NATIONAL FINANCES POLICIESNF-1 SGMP National Budget SGMP National Budget
PURPOSEThe national budget will direct the spending of funds to be properly allocated based on anticipated incoming revenue and a measure guide to control expenses. POLICYThe National Board and SGMP Headquarters must produce an annual budget. The budget will be based upon a 12-month fiscal year, starting July 1 and ending June 30 of the following year. Prior to each fiscal year beginning July 1, the National Treasurer and the Executive Director will develop the budget based on trends, income and expense analysis, and forecasted projections. The annual budget will be posted in the “Members Only” Section of the SGMP website seven business days after final approval by the National Board. The national budget must be approved by vote of the National Board. The yearly due date for submission is June 25. The National Board should approve the budget at the July meeting and be required to have the proposed budget approved no later than July 31. Vendor Lists and Chart of Accounts
PURPOSEFor the proper classification of accounts and vendors. POLICYThe Executive Director may establish new accounts and contracts with vendors for the sole purpose of executing SGMP business. The business transactions are based on the approved operating budget, prior authorization must be obtained from the National Treasurer or the majority of the National Board if not approved in the national budget. SGMP Headquarters is required to keep an up to date vendor’s list on file and utilize the proper chart of accounts in accounting for SGMP’s expenses and income. Accounting Software
PURPOSETo standardize accounting procedures. POLICYSGMP Headquarters will maintain all accounting transactions in Quick Books. The following accounting reports are required to be kept in the Quick books format: AssetsAssets are those items SGMP owns and which have value. Assets can include cash, accounts receivable (amounts owed to the chapter by customers), inventory, furniture, supplies, and equipment, such as a laptop or recorder. LiabilitiesLiabilities are amounts owed by SGMP to others. Liabilities include items payable, accrued national fees, legal fees, tax fees, liens, or debts that are assessed to the chapter. ExpensesExpense is the money SGMP pays for charges, such as meeting expenses, speakers, National Board travel, bank charges, or management fees. IncomeIncome is the money SGMP brings in from its defined revenue streams. Financial Rules
PURPOSETo provide expected guidelines in the allocation and spending of national funds that meet Society guidelines and ethics practices. POLICYThe National Board directs that SGMP Headquarters is required to use an agreed upon standard Chart of Accounts for their daily accounting practices.
Banking
PURPOSETo establish requirements and guidelines for the housing of national funds and procedures for banking transactions. POLICYThe National Board directs the Executive Director to maintain national funds in a local bank insured by the Federal Deposit Insurance Corporation. The National Board directs the Executive Director to maintain a local bank operating account that is in the name of the Society of Government Meeting Professionals. The business address on file with the bank must be the official address of SGMP Headquarters. Access to SGMP’s financial account funds will be restricted to the National Treasurer, National President, Executive Director, and Deputy Director; all are required to be on the bank signature card. The bank signature card must be updated within 7 business days after notification for any reason that will result in a change to the existing bank signature card. Access to SGMP’s financial account records will be restricted to the National Treasurer, National President, Executive Director, Deputy Director and SGMP’s office Accountant. All records may be viewed by any board member upon request. The National Board directs the Executive Director to receive prior approval from the National Treasurer in the event that funds need to be allocated outside of the parameters of the approved annual budget. The National Treasurer may approve funds to be allocated up to $5,000 and is required to communicate all approved funds to the National Board. The National Treasurer will obtain approval from a majority of the National Board for any funds that need to be allocated requiring expenditure over $5,000. National Bank Signature Cards & Investment Portfolios
PURPOSETo provide guidelines for bank signature cards and investment portfolios. POLICYA copy of the signature card or certificates must be kept on file at SGMP Headquarters for each financial institution and or investment portfolio. The bank signature card must always be current and up to date with the proper authorized signatures. All bank signature card changes must be completed no later than seven business days after any change has occurred with the National Board or SGMP Headquarters staff, so that the most current banking information is on file. All electronic access codes must be changed or deleted for departing account signature holders. Bonding
PURPOSETo provide accepted industry standards for the protection of funds. POLICYThe National Board requires SGMP headquarters to purchase and provide bonding insurance for the National Treasurer, National President and all SGMP headquarters staff. The Executive Director will be responsible to ensure that all information is current and up to date with the insurer and on file at SGMP Headquarters to prevent a lapse in SGMP’s insurance coverage. The National Treasurer and National President are the only two National Board members who have access to national funds and assets. SGMP’s insurance plan will not cover non-members. The National President and/or National Treasurer must notify SGMP headquarters within five business days of an employment change and then must rejoin SGMP within 90 days. In this situation, National Presidents and National Treasurers must be immediately removed from all SGMP financial accounts, but will be added back onto those accounts within 90 days upon the reinstatement of their SGMP membership. National Credit/Debit Cards
