august 2015 · financial manual page 1 august 2015 introduction each chapter and colony of theta...

Financial Manual

August 2015

Financial Manual August 2015

TABLE OF CONTENTS

INTRODUCTION .................................................................................................................. 1 SECTION I – FINANCIAL RESPONSIBILITY AND OBLIGATIONS ...................................... 2

CHAPTER FINANCIAL RESPONSIBILITY ..................................................................... 2

National Fees - (Totals Are Subject To Change) .................................................. 2 Explanation Of Fees Paid To National Theta Phi Alpha ....................................... 3

MEMBER FINANCIAL OBLIGATIONS ............................................................................ 5

Financial Responsibility Agreement ..................................................................... 6 Motivating Chapter Members ............................................................................... 6 Collections ........................................................................................................... 7 Promissory Notes ................................................................................................ 7

SECTION II – CHAPTER OPERATIONS .............................................................................. 9

TREASURER OFFICER FILES ....................................................................................... 9 RECORD KEEPING ........................................................................................................ 9

What Is Billhighway? .......................................................................................... 10 Setting Up Billhighway ....................................................................................... 11

CHANGE OF OFFICERS .............................................................................................. 12 CLOSING THE ACCOUNT ........................................................................................... 12 CASH RECEIPTS ......................................................................................................... 12 AGENCY OR UNIVERSITY ACCOUNTS ...................................................................... 12

Bank Reconciliation ........................................................................................... 13 SECTION III – NATIONAL REPORTS ................................................................................ 14

MONTHLY FINANCIAL REPORTS THROUGH BILLHIGHWAY ................................... 14

Chapter/Colony Budget ..................................................................................... 15 How To Calculate Budget .................................................................................. 16 Budget Variance Report..................................................................................... 20 Annual Audit ...................................................................................................... 20 Remittance Form For Chapters/Colonies ........................................................... 21

INFORMATION FROM NATIONAL TREASURER ........................................................ 21

Invoices for National Fees ................................................................................. 21 Monthly Statements ........................................................................................... 22

SECTION IV – TAX REPORTING ....................................................................................... 23 SECTION V – RESOURCES .............................................................................................. 25

INTRODUCTION

Financial Manual Page 1 August 2015

INTRODUCTION

Each chapter and colony of Theta Phi Alpha has certain responsibilities relating to management of its finances. The Traditions of Theta Phi Alpha state, “A Theta Phi Alpha understands that financial obligations are met promptly.” These financial obligations take several forms. The chapter is obliged to collect fees and to remit payments to National Theta Phi Alpha and others for services purchased. Collegians and new members have an obligation to pay dues, fees, and housing bills, when applicable. Collegians also have an obligation to participate in fundraisers and to act fiscally responsible when organizing an event that is funded by the chapter. A fraternity should function as economically as possible, but also must have adequate financial means for successful operation. A financially successful chapter should operate on a cash basis (record income when received and disbursement when payment is made). For a chapter to pay its bills promptly, each collegian and new member must meet her financial obligations. This manual will address many aspects of chapter financial management. In attempting to cover the variety of financial situations, chapter needs, and school regulations; treasurers may need to adapt this manual to her specific financial situation. Updates and suggestions are welcome and should be submitted to National Office for inclusion in a future revision of this manual.

SECTION I, FINANCIAL RESPONSIBILITY AND OBLIGATIONS


SECTION I – FINANCIAL RESPONSIBILITY AND OBLIGATIONS

CHAPTER FINANCIAL RESPONSIBILITY

National Fees Individual National fees for Collegian Members:

Description Amount Invoice Date Due Date

Insurance Fee $40 Per Collegian September 1st September 30

th

Per Capita Fee $50 Per Collegian Per Semester

October 1st and

February 1st

October 31st and February 28

th

Growth and Development Fee

$5 Per Collegian February 1st February 28

th

Billhighway System Fee

$13.50 Per Active BillHighway Member Per Semester

September 1st

and February 1st

Last Business Day of September and February (Please note BillHighway will automatically deduct these amount from the Chapter’s account.)

Individual National fees for New Members:

Description Amount Due Date

New Member Fee $30 Per New Member 30 days after receipt of Invoice from National Office

My Sister, My Friend Materials Assessment

$30 Per New Member 30 days after receipt of Invoice from National Office

Member Service Fee $100 Per New Member 30 days after receipt of Invoice from National Office

Colony New Member Fee $40 Per Colony New Member 30 days after receipt of Invoice from National Office

Colony New Member Insurance Fee

$40 Per Colony New Member 30 days after receipt of Invoice from National Office

Badge Cost $102 (Gold Clad) or $199.50 (10k Gold) (Prices are subject to change)

30 days after receipt of Invoice from National Office

Fees paid to National Office by the chapters/colonies:

Description Amount Invoice Date Due Date Convention/Leadership Conference Fee

$475 Each Year Per Chapter

March 1st

March 31

st

Charter Fee $250 One Time Fee Per Colony

30 days after receipt of Invoice from National Office

Please note: All fees are invoiced by National Office and are emailed to the chapter’s email address, Chapter Advisor, and Conference Director.



