1. Links Finances: It’s All About The Money
Presented By
Link Carolyn E. Lewis, National Treasurer
Link Lonneen M. Brown, SA Treasurer

2. AGENDA Chapter Accounting Procedures Bank Accounts
Restricted vs. Non-Restricted Funds
Bonding Insurance
Member Dues & Fees
Form 990
Budgeting
Chapter Contracts/Agreements
Liability Insurance
Fiscal Officers Roles & Responsibilities
Internal and External Audit Guidelines
Chapter Fundraising Protocol
Chapter Financial Calendar
Review of Fines/Penalties
Update - The Links Foundation
Contact Info
Questions

3. Chapter Accounting Procedures
Establishing Bank Accounts
Accounts must be in the Name of the Chapter
Chapter Federal Employer Identification number is required
Chapter funds must always be deposited in a chapter account
Two authorized signatures are required on checks and withdrawals
Chapter funds are never to be invested in equities or debt instruments
Chapter may have monies in CDs
A chapter must maintain at least two (2) separate accounts; a Restricted and an Operating (Unrestricted Account)

4. Restricted vs Non-Restricted
Funds raised to support the charitable mission of The Links, Incorporated. These funds support programming and may be directed to specific efforts or programs by donor(s).
Funds that are available to the organization for use toward any purpose, at the discretion of the leadership/membership. They generally go toward operating expenses.

5. Bonding Insurance
All Chapter officers/Committee Chairs who handle funds are required to be bonded. Chapter President, Chapter Vice President, Chapter Treasurer, Chapter Financial Secretary, Chapter Fundraising Chair, any Chairs that are responsible for handling chapter funds
A minimum of $5,000 coverage per position must be purchased
Gross income receipts reported on your 990 determines the amount of coverage
Bonding insurance must be paid by September 15th, even if an extension is filed for the chapter 990 form
A $500 deductible will apply for all insurance claims
The penalty for failing to pay by September 15th is $500.

6. Member Dues and Fees Member Dues Building Assessment
The Treasurer submits dues using the IMIS system
The payment of dues by the chapter must be completed by an electronic submission e-check
The President must approve transmittal in IMIS
Alumna fee of $15 (an optional publication fee for the Links publications) is payable by the member either directly to National Headquarters or by the member electronically via the website.
Building Assessment
The deadline for the 2013 inductees and beyond will be:
April 1st of their third year of membership to make the final building assessment payment.

7. IRS Form 990
All chapters must file Form 990 with National Headquarters each year
Form 990, Form 990EZ or 990N must be filed with IRS or postmarked no later than September 15th
A late fee of $100 is assessed if Form 990 is filed late
Federal penalties for failure to file can be up to $20 per day, or 5% of gross receipts for the year
Chapters may file for an extension, but the approved Form 990 extension must be forwarded to National Headquarters by Sept 15th - Visit IRS website for more information.

8. The Chapter Budget The Budget: Is a financial plan
Is approved by the chapter
Estimated revenue over expenses anticipated over a period of time
All chapters must develop a realistic balanced budget
A budget must NOT be adopted if the bottom line is a deficit.

9. Chapter UNRESTRICTED FUNDS Budget
ANY TOWN CHAPTER of The Links, Incorporated
PROPOSED BUDGET – UNRESTRICTED FUNDS
Projected Income May 1, 20__- April 30, 20__ S
AMP L E

10. Chapter RESTRICTED FUNDS Budget
ANY TOWN CHAPTER of The Links, Incorporated
PROPOSED BUDGET – RESTRICTED FUNDS
Projected Income May 1, 20__- April 30, 20__ S
AMP L E
*May include 10% Seed Money from Previous Fundraiser

11. Summary Chapter Budget
ANY TOWN CHAPTER of The Links, Incorporated
PROPOSED BUDGET – Summary FUNDS
Projected Income May 1, 20__- April 30, 20__ S
AMP L E

12. Contracts & Agreements - Chapter
A Chapter President may execute a contract up to $5,000 without approval of the Area Director but in accordance with chapter by-laws.
Send Contracts and Agreements greater than $5,000 to the Area Director via . The Area Treasurer must be copied. The Area Director will forward to General Counsel for review. The document will be in legal review for 7-10 days.
If approved by General Counsel, the document will be forwarded back to the chapter and a copy of the approval to the Area Director and Area Treasurer.
If not approved, the contract will be returned to the chapter for revisions with a copy to the Area Director & Area Treasurer.
If the revised document is approved by the General Counsel, the document will be forwarded back to the chapter & a copy of the approval to the Area Director & Area Treasurer.

