Association for Education and Rehabilitation s1

Association for Education and Rehabilitation of the Blind and Visually Impaired

MANUAL FOR CHAPTER TREASURERS

Revised April, 2010 2

TABLE OF CONTENTS

TABLE OF CONTENTS......

DUTIES OF A CHAPTER TREASURER......

INSTRUCTIONS FOR PREPARING TREASURER’S REPORT......

TREASURER’S REPORT......

Option #1: COMPUTER FINANCE SOFTWARE PROGRAMS......

Option #2: INSTRUCTIONS TO PREPARE SUMMARY SCHEDULES OF INCOME AND EXPENSES FOR CHAPTERS THAT DO NOT USE COMPUTER PROGRAMS......

LEGAL ISSUES......

RECORD AND DOCUMENT ARCHIVES......

AER CHAPTERS’ WITH TAX ID NUMBERS......

THE ABC CHAPTER......

Sample Treasurer’s Report......

Sample Summary Schedule of Income (Current Year)......

Sample Summary Schedule of Income (Previous Year)......

Sample Summary Schedule of Expense (Current Year)......

Sample Summary Schedule of Expense (Previous Year)......

SUMMARY SCHEDULE OF INCOME......

SUMMARY SCHEDULE OF EXPENSES......

ANNUAL FINANCIAL REPORT TO AER...... 23 3

DUTIES OF A CHAPTER TREASURER

1. Make a written report to the Chapter Board and Chapter membership at every meeting. 2. Pay and properly record all expenses authorized by the Board. 3. Promptly deposit and record all rebates, registration fees, and other funds in the appropriate bank account. They are your responsibility. REMEMBER: All AER Chapter Rebate checks must be deposited within 90 days of issuance or they will become null and void. 4. Follow up on cash collections, such as registration fees which are not paid by members. 5. Reconcile the Chapter checking account each month using the instructions on the bank statement. 6. Prepare a budget. Anticipate in advance the financial needs of the Chapter so excess funds can be invested in higher interest earning funds rather than a regular checking account. 7. Maintain legible and complete ledger records to pass on to your successor. 8. Perform all other duties as required by the Chapter Bylaws. 9. Obtain an audit of the books once a year.

When an individual assumes the office of Treasurer, contact should be made with the old Treasurer to obtain the Chapter’s financial records. If current bank accounts are not logistically convenient to the new Treasurer, the new Treasurer should locate a convenient bank and obtain signature cards prior to the next Board meeting. These should be presented to the Board at that meeting to obtain necessary Board approval and signatures. The Treasurer should be approved to sign all checks. However, it is also suggested that 4

another officer (preferably the President) be approved as an authorized check signer in the event that the Treasurer is not available to do so. 5

INSTRUCTIONS FOR PREPARING TREASURER’S REPORT

1. In preparing the Treasurer’s Report (Page 5) for your Chapter, remember that all Income and Expense figures to appear in the first column should include amounts earned or disbursed from January 1 of the current year to the end of the current month. The second column should include similar figures for the same period of time during the prior year. Any net losses should be indicated with a set of brackets around the loss figure.

2. When filling out the bottom of the Treasurer’s Report, assets are reported as a point in time rather than a period of time which is used for income and expense figures. You should use your end of month checkbook/ passbook balance in the first column. Your checkbook/passbook balances for the same point in time last year should be recorded in the second column. 3. A written Treasurer’s Report should be submitted to your Chapter Secretary at each Board or membership meeting so it can be properly recorded in the minutes of the meeting. 4. The Treasurer’s written report may be recorded in one of two ways: Option #1 -- The use of a computer finance software program such as Quicken, Microsoft Excel, Microsoft MONEY, etc., or whichever software is available to the Chapter (Page 6). Option #2 – The use of a ledger written report. (See Instructions to Prepare Summary Schedules of Income and Expenses for Chapters That Do Not Use Computer Programs Page 7). 6

______CHAPTER

Association for Education and Rehabilitation of the Blind and Visually Impaired TREASURER’S REPORT For the ______months ending ______, 20____ Prior Year Year Income To Date To Date Rebate Conference Registration Fees Interest on Bank Accounts Donations Fund Raising Miscellaneous ______Total Income $ $ Expenses Administrative: Supplies and Printing Postage Telephone Officer Travel Bank Charges Miscellaneous ______Total Administrative Expenses $ $