National Credit/Debit Cards
PURPOSETo provide accepted guidelines for the use of SGMP national credit/debit cards. POLICYCredit/debit cards may be issued to National President, National Treasurer, Executive Director and Deputy Director as listed on the bank signature card. A photocopy of the credit/debit card and government issued identification card of the cardholder must be kept on file at SGMP Headquarters. The National Board directs SGMP Headquarters to review all credit/debit card transactions. The National Treasurer, Executive Director, and SGMP Accountant will view credit/debit card accounts online at least once per month to review the activity of the account. The National Treasurer will review all the credit/debit card statements quarterly with the required receipt backup for transactions. If there are any questionable charges, the National Treasurer and Executive Director have the fiduciary responsibility to follow up on the validity of the charge and its approval. The following guidelines will apply for the credit/debit card holders:
Improper or negligent use of the SGMP credit/debit card will be immediately reported to the National Treasurer. Misuse or misappropriation of SGMP funds via the credit/debit cards will result in the National Treasurer suspending the privileges of the card holder. The National Treasurer will notify the National President and the Executive Director in writing that the credit/debit card holder’s privileges have been suspended or revoked. Improper or negligent use of the SGMP credit/debit card by the National Treasurer will be immediately reported to the National President who will have the authority to suspend the National Treasurers card privileges. Further action may be taken by the National Board including, but not limited to, the possible loss of SGMP employment, board position, membership, and/or legal action. Changing Access to Financial Accounts
PURPOSETo ensure that the National Board and SGMP Headquarters address the transition of financial matters in a timely manner. POLICYWhenever a change occurs with the National Board or the Executive Director, SGMP Headquarters and the National Board will have 5 business days to change all financial accounts, passwords and PIN numbers. The National Board may provide the new information temporarily to the Deputy Director or an Interim Executive Director. The outgoing National Treasurer or the Executive Director must hand over the debit and credit cards linked to the SGMP’s accounts, and said debit and credit cards should be destroyed in the presence of the previous cardholder. The outgoing National Board member or Executive Director must hand over the credit cards linked to the SGMP’s accounts, and said debit and credit cards should be destroyed in the presence of the previous cardholder. Should a change occur with the Executive Director, the Executive Director must immediately relinquish all SGMP properties and the aforementioned items to the National Board or its designated representative, including but not limited to, all pertinent financial information. National Treasurer Responsibilities
PURPOSETo clearly state the fiduciary responsibilities of the National Treasurer. POLICYThe National Treasurer is charged with the responsibility of ensuring that the management of all SGMP bank accounts and assets are handled in accordance to SGMP bylaws and policies and procedures. The National Treasurer may review all account transactions that take place in order to adhere to the performance of his or her duties and fiduciary responsibilities. The National Treasurer will be responsible for reviewing a monthly detailed P&L statement and Asset Report furnished by SGMP Headquarters. After review, the National Treasurer will direct SGMP Headquarters to post the report on SGMP’s National Board webpage. SGMP Headquarters will furnish all financial reports to the National Treasurer by the 10th of every month and post on SGMP’s National Board webpage by the 15th of every month. The National Treasurer will perform a quarterly review of all financial documents at SGMP Headquarters. SGMP’s financial records will be reviewed with the Executive Director. The National Treasurer and Executive Director are responsible to ensure that SGMP finances are in order and in line with the annual budget, ensuring that income and expenses are on pace with the annual budget estimates. SGMP Headquarters is obligated to strictly follow all of SGMP’s policies and procedures with regard to record retention, financial reporting, bank account management, and asset management and to share with the National Treasurer how these standards are executed. The National Treasurer must ensure the society’s financial policies and procedures are being followed in order to maintain accurate and accountable records to operate under the obligations as set forth by the IRS and to ensure SGMP’s nonprofit status remains in good standing. The National Treasurer has the fiduciary responsibility to direct SGMP Headquarters to take action in the event that the National or Chapter financial policies and procedures are being violated or disregarded. SGMP Headquarters must notify the National Treasurer as soon as possible, if violations are occurring. Accounting Procedures
PURPOSETo provide expected guidelines on keeping financial records for SGMP. POLICYThe Executive Director and SGMP Headquarters must maintain accurate records of SGMP’s income and expenses on a monthly basis. Accurate records for all of SGMP’s income and expense transactions must be kept in an orderly fashion and must be reconciled with the bank statements each month. All transactions must be accounted for by the SGMP Office Accountant. All income and expense transactions on SGMP’s bank statements must be accounted for and accompanied by a receipt, deposit slip, or cancelled check. The Executive Director will insure the proper maintenance of all transactions, to include all cash transactions, deposits, expenses, asset information, and copies of all contracts for SGMP. Receipts
