Download - ASHRAE Chapter Treasurer
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ASHRAE Chapter Treasurer
Chapter
Financial Risk Management
for International Chapters
Chapter
Financial Risk Management
for International Chapters
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Financial Risk Management
– Chapter Treasurer Duties
– Financial Accounting & Banking
– Chapter Annual Audits
– Revenue and Taxation Reporting
– Fiduciary Duties
– Chapter Treasurer Duties
– Financial Accounting & Banking
– Chapter Annual Audits
– Revenue and Taxation Reporting
– Fiduciary Duties
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Chapter Treasurers
• Chapter Presidents: prepare balanced budgets for approval by BOG
• Treasurer shall make all deposits and issue all checks as authorized by the BOG.
• Treasurer to balance monthly statements & present to BOG for review and approval; keep records.
• Annual independent Audit Committee appointed by BOG; elect prior to annual Chapter meeting.
• Chapter Presidents: prepare balanced budgets for approval by BOG
• Treasurer shall make all deposits and issue all checks as authorized by the BOG.
• Treasurer to balance monthly statements & present to BOG for review and approval; keep records.
• Annual independent Audit Committee appointed by BOG; elect prior to annual Chapter meeting.
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Chapter Treasurers (cont’d)
• Chapter account used for operations only.
• Use separate account codes for special events such as CRC Fund or Scholarships.
• Responsible to file tax returns – check with local tax authorities regarding status of non profit establishments.
• Chapter account used for operations only.
• Use separate account codes for special events such as CRC Fund or Scholarships.
• Responsible to file tax returns – check with local tax authorities regarding status of non profit establishments.
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Financial Accounting and Banking
• It is recommended that each Chapter have its own copy of a reputable Financial Software.
• At least three Chapter officers should have signing authority.
• At least two signatures are required on each check (for sums of $100 and greater or suitable equivalent local currency).
• It is recommended that each Chapter have its own copy of a reputable Financial Software.
• At least three Chapter officers should have signing authority.
• At least two signatures are required on each check (for sums of $100 and greater or suitable equivalent local currency).
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Financial Accountingand Banking (cont’d)
• Consider separate bank accounts for high dollar special events.
• Where possible all Research Donations should be forwarded directly to ASHRAE Research.
• All investments should be in safe low risk investments (i.e. bonds, term deposits).
• Consider separate bank accounts for high dollar special events.
• Where possible all Research Donations should be forwarded directly to ASHRAE Research.
• All investments should be in safe low risk investments (i.e. bonds, term deposits).
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Chapter Financial Audits
• Set up Audit Committee made up of Past Presidents and/or senior ASHRAE members to perform annual audit.
• Larger Chapters may want to consider outside accounting firms to perform financial audits.
• Chapter Treasurers should not audit books for their year.
• Audit findings should be presented to Chapter BOG once per year.
• Set up Audit Committee made up of Past Presidents and/or senior ASHRAE members to perform annual audit.
• Larger Chapters may want to consider outside accounting firms to perform financial audits.
• Chapter Treasurers should not audit books for their year.
• Audit findings should be presented to Chapter BOG once per year.
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Revenue and Taxation Reporting
• To comply all formalities with regard to filling of financial statements and tax returns with the local state tax authorities.
• Income and expenditure, receipt and payment accounts for the year, to be drawn and audited by certified audit firm.
• To comply all formalities with regard to filling of financial statements and tax returns with the local state tax authorities.
• Income and expenditure, receipt and payment accounts for the year, to be drawn and audited by certified audit firm.
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Revenue and Taxation Reporting
• Your tax filing is due every year by the end of the __ th day of the __th month after the close of your year end.
• For most Chapters the year ends on June 30 but the Tax Filing must be completed by ___ (check with local tax office if not known).
• You cannot file until after your tax year ends.
• Your tax filing is due every year by the end of the __ th day of the __th month after the close of your year end.
• For most Chapters the year ends on June 30 but the Tax Filing must be completed by ___ (check with local tax office if not known).
