Division Finances June 2018

Agenda Financial Process Overview Fiduciary Duties Financial Services IRS information Annual Budget Tracking Income and Expenses Monthly Financials

TCA Financial Process Overview Executive Director & Staff Have an idea … TCA Treasurer Presents idea to Finance Committee … Finance Committee Reviews & analyzes the idea & develops a motion … TCA Board Determines if idea is aligned with TCA Strategic Plan then approves & submits motion to the Senate …

TCA Financial Process Overview TCA Senate Discusses the motion … Motion Adopted!!

Corporate Responsibility Under Texas Law, “A division of a Corporation is not a separate legal entity but is the corporation itself.” Cash position w/ receivables & prepays just over $377,000 EEF investments exceed $220,000 Unrestricted investment account nearly $308,000 Total Assets $962,000 Current Liabilities $303,000

Fiduciary Duties Duty of Loyalty Duty of Obedience Duty of Care Requires the individual, when making a decision or acting on behalf of the association, to set aside personal or conflicting interests and act solely in the best interest of the association. Duty of Obedience Requires the individual to obey all laws pertaining to the association and act in furtherance of the association’s strategic purposes Fewer expenditures in Governing Body Admin, Personnel, General Admin Investments not performed well Net income at end of March: $185,000 Budgeted Net Income for all of FY 2016: ($15,369) Split w/ SSC yet to be allocated SLTI expenses Slow time of year for membership/conference income Duty of Care Requires the individual to discharge duties in good faith, in a manner one reasonably believes to be in the best interests of the organization. The individual must devote the time, attention and resources necessary to understand and prudently oversee the affairs of the organization.

Internal Controls Segregation of Duties Receipts Disbursements Keep more than one person involved Receipts Keep copy of receipts and invoices Disbursements Review appropriateness of payments Obtain required authorizations TCA Record Retention Guidelines are available

Financial Services 10% of Division revenue is retained by TCA to help cover bank charges and administrative costs to provide the following services: Process division membership applications Process division expense vouchers and revenue deposits Prepare quarterly division financial & monthly membership reports Distribute reports electronically to Division President, Treasurer & Director Financial & budget consultations upon request Preparation and filing of federal tax reports & annual audit Division dues changes are due by April and take effect in October Support for Division websites. Professional Development Grants up to $200 are available to support conferences in underserved areas Update Incoming Leadership contact information – President submits the annual report in June the incoming leadership As a reminder, all division dues rate changes should be considered early in the fiscal year by the division board. Implemented on October 2018.

IRS Information TCA is a 501c3 Tax Exempt Organization Allowed to take tax deductible donations from individuals. Currently the EEF (Educational Endowment Fund) is the program setup for donations. 2018 Mileage rate Effective Jan 1, 2018, the standard mileage rate for the use of a vehicle is 54.5 cents per mile. IRS Rules on Stipends & Reimbursements Stipends are considered income, therefore, instead of stipends, TCA provides reimbursements based on actual receipts.

Annual Budget In March, TCA provides each Division a worksheet with: Prior Year End Income & Expenses Current Year Budget Year-To-Date Income & Expenses A column for creating upcoming year Budget Create & submit your final budget to your board for approval Submit board-approved budget to TCA by the April deadline Division Budgets are included in the TCA Budget TCA Board & Senate approve the overall budget at June meetings

Annual Budget, cont’d Division Treasurer and President lead the creation of the budget Be ambitious and realistic as you prepare your budget Estimate the activities proposed for the upcoming year Income should reflect the current member counts or average of past years. Expenses should provide detail for each line item used. Use the historical financial reports as a guide. The June financials provide a 12 month cycle of actual data along with the detail of all income and expense accounts. Tie your activities back to the strategic plan Keep your budget notes on the spreadsheet Share the detail’s of the budget with the incoming leadership How to increase membership? As a volunteer with many responsibilities on your shoulders know your limitations and share that information with your division. Plan your year in advance: Schedule your Meetings now, follow-ups, Utilize TCA conference call system

Budget Template Changes this year: TCA staff prepares the templates for all twelve divisions Division calculates Proposed Budget for the new year The divisions needed to identify the strategic goal for the line item Finance committee approves each division’s budget.

Deposits Division income generated from membership and conferences/workshops Majority of income received through online transactions Check payments are received at a bank lockbox & processed by TCA office Funds collected at division events are sent to TCA office for deposit

Expense Voucher Use current Division Expense Voucher (PDF or Excel) All expenses require an account code (list at the bottom of the expense voucher) Approval by Division Treasurer or President required Treasurer or President cannot approve their own reimbursement voucher E-Signatures & email approvals are accepted Include copy of receipts (originals not required) Submit within 10 days of the expenditure (reimbursed within 30 days) Scan and email is preferred method of submission Keep electronic (pdf) copies for your records until reimbursement is complete

Expense Voucher

Financial Reports Monthly Membership reports Enrolled Member Roster Individuals who joined or renewed during the month Expired Member Roster Individuals whose membership expired at month end and who have not renewed by the time the report was pulled Total Current Member Count by type Quarterly Reports Budget vs Actual Income & expense compared to budget Profit & Loss Statement Income & expense for the current month and YTD Profit & Loss Detail Shows Individual account line item transactions Maintain contact. Prepare a mail merge from the membership list that is sent every month. Introduce your new members to your division – provide them a point of contact and reach out to those that do not renew.

Budget vs Actual

Profit & Loss

Income Detail

Expense Detail

The End