The Construction Specifications Institute CSI Chapter Financial Education Webinar Series FY2010 #1: “Chapter Financial Management – An Overview” October 21, 2009

Your Hosts Today ~ Robert Simmons, FCSI, CCPR, BS, CEO CSI’s Director of the Northwest Region Chair of CSI’s Audit Committee Chair of CSI’s RAP Oversight Committee Walt Marlowe, P.E., CSI, CAE CSI’s Executive Director/CEO Shannon MacGregor, MBA CSI’s Director of Finance & Operations

Welcome! Introduction Course schedule, objectives Dues basics Policy basics Reporting basics

Financial Webinar Schedule 1.Oct 21, 2009 – Financial Overview 2.Dec 9, 2009 – Form Mar 24, 2010 – Budgeting 4.Jun 23, 2010 – Treasurer’s Orientation

Today’s Course Objectives General overview of the fiduciary role of the Chapter Treasurer Chapter dues management Importance of establishing fiscal policies Understanding the basic financial reports Role of the CSI Foundation

“…As Chapter Treasurer, you’re the financial focal point for your chapter, your president, and your board…. You’re the key contact for your chapter’s dues disbursement and recordkeeping…”

Leader Guides at

Dues Basics…. By Feb 1 st, Dues Updates to Institute By Apr 30 th, Officer and Chair Forms to Institute

NEW! Direct Deposit Program Get your money faster, safer Saves time – no more lost checks, no more trips to the bank Saves costs – less paper, postage Treasurers may come and go, but the bank account usually endures! Enrollment is voluntary, but highly encouraged

Policy Basics…. Financial Policy Investment Policy Document Retention Policy Internal Controls Policy Chapter Handbook

Reporting Basics… Tax exempt 501(c)(6) Fiscal year beginning July 1 Accrual basis of accounting Annual budget, and accountability Balance sheet Income statement Cash flow statement Other: status report on membership, etc.

Balance Sheet A snapshot in time showing assets, liabilities, and equity (or net assets) Assets = things you “own” Liabilities = things you “owe” Equity = your net worth

What to Look for….. Do assets = liabilities + equity? Have assets changed since the last reporting cycle? How do assets compare to liabilities? Any new purchases of fixed assets? Any new debt taken on?

Income Statement Shows revenues and expenses for a given period of time, resulting in a “bottom line” net Income = what you earn Expense = what you pay to generate the earnings

What to Look for….. Is revenue up or down? Why? Any changes to the primary sources of revenue? Are expenses up or down? Why? Which expenses have changed most significantly? How do expense changes relate to revenue changes? How does this period compare to prior periods? To the budget?

Cash Flow Statement Shows where you got the funds you used and what you spent them on Always in 3 parts: Operating Activities, Investing Activities, and Financing Activities

What to Look for….. Does the ending cash value = the cash line on the Balance Sheet? It must! Is operational cash flow strong enough to sustain the organization? Are there any apparent trends from the purchases and sales of assets and investments?

Treasurer’s Role Mentoring “First Things First” Duties and responsibilities Revenue oversight Other resources

Treasurer mentoring Chapter Finance Committee, working with the Budget Chair and Treasurer Identify your Committee replacement, Mentor a member Budget Chair, 1 to 2 years Treasurer, at this point you have worked with the chapter board Success is in continuity of the team

Treasurer; first things first Treasurer orientation, where are the books? Get with the previous Treasurer and the Bank to sign the signature card(s) on All Accounts. Review your financial history Develop a cash flow chart Build a Budget, Program # 3

Getting to be a Chapter Treasurer No formal financial background required – mostly “on the job” training at the chapter level Experience gained through participating as budget chair or finance committee chair Treasurer’s term is usually more than 1 year for continuity

Treasurer’s Duties Prepare and maintain the chapter budget Manage chapter cash and investments Provide financial reports to chapter board for monthly meetings Prepare region reports on the health of your chapter (membership trends, program updates, financials) Coordinate chapter audit by outside firm

Chapter Revenue Sources Chapter dues Product fairs Charitable fundraisers Interest income from investments Look for other financial opportunities (Take them to the Board)

Setting Chapter Dues Rates Treasurer performs dues analysis and presents findings to chapter board Dues increases may be needed to accommodate special programs in the chapter budget Chairs have input to Program meetings, where this information comes to light Rate changes due to Institute Feb 1, (This is mailed to your Chapter Secretary)

Treasurer Resources CSI Leader Guide for Treasurers at Chapter Leader Toolbox also at CSI Chapter Relations: or , ext State C.P.A. Societies Chamber of Commerce Local accounting service providers

CSI Foundation Mission and scope Activities and named funds

CSI Foundation Established 2003 IRS 501(c)3 corporation

CSI Foundation The CSI Foundation’s mission is to conduct research, education, and recognition in the area of process improvement of the built environment life cycle. In so doing, the program scope for the Foundation includes live and online continuing education; research and development; special recognition and scholarship programs.

CSI Foundation Scholarship assistance to students affiliated with the CSI Central Pennsylvania Chapter. Student activities and participation support at the CSI Annual Convention. Disaster relief and business recovery assistance to CSI members after the hurricanes of GreenFormat ( funding in partnership with the Pankow Foundation, BuildingGreen and CSI. Construction terminology development via the International Framework for Dictionaries in partnership with the National Energy Management Institute.

CSI Foundation CSI College of Fellows – Student and Emerging Professionals (SEP) Fund The SEP Fund was established by the CSI College of Fellows in Earnings from the fund are used to provide support of students’ and emerging professionals’ interest in the construction industry.

CSI Foundation CSI Central Pennsylvania Chapter Scholarship Fund The CSI Central Pennsylvania Chapter Scholarship Fund provides tuition, fees and books assistance to students enrolled in higher education programs with a high grade point average and who are involved in community and leadership activities. The CSI Central Pennsylvania Chapter Board determines the amount of each award and recipients annually.

CSI Foundation Dale C. Moll Student Activity Fund The Dale C. Moll Student Activity Fund was established to promote greater awareness of CSI to students completing studies in a construction related educational program. The Fund enables a student and faculty member from the student’s institution of higher learning to attend the CSI Annual Convention.

Any Questions? Thank you for your time and participation today!  Robert Simmons, FCSI, CCPR, BS, CEO  Walt Marlowe, P.E., CSI, CAE , ext  Shannon MacGregor, MBA , ext. 4730