Our school district requires each school to do an audit by July 1st. They provide the audit form, which is straight forward. The audit is done either by 3 people not on the check book or by a CPA. It is sometimes easier to find a CPA than 3 people that would volunteer. Once the audit is done a copy is given to the principal, copy kept in the school records and the 3rd is sent to the district. If we do not comply they get very upset and could ask the PTO to fold. The location of the audit is up to the 3 people.

could you possibly send me your audit worksheet and instructions? Here is my email address.
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thank you,
salnavemom

I would suggest you go to the following site:
www.ptoatdanastreet.blogspot.com and read an extremely amazing/interesting story of one school's battle over auditing. You won't believe this. I think the body should vote whether or not to audit. If they do incorporate that into your by-laws and be specific about who should be doing the audit---outside or internally. You would be surprised at the trouble that can happen if you are not completely covered in your by-laws.

Any PTO or parent organization (or any entity whether formal or informal) that doesn't perform periodic audits (minimum of 1-per year) is headed for trouble if not in it already! That would be a-kin in my mind as not balancing the checkbook....which they didn't do in our PTO until last year when I was president (new to the school and president....not a good way to win-friends-and-influence-people, but that's another story). I audited the books myself because the bank book didn't match the bank statements, and the bank statements didn't match the books (financial records). No one knew which was right....but what I knew and told them was that we only had the money that was in the bank account and not a penny more. Where the missing $964+ was at, no one knew. Further, while the ByLaws required annual audits (during summer break, between school years)....they had never been done in anyone's recollection. So I did it myself....how can you be President without knowing the financial condition of the organization? I couldn't and more important wouldn't without understanding where $1000 could go without anyone knowing. I found all but $144.00, and it was all adjustments (things that should have been posted on the books and weren't found by balancing the bank statements each month). The $144 I couldn't find, I believe was attributable to the previous school year's books (they apparently were balanced either because previous officers had told me that there was about $100 or so that they couldn't find, or remembered was missing (gee...didn't anyone think to ask "why"????). Auditing is a Fiduciary responsibility....Officers are responsible....if you don't know what that means....ask one of the many corporate officers that are going to serve prison time for accounting scandals that rocked Enron and Worldcom and now Delphi....just to name a few. AUDIT! There is no reason not to. Further, you don't need approval by your treasurer, or the other officers, or the board members or the membership or your Bylaws! However, if you want to make it easier for everyone to digest, amend you ByLaws to require such (our did, although no one did until I...but better late than never). Again, AUDIT! It is a FIDUCIARY DUTY - a MUST! It's not an option. Officers don't seem to understand the PERSONAL LIABILITY they have to the PTO's (or whatever organization, whether formal or informal).... If money shows up missing and you haven't audited, you aren't bonded, you don't have insurance....and even if you do and the loss/liability is not covered...YOU as an Officer, can be personally liable/responsible to reimburse the PTO and members for the losses because you didn't act responsibly. REMEMBER, ignorance is not a defense. Not knowing the law, doesn't make you exempt from having to comply with it and being held responsible (civilly and/or criminally) for your actions or inactions (i.e., not auditing), or the actions of other officers, members, etc. I hate to repeat myself...but AUDIT. And if no one will audit for free (parent/member volunteer), then do yourself a favor (especially if you are an Officer) - audit yourself!

Our PTA had an audit at the end of each treasurer's three year term. We never paid for it either. It was usually easy enough to round up the old PTA treaurer or a willing self employed accountant.

When I first became Treasurer of our group and saw how much money was run through the accounts without an audit I suggested we set up some type of procedure. An audit was in our bylaws but had never been done. I handed the books over to our district's business administrator for review rather than pay for a private audit which can be costly. We now have instituted a policy where a different officer take the books home each month after our meeting to review them. It keeps me more organized and does not require a tedious year end review.

[ 07-15-2005, 11:32 AM: Message edited by: A2ZMom ]