2015 CHAPTER TREASURERSESSION #1

YOUR NAME?

YOUR VOICE PART?

THE CHAPTER YOU REPRESENT?

# OF YEAR’S IN THE SOCIETY?

WHY YOU TOOK THE JOB?

INTRODUCTIONS

INDEX OF TOPICS

• YOUR EXPECTATIONS

• TREASURER’S ROLE

• RESOURCES

• DUTIES / CALENDAR

• ACCOUNTING METHODS

• BANKING

• FUNDRAISING

• FINANCIAL REVIEW / IRS ISSUES

• QUICKEN

• INSURANCE

• BUDGETING

CHAPTER ORGANIZATION

LEADERSHIP AND THE SUCCESSFUL CHAPTER

REMEMBER: YOU ARE PART OF THE TEAM!

TEAMWORK!

TREASURER’S RESOURCES

MANUALS

–TREASURER’S MANUAL

–TREASURER’S FORMS (EXHIBITS) BOOKLET

–CHAPTER ADMINISTRATION GUIDE

–OPERATIONS AND BY-LAWS MANUAL

SOCIETY WEBSITE

–INCORPORATION KIT

–TAX RETURN FORMS AND GUIDANCE

TREASURER’S RESOURCES (CONT.)

CHAPTER DOCUMENTATION

–BY LAWS, MINUTES, ADMINISTRATION GUIDE

–NEWSLETTERS

PEOPLE

–YOUR PREDECESSOR

–OTHER CHAPTER TREASURERS

–DON MORGAN (DFMORGAN@ROCHESTER.RR.COM)

–NATHAN H. BELL (NATHANHBELL@YAHOO.COM

TREASURER’S DUTIES

•KEEP ACCURATE RECORDS

•PREPARE BUDGET

•PAY BILLS PROMPTLY

•PREPARE MONTHLY REPORTS OF RECEIPTS AND DISBURSEMENTS

•SUBMIT MONTHLY REPORT TO THE BOARD

•PREPARE RECORDS FOR REQUIRED ANNUAL FINANCIAL REVIEW

TREASURER’S CALENDAR

EVERY MONTH

•COMPLETE FORMS 1, 2, 3, & 4 (OR EQUIVALENT)

• PAY ROUTINE BILLS

• PAY BALANCE ON SOCIETY BILL

•RECONCILE CHECKING/SAVING ACCOUNT(S)

• PREPARE TREASURER’S REPORT FOR BOARD

TREASURER’S CALENDAR

DECEMBER

–PREPARE BUDGET (WITH FINANCE COMMITTEE)

–OBTAIN NECESSARY BANKING PAPERS

JANUARY

–SUBMIT BUDGET FOR BOARD APPROVAL

–RECORD NAMES IN MINUTES OF THOSE COLLECTING MONEY

–REQUEST REVIEW OF PREVIOUS YEAR

TREASURER’S CALENDAR

APRIL

–REVIEW BUDGET AND VARIANCES WITH BOARD

MAY

–SEND COPY OF PRIOR YEAR FINANCIAL REVIEW TO SOCIETY

JULY

–FINANCE COMMITTEE REVIEW OF BUDGET

TREASURER’S CALENDAR

OCTOBER

•REVIEW BUDGET AND VARIANCES WITH BOARD

NOVEMBER

•REVIEW BOOKS WITH NEW TREASURER

DECEMBER

•ASSIST NEW TREASURER – PLANNING FOR HIS YEAR

•CONGRATULATIONS! YOU AND YOUR CHAPTER HAVE COMPLETED A SUCCESSFUL YEAR.

GENERAL ACCOUNTING PRACTICES

BANK ACCOUNTS

•DETERMINE WHO WILL HAVE SIGNATURE AUTHORITY AND AT WHAT LEVELS

• PREPARE NECESSARY SIGNATURE CARDS AND ENSURE CHAPTER SECRETARY INCLUDES BOARD RESOLUTION IN MINUTES

•RECONCILE ACCOUNTS REGULARLY

•RETAIN STATEMENTS AND CANCELLED CHECKS (OR DUPLICATES OR CHECK STUBS)

