Financial Review – So much fun, why not do two?
By Wendy DeLong
As a non-profit organization in the State of Washington, PTAs are legally required to conduct an annual review of the financial records after the close of each fiscal year (after June 30). As a best practice it is recommended that a PTA also conduct a mid-year financial review around the end of January.
There are three common reasons given for not doing a mid-year review:
#1: It is inconvenient & takes too much time to prepare
Truth: While a little extra work might be necessary to prepare for a financial review, the books and records should be kept up to date at all times, ready for examination. The only additional steps should be generating an up-to-date, interim financial report, a list of outstanding checks and making copies of the Financial Review Checklist for the committee – about 30 minutes of work.
#2: The treasurer feels this is a sign of mistrust
Truth: A treasurer should never view a financial review personally. It is simply standard practice for any business or organization, assuring everyone concerned that the finances are being handled properly and that all obligations are being met in a timely manner.
#3: It is too hard to find volunteers twice a year
Truth: It should be easier to solicit volunteers for two shorter reviews than for one that is only conducted annually. There is only half as much material to look through each time.
TOP TEN REASONS FOR CONDUCTING A MID-YEAR FINANCIAL REVIEW