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Getting Down to Business as Chapter Treasurer

Learn the role of a chapter treasurer, financial management strategies, policies, and procedures to enhance financial stewardship. Discover how to manage banking, financial reporting, accounts payable, and receivables efficiently.

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Getting Down to Business as Chapter Treasurer

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  1. Getting Down to Business asChapter Treasurer Lisa Murfield, MBA, SPHR, GPHR HR Tampa, Inc.

  2. Agenda • Role of Chapter Treasurer • Chapter Financial Management • Chapter Financial Strategies • Policies and Procedures • Resources

  3. Role of Chapter Treasurer

  4. Treasurer Responsibilities • Serve as Financial Officer and Advisor • Assess financial implications or proposed actions of BOD • Observe financial direction of chapter • Recognize potential problems and inform BOD • Act as trustee and financial agent for all funds • File appropriate forms with IRS

  5. Treasurer Responsibilities • Disburse funds for normal and usual uses • Participate in short- and long-term strategic planning • Attend all monthly membership and BOD meetings • Represent chapter in human resources community

  6. Chapter Financial Management

  7. Banking • Accounts • Checking • Interest bearing account if possible • Be familiar with routing numbers • Savings • Investments and CDs • Bank/Debit Cards • Bank Statements • Online capabilities • Keep copies for 7 years • Cancelled Checks • Hard copies v. electronic

  8. Banking • Account Reconciliations • Investigate discrepancies immediately • Perform on a monthly basis • Second review done by a non-financial officer • Check Signing Cards • Obtain from your financial institution • Establish signature authority • Signature dollar limits • Deposit Stamp • Account name and number • “For Deposit Only”

  9. Financial Reporting • Software • QuickBooks • Online capabilities • Free trial at https://login.quickbooks.com • Quicken • Excel • Access • Professional Accountant

  10. Financial Reporting • Chart of Accounts • Cash v. Accrual Method • Cash – recognize income and expenses when cash flows in and out of account • Accrual Method – recognizes income when it is earned and expenses when liability has been incurred • Balance Sheet • Assets = Liabilities + Equity • Income Statement • Profit and Loss Statement

  11. Accounts Payable • Receipts must exceed payables • Know your current cash status • Do not write checks unless you have: • Prior approval from BOD • Invoices from vendors • Check request form with receipts attached • President signs off on request forms • Receipts for completed travel expenses

  12. Accounts Payable • Write checks as soon as possible after documentation received (i.e. one week) • Record in checkbook or general ledger in a timely manner

  13. Accounts Receivables • All deposits should be made as soon as possible (i.e. one week) • Deposits should be recorded in a timely manner into checkbook or general ledger • Attach copies of checks to deposit slip and file

  14. Helpful Hints • Create an email specifically for Chapter Treasurer correspondence through Yahoo or other provider • Place completed W-9 on your website (Request for Taxpayer ID Number and Certification) for vendors • Create special section on website for BOD

  15. Chapter’s Financial Strategy

  16. Operation of Chapter • Incorporation • Provides protection to members and BOD from personal liability • Not for Profit – incorporation status under state law • Organizations benefit members and public rather private individuals • 501(c)3 or 501(c)6 • Tax Exempt – federal income tax exemption under IRS code • Exempt from paying corporate federal income tax on income generated from the activities of the association • Employer Identification Number (EIN) or Federal Tax ID

  17. Operation of Chapter • Tax Filings • Annual Tax Filing – Not for Profit • No return – Gross receipts under $25K • Form 990EZ – Gross receipts more than $25K but less than $100K • Form 990 – Gross receipts over $100K • Forms due the 15th day of the fifth month after the chapter’s year-end • Extensions of three months may be granted • Payroll Taxes • Quarterly Payroll Returns (Form 941) • Annual Report for Corporations

  18. Operation of Chapter • Insurance • Directors & Officers Liability Insurance • Fidelity Bonds

  19. Operation of Chapter • Mail Call • P.O. Box • Secures checks and other documents in one location • Office/Home address of Board member • Changes each year • Documents can be lost • Be Proactive • Stay on top of paperwork • Document and back up everything! • Treat the chapter’s money as if it is your own

  20. Operation of Chapter • Be a Strategic Partner • Budget v. Actual Budget • No budget in place – take the initiative and create one for your chapter • Be the financial advisor/conscience to keep chapter on track • Provide updates to Board and Chapter • After chapter events, provide accounting to BOD (i.e. Profit and Loss Statement) • Monthly Meetings • Chapter Conferences • Fundraisers • Provide historical comparisons • Membership renewals

  21. Operation of Chapter • Where are the Chapter records housed? • Storage area or Board member’s home or office • Label boxes with records they contain • Mark each box with discard date • Maintain inventory list of Chapter’s records/equipment/materials • Data Imaging • Store in safety deposit box

  22. Operation of Chapter • Chapter Financial Support Program • Returns a portion of SHRM national dues to chapter per member • Can be direct deposited into your chapter’s account • As of 2012 – Direct Deposit will be mandatory • 100% Chapter • $6.25/quarter or $25/annually • Non-100% chapter • $5.00 twice a year or $10/annually

  23. Policy, Procedures and Planning,Oh My!

  24. What do you do if…. • A monthly sponsor backs out • A board member submits receipts for unauthorized expenses • A board member insists on payments without receipts • A board officer presents a substantial receipt for payment without the vote of the board

  25. The Savvy Treasurer • Bring any questionable situation to the attention of the president, another officer and/or Board • Clearly identify who has the authority to commit Chapter funds • Clarify when the Board needs to vote on an expenditure • Ensure internal controls are in place to protect the finances of the Chapter • You, as Treasurer, will be held ultimately responsible

  26. Resources

  27. SHRM Volunteer Resources • www.shrm.org/vlrc • Chapter Position Descriptions • SHRM Guide to Financial Management • SHRM Leaders Guide • Chapter Treasurers • IRS website • www.sunbiz.org • Managing Chapter Funds – Susan Vowell • Lisa Murfield – murfieldld@yahoo.com

  28. Questions?

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