1. Managing Chapter Funds
Brent Woods, Esq., CAE, SPHR
NIGP Executive Director for
Business Operations & Finance

2. Board Responsibilities
You are a fiduciary!
This means that you are
LEGALLY responsible for the organizations finances.

3. Chapter Fiscal Responsibility
Keeping financial records
Preparing accurate and meaningful financial statements
Budgeting and anticipating financial challenges
Safeguarding and managing the chapter’s financial assets
Complying with federal, state and local tax and reporting requirements

4. Chapter Fiduciary Responsibility
Conflict of Interest Policy
Identify and protect chapter from ethical dilemmas
Protect chapter from perception that individuals are benefiting from chapter assets

5. (Describe exceptions, if any)
Example of a conflict-of-interest statement to be signed by board members:
Members of the board of directors must conduct their personal affairs in such manner as to avoid any possible conflict of interest with their duties and responsibilities as members of the chapter’s board.
Board members are required at attest annually to their familiarity with chapter policies in this regard and to provide information concerning any possible conflict of interest so that disclosure may, if necessary, be made.
I herby affirm that I have not, the best of my knowledge and belief, been in a position of possible conflict of interest, except as indicated below:
Financial Interests.
(Describe exceptions, if any)
Use of Chapter Services, Property, Facilities
(Describe, exceptions, if any)
Signature/Date

6. Internal Control Chapter Board of Director’s is expected to exercise
reasonable diligence, case and good judgment in
safeguarding the chapter’s assets.
Must establish sound internal controls manual - system of policies and procedures that minimizes the likelihood of misappropriation of chapter assets or misstatement of chapter accounts.

7. Internal Control: Policies
Banking
Bank account not belonging to an individual but in Chapter’s name
One person write and sign checks, another to authorize/approve invoices – one person should not do both
Under no circumstances should the treasurer “pre-sign” blank checks for future use by others
Monthly reconciliation on chapter bank accounts (the person who records cash receipts and disbursements should not perform the bank reconciliations

8. Internal Controls: The Hand-Off
Change signature cards at financial institutions by removing former officers and adding new ones
If required by state law, update corporate resolution papers to reflect the names of the new officers
Ensure the outgoing chapter treasurer reconciles the chapter’s checkbook balance to the most current banks statements.

9. Internal Audit Committee
Purpose: Conduct random audits of chapter
books and records during the year
(those not involved with the Treasurer’s function should perform it)
Perform the following procedures:
Review financial records or receipts and disbursements at least every 6 months
Review internal control procedures to ensure compliance
Report findings and any recommendations for improvement to the chapter president

10. Handling Chapter Funds Coming to ‘terms’
Journals – similar transactions are recorded and summarized (each transaction is recorded twice - once in a “total” column and once again in a specific “category” column
Cash Receipts Journals – records all income, such as dues, meeting registration, sponsors. Added to total income and also listed in the appropriate income category
Cash Disbursements Journals – records all expenses such as office supplies, meeting room rental, postage, or printing. Categories should correspond to budget categories and should be totaled and reviewed monthly
General Journal – record transactions that don’t correspond to any other journal. Such as interest income, non-monetary contributions and in-kind support
General Ledger – summarizes and continually updates all financial information. Each journal is totaled monthly; these totals are then transferred, or posted, to the general ledger.
Balance Sheet – a listing of each account and its balance in the general ledger. The total debts should equal the total credits, thus verify the books are balanced.

11. Handling Chapter Funds Record Retention
Financial Records Should Be Kept for 7 Years
Original Contracts Should Be Kept for at least 4 Years (find your state’s Statute of Limitations on contract claims)
Your record retention policy should be in writing
Policy should apply to both printed and electronic records
Abide by the policy! Destroy all records post-retention deadline
(Sample policies available – Jennifer)

12. Financial Statements and Reporting
A key responsibility of a chapter is preparing
complete and comprehensive financial statements
for chapter leaders to review
regularly and on a timely basis.
The organized, consistent and timely distribution of these statements also indicates the orderliness of the accounting system. As a result, financial statements should be prepared monthly and carefully reviewed by board members.

13. Financial Statements and Reporting
Statement of Financial Position (Balance Sheet) – chapter assets and liabilities as of a certain date (end of month). Assets as well as liabilities and total net assets are each listed and totaled. Total net assets must equal total assets minus total liabilities, the balance represents the amount of revenues remaining after subtracting expenses
Statement of Activities (Profit and Loss) – chapter financial activity and the results of operations during a certain time period (previous month or year). Indicates major sources and amounts of revenue and expenses.