Treasurer Training
Penny Wirsing, FY13 Treasurer
Agenda
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Treasurer Responsibilities
Recommended Policies
General Financial Procedures
Budgeting Fundamentals
Assessment and Audits
Fund Raising and Fund Development
Financial Report Forms
Federal Tax Exemption
IRS Filing Requirements
Additional Resources
Finance Manual
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(Governance Docs)
Page 2
Responsibilities of the Treasurer
The Treasurer is part of the Executive Committee and
works with the team to ensure the financial assets are
tracked and protected, including:
• Collect, safely keep, and distribute funds
• Sign checks (along with designated others)
• Keep an exact accounting of all receipts and expenditures
• Prepare and submit the annual financial report to HQ by 7/30
• Present a financial report at each meeting of the executive council,
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and answer inquiries on financial matters
Assist in preparing the annual budget
File annual e-Postcard or 990 tax forms
Assume other financial duties as assigned
Note that other EC members have responsibilities as well
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Records to be Provided to New Treasurer
The following should be available for hand-over:
• Copies of previous 2 annual financial reports filed with the Society
• Section/MAL/Region EIN
• Financial institution(s) name, local branch, address, account
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numbers and on-line access information (new treasurer should
change the password, possibly address where statements are sent)
All financial records from the previous year, including e-Postcard
log-in (if applicable)
List of currently authorized check signers (may need to change)
Copy of budget (if approved in the prior fiscal year)
Check books and registers
Tax exempt paperwork, if applicable
See manual for recommendations on records to be archived
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Recommended Policies
Financial Policy (Appendix A, B and E)
• Covers how assets are handled, how changes in budget are
approved, how to get reimbursed, etc.
Investment Policy (Appendix C)
• Covers types of investments permitted
• We should not be investing for the sake of investing, there should
be a purpose
Program Plan (Appendix D)
• Multi-year strategy for long term programs, includes fundraising
goals, funding from assets
Examples of these and others are available in the Finance Manual
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General Financial Procedures
Basics for Safeguarding Financial Assets
• Keep records up to date
• Prepare monthly financial reports and provide to Executive Council
for review
• Update bank signature card whenever changes occur
• Review bank statements and reconcile on a monthly basis
• Review invoices and supporting information prior to check writing
• Keep only small amount of petty cash
• Identify a treasurer known by others
• Do an internal assessment annually (covered in more detail, slide 9)
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Financial Records
Should include:
• Journal – to document income
and expenses (ex. Quicken)
• Statement of Financial Position
(aka Balance Sheet) – to
measure “worth”, lists assets
(inventory, accounts) and
liabilities (payables)
2013 Budget
Category
1.0.0
EXPENSES
1.1.0
Administrative
1.1.1
General
1.1.1.1
PO Box Rental
1.1.1.2
Letterhead
1.1.1.3
Postage - Misc.
1.1.1.4
Bank Charges
Subtotal
1.1.2
Newlsetter
1.1.2.1
Printing
1.1.2.2
Postage
Subtotal
1.1.3
Region Meeting Travel
Subtotal
Continuing
1.2.0
Development
1.2.1
Monthly meetings
1.2.1.1
Meals
1.2.1.2
Speakers Meals
Subtotal
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Budget
Actuals
Budgeting Fundamentals
Budget
• Simply a plan of expected sources of income and expense
• Should be drafted prior to year end with input and approval from
incoming EC – budget can be amended but should be basis for $
• Can be cash basis (recognized when received), or accrual basis
(recognized when incurred)
Events
• Remember to incorporate costs such as funds to be raised,
minimum attendance requirements, taxes and gratuities,
cancellation charges
Dues Rebates
• Paid twice/year, must have submitted prior year financial report
• Checks not cashed within 6 months must be re-issued
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Assessments & Audits
Assessments (Section VII.A)
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Recommended annually by subcommittee of Section/MAL/Region
Chair to be appointed by EC, plus 2 additional members
Treasurer can’t be on committee but should provide information
Objectives are to safeguard assets of the organization, ensure
accuracy and integrity of data, and make recommendations to
improve accounting systems
• Records are retained by Section/MAL/Region (do not send to HQ)
Audits (Section VII.B)
• Recommended every 3-5 years if >$5K income or >$20K assets
• Must be conducted by a paid auditor – contact Audit or Finance
Committee for more information
Assessment Forms2
(SWE Money)
Page 9
Fund Raising / Fund Development
Fund Raising provides resources for activities
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Should be in keeping with professional image of SWE
Donors >$250 should receive acknowledgement (Appendix G)
Some states require registration to solicit funds
See Finance Manual for examples, additional information
Fund Development is building a long-term base
• Develop relationships with industry and/or individuals
• Builds on loyalty and consistency
• Should be integrated into long term strategic plan
Don’t forget Program Development Grants, Matching funds
Can also endow a scholarship through HQ
Endowment FAQs3
(SWE Donate)
Page 10
Financial Report Forms
• Located under SWE Governance, Financial Report Form
• Prepared by Treasurer, reviewed by President/Governor, due 7/30
• Rebates are forfeited
SOCIETY OF WOMEN ENGINEERS
if report not submitted
SECTION FINANCIAL REPORT for year ending 6/30/2012
• Two forms available,
Please see report instructions below.
same for collegiates
FOR FISCAL YEAR: JULY 1,
THROUGH JUNE 30,
and professionals
• EZ Financial Report (This report is due no later than 30 days following the close of the fiscal year (June 30th). A section's dues
rebates will be withheld if the section has not filed a financial report for the preceding year.)
for <$10,000
• Financial Report for Section No.
Section Name
President's or Permanent Section Address:
>$10,000
• Recommend OnLine Reporting Tool Is the Section incorporated?
If Yes, in what state? _____________________
for Submittal
Did the Section file an IRS 990/990T form?
Financial Report
Instructions4
(Governance Docs)
TAX IDENTIFICATION NUMBER (TIN)
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Tax Exemption
All sections can be covered by SWE 501(c)3 status
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Provides exemption from federal taxes, allows certain donations
Many sections already are – contact HQ to confirm
Individual sections need to request this of HQ by March 1
Must obtain a section EIN# prior to request (Appendix F)
HQ files documents by end of March annually
Some collegiate sections may be covered by their university
State tax exemption
• Varies by state, must be pursued by individual Sections/MAL/Regions
Request for Tax Exemption5
(Governance Docs)
Page 12
IRS Filing Requirements
Submit between July 1 and November 15
For sections with gross receipts <$50,000
• Submit IRS Form 990-N
• Commonly referred to as the e-Postcard
For sections with gross receipts >$50,000
• Submit a full IRS Form 990 or 990EZ
SWE does not cover any of this filing for the sections
What happens if you don’t file?
You risk losing your tax-exempt status!!
Go to www.irs.gov/eo for complete details or review the
information in the Finance Manual (Appendix H)
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Finance Manual
• Updated in July 2012
• Everything you need
to know is in here –
please provide
feedback for additional
clarification or topics
• Located in SWE
Governance
Documents and SWE
Money Community
Finance Manual1
(Governance Docs)
Page 14
For Finance Questions or More Info
Penny Wirsing, FY13 Treasurer
[email protected]
LeeAnn Escobar, Finance Chair
[email protected]
Cindy Hoover, Finance Chair-Elect
[email protected]
On-Line Resources
• SWE Communities – SWE Money
• SWE Governance Documents
• IRS Web page: www.irs.treas.gov
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