Treasurer by keara


									Resources for Council and Affiliate Leaders International Reading Association

The treasurer maintains accurate financial records and executes sound fiscal management of the council. Treasurer's Checklist Target Date
• Renew your membership in the International Reading Association, your state/provincial association, and your local council. • Attend your annual state/provincial leadership workshop. • Become familiar with and explain current fiscal policies to board members. • Compile an updated budget and submit it for adoption by the board after reviewing all requests for money. • Chair the budget committee. • Maintain custody of council funds. • Obtain or update bonding policy. (See Tip Sheet that follows checklist.) • Update bank records to reflect current officers, authorized signatures, and accurate EIN. (See Tip Sheet that follows checklist.) • Collect money due the council. • Maintain accurate, up-to-date records of income and expenditures. • Deposit and disburse funds. • Sign checks, along with another designated council officer. • Attend all board meetings and report on the status of the council treasury, income and expenditures to date with written reports for distribution. _______________

Completion Date

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Treasurer's Checklist (continued) Target Date
• Update all financial records for transfer to the incoming treasurer at the end of the term of office. • Provide financial records for the annual audit. • Complete and return IRS Form 990 as requested. (See Tip Sheet that follows checklist.) • Prepare a budget request for your committee for the following year. • Distribute budget request forms to all incoming officers and chairs for the following year. • Assist the incoming treasurer in developing the proposed budget for the coming year. • Transfer financial records to the incoming treasurer. _______________ _______________ _______________ _______________ _______________ _______________ _______________

Completion Date
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Tips for the Treasurer
Tax Information United States—The International Reading Association is a nonprofit corporation exempt from federal income tax under the Internal Revenue Code Section 501 (c)(3)*, as an association organized and operated exclusively for educational purposes. IRA councils are also exempt from federal income tax as a result of a group exemption obtained by IRA for subordinate organizations affiliated with the Association. Retaining this tax exempt status requires some paperwork from you. Each year the Internal Revenue Service will send to the council Form 990, Return of Organization Exempt from Income Tax, which must be completed and returned by the fifteenth day of the fifth month after the close of your fiscal year. Councils whose gross receipts are less than $25,000 for the year must sign and return the form after checking the appropriate box above part 1 and affixing the preaddressed label to the form. Councils whose gross receipts exceed $25,000 must complete the form as indicated on the directions before signing and returning it. Every tax exempt organization is required to have an Employer Identification Number (EIN) regardless of whether it has any employees. This nine digit number is used in a fashion similar to an individual's social security number. You may also be asked to include the IRA Group Exemption Number (GEN) when using your councils' Employer Identification Number (EIN). Please contact the Council Records Associate at IRA Headquarters (ext. 222) for the GEN, if needed. If your council does not seem to have an Employer Identification Number or if you cannot find it in the council records, check the council's bank account records. Most banks will not allow you to open a tax exempt account without an EIN. If no EIN is recorded on the council's bank account records, please contact the Council Records Associate at IRA Headquarters (ext. 222). The EIN for your council may be on file with IRA, and you should not have more than one EIN assigned to your council. If no EIN exists for your council, the Council Records Associate can assist you in obtaining an Employer Identification Number. *The Internal Revenue Code Section 501 (c)(3) regulates two types of lobbying activities for nonprofit organizations. 1) It prohibits organizations given exempt status from the type of lobbying which would be perceived as affecting the outcome, directly or indirectly, of public elections. Public elections include elections to federal and state government offices as well as state and local school board positions. 2) Lobbying for legislative issues is permitted, however, the Internal Revenue Service imposes limitations on this type of activity. As a general rule, no more than 2% of the total expenses of an organization should be devoted to lobbying activities. The definition of lobbying activities is very broad and open to diverse interpretations. Please consult the Washington office (phone: 202624-8800) of the International Reading Association if you have questions about any proposed legislative lobbying activities for your council. State Taxes—Please note that obtaining exempt status with the federal government does not exempt your council from state taxes. If your state allows tax exemption for education organizations your council must meet the criteria and follow the procedures established by your state. Canadian Councils—Please contact the local Revenue Canada Office if you have questions about your council's tax obligations.

Financial Policies Budget—A budget is a best-guess estimate of the expenses and revenues a council may experience over a period of time. It does not guarantee income or authorize expenditures. It only provides guidance for making financial decisions. Once adopted, the budget should be used as a financial plan. A sample follows. Bookkeeping—Actual income and expenses should be recorded accurately following an accounting method agreed to by the budget committee. The actual figures should be compared to the projected budget to show how well the council is adhering to its financial plan. Records may be kept on a computer using one of several available commercial programs. Or you may choose to develop your own using a spreadsheet program. A computer program will save time in preparing and producing financial reports with a predetermined format. A sample follows. Bonding—Bonding is a form of insurance that protects the organization from financial losses stemming from irregularities in the handling of funds. A surety bond should be obtained for those offices (not individuals) that have responsibility for handling the finances of the council. This includes anyone who cosigns checks by virtue of the office held (e.g., president and treasurer). The bond should be for an amount equal to the previous year's financial activity. Payment Authorization—The council should have a policy outlining the procedures for payment of expenses. The policy should require receipts and submission of a payment authorization form with appropriate signatures acknowledging the expenditure. A budget reference (or code) should accompany the payment request so that the expenditure can be properly recorded in the financial records. A sample follows. Audit and Review of Financial Records—A review of all council financial records should be held each year. This can be done by hiring an accountant or by using a committee of council members who currently do not have financial responsibilities with the council. The financial review should include a comparison of bank records with the council's financial reports. The types of records to review includes bank statements, canceled checks, payment authorization forms, receipts, etc.