Explanation of Fees Paid To National Theta Phi Alpha NEW MEMBER FEES: Funds help to continue expansion of the My Sister, My Friend program for new member education to our collegiate chapters. The My Sister, My Friend program for education of new members has proven invaluable to chapters and colonies. The time spent learning about the program has been far less than the time previously spent by chapters developing their own programs. This time saving increases as chapters repeat the program, since the sisters have an improved understanding of what is required. The comprehensive nature of the program leads to an improved understanding of the Fraternity and, as a result, a marked improvement in retention is realized. Over time, we expect that this program will increase our retention of both collegians and alumnae. In addition, the fees are used to help cover the production costs and postage of the following materials sent to the chapters for their New Member Education period: new member pin, yellow emergency card, emergency trifold, and National Office staff (including time spent on grading the new member exam). Expenses related to supporting collegiate chapters are subsidized not only by new member fees, but also by per capita fees and initiation fees. MY SISTER, MY FRIEND MATERIALS ASSESSMENT: Assessment is used to help cover the postage and the production cost of the My Sister, My Friend handbook. INSURANCE FEE: Covers general liability for all chapter members as part of the National Fraternity’s insurance policy. Invoices are generated on September 1st and are based on the chapter’s roster as of August 1st. Once the chapter has been billed for insurance the amount cannot be changed. PER CAPITA FEE: Helps continue expansion of the services provided to our collegiate chapters, such as the Leadership Consultant program and development of guides and resources. 1. Annual visits by a Leadership Consultant (“LC”). Among the benefits that LCs

provide are: A. Better support to collegiate chapters, by spending time with chapters and

colonies (i.e., anywhere from five or seven days annually). This includes weekday visits by the LCs, which have proved more beneficial for chapters whose activities are held on school days. Weekday availability has also increased Theta Phi Alpha’s visibility and impact with campus administrators and faculty advisors.



B. Ability to provide support in emergency or urgent situations, which is especially critical for chapters without functioning Advisory Boards.

C. Better use of our training dollars and a more consistent response to our collegiate chapters.

D. Improved understanding of the benefits and expectations of being part of a national organization.

2. Development of Guides; including,

A. Ritual B. Officer Transition C. Fund Raising D. Standards

3. Operating expenses; including,

A. postage to mail materials to chapters, B. copies of materials sent to the chapters, C. wages of the office staff, D. supplies such as envelopes, stationary, E. rent for the National Office F. wages of the LCs and, G. databased management & website support

MEMBER SERVICE FEE: Funds cover a quality color membership certificate suitable for framing. In addition, they help support the rising costs of postage to mail the certificate and National Constitution & Bylaws, printing costs for the certificate and National Constitution & Bylaws, and salaries of the office staff who grade the exams before initiation and mail the materials. Funds also help cover operating expenses as listed previously under Per Capita. RECRUITMENT FINE: The Recruitment Fine was instituted as a way to raise standards in Recruitment. We are trying to grow as a Fraternity and increase our organization’s size. This is calculated by taking the Campus Total number minus the number of sisters paid for per capita minus the number of new members multiplied by the current per capita fee. JEWELRY: Funds are used to cover the badge that each member is required to purchase within six (6) months of initiation. GROWTH & DEVELOPMENT FEE: Funds are used to invest in a fund for chapters that need to borrow money for housing needs. Certain requirements must be met before money can be loaned.



LEADERSHIP CONFERENCE/CONVENTION FEE: Funds cover the costs used to partially cover the chapter delegate’s lodging and meals while attending Convention in even years. Between conventions, each Chapter shall contribute annually to a convention/leadership fund, the total amount of which shall be distributed among the Chapter delegates and the Grand Council toward authorized expenses of room, board, and travel.

Note: Insurance, Per Capita, and Growth & Development fees are billed to the chapter based on the chapter’s current roster numbers obtained from the National Office. It is each chapter’s responsibility to ensure that their chapter roster is accurate and up-to-date. Each summer, the Fraternity must supply our insurance carrier with current roster numbers for each chapter. The Fraternity’s liability insurance premium is based on these membership numbers. Therefore, each chapter will be billed for insurance based on the membership numbers given to our insurance carrier. THIS INVOICE CANNOT BE CHANGED. Each chapter is provided a copy of their roster each summer at Convention/Leadership Conference and is given the opportunity to update (usually by August 1), if necessary, before membership numbers are provided to the insurance carrier. The amount invoiced for Per Capita or Growth & Development can only be changed if the payment is submitted along with the proper paperwork to update membership numbers (i.e., Term Report or Graduation Report) by the invoice due date.

