1. Chapter Finances: Leveraging TCA’s Resources
Texas Counseling Association

2. Strategic Direction
TCA has a secure organizational structure with sound fiscal management.

3. Agenda Financial Process Overview Fiduciary Duties Treasurer Duties
Internal Controls
Financial Services
IRS Information
Annual Budget
Income
Expenses
Monthly Financials

4. Putting It All Together …
Executive Director
& Staff
Have an idea …
TCA Treasurer
Presents idea to Finance Committee …
TCA Board
Determines if idea is aligned with
TCA Strategic Plan then approves
& submits motion to the Senate …
Finance Committee
Reviews & analyzes the idea
& develops a motion …

5. TCA Senate
Discusses the motion …
Motion Adopted!!

6. Corporate Responsibility
Under Texas Law,
“A Division of a Corporation is not a separate legal entity but
is the corporation itself.”
Each of you may have different business setup.
Corporate, Private or Public , LLC, Partnership, or S Corp.
Non-profit fraternal 501(c)(10)

7. Fiduciary Duties Duty of Loyalty Duty of Care Duty of Obedience
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 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.
Duty of Obedience
Requires the individual to obey all laws pertaining to the association and act in furtherance of the association’s strategic purposes.

8. Treasurer Duties
Receives and deposits all revenue and makes disbursements as directed by the Chapter Executive Committee or Board.
Maintains accurate business records and provides regular financial reports to the Chapter leadership, Board and members.
Is a signatory on Chapter bank accounts, along with the Chapter President, as designated in Chapter by-laws or governance manual.
Coordinates the annual audit of the Chapter financial records with the individual (other than the treasurer) appointed by the Board or President to conduct the audit.
Coordinates the preparation of an annual Chapter budget.
More than one person is a signatory on bank accounts. Try for people with staggered terms so everyone not leaving at once.

9. 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
Reconcile bank statements monthly
TCA Record Retention Guidelines are available
Segregation – more than one person receives monthly reports
Receipts – not necessary to have “originals”, copies and scanned documents will work
Disbursements/Authorizations – do not sign your own checks, expenses over a certain amount should require two signatures, permission from board to exceed a budget line-item
Reconciliations – credit cards should be reconciled just like a bank account
Recommend keeping an electronic back-up of financial files & documents in a separate location
Don’t send confidential info via – passwords, acct numbers, etc

10. Internal Controls Manage Bank Accounts
Statements should be reviewed by more than one person
Look at beginning and ending register balance and compare to statement
Look for unusual transactions
Review all checks distributed
Confirm authorized signatures only
Have someone else opens and review bank and credit card statements.
Review cleared checks – correct signatures, amounts, etc.

11. Internal Controls
File timely tax return (engage CPA services suggested)
File timely sales tax and Franchise reports (as applicable)
Insurance
General Liability
Non-profits are not automatically exempt from sales tax and franchise tax. Need to apply for exemption separately.

12. A La Carte Services
TCA provides “a la carte” services to Chapters upon request.
Online membership dues management and database lists (chapter website required)
Online event registration (required if using TCA’s CEU provider number)
Financial & budget consultations

13. Financial Services
20% of any Chapter revenue collected by TCA is retained by TCA to help cover bank charges and administrative costs to provide the following services:
Process online chapter memberships and/or conference registrations
Monthly distribution of funds and membership reports to Chapter Treasurer
Mailed memberships & registrations should go directly to the Chapter, not the TCA office.
Communicate regularly with TCA office to give them current mailing address for checks and reports.

14. 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.
2017 Mileage rate
Effective Jan 1, 2017, the standard mileage rate for the use of a vehicle is 53.5 cents per mile.
IRS Rules on Stipends & Reimbursements
Stipends are considered income, therefore, instead of stipends, TCA suggests providing reimbursements based on actual receipts.

15. Annual Budget
TCA’s Fiscal Year runs from July 1 to June 30. Chapters are encouraged to do the same
This is an excellent tool in translating your Chapter’s goals into $$
Set your membership rates according to your planned expenses
Four months prior to fiscal year end, begin budget planning
Prior Year End Financials
Projected Current Year End Financials & Current Year Budget
Prepare a worksheet for figuring upcoming year Budget
Create & submit your final budget to your board for approval
TCA Budget Planning takes place in late April/early May
TCA Board & Senate approve TCA’s budgets at June meetings
Identify shortfalls and overages in current year and keep in mind for new budget.
Look at trends and upcoming initiatives when planning for new budget.
President & Treasurer can come up with a starting point for the budget, then get others involved.
Determine and note how you arrived at budget numbers. You will forget throughout the year!

16. Annual Budget
Chapter Treasurer and Chapter President should lead the creation of the budget
Estimate your activities for the upcoming year
Tie your activities back to the strategic plan
Keep your notes!
List your budget assumptions
Be conservative and realistic

17. Budget Template
Define your income & expense categories. Not too broad or too detailed.
Try to use the same accounts year-to-year for better comparison.

18. Income/Deposits
Make and retain copies of checks before depositing to the bank
Indicate what the checks are for and the line item in your budget where they will be recorded
Confirm all deposit received on monthly bank statements
Electronic copies are good. They don’t need to be hard copies.
Consider using a deposit worksheet to code your deposits correctly.
If you are using the TCA website to process membership, please deposit your deposits on a timely basis. Regardless of how small check may be.

19. Expenses Use an Expense Voucher
All expenses should be coded to the correct line item in your budget
Obtain approval from Chapter Treasurer or President
Treasurer or President shouldn’t approve their own reimbursement voucher
E-Signatures & approval acceptable
Include copies of receipts (originals not required)
Submit within 10 days of the expenditure
Keep copies for your records
Review monthly bank statements to confirm the expense was paid as approved

20. Expense Voucher

21. Suggested Financial Reports
1. Budget vs Actual
Shows income & expense compared to budget
2. Profit & Loss Statement
Shows income & expense for the current month and YTD
3. Profit & Loss Detail
Shows detail line by line item
4. Enrolled Member Roster
Shows individuals who joined or renewed during the month. Welcome your new members via
5. Expired Member Roster
Shows individuals whose membership expired at month end and who have not renewed by the time the report was pulled.
6. Total Current Members
Shows all current members
Consider your members as customers.
Define the benefits they derive from the membership.
Maintain contact.

22. Budget vs Actual

23. Profit & Loss

24. Detail-Income

25. Detail - Expense

26. Resources
Small Business Administration:
Formation of Texas Entities:
Setting up a small business:
Texas RioGrande Legal Aid, Inc.:
Texas Comptroller:
Find a local CPA: Consult with tax preparer on recommended tracking mechanism – Software, spreadsheets, or a notebook to document your income and expenses

27. The End
Resources-
Small Business Administration:
Formation of Texas Entities:
Setting up a small business:
Texas RioGrande Legal Aid, Inc.:
Texas Comptroller:
Find a CPA: contact your current tax preparer for assistance
Consult with your tax preparer recommended tracking mechanism – Software, spreadsheets, or a notebook
Documentation