2017 Chapter Leadership Training NOTES PAGES Secretary & Treasurer Dear Workshop Facilitator: Welcome everyone to the workshop – Session is 1 hr and 30 min. the real learning from this workshop will come from one another via discussion, questions, and maybe even some spirited debate. Format – Write down any questions you have on your handout (if you have one, otherwise, use the paper provided by the hotel. Feel free to ask any clarifying questions as we go through the presentation, but most of the learning will actually come after the presentation when we will have breakout sessions where your fellow attendees will help you brainstorm and share what has worked in their own chapter Chapter Leadership Training NMA...THE Leadership Development Organization

Definition: Secretary An officer of the organization who deals with correspondence, facilitates new members, and organizes official meetings and events. A SECRETARY has many administrative duties. In addition to serving as the “Office Manager” actions include: Communication throughout the organization Reporting actions Distributing notices and agendas Forwarding status reports Recording minutes Managing and maintaining membership records Preparation of meeting documents Coordinating with other Chapter Leaders Realizing that all chapters are different and that some chapters have different responsibilities assigned to different offices, here are the standard duties and responsibilities for a Chapter Secretary (they may be different at your particular chapter): Administrator Perform administrative functions record keeping reporting corresponding keeping & maintaining membership records preparing & distributing meeting notices/agendas coordinating with other chapter leaders Executive Committee Member Serve as member of the Chapter’s Executive Committee and participate in decisions and actions Committee Director Directs committees as assigned Directs the awards manager or perform these functions Chapter Office Manager Serve as office manager for the chapter

Administrative Responsibilities Maintaining Chapter Records Corresponding communication among prospective members, new members and Chapter Leaders Reminding membership about upcoming events Delegating to Chapter members for learning opportunities to emerging leaders Keeping Informed of changes in Chapter, Chapter host organization and how they relate to the National organization Compiling annual schedule of milestones and calendar of events Coordinating with Treasurer to maintain accurate membership records and reporting between NMA National office and the Chapter host organization Maintain all chapter records & keep up-to-date Minutes of board and executive committee meetings Maintain listing of committee personnel Obtain & file detailed reports and activities from committee chairmen Keep attendance records Process membership applications Keep record of expenditures for supplies, postage & equipment. This will be invaluable to your Treasurer! Keep record of all chapter correspondence Send all monthly membership reports to NMA headquarters Keep NMA headquarters informed on changes in officers, committee chairmen, company executives, election & installation dates, etc. This can all be done electronically. Report to president before each meeting, i.e., new members, chapter activities. Make annual report of chapter activities to chapter board of directors Maintain membership records, keep them up-to-date, and report any changes to NMA headquarters Remind Officers and members of upcoming events Send out notices of regular and special meetings Schedule meetings for all events to avoid conflicts in dates Compile and publish a calendar of these events Delegate a reasonable share of detail work to others Keep Informed - make an effort to keep informed about what's going on in the chapter

Communication Flow Chapter Other Chapters National Director Headquarters Area Council Chapter Communicator Establish communication links with other NMA entities NMA Headquarters National Director Council (if your chapter is a member of a council) Other NMA Chapters

Agenda: order of business Call the meeting Include when, where and anticipated duration Consider which stakeholders and participants are needed to achieve the meeting objective, and be careful not to invite more people than necessary. Perhaps smaller pre-meetings are beneficial? The specific objective or purpose of the meeting Composition Detailed, in a logical sequence and allowing the participants easy preparation. Attach further information, phrases or references that more participants otherwise will have to research individually. Content Time the agenda to continuously verify you are on track, and prioritize it in case you cannot complete the full agenda within the meeting duration. Remember to include time to end with a quick summation (minutes) of the achieved meeting objectives, decisions made and the open tasks with responsible names attached – all parts of good meeting facilitation. Keeping within the time of the agenda will make you a trusted and popular meeting facilitator! Advantages of an Agenda Keeps everyone on task Allows everyone to know the schedule Assures that all the pieces get attended to Reminds you to ask for the member input Assigns tasks of the project or event to the stakeholders – everyone knows what they need to do Agenda 1. Call to Order 2. Reports 3. Unfinished Business 4. New Business 5. Adjournment Purpose To bring logical order to a meeting Composition Most agendas consist of 5 parts: 1. Call to Order 2. Reports 3. Unfinished Business 4. New Business 5. Adjournment Content Agendas can be expanded as much as you please by simply inserting details, for example: 2. Roll Call 3. Reading of Minutes 4. Report of Secretary 5. Report of Treasurer 6. Report of Program Committee, etc.

