New Chapter Accounting Operational Guidelines Briefing Leadership Conference October 12-14, 2011 Michael Kerns, Past-President National Capital Chapter Vince Miller, Regional Vice President Region VI

Why New Financial Guidelines? Reduces the risk of unlawful or unethical transactions. Reduces the risk of civil liability to Officers. Provides Best Practice Accounting Guidelines for Chapters to adopt. Provides “Transparency” of Financial Management of Chapter’s funds.

Chapter Risk Management Benefit of Chapter Articles of Incorporation –Updated annually by ASSE. –Limits liability to Officers and Members. –Protects not only the financial interests of each individual chapter, but the personal finances of each individual Society member. –Without incorporation, everyone’s personal finances can be at risk.

Chapter Risk Manageme Chapter Risk Management Chapter Policies and Procedures – Adopt Chapter Accounting Standard Operating Guidelines (approved by ASSE) Officer Training –Leadership Conference –Officer Central –Regional ROC meetings Internal Audits –Completed Annually –Hire CPA Firm when necessary –Upon change of Leadership

No monies obtained by the Chapter will be deposited into a personal bank account or any other account, which has not been approved by the Executive Committee. (cash receipts-A) All cash accounts owned by the Chapter will be held in financial institutions, which are federally insured and have been approved by the Executive Committee. (cash receipts-B) All disbursements must be pre-approved by a quorum of the Executive Committee. (cash disbursements-A) Checks shall never be written directly to an individual by the same individual. (cash disbursements-B) Approval for an expense by the member must be indicated on the check request voucher, or at minimum, by . (cash disbursements-H) Checks shall never be cashed through the petty cash fund. (petty cash-A) A single disbursement from petty cash shall never exceed a pre-set level, determined by the Chapter Executive Committee, such as $20. (petty cash-B) Musts & Shalls

The petty cash fund shall be operated on an impress basis which means the amount of the petty cash fund should remain constant: (example- change for meetings/PDCs) (petty cash-C) When it is time to replenish the petty cash fund, the Treasurer shall total out the expenses made and identify those expenses by general ledger account number. (petty cash-C1) In the absence of backup materials, receipts for the purchase must be provided to the Treasurer for attachment to the check request within two weeks from the check date. (purchases-A3) No alcohol may be included on an expense report. (purchases-C3) All contracts to exceed $1,500 over the course of the year must be approved by the Chapter Executive Committee and the contract approved by the Region VP. (purchases-E1) Any contract potential conflict of interest must be presented to the Chapter Executive Committee before the contract is accepted. (purchases-E2) The Minutes from each Chapter Executive Committee meeting shall reflect the submittal and approval of the monthly financial report by the committee. (financial reporting-1) Musts & Shalls

The Chapter Executive Committee shall approve new signers to each bank account. (new chapter checklist-A) The Chapter Executive Committee shall approve any new and necessary bank accounts. (new chapter checklist-B) As required, new signers shall complete the appropriate signature card and Chapter resolutions. (new chapter checklist-C) The President shall represent the Chapter at meetings and conferences, unless other attendees are needed. (travel-B1) The dates, location, and reason for travel must be identified and approved by the Chapter Executive Committee. (travel-B2) The vote to approve the travel shall include a discussion on the requested approximate travel expenses to be covered. (travel-B3) Musts & Shalls

Does the Chapter use a bank account authorized by the Executive Committee? Does more than one person have access to the Chapter bank account? Is the Chapter bank account in the Chapter ’ s name? Is the Chapter Articles of Incorporation up to date? Are more than one Officer listed on the bank signature cards? Does the Chapter use attendance records at events where money is received? Does the Chapter use a cash receipt book to record cash receivables? Does the Chapter conduct an annual internal audit? Does the Chapter audit cash receipts against the deposit slips and attendance records? Does the audit committee include members other than President and Treasurer? Does the Treasurer provide monthly financial reports? Financial “Red Flags” Exercise

Does the Treasurer respond to check requests and issue checks timely? Is the Treasurer employed? Does the Chapter use electronic banking and alerts? Does more than one officer have access to an authorized Chapter P.O. Box? Does more than one officer have access to Chapter bank statements? Does the Treasurer attend regular Executive Board meetings? Does more than one officer have access to other accounts (PayPal, Cvent)? Financial “Red Flags” Exercise

Resources Accounting Standard Operating Guidelines –Policies and procedures Electronic Banking – alerts, electronic statements Internal Financial Audits –Audit checklist –3 rd Party CPA Firm Officer Training –Leadership Training –Officer Central –Regional Operating Committee meetings ROCs

Forms Officer Turnover Checklist Check Request Travel Reimbursement Monthly Financial Report Cash Receipt Asset Log Meeting Attendance Log (used to reconcile with cash receipts) Internal audit checklist Financial Red-Flag Checklist

Questions ?