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AFSCME 41 st INTERNATIONAL CONVENTION CHICAGO, ILLINOIS FINANCIAL STANDARDS CODE JULY 13, 2014. Laura Reyes, Secretary-Treasurer, AFSCME International. TODAY’S HOST. Charles Jurgonis, Director, Financial Services
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AFSCME 41st INTERNATIONAL CONVENTIONCHICAGO, ILLINOISFINANCIAL STANDARDS CODE JULY 13, 2014
Laura Reyes, Secretary-Treasurer, AFSCME International TODAY’S HOST
Charles Jurgonis, Director, Financial Services • Jeff Taggart, Associate Director, Auditing & Accounting • Karen Tyler, Assistant Director, Auditing Additional Hosts
PRESENTERS William Del Pino Cathy German AFSCME AUDITORS
PRESENTERS CONTACT INFORMATION William Del Pinowdelpino@afscme.org Cathy Germancgerman@afscme.org
Today’s Topic THE AFSCME FINANCIAL STANDARDS CODE - 2013 REVISED Financial Standards Code
AFSCME FINANCIAL STANDARDS CODE • Adopted by International Executive Board • Part of AFSCME IU Constitution
2013 AFSCME FINANCIAL STANDARDS CODE • Article I - Article XI • Appendices • Glossary of Terms • Trustees Audit Guide • Trustee Audit Checklist
Article I - Purpose and Scope EstablishMinimum Standards for the Handling of Fundsand Records Maintenance
Article II - Custody of Funds Bank Accounts Should Be: • In Federally Insured Institutions • In Name of Union • ContainUnionFundsOnly
Investments Union Officers Have aFiduciary ResponsibilitytoManageandInvestUnion Funds Prudentlyin AccordancewithUnion Policies
InvestmentsApproved Investments: • InsuredBank Accounts • Insured Government Investments • Other Investments Approved by Executive Board
The Following Investments Are Not Allowed : • Purchase of Lottery Tickets or Other GamingActivities • Investment in Any Illegal Activities
InvestmentsSafest Investments Available: • Treasury Bills • Certificates of Deposit • Government Notes and Bonds
Petty Cash Fund • Executive Board Sets Fund Amount, Selects Custodian and writes Check to the Custodian To Initiate Fund • Petty Cash Receipts Maintained to Document Expenditures From Fund • Record Expenses in Petty Cash Journal • Maximum Petty Cash Fund$100.00
Transaction RecordsCashbook or Journals AreRequired • Manual Cash Book • Receipts & Disbursements Journal • Computerized Cash Book
Income Documentation • Copies of Transmittal,RemittanceAdviceor Membership Documents • Make a Copy of all Checks Received • Keep a Copy of the Deposit Slips • Deposit Funds Promptly infull
Bank RecordsBank Statements & Canceled Checks: • Keep Checks With Bank Statements • Reconcile Bank Statements Monthly • Request Missing Checks or Bank Statements • Verify Deposits to Deposit Slips
Bank RecordsCheck Stubs & Voided Checks: VOID • Before Storing a Voided Check, Write “Void” Across the CheckinInkand Tear Off the Signature Portion • Retain All Void Checks
Paid Bill Records Paid Bills or Invoices- When Signing Checks, Write theDatePaid, AmountPaid,andCheckNumberon Your Copy of Bill or Invoice
Dues Payment Records • International & Council Per Capita Tax Reports • Dues Deduction Rosters • Council Rebate Transmittal
Reimbursement Records All Officer and Employee ExpenseReports and All Receipts for Expenses Reimbursed
Petty Cash Records Records of Petty Cash Expenditures - Petty Cash Slips - Receipts - Petty Cash Journal
Payroll Records • IRS Form 941s • IRS Form 940s • IRS Form W-2s • Required State & Local Payroll Reporting
Financial Records • Financial Reports Prepared for the Membership or Executive Board • Federal Reports Filed With the IRS(including Payroll) or U.S. Department of Labor
Financial Records • Copies of Financial Reports Filed with the International Union:- Surety Bond Report- Local Union Annual Financial Report (LUAFR) • Surety BondCertificate of Coverage
Financial Records Mortgages, Loan Agreements, Lease Agreements, Lease-Purchase or Time-Payment Contracts, and anything Which Involves a Financial Obligation on the Part of the Affiliate.
Financial Records All Documents Constituting Evidenceof Ownership by the Local Union of Any Property or Equipment
Financial Records • Minutes of any Executive Board, Membership, or Committee Meetings at which any Financial Decisions were Made, Approved or Rejected. • Personnel Records - Collective Bargaining Agreements & Personnel Policies
Key Point Financial Records, including Minutesof Executive Board and Membership Meetings, must be kept for aminimum of SevenYears.
Article VExpenditures - AuthorizationThere Are Four Types of Authorization: • Law • Constitution • Contract • Vote Unauthorized Checks
Required By Law • Payroll Tax Deposits and RelatedPayments (FICA, Unemployment Taxes, etc.) • Possible Fines Imposed by IRSforLate Filing of Form 990
Required by Union Constitution • International and Council Per Capita Taxes • Payment of Surety Bond Premium to International
Required by Contract • Equipment Rental • Meeting Hall Rental Prior Authorization Required:
Authorized By Vote • Membership • Executive Board • Delegate Assembly
Key Points Expenditures Must Be Authorized and Documented in the Minutes
Article VI – Expenditures Procedures Before You Write a Check, You Need: • Authorization • Documentation • Explanation
No Cash Payments Never Write a Check Payable to Cash Exception: Petty Cash
Writing Checks/Making Disbursements • Never Pre-Sign Checks: Do not Sign any Check before the Date, the Name of the Payee and the Amount have been entered on the Check • Neveruse a Rubber Stamp for Check Signing Purposes
No ATM Cards Bank Debit Cards or ATM Cards May Not Be Used Under Any Circumstances
Check Signers • Checks and Withdrawal Slips Must Be Signed by TwoOfficers • It is Recommended That at LeastThree (3) Signatories Be Registered with the Bank for Each Affiliate Account
Article VIIExpenditures - Documentation Receipts and Invoices Must Be Maintained to Support all Expenditures
Non-Taxable PaymentsAccountable Plan = Expense Report • Reimburse Actual Expenses • Non-Taxable to Recipient
Expense Reports Required to Document Reimbursements : Officers Members Employees
Expense Reports Each Expense Item Reimbursed Must Have Receipt Attached and Show: (1) Date (2) Amount (3) Union Purpose
Expense Reports • Original Receipts Must Be Attached • Expense Reports Should Be Filed Timely • The IRS Considers Filing within 30 Days to be Timely
Expense ReportsMeal or Entertainment Items List: • Name(s) and Union Relationship of Person(s) Entertained • Explanation of Union Business Discussed
Expense Reports RequiredAccount For All Costs Paid Directly by Affiliate: • Direct Hotel Billings • Charges on Union-Owned Credit Cards • Payments to Travel Agency
Expense Reports All Expense Reports Must Be Approved By Someone Other than the Preparer