GENERAL ACCOUNTING PRACTICESCASH ACCOUNTING

•REVENUE AND EXPENSES WHEN RECEIVED

ACCOUNTING YEAR

• JANUARY TO DECEMBER

EXPENDITURES

•REQUIRE INVOICES, VOUCHERS, OR SPECIFIC BOARD APPROVAL

•USE CHECKS; AVOID CASH WHEN POSSIBLE

INCOME

•ALWAYS PROVIDE RECEIPTS

GENERAL ACCOUNTING PRACTICES

FINANCIAL REPORTS

•MONTHLY – TO BOARD; MAY USE FORMS 3 & 4

CHAPTER STATEMENT FROM SOCIETY

• PAYABLE UPON RECEIPT

• INCLUDES MERCHANDISE ORDERED BY THE SECRETARY AND ANYONE ELSE AUTHORIZED

BASIC RECORD KEEPING

CHART OF ACCOUNTSFUNDS AND USE RESTRICTIONS

DUES

MEMBER’S DUES

•CAN BE PAID BY MEMBER TO SOCIETY

•MUST BE PAID BY MEMBER TO AVOID CHAPTER LIABILITY

SOCIETY & DISTRICT DUES

•BILLED TO CHAPTER UNLESS MEMBER PAYS SOCIETY DIRECTLY

GENERAL ACCOUNTING PRACTICES

CHAPTER SUSPENSION

CAUSES

•DELINQUENT PAYMENT OF MONTHLY SOCIETY BILL

•FAILURE TO PROVIDE FINANCIAL REVIEW BY MAY 15TH

TREASURER HAS PRIMARY RESPONSIBILITY TO PREVENT THIS FROM HAPPENING!

WHAT IS QUICKEN?

•SOFTWARE APPLICATION

•SPECIALIZED DATABASE

•AVAILABLE ON MULTIPLE PLATFORMS

•ONE FILE CONTAINING MULTIPLE ACCOUNTS

•STRUCTURES YOUR ENTRY OF DATA

•STRUCTURES THE DATA INTO REPORTS

WHY USE QUICKEN?• QUICKEN MAKES DATA ENTRY CONSISTENT, EASILY HIGHLIGHTS INCORRECT

ENTRIES, AND MAKES GENERATING MONTHLY AND ANNUAL REPORTS EASIER

• EASILY COMPARE ACTUAL TO BUDGET

• EASY BANK RECONCILIATION PROCESS

• FASTER TURN-AROUND TO GETTING REPORTS

• SOFTWARE DOES THE MATH

• REPORT FORMATS ARE DIFFERENT, BUT SIMILAR TO ORIGINAL PAPER FORMS RECOMMENDED BY BHS

• MORE COMPLEX FINANCIAL SITUATIONS CAN BE HANDLED

• GOOD PLANNING WILL MAKE YOUR FINANCES WORK FOR YOUR CHAPTER

QUICKEN RESOURCES•QUICKEN MANUALS AND HELP SCREENS

•“QUICKEN FOR DUMMIES”

•SOCIETY MANUALS AND EXHIBITS

•SOCIETY WEBSITE HAS TEMPLATES AND INFORMATION

•COTS TREASURERS CLASSES

•PAST CHAPTER TREASURERS

•DISTRICT TREASURERS

•SOCIETY’S DIRECTOR OF FINANCE

QUICKEN RECAP•PLANNING

•START QUICKEN

• IMPORTING AND MODIFYING THE LIST OF ACCOUNTS

• INITIALIZE REPORTS AND INSTITUTION (BANK) ACCOUNTS

•ENTERING BUDGET INFORMATION

•CREATING OR MODIFYING MEMORIZED REPORT FORMATS

•ENTERING TRANSACTIONS

•GENERATING REPORTS

•BACKUP!

STATE REGULATIONS

ALL CHAPTERS MUST BE INCORPORATED IN THEIR STATE

•REQUIREMENTS FOR RENEWAL VARY

•MAY NEED TO MAINTAIN A REGISTERED AGENT TO HANDLE THIS

APPLY FOR STATE SALES TAX EXEMPTION

IRS REGULATIONSALL CHAPTERS MUST HAVE AN IRS EMPLOYER IDENTIFICATION NUMBER (EIN; 12-3456789)

•ONE-TIME APPLICATION; USED FOR 990 AND 1099

CHAPTERS MUST OPERATE STRICTLY IN ACCORDANCE WITH THE STATED PURPOSES

•NET INCOME MUST NOT BENEFIT INDIVIDUAL MEMBERS

•MUST NOT PARTICIPATE OR INTERVENE IN ANY POLITICAL CAMPAIGN ON BEHALF OF ANY CANDIDATE FOR PUBLIC OFFICE

•MUST NOT ATTEMPT TO INFLUENCE LEGISLATION BY PROPAGANDA OR OTHERWISE

IRS REGULATIONS

DO YOU NEED TO FILE A FORM 990?

