the book sale and the related expenses from the book sale.

3. Principals must:

   1. Agree the bank statement and bank reconciliation balance to the cash balance on the financial statement

   2. Agree the beginning cash balance for the current period on the financial statement to the ending cash balance on the prior month's financial statement (Exhibits B, B-1, and B-2)

   3. After reviewing these documents, sign them and send a copy to the finance department.

4. Since the procedures above are recommendations, the principal should be aware of which procedures have been implemented by the PTO and which procedures were not.

 

Year-End

 

1. The PTO president or treasurer must file the Form 990 or Form 990-EZ tax return by December 15^th. (Form 990 is due if the PTO's gross revenue exceeds $25,000 for the fiscal year; Form 990-EZ is due if the PTO's gross revenue is under $25,000 for the year.)

2. The PTO must send a copy of the Form 990 or 990-EZ tax return to the Kirkwood School District's Finance Office.

 

ATTACHED POLICY B

 

Westchester Parent Teacher Organization

CONFLICT OF INTEREST POLICY

Members of the Board of Directors of the Westchester PTO, officers, and members of committees with governing board delegated powers must at all times act in the best interest of the Westchester PTO. Members of the Board, officers and members of committees with governing board delegated powers shall disclose all potential and actual conflicts of interest to the Board of directors and, as required, remove themselves from all discussion and voting on any related matter. Specifically, members of the Board, officers, and members of governing board delegated powers, shall:

• Avoid placing self-interests of a third party above the interests of the Westchester PTO and avoid the appearance of placing self-interests or the interests of a third party above the interests of the Westchester PTO.

• Refrain from using Westchester PTO equipment, materials, resources or property for personal or third-party gain and from representing to third parties that your authority as a board or committee member or officers extends any further than that which it actually extends.

• Not engage in any outside conduct or activities that may be directly or indirectly adverse to the interests of the Westchester PTO.

• Not solicit or accept gifts, gratuities, free travel, or any other item of value from any person or entity as a direct or indirect inducement to provide special treatment with respect to matters pertaining to the Westchester PTO without fully disclosing such an exchange to the Board of Directors.

• Provide goods or services to the Westchester PTO as a paid vendor of the Westchester PTO only after full disclosure to, and with advance approval by, the Board of Directors and pursuant to any other related procedures that have been adopted by the Board.

• Not persuade or attempt to persuade any member, exhibitor, advertiser, sponsor, subscriber, supplier, contractor, or any other person entity with an actual or potential relationship with the Westchester PTO, or to reduce any benefit that may be provided to the Westchester PTO with respect to such relationship.

• A member of the Board shall not serve as a director concurrently with a member of his or her immediate family who is also serving on the Board.

• The Westchester PTO will not provide any remuneration to the members of the Board of directors for any services provided to the Westchester PTO. Any professional services or expertise provided by any director shall be considered as in-kind services to the Westchester PTO.

This policy shall apply to the members of the Westchester PTO Board of Directors and all members of all the Westchester PTO committees with governing board delegated powers, task forces and others in the Westchester PTO governance structure. On an annual basis, all individuals to who this policy shall apply shall be provided with a copy of this policy and required to complete and sign an acknowledgement and disclosure form prepared by the Board of Directors.

Westchester Parent Teacher Organization

WHISTLE BLOWER POLICY

The Westchester PTO Is committed to high standards of legal and ethical business conduct, the Westchester PTO is dedicated to acting in good faith with any officer, director, or volunteer (collectively, “covered person”) who raises concerns regarding any improper conduct, incorrect financial reporting, any unlawful activity, or improper conduct by any officer, director, or agent of the Westchester PTO.

Statement of Policy

No officer, director, or agent of the Westchester PTO shall take any harmful action with the intent to retaliate against any person. Nor will any officer, director or agent of the Westchester PTO take any harmful action with the intention of retaliating against any person for reporting any suspected misuse, misallocation, unlawful activity, improper conduct or theft of any resources of the Westchester PTO.

• Westchester PTO will not tolerate the harassment or victimization of any covered person who raises concerns under this policy.

• Westchester PTO will make every effort to keep the complainant’s identity confidential, with the understanding that details may need to be shared with appropriate authorities in order to investigate such complaints.

• Westchester PTO will not tolerate any allegations made in bad faith or with malicious intent.

Any concerns regarding any improper conduct shall be reported to the executive officers of the Westchester PTO. Those officers will determine the appropriate response, and whether to consult legal counsel. Any officer director or agent who may be implicated in such a report shall not participate in any discussions or deliberations related to the complaint, except to present information directly to the Westchester PTO on his or her own behalf.

 

 

 

 

Westchester Parent Teacher Organization

RECORD RETENTION POLICY

1. PURPOSE.

The purpose of this Record Retention Policy (“Policy”) is to provide rules for the proper retention and treatment of the records of the Westchester PTO.

 

1. RECORDS.

Records must be maintained as prescribed by law. However, records cannot be maintained indefinitely due to a lack of adequate storage space. It is the policy of the Westchester PTO to maintain complete and accurate records. Records are to be retained for the period of their immediate use, unless a longer period of retention is required for historical reference, contractual reasons, or for legal or other regulatory requirements. Records that are no longer required shall be destroyed.

 

1. RETENTION PERIOD.

1. Corporate Documents.

Articles of Incorporation, By-Laws, Resolutions, and Minutes Permanent

Annual Reports/other document filed with the state Permanent

Federal/State Identification numbers (EIN/TIN) Permanent

IRS Form 1023 and determination letter Permanent

B. Tax/Financial.

Financial statements, General Ledgers, Accounting procedures Permanent

Forms 990, or other federal or state tax documents Permanent

Investment records, cancelled checks, check registers 7 years

Bank Records Expense reports, invoices 7 years

Credit card receipts 3 years

C. Insurance.

Insurance certificates, claims, reports, disbursements & denials Permanent

Insurance Policies (after expiration) 3 years

D. Legal.

Legal Claims & legal correspondence Permanent

Litigation Documents (after litigation) 5 years

E. Miscellaneous.

Donor Records 7 years

Vendor Contracts/Warranties 7 years

Business Plans-Strategic or Fundraising 7 years

Grants Permanent

 

 

 

 

1. LITIGATION/AUDIT EXCEPTION

 

If a member of the Board of Directors, an officer, an employee or a volunteer (collectively, the “Covered Persons”) believes or is informed the records are or may be relevant to (i) litigation, (ii) potential litigation, or (iii) audit, then such Covered Person shall maintain such records until the President of Westchester PTO informs such Covered Person otherwise. In such a situation if Westchester PTO’s electronic information system would customarily overwrite, delete or otherwise loose any potentially relevant electronic records as a result of its routine operation, then such routine operations shall be modified to prevent any such overwriting, deletion or loss.

1. TEMPORARY RECORDS.

 

Temporary records, including but not limited to such items as: to-do lists, personal notes and drafts, shall be destroyed or deleted upon completion of the relevant matter. For example, each director’s personal board meeting notes should be destroyed or deleted with in thirty (30) Days after the adoption of the official minutes; prior drafts and notes should be destroyed or deleted within thirty (30) days of the time contracted is executed or the Westchester PTO determines not to enter into such contract.

 

1. DESTRUCTION/DELETION.

 

Except as otherwise provided in Section III, the destruction or deletion of any record shall occur at the end of the retention period for that record. Destruction of tangible records should be conducted by shredding or otherwise rendering the documents unreadable. Electronic records, such as email or voicemail, should be deleted from computers, telephones and any other relevant electronic device.