SPJ Chapter Finances: Best Practices

Best Practices SPJ Chapter Finances photo (cc) Malte Sörensen @ flickr Income and Expenses Require 2 signatures on all checks. Designate another officer/board member or two as online banking administrator(s) to routinely review the account(s). Circumstances may dictate that only one person sign the check, but... Consider having a separate online banking administrator. It's highly recommended. Require officer approval for expenditures over $24 Require board approval for expenditures over $100 Income and expenditures should remain separate in your records. Avoid credit/debit cards - they're easily abused. Check with bank to see if card usage can be restricted to large expenses only For example - more than $100, but not more than $500 If a card is necessary: Transfer chapter funds to a chapter's general checking account after each event that utilizes PayPal. Have someone else monitor the PayPal account. If a board votes on a money matter directly affecting a board member... that board member should recuse themselves, even leaving the room. When depositing funds, write or stamp "For Deposit Only" on the back of checks. Checks made payable to the chapter should be deposited, never cashed. Keep detailed records: Treasurer's Duties Monthly bank statements - electronic and paper copies, if possible Receipts for all expenses Details about expenses, matched to check numbers Chapter's federal tax records, including EIN Documents affirming tax-exempt status with state and federal governments Information needed for chapter's SPJ annual report Prepare and/or file reports: Monthly report to the chapter board, detailing income and expenses Financial section of the annual report to national Annual Form 990, EZ990 or E-card 990 with the IRS Any state or local forms required of non-profits and tax-exempt organizations Budgeting Plan for the worst year. Create a budget using the last 5 years of expenses as a guide. Examine whether you're on budget each quarter. Spending/fundraising over or under? Monthly treasurer's report should discuss the state of the budget. Should you hold an emergency fundraiser or cut back on spending? Scholarships are an ongoing commitment. Do your best to have ten years of funds on hand. The Annual Report Appoint a committee of three to review the financial section of the annual report and have its members sign a statement attesting to its accuracy. Reviewers should include: Chapter president Member of the board who is not an officer Third party with some financial experience The Regional Director will review the annual reports and verify with at least one member of the review panel that the chapter's finances were reviewed Question? Contact Tara Puckey, Chapter Coordinator tpuckey@spj.org 317-927-8000 ext 215