1. Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

2. Secretary-Treasurer Support Group Dean BrownRainy Kaplan Carla BurgerLarry McBride Steve CampbellGary Mielke Barb GilhausLarry Roop Jim GrimesGina West

3. Getting the lay of the land Introductions Ice Breaker Agenda/Goals Why are you here? Question cards

4. Introductions Name Local How long have you been treasurer? Have you held any other local or regional position? One fun fact about yourself.

5. Why are you the Treasurer? How many of you were asked to be the treasurer because it was an easy job? “Just write a couple of checks…” “Attend a meeting a month.” “It’s your turn.”

6. What does a local treasurer do? Answers questions about the budget and finances. Sets the local’s fiduciary expectations. Works with district to collect dues. Pays the bills. Complies with IEA/NEA financial expectation. Complies with IRS regulations. Complies with state and federal laws. Reviews vouchers. Keeps accurate bookkeeping records. Provides monthly reports. Develop and monitor annual budget. Arrange for an annual audit of the books. Transmits dues to IEA. Work closely with membership chair on roster. Maintain a calendar to ensure meeting all financial deadlines. File proper paperwork with State Board of Elections. Monitor the fees paid to bank. Protect the local’s money.

7. Wow! This is too much!

8. Local Fiduciary Every elected officer in your local is a fiduciary. The governing body is also responsible for maintaining proper systems and procedures and being transparent to the membership. You are just the point person.

9. Fiduciary An individual in whom another has placed the utmost trust and confidence to manage and protect property or money. In most instances, you are responsible to do what “an ordinary person” would do with regards to finances/procedures.

10. Membership Keeping accurate membership records is essential to everything you do. However, in most large locals this is not your job. You must, however, work closely with the membership chair and/or president to ensure accuracy.

11. Calendar It is important to build a calendar for yourself with the deadlines for bill payments and for filing reports. Budget Audit IRS Reporting Financial reports Dues payments

12. Why have a budget? Financial Planning Avert preventable financial disasters Prevent arguments on how to spend money Comply with IEA requirements Reimbursement of mediation/arbitration costs Member satisfaction

13. Budgeting Have a budget committee. Establish a timetable. Have a method for identifying members’ needs. Have a plan for emergency situations. Have a procedure for adoption of budget. A review of local’s financial history

14. Building a budget Resources for creating a budget: Financial Procedures for Locals and Regions Video IEA website Spreadsheet template Your UD/Local office Other locals/regions

15. Budgeting Look at last year’s budget to ensure that you have the money where you need it. You MUST have $3 per member budgeted in a line item titled “Mediation, Fact-Finding and Arbitration”

16. Budget handouts Budget considerations – mechanics Sample budget worksheets

17. Dues collection Make sure that your district is collecting and distributing the proper amount of dues. Check this regularly (especially if your membership changes)

18. Dues collection Number of pay periods Total amount of dues (IEA, NEA, Local, FCPE, IPACE) Monitor regularly

19. Dues payment to IEA November 110% of obligation December 120% of obligation January 130% of obligation February 140% of obligation March 150% of obligation April 160% of obligation May 170% of obligation June 180% of obligation July 190% of obligation August 1100% of obligation

20. Potential consequences Late payment of dues can lead to Penalties (2% per month) Delegates may not be seated at the RA IEA scrutiny/audit

21. Sample IEA bill

22. End of year reconciliation

23. Controls Transparency is critical! Protect the Treasurer Protect the Officers Protect the Local Protect IEA/NEA

24. Controls Deposits Bank statements Bank reconciliation Vouchers Governing Board approval Double check everything

25. Other controls Bank choice Monitor fees Checkbook safety Authorize signers on account annually

26. Accounting System Every dollar that goes in or out of your bank account must be recorded Permanent record Future audits by IRS, etc. Internal questions Financial reporting What system do you use: “It depends”

27. Handouts Bank Reconciliation Sample Bank Reconciliation Sample voucher

28. Small group discussion What type of system does your local use? Why?

29. Financial reports Governing body/general membership Monitors spending Explains spending to members Assists in making decisions Comparison to previous years’ expenses Strengthens the audit

30. Financial report Cash on hand Categorization of income and expenses Actual vs. budgeted spending Prior year activity Include all accounts (IPACE, scholarship, etc)

31. Financial handouts Sample Monthly report Sample year end report

32. Small group discussion Have you heard any horror stories of fraud or theft in an organization?

33. Fraud

34. You need to be proactive and have controls in place, even if you are 100% positive that none your current officers are doing anything wrong. But…what about the next officers? Or the group after that?

35. Fraud If you suspect something is awry…don’t assume the worst. Don’t ignore the signs either. Talk to your UD immediately.

