A Quick-Start Checklist of Financial and Membership Processing Issues JUNE, 2014

CONGRATULATIONS! NO MATTER WHETHER THIS IS YOUR LIFELONG DREAM OR WHETHER YOU WERE APPOINTED WHILE YOU WERE OUT OF THE ROOM… IT’S YOUR JOB NOW! HIGH IMPORTANCE= HIGH REWARD

OVERVIEW THIS IS A “101 LEVEL” SUMMARY DETAIL ON ALL TOPICS IS IN THE “FPLR” BOOK YOU MAY HAVE CIRCUMSTANCES THAT ARE NOT COVERED HERE- ASK QUESTIONS!

GETTING STARTED FPLR MANUAL MEMBERSHIP PROCESSING GUIDE INFO ON IEA WEBSITE FINANCIAL PROCEDURES IPACE (IF APPLICABLE) GO TO THE ANNUAL TRAINING AT YOUR OFFICE (OR ONE NEARBY)

TRANSITION YOUR PREDECESSOR OWES IT TO YOU AND YOUR LOCAL TO HAVE EVERYTHING UP TO DATE AND IN ORDER FOR YOU REVIEW THE “TRANSITIONING THE TREASURER” MATERIAL IN THE FPLR MANUAL AND ON THE WEBSITE FOR SUGGESTIONS AND CHECKLISTS REMEMBER YOUR “TRANSITION EXPERIENCE” AT THE END OF YOUR TERM!

IMPORTANT POINTS TO PONDER DON’T STAY IN A SILO- THE OTHER OFFICERS ARE EXPECTED TO SUPPORT YOU AND PROVIDE OVERSIGHT OVER YOUR ACTIVITIES MAJOR PROBLEMS OCCUR WHEN THE TREASURER HAS NO ACCOUNTABILITY OR OVERSIGHT- DON’T GET OFFENDED ABOUT CHECKS AND BALANCES DON’T BE SHY ABOUT ASKING FOR HELP OR SUPPORT IN ENFORCING POLICIES, ETC.

MEMBERSHIP PROCESSING? IF YOU ARE ALSO THE MEMBERSHIP CONTACT FOR YOUR LOCAL, DIRECT TRAINING SHOULD COME FROM THE IEA MEMBERSHIP DEPARTMENT IF NOT, YOU STILL NEED TO KNOW THE BASICS AND ALSO WORK CLOSELY WITH YOUR MEMBERSHIP CONTACT

TOP 5 PRIORITIES 1. DUES COLLECTION & PAYMENT 2. CONTROLS 3. IRS REQUIREMENTS 4. BOOKKEEPING ISSUES 5. BUDGET

1. DUES COLLECTION IEA COMPUTES A “DUES OBLIGATION” FOR YOUR LOCAL BASED ON YOUR MEMBERSHIP LISTING YOUR LOCAL IS REQUIRED TO REMIT THIS AMOUNT TO IEA ACCORDING TO A PREDETERMINED SCHEDULE….

DUES COLLECTION ….REGARDLESS OF WHETHER YOU COLLECT ALL OF THE DUES FROM YOUR EMPLOYER SO IT IS VERY IMPORTANT THAT BETWEEN YOU AND THE MEMBERSHIP CONTACT, SOMEONE VERIFIES THAT YOUR EMPLOYER IS PAYING YOU ALL THE DUES THAT THEY SHOULD BE! THIS IS AN ONGOING PROCESS ALL YEAR LONG

DUES COLLECTION DEPOSIT CHECKS AS SOON AS THEY ARE RECEIVED OR BETTER YET- HAVE THEM DIRECT DEPOSITED SOME LOCALS HAVE IEA-NEA DUES SENT DIRECTLY TO SPRINGFIELD TALK TO MEMBERSHIP DEPT. FIRST YOU ARE STILL RESPONSIBLE FOR VERIFYING ACCURACY

DUES PAYMENT GET A COPY OF THE PAYMENT SCHEDULE AND MAKE SURE THAT ALL PAYMENTS ARE MADE ON TIME PAY THE AMOUNT ON THE STATEMENT! WATCH FOR FCPE IF APPLICABLE MAKE SURE THERE IS A ZERO BALANCE AT THE END OF THE YEAR WATCH FOR “LATE STATEMENTS”

2. CONTROLS YOUR LOCAL IS A BUSINESS RUNNING ON OTHER PEOPLES’ MONEY (YOUR MEMBERS) CHECKS AND BALANCES HELP PREVENT FRAUD AND SERIOUS ERRORS CONTROLS ARE GOOD! FORGET ABOUT “TRUST” YOUR OFFICERS NEED TO HELP YOU ENFORCE THEM

CONTROLS: CHECKS DON’T SIGN CHECKS PAYABLE TO YOURSELF REQUIRE ORIGINAL INVOICES FROM VENDORS- NO COPIES OR HANDWRITTEN NOTES TWO SIGNATURES BLANK CHECKS (SIGNING/SAFEGUARDING) MAKE SURE YOUR BANK SENDS COPIES OF YOUR CLEARED CHECKS!!