MEMBER FINANCIAL OBLIGATIONS There are three stages when it comes to financial obligations - New Members, Collegian, and Alumna. The first year of sorority membership can be the most expensive due to one-time new member fees, My Sister, My Friend materials, member service fees, initiation, and badge fees. This is also true for colonies. Collegian dues can be broken up into two types - National payments and chapter/colony assessments. Sometimes chapters/colonies find it necessary to add assessments to the membership dues to pay for extra benefits or unexpected needs. This is usually done by a vote of membership. These assessments will vary from time to time and from chapter/colony to chapter/colony with some having few or no assessments. Optional items such as T-shirts and pictures are individual expenses that are usually not included in the dues but are added to individual Billhighway accounts as miscellaneous expenses Membership dues most likely will cover expenses such as supplies, copies, postage, and recruitment materials. They may also cover expenses such as invitations or decorations for social events, philanthropic events, or other functions. Your local Panhellenic Council may have dues or your chapter/colony might send a sister to a workshop or conference. The treasurer will need to think about all of the expenses your chapter/colony may be faced with and where the chapter will get the income to cover it – dues, fundraisers, or donations.



Each sister should be aware of the chapter/colony’s budget, including from what sources the income is derived and where the expenses are spent. It is suggested that each sister receive a breakdown of dues so that they know how their monies will be spent.

Financial Responsibility Agreement The Financial Responsibility Agreement (Resource 1) was designed by a chapter and updated by an attorney to remind collegians and new members of their obligation. This agreement documents the member’s understanding of her financial responsibility and is legally binding if ever necessary. This agreement should be signed by each member at the beginning of each semester, or billing period. New Members should sign this agreement prior to the New Member Ceremony. The Treasurer and New Member Educator meet with the new members before the ceremony and request that they complete the New Member Information Forms and the Financial Responsibility Agreements. The Treasurer explains the purpose of the Financial Responsibility Agreement and answers any questions that may arise. The Treasurer and New Member Educator sign the forms as witnesses. If a New Member is under the age of eighteen, the Treasurer is to request a new form from the New Member after she turns eighteen. Most states allow persons who were under the age of eighteen to use their “underage” status as a defense in any legal actions. The chapter will benefit if problems arise and the Treasurer had obtained an updated copy of the Financial Responsibility Agreement. The Treasurer should keep the signed Financial Responsibility Agreements for each member for each billing period until that sister has graduated and their balance is paid in full. These forms may be needed in the event a chapter decided to send a member’s outstanding balance to a Collection Agency. Please keep in a binder in a secure location.

Motivating Chapter Members Positive incentives can be used in managing a chapter/colony’s finances. Providing a discount if a member pays her dues for the entire year in advance is one such method. To take advantage of this discount, the chapter requires the member to have a zero balance when taking advantage of the discount. Another incentive for prompt dues payment would be to provide a special treat for the chapter if all members paid their balance by a specified date. The chapter can also hold a raffle for women who pay in full by a certain date - the name drawn wins free formal meal, event t-shirt, etc.

Collections

It is important that the Treasurer be aware of women who are struggling financially. One of the best ways to do this is by working with your Standards Board and Advisory



Board to regularly review the chapter’s financial situation. Each member’s outstanding balance should be reviewed at each Standards Board and Advisory Board meeting. When necessary, the Boards should meet with members and obtain written payment plans in order to prevent the situation from getting worse. The Treasurer is not required to be a member of the Standards Board, but should be invited to attend if the Board is meeting with a financially delinquent sister. It is recommended that the Standards Board meet with a member when she becomes 30 days past due, and then again at 60 days, if necessary. If a member becomes 90 days past due, she should be invited to meet with the Chapter Advisory Board to discuss the current payment plan and determine if changes to that plan need to be made. Any member that becomes 120 days past due should also meet with the Advisory Board to discuss the member’s delinquency, and next plan of action. Please see the sample letters to delinquent members (Resources 2 & 3) The chapter bylaws should state requirements to be considered in good standing. Members who are not in good financial standing should be dealt with accordingly. This includes revoking certain privileges, such as voting at elections and recruitment, attending the White Rose Formal, holding an office, or taking a little sister. A new member is not to be initiated if she has an unpaid balance. If it becomes necessary to submit a member’s outstanding balance to a Collection Agency, the Billhighway procedure “Send member to collections” should be followed. This can be found under the “Help” tab on Billhighway.

Promissory Notes Promissory Notes are simply the documentation of a member’s payment plan with the chapter. National Theta Phi Alpha recommends that each chapter obtain written agreements of each payment plan after a member’s balance exceeds a chapter-determined limit. A Promissory Note that has been developed by an attorney is illustrated at Resource 4. A brief explanation of each paragraph is included below as the Promissory Note is written in technical, legal language. o The first paragraph covers the basics: amount, interest rate, payment schedule,

member’s name and a statement that they owe the chapter money. o The second paragraph documents where payments are to be made and when they

are due. o The third paragraph states that prepayments are acceptable and will move up the

final due date. o The fourth and fifth paragraphs detail the conditions for default, at which time the

note becomes immediately due. At that time, the chapter can take further legal action.

o The sixth paragraph explains the chapter’s obligation regarding the Promissory Notes.

o The seventh paragraph documents the member’s obligations.



o The eighth paragraph details the State of Governance. o The ninth paragraph details where the Note was signed.

