Statement of Purpose Fiscal Responsibility
It is the responsibility of local leadership, through the office of the Treasurer, to be the financial
guardians of local funds and to exercise all appropriate fiduciary duties.
1. A preliminary budget must be presented and approved annually to the Executive
Committee during its August meeting. The adopted annual budget shall be considered
as approval for the expenditure of local funds in accordance with the requirements
2. The approved budget will specifically detail anticipated revenues from each revenue
source and anticipated expenditures for each of the expenditure accounts of the
3. All budget and financial transactions of the Association will be properly accounted for in
an accounting software or voucher format as approved and deemed acceptable by the
Executive Committee. Expense vouchers for reimbursement are attached.
Member Travel Expenses
1. The Executive Committee will approve reimbursement amounts for any Region, PSEA,
NEA or other organization events which require travel and/or lodging. This will include
lodging and meal allowance limits. Prior approval is required for all expenditures for
travel, lodging, and related event expenses.
2. Meals: The expense for three meals per day is limited to the prevailing PSEA rate,
including tax and tip. A receipt must accompany individual meal vouchers. If a meal is
provided for the member, this must be counted as part of the prevailing PSEA rate per
day meal reimbursement. For example, if a breakfast and/or lunch are provided, you
can no longer voucher breakfast and/or lunch for that day.
3. Lodging: Charges shall be directly paid to the facility or reimbursed to the member
traveler. If the member shares a room with a family member or friend, the member will
pay the difference between the single and double room rate. If member approved for
shared double room rate and requests single, member will pay the difference between
double and single room rate. Lodging receipts are required for reimbursement.
4. Mileage: If you drive by car, travel expense is computed at the allowable IRS rate.
Mileage is payable to only one of the two or more members traveling on the same trip
in the same vehicle.
5. Miscellaneous: Parking and toll receipts are required for reimbursements. Tips may be
included on voucher. Up to $1.00 per bag and $3.00 per night for tips and housekeeping
services are allowed.
Members are expected to submit a completed travel voucher for reimbursement within
90 days of travel completion. If funds are requested after 90 days of travel, the
President and Treasurer will make the final decision if funds may be reimbursed.
Payment of Bills
1. All monies paid out by the Association will be by check and must include the
necessary receipts or documentation to support the expenditure.
2. Authorized check signers may include the President, Vice President, Secretary or
Treasurer. Checks may not be written out to cash and blank checks must not be
signed. Checks must be signed by two authorized check signers.
3. Requests for reimbursement for approved expenditure other than for travel must
include submission of Expense Voucher and all receipts or documentation to support
4. Any item over $500.00 needs Executive Committee pre-approval for payment unless
specifically designated when the budget was adopted.
5. If one or more officers oppose payment of any bill, this item must be brought before
Executive Committee for consideration. If the majority of those present approve the
bill, it will be paid. If the majority of those present disapprove the bill, the original
person who incurred the bill must pay for it.
6. In the event that a required receipt is lost or unavailable, the member may submit a
completed and signed Missing Receipt Affidavit (attached) in its place to receive
7. Officers may not approve payments to themselves.
Investment of Funds
The Treasurer has the responsibility to invest surplus funds of the Association in savings
A report in writing must be presented by the Treasurer at each Executive Committee
and Representative Council meeting. The report must include balance of cash and
investments at beginning and end of reporting period as well as debits and credits
incurred during the period.
Annual Audit of Association’s Financial Records
The Association’s Executive Committee or Treasurer must designate an Audit
Committee to conduct an annual audit of the Associations’ financial records. The Audit
Committee should annually present a report to the Representative Council outlining the
findings of the audit.
Payment of Stipends
1. The Association shall annually consider the approval of payment of stipends and/or
payment of dues for the following Association members: President, Vice-President,
Secretary, Treasurer and Negotiation Chair or other officers, chairs or members as
approved by the Representative Council. The Executive Committee shall approve or
reject payment of each stipend annually.
2. Any approved stipend shall be paid in two equal installments in June and December
of each year.
