Roberta Gorman Director of Membership August 2016 Section FINANCES Roberta Gorman Director of Membership August 2016

Section Guidelines: Operations Manuals Documents can be found here: https://www.smpte.org/about/policies-and-governance

Section Guidelines: Operations Manuals

Section Guidelines: Administrative Toolkit Guidelines for Section administration can be found in the “Sections Resources” section of the website, under the Local Sections menu item:

Section Guidelines: Administrative Toolkit The Administrative Toolkit contains Section guidelines, timelines, processes, and forms.

Section Guidelines: Administrative Toolkit The Section Administrative Toolkit : Section Calendar Section Election Information Governor Election Information Section Meeting Guidelines and Forms Honors & Awards Nomination Information and Forms Section Financial Guidelines and Forms

Section Guidelines: Budget Basics Budget Process for Sections to Receive Funding: 2017 Budget Form due 1 September 2016 To support your regular monthly Section activities Note: 2017 budgets will be reviewed for approval by Finance and Membership VPs with completed Q1 and Q2 Financial Reports (including receipts). Q3 2016 Financial Report (including receipts) must be received in order for your 2017 Q1 allotment to be deposited in January ALL Sections are REQUIRED to submit budgets & financial reports, even if you are not requesting any funds from HQ Admin Toolkit – Section Finances – Information on budgeting, deadlines, and guidance on completing the budget form Budget Deadline – New, earlier deadline to be included in Society budget

Section Guidelines: Budget Basics Fiscal Year – used to be different but was changed several years ago to match Society FY Please indicate currency Fill in Section Name Create Expected Income Categories under Income and budget. Be sure to include additional funds for which you are asking under “Budget Allocation.” Common mistake is leaving this section blank. Fill in actual Section income for current year from Financial Reports (totals must match). You can estimate Q3 and Q4 Create/Edit Expense Categories and budget Insert Actual 2014 Expenses from Financial Rpts. Q3 and Q4 can be estimated Chair and ST “sign” and date the bottom of form. Sponsorship – want to move toward more self-sustaining model

Section Guidelines: Budget Basics Society Fiscal Year runs from January 1 to December 31. When preparing your budgets, please keep in mind that we will be adjusting your quarterly allotments to account for the balance in your bank account as of Jan 1, 2017. So if your total budget request is $1,000 for 2017 And you have $500 in your Section bank account at the start of 2017 Only $500 will be deposited in 2015 Budget for any Outstanding 2016 Revenue or Expenses that you expect to be paid out in 2017 4th quarter 2015 expenses that might not be invoiced until 2016 If it’s not accounted for, you will not receive extra funding to pay 2016 expenses 4th Quarter 2016 income that might not be paid until 2017 Sponsorships for December meetings, etc. Accounting is done on a cash basis, not accrual.

Section Budgeting – What’s Covered? Society funds, whether advanced from the Home Office or raised locally, shall only be used for purposes that are necessary for conducting Section meetings and that benefit the Section membership as a whole. Section Funds cannot be used to entertain Section or Society Leaders Funds raised locally can be used to fund Governor travel to SMPTE Board Meetings or Conferences, and to cover any unbudgeted expenses. Guest Speaker Expenses (other than dinner) should not be included in the budget unless they are to be covered by sponsorships. Funds are for REGULAR monthly Section meetings, NOT special events. Section Funds should not be used to attend or exhibit at industry events or trade shows. Section in Membership OM related to International Section Chair travel Will go over Speaker Expense, Special Events, and trade shows

Section Budgeting – Speaker Expenses Sections can request up to $1,000 once per year to cover Speaker Expenses for a Section meeting. This request is separate from Section budgeted funds and, if approved, the Speaker will be reimbursed directly by HQ, not through the Section. Any additional Speaker expenses must be covered by sponsorships. Request for approval must be submitted to HQ and Membership VP no later than 60 days before the meeting. See Section 8.11.2 of the Membership Operations Manual for specific details.

Section Budgeting – Special Meetings What is a Special Meeting? Special Meetings – Section 8.11 3 of Membership Operations Manual Expenses are greater than $2,500, 3x the average monthly meeting budget, or 40% or more of the annual allotment from HQ. Event is an all-day event or longer. Admission fees are charged for attendance. Special Meetings fall into two categories: Special Events Section Conferences Special meetings – fall outside parameters of regular monthly meetings Meet one or more of the criteria listed

Section Budgeting – Special Meetings Special Events Purpose is primarily social (Holiday Party, Golf Outing, etc.) Proposal and Budget for the event must be submitted for approval, either WITH the Annual Budget or no later than six weeks before the proposed date of the event. Funds related to the event must be accounted for separate from regular Section funds. Separate funds – right now, separate accounting. In the future, perhaps separate bank accounts for larger events

Section Budgeting – Special Meetings Special Events – Included in Annual Section Budget

Section Budgeting – Special Meetings Section Conferences Purpose is primarily tutorial (Seminar, Workshop, Exhibit, etc) Proposal and Budget for the event must be submitted for approval no less than six months before the proposed date of the event. Funds related to the event must be accounted for separate from regular Section funds. Final accounting of finances due 90 days after event Separate funds – right now, separate accounting. In the future, perhaps separate bank accounts for larger events