Taking meeting minutes Content for the meeting minutes: The heading emphasizes the purpose of the gathering Information relating to the location of the meeting List of those who attended (included those via voice or video conference) The official time of the meeting dictates how management makes decisions and whether the quorum was met in the time frame Notes related to the meeting are essential for the minutes documentation, as these notes help verify the discussions and conclusions that took place Secretaries should document motions and vote counts for any polls conducted during the meeting, and the notes section should mention any consensus on critical topics It is important to mention the concerns of any parties opposed to specific actions A statement relating to the meeting officially adjourned represents the closing portion of the meeting minutes Content Date, place, and type of meeting For all board meetings, list names of all persons attending For general meeting, indicate only the number present or state that a quorum was present Every primary motion should be noted - BE SURE TO LIST THE NAME OF THE PERSON MAKING THE MOTION Debate on motions is usually not included; however, on key issues, it may be helpful to summarize pros and cons Indicate whether or not motion carried Include names of persons considered for membership Include names of persons appointed to committees, committee chairmen, representatives, delegates, & elected officers Include committee reports if they can be condensed into a paragraph; otherwise, ask report maker to submit a copy of the report and attach it to minutes Record results of voting Skeletonized Form Lists only major items, usually numbered Narrative Form Usually in paragraph form and contains more detail

REPORTING & RECORDING Important - Reference guide for reporting information: New Members: Never belonged and must pay one time registration fee Reinstated Members: Registration fee is waived for returning members Renewals: Current members renew their fees as the previous year Retired Members: Retirees staying with NMA pay no dues Spousal Members: Membership extended to spouses at $25 per year; discounts on conference attendance Dues: Fee schedule set up by monthly or yearly rates. Verify charter date to determine rates Registration Fees: Applies to new members – both chapter and individual Substitutions: Annual chapters may substitute for those dropped Registration fees still apply New Members New members who have never belonged to NMA--must pay one-time registration fee of $20 Reinstated Members Those individuals who have previously been a member of NMA and for some reason were dropped from the chapter roles--do not pay registration fee Renewals Current chapter members who are renewing their membership/ monthly or yearly Retired Members Those retiring from their company who wish to maintain a membership with NMA. Retired members pay NO dues Spousal Members Spousal membership dues are $25/year or $2.09/month; no $20 registration fee is required. Spousal members receive a 20% discount on conference registration fees when attending a conference with their spouse. Dues Association dues are $35 per member per year (for Payroll Chapters $2.92 per month); Chapters chartering after January 2009 pay dues of $48 per member per year (Payroll Chapter pay $4.00 per month). Registration Fees For those who have never been a member of NMA, there is a one-time registration fee of $20. Substitutions (Annual Chapters) New members may be substituted for any members dropped by the local chapter because of reasons making him/her no longer eligible to be an active member of the local chapter. Substitutions must be submitted at the same time as notification of the ineligible member’s cancellation. Only applicable to Annual Chapters that pay dues in advance. NOTE: If a substitution is a New Member, he/she must pay the one-time registration fee of $20. Important - Regularly report membership and send dues to NMA headquarters. You must work closely with your Treasurer to submit dues and your membership reports on time. REMEMBER: Late dues can make your chapter ineligible to give or receive awards Membership Listing Sent to chapter electronically prior to end of chapter’s fiscal year Update & email back to headquarters for membership reconciliation Membership Cards Upon request, will be sent to chapters upon receipt of their updated membership roster Will be sent to all new members if requested Membership Reports Two types - annual & payroll

