the construction specifications institute csi chapter financial education webinar series #4:...
TRANSCRIPT
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…”
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:
[email protected], 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
Michelle Brown, The Novick Group
Shannon MacGregor, MBA, CAE
800-689-2900, ext. 4730
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