THE SOCIETY FOR CREATIVE ANACHRONISM, INC. CHANCELLOR OF THE EXCHEQUER HANDBOOK January 2020 TABLE OF CONTENTS Introduction Index – Defined Terms Chapter 1 - Exchequer Responsibilities 1-1 I. Organizational Definitions 1-1 II. Stated Rules to Hold Office 1-1 III. Additional Requirements to Hold Office 1-2 IV. Warrants 1-4 V. First Duties When Assuming Office 1-5 VI. Regular Duties 1-6 VII. Financial Reports 1-13 VIII. Other Reports 1-15 IX. Maintaining Files 1-16 X. Removing Files 1-17 XI. Selecting A Successor 1-17 XII. Leaving Office 1-17 Chapter 2 - Managing Deputies and Interaction with Others 2-1 I. Branch Exchequers 2-1 II. Deputies to the Kingdom Exchequer 2-2 III. Communication 2-2 IV. Issuing Warrants/Rostering 2-5 V. Training 2-6 VI. Managing Internal, Administrative Form Templates 2-6 VII. Reviewing the Local Reports 2-7 VIII. Other Corrective Actions 2-10 Chapter 3 - Financial Committees 3-1 I. Financial Committee Responsibilities and Purpose 3-1 II. Financial Policies 3-1 III. Granting Variances to Policy 3-6 IV. Approving Financial Activities 3-6 Chapter 4 - Bank Account Management Procedures 4-1 I. Opening or Changing a Bank Account – Kingdom Exchequer 4-1 II. Signature “Cards” (Bank Request Form) 4-2 III. Corporate Resolutions 4-4 IV. Closing a Bank Account 4-4 Chapter 5 - Managing Assets – Cash I. Bank Accounts 5-1 II. Managing Assets and Accounts 5-1 III. Income 5-3 IV. Allowed Expenses 5-6 V. Expenses Disallowed from SCA Accounts 5-14 VI. Reimbursements 5-15 VII. Direct Purchases 5-15 VIII. Transfers to and from Other SCA Accounts 5-15 IX. Special Procedures 5-16 X. Managements of Special Purpose and Dedicated Funds 5-18 XI. Reconstructing Books 5-19 Chapter 6 - Managing Assets – Non-Cash 6-1 I. Inventory 6-2 II. Regalia 6-5 III. Donated Equipment 6-8 IV. Purchased Equipment 6-9 V. Depreciation 6-9 VI. General Supplies 6-11 VII. Real Estate and Permanent Structures 6-11 VIII. Vehicles 6-11 IX. Management Procedures 6-12 Chapter 7 – Events 7-1 I. Budgets 7-1 II. Event Advertising 7-5 III. Merchants 7-7 IV. Controls of cash 7-8 V. Going Over Budget 7-15 VI. Reporting 7-16 VII. Recovering Bad Debts 7-16 VIII. Cancelling an Event 7-16 Chapter 8 - Administrative Form Instructions 8-1 I. Non-Member Registration Submission Form 8-1 II. Request for Warrant 8-2 III. Warrant Form 8-3 IV. Review of Books Report 8-3 V. Administrative Forms 8-3 VI. Suggested Event Forms 8-5 Chapter 9 - Financial Report Form Instructions 9-1 I. Reporting Timeframes and Formats 9-1 II. Purpose of the Financial Report Packet 9-2 III. General Directions 9-3 IV. Specific Form Instructions 9-6 V. Negative Report Form 9-28 Chapter 10 - Consolidated Year End Workbook Instructions 10-1 I. Reporting Timeframes and Formats 10-1 II. Purpose of Financial Report Workbook 10-2 III. General Directions 10-2 IV. Directions for Each Page 10-3 V. Special Situations 10-10 Chapter 11 – PayPal 11-1 I. Administrative – Society to Kingdom 11-1 II. Email Account 11-1 III. PayPal Checking Account – Society to Kingdom 11-1 IV. PayPal Account – Kingdom Level 11-2 V. Kingdom Level – PayPal Account 11-3 VI. PayPal Processing 11-5 VII. Template Settings for Items within PayPal 11-6 VIII. Create an Invoice 11-9 IX. Requirement at the Group Level 11-16 X. Reservation Procedure - Kingdom Level 11-22 XI. Payment at the door – LOCAL LEVEL 11-29 XII. KINGDOM – Transferring money from PayPal to Kingdom’s PayPal Checking Account 11-30 Chapter 12 – Taxes 12-1 Chapter 13 - Book Reviews 13-1 I. Schedule the Review 13-1 II. Prepare for the Review 13-2 III. Conduct the Review 13-3 IV. Record the Review 13-4 V. Review of Books Report Form 13-4 Chapter 14 - Handling Bad Checks 14-1 I. Scope of Involvement 14-1 II. Privacy Requirements 14-1 III. Recovery Steps 14-1 IV. Implementing Kingdom Level Bad Check List 14-4 V. Sample Letter Text 14-6 Chapter 15 – Handling Possible Theft 15-1 I. How to Investigate a Possible Theft 15-1 II. Theft Resolution Procedures for Seneschals and Exchequers 15-4 Chapter 16 – Sanctions 16-1 Appendix A - Forms Introduction INTRODUCTION Welcome to the Society for Creative Anachronism, Inc. (SCA) and the challenging, and rewarding, world of financial responsibility and reporting. The SCA was incorporated in the United States, in the State of California as a 501(c)3 educational corporation. There are several states that are incorporated separately, but are under the SCA, Inc. umbrella. Affiliate organizations with branches exist in other parts of the world such as Australia, New Zealand, and in European countries like Finland and England. This Handbook was created to cover the financial procedures for any part of the SCA. THE OFFICE OF THE CHANCELLOR OF THE EXCHEQUER Holding the Office of Chancellor of the Exchequer will challenge you to use