Is it is necessary for our PTA to conduct mid-year financial review even if we have never had a problem with financial reviews in the past?
While a financial review is required immediately following the end of the fiscal year (June 30), when another PTA member assumes treasurer position, or whenever there is a question about the financial well-being of a PTA, a mid-year financial review is strongly recommended for all PTAs. A mid-year review helps to assure that the funds of the PTA are being administered properly and that good financial practices are being followed.
The mid-year financial review should be conducted in the same manner as the one at the end of the fiscal year. The financial review committee must consist of no less than three members of the PTA whose books/records are being reviewed or a qualified accountant. Members of the financial review committee must not have signature privileges or live in the same household as someone with signature privileges on PTA documents during the period being reviewed. The treasurer is not physically present when the financial review committee meets, but should be available by phone to answer questions.
The treasurer should gather all the financial records for delivery to the financial review committee. A list of financial records needed for the financial review is found in the WSPTA Money Matters handbook.
After the financial review committee examines the records, it presents a written report of their conclusions to the board of directors.