1. The Construction Specifications Institute CSI Chapter Financial Education Webinar Series #4: “Changing of the Guard – Treasurer’s Orientation” July 15, 2010

2. Your Hosts Today ~ Robert Simmons, FCSI, CCPR CSI’s Treasurer Immediate-past Director of CSI’s Northwest Region Member, CSI Board Operations Committee Michelle Brown The Novick Group Shannon MacGregor, MBA, CAE CSI’s Director of Finance & Operations 2

3. Welcome! Introduction, Webinar Schedule 3

4. Financial Webinar Schedule 1.Oct 21, 2009 – Financial Overview 2.Dec 9, 2009 – Form 990 3.Mar 24, 2010 – Budgeting 4.Jul 15, 2010 – Treasurer’s Orientation 5.FY2011 – To be determined 4

5. www.csinet.org/cfwebinar Webinar materials are posted at this online location, and are available for your download and use 5

6. Today’s Course Objectives Congratulations – You’re the Chapter Treasurer! Understand your fiduciary responsibilities Ensure a smooth transition into the new fiscal year Start your year off with confidence 6

7. “…As Chapter Treasurer, you’re the financial focal point for your chapter, your president, and your board…. You’re the key contact for your chapter’s dues disbursement and recordkeeping…”

8. Leader Guides at www.csinet.orgwww.csinet.org

9. Getting to be a Chapter Treasurer No formal financial background required – mostly “on the job” training at the chapter level Experience gained through participating as budget chair or finance committee chair Treasurer’s term is usually more than 1 year for continuity

10. Treasurer’s Duties Prepare and maintain the chapter budget Manage chapter cash and investments Provide financial reports to chapter board for monthly meetings Prepare region reports on the health of your chapter (membership trends, program updates, financials) Coordinate chapter audit by outside firm

11. Orientation: First things first  Documentation  Policies  Reporting 11

12. Review Chapter Legal Documents :  Charter  Articles of Incorporation  Bylaws  IRS Letter of Determination of Tax- Exempt Status  Form 990 Tax Return  Audit Report  Insurance Policies  Business Contracts Documentation 12

13. Paperwork Basics…. By Feb 1 st, Dues Updates to Institute By Apr 30 th, Officer and Chair Forms to Institute

14. Policy Basics….  Financial Policy  Investment Policy  Document Retention Policy  Internal Controls Policy  Chapter Handbook

15. Reporting Basics…  Tax exempt 501(c)(6)  Fiscal year beginning July 1  Accrual basis of accounting  Annual budget, and accountability  Accurate and timely financial reports

16. Orientation: First things first  Banking  Budgeting  Managing 16

17.  Update all signature cards and documents at the bank with newly authorized officers’ names  Meet with outgoing Treasurer and reconcile all account balances and transfers  Enroll your chapter in the direct deposit program through Institute for electronic receipt of monthly dues Banking 17

18. Budget / Financial Leadership  Serve as Chairman of the Chapter’s Finance Committee  Review financial history and past budgets  Understand monthly cash flows and cash reserves  Develop a sound 12-month budget by committee; present to Chapter Board for approval  Regularly review budget with the Board and make quarterly adjustments if needed 18

19. Financial Management  Review chapter financial statements  Prepare timely reports to the Board: –Balance Sheet –Income Statement –Cash Flow Statement –Other analysis (member stats, ratios, variances, etc.)  Submit financial report at annual business meeting  Assist in annual audit review 19

20. Treasurer’s Role Mentoring Revenue oversight Setting dues rates

21. Treasurer mentoring  Chapter Finance Committee, working with the Budget Chair and Treasurer  Identify your Committee replacement, Mentor a member  Budget Chair, 1 to 2 years  Treasurer, at this point you have worked with the chapter board  Success is in continuity of the team

22. Chapter Revenue Sources Chapter dues Product fairs Charitable fundraisers Interest income from investments Look for other financial opportunities (Take them to the Board)

23. Setting Chapter Dues Rates Perform dues analysis and present findings to chapter board Dues increases may be needed to accommodate special programs in the chapter budget Chairs have input to Program meetings, where this information comes to light Rate changes due to Institute Feb 1, (This is mailed to your Chapter Secretary)

24. Internal Controls and Risk Management Directors and Officers Insurance 24

25. Internal Controls  Minimize temptation for fraud  Instill checks and balances; separation of duties  Safeguard assets from physical loss  Ensure accuracy and reliability of accounting records  Document all policies and procedures for financial transactions and persons responsible 25

26. D&O Insurance Who is insured? Directors Officers Committee members Employees Volunteers …acting within the general scope of their authority on behalf of the organization…. 26

27. D&O Insurance What are the Most Common Claims? Employment practices liability Libel, slander, defamation Copyright infringement and plagiarism 27

28. D&O Insurance Significant Exclusions: Bodily injury Property damage Fraud ERISA 28

29. D&O Insurance - Myths Myth: My homeowners policy covers me. Truth: In rare cases it might, but for the most part, Board members cannot rely on their homeowners insurance to cover their association Board service (regardless of whether they are compensated for that service) 29

30. Summary, Review, and Other Resources 30

31. As a financial leader you have options for success As a leader you have resources from within your chapter and region Other leaders, past leaders, leaders outside your chapter or region. You also have Institute leaders and staff to assist. What is your vision as a financial leader? What is your goal? What does your financial plan look like? Financial Leadership in Review 31

32. Treasurer Resources  CSI Leader Guide for Treasurers at www.csinet.org www.csinet.org  Chapter Leader Toolbox also at www.csinet.org www.csinet.org  CSI Chapter Relations: chapterrelations@csinet.org, or 1-800-689- 2900, ext. 4771 chapterrelations@csinet.org  State C.P.A. Societies  Chamber of Commerce  Local accounting service providers

33. Summary In this presentation, we examined: –Chapter documents –Banking responsibilities –Budgeting and financial oversight –Internal controls and risk management –Insurance decisions 33

34. Any questions? Thank you for your time and participation today!  Robert Simmons, FCSI, CCPR arobertwsimmons@cs.com  Michelle Brown, The Novick Group mbrown@novickgroup.com  Shannon MacGregor, MBA, CAE smacgregor@csinet.org 800-689-2900, ext. 4730 34