Question: Do boards of education impose financial regulations?
We are being directed to register with our county’s board of education. The board requires that our treasurer be bonded, that we audit our books annually, and that we turn in a financial statement every month. Have you heard of this requirement?
Advice from PTO TodayElly writes:
Elly has heard of certain school districts or their municipalities imposing some type of fiscal regulation on their parent groups. In light of how many thefts and embezzlements occur within PTAs and PTOs each year (too many to count!), Elly thinks the guidelines being proposed make for sound business practice.
Purchasing bond insurance for your treasurer and anyone else who handles a significant amount of money is well worth it. A monthly reconciliation of your group’s account is a good idea, too. (You are simply verifying the balance in your account based on the transactions posted against your account at the bank.)
Besides being a good financial practice in general, an annual audit can highlight ideas for improvements in financial control and reporting. You should ask your board of education whether they will require you to hire a professional accountant to perform the audit or will allow your PTO to appoint its own audit committee (parents who are not officers) to do the job.
Check out the article “5 Smart Financial Controls” for more information to help your group stay financially sound. PTO Today also offers a discount on insurance through the PTO Today Plus program. Good luck!
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