SECTION II, CHAPTER OPERATIONS


SECTION II – CHAPTER OPERATIONS

TREASURER OFFICER FILES Each chapter treasurer should have the following items in her files. Treasurer records are kept for 5 years and will be explained in detail below. From National Theta Phi Alpha:

National Constitution and Bylaws

Report forms related to her office

National Calendar of Due Dates

National Roster

National Policies and Standards of Achievement (Handbook)

Treasurer’s Financial Manual From the Chapter:

Copies of reports filed for her office Correspondence, sent and received

Minutes of meetings related to her office Campus Panhellenic or governing body Constitution

Membership Recruitment Rules University regulations regarding student organizations

All members should have:

Chapter Bylaws

Chapter and Advisory Board rosters

National Constitution and Bylaws

Chapter membership recruitment rules

Chapter budget

Chapter goals, both long and short term

My Sister, My Friend New Member Program

Emergency Procedure

RECORD KEEPING All banking will be done through the Billhighway online bill management system. The chapter/colony should not have any other local bank accounts unless it is an agency or University required account. The agency or University account must have been discussed with the National Treasurer and permission given to have this account. There is a checking account through Billhighway for general chapter/colony operations



and a separate Housing account. The housing account is used to set aside funds for possible future housing facilities on your campus or to furnish suites or houses on campus provided for your chapter’s use. A savings account is also available through Billhighway. It is highly recommended that each chapter use the savings account to set aside funds for larger items such as Convention and Leadership registration fees and travel, Regional Conferences, LC visits, or for unforeseen expenses. See the Billhighway help topic “Transfer Money to Savings”. Each chapter and colony must keep their financial records on the Billhighway system. From these records, the Treasurer prepares monthly financial reports, budgets, budget variance report, and tax returns. Adequate records ensure that the Treasurer can locate documentation of payments and receipts should questions arise. Depending on the type of accounts your chapter/colony has will reflect the type of records you will need to keep. For an agency or University account (only if required by the University), a checkbook (with detailed income and disbursement information), canceled checks, and bank statements will need to be filed. With Billhighway all of your Treasurer files will be accessible on the internet; this makes it easy for the Treasurer to do reports and to pass on the information to the incoming Treasurer. It is strongly suggested that the treasurer keeps a paper record with the chapter’s most recent account balance. The chapter’s monthly Account Statement, Income Statement, and Members Aging reports, as well as other information that the Treasurer feels is necessary should be kept in a binder or on a flashdrive. This will allow for an effective audit by an alumna when officer transitions occur. It is very important that the information on Billhighway is kept up to date and used regularly. If the chapter is not using Billhighway, or the information is incomplete or incorrect, that chapter will be subject to a fine!

What Is Billhighway? Billhighway is an online bill management system designed exclusively for fraternities and sororities. They offer various programs that are designed to make chapter/colony financial process easier. From collection of member fees and rent (in- and out-of-house) to budgeting and making payments for rent, food, dues, utilities, socials, etc., their services will help you manage your chapter's finances accurately and efficiently.

Complete collection, budgeting, and bill management service Quick, easy enrollment Up-to-date, accurate records Secure transactions Simplified transitions between chapter officers Billhighway Theft Protection Insurance Convenient, 24-hour access



Billhighway takes the hassle out of time-consuming, stressful money collection procedures by collecting dues from in- and out-of-house members as well as initiates for you. Each member of your chapter is invoiced by Billhighway and has the option to make one payment per term or monthly payments. Several payment options are available to the members also, options such as withdrawal from a bank account, credit card, or sending a check or money order. Billhighway will bill your members and send out monthly statements to members that have a balance, whether it is for a t-shirt or a late dues payment 20 days prior to your specified due date- so you don’t have to!

The appropriate officer will be able to view the monthly Accounts Receivable list to see who is not in good standing before chapter/colony meetings or view officer budgets to get an accurate account of how your chapter/colony money is being spent. All amounts are real time and automatically updated. You are able to export Monthly Financial Reports from the Billhighway website. No more checking account reconciliation and no more manual tracking of payments! Your chapter/colony’s checking account is automatically updated and will always display in real time! Each collegian and new member is given an on-line account that they are able to manage through Billhighway. Each woman has a user name and password to access their accounts. The Treasurer and Administrative Officers (ie. President and Vice President), have the ability to check all of the accounts - payments, and even check on aging receivable (members who owe money and how much) which can be printed out and filed. The Chapter Advisor and/or the Financial Advisor can also be given read-only access to Billhighway. If you have any questions or concerns about the system please contact Billhighway Customer Care at 1-866-245-5499 or [email protected]

