Treasurer Training Penny Wirsing, FY13 Treasurer

Treasurer Responsibilities Recommended Policies Agenda Treasurer Responsibilities Recommended Policies General Financial Procedures Budgeting Fundamentals Assessment and Audits Fund Raising and Fund Development Financial Report Forms Federal Tax Exemption IRS Filing Requirements Additional Resources Finance Manual1 (Governance Docs) Page 2

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 HQ by 7/30 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 Note that other EC members have responsibilities as well

Records to be Provided to New Treasurer 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, possibly address where statements are sent) All financial records from the previous year, including e-Postcard log-in (if applicable) List of currently authorized check signers (may need to change) Copy of budget (if approved in the prior fiscal year) Check books and registers Tax exempt paperwork, if applicable See manual for recommendations on records to be archived

Recommended Policies Financial Policy (Appendix A, B and E) Covers how assets are handled, how changes in budget are approved, how to get reimbursed, etc. Investment Policy (Appendix C) Covers types of investments permitted We should not be investing for the sake of investing, there should be a purpose Program Plan (Appendix D) Multi-year strategy for long term programs, includes fundraising goals, funding from assets Examples of these and others are available in the Finance Manual

General Financial Procedures Basics for Safeguarding Financial Assets Keep records up to date Prepare monthly financial reports and provide to Executive Council for review Update bank signature card whenever changes occur Review bank statements and reconcile on a monthly basis Review invoices and supporting information prior to check writing Keep only small amount of petty cash Identify a treasurer known by others Do an internal assessment annually (covered in more detail, slide 9) Page 6

Financial Records Should include: Journal – to document income and expenses (ex. Quicken) Statement of Financial Position (aka Balance Sheet) – to measure “worth”, lists assets (inventory, accounts) and liabilities (payables)   2013 Budget Category Actuals 1.0.0 EXPENSES 1.1.0 Administrative 1.1.1 General 1.1.1.1 PO Box Rental 1.1.1.2 Letterhead 1.1.1.3 Postage - Misc. 1.1.1.4 Bank Charges Subtotal 1.1.2 Newlsetter 1.1.2.1 Printing 1.1.2.2 Postage 1.1.3 Region Meeting Travel 1.2.0 Continuing Development 1.2.1 Monthly meetings 1.2.1.1 Meals 1.2.1.2 Speakers Meals Page 7

Budgeting Fundamentals Simply a plan of expected sources of income and expense Should be drafted prior to year end with input and approval from incoming EC – budget can be amended but should be basis for $ Can be cash basis (recognized when received), or accrual basis (recognized when incurred) Events Remember to incorporate costs such as funds to be raised, minimum attendance requirements, taxes and gratuities, cancellation charges Dues Rebates Paid twice/year, must have submitted prior year financial report Checks not cashed within 6 months must be re-issued Page 8

Assessments & Audits Assessments (Section VII.A) Recommended annually by subcommittee of Section/MAL/Region Chair to be appointed by EC, plus 2 additional members Treasurer can’t be on committee but should provide information Objectives are to safeguard assets of the organization, ensure accuracy and integrity of data, and make recommendations to improve accounting systems Records are retained by Section/MAL/Region (do not send to HQ) Audits (Section VII.B) Recommended every 3-5 years if >$5K income or >$20K assets Must be conducted by a paid auditor – contact Audit or Finance Committee for more information Assessment Forms2 (SWE Money) Page 9

Fund Raising / Fund Development Fund Raising provides resources for activities Should be in keeping with professional image of SWE Donors >$250 should receive acknowledgement (Appendix G) Some states require registration to solicit funds See Finance Manual for examples, additional information Fund Development is building a long-term base Develop relationships with industry and/or individuals Builds on loyalty and consistency Should be integrated into long term strategic plan Don’t forget Program Development Grants, Matching funds Can also endow a scholarship through HQ Endowment FAQs3 (SWE Donate) Page 10

Financial Report Forms Located under SWE Governance, Financial Report Form Prepared by Treasurer, reviewed by President/Governor, due 7/30 Rebates are forfeited if report not submitted Two forms available, same for collegiates and professionals EZ Financial Report for <$10,000 Financial Report for >$10,000 Recommend On-Line Reporting Tool for Submittal SOCIETY OF WOMEN ENGINEERS SECTION FINANCIAL REPORT for year ending 6/30/2012 Please see report instructions below. FOR FISCAL YEAR: JULY 1,   THROUGH JUNE 30, (This report is due no later than 30 days following the close of the fiscal year (June 30th). A section's dues rebates will be withheld if the section has not filed a financial report for the preceding year.) Section No. Section Name President's or Permanent Section Address: Is the Section incorporated? If Yes, in what state? _____________________ Did the Section file an IRS 990/990T form? TAX IDENTIFICATION NUMBER (TIN) Financial Report Instructions4 (Governance Docs) Page 11

Request for Tax Exemption5 All sections can be covered by SWE 501(c)3 status Provides exemption from federal taxes, allows certain donations Many sections already are – contact HQ to confirm Individual sections need to request this of HQ by March 1 Must obtain a section EIN# prior to request (Appendix F) HQ files documents by end of March annually Some collegiate sections may be covered by their university State tax exemption Varies by state, must be pursued by individual Sections/MAL/Regions Request for Tax Exemption5 (Governance Docs) Page 12

IRS Filing Requirements Submit between July 1 and November 15 For sections with gross receipts <$50,000 Submit IRS Form 990-N Commonly referred to as the e-Postcard For sections with gross receipts >$50,000 Submit a full IRS Form 990 or 990EZ SWE does not cover any of this filing for the sections What happens if you don’t file? You risk losing your tax-exempt status!! Go to www.irs.gov/eo for complete details or review the information in the Finance Manual (Appendix H) Page 13

Finance Manual Updated in July 2012 Everything you need to know is in here – please provide feedback for additional clarification or topics Located in SWE Governance Documents and SWE Money Community Finance Manual1 (Governance Docs) Page 14

For Finance Questions or More Info Penny Wirsing, FY13 Treasurer treasurer@swe.org LeeAnn Escobar, Finance Chair finance-chair@swe.org Cindy Hoover, Finance Chair-Elect cindy.hoover@swe.org On-Line Resources SWE Communities – SWE Money SWE Governance Documents IRS Web page: www.irs.treas.gov Page 15