Parent Organizations: Accounting

  • Each PTO in the Plainview ISD district should have its own EIN to open a bank account. Banks cannot open an account using the District’s EIN or its Texas Sales Tax Permit Number. DO NOT USE the social security number of a parent organization officer to open your bank account.

    A basic checking account is the best type of account to open. It is best practice to instruct the bank on the following procedures for the account;

    • No debit or credit cards should be issued for the bank account
    • No funds should be wired from the account or transferred from the account to any other account
    • No ATM cards should be issued
    • Two signatures should be required on each check

     

    The two signature rule on each check written is to assist in establishing the best internal controls over check disbursements. The PTO should designate at least one or two back up signers in the event one of the regular signers is unavailable. All authorized signers must be organization members and MAY NOT be school district employees. Bank account(s) should be reconciled monthly. Each month, or meeting, the treasurer should present a financial statement, report, and reconciliation to the principal and the board for review. There is no regulation on carry-over balances but it is best practice to “earmark” any excess money for specific purposes, and designate as such in the treasure’s records. No special forms or reporting is needed for this. It is for internal controls only. The PTO should spend the funds raised during the year that the funds were raised. This allows current students and parents to see the benefits from the funds raised. Money may be saved for a large item or trip, but members must be informed of why an excess in funds exists and be given an explanation of how the funds will be used.

    Funds in the account CANNOT be used for:

    • Gifts to principals/sponsors
    • Gifts to the president/officers
    • Alcohol