Friday, August 12, 2011

Who can be on a financial review committee?

We are getting ready to conduct our annual Financial Review, and both the outgoing and incoming treasurer have expressed a willingness to serve on the Financial Review Committee.   According to the Money Matters section of the Leadership Packet (page 16), the outgoing treasurer is “not a member of the financial review committee [but] a resource to the committee [who] is normally not present when the financial review committee meets, but should be available by phone to answer questions.”  However, having the outgoing treasurer present would seem to expedite the process because she is very familiar with the financial records, and the incoming treasurer should start getting familiar with the records.   Why can’t they both be members of the committee? 

Under the Uniform Bylaws, no one who had signing authority on the PTA’s account(s) can be a member of the Financial Review Committee.  Assuming the incoming Treasurer was not a signer on the account during the past year, appointing that person to the Committee is a very good idea for the reason you mentioned.  The purpose of the financial review is to provide an independent review of the PTA’s financial records, which can only take place in a setting where the committee members will not feel reluctant to ask what may be difficult questions.  That’s why WSPTA recommends that the outgoing Treasurer not be present, but be available to answer questions.