I'll second the others...an audit is to protect the treasurer, not just to find fault. I have a worksheet we've used for our volunteer auditors in the past. We ask for a volunteer through our school newsletter and do the review in July. Basically the process evaluates the use of financial controls, ensures the account has been reconciled each month, and reviews record-keeping. I'll email you our worksheets and cover letter if you send me a message at gcforhanATjunoDOTcom.
I'm an optimist generally. Hopefully your treasurer is just in over her head and embarassed, not doing anything knowingly shady.
My first suggestion is to look in your bylaws and see if they say an audit is required. Our bylaws do, though I don't know if we actually do them. If it is required, the treasurer really doesn't have any ground to stand on to fight it and it wouldn't have to be done anonymously. The other board members should bring it up in a meeting, schedule it and get it done.
If it isn't in your bylaws, someone should make a motion to add it. Also, I would suggest being straight forward with the treasurer about wanting to do the audit. I'm not a big fan of the anonymous thing as it just creates more secrecy/cliques/problems. You don't have to be confrontational and you should have the support of the rest of the board so that it isn't a you vs the treasurer contest.
In my mind, the treasurer should be the one suggesting the audit. I say this as the treasurer of our PTO. I am the one pushing to get an audit done as well as putting in better controls wherever there is money being handled.
Now, just to play Devil's Advocate, maybe there isn't anything sketchy going on with your treasurer. Maybe, they are just concerned that the audit will turn up mistakes and that they will look like they are incompetent. Remember, not all PTO treasurers are CPAs. I'm certainly not.
An audit only needs to be done by someone within your organization. I wouldn't go to the expense of an accounting firm.
If she doesn't want an audit she is hiding one of two things. She doesn't know what she is doing, and her books are a mess, OR she is doing something wrong.
Explain to her that the audit protects HER more than anyone else. Once the books have been audited and been approved by a third party she is clear of any accusations that might come up in the future.
My next suggestion is to make sure that your organization has insurance. We insure our PTO for several different things, one of them being fraud. That way if she is stealing...at least your organization will not be out the money when she is caught and brought to justice.
Our bylaws require an audit at the end of every school year.
Instead of paying for someone to perform the audit, why don't you find a parent volunteer who is in the finance business or who performs audits for a living. This year's audit was performed by a friend of a parent on the executive board as a favor. The PTO parent audited this person's church records in exchange for auditing our records. [img]smile.gif[/img]
If the treasurer is dragging their feet, I would ask your principal. Our bylaws do not require aduits be done but I have never had a problem showing people what they want to now as well as where we are in our budget for the year and a profit and loss statement to show it all in an organized manner. My experience, is that if a treasurer isn't forthcoming with information there is a reason and you shouldn't back down until two people, including a board member review the information and make sure it is not only all accounted for but in order.
The irony of commitment is that it’s deeply liberating-in work, in play, in love. The act frees you from the tyranny of your internal critic, from the fear that likes to dress itself up and parade around as rational hesitation. To commit is to remove your head as the barrier to your life. --Anne Morris
Our PTO needs an audit. A few months ago a parent in the organization suggested an audit be done due to his feelings of the treasurer stealing/mishandling funds. Can anyone who has had an audit give me a round-about price? I know every area is different...I've heard between $300 and $1200. How about any advice for approaching the treasurer? I'd like to find a way to have the school approached anonomously (sp?). Thanks in advance for the help!
