Appointing a Financial Review Committee

Question: 

I am the newly elected President of my local unit, and I have discovered that my predecessor did not appoint a financial review committee.  Should I ask him to do so now?  Also, from my quick look at the records, it appears that some items are missing—what should I do about those.     

 

Answer: 

Because you are now the President of your unit you are the person authorized to appoint a financial review committee.  Once you have made the appointment, the review committee should be given the financial records that you have, and the committee should note in its report what items, if any, are in fact missing.  Sometimes it’s just a matter of incomplete documentation, but other times the absence of information to support an expenditure could indicate a more serious issue, so until the review has been completed and the report submitted it’s difficult to advise what other steps—if any—you should take.  The review committee’s reports should include recommendations about how to make sure the unit’s financial records are complete going forward.

Treasurer Preparing For Next Year

Question:

I am the newly elected Treasure of my local unit, and I’ve received the check book and other financial records from my predecessor.  The financial review has been completed and everything was in order.  Fortunately all of our bills have been paid and we’re not planning on receiving any funds until late August.  Is there anything I need to do in the meantime to get ready for next year?  

 

Answer: 

Thanks for your willingness to step up to this important leadership position, and congratulations on getting off to what looks like a great start.  This time of slower activity is an opportunity to make sure the procedures are in place for the coming year.  For example, do you have at least 3 signers on the bank account, so that you’re able to have two signatures even when one of them is out of town?  Also, has your Executive Committee identified a non-signer board member to review the bank statement each month and then pass it along to you?  Even though the Federal income tax return (990, 990EZ or 990N) isn’t due until November 15th, you can file it early—and the same for your unit’s annual report to the Charities Program at the Washington Secretary of State’s Office, which isn’t due until next May 31st.  And of course don’t forget that even though there’s little or even no activity during July and August, you need to prepare and submit a financial report for those months, just the same as for the months when there’s a lot more going on.  Finally, make plans to attend your region’s Fall Conference and PTA and the Law workshops where you will receive a lot of useful information to help you be successful in this important role.  Keep checking your region’s web page on the WSPTA website for updated information about the scheduling of these events.

  

What to do When an Elected Officer Resigns

Question:

We elected officers last spring, but now one has had to resign because of a job transfer. Can the Executive Committee appoint a replacement?

Answer:   

Article 5, Section 6 (e) of the Uniform Bylaws covers this: If a vacancy occurs in an office, the executive committee may fill the vacancy until the next general membership meeting at which time nominations shall be made from the floor with the consent of the nominee. A quorum being present, a majority of all votes cast is necessary to elect. . . .  

So to answer your question, the Executive Committee makes an interim appointment to fill the vacancy, and then there is an election—including the nominations from the floor—at your PTA’s next general membership meeting.

Updating an Annual Review

Question:  

When I filed our annual corporation renewal with the Washington Secretary of State’s office in February, I noticed that there was a place to list the officers.  I updated the information then, but of course now our officers are changing—should I file another renewal? 

Answer:

Yes.  The law requires that any nonprofit corporation file an annual report during the month of the anniversary of its incorporation.  That report is required regardless of whether anything has changed since the preceding year’s report.  In addition, however, you should also update the annual report any time during the year that there’s a change in any of the required information, which includes a change in the officers.  The annual report can be filed online or you can download the form and file it by mail—either way there’s a $10.00 fee.  More information and a link to the applicable forms can be found on the Secretary of State’s website here.