2010 AND LATER TAX YEAR

•GROSS RECEIPTS UNDER $50,000 – NEW FORM 990N – ELECTRONIC FILING FOR TAX YEARS 2007 AND BEYOND

•$50,000 TO $199,999 – FORM 990EZ

•OVER $200,000 – FORM 990 AND SCHEDULES

OR:

•OVER $500,000 IN ASSETS – FORM 990 AND SCHEDULES

IRS REGULATIONS

DO YOU NEED TO FILE FORMS 1099?

•YEARLY PAYMENTS TO SUPPLIERS EXCEEDING $600

•ONLY REQUIRED FOR UNINCORPORATED BUSINESSES OR INDIVIDUALS, NOT LARGE COMPANIES

•FORMS AND INSTRUCTIONS COME FROM SOCIETY, USUALLY IN JANUARY

POTENTIAL IRS AUDITSINCREASED FOCUS ON NON-PROFIT COMPLIANCEEXAMINATIONS OF 501(C)3 ORGANIZATIONS ARE NOT A FULL AUDIT, BUT WILL USUALLY COVER A FEW VERY SPECIFIC AREAS:

•PROHIBITED PARTISAN POLITICAL ACTIVITIES;

•DIRECTORS’ AND OFFICERS’ COMPENSATION;

•DEFERRED COMPENSATION PLANS – 401K, 457, ETC. – DOCUMENTATION AND ADMINISTRATION;

•PAYROLL TAX CALCULATIONS, COMPLIANCE AND REMITTANCE;

•EMPLOYEE PAY RATE AND WITHHOLDING DOCUMENTATION;

•FUNDRAISING AND GENERAL ADMINISTRATION COSTS; AND 1099 COMPLIANCE

ANNUAL FINANCIAL REVIEW

EVERY CHAPTER MUST SUPPLY THE SOCIETY OFFICE WITH A COPY OF THE CHAPTER’S ANNUAL FINANCIAL REVIEW, POSTMARKED BY MAY 15TH

•SEE CHAPTER TREASURER EXHIBITS

EVERY CHAPTER MUST PROVIDE THE SOCIETY WITH A COPY OF THE CHAPTER’S FORM 990 OR 990EZ, OR A COPY OF THE EMAIL CONFIRMATION OF THEIR ELECTRONIC FORM 990N, BY MAY 15TH

•ORGANIZATIONS THAT DO NOT FILE THE 990N WILL LOSE THEIR TAX EXEMPT STATUS

•THE SOCIETY CAN SUSPEND A CHAPTER FOR NON-COMPLIANT

WORK WITH YOUR CHAPTER SECRETARY TO ENSURE THE EBIZ IS UPDATED!

PERSONAL INCOME TAX DEDUCTIONS• YOU CAN DEDUCT CONTRIBUTIONS OF MONEY OR PROPERTY FOR

THE USE OF THE CHAPTER, DISTRICT, OR SOCIETY. YOU CANNOT DEDUCT THE PART THAT REPRESENTS THE VALUE OF ANY BENEFIT YOU RECEIVE, E.G., FOOD OR TICKETS

• YOU CANNOT DEDUCT AMOUNTS YOU PAY TO BUY RAFFLE OR LOTTERY TICKERS. YOU CANNOT DEDUCT THE VALUE OF YOUR TIME OR SERVICES.

• YOU CAN DEDUCT THE COST AND UPKEEP OF UNIFORMS THAT ARE NOT SUITABLE FOR EVERYDAY USE AND YOU MUST WEAR WHILE PERFORMING WITH THE CHORUS.

PERSONAL INCOME TAX DEDUCTIONS• IF YOU ARE A CHOSEN REPRESENTATIVE ATTENDING A DISTRICT OR SOCIETY

CONVENTION, YOU CAN DEDUCT ACTUAL UNREIMBURSED EXPENSES FOR TRAVEL, INCLUDING A REASONABLE AMOUNT FOR MEALS AND LODGING, WHILE AWAY FROM HOME OVERNIGHT IN CONNECTION WITH THE CONVENTION.

• MEMBERS MAY DEDUCT TRAVEL EXPENSES TO PARTICIPATE IN CONTESTS AND PAID PERFORMANCES. MEMBERS CANNOT TAKE A DEDUCTION FOR MILEAGE TO AND FROM REGULAR REHEARSALS.

• YOU CANNOT DEDUCT PERSONAL EXPENSES, PAST CHAMPION SHOW TICKETS, OR TRAVEL, MEALS, AND LODGING FOR YOUR SPOUSE AND CHILDREN TO ATTEND.

