1. Division Finances: Aligning Resources with Goals
Texas Counseling Association

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

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

4. TCA Financial Process Overview
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.”

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. 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
TCA Record Retention Guidelines are available

9. Financial Services Process division membership applications
10% of Division revenue is retained by TCA to help cover bank charges and administrative costs to provide the following services:
Process division membership applications
Process division expense vouchers and revenue deposits
Prepare quarterly division financial & monthly membership reports
Distribute reports electronically to Division President, Treasurer & Director
Financial & budget consultations upon request
Preparation and filing of federal tax reports & annual audit
Update Incoming Leadership contact information –
President submits the annual report in June the incoming leadership

10. Financial Services
Division dues changes are due by November and they take effect in January
Professional Development Grants up to $200 per division per year are available to support workshops and conferences in underserved areas
Support for Division websites. Website updates and enhancements have been completed.
As a reminder, all division dues rate changes should be approved by the division by November Implemented on January 1, 2018.

11. 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 provides reimbursements based on actual receipts.

12. Annual Budget Fiscal Year: July 1 – June 30
In March, TCA provides each Division a worksheet with:
Prior Year End Income & Expenses
Current Year Budget
Year-To-Date Income & Expenses
A column for figuring upcoming year Budget
Create & submit your final budget to your board for approval
Submit board-approved budget to TCA by the April deadline
Division Budgets are included in the TCA Budget
TCA Budget Planning takes place in late April/early May
TCA Board & Senate approve budgets at June meetings

13. Annual Budget
Division Treasurer and Division 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 both ambitious and realistic as you plan your budget.

14. Budget Template Changes this year:
TCA staff prepares the templates for all twelve divisions
Division calculates Proposed Budget for the new year
The divisions needed to identify a strategic plan goal and a narrative for how they arrived at each of the numbers.
Finance committee approves each division’s budget.

15. Income/Deposits
Division income comes mainly from membership and conferences/workshops
Majority of income received through online transactions
Check payments are received at a bank lockbox & processed by TCA office
Funds collected at division events are sent to TCA office for deposit

16. Expenses
Use current Division Expense Voucher (PDF or Excel)
All expenses require accounting codes
Approval by Division Treasurer or President required
Treasurer or President cannot approve their own reimbursement voucher
E-Signatures & approval acceptable
Include copies of receipts (originals not required)
Submit within 10 days of the expenditure
is preferred method of submission
Keep copies for your records

17. Expense Voucher

18. Financial Reports 1. Budget vs Actual 2. Profit & Loss Statement
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
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. Prepare a mail merge from the membership list that is sent every month.
Introduce your new members to your division – provide them a point of contact
and reach out to those that do not renew.

19. Budget vs Actual

20. Profit & Loss

21. Detail-Income

22. Detail - Expense

23. The End