13. Umbrella Liability Insurance
Each chapter is covered by liability insurance for all activities & events through The Links, Inc. umbrella insurance policy
Each chapter is assessed $5.00 per member for this coverage
When a chapter sponsors an event that includes the public, which may generate greater exposure, the chapter should contact Professional Insurers ( ) to determine if additional coverage is necessary.

14. Chapter Fiscal Officers
President
Financial Secretary
Treasurer
Vice President of Membership (serves only when she assumes the duties of the President)

15. President’s Checklist
Ensures that the following occurs:
all fiscal officers are bonded
the chapter operates under an approved budget
that a monthly report of the chapter’s finances is presented to the chapter
that the chapter meets all financial reporting deadlines
internal /external audits are completed
the proper segregation of the financial roles is maintained
effective transition of incoming /outgoing officers
all checks have 2 signatures
deposits are made within 5 business days of receipt
Is ACCOUNTABLE to the chapter for the expenditure of funds and approves all expenditure of funds
NEVER
signs a check to herself
signs a blank check

16. Financial Secretary ’s Checklist
Receives all monies (membership dues, chapter assessments, including those for fundraising)
Remits all monies to the Treasurer (within 5 business days of receipt)
Maintains a ledger and provides receipts to members
Reconciles funds received and submits to Treasurer with appropriate receipts
Provides a monthly report of monies received and submitted to the Treasurer
Provides year end report to chapter & turns records over for audit
Reports may be sent electronically, but must be provided via a secure file sharing solution, such as a Drop Box
Sends a dues statement to each member annually, outlining her financial obligations and any unpaid assessments
Provides year end report to chapter and submits records for audit
Serves on the Finance/Budget Committee
Does not sign checks

17. Treasurer’s Checklist
Receives funds from the Financial Secretary
Deposits funds (within 5 business days of receipt)
Pays approved invoices/vouchers
Signs checks with President or other bonded officers on the bank account
Prepares & presents a monthly Treasurer’s report at the Executive Board & Chapter Meetings
Chapter Treasurer reports may be sent electronically, but must be provided via a secure file sharing solution, such as a Drop Box.
Chairs Finance/Budget Committee
Remits dues to National Office & Foundation using IMIS System
Pays bonding insurance
Ensures the chapter 990 is filed
Becomes the leader in the financial life of her chapter

18. Finance/ Budget Committee
Is appointed by Chapter President; chaired by Treasurer
Members include: Financial Secretary, Immediate Past Treasurer, Program Coordinator and others, as needed
Develops a balanced budget based on chapter needs budget is presented by the Treasurer to Executive Board and, subsequently, presented for approval by the chapter no later than the February meeting
Forward approved budget to the Area Treasurer no later than March 15th

19. Chapter Audit Guidelines
Gross Receipts
Requirement
Performed By
$0-$50,000
Internal Audit Certification Form & Annual Treasurer’s Report in Appendix A-13
Chapter Audit Committee
Chapter Treasurer
$50,001-$150,000
Review of Financial Statements
*Internal Audit Certification Form & Annual Treasurer’s Report in Appendix A-13
Licensed CPA
More than $150,000
Audited Financial Statements

20. Chapter Audit Guidelines (Continued)
Shall consists of three to five members, appointed by the President,
Shall review the chapter’s records annually.
Members are not the current financial officers or members of the Finance Committee.
Shall have some knowledge of the chapter’s fiscal operations (i.e. immediate past financial officers can be members as long as they are not auditing financial transactions that occurred during their tenure.

