Why to Audit or Not Audit

Audits... what are they, when and who should perform them, and what procedures should be followed.

Laws in some states do require 501(3)(c) organizations to hire a professional firm to complete an audit when gross income exceeds a certain amount. Connecticut State law statues however exempts Parent Teacher organizations from that statue.

We at Connecticut PTSA do strongly suggest however that you follow the recommended guidelines for an audit suggested by National PTA. There is a section devoted to audits in the National PTA Resource book, sent out to all local PTA Presidents last spring (the Resource is also located online in the Members Only area of the NPTA web site.

The purpose of an internal audit is twofold:
 
∞to certify the accuracy of the books and records of the organization
  
∞to insure the membership that the association’s funds are being managed in a businesslike manner

The finance section of the Resource book will guide you on how to conduct an audit. It might also be a good idea to have a provision in your unit’s bylaws governing who serves on the audit committee and when an audit is performed. It is especially recommended that a audit be performed after the closing of your units fiscal period and a report made available to your membership.  It is also suggested that when ever new officers, especially treasurer, take over that an internal audit be preformed before the books are handed over.

Remember, it is just not only the treasurer's sole responsibility to keep sound financial records, but the responsibility of every officer of that unit to be fiscally accountable to the general membership of that organization.

Should you have any questions regarding this matter please feel free to contact the Connecticut State PTSA office.