FINANCIAL RESPONSIBILITY Cathy Karch, MBA SCTE Senior Director, Accounting
SCTE Financials Tax Status – 501(c)6 Each Chapter is under our IRS Tax ID Your Chapter Financials are reported to the IRS Form 990 Legal Your chapter and board members are covered under our liability insurance however board members have a responsibility to the chapter and the entire society (SCTE) as a whole.
YOUR CHAPTER BYLAWS Legal – The chapter shall comply with all federal, state and local laws, rules and regulations governing chapter operations. Also, the chapter shall comply with all applicable policies and reporting requirements to Headquarters in order for SCTE to maintain its tax exempt status. Liabilities – Except in cases of fraud or acts of bad faith, the directors and officers of this organization shall not be held personally responsible for debts, obligations, or liabilities of the organization or for their actions on behalf of the organization.
FIDUCIARY DUTY OF THE BOARD Directors owe duties of “care” and “loyalty” to the organization. These duties required the board of directors to: »act in good faith. »with the care of an ordinarily prudent person in a like position would exercise under similar circumstances, and »in a manner he or she reasonably believes to be in the best interest of the organization and its members.
FIDUCIARY RESPONSIBILITIES Funds used to accomplish SCTE Mission Keep accurate financial records Enforce financial internal controls Follow policies, procedures & bylaws Safeguard funds Keep chapter board informed Whistleblower policy
MANAGING CHAPTER FUNDS Accurate and complete financial records Supporting documentation Reasonable and approved expenditures Transactions that adhere to exempt purpose No personal benefit to anyone
INCOME Cash handling Deposits Credit Card transactions No advertising income Disclosure Statement required Supporting documentation
EXPENSES Pay by check Original invoice or check request No SCTE credit cards $100 petty cash limit Board member expense reimbursements Board approved and reasonable expenses only
RECORD KEEPING Receipts and disbursement journal Chapter program and events Operating expenses Bank reconciliations Quarterly Reports Submit to SCTE Headquarters