REPORTING & RECORDING Important - Reference guide for reporting information: Membership listing: Forward listing to NMA National office prior to end of fiscal year Forward slate of incoming Chapter Officers to NMA National office prior to fiscal year end Membership cards: Upon request NMA National staff will send organizational membership card to all new members Membership reports: Both annual and payroll Chapter types. Work closely with President and Treasurer on these. Typically the Secretary has responsibility for the reporting and Treasurer responsibility is for the payment and its recording Tiered membership: Special category of membership above and beyond the Chapter member or Individual member class Senior member - Good standing 5 years or more with special leadership experience NMA Fellow - After 3 years of standing as a Senior member Fellow Emeritus – Fellow in good standing after retirement with continuing leadership contributions CAR-1 reports: Update CAR-1 forms recording Chapter activity. Submit updates monthly to the NMA National office New Members New members who have never belonged to NMA--must pay one-time registration fee of $20 Reinstated Members Those individuals who have previously been a member of NMA and for some reason were dropped from the chapter roles--do not pay registration fee Renewals Current chapter members who are renewing their membership/ monthly or yearly Retired Members Those retiring from their company who wish to maintain a membership with NMA. Retired members pay NO dues Spousal Members Spousal membership dues are $25/year or $2.09/month; no $20 registration fee is required. Spousal members receive a 20% discount on conference registration fees when attending a conference with their spouse. Dues Association dues are $35 per member per year (for Payroll Chapters $2.92 per month); Chapters chartering after January 2009 pay dues of $48 per member per year (Payroll Chapter pay $4.00 per month). Registration Fees For those who have never been a member of NMA, there is a one-time registration fee of $20. Substitutions (Annual Chapters) New members may be substituted for any members dropped by the local chapter because of reasons making him/her no longer eligible to be an active member of the local chapter. Substitutions must be submitted at the same time as notification of the ineligible member’s cancellation. Only applicable to Annual Chapters that pay dues in advance. NOTE: If a substitution is a New Member, he/she must pay the one-time registration fee of $20. Important - Regularly report membership and send dues to NMA headquarters. You must work closely with your Treasurer to submit dues and your membership reports on time. REMEMBER: Late dues can make your chapter ineligible to give or receive awards Membership Listing Sent to chapter electronically prior to end of chapter’s fiscal year Update & email back to headquarters for membership reconciliation Membership Cards Upon request, will be sent to chapters upon receipt of their updated membership roster Will be sent to all new members if requested Membership Reports Two types - annual & payroll

Membership worksheet This chart is to be submitted to the NMA National Office. Its purpose to list the actual current Chapter monthly membership totals List contact information so members may be included in the value added benefits of the organization. Submit with the NMA Payroll Dues form. On this chart is a copy of the “Membership Worksheet.” Simply click on the second tab on both the Annual Chapter Dues Worksheet and the Payroll Chapter Dues Worksheets and list the actual changes in your membership (2nd page of handout) The next chart shows when payroll dues must be paid.

Annual chapter dues schedule This schedule is intended to be a reference for the Chapter leaders for submission of the Annual NMA dues to the National Office There is a three month window for final submission, but there may be follow up from NMA National Staff or National Directors to Chapter leaders prior to or just after this time period IF YOUR FISCAL YEAR ENDS ON LAST DAY OF: YOUR NEW FISCAL YEAR BEGINS 1st DAY OF: DUES ARE PAYABLE TO NMA BY THE END OF: DUES ARE DELINQUENT IF NOT PAID BY: June July September 30 August October 31 September November 30 October December 31 November January 31 December February 28 January March 31 February April 30 March May 31 April June 30 May July 31 August 31 On this chart, you can quickly determine when your Annual dues must be paid and the date your chapter becomes delinquent if not paid on time. These dues are paid on a yearly basis. Usually, the secretary is responsible for completing the Membership Reporting Form and the Treasurer is responsible for writing the check and making sure the dues are received at NMA on time.

annual chapter dues worksheet This worksheet is invoiced by the NMA National office and to be returned electronically when complete It is a reporting form for number of members, registration fees and the annual fee for each member A check or electronic payment to be forwarded annually only to the NMA National office as noted on the annual chapter dues schedule On this chart is a copy of the “Annual Chapter Dues Worksheet”. The next page in your handout is a full page copy so you can read it easier. Chapters that chartered prior to January 2009 pay Annual Dues of $35 per member; chapter’s chartering after 2009 pay Annual Dues of $48 per member. All chapters are required to pay the $20 Registration Fee for new members.