ANY Reading Council Proposed Budget for 199X-199Y 199A-9B Previous Budget Income Annual Conference/Programs $12,000.00 $15,430.00 $13,000.00 Bank Account(s) Interest 500.00 395.76 400.00 Fund Raising Project(s) 4,000.00 4,176.45 4,000.00 Membership 3,000.00 3,250.00 3,300.00 Publication Advertisements 500.00 550.00 600.00 Journal Subscriptions 1,500.00 1,550.00 1,700.00 ================================================================== Total Income $21,500.00 $25,352.21 $23,000.00 ================================================================== Expenses Officers (list each separately) Travel Communication Board of Directors' Meetings Facilities Food/Beverage Travel 199A-9B Actual Finances 199X-9Y Proposed Budget

$1,200.00 600.00 500.00 1,300.00 2,700.00

$1,226.97 547.69 500.00 1,298.00 2,739.58 1,218.48 286.39 142.56

$1,250.00 600.00 600.00 1,400.00 2,800.00 1,300.00 300.00 150.00

IRA Coordinator Leadership training 1,200.00 Travel 300.00 Communication 150.00 Committees (list each with projects/programs) Publications Newsletter 1,600.00 Journal 3,000.00 Membership Data management 500.00 Communication 100.00 Promotional items 100.00 Conference/Program Start-up advance 4,000.00

1,625.58 3,092.87 500.00 89.77 95.39 4,000.00

1,700.00 3,100.00 550.00 100.00 100.00 4,300.00

Misc. (Itemize other expenses) 4,250.00 4,179.42 4,750.00 ================================================================== Total Expenses $21,500.00 $21,542.70 $23,000.00 ================================================================== Excess (Deficit) of Income to Expenses Fund Balance $0.00 $20,490.39 $3,809.51 $24,299.90 $0.00 $24,299.90

ANY Reading Council Payment Authorization Form Payable to Address City Travel Destination and purpose of trip Departure date and time Return date and time Mode of travel Transportation costs (allow $.31 per mile for automobile travel) Parking, tolls Lodging Place of lodging Lodging costs: # nights _____ @ $ __________ per night Meals Meal costs: (list each meal separately) Breakfast Lunch Dinner Supplies/Materials State/Province Postal Code

Total Payable Signature Approved by (Signature) Date Date

Budget Amount

Attach original receipts or invoices for all items.

ANY Reading Council Financial Report July 1, 199X to December 31, 199X

Fund Balance as of July 1, 199X


Total income to date* Total expenses to date*

$17,079.74 $13,717.94

Fund Balance as of December 31, 199X Savings Account Checking Account $20,000.00 7,661.70


*Income and expenses appear on the attached Statement of Income, Expenses, and Change in Fund Balance.

ANY Reading Council Statement of Income, Expenses, and Change in Fund Balance July 1, 199X to December 31, 199X Income Budget Year to Date Variance % Used Annual Conference/Programs $13,000.00 $12,136.51 $863.49 93 Bank Account(s) Interest 400.00 158.23 241.77 40 Fund Raising Project(s) 4,000.00 0.00 4,000.00 0 Membership 3,300.00 2,970.00 330.00 90 Publication Advertisements 600.00 475.00 125.00 79 Journal Subscriptions 1,700.00 1,340.00 360.00 79 ================================================================== Total Income $23,000.00 $17,079.74 $5,920.26 74 ================================================================== Expenses Officers (list each separately) Travel $1,250.00 $527.70 $722.30 42 Communication 600.00 392.86 207.14 65 Board of Directors' Meetings Facilities Food/Beverage Travel IRA Coordinator Leadership training Travel Communication Committees (list each with projects/programs) Publications Newsletter Journal Membership Data management Communication Promotional items Conference/Program Start-up advance 600.00 1,400.00 2,800.00 1,300.00 300.00 150.00 300.00 784.34 1,496.58 0.00 149.72 53.72 300.00 615.66 1,303.42 1,300.00 150.28 96.28 50 56 53 0 50 36

1,700.00 3,100.00 550.00 100.00 100.00 4,300.00

1,054.88 1,546.82 300.00 68.13 100.00 4,300.00

645.12 1,553.18 250.00 31.87 0.00 0.00

62 50 55 68 100 100

Misc. (Itemize other expenses) 4,750.00 2,643.19 2,106.81 56 ================================================================== Total Expenses $23,000.00 $13,717.94 $9,282.06 60 ================================================================== Excess (Deficit) of Income to Expenses $0.00 Fund Balance as of July 1, 199X $24,299.90 Fund Balance as of December 31, 199X $3,361.80 $27,661.70

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