National education association

Pdf File 1,479.48 KByte, 115 Pages

Title: National Education Association
Author: JSiegel
Creator: Microsoft Word 2010
Producer: Microsoft Word 2010
CreationDate: Mon Jan 6 08:59:58 2014
ModDate: Mon Jan 6 08:59:58 2014
Tagged: yes
Form: none
Pages: 115
Encrypted: no
Page size: 612 x 792 pts (letter) (rotated 0 degrees)
File size: 1514988 bytes
Optimized: no
PDF version: 1.5

  • DODGE CITY NATIONAL EDUCATION ASSOCIATION
  • National Education Association
  • National Education Goals for - U.S. Department of Education

National Education Goals for - U.S. Department of Education

National Education Association
Local Treasurer's Handbook
DECEMBER 2013
December 2013
Dear Treasurer / State Business Manager:
We are pleased to forward you the 2013 edition of "The Treasurer's Handbook". It is our hope that this
will form the basis for your manual to be distributed to each local.
The Handbook includes a wealth of information and detail with special emphasis on internal controls,
internal audit committees and fiduciary responsibilities. Much is applicable to all locals. Feel free to
modify this document by addition or deletion to best meet the needs of the local(s) receiving this
document. The material should also prove to be a useful resource for your state needs.
Although NEA and many state affiliates have developed a strategic plan and budget, most locals utilize
the more basic line item approach. Therefore the budget segment may not be relevant to all locals.
An extensive financial reporting system exists at both NEA and most state affiliates. Again, the more
simplified "QuickBooks" accounting software is set forth as one method currently utilized by many
locals.
The salient point is to develop a structure for the financial activities of the local to be properly
addressed.
The NEA Financial and Membership Services department is ready to assist you and/or your financial
personnel with customization of this document and serve as a resource for providing assistance in
response to issues, questions and/or concerns in this regard.
Sincerely,
Linda C. Campos, CPA
NEA Financial and Membership Services
TABLE OF CONTENTS Page #
I. General Financial 5-16
Fiduciary Duties of all Officers and Employees
Responsibilities of the Treasurer
Transitioning the Treasurer
Conflict of Interest Policy
Code of Ethics
Incorporation
Tax Exempt/Not-for-Profit Status
Internal Revenue Service Requirements
Internal Revenue Service Audit
Independent Annual Audit/Review
Selecting an Accounting Firm
Internal Audit Committee
Glossary of State and Federal Forms
II. Financial Procedures and Accounting Concepts 17-22
Financial Requirements
Financial Organization
Financial Policies
Financial Statements
Accounting Terminology and Concepts
III. Budgeting 23-27
Budget Philosophy
Budget Development
Budget Implementation
Variance Analysis
Cash Reserves
Investments
IV. Accounting Systems 28-35
Accounting Software Recommendations
The Checkbook Register
Cash Receipts Journal
Cash Disbursement Journal
General Purpose Checking Account
Petty Cash
Bank Reconciliation
V. Internal Control & Banking Relationship 36-42
Basic Controls
Quick Reference "Do's and Don't's"
Fraud
Banking Relationship
Fidelity Bond Program
VI. Membership Procedures 43-44
Membership Information and Processing
Dues Transmittal and Enforcement Procedures - NEA
VII. Fundraising and Contribution Transmittal Rules 45-62
General Rules
Rules Governing Fundraising
NEA Disclaimer Language
Collecting and Transmitting Contributions
Joint Fundraising
IRS Rules Governing Political Activity
Filing Categories & Requirements of Political Organizations
VIII. Retention Guidelines 63-66
U.S. Government Retention Requirements
Sample Document Retention Policy
lX. Financial and Operational Standards 67-85
Introduction
Code of Ethical Conduct
Integrity of Internal Controls
Responsibility of Audit Committee
Audit Committee Independent Financial Expert Qualifications
Whistleblower Policies - Officials and Employees
Conflict of Interest Policies - Officials and Employees
X. Appendix - Sample Forms, Journals and Other Policies 86-115
Budget Worksheet
Model Budget
Cash Receipt Journal
Cash Disbursement Journal
Expense Voucher
Sub-Classification Account
Cash Disbursement Detail
Petty Cash Voucher
Bank Reconciliation
Mileage Log
Travel Expense Voucher
Quarterly Audit Review Checklist
Warning Signs of Fraud
Governance Expense Policy
NEA Academy - Online Local Treasurer Training
Sample Year of Local Treasurer
Sample Letters to Local Treasurers
Sales and Use Tax Requirements
Expense Reimbursement Rules
l. General Financial