CONTROLS: OTHER SEE FPLR MANUAL HAVE BANK MAIL STATEMENTS TO SOMEONE BESIDES YOU! DON’T DEAL IN CASH! NO CHECKS PAID TO CASH NO $$ WITHHELD FROM DEPOSITS DON’T GIVE CASH TO MEMBERS ANNUAL AUDIT!

AUDIT OPTIONS CPA AUDIT COMMITTEE ANYTHING IS BETTER THAN NOTHING! DON’T DEVELOP A FALSE SENSE OF SECURITY

3. IRS DOCUMENTATION ANNUAL RETURNS

CHECKS- GENERAL IRS REQUIREMENT: SUPPORTING DOCUMENTATION FOR ALL PAYMENTS PAYEE AMOUNT DESCRIPTION BUSINESS PURPOSE KEEP IT WHERE YOU CAN FIND IT!! (STAPLE TO BANK STATEMENT, ETC.) DON’T ACCEPT HANDWRITTEN NOTES AS DOCUMENTATION

CHECKS WRITTEN TO MEMBERS BE ESPECIALLY CAREFUL WITH DOCUMENTATION WRITTEN GUIDELINES ON WHAT WILL BE REIMBURSED WRITTEN GUIDELINES FOR TRAVEL ADVANCES IRS 1099 RULES FOR STIPENDS, ETC. (INCLUDING DUES PAID ON BEHALF OF OFFICERS) GIFT CARDS ARE TAXABLE COMPENSATION!!

MONEY RECEIVED IRS REQUIREMENT: SUPPORTING DOCUMENTATION FOR ALL MONEY RECEIVED PAYOR AMOUNT DESCRIPTION BUSINESS PURPOSE KEEP IT WHERE YOU CAN FIND IT!! (STAPLE TO BANK STATEMENT, ETC.) DEPOSIT CHECKS WHEN RECEIVED

IRS RETURN ~920 LOCALS- “E-POSTCARD” IEA PROBABLY FILES FOR YOU- CHECK WITH BUSINESS SERVICES TO BE SURE ~30 LOCALS- FORM 990 OR 990-EZ MOSTLY FILED BY LARGE MEGA-LOCALS IF YOU ARE ONE OF THE 30: KNOW THE FILING REQUIREMENTS HAVE A CPA DO IT!

4. BOOKKEEPING ISSUES

BOOKKEEPING CHECKBOOK/EXCEL SUMMARY/QUICKEN KEEP TRACK OF CASH BALANCE PREPARE FINANCIAL REPORT MONTHLY BANK RECONCILIATION FILING SYSTEM BANK STATEMENTS/CHECKS DOCUMENTATION OTHER?

BANKING OPENING A NEW ACCOUNT: CALL FIRST! GET COPIES OF YOUR CHECKS!! SHOP AROUND FOR LOW FEES, ETC. HAVE THE MONTHLY STATEMENT (AND CHECK COPIES) SENT TO SOMEONE BESIDES YOU KEEP THE SIGNATURE CARD UP TO DATE KEEP YOUR BOARD APPRISED ABOUT BANKING ARRANGEMENTS

IPACE MEMBER CONTRIBUTIONS LOCAL REBATES*- YOUR OBLIGATIONS: KNOW WHAT IT CAN BE USED FOR KNOW STATE REPORTING REQUIREMENTS SEPARATE BANK ACCOUNT/NO INTEREST * YOU NEED TO KNOW IF YOUR LOCAL HAS AN IPACE ACCOUNT, AND YOU NEED A GENERAL IDEA OF HOW THE PROCESS WORKS WHEN YOU ASK FOR MONEY FOR THE FIRST TIME

TREASURER’S REPORT MONTHLY! KEEP YOUR BOARD INFORMED MAKE AVAILABLE TO MEMBERS?

CALENDAR OF EVENTS DON’T INCUR FINES/PENALTIES, OR LET IMPORTANT THINGS SLIP THROUGH THE CRACKS! OUTSIDE REPORTING DEADLINES INTERNAL REPORTING DEADLINES IEA DUES PAYMENT DEADLINES ANNUAL TASKS SUCH AS BOARD REVIEW OF BANKING ARRANGEMENTS MILESTONES IN THE BUDGET PROCESS ETC.

5. BUDGET PLANNING MANAGE YOUR CASH BALANCE MAKE SURE YOU DON’T RUN OUT OF MONEY SPEND ON APPROPRIATE/USEFUL THINGS QUALIFY FOR IEA FINANCIAL ASSISTANCE PLENTY OF RESOURCES AVAILABLE FPLR MANUAL WEBSITE

RESOURCES IEA BUSINESS SERVICES IEA MEMBERSHIP PROCESSING IEA SECRETARY-TREASURER IEA WEBSITE TRAINING SESSIONS OTHER LOCAL TREASURERS FPLR MANUAL IF IN DOUBT, ASK YOUR U.D.

CONCLUSION KNOW YOUR RESOURCES! IF YOU’RE NOT COMFORTABLE WITH SOMETHING, SAY SO LEAVE THE JOB IN BETTER SHAPE THAN YOU FOUND IT