• You cannot file until after your tax year ends.
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Information Needed To File
• Employee Identification Number (EIN) or alternatively Taxpayer Identification Number (TIN).
• Tax Year.• Legal name. (ASHRAE Chapter Chartered
name)• Mailing address.• Alternative name organization uses.• Name and address of principal officer.
(Chapter President)• Confirmation of annual gross receipts.
• Employee Identification Number (EIN) or alternatively Taxpayer Identification Number (TIN).
• Tax Year.• Legal name. (ASHRAE Chapter Chartered
name)• Mailing address.• Alternative name organization uses.• Name and address of principal officer.
(Chapter President)• Confirmation of annual gross receipts.
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Late Filing or Failure to File
• Chapters who fail to file tax returns risk local fines & loosing non-profit status.
• They also would jeopardize the Society’s Tax Exempt Status
• The Society could dissolve the chapter
• Chapters who fail to file tax returns risk local fines & loosing non-profit status.
• They also would jeopardize the Society’s Tax Exempt Status
• The Society could dissolve the chapter
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UNDERSTANDINGFIDUCIARY DUTIES
• As a Chapter Officer you have a Fiduciary duty to your ASHRAE Chapter.
• The Law.com - Dictionary defines a fiduciary as a person who has the power and obligation to act for another…under circumstances which require total trust, good faith and honesty.
• As a Chapter Officer you have a Fiduciary duty to your ASHRAE Chapter.
• The Law.com - Dictionary defines a fiduciary as a person who has the power and obligation to act for another…under circumstances which require total trust, good faith and honesty.
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Fiduciary Primary Duties
A Fiduciary has three primary duties:• Duty of Care• Duty of Loyalty• Duty of Obedience
A Fiduciary has three primary duties:• Duty of Care• Duty of Loyalty• Duty of Obedience
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Duty of Care
• Board members must exercise reasonable care in overseeing the organizations financial and operational activities.
• Board members must exercise reasonable care in overseeing the organizations financial and operational activities.
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Duty of Loyalty
• Board members must act solely in the best interests of the organization and its constituents, and not for personal gain.
• Board members must act solely in the best interests of the organization and its constituents, and not for personal gain.
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Duty of Obedience
• Board members must act in accordance with the organization’s mission, charter and bylaws, and any applicable state of federal laws.
• Board members who violate these duties may be held personally liable for any financial harm the organization suffers as a result.
• Board members must act in accordance with the organization’s mission, charter and bylaws, and any applicable state of federal laws.
• Board members who violate these duties may be held personally liable for any financial harm the organization suffers as a result.
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Avoiding Conflicts of Interest
• One of the most important components of the duty of loyalty is the obligation to avoid conflicts of interests.
• Step aside or abstain from voting when ever there is an appearance of a conflict of interest.
• Please review the ASHRAE Codes of Ethics. http://www.ashrae.org/publications/detail/14686
• One of the most important components of the duty of loyalty is the obligation to avoid conflicts of interests.
• Step aside or abstain from voting when ever there is an appearance of a conflict of interest.
• Please review the ASHRAE Codes of Ethics. http://www.ashrae.org/publications/detail/14686
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Can a Volunteer be Liable?
• A common misconception is that volunteers are shielded from liability. In fact, though they do enjoy some protection from financial responsibility, that protection isn’t absolute.
• ASHRAE Security & Privacy Policy does not apply to sites of any ASHRAE chapter, region, student branch, technical committee or other group affiliated or associated with the Society.
• A common misconception is that volunteers are shielded from liability. In fact, though they do enjoy some protection from financial responsibility, that protection isn’t absolute.
• ASHRAE Security & Privacy Policy does not apply to sites of any ASHRAE chapter, region, student branch, technical committee or other group affiliated or associated with the Society.
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ASHRAE Chapter Best Practice
• Enjoy your participation in ASHRAE • Enjoy your participation in ASHRAE