Payroll chapter dues schedule This schedule is to be used as reference in determining when the dues are to be submitted to NMA National in order to make certain the Chapter stays in good standing There is a three month grace period, but communication may come from NMA National staff or National Directors to verify status prior to or shortly after the grace period IF YOUR DUES ARE PAID THROUGH THE MONTH OF: DUES ARE PAYABLE TO NMA BY THE END OF: DUES ARE DELINQUENT IF NOT PAID BY: June July September 30 August October 31 September November 30 October December 31 November January 31 December February 28 January March 31 February April 30 March May 31 April June 30 May July 31 August 31 On this chart, you can quickly determine when your Payroll dues must be paid and when your chapter becomes delinquent if not paid on time. These dues are usually payroll deducted and are paid to NMA on a monthly basis. The chapter secretary customarily prepares the Payroll Chapter Dues Worksheet while the treasurer is responsible for writing the check and making sure the dues are received at NMA on time.

Payroll chapter dues worksheet This worksheet is invoiced by the NMA National office and to be electronically submitted when complete A check with a copy of the form is to be forwarded to the NMA National Office, or send electronic payment on a monthly basis Its purpose to list the actual current Chapter monthly dues corresponding to the membership totals Submit with the NMA Membership worksheet form. On this chart is a copy of the “Payroll Chapter Dues Worksheet.” (distribute copies of Payroll Dues Worksheet handout) Payroll Chapters chartering after January 2009 pay $4.00 per member all other chapters pay $2.92 per member; again all new member are required to pay the $20 Registration Fee.

Definition: Treasurer The Chief Financial Officer of the organization who is entrusted with the receipt, care and disbursement of funds: charged with keeping, receiving and disbursing revenues A TREASURER has many administrative duties. In addition to serving as the “Fiscal Manager” actions include: Preparation of a well rounded budget Reporting balance of income and expenses Distributing financial reports Forwarding status reports Recording receipts on a timely basis Paying bills on a timely basis Managing and maintaining membership dues records Preparation of meeting documents Coordinating with other Chapter Leaders You don't have to have a degree in Finance to be the Chapter Treasurer but you do need to understand your responsibilities. You should be able to prepare a well-rounded budget. You must control the fiscal well-being of the chapter by keeping an eye on expenditures and making sure that people aren't going over budget. Prepare financial reports on a regular basis for your members (income & expenses). As Treasurer, you are responsible for both collections and payments. Your policies must be clear and public in nature. Remember, members (and often the company) has "invested" monies in the chapter organization. All the officers are responsible for making sure that the members (and the company if applicable) get a healthy return on that investment. Keep good records. Anyone can be audited so be prepared. Perception of how the office holder is viewed by the members is critical. Always make sure good business ethics are followed.

Transitioning Fully brief incoming Treasurer providing orientation to reporting format Provide organized information Analyze previous budget performance Learn from past mistakes Explain bookkeeping rationale Participate in all planning sessions as a mentor Keep goals front and center during the process Leave good records & instructions behind!!! Your chapter would be well served by having an Assistant Treasurer to groom for the following year. Fully brief incoming Treasurer Learn from past mistakes Explain bookkeeping and rationale Look at performance of prior budget Participate in all planning sessions Leave good records & instructions behind!!! Meet with Outgoing Treasurer and Gather Data Review and gather financial information from the current and previous budget AND income and expense statements. You need to find out where the money came from and where it was spent. Also, you need to ask yourself, who should be involved in preparing the budget? Schedule preliminary meetings with officers You should meet early with the previous officers and any company financial people if appropriate. Afterward, meet with current officers to determine the financial needs for the year. Make sure your budget supports the written chapter objectives. As you go through your budget process, you must ensure that your company goals are supported by your chapter goals and that your chapter goals are supported by the budget.