The purpose of this handbook is to help you develop sound financial policies with good bookkeeping
procedures. The information presented is not intended to be all-encompassing. It has been written by
treasurers for treasurers and local leaders and incorporates idea and procedures they have found to be
successful. In addition to this handbook, we offer online local treasurers training via the NEA Academy.
(Refer to the Appendix for additional information)
The duties of a treasurer are at least fourfold: 1) to operate a sound financial operation including tax
and other regulatory reporting; 2) to be able to explain the use of all money; 3) to justify the dues and
the budget; and 4) to provide effective leadership to your association. This handbook will be
concentrating on the first two of these duties. It has been noted that if the first two are achieved, the
second two follow naturally.
Accountability is essential for your association because your association is accountable to a number of
constituencies. Your association is responsible to its members. Having a tax-exempt status carries a
much broader responsibility. Because of this broad population of stakeholders, and because your
association depends heavily on dues from members, it is vital that your financial affairs be conducted
above reproach. The relationship between your association, its members, and the community as a
whole is a relationship based on trust. Once that trust is lost, it is difficult, if not impossible to regain.
Financial mismanagement can destroy your greatest asset, the reputation of a not-for-profit
association. In an environment in which confidence in many institutions is eroding, your association
must clearly demonstrate the best financial practices.
Fiduciary Duties of all Officers and Employees
(Refer to Appendix for "Sample Year of the Treasurer"
Safeguard the assets of the association.
Ensure the resources of the association are utilized to the maximum benefit of the members.
Responsibilities of the Treasurer
Act for the good of the association and exercise reasonable care in all decision-making.
Understand basic financial terminology.
Maintain complete, accurate and timely financial records.
On a monthly basis, present complete and meaningful financial reports to the Directors and
members of the association for their review and approval.
Comply with federal, state and local reporting requirements including tax filings and political
expenditure reports.
Collect membership dues and transmit State and National dues in accordance with association
bylaws and dues transmittal agreements.
Compare the actual income and expenses of the association with the approved budget. Note any
variances and recommend budget adjustments as necessary.
Coordinate and assist with an annual financial audit or review of the association funds.
Assist in the Assessment, Measurement and Evaluation of association programs and projects if
applicable.
Monitor the cash flow and cash needs of the association to maximize investment income and
minimize borrowing.
Transitioning the Treasurer
At the beginning of the new membership year, it is the outgoing Treasurer's responsibility to transition
this vital role to the incoming Treasurer. Although the handbook discusses roles and responsibilities,
the outgoing Treasurer's expertise regarding local membership and financial information is invaluable:
Outgoing Treasurer: Pass along all membership and financial records and data such as:
Duties & responsibilities
Constitution & bylaws
Policy & procedure manuals
Committee information
How-to manual (if available)
Contact lists (phone numbers, emails, etc.)
UniServ information
Due dates
Annual events
Meeting requirements
Mail
Electronic & paper files
Passwords
Budget
Bank statements
Bank account signature & access changes
Checkbook & register
Cash receipts & disbursement records
Treasurer reports and financial statements
Tax and other regulatory filings
Change of address for statements:
o Bank
o School District
o IRS
A "walk about" to introduce the new officer to contacts
Incoming Treasurer: Ask lots of questions, such as the following:
What has worked well?
What has been a challenge?
Who to "go to"?
Who are the "blockers"?
What do I do when...? (i.e. IRS letters)
What tools have been most useful?
What training/workshops should I consider?
What meetings will give me the best information?
What seems to work for managing my calendar and time?
When you became an officer, what was the greatest challenge you faced and why?
What is the most helpful thing someone did for you to help you be a better officer?

Download Pdf File Online Preview