California Water Environment Association Conference

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California Water Environment Association
Conference

• April 23, 2003
• Ontario California

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The Long Distance Guide to Being a Local Section
Treasurer

• Presented by
• Stephen Schultz
• SARBS Treasurer

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Introduction

• SARBS Service Area
• Treasurer Challenges
• Questions

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60-90 Mile Distance
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Treasurer Challenges

• Non-Profit and Tax Exempt
• CWEA Policies, Guidelines, and Forms
• Local Section (SARBS) Responsibilities
• Additional Challenges and their Solutions

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Non-Profit AND Tax-Exempt

• Non-Profit status means that
• CWEA Incorporated under state law as an
  organization prohibited distributing net income
  to individuals controlling the organization.
• Prohibited from allowing private parties to
  obtain equity or financial benefit from the
  association.
• Must provide programs that benefit members and
  public.
• Earnings must be dedicated to furthering the CWEA
  Mission.
• All earnings are reinvested in the program of
  work to fulfil the purpose of CWEA.

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Non-Profit AND Tax-Exempt

• Tax-Exempt status means that
• Members have the assurance that their dollars are
  being utilized for the purpose collected without
  being drained away as taxes.
• CWEA is exempt from paying corporate income tax
  on income derived from programs substantially
  related to the mission.
• Required to pay corporate federal taxes on all
  income unrelated to its tax-exempt purpose.
• Is subject to payroll tax, social security tax,
  franchise tax and tax on lobbing activities.
• Subject to penalties for failure to comply.

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CWEA Policy for Local Sections

• All local sections (LS) shall be self-supporting
  with respect to income and expenses. LS finances
  shall handled at the local level.
• LS can operate financially from the CWEA bank
  account or their own. LS limited to 1 bank
  account, 1 savings account and 1 CD account.
• LS shall meet financial reporting requirements in
  order to retain approval for separate accounts.
• Must obtain approval form CWEA for committee bank
  accounts that are established.

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CWEA Local Section Finances

• CWEA Grants the right to hold bank accounts,
  using CWEAs tax identification number (currently
  39 accounts total).
• CWEA retains the responsibility for LS accounting
  to the IRS, including absorption of liability
  associated with financial accountability.
• IRS requires payroll and income taxes be reported
  for a calendar year.
• CWEAs fiscal year is July 1 - June 30. All
  records must be kept on a fiscal year basis.
• CWEA is required to have an outside auditor
  examine all 39 accounts.
• Audit on accounts is required for the purchase of
  liability insurance protecting Directors,
  Officers, and volunteers from personal liability.

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LS Separate Bank Accounts

• LS are limited to three separate accounts
  checking, savings, and CD. All additional
  accounts must be authorized by CWEA Board.
• All accounts shall have at least two section
  directors or officers authorized to sign checks.
  Two signatures are required for each check.
• CWEA Executive Director included as signatory on
  all LS accounts.
• CD funds shall be limited to no more than
  one-year terms (for liquidity).
• A duplicate bank or fund statement shall be sent
  to the Executive Director from each financial
  institution.

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Annual LS Financial Reporting

• Annual reserve fund reporting is due by April
  30th specifying the purpose(s) for which reserve
  funds are allocated.
• LS Budget is due to the Executive Director by
  April 30th.
• An annual statement, including beginning and
  ending reserves, shall be submitted by August 1
  for the fiscal year ending June 30th.

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LS Situational Reporting

• Oral report of any and all financial problems,
  liabilities, and/or deficits (to be done as soon
  as possible).
• Oral report of issuance of any check in excess of
  5,000, within 24-hours.
• Written report of name(s) of person(s)
  responsible for making deposits writing checks
  receiving bank statements reconciling and
  keeping records, immediately following any
  changes.

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LS Monthly Reporting

• Clear copy of monthly banks statement
• Clear copy of all cancelled checks.
• Clear copy of bank deposit receipt.
• Copy of check register
• Note any voided or cancelled checks with brief
  explanation.
• Copies of all bills, invoices and receipts.
• Cover letter accompanying forwarded items.
• LS Summary Income/Expense if not using CWEA.
• LS Budget Variance Statement if not using CWEA

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Treasurers Duties

• Submit monthly reporting to CWEA
• Bring checkbook to all functions
• Collect and deposit money
• Attend dinner meetings
• Manage cash box
• Manage registration table
• Pay restaurant for dinner meeting
• Manage records for LS
• Manage checking account
• Prepare monthly Treasurers Report
• Follow Required CWEA Reporting procedures
• Operations Committee Member
• Budget preparation

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Treasurers Reports
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Check Request Form
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Function Attendance Form
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Invoice Payment Request Form
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Specific Challenges for the SARBS Treasurer

• Organization
• Carry case for checks, cash box, etc.
• Managing check requests and deposits
• CWEA Reporting
• Use CWEA Staff to compile
• Forward all bank statements directly
• Records Management
• Organized and compact to move with the position
• Communication
• Phone
• e-mail
• courier

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For Future Treasurers

• Minimize Record Keeping
• CWEA can help
• Follow Record Retention Schedule
• Utilize Laptop Computer
• Manage reports and records
• Budget
• Forms
• Develop extensive standard procedures
• Important functions
• Reduce learning curve for new volunteer

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QUESTIONS???