3. An individual receiving a stipend in excess of $600 in a calendar year must submit an
IRS W-9 Form prior to release of payment. The local association will issue an IRS
Form W-2 or Form 1099-Misc to any individual receiving a stipend and/or other
payments of $600 or more, in total in a calendar year. Note: Reimbursement of
expenses and or mileage is not included in the determination of the $600 threshold.
Guidelines for Memorials
In the case of the death of a member, retired member, spouse, child, or parent of a
member, the Association may send a gift of flowers or donation to a favorite or
specified charity in that person’s name.
1. Payments for gifts must be approved by the Executive Committee and documented
with the original receipt.
2. IRS regulations mandate that gift cards, cash, and checks in any amount are always
considered taxable income to the recipient.
Filing Annual Tax Returns
1. The Treasurer shall be responsible for maintaining records and accurately reporting
financial activity to the IRS.
2. The Treasurer will ensure the timely filing of the IRS Form 990-N, IRS Form 990-EZ or
IRS Form 990 within 4 ½ months after the end of the fiscal year.
3. The Treasurer will maintain copies of the IRS Form 990 submissions in the
Association’s records and make a copy available for public disclosure upon request
of a member as required by IRS regulations.
Annual Training for Treasurer and Membership Chair
The Treasurer and Membership Chair shall attend a PSEA sponsored workshop prior to
or shortly after assuming their positions. Whenever possible, the outgoing Treasurer
and Membership Chair shall work with the incoming Treasurer and Membership Chair to
ensure a smooth and timely transition. Incumbent Treasurer and Membership Chairs
shall attend training sessions on a periodic basis (at least once every two years) to
remain current on any changes.
Loans to Officers and Members
Loans to officers and members of the union are strictly prohibited.
Allegheny Intermediate Unit Education Association recognizes the importance of protecting the
organization, its operations, and its assets against financial risk, operational breaches, and
unethical activities. Therefore, it is incumbent upon the AIUEA’s Executive Committee to
institute and clearly communicate the fraud prevention policy to officers, members, and
AIUEA will have a zero tolerance policy regarding fraud and corruption. All matters raised by
any source will be taken seriously and properly investigated.
This policy covers all AIUEA officers, members, and vendors.
Fraud is defined as an intentional deception, misappropriation of resources, or the
manipulation of data to the advantage or disadvantage of a person or an entity. Some
examples of fraud include:
Falsification of expenses or invoices
Theft of cash or other assets
Alteration or falsification of records
Failure to account for monies collected
Knowingly providing false information on requests for funding
Corruption is defined as the offering, giving, soliciting, or accepting an inducement or reward
that may improperly influence the action of a person or entity. Some examples of corruption
Reporting of Fraud or Corruption: Allegations and concerns about fraudulent or corrupt activity
may come from various sources including:
Results of internal reviews
Any other interested parties
All officers have a duty to report any concern they have or information provided to them about
the possible fraudulent or corrupt activity of any officer, vendor, or other party with any
connection to the AIUEA. Any person who has a reasonable basis for believing fraudulent or
corrupt acts have occurred has a responsibility to report the suspected act immediately.
Concerns should be reported to any of the following:
Retaliation and retribution will not be tolerated against any person who reports suspected
fraudulent or corrupt activities. However, if the person is determined to have acted maliciously
or with deceit, that person will be subject to disciplinary action.
All reports will be taken seriously and will be investigated by the Executive Committee who may
also consult with the UniServ Representative. If deemed necessary, AIUEA will notify and fully
cooperate with the appropriate law enforcement agency. Any investigation resulting in a
finding of fraud or corruption will be referred to the Executive Committee for action.
Deterring Fraud and Corruption: AIUEA has established internal controls, policies and
procedures in an effort to deter, prevent, and detect fraud and corruption.
Corrective Action: Final determination regarding action against a member, officer or other
person found to have committed fraud or corruption will be made by the Executive Committee.
Offenders at all levels of the Association will be treated equally regardless of their position or
years of service with the Association. Determinations will be made based on a finding of facts
in each case, actual or potential damage to the Association, cooperation by the offender, and
Depending upon the seriousness of the offense and the facts and circumstances of each
individual case, action can range from a reprimand and/or removal from office to legal action-
either civil or criminal. In all cases involving monetary losses, the Association will actively
pursue recovery of losses.