PERSONAL INCOME TAX DEDUCTIONS

• YOU CAN DEDUCT UNREIMBURSED OUT-OF-POCKET EXPENSE, SUCH AS THE COST OF GAS AND OIL USED IN YOUR CAR IN GIVING SERVICE TO THE CHAPTER. YOU CANNOT DEDUCT GENERAL REPAIR AND MAINTENANCE EXPENSE, DEPRECIATION, REGISTRATION FEES, OR THE COST OF TIRES AND INSURANCE. OR YOU CAN USE A STANDARD MILEAGE RATE OF $0.14 A MILE.

• AN OFFICER PERFORMING A SERVICE, SUCH AS THE CHORUS DIRECTOR, PROGRAM VP, OR TREASURER COLLECTING MONEY OR PAYING BILLS AT A REGULAR MEETING, MAY DEDUCT MILEAGE

• ALL OFFICERS ATTENDING BOARD MEETINGS, LEADERSHIP ACADEMY AND OTHER OFFICIAL FUNCTIONS MAY DEDUCT THEIR TRAVEL COSTS.

PERSONAL INCOME TAX DEDUCTIONS• TO TAKE A CHARITABLE DEDUCTION, YOU MUST FILE FORM 1040 AND ITEMIZE

DEDUCTIONS ON SCHEDULE A. IF YOU TAKE THE STANDARD DEDUCTION, YOU WILL NOT GET ANY ADDITIONAL TAX SAVINGS FOR YOUR CONTRIBUTION.

• YOU MUST KEEP RELIABLE WRITTEN RECORDS FOR YOUR EXPENSES.

• IN 2007 AND BEYOND, FOR A MONETARY GIFT OF ANY AMOUNT, YOU’VE GOT TO HAVE “A BANK RECORD OR WRITTEN COMMUNICATION FROM THE CHARITY” DETAILING THE GROUP’S NAME, THE DATE, AND THE AMOUNT OF THE GIFT. PREVIOUSLY, YOU HAD TO GET AN ACKNOWLEDGEMENT FROM THE CHARITY IF YOU GAVE $250 OR MORE.

CHAPTER FINANCIAL REVIEW

REQUIRED BY SOCIETY

•SHOULD BE DONE IN JANUARY

•DUE MAY 15

•DON’T RISK SUSPENSION

BOARD APPOINTS COMMITTEE

•TWO ARE PREFERABLE

•NOT MEMBERS OF THE BOARD

CHAPTER BUDGETINTRODUCTION

•LET’S TAKE A VACATION

WHAT IS A BUDGET?

•FINANCIAL ROAD MAP

WHY DO WE NEED A BUDGET?

•ESSENTIAL PART OF GOOD RECORD-KEEPING

•RAISE LEVEL OF FINANCIAL AWARENESS OF YOUR BOARD OF DIRECTORS

•IMPORTANT TO LONG-RANGE PLANNING

CHAPTER BUDGET

WHERE HAVE WE BEEN?

•NICE TO KNOW…

WHERE ARE WE GOING?

•BETTER

HOW ARE WE GOING TO GET THERE?

•NOW YOU’RE TALKING!

•AND, IT’S NOT JUST ABOUT THE NUMBERS

CHAPTER BUDGET

WHERE ARE WE GOING?

•LOOK BEYOND ONE YEAR

–SPECIAL EVENTS

–FUTURE NEEDS (E.G. UNIFORMS)

GET EVERYONE TO DO THEIR HOMEWORK

•TREASURER IS NOT A KNOW-IT-ALL

•NEEDS VARY

–NUMBER OF PIECES OF NEW MUSIC

–TRAVEL

CHAPTER BUDGET

HOW TO ASSEMBLE

•USE INCOME / EXPENSE HISTORY AS A START

•EVERY EXPENSE LINE SHOULD HAVE A RESPONSIBLE INDIVIDUAL

•HAVE EACH OFFICER SUBMIT INCOME AND EXPENSE ESTIMATES FOR HIS LINE(S)

•CONSIDER BEST CASE/WORST CASE/MOST LIKELY

CHAPTER BUDGETTHINGS TO CONSIDER

REVENUE DRIVERS

•DUES

•SHOW REVENUE AND AD SALES

•UNIFORM CONTRIBUTIONS

•SPONSORSHIPS

•GRANTS

•MISC. – COFFEE, AFTERGLOWS, ETC.

