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Budget and Finance Committee

The object of the Budget or Finance Committee is to develop a financial plan for procuring and apportioning funds to meet the needs of the year’s activities as planned by the PTA. Funds needed for administrative work, committee activities and programs, State Leadership Conference and convention expenses, liability and bonding insurance, special projects, district meetings, council dues if your unit pays a flat fee (not per member) for council membership, publications, scholarships, and other expenses should be included in your budget.

  • What is a Budget? Merriam-Webster’s Collegiate Dictionary defines a budget as, “A document of the financial position of an association for a definite period of time based on estimates of expenditures during the period and proposals for financing them.”
  • Who prepares the budget? A budget committee, which may consist of the treasurer, past president, members proficient in bookkeeping and the ways and means chairman. Check bylaws for the information and duties of the budget committee.
  • How is the budget prepared? Consider the amount of money on hand, study the receipts and expenditures of the past year, noting expenses to be repeated in the coming year, and consider the costs of new programs and projects. Study and compare past budgets.
  • Who decides about the budget? The budget is presented to the executive board for consideration and to the association for approval.
  • Where the State and National dues should be placed? THE STATE AND NATIONAL PTA DUES ARE NOT INCLUDED IN THE BUDGET. State and national PTA dues are shown on your monthly treasurer’s report as with all funds deposited into any PTA account. List the state and national PTA dues on the treasurer’s report in a separate section. If council dues are paid per member, record that as a separate line item in the section with national PTA and state dues.

HOW TO IMPLEMENT PLANS. Present a statement at each regular meeting of the executive board, showing amounts spent. Recommend to the association any budget amendments necessary for the effectiveness of the local unit’s work and to reflect the true financial picture of the association. It is important to remember that fundraising is not a primary function of a PTA. Before approving proposals for material aid to the school or community, the executive board should consider whether the proposed equipment or service is a public responsibility and should be paid for out of public funds. The adopted budget serves as a financial guide for the year and may be amended by a vote of the association at ANY regularly scheduled meeting or at any special meeting called for that purpose. Any additional expenditure not provided for in the budget must also be presented to the association for approval. The treasurer shall make disbursements in accordance with the approved budget, and the treasurer cannot pay bills not included in the budget until authorized by the association.

MULTIPLE ACCOUNTS. Under state and local bylaws, the treasurer is the sole, legally responsible, authorized custodian, elected by the members, to have charge of the funds of the PTA. At certain times there may occur circumstances when the PTA may want to have a separate bank account for a special project or function (i.e., after-prom party, after-graduation party, scholarship fund, etc.). THERE IS NO RULING FROM THE IRS OR STATE AND NATIONAL PTA THAT FORBIDS A PTA FROM HAVING MORE THAN ONE BANK ACCOUNT. However, any project, function, or activity sponsored by the PTA (i.e., voted on by the membership and using the PTA’s EIN number) that generates or uses PTA funds is the responsibility of the PTA Treasurer. Separate treasurers for specific projects are in violation of local unit, council, and district bylaws and are prohibited.