RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International of the Americas July 16-17, 2012

Systems of checks and balances Assure integrity of financial assets Prevent opportunity for fraud, theft or embezzlement Best practice What are internal controls? 42nd Biennial Convention Soroptimist International of the Americas

Procedures to keep cash and checks safe Regular financial reports Segregation of duties Two signers on a bank account Reconciliation of the bank statement Lock and key Some examples... 42nd Biennial Convention Soroptimist International of the Americas

Helps to prevent fraud or theft Sets an environment for control Helps identify a loss quickly to minimize damage Provides members with assurance that the organizations money and assets are safe Why have internal controls? 42nd Biennial Convention Soroptimist International of the Americas

Club treasurers who kept no records or receipts Clubs not complying with IRS filings and requests Treasurers who have comingled club and personal funds Clubs whose only authorized bank signer left and took all of the money “But this can’t happen to us!” 42nd Biennial Convention Soroptimist International of the Americas

Financial policies Clear role definition Physical controls Handling cash Bank reconciliation Five essential internal controls 42nd Biennial Convention Soroptimist International of the Americas

Other best practices 42nd Biennial Convention Soroptimist International of the Americas

Part of internal controls Sources and uses of income Approved expenditures to reflect strategic plan Compare budget to actual Budgeting 42nd Biennial Convention Soroptimist International of the Americas

Keep receipts Keep good records Report financial results regularly Tracking expenses 42nd Biennial Convention Soroptimist International of the Americas

More than one authorized signer Signatures on checks Bank reconciliation Banking 42nd Biennial Convention Soroptimist International of the Americas

Protects your financial assets SIA has a plan available in US & Canada Bonding 42nd Biennial Convention Soroptimist International of the Americas

Register as a charitable organization Know your local, state and federal regulations Responsibilities in Fundraising 42nd Biennial Convention Soroptimist International of the Americas

Members section of soroptimist.org Sample club budget Club treasurer guidelines Club audit procedures 501(c)(3) Organizations information (US only) Resources Available 42nd Biennial Convention Soroptimist International of the Americas

Gaining 501(c)(3) Status Requirements Exempt purpose: charitable Not organized or operated for the benefit of private interests Does not attempt to influence legislation as a substantial part of its activities or participate in campaigning for political candidates U.S. Tax Related Issues 42nd Biennial Convention Soroptimist International of the Americas

Keeping 501(c)(3) Status Requirements All 501(c) organizations MUST file an annual information return: 990 ((the most in-depth version) annual gross receipts <$50, EZ (the short form version) annual gross receipts <$50, N (e-Postcard) annual gross receipts of $50,000 or less ; file online at : A filing receipt can be printed as soon as the filing is made online. U.S. Tax Related Issues 42nd Biennial Convention Soroptimist International of the Americas

Losing 501(c)(3) Status Clubs or regions that fail to file for three consecutive years will have their status automatically revoked by the IRS 13 clubs and 1region have been revoked Treasurer should provide proof of filing, and President should request proof of filing U.S. Tax Related Issues 42nd Biennial Convention Soroptimist International of the Americas

When SIA headquarters has word a club is chartering: Contact the club president with the paperwork to be part of SIA’s group exemption; copy the governor SIA requires: a letter requesting inclusion, an agreement to abide by exempt requirements, copy of club bylaws, and if incorporated, copies of the articles of incorporation New Clubs and Tax Status 42nd Biennial Convention Soroptimist International of the Americas

Thank You! We will now take a 15 minute break. 42nd Biennial Convention Soroptimist International of the Americas

WHAT ARE YOUR REGION’S FINANCIAL BEST PRACTICES? Small Group Discussion July 16-17, 2012

FINANCIAL BEST PRACTICES GROUP REPORT OUT Small Group Discussion July 16-17, 2012

Insurance packages through SIA’s insurance broker available in US and Canada: Club Liability Insurance Management Liability Insurance Bonding Contact Kaelin Hill, AH&T Insurance or Support Services for your Region and Clubs 42nd Biennial Convention Soroptimist International of the Americas

QUESTIONS? 42nd Biennial Convention Soroptimist International of the Americas

Thank You! We will now take a 10 minute break. 42nd Biennial Convention Soroptimist International of the Americas