Setting Up Billhighway Note: Billhighway has detailed step-by-step instructions for all functions under the “Help” link at the top of every web page. With the start of every new semester, you will need to go into the system and complete a few updates to your chapter’s information to ensure you have the easiest and most efficient experience with Billhighway. Below is a checklist for you to follow. (Please refer to the “Help” topics on Billhighway for specific instructions). It is very important that the most up-to-date information is in the system not only for the group but for the individual accounts. Step 1: Update Officer Information Step 2: Establish your new billing period (if not already established). Step 3: Establish new billing types



Step 4: Change billing types, member types and member statuses Step 5: Choose your new invoice due date & payment frequency options Step 6: Activate your chapter’s invoicing for the new semester This must be done at least 20 days prior to your invoice due date and prompts Billhighway to begin your invoicing for the new semester.

CHANGE OF OFFICERS Billhighway will need to be changed over during Officer Transitions. The outgoing Treasurer will have to pass over the user name and Password and change the account access to executive officer for the new Treasurer and Executive members who have changed positions (VP, President). After the officer transition, it is important that the new Treasurer set up a training session with Billhighway’s Customer Care. This will allow the new treasurer to become more familiar with the system and comfortable contacting Billhighway. An Annual Audit (Resource 5) will need to be completed by an alumna and submitted 30 days after the election.

CLOSING THE ACCOUNT In the unfortunate event that the chapter/colony closes, then any funds remaining in the Billhighway account must be remitted to National Theta Phi Alpha. Any funds remitted to the National Office will first be used against outstanding debt with the National Fraternity. The remaining funds will be available if the chapter/colony is reopened.

CASH RECEIPTS With the addition of Billhighway the Treasurer is able to add miscellaneous items to the sisters’ and new members’ accounts on-line to alleviate collecting money from sisters. However, the Treasurer may receive cash from alumnae, such as money for formal tickets, or donations. Although, checks are ideal, the Treasurer may receive cash payments. Use of a receipt book helps to simplify record keeping by providing documentation that a payment was received. Receipt books can be purchased at most office supply stores. Also, by carrying a receipt book to chapter functions, the Treasurer can track who she received money from at the function by quickly recording the payer’s name and amount. In addition, the receipt book should be used to audit the money that she deposits into Billhighway.

AGENCY OR UNIVERSITY ACCOUNTS

Certain chapters are required by their university to use an agency or university account, which basically requires the chapter to funnel all receipts and disbursements through the university. A chapter required to use an agency account will need to follow



procedures established by the university. Chapters with agency or university accounts have been able to give Billhighway access to their Greek Advisor, which takes the place of the agency or university account. However, these chapters may find the use of a paper check register and bank reconciliation procedures a good method to use in order to ensure the accounts accuracy. Since agency or university accounts differ from campus to campus, further discussion is excluded from this manual. Chapters that are required to use agency or university accounts may contact the National Treasurer or National Assistant Treasurer for additional assistance.

Bank Reconciliation The checking account is balanced each month for agency or University accounts. This is accomplished by first bringing the chapter financial records up-to-date. Since the closing date of your bank statement, you have probably been writing checks or making deposits. The subsequent checks and deposits need to be considered in order to balance your account properly. Often, your bank statement will include a reconciliation format. If not, reconciling your account is easy if you just follow the steps included on the sample bank reconciliation form illustrated at Resource 6. To further ensure the accuracy of the financial records, the Treasurer should ensure all receipts recorded in the cash receipts journal were deposited and all payments made were also recorded in the cash disbursements journal. Once you have completed the bank reconciliation format provided by the bank or illustrated at Resource 6, make sure you have added any interest received and subtracted any bank charges (e.g., charges for checks, stop payment fees, service charges) from your check register balance. This will ensure your balance is correctly recorded.

SECTION III, NATIONAL REPORTS


SECTION III – NATIONAL REPORTS

Filing reports is one of the most important parts of an officer’s job. Chapter finances are extremely important. The report forms are set up to help you as a chapter in tracking your income and expenses, and also provide valuable information to National Officers on your chapter’s financial standing. Billhighway allows you to export the information that you need for your reports and records, making it even easier to keep your records in order! If you have difficulty with any of these forms, contact your Advisory Board to find someone experienced in filling out financial forms, or call your Conference Director, Conference Administrator, or the National Treasurer/Assistant Treasurer.

MONTHLY FINANCIAL REPORTS THROUGH BILLHIGHWAY The following reports are to be sent to the National Office by the 15th of every month ([email protected]). Copies should also be sent to your Chapter Advisor and Financial Advisor. These reports also earn the chapter/colony a large share of cooperation points used to evaluate chapters/colonies under consideration for National awards.

The Account Statement assesses the financial position of the chapter.

