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. Budget 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 outlined below. 2. The approved budget will specifically detail anticipated revenues from each revenue source and anticipated expenditures for each of the expenditure accounts of the Association. 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 the reimbursement. 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 reimbursement. 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 accounts. Financial Reporting 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. Gifts Purchases 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. Fraud Policy 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 vendors. 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 include: Bribery Conspiracy Extortion Reporting of Fraud or Corruption: Allegations and concerns about fraudulent or corrupt activity may come from various sources including: Members Officers 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: President Vice President Treasurer Secretary 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 legal requirements. 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.
Pages to are hidden for
"fiscal policy"Please download to view full document