Finance Committee Update Collegiate Treasurer Updates WE12 – November 9, 2012

Agenda Responsibilities of the Treasurer Records to be Provided to New Treasurer Recommended / Required Policy & Reports Annual IRS Reporting Details Instructions for Annual Report Financial Best Practices / Safeguarding Training Resources & References Questions / Contact Information

Financial Responsibilities of the Treasurer The Treasurer is part of the Executive Committee and works with the team to ensure the financial assets are tracked and protected, including: Collect, safely keep, and distribute funds Sign checks (along with designated others) Keep an exact accounting of all receipts and expenditures Prepare and submit the annual financial report to the Society Present a financial report at each meeting of the executive council, and answer inquiries on financial matters Assist in preparing the annual budget File annual e-Postcard or 990 tax forms Assume other financial duties as assigned by the section president or executive council, as applicable

Records to be Provided to New Treasurer When transitioning roles, the following should be available for hand-over: Copies of previous 2 annual financial reports filed with the Society Section/MAL/region EIN Financial institution(s) name, local branch, address, account numbers and on-line access information (new treasurer should change the password) All financial records from the previous year, including e- Postcard log-in (if applicable) List of currently authorized check signers Copy of budget (if approved in the prior fiscal year) Check books and registers Tax exempt paperwork, if applicable

Required/Recommended Policies & Reports Financial Policy – how assets are handled Investment Policy – types of investments permitted Program Plan – multi-year strategy for long term programs Examples of these and others are available in the Finance Manual Annual IRS Reporting e-Postcard IRS Form 990 or IRS Form 990-EZ Annual Financial Report – Due July 30th

Annual IRS Reporting Details SWE Exempt per 501(c)(3) of Federal Tax Code Collegiate Sections Using SWE Exemption: File tax returns under the SWE group tax exemption Collegiate Sections Using College/University Umbrella: Income Included in College/University Tax Reporting Levels of Reporting E-Postcard (Form 990-N); Income <$50K – Deadline Nov. 15th IRS Form 990 or IRS Form 990-EZ; Income >$50K See Finance Procedure for detailed instructions In 1992, the Society’s tax exempt status was extended to cover sections/MALs/regions, including collegiate sections, provided they (a) have their own EIN and (b) request the exemption status. Many SWE sections/MALs/regions have obtained an EIN in order to open a bank account and believe that is an indication that the IRS has approved them as a tax-exempt nonprofit, but that is not the case. The list of sections/MALs/regions covered under this letter changes from year to year. Contact SWE headquarters for more information. See the Finance Manual – (Item X - 501(c)(3) Reporting) for additional instructions on tax reporting.

Annual Financial Report Instructions Whoever is completing the annual financial report must first be listed as a leader of that region/section/MAL. Login to http://leadership.swe.org/logon.aspx for access to the Leadership Portal site. Select either the Section or Region Financial Report; MAL would select Region Select the appropriate section/region/MAL from the drop down menus and then select “Load Previous” Complete the form with the financial data for the year-end of the previous fiscal year Save the information and verify by signing with e-mail address (treasurer) A second individual, i.e. president, will then review and confirm the information is correct by signing off with their e-mail address When both individuals have signed off on the form, it is submitted to HQ.

Financial Best Practices / Safeguarding Yearly Financial Assessment is recommended, intended to: Safeguard the assets of the organization. Ensure the accuracy, reliability, timeliness, and integrity of the accounting and operational data. Promote operational efficiency. Ensure compliance with managerial policies, laws, regulations, and sound business practices. Make recommendations to improve accounting systems. Instructions and forms are available on SWE Money Audit and Assessment process and procedure should be part of your financial policies and procedures. The goal of this is to ensure accuracy, reliability, timeliness and integrity of the accounting and operational data of your section or region. It also will promote operational efficiency and ensure compliance of your processes, policies or regulations. An assessment in an internal review by a few SWE members of your section or region. With a good understanding of your policies and procedures, the committee or team of members would work with the section or region treasurer to walk thru the ledger, check stubs/bank statements etc. the review would be done to ensure these procedures were followed and the statements balanced and money was spent as per the budget. This may include motions from the secretary on changes to the budget also. The Finance committee has developed an assessment document as part of the finance manual so each section will be able to do an assessment easily. An external audit can be done by finding a local CPA who understands non-profit organizations. This can be done every 5 years or so, or whenever the assessment identified any discrepancies in the financial information. Additionally, some groups have conflict of interest policies. This is especially important when you have contracts with vendors and there are no conflicts then with any of your members in getting the best contract.

Training Resources and References Training Information Finance Manual – SWE Governance Documents Membership-Governance Docs-Procedures-B1310a Finance Manual Includes e-postcard instructions Region Conferences – Finance 101 Collegiate Leadership Coaching Committee (CLCC) Finance Modules SWE Money Community has information about: E-postcard Annual Financial Report Other Financial questions Finance Committee Members are available as mentors

Questions Penny Wirsing Treasurer LeeAnn Escobar Treasurer@swe.org LeeAnn Escobar Finance Committee Chair leeann.escobar@hotmail.com Cindy Hoover Finance Committee Chair Elect cindy.hoover@swe.org For resources go to the SWE Money Community. 10