The Income Statement gives the chapter/colony’s Year to Date and Current account balances for Receipts and Disbursements.

The Member Aging Report is where all members’ owed balances will be recorded.

BILLHIGHWAY HOW TO: 1. Export the Chapter/ Colony Account Statement, Income Statement, and

Member Aging Report from Billhighway: Log into Billhighway. Go to Reports tab Select the report you want

Account Statement Income Statement Member Aging Report

Select the Fiscal Year and Period (Month) Aging Report- UserID is 0

View Report (report will be generated)



At the export drop down arrow select Excel then click Export. 2. Putting the reports into one Excel file:

Open the Monthly Financial Report Template. (See Reports Disc or National

website). Complete the Chapter Data in the first tab. Copy and Paste Special the other 3 reports from Billhighway into the appropriate

tabs of the worksheet. Insert the Month and Year into each tab name. Save the excel report into a 201X fiscal year report file for your records. Send to [email protected] and your Chapter’s Financial Advisor and

Chapter Advisor The month of the report is for the previous month (e.g., the report due on April 15 is for the month of March). If the chapter/colony’s Billhighway account is set up in the manner suggested, completion and accuracy of this report will be simplified. Prepare reports every month, including months when school is NOT in session, even if there is not any activity.

Chapter/Colony Budget The chapter/colony budget assists the chapter/colony in estimating its receipts and disbursements for the upcoming year. As a result, the chapter/colony can identify whether they anticipate receiving enough cash to cover the payments they must make. The budget should also include regular deposits to savings for future uses such as the purchase of ritual equipment, LC visits, or to send members to Regional Conferences, Officer Leadership Training and National Convention. The expenses should be determined by an analysis of the amounts spent last year. Did you spend too much? Did you stay within your budget? The Budget to Actual will be your best resource for this. The Treasurer should submit a proposed budget to the chapter for approval before the budget is submitted to National Office. The Chapter Executive Board or Advisory Board may also wish to have preliminary approval. Once the budget is final, each officer and chairperson should be informed of the budget for their area. The chapter/colony budget is due to the National Office by September 15 for the upcoming fiscal year (September 1 – August 31).

mailto:[email protected]



How to Calculate Budget An Excel spreadsheet has been developed to aid in the calculation of the annual budget. (Please see the National website). This spreadsheet leads you through the calculation of every line item of the Chart of Accounts. Please keep in mind that not all chapters will use every line item in the Chart of Accounts. The budget should cover the period September 1 – August 31. Please ensure that you Chapter by-laws indicate a fiscal ear of September 1 – August 31. The following are some tips for some of the most used accounts. Receipts 4030 Collegian Dues

This line should be equal to # of sisters x amount of dues for each of the semesters. For the spring semester, remember to take into account any sisters graduating in December, and add the new members from the fall semester.

4100 Insurance Fee

This is equal to $40 x # of sisters on chapter roster for the fall semester. 4110 New member Dues

This line should be equal to # of new members x amount of dues for each of the semesters. (Use a realistic estimate on the number of new members for each of the two semesters).

4120 New member Fees

This should be the $30 New member Fee (or $40 for colonies) and $30 MSMF Materials Fee multiplied by the number of new members ($60 total per new member). (This is the same number of new members used in Line 4110 above).

4130 Member Service Fees

This should be the $100 Member Service Fee multiplied by the number of new members. (This is the same number of new members used in Line 4110 above).

4080 Jewelry Payments

This should be the $102 or $199.50 amount for Badges multiplied by the number of new members. (The same number of new members used in Line 4110 above).



4050 Assessments/Fines (Specify)

Does your chapter assess fines to sisters for missing events, late payment of dues, etc.? This should be reflected here.

4370 Fundraising

This should be your best estimate of what the chapter needs to fundraise. Be realistic!

4380 Fundraising for Philanthropy

This should be your best estimate of what the chapter will fundraise for philanthropies throughout the year.

4390 Chapter Portrait/Composite

Does your chapter bill separately for the composite, or other pictures (Bid Day, formal) or is it included in member dues? If it is separate, it should be reflected here.

4680 Founders' Day

Does you chapter charge a fee to attend a Founders’ Day ceremony, or is it included in member dues? If it is separate, it should be reflected here.

4670 White Rose Formal

Do sisters pay for the formal separately, or is it included in their dues? If it is paid for separately, it should be reflected here.

Disbursements 5010 Per Capita

This line should be equal to # of sisters x the current per capita rate for each semester. (This fee is paid only on collegiate sisters; not new members.)

5020 Insurance Fee

This should equal the amount in Line 4100.



5030 New member Fees

This should equal the amount in Line 4120. 5040 Member Service Fees

This should equal the amount in Line 4130. 5050 Jewelry Payments

This should equal the amount in Line 4080. 5060 Growth & Development Fee

This should be the number of sisters in the spring semester multiplied by $5. 5070 Leadership Conf. / Convention Fee

This is $475 per chapter/colony per year. 5080 Fines/Interest

The Recruitment fine paid each semester to National Theta Phi Alpha should be reflected here.

