risk management financial sr. director finance & administration jean mervine sr. director...
TRANSCRIPT
RISK MANAGEMENT FINANCIAL
SR. DIRECTOR FINANCE & ADMINISTRATION JEAN MERVINE
SR. DIRECTOR INFORMATION SERVICES LISA MANGIAFICO
Soroptimist International of the Americas
July 16-17, 2012
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
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
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
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
Soroptimist International of the Americas
Financial policiesClear role definitionPhysical controlsHandling cashBank reconciliation
Five essential internal controls
42nd Biennial Convention
Soroptimist International of the Americas
Other best practices
42nd Biennial Convention
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
Soroptimist International of the Americas
Keep receiptsKeep good records Report financial results regularly
Tracking expenses
42nd Biennial Convention
Soroptimist International of the Americas
More than one authorized signerSignatures on checksBank reconciliation
Banking
42nd Biennial Convention
Soroptimist International of the Americas
Protects your financial assetsSIA has a plan available in US & Canada
Bonding
42nd Biennial Convention
Soroptimist International of the Americas
Register as a charitable organizationKnow your local, state and federal regulations
Responsibilities in Fundraising
42nd Biennial Convention
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
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
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
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
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
Soroptimist International of the Americas
Thank You!We will now take a 15 minute
break.
42nd Biennial Convention
WHAT ARE YOUR REGION’S FINANCIAL BEST PRACTICES?
Small Group DiscussionJuly 16-17, 2012
FINANCIAL BEST PRACTICES GROUP REPORT OUT
Small Group DiscussionJuly 16-17, 2012
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
Soroptimist International of the Americas
QUESTIONS?
42nd Biennial Convention
Soroptimist International of the Americas
Thank You!We will now take a 10 minute
break.
42nd Biennial Convention