36. Signs of Fraud No oversight by governing body Little/no access to financial records Excessive dealing with cash Poor/little documentation Local behind in IEA dues Short money Excessive use of gift cards

37. The “do’s” Do have a 2 signature requirement on all checks Do insist on a monthly financial report Do insist on a voucher/invoice for all checks Do insist on guidelines for travel expenses Do talk regularly with Region treasurer Do have an annual audit Have bank statement mailed to another officer

38. The “don’ts” Don’t write any check to cash Don’t deduct cash from deposits Don’t accept excuses Don’t have a local credit card Don’t pre-sign checks

39. Benefits of an Audit 1. Help ensure compliance with basic bookkeeping and filing requirements 2. Help ensure compliance with internal requirements 3. Fraud deterrence/detection 4. Credibility with members 5. Identification of control deficiencies

40. Audit Internal Committee Outside CPA **Remember an audit is not the only control you need!

41. Audit handouts Sample Financial Audit

42. Small group discussion Which type of audit is right for your local?

43. RA delegates Have a written policy on documentation and reimbursement Overall expectations What is covered/not Repayment of unspent funds Consequences Documentation requirements Donations to FCPE (NO!) Region vs. Local funding

45. Policy needs Have a policy for travel ahead of time Must follow IRS guidelines Alcohol Tipping Types of expenses Maximum meal expenses

46. IRS filing All IEA locals must file ONE of these forms every year, based on the size of their “average annual gross receipts” “Gross receipts”= All $$ collected, EXCEPT for IEA-NEA dues – Over $200,000= Form 990 – $50,000 to $200,000= Form 990-EZ – Under $50,000= Form 990-N (“E- Postcard”)

47. IRS All but about 30 IEA locals file the E-Postcard All except about 2 of these have authorized the IEA to file the E-Postcard for them The other 30 file the 990 or the 990-EZ We strongly recommend that if you file the 990 or the 990-EZ, you hire a CPA to do it for you

48. IRS  Must report payments to INDIVIDUALS to the IRS, IF:  Over $600 in total for a calendar year  For Services: Not for products, supplies or expense reimbursements

49. Gift cards Gift cards are taxable income. Keep track of who receives them (name, date, amount, purpose)

50. Paying officers If you give a stipend or pay dues for officers, negotiations team or others…you may need to fill out a 1099

51. IRS Audit Random audits Disgruntled members Fraud

52. IRS Audit Call IEA and seek help You will need lots of documents, but IEA can help.

53. IPACE/FCPE IPACE is our state political action fund FCPE is the Fund for Children and Public Education – the national political action fund Very specific rules apply to both these types of funds. Make sure you know how to collect and how to use them.

54. IPACE IPACE is funded by member contributions Local Rebate Your obligations when requesting IPACE funds: – Know the rules regarding use of the funds – Keep them in a separate non-interest bearing bank account – Understand and comply with State disclosure requirements

55. IPACE discussion What does your local use the IPACE funds for?

56. IPACE handouts Sample IPACE rebate letter About IPACE

57. State political reports DO YOU HAVE TO FILE? One-time threshold: $5,000 spent in any 12-month period If you exceed the threshold, you must register as a PAC immediately and then file quarterly reports forever

58. FCPE There are ways to maximize your local’s contributions to the FCPE for your delegates. There are forms you can get to increase FCPE contributions within your local.

59. FCPE to count for delegates Create an Excel spreadsheet All members’ names that contributed with ID number All delegates’ names to be credited with the contribution (with ID numbers) Date of the pay period

60. FCPE for delegates Mail the spreadsheet electronically to: jtakacs@nea.org Snail mail the spreadsheet and check to: NEA FCPE PO Box 64702 Baltimore, MD 21264-4702 c/o Joe Takacs

61. FCPE template AmountMember NameMember ID number $10.00John Smith234567891 $100.00Jane Smith345678912 AmountMember NameMember ID number $110.00Joe Smith123456789 Westmont TA Transmittal of FCPE $110.00 taken from the June 19, 2015 pay cycle Please credit it to the following delegate

62. Scholarships/Charities Separate accounts When does this apply State registration/reporting requirements “Gaming” regulations Deductibility of contributions

63. Handout Financial Procedures FAQ’s

64. In closing… Do what is right, not just what is expedient. Be transparent and accessible Make clear rules and policies and demand that they are followed.

65. Resources Secretary-Treasurer Support Group Region IEA website – Publications – Videos – FAQs – Tips for new Treasurers – NEA information

66. IEA website http://www.ieanea.org/resources/financial- procedures/

67. Questions? Feel free to contact either of us: Dean Brown: cyndee.dean@frontier.comcyndee.dean@frontier.com Rainy Kaplan: rainy.kaplan@ieanea.org