SEE PP. 24-25 FOR CATEGORIES TO CONSIDER

CHAPTER BUDGETTHINGS TO CONSIDER

EXPENSE DRIVERS

•COST OF MUSIC

•SHOW VENUE AND ARTISTS’ EXPENSES

•OTHER SHOW EXPENSES – PRINTING, SETS, ETC.

•WEEKLY PROGRAMMING COSTS

•COACHING

•COSTS OF COMPETITION, E.G. TRAVEL

SEE PP. 24-25 FOR CATEGORIES TO CONSIDER

CHAPTER BUDGET

THINGS TO CONSIDERINTERNAL FACTORS

•CHAPTER MISSION

•MEMBER DEMOGRAPHICS

•CONNECTIONS TO COMMUNITY

•COMMUNITY INVOLVEMENT AND SUPPORT

•INTERNAL COACHING

SEE PP. 24-25 FOR CATEGORIES TO CONSIDER

CHAPTER BUDGETTHINGS TO CONSIDER

EXTERNAL FACTORS

•SIZE AND TYPE OF COMMUNITY

•AREA DEMOGRAPHICS

•OTHER CHAPTERS IN THE AREA

•OTHER ENTERTAINMENT OPTIONS IN THE AREA

•COMMUNITY INVOLVEMENT AND SUPPORT

•PUBLIC RELATIONS AND MEDIA ASSISTANCE

SEE PP. 24-25 FOR CATEGORIES TO CONSIDER

CHAPTER BUDGET

FOLLOW UP

•REVIEW AND UPDATE EVERY FOUR MONTHS

•USE ACTUAL VS. BUDGET REPORTS

•MODIFY THE BUDGET FOR CHANGING CIRCUMSTANCES – IT’S NOT CAST IN STONE!

•HAVE A DISASTER PLAN IN PLACE (I.E. YOUR “WORST CASE” SCENARIO)

INSURANCEGENERAL LIABILITY - $1 MILLION

•BODILY INJURY AND PROPERTY DAMAGE

•PRODUCTS LIABILITY

•MEDICAL

•LIQUOR LIABILITY

AUTOMOBILE LIABILITY

•USING PERSONAL VEHICLE FOR CHAPTER BUSINESS, E.G. TOWING TRAILER, HAULING MATERIAL

INSURANCE

UMBRELLA LIABILITY - $10 MILLION

•PROTECTS THE CHAPTER, DISTRICT, AND SOCIETY, BUT NOT INDIVIDUALS

PERSONAL PROPERTY - $100,000

•NON-CHAPTER PROPERTY IN YOUR CARE

CHAPTER PROPERTY

•NOT COVERED BY SOCIETY BLANKET POLICY

•OPTIONAL COVERAGE IS AVAILABLE

INSURANCE

BOND COVERAGE

•$50,000 FOR MISAPPROPRIATION

•AUTOMATICALLY APPLIES TO ELECTED CHAPTER OFFICERS

•MAY BE EXTENDED TO OTHER CHAPTER MEMBERS BY IDENTIFYING THEM IN THE MINUTES AS AUTHORIZED TO COLLECT MONIES

FUNDRAISING & GRANT WRITING

REASONS THAT SUPPORT APPLICATIONS

•PERPETUATE THE BARBERSHOP QUARTET

•PROMOTE VOCAL HARMONY AND FELLOWSHIP

•PROMOTE EDUCATION OF MEMBERS AND PUBLIC IN MUSIC APPRECIATION

•PROMOTE PUBLIC APPRECIATION OF BARBERSHOP HARMONY

•PROMOTE CHARITABLE PROJECTS TO SUPPORT MUSIC SCHOLARSHIPS AND CHARITABLE FOUNDATIONS

•INITIATE AND MAINTAIN MUSIC EDUCATION PROGRAMS

LADIES’ AUXILIARY

CAN BE AN IMPORTANT ASSET

•FUNDRAISING

•MORAL SUPPORT

MAKE THEM PART OF YOUR ORGANIZATION

•RUN THEIR MONEY THROUGH YOUR BOOKS

•DO NOT NEED A COMMON BANK ACCOUNT

WHAT WE COVERED•OVERVIEW, RESOURCE MATERIAL, TREASURER’S DUTIES,

CALENDAR

•BANKING AND ACCOUNTING BASICS

•USING QUICKEN FOR CHAPTER FINANCES

• IRS ISSUES AND THE FINANCIAL REVIEW

•BUDGET PREPARATION AND TRACKING

• INSURANCE, FUNDRAISING, OTHER

•CLASS TOPICS – DID WE COVER THEM?

•WRAP-UP