Attendance and Exhibiting at Conferences and Trade Shows Section Funds are meant to be used for monthly meetings and activities that benefit the Section as a whole. Section funds are not to be used to cover registration costs for attendance at conferences or trade shows. Staffing a SMPTE Booth at a Trade Show can raise the visibility of the Society as a whole. Therefore, funding for these types of activities comes from the Society budget and not the Section budget. Requests must be submitted to and approved by HQ in advance of any commitments. Additionally, HQ might request Section assistance in staffing a booth at a trade show. Pre-arranged expenses will be reimbursed. Can accommodate a limited number of requests. Requests with projected expenses should by submitted in conjunction with their budget so that we can budget in Society budget. Regular attendance not guaranteed.

Section Guidelines: Financial Reporting Quarterly Financial Reports are due by the 15th of the month following each quarter: April 15, July 15, October 15 and January 15 Includes both income and expense actuals, with receipts, expense authorization forms, and bank statements (for non-US Sections) Funds are deposited in Section accounts quarterly Provided Section Quarterly Financial Reports are submitted first Reports filed more than 60 days following the close of a quarter will forfeit that quarter’s allotment To ensure timely deposits, please ensure Budgets and Quarterly Financial Reports are timely Invoices from past years that were not in the budget will not be covered Expenses must be submitted to the Secretary/Treasurer for payment within 90 days Reports filed on time – cannot submit reports at the end of the year and expect back payment of quarterly allotments Expenses submitted in timely manner – cannot submit expenses for payment from previous years etc.

Section Guidelines: Financial Reporting SMPTE Audit SMPTE undergoes a financial audit each year We are required to report on ALL SMPTE accounts. All Sections are part of the SMPTE organization SMPTE is legally and financially liable for all Section activities US Section Banking All US Sections have SMPTE-maintained bank accounts with Chase This should be the ONLY bank account for the Section Moved to electronic banking Non-US Section Banking Unless otherwise arranged, all Non-US Sections should have ONE SMPTE bank account Monthly bank statements are REQUIRED as part of your Quarterly Financial Reports Moving to HSBC Society must have visibility into all Section bank accounts. All accounts must be disclosed.

Section Guidelines: Quarterly Reporting Quarterly Financial Reporting Forms Quarterly Reporting Form Has 3 Sections: Bank Statement Reconciliation Accounts Receivable Accounts Payable

Quarterly Reporting (Example Case): 1. Bank Statement Reconciliation Remember, for our accounting and audit purposes, we need you to report expenses and income in the quarter in which they were paid/received Date from bank statement Check # - if applicable Budget Line Item – This should match the categories from your approved budget. Don’t include descriptions here. If there are unbudgeted items, mark them as Other Description column is where you can describe the particular expense/income Insert amount into debit or credit column and balance should calculate

Quarterly Reporting (Example Case): 2. Accounts Receivable If you are expecting to receive a payment, for example, from a Sponsor.

Quarterly Reporting (Example Case): 3. Accounts Payable Money that the Section has not yet paid out. For example: you are waiting to receive your allotment so that you can cover a particular cost. Or you are waiting for a final invoice for catering.

Section Guidelines: Quarterly Reporting DON’T FORGET Quarterly Reports MUST be turned in by the 15th of the month following the end of the Quarter: After 60 day grace period, allotment is forfeit Expenses submitted to Secretary/Treasurer later than 90 days afterward will not be reimbursed Monthly Bank Statements MUST be included with Reports for Non-US Sections Receipts for ALL expenses MUST be included with Quarterly Reports Each Expense MUST have an Expense Authorization Form No deposit for the next Quarter’s allotment will be made into your account until the previous Quarter’s Financial Report has been submitted Quarterly Reports (with associated bank statements and receipts) are REQUIRED of ALL Sections, regardless of whether you are requesting funds from SMPTE Receipts – if there are non-related expenses, please indicate. Include check number, particularly if one check was written to reimburse multiple expenses.

Section Guidelines: What’s New? From the Finance/Administration Operations Manual Section Contract Approval Authority All contracts with liability greater than $2,500 must be submitted to and executed by HQ Section Account Signatories Expense Authorization Forms Receipts – if there are non-related expenses, please indicate. Include check number, particularly if one check was written to reimburse multiple expenses.

Section Guidelines: What’s New? Section Account Signatories Finance Operations Manual, Section 4 Disbursements against Section-operated funds require two signoffs per disbursement. Expenses Submitted and approved by two signatories (usually Chair and Secretary/Treasurer) Receipts Attached to Expense Authorization Form and included in Quarterly Financial Reports This does not mean two physical signatures on a check. Instead, the two signatories must BOTH approve each expense before it can be paid. Typically the Chair and Secretary/Treasurer.

Section Guidelines: What’s New? Expense Authorization Form This does not mean two physical signatures on a check. Instead, the two signatories must BOTH approve each expense before it can be paid. Typically the Chair and Secretary/Treasurer.

Section Finances ANY QUESTIONS?

Questions? Thank you!