What is an Audit?
Auditing involves following financial transactions through the records to be sure that receipts have been properly accounted for and expenditures made as authorized in the budget, as approved by the general membership and in conformity with PTA bylaws and standing rules. The audit must review all accounts of the PTA.
Committee Composition
The committee is composed of not less than three members appointed by the executive board at least 30 days before the last meeting of the year (check your Local PTA bylaws, *Article XV, Section 2).
No one who is an authorized check signer on any bank account may serve on the committee. It is recommended that the incoming treasurer not serve on the committee.
When is an audit performed?
An audit is performed:
- at the end of the fiscal year.
- when any authorized check signer is added or deleted on any bank account.
- any time deemed necessary by the president or three or more members.
Preparing for the Audit
The outgoing treasurer is responsible for putting the financial records in order for the committee. The outgoing treasurer delivers all materials to the Audit Committee chairman.
Once the records are turned over to the committee, the outgoing treasurer can no longer write checks. The treasurer should go to the bank immediately with the incoming treasurer and additional authorized check signers to change the signature cards. During the audit, checks should only be written in the case of an emergency and would be signed by the incoming treasurer. Any deposits should continue to be made.
See the PTA Handbook for further instructions.