5090 Automated Payment Highway Fees

Billhighway charges $13.50 per member per semester. This amount is automatically deducted

5210 Recruitment Expenses

This should be the amount the chapter spends on Recruitment Events. Decorations, refreshments, advertising, general supplies, etc.

5220 New member Ed. Program Expenses

Any incidentals for the New member Education Program. 5230 Academic Excellence/Scholarship Expenses

Any incidentals for the Academic Excellence/Scholarship Program. (Awards, etc).

5240 Philanthropy Program Expenses



Any supplies need to hold an event. 5250 Philanthropy Donations

This should equal the amount in Line 4380. 5260 Ritual Expenses

White Roses & candles needed for ceremonies Any new ritual equipment needed

5270 Panhellenic/Greek Council Dues

Is there a Panhellenic on your campus? If yes, any dues paid should be reflected here.

5545 Stationary Supplies

Notebooks, photocopies, etc. 5550 Fundraising Expenses

Any supplies needed to carry out the project, or to pay the supplier for any items you may sell.

5090 Bank Service Charges

Billhighway fee per member per semester. 5560 Chapter Portrait/Composite

The amount paid for the chapter composite or other photos should be reflected here.

5565 Chapter Advisory Board Expenses

This really shouldn’t be a large number. 5670 Founders' Day

Estimated cost of holding the event. Can be based on prior year info. 5675 White Rose Formal

Does the chapter hold a formal? The amount spent on the venue, food, DJ, decorations, transportation, etc. should be reflected here.



5680 Gifts

Any prizes or incentives awarded to sisters throughout the year. Please refer to the “Help” topic on Billhighway for instructions for entering your chapter budget onto Billhighway.

The Billhighway Budget cannot be exported at this time.

Highlight/select the information on the screen and copy. Paste into a blank Excel spreadsheet. Save the Excel report into a 201X fiscal year report file for your records. Send to [email protected] and your Chapter’s Financial Advisor and

Chapter Advisor.

Budget Variance Report The Budget Variance Report has several purposes. First, it assists the Treasurer in developing the following year’s budget. Next, it serves as an analytical tool to evaluate how well the chapter anticipated its receipts and disbursements. It can also be used throughout the year to monitor expenditures and determine if an officer/chairperson is staying within budget. Finally, it can assist in preparation of the Tax Return. In order for this report to be useful, invoices to members, deposits, and all checks written must be posted to the correct account in the Chart of Accounts. If you have discovered that an item has been posted to the wrong account, please refer to the “Help” topics on Billhighway for instructions on how to correct the posting. This completed form should be provided to chapter members during the budget evaluation process. For differences over $500, determine why the variance has occurred and provide a brief explanation. This report is due on September 15 to cover the prior fiscal or academic year. The report can be exported from Billhighway into Excel. Email to [email protected].

Annual Audit An Annual Audit is completed to ensure an efficient transition between Treasurers and to help ensure that the new Treasurer understands financial requirements and record keeping. The annual audit is a review of the chapter financial records by a knowledgeable alumna (Chapter Advisor, Financial Advisor, or an appointee). This report is due to National Office within 30 days after election.





Email original to National Office, one copy to the chapter’s Financial Advisor or Chapter Advisor (or Colony Advisor) and keep one copy for the chapter/colony’s records. The audit report form is self-explanatory. The alumnae member is asked to keep in mind whether the chapter’s financial records are adequately maintained and to suggest any improvements to the Treasurer for implementation. See Resource 5.

Remittance Form for Chapters/Colonies A Remittance Form is to accompany all payments made to National Office to detail the reasons a chapter/colony is remitting money. Indicate on the form which categories you are paying to Theta Phi Alpha. This includes items such as per capita fees, new member fees, insurance fees, member service fees, charter fees, Leadership Conference/Convention fees, badge orders, pledge pins, manuals, handbooks, song CDs, etc. See Resource 7. Send the original to National Office with the check and retain one copy for the chapter/colony’s records. Make sure that Billhighway check has the Chapter name written in the Memo section. A separate remittance form is used for Growth and Development. See Resource 8.

INFORMATION FROM NATIONAL TREASURER

Invoices for National Fees The National Treasurer will email to each chapter/colony via the [email protected] email address invoices for National Fees described in Section 1.

Fall Semester Spring Semester

Insurance/Risk Management Fee Per Capita Growth & Development Fee Convention/Leadership Conference Fee New Member Fees are to be submitted with the New Member Information Forms, and Member Service Fees are to be submitted with the Initiation Report. Please indicated the Invoice # on the scheduled BillHighway payment. Please use the appropriate Remittance Form when sending checks to the National Office.




