Chapter Financial Reporting July – June Mary Beth Lech, CFCM, Fellow NCMA Corporate Secretary NCMA Chapter Relations Manager Sam Smith, NCMA Chief Financial Officer NCMA Corporate Treasurer

1 NCMA We’re a 501 © 6 Not for Profit –We do pay taxes Chapters are not separately incorporated –When NCMA files the tax return, the chapters are included in our group return if certain conditions are met NCMA is required to submit a roster of names and mailing addresses of chapter officers to the IRS

2 Chapter Annual Reporting Requirements Prescribed in NCMA Policy 5-7 –Chapter Annual Report –List of Officers and Volunteers –Copy of Chapter Bylaws –Chapter Audit Report –Chapter Financial Report

3 Where are the forms? NCMA Resources Page –Chapter Tab Chapter Leader Materials >>Chapter Financial Information>> Folder ls/Forms/AllItems.aspx?RootFolder=%2fchapters%2fChapter%20Lea der%20Materials%2fChapter%20Financial%20Information%2f2012% 2d2013&FolderCTID=&View=%7b67106F6B%2d8B3F%2d4508%2d9 ECA%2d30CE21D180C6%7d

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8 Chapter Annual Reporting Requirements Reports are due by August 31 st Reporting period is July 1, 2012 – June 30, 2013

9 Why August 31 st ? On time reporting with all items will qualify your chapter to be considered for a Graalman award. Submission required in order to be considered for a Chapter Grant. Submission required to be included in the NCMA Group Tax Return.

10 Chapter Audit Report Simple Checklist form Can not be filled out by the chapter treasurer –Prefer that it not be filled out by any chapter officer –Prefer that it not be filled out by anyone who handled financial transactions (like a NES registrar) Does not have to be a CPA

11 Chapter Audit Report Form NATIONAL CONTRACT MANAGEMENT ASSOCIATION Annual Chapter Audit Checklist for the Year Ended June Yes/No * 1. Were interim chapter financial statements/reports submitted to chapter executive assembly on a periodic basis during the year under audit? 2. Was the financial statement for the year under audit completed and submitted to chapter executive assembly and submitted to the National Office? 3. Are signature cards and other authorizing documents current? 4. Have bank reconciliation been completed through the most recent bank statement received? 5. Are bank reconciliation conducted/reviewed by someone not having signature authority on the account(s) at least quarterly? 6. Are all checks/withdrawals/transfers documented as to purpose and payee/destination of funds? 7. Are all deposits supported by documentation showing source of revenue (number of meeting attendees, NES reports, etc.)? 8. Are moneys collected by a different person than the person making the deposit? 9. Are other business income, such as advertising on newsletters and web sites, accurately reported on the chapter financial statements? 10. Are all chapter financial accounts and instruments identified and financial data incorporated in the financial report? 11. If chapter gross receipts for the year exceed $25,000.00, was an IRS form 990 prepared and submitted? *If your Chapter Financial Report is submitted by the 8/31/2013 deadline, you will be included in the group return and will not be required to file a 990 with the IRS. * If “No”, provide an explanation of the issue and how it is being dealt with. If additional space is needed, continue on a separate sheet. I certify that I am not an officer of ________ _ Chapter, nor am I involved with chapter finances for the accounting period ended June 30, I have verified the supporting information for the above questions, and I certify that my responses are complete and accurate. ________________ __ __________ Name Member # ___________________________________________________ ___________________ Chapter Tax ID # Date I confirm that ______________________ was requested by the chapter officers to complete this Annual Chapter Audit Checklist and that the completed checklist has been provided to chapter executive assembly. ____________________________ _______________________ Chapter President (For the Year Ended June 30, 2013) Name Signature

12 Chapter Financial Report

13 National Contract Management Association FY 13 Chapter Financial Report For the Year July 1, 2012, to June 30, 2013 Chapter Name: Chapter NCMA Number: Chapter Federal Identification Number (Note 1)

14 Beginning balance in all accounts: $ - Revenue (Note 2):Interest Income: Chapter Grants Educational Activities: NES Seminars Webinars Luncheon/Dinner Speakers Other (list by type of revenue): Advertising revenue: Website/other Sponsorship - Taxable - (Note 3) Sponsorship - Non -Taxable - (Note 3) Other Revenue - list by type of revenue: Total Revenue $ -