Budget Process A good budgeting process engages those who are responsible for adhering to the budget and implementing the organization's objectives in creating the budget.  Both the Executive Committee and Treasurer are built into the process and a timeline is established leaving adequate time for research, review, feedback, revisions, etc. before the budget is ready for presentation to the full board. The annual budgeting process should be documented, with tasks, responsibility assignments and deadlines clearly stated.  A good budgeting process also incorporates strategic planning initiatives and stipulates that income is budgeted before expenses.  Fixed costs are identified and related to reliable revenue.  Budgeting decisions are driven both by mission priorities and fiscal accountability. Decide who should be involved and when: The Executive team and others who have responsibility for adhering to budgets Write it down: Create a checklist to ensure thoroughness in the process and monitor progress Establish an annualized timeline: Have the budget approved by the Board at least two months before the new fiscal year begins  List specific tasks with specific responsibility assignments. List tasks specifically in the timeline.  If the responsible person knows he or she will be held personally accountable to have completed the assigned task by the deadline, it is more likely to get done List all sources of income - List all your sources of income including but not limited to member dues, fundraisers, registration fees, etc. Be conservative in projecting income. List all expenses expected for the year and make sure officers explain each expense - List all expense items you and your team feel will be necessary for the upcoming year and those involved are prepared to explain in detail each expense for which they are requesting $. Get a commitment from those responsible for their portion of the budget. List assumptions for upcoming year - You must prepare for those “unexpected” expenses which may happen during the year. Plan for contingencies/reserves to take care of those expenses that just “came out of the blue!” Also, you must plan for a shortfall in income. Present budget for approval - Present you budget to whomever is responsible for approving it. (A sample budget is in the Treasurer’s Guide.)

Banking All businesses need to deposit their money for safekeeping, to earn interest and to increase through investment To open a bank account, the non-profit organization must first obtain a Taxpayer Identification Number, or TIN. To apply, fill out the TIN application on the IRS website The bank account for the Chapter must be a separate account from the accounts of members Clear records should be kept of all funds deposited into the account. Financial Accounting Standard No. 116 and Financial Accounting Standard No. 117 mandate that nonprofits maintain a balance statement, a statement of cash flow and a statement of functional expenses All contributions to the account must be recorded before being deposited All authorized signers must be listed on the bank account. These signers must provide their names and social security numbers and they must put their signatures on file with the bank. Typically there are 3 signatures on file: President, Treasurer and senior leader. Keep these current annually. The bank will usually require a written description of the non-profit's check cashing procedures upon opening the account Never pay bills with cash. Remember to get receipt for any transactions Consider collecting Chapter dues via payroll deduction Your chapter may be better off banking with your company’s credit union or, if you are a community chapters, with a bank who has affiliated members; however, that is not always the case. You may want to shop around to see if you can find a bank with lower charges elsewhere. You must do whatever is best for your chapter. NMA headquarters has at least 3 signatures on signature cards filed at the bank . Suggestion: Perhaps the Treasurer and the Chapter President should be 2 of those signatures. If someone is out of town or if someone becomes ill, business must go on. This will ensure that your chapter’s income and financial obligations will continue to be taken care of in a timely manner. ALSO: Make sure all previous signatures on the chapter’s bank account are cancelled. If not, this can cause serious problems, delays in processing, etc. It is a good policy to require 2 signatures on checks or online payment approvals. It’s the policy of NMA headquarters that all checks and/or online payment approvals require 2 signatures. This helps avoid some costly mistakes and provides good “checks and balances” for the chapter. NEVER pay bills with cash. Always use a check OR online payments. Both methods provide sufficient proof of payment if needed. If your chapter does not currently collect dues via payroll deduction, perhaps you may consider doing so.

Fiscal reporting A fiscal report is written to document the Chapter’s honest financial status at any given time Example of key reports are: A Balance sheet, also referred to as a Statement of financial position, reports on a company's assets, liabilities, and owners equity at a given point in time An Income statement, also known as a Statement of revenue & expense, reports on a company's income, expenses, and profits over a period of time. A profit and loss statement provides information on the operation of the enterprise including the contributions and expenses A Statement of retained earning, reports on the changes in equity of the company during the stated period A Cash flow statement reports on a company's cash flow activities, particularly its operating and investing Compare monthly and year-to-date income and expenses actual vs. budgeted Distribute reports monthly to President and Executive Committee; Annually to membership Hold periodic reviews with the President and/ or Executive Committee (Discuss risks/issues/concerns) Coordinate with Chapter Secretary for reporting Practice “squeaky clean” ethics Financial reports should be shared with your chapter officers and board. To keep your members informed of the financial condition of the chapter, you can present a quarterly financial "update" at a general meeting or publish it in your newsletter. If you feel this is too frequent, you may present an Annual Report to the general membership. Information provided should be an income and expense statement as well as the end of month bank balance. Discuss any financial issues or concerns you may have with the board. As Treasurer, if you see something awry, GET ON IT before it becomes a real problem. Don't leave the president in the dark…don't wait until the end of the year to review chapter finances with him or her, either. Review finances with him/her on a regular basis. Also, Consider briefing the company management, so that you get their buy-in. It helps to have company support, especially if they are financing your chapter. Always practice “squeaky clean” ethics when dealing in your chapter’s finances.