Monthly Statements The National Treasurer will also send monthly statements to each chapter/colony, usually by the 15th of the following month. These statements are emailed to the chapter’s Theta Phi Alpha email addressed, and are copied to the Chapter Advisor, Conference Director, and Conference Administrator. The purpose of the monthly statements is to allow the chapter/colony the opportunity to keep tabs on their financial standing with the Fraternity. The statements will list any fees the chapter/colony has been invoiced for, and any payments that have been made. Please review these statements carefully and notify the National Treasurer if you believe there is a discrepancy.

SECTION IV, TAXES


SECTION IV – TAX REPORTING At this time, Theta Phi Alpha has received Group Exemption status from the Internal Revenue Service. This allows each chapter to utilize National Theta Phi Alpha’s tax filing status, rather than to apply for its own filing status. This means each chapter/colony has a fiscal tax year ending on August 31 (September 1 to August 31). The tax return due date would be January 15, at both the Internal Revenue Service and National Office. Under this status, the National Treasurer handles some of the necessary paperwork and filings for all chapters/colonies, such as submission of Form SS-4 (Application for Employer Identification Number) for new chapters/colonies. The primary benefit is that most chapters/colonies are not required to file an annual tax return (Form 990). A chapter/colony whose annual gross receipts are normally more than $25,000 will have to file an annual tax return, (Form 990 and/or Form 990T). Chapters/colonies whose annual gross receipts are $25,000 or less will have a Form 990-N filing requirement. An additional benefit is that new groups will not have to apply or pay necessary application fees. A chapter/colony MAY BE REQUIRED to file either a Form 990 or 990-EZ, if it meets certain Federal regulations. The Regulations state that a chapter/colony must file a tax return if the chapter’s/colonies gross receipts exceed $25,000 for the fiscal year ending August 31, (9/1 to 8/31). The definition of “gross receipts” is all monies collected by the Treasurer. This includes all money that is collected by the chapter/colony, including, but not limited to t-shirt, formal, picture money, etc. Gross receipts for the fiscal year ending August 31, (9/1 to 8/31) can be determined by the Income Statement on Billhighway. Select the appropriate Year, and August for the Month. Add up all total amounts for the Income categories. If the chapter’s/colony’s gross receipts exceed $25,000, a Form 990-EZ may be used. The Form 990-EZ may be used if the chapter’s/colonies gross receipts during the 2009-2010 and subsequent fiscal years are less than $200,000 and its total assets at the end of the fiscal year are less than $500,000. If a chapter/colony meets these guidelines, it may file either a Form 990 or a Form 990-EZ. If a chapter’s/colony’s receipts are more than $200,000 or its total assets exceed $500,000, a Form 990 must be used. For chapters/colonies with over $25,000 in receipts, a tax package is available from your local Internal Revenue Service office, or online at www.irs.gov. The package has detailed examples of how to complete the form. Also, the National Treasurer can answer any questions you have on tax form completion. Please allow three to four weeks to obtain these materials from the Internal Revenue Service if your local office

SECTION IV, TAXES


does not have them in stock. There is a $20/day late filing penalty for each day the return is filed after the January 15 due date. If you are late in filing your return, please contact the National Treasurer who will advise you on how to proceed. Larger chapters/colonies may need to seek the assistance of a tax preparer to help them complete and file their returns. If the chapter/colony cannot locate a preparer in its local area, please contact the National Office or National Treasurer for the name of the preparer that the National Fraternity uses. The completed tax return is to be mailed to the Internal Revenue Service by the due date to:

Department of the Treasury Internal Revenue Service Center

Ogden, UT 84201-0027 A copy is also to be sent to the National Office for the Fraternity’s files. Starting with any taxable year ending after December 31, 2006, a Form 990-N is required to be filed for all chapters, colonies and associations with $25,000 or less in gross receipts for each fiscal year. This form is completed through the internet at www.irs.gov. This filing will be handled by the National Office with assistance from the chapter, colony or association. The National Treasurer will contact all chapters to inform you which Tax Form your chapter will need to file.

http://www.irs.gov/

SECTION V, RESOURCES


SECTION V – RESOURCES 1. Financial Responsibility Agreement 2. Sample Delinquency Letter 3. Sample Delinquency Letter 4. Promissory Note 5. Annual Audit Report 6. Bank Reconciliation 7. General Remittance Form 8. Growth & Development Remittance Form 9. Calendar of Due Dates 10. Billhighway New Member Information Form The National Treasurer and National Assistant Treasurer are there to answer any questions you may have. They are there to provide financial assistance and suggestions where needed. NATIONAL OFFICE Shane McGoey, Ph.D., Executive Director 27025 Knickerbocker Road Bay Village, Ohio 44140 1-440-899-9282 1-440-899-9293 (fax) [email protected] (email) www.thetaphialpha.org (national website) [email protected] (reports)


http://www.thetaphialpha.org/


august 2015 · financial manual page 1 august 2015 introduction each chapter and colony of theta...

Documents