current bookkeeping methods combined with governing policies and a LIBERAL dose of common sense. Your Exchequer Superior is available to assist you with training, information or if you have questions. The duties of the Exchequer include: • Oversight of all assets of your Branch, which includes both monetary and non- monetary. • SCA funds must be kept separate from any personal accounts, including the Exchequer. • Be honest and responsible in your dealings with everyone, including members of the populace, subordinate and superior officers, and members of the modern (mundane) world. • Keep everyone informed on the status of your Branch’s assets (monetary and non- monetary) • Prepare from the first day of the year (and the first day you enter the office) to fill out the financial reports at the end of the year. • Be transparent • Make sure everyone is kept informed about the status of the branch’s money and equipment. • Keep your ledgers updated and current. • Only pay by check, and only after receipt of appropriate receipts or carefully signed paperwork. YOU are answerable for the money. • When you have a problem, first use common sense and do not be afraid to ask for help. • Ask for advice and take counsel so you can make informed decisions. • Remember, expenses must be allowable, but even if allowed, they may not be desired. Introduction -1 Introduction • Do not be afraid to say no. • When asked for information, be sure to do your research before providing an answer. Additionally, as a Kingdom Exchequer, you will need to: • Manage Branch exchequers, which will include monitoring monthly and quarterly reports, giving counsel and training and help them understand their responsibilities. • Help Branches prepare their Financial Policies for use. They may be more restrictive than Society Financial Policy, but not less restrictive. • File Kingdom reports monthly. • File report and send payment to Society for NMR monthly. • Send copy of cancelled NMR check to NMR deputy. • Help with “forensic accounting” or finding older records so that they may be viewed. The US Internal Revenue Service classifies the Society for Creative Anachronism, Inc. a 501(c)3, a non-profit education organization within the United States. To maintain this status, the IRS requires annual financial reports from 501 class corporations using IRS form 990, due May 15 of each year. WHY IS AN EXCHEQUER NECESSARY? It has been noted that there are some areas of the SCA where there is a difficulty finding and retaining competent exchequers. This office is not only important, it is mandatory. There can be no Branch without a warranted Exchequer, and a Branch cannot maintain its status without the required reports and budgets. The Exchequer office is an honorable position. You are being trusted with the Branch assets, management of their financial stability and records. Being entrusted with the financial wellbeing of your Branch is a big responsibility and know that you, as the Exchequer, will be valued and respected for stepping into this position. If a Branch does not have money, it will not thrive. Branches that do not use their money effectively stagnate. Without a responsible and honorable exchequer, the Branch’s funds are subject to misuse, neglect or possible theft. As Exchequer, you are responsible for the financial decisions of your Branch. You help create and maintain both annual budgets and event budgets. You help provide background information for solid decisions by your Financial Committee. The purpose of your Financial Committee is to share the responsibility for making decisions for your Branch assets. Keeping your Branch out of financial misuse or errors, and following policy and procedures is also an important part of your position as Exchequer. Take the time to read all financial policies (Society, Kingdom, Branch). Review pertinent sections of Corpora and Kingdom law so you have background information. Keep these documents close as you will refer to them constantly. Establish a strong relationship with your Exchequer Superior. If you are the Kingdom Exchequer, establish a strong relationship with all the Branch Exchequers you supervise. Good communication is one of the most important aspects of your position. Rather your communication is one on one, by phone or electronically, make sure you are clear and courteous. Introduction -2 Introduction As Kingdom Exchequer, prepare written guidelines for your Exchequers and help them understand their roles and duties. Spend time with training, which they can pass on to their deputies so that each generation of exchequer receives training. Hold meetings with your branch exchequers at least twice a year to discuss policies and procedures, training and information that will help make their job easier.