taxes NMA has been assigned the 501(c)6 tax exempt status . All Chapters under the National umbrella have the same status Non-profits, charities, and other tax-exempt organizations are generally required to file Form 990 or Form 990-EZ or Form 990N along with Schedule A and Form 1099-misc with the Internal Revenue Service each year to maintain their tax-exempt status Form 990 is an "information return" and is required to be filed under the provisions of the Internal Revenue Code Section 6033 For more information go to https://www.irs.gov/charities-non-profits Each subordinate organization (chapter) must authorize (in writing) the parent organization to include it in the group exemption letter Each subordinate organization (chapter) must have an organizing document covering the nature and purpose of the organization Each subordinate organization (chapter) must agree to be subject to the general supervision or control by the parent organization Each subordinate (chapter) should be in the same fiscal year as the parent organization; not “must” but “should” The NMA was assigned the 501(c)6 tax exemption status in 1956 shortly after the name of the Association was changed from the National Association of Foremen to the present National Management Association. The local chapters of the NMA cannot be granted any other form of federal tax exemption except 501(c)6 since the law directs that the Federal Tax Code designation of the parent organization automatically establishes the Federal Tax Code designation of any affiliated body. Listed on the slide are the principle requirements for an organization to become affiliated under a group determination letter: Each subordinate organization must authorize (in writing) the parent organization to include it in the group exemption letter. Each subordinate organization must have an organizing document covering the nature and purpose of the organization. Each subordinate organization must agree to be subject to the general supervision or control by the parent organization. Each subordinate should be in the same fiscal year as the parent organization; not “must” but “should”. It’s only required if a chapter and “a central organization” are doing a group tax return. NMA’s fiscal year is January – December.

Tax forms to file Non-profits that are exempt from tax under the provisions of Internal Revenue Code Section 501(a) generally must file either Form 990 or the shorter Form 990-EZ or Form 990 N (postcard) each year. The non-profit can file the shorter Form 990-EZ if the organization has less than $50,000 in gross receipts. Gross receipts include all income from all sources during the tax year without subtracting any expenses. See:IRS Instructions for Form 990 Schedule A is used to report information that is not open for public disclosure. This includes information about the compensation of officers, employees, and independent contractors Form 990 / 990-EZ and Schedule A must be filed by 15th day of the fifth month following the end of the organization's tax year Form 1099 -misc is provided by a Chapter or entity when the individual or entity provides services and receives greater than $600 in compensation. Non-profit organizations are not exempt from filing Form 1099-misc The tax year for most non-profits ends on December 31st, so the normal filing deadline is May 15th. If the deadline falls on a Saturday, Sunday or legal holiday, the returns are due on the next business day Non-profits can request an automatic three-month extension of time to file all information returns by submitting Form 8868, Application for Extension of Time To File an Exempt Organization Return Form 990 N Income less than $50,000 Cannot file an extension No penalties for e-filing late Annual Electronic Filing Requirement for Small Exempt Organizations — Form 990-N (e-Postcard) Small tax-exempt organizations whose annual gross receipts are normally $25,000 or less ($50,000 for tax years ending on or after December 31, 2010) may be required to electronically submit Form 990-N, also known as the e-Postcard, unless they choose to file a complete Form 990 or Form 990-EZ. If you do not file your e-Postcard on time, the IRS will send you a reminder notice but you will not be assessed a penalty for late filing the e-Postcard. However, an organization that fails to file required e-Postcards (or information returns – Forms 990 or 990-EZ) for three consecutive years will automatically lose its tax-exempt status. The revocation of the organization’s tax-exempt status will not take place until the filing due date of the third year. Due Date of the e-Postcard The e-Postcard is due every year by the 15th day of the 5th month after the close of your tax year. For example, if your tax year ended on December 31, the e-Postcard is due May 15 of the following year.  If the due date falls on a Saturday, Sunday, or legal holiday, the due date is the next business day.  You cannot file the e-Postcard until after your tax year ends. Some general information you’ll need for completing form 990 (OR 990‐EZ, OR 990‐N (e‐Postcard).: Date of exemption letter‐February 28, 1945 Exemption status is 501(C) 6 This information is also found in the Treasurer’s Guide. In addition to the e-postcard, a form 1099 has to be completed when payments made to an individual exceed $600 in a calendar year. Remember this when you hire speakers, instructors, etc. Get their social security number (or Federal ID number), address, and phone numbers or you'll want to shoot yourself come January 31, the due date! Due on 15th day of 5th month after year end Loss of tax exempt status if no filing for 3 years Form 990 EZ Gross Receipts less than $200,000 Total assets of less than $500,000 File Form 8868 Penalty for filing late

