1. Roberta Gorman Director of Membership August 2016
Section FINANCES
Roberta Gorman Director of Membership August 2016

2. Section Guidelines: Operations Manuals
Documents can be found here:

3. Section Guidelines: Operations Manuals

4. Section Guidelines: Administrative Toolkit
Guidelines for Section administration can be found in the “Sections Resources” section of the website, under the Local Sections menu item:

5. Section Guidelines: Administrative Toolkit
The Administrative Toolkit contains Section guidelines, timelines, processes, and forms.

6. Section Guidelines: Administrative Toolkit
The Section Administrative Toolkit :
Section Calendar
Section Election Information
Governor Election Information
Section Meeting Guidelines and Forms
Honors & Awards Nomination Information and Forms
Section Financial Guidelines and Forms

7. Section Guidelines: Budget Basics
Budget Process for Sections to Receive Funding:
2017 Budget Form due 1 September 2016
To support your regular monthly Section activities
Note: budgets will be reviewed for approval by Finance and Membership VPs with completed Q1 and Q2 Financial Reports (including receipts).
Q Financial Report (including receipts) must be received in order for your 2017 Q1 allotment to be deposited in January
ALL Sections are REQUIRED to submit budgets & financial reports, even if you are not requesting any funds from HQ
Admin Toolkit – Section Finances – Information on budgeting, deadlines, and guidance on completing the budget form
Budget Deadline – New, earlier deadline to be included in Society budget

8. Section Guidelines: Budget Basics
Fiscal Year – used to be different but was changed several years ago to match Society FY
Please indicate currency
Fill in Section Name
Create Expected Income Categories under Income and budget. Be sure to include additional funds for which you are asking under “Budget Allocation.” Common mistake is leaving this section blank.
Fill in actual Section income for current year from Financial Reports (totals must match). You can estimate Q3 and Q4
Create/Edit Expense Categories and budget
Insert Actual 2014 Expenses from Financial Rpts. Q3 and Q4 can be estimated
Chair and ST “sign” and date the bottom of form.
Sponsorship – want to move toward more self-sustaining model

9. Section Guidelines: Budget Basics
Society Fiscal Year runs from January 1 to December 31.
When preparing your budgets, please keep in mind that we will be adjusting your quarterly allotments to account for the balance in your bank account as of Jan 1, 2017.
So if your total budget request is $1,000 for 2017
And you have $500 in your Section bank account at the start of 2017
Only $500 will be deposited in 2015
Budget for any Outstanding 2016 Revenue or Expenses that you expect to be paid out in 2017
4th quarter 2015 expenses that might not be invoiced until 2016 If it’s not accounted for, you will not receive extra funding to pay 2016 expenses
4th Quarter 2016 income that might not be paid until 2017 Sponsorships for December meetings, etc.
Accounting is done on a cash basis, not accrual.

10. Section Budgeting – What’s Covered?
Society funds, whether advanced from the Home Office or raised locally, shall only be used for purposes that are necessary for conducting Section meetings and that benefit the Section membership as a whole.
Section Funds cannot be used to entertain Section or Society Leaders
Funds raised locally can be used to fund Governor travel to SMPTE Board Meetings or Conferences, and to cover any unbudgeted expenses.
Guest Speaker Expenses (other than dinner) should not be included in the budget unless they are to be covered by sponsorships.
Funds are for REGULAR monthly Section meetings, NOT special events.
Section Funds should not be used to attend or exhibit at industry events or trade shows.
Section in Membership OM related to International Section Chair travel
Will go over Speaker Expense, Special Events, and trade shows

11. Section Budgeting – Speaker Expenses
Sections can request up to $1,000 once per year to cover Speaker Expenses for a Section meeting.
This request is separate from Section budgeted funds and, if approved, the Speaker will be reimbursed directly by HQ, not through the Section.
Any additional Speaker expenses must be covered by sponsorships.
Request for approval must be submitted to HQ and Membership VP no later than 60 days before the meeting.
See Section of the Membership Operations Manual for specific details.

12. Section Budgeting – Special Meetings
What is a Special Meeting?
Special Meetings – Section of Membership Operations Manual
Expenses are greater than $2,500, 3x the average monthly meeting budget, or 40% or more of the annual allotment from HQ.
Event is an all-day event or longer.
Admission fees are charged for attendance.
Special Meetings fall into two categories:
Special Events
Section Conferences
Special meetings – fall outside parameters of regular monthly meetings
Meet one or more of the criteria listed

13. Section Budgeting – Special Meetings
Special Events
Purpose is primarily social (Holiday Party, Golf Outing, etc.)
Proposal and Budget for the event must be submitted for approval, either WITH the Annual Budget or no later than six weeks before the proposed date of the event.
Funds related to the event must be accounted for separate from regular Section funds.
Separate funds – right now, separate accounting. In the future, perhaps separate bank accounts for larger events

14. Section Budgeting – Special Meetings
Special Events – Included in Annual Section Budget

15. Section Budgeting – Special Meetings
Section Conferences
Purpose is primarily tutorial (Seminar, Workshop, Exhibit, etc)
Proposal and Budget for the event must be submitted for approval no less than six months before the proposed date of the event.
Funds related to the event must be accounted for separate from regular Section funds.
Final accounting of finances due 90 days after event
Separate funds – right now, separate accounting. In the future, perhaps separate bank accounts for larger events