Professional: Conference Expenses Publications Activities Miscellaneous Total Professional Expenses ______$ $ Total Expenses ______

Net Income (Loss) $______$ ______******************************************************************************* Assets (Bank Accounts) As of As of ___/___/______/___/___ Checking Account Regular Bank Accounts Special Bank Accounts Itemize ______Total Assets $ $

Submitted by ______(Name and Address of Chapter Treasurer) Signed ______Date: ______7

Option #1: COMPUTER FINANCE SOFTWARE PROGRAMS Each chapter should decide which computer software program is best for them. A few well-known programs are listed below. It is suggested, however, that chapter treasurers visit office supply or computer software stores and determine which program would be best for their chapter.

Microsoft Excel - Personal and office management software, including tutorial.

Microsoft Money - Personal finance software, including tutorial.

Quicken - Finance management, budgeting, money, personal finance software, including tutorial. 8

Option #2: INSTRUCTIONS TO PREPARE SUMMARY SCHEDULES OF INCOME AND EXPENSES FOR CHAPTERS THAT DO NOT USE COMPUTER PROGRAMS

1. At the end of each month, post to a Summary Schedule of Income (see Page 20) the total amounts in the various income categories listed on the sample form provided. Remember to post interest earned from your various bank accounts. Your bank statement will show these amounts. The total figure for each month should be added to the previous subtotal to come up with a current subtotal. The new subtotal can then be transferred to the Chapter Treasurer’s Report. 2. At the end of each month, post to a Summary Schedule of Expenses (see Page 21) the total amounts in the various expense categories listed on the sample form provided. Remember to post any bank charges which are indicated on your bank statement. The total figure for each month should be added to the previous subtotal to come up with a current subtotal. This new subtotal can then be transferred to the Chapter Treasurer’s Report. 3. New Summary Schedules should be started each January and used for the entire year. Year-end grand totals can be posted to the financial report (Treasurer’s Report page 5) that you must submit to the Central Office at the end of the year.

These forms will also assist you in preparing a comparative report for your Chapter Board, membership, and, of course, the Central Office. Comparative financial statements include current year data, plus prior year data, and are much more meaningful than just current figures. However, if current year figures are all that are available, they will suffice. 9

LEGAL ISSUES

(This information is taken from the AER Chapter Presidents’ Manual.) IS YOUR CHAPTER INCORPORATED? ARE YOU TAX-EXEMPT? Do not assume that because you are a chapter of AER you are automatically incorporated. Nor are you necessarily tax-exempt. A chapter can be tax- exempt either on its own or under AER’s group exemption. In either case, you will be considered exempt under Section 501(c) (3), the same provision under which AER is exempt. Only a couple of chapters have filed their own applications with IRS. All chapters have completed the steps necessary to be included in AER’s group exemption. But we have a “tax-exempt number.” Every AER chapter has a federal identification number. People sometimes refer to this as their “tax-exempt number,” but it really is more like your chapter’s Social Security number. It is strictly for identification purposes and the existence of a number does not necessarily mean you are tax-exempt. Do we need to be tax-exempt? The major implication of not having tax-exempt status is that contributions made to your chapter are not tax deductible for the giver. This could be important if you plan to do any fund-raising or requests for grants. If your chapter is not included in AER’s group exemption and you would like to be, call the AER Office for further information. Are there disadvantages to being tax-exempt? For most chapters, being exempt from federal tax will not mean any additional work. There is an end-of-year information return which has to be filed with the Internal Revenue Service, but only if your chapter has had gross receipts of more than $25,000 in the preceding year. 2008 Annual Electronic Notice Filing Requirement 10

Most small tax exempt organizations, including AER chapters, with gross receipts that are normally $25,000 or less in a tax year, must now file the new e-Postcard with the Internal Revenue Service. This must be filed by the 15th day of the fifth month after the close of your tax period. Failure to file an e-Postcard or an IRS form 990 for three years will result in the revocation of your tax exempt status. See www.irs.gov/eo for details.