PURPOSETo maintain due diligence in the practice of providing receipts for SGMP expenses. POLICYThe Executive Director must ensure that all expenses are accompanied by receipts. All SGMP members receiving SGMP funds for reimbursement or services must provide receipts to the SGMP Headquarters attached to the official SGMP expense reimbursement form. Receipts must accompany all expense disbursements from SGMP financial accounts without exception. Receipts and expense reports are required to be submitted to SGMP Headquarters no later than 30 days after the expense occurs. The National Treasurer may approve payment for expenses after 30 days if there are extenuating circumstances that prohibited the expense submission from occurring by deadline. Otherwise, the expense will not be paid. Deposits
PURPOSETo establish the required guidelines for the documentation of bank deposits. POLICYDeposit slips or ATM receipts are required to support all deposit transactions in SGMP’s financial accounts. Electronic Deposits by credit card companies such as American Express, Visa/MC and government EFT’s must be reconciled monthly with the expected charge or closing batch. Checks received at SGMP Headquarters must be deposited within 48 business hours. Tracking Chapter Cash Transactions
PURPOSETo establish the prohibition of cash transactions and define the only two exceptions to this policy. POLICYAll SGMP business transactions should be by check or credit card. In the course of business there is a need for limited petty cash acceptance; it will be for the following functions:
A written receipt is given with a carbon copy kept in the cash receipt book that is turned over to the SGMP Office Accountant and verified. Cash funds should be deposited with 24 hours on any bank business day or stored in a lock box in a hotel safe during the national conference. Written documentation of the amount of money in the lock box must be verified and signed off on by two staff members each time a staff member takes possession of or relinquishes the lock box to/from the hotel. Check Writing Policy
PURPOSETo establish the required guidelines for the documentation of the writing and issuance of checks. This policy is based upon the Sarbanes-Oxley Act legislation of the United States Congress. POLICYAll SGMP checks must have the appropriate accompanying documentation provided in the vendor file. Accompanying documentation includes, but is not limited to, invoices, banquet event order forms, bills, receipts, and official SGMP reimbursement forms with proper documentation. The National Board directs SGMP Headquarters to strictly forbid the Executive Director, Deputy Director, National Treasurer, or National President to write themselves reimbursement checks or to directly withdraw national funds via a debit card or credit card for the reimbursement of SGMP expenses. All SGMP checks should be void after 90 days. National Audits
PURPOSETo establish the required guidelines for independent audits of national funds. POLICYSGMP bylaws require annual audits of the society’s finances. An independent audit will be contracted to review SGMP’s financial procedures by SGMP Headquarters. The independent auditor will provide the audit report to the National Treasurer and National President who will discuss the findings with the National Board. The National Board will share the written report with the Executive Director. The independent auditor should discuss in the written report any deficiencies or suggestions for improvements and distinguish areas of high marks. The National Board directs SGMP Headquarters to change the audit firm every three years to ensure impartiality by the firm conducting the audit. Reporting
PURPOSEUsing the Sarbanes-Oxley Act passed by the U.S. Congress for guidance, the National Board has determined that our nonprofit organization should have a written, mandatory document retention and periodic destruction policy. Such a policy will also help limit accidental or innocent document destruction. The National Board requires SGMP Headquarters to maintain written document retention of all financial transactions; these documents will be housed at SGMP Headquarters. The following policies and procedures cover document retention, back-up retention procedures, archiving of documents, and regular check-ups of the reliability of the system. The National Board must be advised immediately if an official investigation is necessary or underway, or even suspected to be underway, so that the National Board may officially direct SGMP Headquarters to stop any document purging in order to avoid criminal obstruction charges. POLICYThe National Board requires the Executive Director and SGMP Headquarters, in accordance with their contracted duties, to properly and accurately account for all financial transactions made by the national organization. The Executive Director and SGMP Headquarters, in accordance with their contracted duties, are responsible to insure the balancing of SGMP’s checking accounts each month, reconciling any discrepancies, and providing a detailed financial accounting to the National Treasurer and the National Board. The National Treasurer, in conjunction with the National Board, has the ultimate fiduciary responsibility for reviewing and approving the financial reports provided by the Executive Director and SGMP Headquarters. SGMP’s monthly bank statements and debit card statements should be reconciled immediately when they are received. If errors are found, they must be investigated and reconciled before submission of the month-end financial report. The Executive Director must submit the month-end reports to the National Treasurer for review and approval by the 10th of every month and to the National Board by the 15th of every month. The National Board will require SGMP Headquarters to record all financial information on the official SGMP accounting forms and software. After the information on revenue, expenses, assets and liabilities equity has been collected, this information must be recorded into the SGMP standard accounting forms and software. Review of Month End Financial Reports
