Chapter Treasurer Training

1. Chapter Treasurer Training FAQ Presentation Version 1 (December 2015) Matthew Ng, P.Eng. Manager, Chapters

2. Content • Role of a Chapter Treasurer • Role of a Chapter Treasurer • Duties on Assuming Office • Routine Duties • Liability • Accounting Method • Accrual accounting • GAAP • Major Duties • Routine Duties • Questions

3. Role of Chapter Treasurer • Custodian of chapter financial records • Financial advisor to the chapter board • Assets • Money • Purchased assets • Sets up and maintain accounts • Receives invoices and money and makes payments • Advises on financial feasibility

4. Role of Chapter Treasurer (cont’d) • Participates actively in the chapter administration and management • Assists chapter chair in making sound decisions • Ensures chapter operations are a going concern

5. Duties on assuming office • Understand the financial condition of the chapter • Review audit report, ensure correctness of the accounts, amounts on deposit • Accept the books, cheques, access cards, etc. • Establish signing privileges with the bank

6. Routine duties • Maintain bank account • Pay chapter bills and executive expense claims • Deposit money from external sources • Provide report on chapter financial health at every chapter board meeting • Advise chapter chair on financial matters pertaining to the chapter • Follow GAAP and PEO accounting practice

7. Liability In discharging your duties as treasurer, as long as you can reasonably prove no planned and/or deliberate wrong doing, there will be no liability to the treasurer.

8. Liability (cont’d) • Exercise due diligence • Properly dispose of financial documents • Keep good records • Keep private banking information private • Don’t circumvent safeguards like dual signature requirement • Directors and Officers insurance • Coverage is determined on a case-by-case basis

9. Accounting method • Accrual accounting An accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur. The general idea is that economic events are recognized by matching revenues to expenses (the matching principle) at the time in which the transaction occurs rather than when payment is made (or received). This method allows the current cash inflows/outflows to be combined with future expected cash inflows/outflows to give a more accurate picture of a company's current financial condition.

10. Accounting method (cont’d) • The key word here is …at the time in which the transaction occurs rather than when payment is made • Chapters should • Reconcile when the actual cash transaction takes place. • Be consistent from one year to another. Changing methods from one year to another creates financial record havoc and should be avoided.

11. Friendly hint #1 As soon as a transaction takes place, post it on your books. Don’t wait till the cash is withdrawn or deposited to do it.

12. GAAP • Generally Accepted Accounting Principles (GAAP) • A set of rules that is generally accepted as sound practice in accounting • Business world adheres to GAAP; chapters should too! • Don’t do anything that is not considered under GAAP

13. Major duties • Report financial condition monthly • Annual statement of financial condition • Audit of annual financial statement • Certify correctness of account • Credit / debit of the account(s) • Seek certificate presentation expense reimbursement • Signing authority

14. Major duties (cont’d) • Reimburse expenses • Financial forecasting • Budgeting • Chapter business planning • Keep records of activities and financial success/failures

15. Routine duties • Maintain bank account(s) • Banking duties (deposits, withdrawals, cheque writing, etc.) • Reporting • Business planning and reporting • Year-end reporting • Chapter asset tracking

16. Questions?