1. IPMA-HR Chapter Treasurers Training
Guidelines for success
Catherine M. Pennington, CPA
Renner and Company, CPA, P.C.
ipma-hr.org

2. Financial Statements Balance Sheet Assets Liabilities/Net Assets
Cash Accounts payable
Computer Net Assets (equity)

3. Financial Statements
Income Statement
Revenues
Expenses
Net Income

4. Sorting the Basic Data Chart of Accounts
Organize it to match YOUR organization
Assets, in order of liquidity
Liabilities, short-term vs. long-term
Net Assets
This is your map

5. To software or not to software
Excel
Cash Rev 1 Rev 2 Exp 1 Exp 2
Jan 2 # xx xx
Jan 6 Sam xxx xxx

6. Quickbooks (not Quicken)
Accounting Software
Lots of choices
Quickbooks (not Quicken)
Sage
Desktop vs Online

7. Banking Account name and EIN Chapter’s vs. National’s
(Remember the Corporate Resolution)

8. Authorized Signers Always have at least two (three is better) signers
The “hit by a bus” rule
Dual Controls
The bank won’t monitor
Use non-signer Board members
Keep your signers up-to-date
NEVER, EVER use a signature stamp
It’s convenient for embezzlers, too

9. Chapter Bank Reconciliation
DATE
Balance per bank
$ 3,922
Balance per books
$ 3,699
Less outstanding checks
Less bank fees
(3)
Record
#317
(17)
#326
(201)
Add bank interest 1
#299
(7)
Add outstanding deposits -
Adjusted bank balance
$ 3,697
Adjusted book balance
$ 3,697

10. Internal Controls Segregation of duties
Separate recording function from asset custody/control 10

11. Segregation of Duties Signer shouldn’t do the bank recon
Disbursements
Signer shouldn’t do the bank recon
Have another person view the bank account online

12. Segregation of Duties Remote deposit
Cash receipts
Remote deposit
#1 deposits the checks and gives copies to #2

13. Reporting Who gets info? Management Board of Directors
IPMA national office
IRS

14. Forms 990, 990-EZ, 990-N For Calendar year entities – Due May 15
Different forms for different size organizations
Failure to file can result in revocation of exemption
No income tax only on exempt function or statutorily exempt income
Other taxes may apply

15. Unrelated Business Income
Trade or business
Regularly carried on
For profit
Not substantially related to exempt purpose
There are exceptions

16. Employee or Independent Contractor?
Three Main Criteria
Right to control how work is done
Risk of financial loss
Intention of the parties

17. Employee or Independent Contractor?
But what about stipends?

18. Employee or Independent Contractor?
Who cares?
IRS
Different reporting
Different responsibility for taxes and other expenses

19. State and Local Requirements
Annual corporate reports for States
Usually a small fee, some financial data, list of Board members
If you fail to file your corporate existence may be terminated
Local
Business licenses
Business personal property tax

20. Questions? Contact: Cathy Pennington cpennington@rennercpa.com
or call (703)