16. Attendance and Exhibiting at Conferences and Trade Shows
Section Funds are meant to be used for monthly meetings and activities that benefit the Section as a whole.
Section funds are not to be used to cover registration costs for attendance at conferences or trade shows.
Staffing a SMPTE Booth at a Trade Show can raise the visibility of the Society as a whole. Therefore, funding for these types of activities comes from the Society budget and not the Section budget.
Requests must be submitted to and approved by HQ in advance of any commitments.
Additionally, HQ might request Section assistance in staffing a booth at a trade show. Pre-arranged expenses will be reimbursed.
Can accommodate a limited number of requests.
Requests with projected expenses should by submitted in conjunction with their budget so that we can budget in Society budget. Regular attendance not guaranteed.

17. Section Guidelines: Financial Reporting
Quarterly Financial Reports are due by the 15th of the month following each quarter:
April 15, July 15, October 15 and January 15
Includes both income and expense actuals, with receipts, expense authorization forms, and bank statements (for non-US Sections)
Funds are deposited in Section accounts quarterly
Provided Section Quarterly Financial Reports are submitted first
Reports filed more than 60 days following the close of a quarter will forfeit that quarter’s allotment
To ensure timely deposits, please ensure Budgets and Quarterly Financial Reports are timely
Invoices from past years that were not in the budget will not be covered
Expenses must be submitted to the Secretary/Treasurer for payment within 90 days
Reports filed on time – cannot submit reports at the end of the year and expect back payment of quarterly allotments
Expenses submitted in timely manner – cannot submit expenses for payment from previous years etc.

18. Section Guidelines: Financial Reporting
SMPTE Audit
SMPTE undergoes a financial audit each year
We are required to report on ALL SMPTE accounts.
All Sections are part of the SMPTE organization
SMPTE is legally and financially liable for all Section activities
US Section Banking
All US Sections have SMPTE-maintained bank accounts with Chase
This should be the ONLY bank account for the Section
Moved to electronic banking
Non-US Section Banking
Unless otherwise arranged, all Non-US Sections should have ONE SMPTE bank account
Monthly bank statements are REQUIRED as part of your Quarterly Financial Reports
Moving to HSBC
Society must have visibility into all Section bank accounts. All accounts must be disclosed.

19. Section Guidelines: Quarterly Reporting
Quarterly Financial Reporting Forms
Quarterly Reporting Form Has 3 Sections:
Bank Statement Reconciliation
Accounts Receivable
Accounts Payable

20. Quarterly Reporting (Example Case): 1. Bank Statement Reconciliation
Remember, for our accounting and audit purposes, we need you to report expenses and income in the quarter in which they were paid/received
Date from bank statement
Check # - if applicable
Budget Line Item – This should match the categories from your approved budget. Don’t include descriptions here. If there are unbudgeted items, mark them as Other
Description column is where you can describe the particular expense/income
Insert amount into debit or credit column and balance should calculate

21. Quarterly Reporting (Example Case): 2. Accounts Receivable
If you are expecting to receive a payment, for example, from a Sponsor.

22. Quarterly Reporting (Example Case): 3. Accounts Payable
Money that the Section has not yet paid out. For example: you are waiting to receive your allotment so that you can cover a particular cost. Or you are waiting for a final invoice for catering.

23. Section Guidelines: Quarterly Reporting
DON’T FORGET
Quarterly Reports MUST be turned in by the 15th of the month following the end of the Quarter:
After 60 day grace period, allotment is forfeit
Expenses submitted to Secretary/Treasurer later than 90 days afterward will not be reimbursed
Monthly Bank Statements MUST be included with Reports for Non-US Sections
Receipts for ALL expenses MUST be included with Quarterly Reports
Each Expense MUST have an Expense Authorization Form
No deposit for the next Quarter’s allotment will be made into your account until the previous Quarter’s Financial Report has been submitted
Quarterly Reports (with associated bank statements and receipts) are REQUIRED of ALL Sections, regardless of whether you are requesting funds from SMPTE
Receipts – if there are non-related expenses, please indicate. Include check number, particularly if one check was written to reimburse multiple expenses.

24. Section Guidelines: What’s New?
From the Finance/Administration Operations Manual
Section Contract Approval Authority
All contracts with liability greater than $2,500 must be submitted to and executed by HQ
Section Account Signatories
Expense Authorization Forms
Receipts – if there are non-related expenses, please indicate. Include check number, particularly if one check was written to reimburse multiple expenses.

25. Section Guidelines: What’s New?
Section Account Signatories
Finance Operations Manual, Section 4
Disbursements against Section-operated funds require two signoffs per disbursement.
Expenses Submitted and approved by two signatories (usually Chair and Secretary/Treasurer)
Receipts Attached to Expense Authorization Form and included in Quarterly Financial Reports
This does not mean two physical signatures on a check. Instead, the two signatories must BOTH approve each expense before it can be paid. Typically the Chair and Secretary/Treasurer.

26. Section Guidelines: What’s New?
Expense Authorization Form
This does not mean two physical signatures on a check. Instead, the two signatories must BOTH approve each expense before it can be paid. Typically the Chair and Secretary/Treasurer.

27. Section Finances
ANY QUESTIONS?

28. Questions?
Thank you!