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This article is part of the following categories:
Finance & Budget Treasurer


Handling Cash: 6 Simple Steps

Handling Cash

You want to make the money you raise count for the school and the kids. Set up these six checks and balances to reduce errors and the risk of loss.

by Craig Bystrynski

1. Set Up One Cash Point. For any event, take cash at one place only. The fewer hands that touch it, the better. For the spring carnival, don't have people pay a quarter at each booth. Have them purchase tickets from a cashier. It's great to have volunteers help children at the holiday shop. But have the kids walk up to the cashier to pay; don't have them pay the helpers.

2. Create a Paper Trail. Always use paper receipts for cash transactions. This information is key in creating a budget, you should have it for the IRS, and it's smart policy to keep records to control your finances. You may make an exception for the carnival, where you are taking in a small amount of money many times over. But in this case you should tally each sale. At the end of the day, the number of tallies should match your cash receipts and it should match the number of tickets taken at each booth.

3. It Takes Two. Always have two people present whenever cash is around. Make it a rule that two people tend the cash box at all times, even if it's only a one-person job. Likewise, always have a least two people on hand when cash receipts are counted. After the cash is counted, have the counters each initial a form certifying how much money is being turned over to the treasurer.

4. Make Deposits Immediately. Never let cash—or any receipts—sit for a few days. Receipts should be deposited as soon as they're counted, certified, and turned over to the treasurer. If your event is at night, lock the money in the school safe and deposit it in the morning.

5. Keep It Simple. Never take IOUs. Tell people who say they'll pay later that you can't let them—PTO rules. Never mingle parent group money with your own. Don't ever, for example, deposit PTO money in your account, then write a check to the group for the same amount. Among other things, this is a good way to get in trouble with the IRS. And never float a loan to the group, then take the money out of cash receipts as repayment.

6. Cover Yourself. Get bonding insurance for your treasurer and anyone else who handles a significant amount of money. It's well worth the cost. Whether you see it this way or not, your group is a small business. Money should be handled in a businesslike manner. Doing anything else shortchanges the group and puts your finances at risk.



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Comments

  1. Posted by - Pam on Sep. 09, 2009

    I am the treasurer of our PTO and I use Quicken. I also used it at the last school my kids attended and it was very easy to pass off to the incoming treasurer.
    I can enter the budget for the year and can produce reports directly from the app. to show where we are on spending. It is also very easy to reconcile each month and produce a reconciliation report.

  2. Posted by - Jen on Jan. 13, 2009

    Does anyone know if there is a law on how long a treasurer can hold onto money from an event?

  3. Posted by - Busy Bee on Jan. 02, 2009

    We had an huge cash theft at our club and were doing most of these things but when you're dealing with thousands in cash, night after night and don't have the time to write up duplicate receipts, you have problems (ever try to hand write a cash receipt for a candy bar?).

    I did a cash flow chart and found numerous points where cash could be siphoned especially when you have five or six people making sales at any one time. You may know money is missing but trying to figure out who took it is the challenge. The money is long gone before the club's treasurer ever gets to see it.

  4. Posted by - Craig Bystrynski from PTO Today on Sep. 22, 2008

    Hi Riobin -- A little plug here. PTO Today has a system called Finance Manager that was created specifically for PTOs. You can find information on it here: http://www.ptotoday.com/manager/financeManager.html -- Craig

  5. Posted by - Kim on Sep. 12, 2008

    Our PTO uses quickbooks... from past experciences if the person does not have PC knowledge and some accounting experience it made it very difficult... especially the next treasurer who had to follow. I am personally looking for something easier that can be passed from one treasurer to the other and not have to have an accounting degree to do it. I personally like quickbooks, but I also have an accounting background.

  6. Posted by - Riobin on Sep. 11, 2008

    I was wondering if any other PTO's used any computer accounting systems like Quickbooks, etc...?

  7. Posted by - Marita on Sep. 04, 2008

    I am wondering if anyone has any policy or guidelines for the leader of a fundraiser. What rules would be good to protect the group and that person from mismanagement or unapproved "perks"?

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