What about “lobbying”? Tax exempt organizations cannot be involved in any political campaigns, and under no circumstances can your chapter endorse specific candidates for office. You can, however, put out legislative alerts and otherwise educate your members about important legislative issues. If , however, you plan to hire a paid lobbyist, that is a very different matter, and you should seek legal advice so that you do not jeopardize your tax status on such an effort. For most chapters, the restrictions on lobbying will not be an issue. To incorporate or not to incorporate, is that the question? Incorporation is strictly a matter of whether your chapter has formally “registered” with your state. You do not have to be incorporated in order to be tax-exempt. The answer to whether you should incorporate generally is “yes!” Incorporation simply adds a layer of legal protection for the individual officers and board members. It is not a guarantee of immunity from legal liability, but it creates the chapter as a separate legal entity. Incorporation as a nonprofit corporation usually is not a complicated or expensive process. (Remember, in this context, “nonprofit” simply means that you are not organized for the purpose of making a profit as a business entity. It does not mean that you necessarily are tax-exempt. Thus, you can be a nonprofit corporation but still not be recognized as tax-exempt by the Internal Revenue Service.) 11

Many states have pre-printed forms to make it easier to register as a nonprofit corporation and fees are usually well under $100 for non-profits. Call your state office of the Secretary of State or Recorder of Deeds for information. 12

What about liability? As indicated above, incorporating provides a small element of protection from liability. However, the only real protection comes in the form of various kinds of liability insurance. Most chapters do not have any kind of liability insurance. The important point for you to understand here is that the International AER’s liability policies do not cover chapter boards, chapter activities, or chapter conferences. Do we need insurance? The question of liability insurance for chapters comes up only occasionally, generally in the context of hotel negotiations. A few hotels want any group which holds meetings in their facility to have its own liability insurance coverage. This is based on the “deep pockets” theory which holds that if someone is hurt while attending a conference they will have an entity in addition to the hotel which they can sue for damages. If your board wishes to purchase such coverage, that can be done as a chapter, it does not involve the International AER at all. This is equally true if your chapter hosts a regional conference. There may be other reasons to consider liability insurance for what is known as “errors and omissions.” Such a policy protects individual officers and board members from being sued for actions, positions, etc., taken by the chapter. Whether you need or want such insurance will be an individual decision based on your own chapter’s experiences and the feelings of your board. What about city and state sales taxes? Even if your chapter is exempt from federal taxes, that is no guarantee that you will be considered exempt from state and local sales taxes. This is strictly a state-by-state determination. For instance, in the State of Virginia, where International AER is incorporated, exemptions from sales tax are extremely limited and AER is not eligible. Generally, if eligible, you will have to file a separate application for exemption from sales taxes within your state. What about fund raising? Can AER chapters engage in fund raising activities? The answer is yes, but any such activities require good record keeping and advance checking to make sure that you comply with all relevant state regulations. For instance, raffles and “sweepstakes” are illegal in some places. One popular fund raising activity for many chapters is the “sale” of items such as mugs or tee shirts. It is important to treat these activities as fund raising rather than as sales because otherwise you may be liable for state sales taxes, etc. In any printed material, refer to the fact that you are asking for a contribution and offering the item as a reward. So, for instance, that tee shirt isn’t “for sale for $10.00,” it’s being offered to anyone who wishes to make a $10.00 contribution! If your chapter is considering a more formal fund raising effort, especially one which involves putting AER’s name before the general public and/or paying for the services of a professional fund raiser, please call the AER office for advice and assistance before entering into any agreements. 14

RECORD AND DOCUMENT ARCHIVES

It is recommended that chapters archive financial records, official minutes of Chapter and Board meetings, and Chapter correspondence. The following guideline on document retention is recommended by the American Society of Association Executives.

