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RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International of the Americas July 16-17, 2012

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Page 1: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

RISK MANAGEMENT FINANCIAL

SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE

SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO

Soroptimist International of the Americas

July 16-17, 2012

Page 2: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

Soroptimist International of the Americas

• Systems of checks and balances• Assure integrity of financial assets• Prevent opportunity for fraud,

theft or embezzlement• Best practice

What are internal controls?

42nd Biennial Convention

Page 3: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

Soroptimist International of the Americas

Procedures to keep cash and checks safeRegular financial reportsSegregation of dutiesTwo signers on a bank accountReconciliation of the bank statementLock and key

Some examples...

42nd Biennial Convention

Elizabeth M. Lucas
What about two sigantures on a bank account?
Page 4: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

Soroptimist International of the Americas

Helps to prevent fraud or theftSets an environment for controlHelps identify a loss quickly to minimize damageProvides members with assurance that the organizations money and assets are safe

Why have internal controls?

42nd Biennial Convention

Page 5: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

Soroptimist International of the Americas

Club treasurers who kept no records or receiptsClubs not complying with IRS filings and requestsTreasurers who have comingled club and personal fundsClubs whose only authorized bank signer left and took all of the money

“But this can’t happen to us!”

42nd Biennial Convention

Page 6: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

Soroptimist International of the Americas

Financial policiesClear role definitionPhysical controlsHandling cashBank reconciliation

Five essential internal controls

42nd Biennial Convention

Page 7: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

Soroptimist International of the Americas

Other best practices

42nd Biennial Convention

Page 8: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

Soroptimist International of the Americas

Part of internal controlsSources and uses of incomeApproved expenditures to reflect strategic planCompare budget to actual

Budgeting

42nd Biennial Convention

Page 9: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

Soroptimist International of the Americas

Keep receiptsKeep good records Report financial results regularly

Tracking expenses

42nd Biennial Convention

Page 10: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

Soroptimist International of the Americas

More than one authorized signerSignatures on checksBank reconciliation

Banking

42nd Biennial Convention

Page 11: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

Soroptimist International of the Americas

Protects your financial assetsSIA has a plan available in US & Canada

Bonding

42nd Biennial Convention

Page 12: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

Soroptimist International of the Americas

Register as a charitable organizationKnow your local, state and federal regulations

Responsibilities in Fundraising

42nd Biennial Convention

Page 13: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

Soroptimist International of the Americas

Members section of soroptimist.org•Sample club budget•Club treasurer guidelines•Club audit procedures•501(c)(3) Organizations information (US only)

Resources Available

42nd Biennial Convention

Page 14: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

Soroptimist International of the Americas

Gaining 501(c)(3) Status Requirements•Exempt purpose: charitable•Not organized or operated for the benefit of private interests •Does not attempt to influence legislation as a substantial part of its activities or participate in campaigning for political candidates

U.S. Tax Related Issues

42nd Biennial Convention

Page 15: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

Soroptimist International of the Americas

Keeping 501(c)(3) Status Requirements•All 501(c) organizations MUST file an annual information return:

• 990 ((the most in-depth version) annual gross receipts <$50,000

• 990-EZ (the short form version) annual gross receipts <$50,000

• 990-N (e-Postcard) annual gross receipts of $50,000 or less ; file online at : http://epostcard.form990.org A filing receipt can be printed as soon as the filing is made online.

U.S. Tax Related Issues

42nd Biennial Convention

Page 16: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

Soroptimist International of the Americas

Losing 501(c)(3) Status•Clubs or regions that fail to file for three consecutive years will have their status automatically revoked by the IRS•13 clubs and 1region have been revoked•Treasurer should provide proof of filing, and President should request proof of filing

U.S. Tax Related Issues

42nd Biennial Convention

Page 17: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

Soroptimist International of the Americas

When SIA headquarters has word a club is chartering:•Contact the club president with the paperwork to be part of SIA’s group exemption; copy the governor•SIA requires: a letter requesting inclusion, an agreement to abide by exempt requirements, copy of club bylaws, and if incorporated, copies of the articles of incorporation

New Clubs and Tax Status

42nd Biennial Convention

Page 18: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

Soroptimist International of the Americas

Thank You!We will now take a 15 minute

break.

42nd Biennial Convention

Page 19: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

WHAT ARE YOUR REGION’S FINANCIAL BEST PRACTICES?

Small Group DiscussionJuly 16-17, 2012

Page 20: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

FINANCIAL BEST PRACTICES GROUP REPORT OUT

Small Group DiscussionJuly 16-17, 2012

Page 21: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

Soroptimist International of the Americas

Insurance packages through SIA’s insurance broker available in US and Canada:• Club Liability Insurance• Management Liability Insurance• BondingContact Kaelin Hill, AH&T [email protected] or 703-554-6269

Support Services for your Region and Clubs

42nd Biennial Convention

Page 22: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

Soroptimist International of the Americas

QUESTIONS?

42nd Biennial Convention

Page 23: RISK MANAGEMENT FINANCIAL SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO Soroptimist International

Soroptimist International of the Americas

Thank You!We will now take a 10 minute

break.

42nd Biennial Convention