IPMA-HR Chapter Treasurers Training Guidelines for success Catherine M. Pennington, CPA Renner and Company, CPA, P.C. ipma-hr.org

Financial Statements Balance Sheet Assets Liabilities/Net Assets Cash Accounts payable Computer Net Assets (equity)

Financial Statements Income Statement Revenues Expenses Net Income

Sorting the Basic Data Chart of Accounts Organize it to match YOUR organization Assets, in order of liquidity Liabilities, short-term vs. long-term Net Assets This is your map

To software or not to software Excel Cash Rev 1 Rev 2 Exp 1 Exp 2 Jan 2 #2415 -xx xx Jan 6 Sam xxx xxx

Quickbooks (not Quicken) Accounting Software Lots of choices Quickbooks (not Quicken) Sage Desktop vs Online

Banking Account name and EIN Chapter’s vs. National’s (Remember the Corporate Resolution)

Authorized Signers Always have at least two (three is better) signers The “hit by a bus” rule Dual Controls The bank won’t monitor Use non-signer Board members Keep your signers up-to-date NEVER, EVER use a signature stamp It’s convenient for embezzlers, too

Chapter Bank Reconciliation   DATE Balance per bank $ 3,922 Balance per books $ 3,699 Less outstanding checks Less bank fees (3) Record #317 (17) #326 (201) Add bank interest 1 #299 (7) Add outstanding deposits - Adjusted bank balance $ 3,697 Adjusted book balance $ 3,697

Internal Controls Segregation of duties Separate recording function from asset custody/control 10

Segregation of Duties Signer shouldn’t do the bank recon Disbursements Signer shouldn’t do the bank recon Have another person view the bank account online

Segregation of Duties Remote deposit Cash receipts Remote deposit #1 deposits the checks and gives copies to #2

Reporting Who gets info? Management Board of Directors IPMA national office IRS

Forms 990, 990-EZ, 990-N For Calendar year entities – Due May 15 Different forms for different size organizations Failure to file can result in revocation of exemption No income tax only on exempt function or statutorily exempt income Other taxes may apply

Unrelated Business Income Trade or business Regularly carried on For profit Not substantially related to exempt purpose There are exceptions

Employee or Independent Contractor? Three Main Criteria Right to control how work is done Risk of financial loss Intention of the parties

Employee or Independent Contractor? But what about stipends?

Employee or Independent Contractor? Who cares? IRS Different reporting Different responsibility for taxes and other expenses

State and Local Requirements Annual corporate reports for States Usually a small fee, some financial data, list of Board members If you fail to file your corporate existence may be terminated Local Business licenses Business personal property tax

Questions? Contact: Cathy Pennington cpennington@rennercpa.com or call (703) 535-1200