Permanent Records

Cash books Canceled checks for taxes (receipt) Financial statements, annual audits Legal correspondence Official Minutes, Chapter and Board

Seven Years

Accounts payable Canceled checks Expense reimbursements Invoices to members Invoices to vendors 15

Sales records

Three-Two Years

General correspondence Membership applications Purchase orders 16

AER CHAPTERS’ WITH TAX ID NUMBERS

The following chapters have Tax Identification numbers. For security purposes those numbers are not published here. They are on file in the AER central office in Alexandria, Virginia. If you need more information on your chapter’s number, contact the office at 887-492- 2708, 703-671-4500, FAX: 703-671-6391, or e-mail: [email protected].

Chapter Chapter Alabama New Jersey Alaska New Mexico Arizona New York Arkansas North Carolina Colorado Northeast Dakotas Northern California DC Maryland Northern Rockies Florida Northern Virginia Georgia Ohio Hawaii Oklahoma Illinois Oregon 17

Indiana Penn-Del Iowa South Carolina Kansas Southern California Kentucky Tennessee Louisiana Texas Michigan Utah Mississippi Washington Missouri Wisconsin Nebraska Virginia

THE ABC CHAPTER On the following pages, you will find the financial records for a fictitious Chapter. At the end of April, 2007, the Treasurer has reconciled the Chapter checking account using the instructions on the bank statement, brought 2007 Summary Schedules of Income and Expenses up to date, and prepared a comparative Treasurer’s Report using 2006 Summary Schedules of Income and Expense. You will notice these figures posted on their appropriate lines in the Treasurer’s Report on page 15. 18

______ABC______CHAPTER Association for Education and Rehabilitation of the Blind and Visually Impaired

Sample Treasurer’s Report For the ______months ending ______, 20____ Prior Year Year Income To Date To Date Rebate $ 926.00 $ 758.00 Conference Registration Fees 1, 805.00 220.00 Interest on Bank Accounts 63.55 54.30 Donations .00 60.00 . Fund Raising .00 .00 Miscellaneous ___ __ .00______.00 Total Income $ 2,794.55 $ 1,092.30 Expenses Administrative: Supplies and Printing 12.61 5.25 Postage 159.35 70.56 Telephone .00 .00 Officer Travel 14.25 50.52 Bank Charges 2.00 5.00 Miscellaneous .00 .00 Total Administrative Expenses $ 188.21 $ 131.33

Professional: Conference Expenses $ 1,255.11 $ .00 Publications .00 62.15 Activities .00 .00 Miscellaneous ____ .00 .00 Total Professional Expenses $ 1,255.11 $ 62.15

Total Expenses _1,443.32_ 193.48 19

Net Income (Loss) $ 1,351.23 $ 898.82 ******************************************************************************* Assets (Bank Accounts) As of As of 4/30/04 4/30/03 Checking Account $ 358.68 $ 412.13 Regular Bank Accounts 1,921.99 917.22 Special Bank Accounts Itemize - Money Market 3,582.17 3,375.66 Total Assets $5,862.84 $4,705.01

Submitted by ______(Name and Address of Chapter Treasurer)

Signed ______Date: ______ABC_____ Chapter Sample Summary Schedule of Income (Current Year) Rebates Registration Interest Donations Other Fund Raising Totals 2007 Fees January 15.16 15.16 February 780.00 14.51 . 794.51 subtotal 780.00 29.67 809.67 March 675.00 16.69 . . 691.69 subtotal 780.00 675.00 46.36 . 1 501.36 April 146.00 1130.00 17.19 1293.19 subtotal 926.00 1805.00 63.55 2794.55 May subtotal June subtotal July subtotal August subtotal September subtotal October subtotal November subtotal December

Grand Totals 21 ______ABC ______Chapter

Sample Summary Schedule of Income (Previous Year)