21. Chapter Audit Guidelines (Continued)
The Internal Audit Committee shall:
Recommend an independent auditor for the annual review
Provide at least 2 bids to the Executive Committee of the Chapter
Review the chapter’s records, indicate any material weaknesses and propose internal controls
The Internal Audit Committee review of activities shall include:
Verification of receipts for the period
Verification of expenditures for the period
Verification of balances for all accounts
Ensure presence of expenditure documentation (receipts, invoices, etc.)
Ensure adherence to budget line items
Ensure adherence to separation of fiduciary responsibilities
Shall meet with the fiscal officers to present the findings of audit report, prior to submission to the executive committee.
Present the audit report to the chapter, and if needed
the findings/recommendations.

22. Chapter Audit Guidelines (Continued)
Audit Definitions
Review of Financial Statements- The licensed CPA will apply analytical procedures to your financial records/data and make inquires of company management and merely state whether he or she is aware of any material modifications that should be made to the financial statements for them to be in conformity with generally accepted accounting principles (GAAP). (limited assurance)
Audited Financial Statements- The licensed CPA examines your accounting records and financial statements and conducts and independent investigation to test the accuracy of your accounting records and internal controls. At the conclusion of the audit, the auditor issues a report in the form of a letter stating whether, in the auditor’s professional judgment, your accounting records and year end financial statements fairly represent the nonprofit’s financial position according to generally accepted
accounting principles (GAAP).

23. Chapter Audit Guidelines (Continued)
The Internal Audit Certification Form -
will be prepared by the chapter internal audit committee
signed by the chapter president online.
the form will ask the chapter for certain fiscal/internal control information
the form will verify that the committee conducted an internal audit of the chapter books and records.
Internal Audit Form Due Date: September 15th
Fine for late filing after September 15th - $500

24. Internal Audit Certification Form
When there is a change in chapter Treasurer, an internal audit is required.
An extension will NOT be granted for submission of the Internal Audit Certification Form and Annual Treasurer’s Report.
If not submitted by September 15th, a fine of $ will be assessed.
If not submitted by December 15, the chapter will be subject to disciplinary action including, but not limited to, a fine in the amount of an additional $500.00, as approved by the Executive Council.

25. External Audit Guidelines
If an extension is required for an external audit:
(a Review of Financial Statements or Audited Financial Statements)
A written request must be postmarked to headquarters to the National Treasurer by September 15th.
If the extension request is ed, it must be ed by 11:59 pm EDT on September 15th.
The maximum period of time for an extension is 60 days.
The chapter’s Internal Audit must be completed by June 30th. (to allow at least 60 days for the chapter records to be provided to the external auditor for review)
The Chapter shall not engage an external accountant or licensed CPA who is a Link, Connecting Link, Heir-o-Link or any family member) to audit or review the chapter’s financial statements.

26. Chapter Fundraising Protocol
If an extension is required for an external audit:
(a Review of Financial Statements or Audited Financial Statements)
A written request must be postmarked to headquarters to the National Treasurer by September 15th.
If the extension request is ed, it must be ed by 11:59 pm EDT on September 15th.
The maximum period of time for an extension is 60 days.
The chapter’s Internal Audit must be completed by June 30th. (to allow at least 60 days for the chapter records to be provided to the external auditor for review)
The Chapter shall not engage an external accountant or licensed CPA who is a Link, Connecting Link, Heir-o-Link or any family member) to audit or review the chapter’s financial statements.

27. Chapter Fundraising Protocol (contd.)
A chapter may conduct a fundraiser in two ways:
Conduct a fundraiser for the benefit of the chapter (donations are NOT tax deductible).
Collaborate with The Links Foundation, Incorporated to sponsor fundraisers for charitable and educational purposes (donations are tax deductible).
Note: The fundraising procedures/manual
for The Links Foundation have been revised.
Timeline and training details will be presented later in this presentation.

28. Guidelines for Chapter Fundraisers
Fundraiser for the benefit of the chapter:
Chapters may have chapter sponsored fundraisers which allows them to utilize proceeds for restricted or unrestricted purposes.
Chapter sponsored fundraiser donations are NOT tax deductible.
Any funds received from individuals, corporations and or the public for support or specific programming or a designated purpose are to be deposited in the chapter’s restricted account. (These funds are NOT tax deductible).
Depending on the program/project for which the funds were raised, funds can be held through the completion of the program/project. The chapter must follow though with the commitments made when the money was solicited.

