Lisa Murfield, MBA, SPHR, GPHRHR Tampa, Inc.

Role of Chapter Treasurer Chapter Financial Management

Chapter Financial Strategies Policies and Procedures Resources

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

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

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

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”

Software◦QuickBooks

Online capabilities Free trial at https://login.quickbooks.com

◦Quicken◦Excel◦Access

Professional Accountant

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

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

Write checks as soon as possible after documentation received (i.e. one week)

Record in checkbook or generalledger in a timely manner

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

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

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

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

Insurance◦Directors & Officers Liability Insurance

◦Fidelity Bonds

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

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

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

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

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

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

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