Audit Committee

The role of Auditor is an important function for PTSA in order to ensure financial compliance and reporting requirements are met. Auditing shall be performed as follows:

• Monthly audit – to ensure all transactions are recorded correctly and compliance requirements are met. Monthly audit committee meetings are conducted virtually, and take ~30-40 mins
• Annual Audit – Ensure the annual goals and EOY reporting requirements are fulfilled.

Monthly Audit Process

This checklist covers the requirements of the monthly audit. Perform the following steps:

1. Review Audit Report from previous month: insert audit report below from last month
   Any ongoing issues that impact this audit?
2. Review Balance Sheet as of insert date
   1. Should only see ‘Totals’; For accounts receivable and assets, only $0s should be displayed.
   2. If there are amounts other than $0s…Treasurer should resolve & reconcile before audit
   3. Balance Sheet Total for Checking Account reflects the Bank Statement Checking Balance minus liabilities (usually uncleared checks).
      • BB&T — Checking Account $….
      • BB&T IDA Account (Money Mkt) $….
      • Stripe $….
      • Total Bank Accounts $…
      • Total Current Assets $…
      • TOTAL ASSETS $…..
3. Compare Bank Statement (Combined) with Reconciliation Checking
   1. Note the ‘Reconciliation Date’: for period ending insert date, reconciled insert date
   2. Compare statement ending balances:
   3. Note the ‘register balance’ as of ‘reconciliation date’: This reflects the accounts balance minus liabilities (essentially uncleared checks that are outstanding and are beyond this reconciliation date).
   4. Review cleared checks: look at name, date, amount.
   5. No need to look at uncleared checks that beyond the ‘reconciliation date’.
   6. Review bank expenses.
   7. Review Images of cleared checks (bottom of Bank Statement): can spot check signatures & amounts.
4. Compare Bank Statement (Combined) with Reconciliation Savings
   1. Note money market interest. =
5. Compare Bank Statement (Combined) with Stripe Reconciliation
   1. Verify funds have been transferred to the checking account and properly categorized in QuickBooks.
6. Review Statement of Activity.
   1. Compare Income Totals with those reported in Combined Bank Statement:
   2. Compare Income check deposits with Banking Deposits noted on Audit Page.
7. Review Budget versus Actual
   1. Are any budget items exhausted?
   2. Encourage staff to utilize funds in a timely manner.
8. Check & Reconcile PTSA membership numbers.
   1. Pass-Thru Income/Expense for State and National Dues, ($4), is tracked separately from Local Membership Dues ($11.).
      • Membership – Local Dues $……
      • Membership – State & Nat’l Dues $……
   2. Check that the number of members match based on Local and State & National Due collected.
   3. Check that Pass-Thru Income for Dues has been disbursed to PTSA.
   4. Compare with report on ‘Home’ Audit Page:
9. Review Claim Archive on ‘Home’ Audit Page
   1. Note that ‘check numbers’ should be in numerical order.
   2. Spot check claims for: 2 signature authorization, justification, receipt images:
   3. Remember, claims are capped as declared in the PTSA Budget (see Budget versus Actual doc)

Annual Audit Process

Key Links:

• NC PTA End of FY Check List
• NC PTA End of FY Boot Camp