29. Fundraising Decision Process
Operational (Non-restricted)
Charitable/Educational (Restricted)
No Foundation Guidelines Apply
Foundation Guidelines Apply
Follow the Rules
Not Tax Deductible
Tax Deductible
Umbrella Insurance
Contracts Greater than $5,000

30. Guidelines for Chapter Fundraisers
Four core processes have been established or enhanced:
Establishing a Restricted Fund
Approving Fundraisers 
Remitting Funds
Obtaining Restricted Funds

31. Process Changes Details
 Establishing a Restricted Fund
A chapter submits an “Establishing a Restricted Fund form” to The Links Foundation, Incorporated for approval. The form specifies the purpose of the fund (i.e. educational and charitable programs, scholarships, disaster relief, etc.)
Complete Form 100
Approving Fundraisers
At least 120 days prior to the fundraiser, the chapter provides key information regarding the fundraiser (purpose, budget, planned use of net proceeds, etc.,)
Invitations, tickets and promotional literature for the fundraising event/activity must indicate, “Proceeds will Benefit The Links Foundation”
Complete Form 200 and 200-A

32. Process Changes Details (contd.)
 Remitting Funds
All donor, sponsorship and ticket sale checks will be made payable to The Links Foundation, Incorporated and submitted to the Foundation for deposit. The Foundation will deposit the funds in the Chapter’s restricted fund.
Complete Form 300
Obtaining Restricted Funds
Chapters will request grants from The Foundation to pay the expenses for the event and to fund charitable and educational programs.
Complete Form 400-A
Electronic Check, Mail Check, Electronic Transfer

33. Financial Calendar Date Action September 15th November February
Deadline for submission of 990, 990EZ, 990N Tax Form to the IRS, with a copy to The Links, Inc. If an extension is filed, a copy of the extension request is to be forwarded to The Links, Incorporated.
Deadline for submission of Chapter .Bonding Insurance, to be processed online. Bonding insurance is due regardless of chapter filing for an extension of Form 990.
Deadline for submission of Internal Audit Certification Form, with Treasurer Year End Financial Report attached.
Deadline for submission of chapter external audits.
Deadline for Chapter Financial documents transitioned to new chapter treasurer by outgoing treasurer.
November
All Chapter budgets presented to membership for approval.
February
Deadline for all chapter budgets to be approved by membership.
March 15th
Deadline for submission of approved Chapter budgets to Area Treasurer.
April 1st
Deadline for submission of member dues.

34. Financial Calendar (contd.)
Date
Action
May 1st
Deadline for submission of member dues, with late fee.
Fiscal Year begins.
Chapters may begin to submit 990 Tax Form to IRS; pay Chapter bonding Insurance; submit Internal Audit Certification Form and external audits.
June 30th
Deadline for transition of bank accounts to newly elected officers.
Completion of chapter Internal Audit.
August 1st
Completion of Area Audit.
March 15th
Deadline for submission of approved Chapter budgets to Area Treasurer.
April 1st
Deadline for submission of member dues.

35. Review of Fines/Penalties
Fee
Late Filing of Form 990, Form 990EZ & Confirmation of 990-N
$100.00
Late Submission of Bonding Insurance
$500.00
Waiver for less than 35 days filing for induction of new members
$50.00
Returned Check by Bank for Non-Sufficient Funds (NSF)
Late Filing of the Internal Audit Certification Form
Chapter without delegate in attendance at National Assembly
$1,500.00
Chapters sponsoring fundraisers & use The Links Foundation, Incorporated name but do not deposit funds into the Foundation
$1,000.00
Chapters that establish a Foundation using “Links” in its name and/or use of wording similar to The Links Incorporated
Areas not submitting timely Financial Reports
$2,500.00

36. Link Lonneen M. Brown, SA Treasurer
Contact Information
Link Lonneen M. Brown, SA Treasurer
Phone:
Mailing Address
934 Bridgeway Boulevard
Orlando, FL 32828

37. Questions

38. Thank You for Your Participation
Conclusion
Thank You for Your Participation