the construction specifications institute csi chapter financial education webinar series #4:...

The Construction Specifications Institute

CSI Chapter Financial Education Webinar Series

#4: “Changing of the Guard – Treasurer’s

Orientation”

July 15, 2010

Your Hosts Today ~

Robert Simmons, FCSI, CCPR

CSI’s Treasurer

Immediate-past Director of CSI’s Northwest Region

Member, CSI Board Operations Committee

Michelle Brown

The Novick Group

Shannon MacGregor, MBA, CAE

CSI’s Director of Finance & Operations

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Welcome!

Introduction, Webinar Schedule

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Financial Webinar Schedule

1. Oct 21, 2009 – Financial Overview

2. Dec 9, 2009 – Form 990

3. Mar 24, 2010 – Budgeting

4. Jul 15, 2010 – Treasurer’s Orientation

5. FY2011 – To be determined

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www.csinet.org/cfwebinar

Webinar materials are posted at this online location, and are available for your download and use

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Today’s Course Objectives

• Congratulations – You’re the Chapter Treasurer!

• Understand your fiduciary responsibilities

• Ensure a smooth transition into the new fiscal year

• Start your year off with confidence

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“…As Chapter Treasurer, you’re the financial focal point for your chapter, your president, and your board…. You’re the key contact for your chapter’s dues disbursement and recordkeeping…”

Leader Guides at www.csinet.org

Getting to be a Chapter Treasurer

• No formal financial background required – mostly “on the job” training at the chapter level

• Experience gained through participating as budget chair or finance committee chair

• Treasurer’s term is usually more than 1 year for continuity

Treasurer’s Duties

• Prepare and maintain the chapter budget

• Manage chapter cash and investments• Provide financial reports to chapter

board for monthly meetings• Prepare region reports on the health of

your chapter (membership trends, program updates, financials)

• Coordinate chapter audit by outside firm

Orientation: First things first

DocumentationPoliciesReporting

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Review Chapter Legal Documents: CharterArticles of IncorporationBylawsIRS Letter of Determination of Tax-

Exempt StatusForm 990 Tax ReturnAudit ReportInsurance PoliciesBusiness Contracts

Documentation

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Paperwork Basics….

By Feb 1st, Dues Updates to Institute

By Apr 30th, Officer and Chair Forms to Institute

Policy Basics….

Financial PolicyInvestment PolicyDocument Retention PolicyInternal Controls PolicyChapter Handbook

Reporting Basics…

Tax exempt 501(c)(6)Fiscal year beginning July 1Accrual basis of accountingAnnual budget, and accountabilityAccurate and timely financial reports

Orientation: First things first

BankingBudgetingManaging

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Update all signature cards and documents at the bank with newly authorized officers’ names

Meet with outgoing Treasurer and reconcile all account balances and transfers

Enroll your chapter in the direct deposit program through Institute for electronic receipt of monthly dues

Banking

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Budget / Financial Leadership

Serve as Chairman of the Chapter’s Finance Committee

Review financial history and past budgetsUnderstand monthly cash flows and cash

reservesDevelop a sound 12-month budget by

committee; present to Chapter Board for approval

Regularly review budget with the Board and make quarterly adjustments if needed

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Financial Management

Review chapter financial statements Prepare timely reports to the Board:

– Balance Sheet– Income Statement– Cash Flow Statement– Other analysis (member stats, ratios, variances,

etc.) Submit financial report at annual business

meeting Assist in annual audit review

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Treasurer’s Role

Mentoring

Revenue oversight

Setting dues rates

Treasurer mentoring

Chapter Finance Committee, working with the Budget Chair and Treasurer

Identify your Committee replacement, Mentor a member

Budget Chair, 1 to 2 years

Treasurer, at this point you have worked with the chapter board

Success is in continuity of the team

Chapter Revenue Sources

• Chapter dues• Product fairs• Charitable fundraisers• Interest income from investments• Look for other financial

opportunities (Take them to the Board)

Setting Chapter Dues Rates

• Perform dues analysis and present findings to chapter board

• Dues increases may be needed to accommodate special programs in the chapter budget

• Chairs have input to Program meetings, where this information comes to light

• Rate changes due to Institute Feb 1, (This is mailed to your Chapter Secretary)

Internal Controls and Risk Management

Directors and Officers Insurance

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Internal Controls

Minimize temptation for fraudInstill checks and balances;

separation of dutiesSafeguard assets from physical lossEnsure accuracy and reliability of

accounting recordsDocument all policies and procedures

for financial transactions and persons responsible

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D&O Insurance

Who is insured?• Directors• Officers• Committee members• Employees• Volunteers…acting within the general scope of their authority on

behalf of the organization….

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D&O Insurance

What are the Most Common Claims?

• Employment practices liability• Libel, slander, defamation• Copyright infringement and

plagiarism

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D&O Insurance

Significant Exclusions:

• Bodily injury• Property damage• Fraud• ERISA

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D&O Insurance - Myths

Myth: My homeowners policy covers me.

Truth: In rare cases it might, but for the most part, Board members cannot rely on their homeowners insurance to cover their association Board service (regardless of whether they are compensated for that service)

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Summary, Review, and Other Resources

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As a financial leader you have options for success

As a leader you have resources from within your chapter and region

Other leaders, past leaders, leaders outside your chapter or region. You also have Institute leaders and staff to assist.

What is your vision as a financial leader?What is your goal?What does your financial plan look like?

Financial Leadership in Review

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Treasurer Resources CSI Leader Guide for Treasurers at

www.csinet.org Chapter Leader Toolbox also at

www.csinet.org CSI Chapter Relations:

chapterrelations@csinet.org, or 1-800-689-2900, ext. 4771

State C.P.A. Societies Chamber of Commerce Local accounting service providers

Summary

In this presentation, we examined: – Chapter documents– Banking responsibilities– Budgeting and financial oversight– Internal controls and risk management– Insurance decisions

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Any questions?

Thank you for your time and participation today!

Robert Simmons, FCSI, CCPR

arobertwsimmons@cs.com

Michelle Brown, The Novick Group

mbrown@novickgroup.com

Shannon MacGregor, MBA, CAE

smacgregor@csinet.org

800-689-2900, ext. 4730

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