It's important to know about insurance for your PTA.
Make sure your PTA is covered!
There are various insurance providers, offering variable premiums and deductibles. As you search for coverage, please keep the following in mind:
What type? see below excerpt from Alabama State Dept of Education(ALSDE) policy for Parent Organizations. At minimum, they require a fidelity bond on treasurers. Typically bonds cover the entire board, not just the treasurer. Do you also need special insurance for events or maybe a media add on?
How much? Depends on your unit needs. Make sure you look at the deductible if the premium is lower than other providers.
What are the requirements to keep policy in effect? For example, AIM insurance requires annual review of the financial records and a signature on every bank statement from a reviewer not on the bank account. If you place a claim, and you have not done the requirements, your claim may be denied. See Requirements and Conditions under "What you need to know"
What is required for you school district? For example, Huntsville City Schools requires Proof of Liability when a PTA submits a Facilities Use request. There are some school districts that have expanded on the ALSDE's policy, make sure you find out if you district has additional financial guidelines.
AIM is an insurance provider in partnership with Alabama PTA. While we encourage you to make the best decision for your PTA, we have found AIM the most reasonably priced, including deductions, and provides excellent customer service. AIM Quick Guide
ALABAMA DEPARTMENT OF EDUCATION
FINANCIAL PROCEDURES FOR LOCAL SCHOOLS
APPROVED JUNE 10, 2010 (excerpt)
}Specific Requirements Parent organizations and booster organizations that maintain financial operations outside the control of the school could create a negative image for the school by failing to maintain proper accounting controls. Accountability for the funds these organizations control includes an agreement that:
a) The organization has obtained an employer identification number from the IRS.
b) The organization provides a report of the annual audit of the organization to the school.
c) The organization makes its financial records available to the school’s auditors and authorized school employees upon request.
d) The organization provides required financial reports.
e) The organization provides proof of a fidelity bond for the treasurer.
f) The organization will not provide any payment or benefit to a school employee (or family member of a school employee) in violation of the State Ethics Law.
}Parent Organizations Parent and parent/teacher organizations provide a vital role in the education of students. In Alabama public schools, the PTA and the PTO are the most common parent organizations. Many parent organizations join a national organization that serves the individual school organizations. Each of the national organizations publishes guidance for the financial operations of the individual school organizations. These organizations must have a separate employer identification number (EIN) and a separate mailing address in order to maintain their own records and accounts outside the control of the school.
}However, these organizations will become school activities if:
}a) Both parties mutually assent to the fiduciary control of the principal,
}b) A school employee leads fund-raising or maintains the accounting records for the organization.