Division Finances: Aligning Resources with Goals Texas Counseling Association

Strategic Direction TCA has a secure organizational structure with sound fiscal management.

Agenda Financial Process Overview Fiduciary Duties Internal Controls Financial Services IRS Information Annual Budget Income Expenses Monthly Financials

TCA Financial Process Overview Executive Director & Staff Have an idea … TCA Treasurer Presents idea to Finance Committee … TCA Board Determines if idea is aligned with TCA Strategic Plan then approves & submits motion to the Senate … Finance Committee Reviews & analyzes the idea & develops a motion …

TCA Senate Discusses the motion … Motion Adopted!!

Corporate Responsibility Under Texas Law, “A Division of a Corporation is not a separate legal entity but is the corporation itself.”

Fiduciary Duties Duty of Loyalty Duty of Care Duty of Obedience Requires the individual, when making a decision or acting on behalf of the association, to set aside personal or conflicting interests and act solely in the best interest of the association. Duty of Care Requires the individual to discharge duties in good faith, in a manner one reasonably believes to be in the best interests of the organization. The individual must devote the time, attention and resources necessary to understand and prudently oversee the affairs of the organization. Duty of Obedience Requires the individual to obey all laws pertaining to the association and act in furtherance of the association’s strategic purposes.

Internal Controls Segregation of Duties Receipts Disbursements Keep more than one person involved Receipts Keep copy of receipts and invoices Disbursements Review appropriateness of payments Obtain required authorizations TCA Record Retention Guidelines are available

Financial Services Process division membership applications 10% of Division revenue is retained by TCA to help cover bank charges and administrative costs to provide the following services: Process division membership applications Process division expense vouchers and revenue deposits Prepare quarterly division financial & monthly membership reports Distribute reports electronically to Division President, Treasurer & Director Financial & budget consultations upon request Preparation and filing of federal tax reports & annual audit Update Incoming Leadership contact information – President submits the annual report in June the incoming leadership

Financial Services Division dues changes are due by November and they take effect in January Professional Development Grants up to $200 per division per year are available to support workshops and conferences in underserved areas Support for Division websites. Website updates and enhancements have been completed. As a reminder, all division dues rate changes should be approved by the division by November 2017. Implemented on January 1, 2018.

IRS Information TCA is a 501c3 Tax Exempt Organization Allowed to take tax deductible donations from individuals. Currently the EEF (Educational Endowment Fund) is the program setup for donations. 2017 Mileage rate Effective Jan 1, 2017, the standard mileage rate for the use of a vehicle is 53.5 cents per mile. IRS Rules on Stipends & Reimbursements Stipends are considered income, therefore, instead of stipends, TCA provides reimbursements based on actual receipts.

Annual Budget Fiscal Year: July 1 – June 30 In March, TCA provides each Division a worksheet with: Prior Year End Income & Expenses Current Year Budget Year-To-Date Income & Expenses A column for figuring upcoming year Budget Create & submit your final budget to your board for approval Submit board-approved budget to TCA by the April deadline Division Budgets are included in the TCA Budget TCA Budget Planning takes place in late April/early May TCA Board & Senate approve budgets at June meetings

Annual Budget Division Treasurer and Division President should lead the creation of the budget Estimate your activities for the upcoming year Tie your activities back to the strategic plan Keep your notes! List your budget assumptions Be both ambitious and realistic as you plan your budget.

Budget Template Changes this year: TCA staff prepares the templates for all twelve divisions Division calculates Proposed Budget for the new year The divisions needed to identify a strategic plan goal and a narrative for how they arrived at each of the numbers. Finance committee approves each division’s budget.

Income/Deposits Division income comes mainly from membership and conferences/workshops Majority of income received through online transactions Check payments are received at a bank lockbox & processed by TCA office Funds collected at division events are sent to TCA office for deposit

Expenses Use current Division Expense Voucher (PDF or Excel) All expenses require accounting codes Approval by Division Treasurer or President required Treasurer or President cannot approve their own reimbursement voucher E-Signatures & email approval acceptable Include copies of receipts (originals not required) Submit within 10 days of the expenditure Email is preferred method of submission Keep copies for your records

Expense Voucher

Financial Reports 1. Budget vs Actual 2. Profit & Loss Statement Shows income & expense compared to budget 2. Profit & Loss Statement Shows income & expense for the current month and YTD 3. Profit & Loss Detail Shows detail line by line item 4. Enrolled Member Roster Shows individuals who joined or renewed during the month 5. Expired Member Roster Shows individuals whose membership expired at month end and who have not renewed by the time the report was pulled 6. Total Current Members Shows all current members Consider your members as customers. Define the benefits they derive from the membership. Maintain contact. Prepare a mail merge from the membership list that is sent every month. Introduce your new members to your division – provide them a point of contact and reach out to those that do not renew.

Budget vs Actual

Profit & Loss

Detail-Income

Detail - Expense

The End