2006 Rebates Registration Interest Donations Other Fund Raising Totals Fees January 13.22 13.22 Feb0ruar 12.84 12.84 y subtotal 26.06 26.06 March 758.00 12.69 60.00 830.69 subtotal 758.00 38.75 60.00 856.75 April 220.00 15.55 235.55 subtotal 758.00 220.00 54.30 60.00 1092.30 May 256.00 460.00 16.30 732.30 subtotal 1014.00 680.00 70.60 60.00 1824.60 June . 15.60 15.60 subtotal 1014.00 680.00 86.20 60.00 1840.20 July 13.80 13.800 subtotal 1014.00 680.00 100.00 60.00 1854.00 August 11.54 11.54 subtotal 1014.00 680.00 111.54 60.00 1865.54 September 760.00 11.18 771.18 subtotal 1014.00 1440.00 122.72 60.00 2636.72 October 68.00 340.00 12.17 420.17 subtotal 1082.00 1780.00 134.89 60.00 3056.89 November 16.08 16.08 subtotal 1082.00 1780.00 150.97 60.00 3072.97 Decembe . 14.13 14.13 r Grand Totals 1082.00 1780.00 165.10 60.00 3087.10 0 22 ______ABC ______Chapter

Sample Summary Schedule of Expense (Current Year) Administrative Professional 2007 Supplies Postage Telephone Travel Bank Charges Conference Publications Activities Misc. Printing Expenses January . 31.02 . February . subtotal . 31.02 . March 12.61 14.25 subtotal 12.61 14.25 April . 128.33 . 2.00 1255.11 . subtotal 12.61 159.35 14.25 2.00 1255.11 . May subtotal June subtotal July subtotal August subtotal September subtotal October subtotal November subtotal December

Grand Total 23 __ ABC ______Chapter

Sample Summary Schedule of Expense (Previous Year) Administrative Professional 2006 Supplies Postage Telephone Travel Bank Charges Conference Publications Activities Misc. Printing Expenses January 5.25 . February 50.52 . subtotal 5.25 50.52 . March 70.56 5.00 62.15 subtotal 5.25 70.76 50.52 . 62.15 April 5.00 subtotal 5.25 70.56 50.52 5.00 62.15 May 24.20 . subtotal 5.25 94.76 50.52 5.00 62.15 June . 259.16 subtotal 5.25 94.76 50.52 5.00 259.16 62.15 July 11.28 41.87 . subtotal 16.53 94.76 92.39 5.00 259.16 62.15 August . subtotal 16.53 94.76 92.39 5.00 259.16 62.15 September . subtotal 16.53 94.76 92.39 5.00 259.16 62.15 October 84.93 51.29 subtotal 16.53 179.69 92.39 5.00 259.16 113.44 November . 1062.12 subtotal 16.53 179.69 92.39 5.00 1321.28 113.44 December 9.35 6.22 Grand Total 16.53 189.04 6.22 92.39 5.00 1321.28 113.44 24 ______Chapter ______Year SUMMARY SCHEDULE OF INCOME

Rebates Registration Interest Donations Other Fund Raising Totals Fees January February subtotal March subtotal April subtotal May subtotal June subtotal July subtotal August subtotal September subtotal October subtotal November subtotal December

Grand Totals

25 ______Chapter ______Year SUMMARY SCHEDULE OF EXPENSES Administrative Professional Supplies Postage Telephone Travel Bank Charges Conference Publications Activities Misc. Printing Expenses January February subtotal March subtotal April subtotal May subtotal June subtotal July subtotal August subtotal September subtotal October subtotal November subtotal December

Grand Total 26 The following page is a copy of the annual financial report that is due to AER by march 31st of each year for the previous fiscal year. This is to be submitted promptly to avoid any delay of receiving the chapter’s quarterly rebate check. 27 AER CHAPTER FINANCIAL REPORT

Please return this form to AER, 1703 N. Beauregard Street, Suite 440, Alexandria, VA 22311. Questions? Call 877.492.2708 or 703.671.4500. Return by ______.

Name of Chapter:______

Calendar Year (ending December 31): 2007

1) Balance brought forward (from previous year): ______

INCOME: Chapter rebates: ______Workshop or conference (itemize if more than one held during the calendar year): ______Miscellaneous (interests, etc.): ______

Income subtotal: ______

2) Balance brought forward plus total income ______

EXPENSES: Supplies and printing ______Postage: ______Telephone: ______Office travel: ______Professional: ______Activities: ______Publications: ______Conference: ______Workshop: ______Other (itemize below): ______Itemizations: ______

3) Expenses subtotal: ______

4) Balance (subtract 3 from 2) ______

Bank name and address: ______

Name and address of chapter treasurer submitting this report:______