15 ExpensesOperating expenses: Meeting Food and Beverage Meeting Room Rental (Room, a/v etc.) Speaker travel Speaker gifts Other Meeting expenses Office expenses Advertising expenses: Website/Other Information technology (including websites) Insurance Other Expenses - (Note 4) -list by type of expense: Grants/Scholarships (Note 5): Chapter Leader Travel Total Expenses $ -

16 Net surplus/(deficit) for the year: $ - Ending balance in all accounts: $ - The ending balance is held in the following accounts: Bank account number 1Bank Name Bank Address Type of Account Account Number Account Balance - enter amount in box Account number 2 - if applicableBank Name Bank Address Type of Account Account Number Account Balance - enter amount in box Account number 3 - if applicableBank Name Bank Address Type of Account Account Number Account Balance - enter amount in box The Financial Report is prepared on a cash basis and only payments that have cleared $ - the chapter bank account by June 30 should be included under expenses.Cell E 72 should always be zero

17 Signed: Chapter Treasurer/Chapter President Date:

18 SUPPLEMENTARY INFORMATION REQUIRED BY THE IRS FOR TAX FILINGS. FAILURE TO PROVIDE THIS INFORMATION WILL RESULT IN THE CHAPTER BEING EXCLUDED FROM THE NCMA GROUP RETURN AND WILL MEAN THE CHAPTER IS OBLIGATED TO FILE ITS OWN TAX RETURN.

19 Grants and Scholarships Awarded:See Note 5 below 1) The type of grant/scholarship given. 2) The name of the individual(s) who received the grant/scholarship. 3) The total dollar amount of each type of grant/scholarship. DescriptionGrant/Scholarship RecipientAmount $ $0.00

20 Board Members: 1) List all Board members, Title, and whether any of the Board members received compensation from the Chapter (The list below should include all Board members who served in the year ended June 30, 2013) Officer Name of Board MemberTitleY/NCompensation $ $0.00 2) Did any Board member (or their family members) receive any payment other than compensation from the chapter? (Do not report any expense reimbursements in respect of expenses incurred on approved chapter business) Name of Board Member or Family MemberDescription of PaymentAmount $ $0.00

21 3) Are any of the elected Board members related to each other? Name of elected Board MemberRelationship Volunteers: How many volunteers does the Chapter have? An estimate can be given.

22 NOTES 1. Federal Tax Identification Number (EIN) All NCMA chapters in order to be included under the NCMA Group Return must have a Federal Tax identification number. If the chapter does not have a tax ID number, contact the IRS or NCMA's Finance Department for information on obtaining one. 2. Aggregate Revenues If the total chapter receipts exceed $25,000 during the fiscal year and the chapter is not included in the Group Return you must file an IRS Form 990EZ. If the total chapter receipts are less than $25,000 during the fiscal year and the chapter is not included in the Group Return you must file an IRS Form 990N.

23 3. Sponsorships When a chapter event is sponsored (for example - a chapter lunch) the following tax rules apply. If the sponsorship is restricted to identifying the name of the sponsor the revenue received by the chapter is not taxable. If the sponsor advertises/speaks about products or services made or provided by the sponsor the revenue received by the chapter is taxable. 4. Other Expenses Other expenses must NOT exceed 5% of total expenses. If you report other expenses in excess of 5% of total expenses your chapter report will be rejected by the IRS and you will be obligated to file a separate chapter return. 5. Grants/Scholarships If any grant/scholarship recipient received an aggregate payment in excess of $600 the chapter treasurer should contact the finance department at NCMA HQ to determine if an IRS Form 1099 Misc should be issued. The deadline for issuing such forms is January 31st

24 Omissions on the Financial Form Leaving any of the questions blank or unanswered will result in NCMA returning the form to you as incomplete and not submitted. If we return the form to you, you must complete and resubmit or you won’t be in the group return.

25 Remember The questions are generated by the IRS. They are not questions generated by NCMA.

What happens when you get the dreaded IRS form letter? Send an e mail to Include a scan of the IRS form NCMA will confirm whether your chapter was or was not included in the group filing NCMA will send you the appropriate response for you to include on your reply back to the IRS 26

Chapters with Credit Card processing Are your names and contacts current and correct on file with your processor? –Chapters with Worldpay will need to contact Mary Beth to make updates to account Chapters setting up PayPal accounts may need a declaration statement from NCMA –Contact Mike Wright or Angie Kays 27

28 Any questions? Sam Smith NCMA Chief Financial Officer and NCMA Treasurer x1104

Other Contacts Angie Kays, Staff Accountant – x1122 Mary Beth Lech, Chapter Relations Manager – x1119 Mike Wright, Chapter Relations Specialist – x

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