Audit the books An ACCOUNTING AUDIT is the process of examining the NMA Chapter’s entire fiscal situation, with an emphasis on compliance with relevant reporting & handling standards, and promoting adequate cash handling policies The purpose of a financial statement audit is to add credibility to the reported financial position and performance of the chapter Financial audits make sure all legal and tax rules are being complied with, which can prevent an audit from the IRS, or different legal issues that can arise when fraudulent or incorrect information is presented Have company fiscal representative or a certified professional accountant audit the books annually. Make sure this is an objective third party. All financial information is to be stored reliably, securely, and in an organized manner. All relevant information, such as bank statements, cancelled checks, invoices, and receipts should be stored at least through the end of each reporting period. Having this information readily accessible will help to resolve any issues or discrepancies that arise. Review audit report and work with incoming Treasurer for implementation of suggested changes If an audit hasn't been done, make it your first order of business! This is a good business practice to have an audit or at least a review every year. This is also where good recordkeeping will have paid off!

Questions and answers What is the formal process in your chapter for preparing the membership reports? Do you have a checklist for the Secretary? Have you planned for the unexpected? How do you handle emergencies or last minute meeting/event changes? What can be pluses and minuses of a single point of contact? What is your transition process for the incoming Secretary? Any “tricks of the trade” that you wish to share for Secretary? Now, does anyone have any questions?? We are now going to break into discussion groups at the tables in back of the room. Please go to the table for the number you were assigned when you entered the room. This is the time to get your questions answered and learn from each other’s best practices. Each table should appoint an individual to keep track of the best practices on the notepad provided at the table. After approximately 45-50 minutes, we will ask each table to report out on their best practices. Some questions for discussion: How is most of communication handled within your chapter? How does your chapter report its membership? Is it helpful receiving invoices for your dues? How do you take minutes for your board meetings? How have you handled non-budgeted expenses or other surprises?? Do you feel you should provide monthly income and expense statements to the general membership each month?? After reviewing the items listed above, ask the question to the group: Have any of you been audited by the company OR IRS?? What is the formal process in your chapter for preparing a budget? Do you have a checklist for the Treasurer? Have you planned for the unexpected? Do you have a Reserve Fund? Does your chapter budget support the written chapter objectives?

Questions and answers What is the formal process in your chapter for preparing a budget? Do you have a checklist for the Treasurer? Have you planned for the unexpected? Do you have a Reserve Fund? What can be pluses and minuses of payroll deduction? What is the format of your Chapter fiscal monthly reporting? Have any of you been audited by the IRS? What is your transition process for the incoming Treasurer? Any “tricks of the trade” that you wish to share for Treasurer? What do you do if a check bounces? (You could also add that this would be expensive and with proper procedures and accounting…this shouldn’t happen.) How are checks to be made out? What kinds of receipts do you give? Any “tricks of the trade” that you wish to share? How or where do most of your group do their NMA banking? What types of "approvals" are needed for what kinds of expenditures? What can be pluses and minuses of payroll deduction?