PURPOSETo establish the required guidelines for the review of SGMP’s financial health. POLICYThe National Treasurer and Executive Director should review the financial accounting process quarterly. The National Treasurer has the responsibility to report back to the National Board with any recommendations that may arise from the quarterly review. Balance Sheet – MonthlyThe Balance Sheet shows the financial position of SGMP by comparing the Society’s assets and liabilities. Profit and Loss Statement and Pace report – MonthlyThe Profit and Loss Statement shows SGMPs income and expenses for the month. The Pace Report show the income and expenses listed with a percentage column, so the National Treasurer and Executive Director may analyze SGMP’s income and expenses to determine future spending, asset allocation, and provide recommendations to the National Board. This will help the National Treasurer and the National Board ensure that spending is in line with the approved annual budget. Accounts Receivable Sheet – QuarterlyThe National Treasurer and Board should review SGMP’s accounts receivables to ensure proper and timely payment from members and vendors. The form should detail which members and vendors owe SGMP money and how long these amounts have been unpaid. The National Board directs SGMP Headquarters to actively pursue any accounts receivable to ensure SGMP collects all outstanding monies due. The goal of SGMP Headquarters should be to have no outstanding accounts receivable on the books for longer than 30 days. During review of all the financial reports, it is important for the National Treasurer and Executive Director to analyze and assess the financial status of SGMP’s operating budget and report to the National Board.
IRS Tax Reporting
PURPOSETo establish the required guidelines in reporting IRS 990, 990EZ and 990N forms for nonprofit tax purposes. POLICYThe National Board directs the Executive Director to submit a year-end financial report 15 business days after July 1. This year-end report will be used to prepare the IRS 990 form which must be filed before November 15. The Executive Director has responsibility of filing SGMP taxes in according with IRS tax laws. The Executive Director is solely responsible and contractually obligated to accurately file SGMP’s taxes and represent SGMP in all tax issues. All completed returns are kept on file at SGMP Headquarters with the Public Disclosure copy which is available to any member or the general public. Savings, CDs, and Assets
PURPOSETo establish guidelines for the opening/closing and operation of all financial accounts of the national organization. POLICYThe Executive Director will execute all bank account openings and closings, transfer of funds, new CDs, increases or decreases in the long term or short investment portfolio, only with the expressed permission of a majority of the National Board. The Executive Director is only obligated to execute the aforementioned transactions after receiving a confirmation letter or email from the National Treasurer verifying the National Board’s approval of the transaction. In the event that the National Treasurer is unavailable, the National Secretary may also provide verification via the approved minutes from the National Board meeting electronic vote or conference call. The Executive Director has the responsibility to notify the National Treasurer of any problems or emergencies with any of SGMP’s financial accounts or investments that require the National Board’s immediate attention. Returned Checks
PURPOSEThis policy covers the fee assessed for returned checks. POLICYSGMP Headquarters will assess a fee of $40 for any returned check. Refund Requests
PURPOSEThis policy covers the required process for requesting a refund for fees associated with all SGMP business. POLICYAny member seeking a refund for fees paid to SGMP in conducting official business must make that request in writing on company/agency letterhead, if the refund check is to be made out to the company or agency. Personal refund request for fees paid may be made via email and addressed to the current SGMP accountant. A refund request will only be considered if this procedure has been followed. A request does not guarantee the refund will be approved. The request will be reviewed by the Executive Director & CEO, who will determine, based on merit, written refund guidelines & deadlines placed in registration statements, highly unusual circumstances, timeliness of request, and if alternate options were considered. The individual requesting a refund amount will receive a written communication from the Executive Director & CEO, after the review with the determination. Allowable Variances in Actual Spending vs. Budgeted Amounts
PURPOSEThe SGMP annual budget is an estimate of income and expenses and the map for the spending of approved funds. These guidelines are for National Board members and headquarters staff to execute the approved annual fiscal year budgeted amounts. POLICYThe National Treasurer may authorize up to $5,000 in expenses over a line-item budget (the National President may approve this in the absence of the National Treasurer). Any line-item expense over budget shall require a written explanation and shall be presented to the full board for review of the circumstances that caused the increase in the forecasted expense. Amounts over $5,000 will require the National Board to review and, by majority vote, may do the following:
*If the expense was made by a staff member and was unauthorized by the Executive Director & CEO, the Executive Director & CEO shall take timely and appropriate action, up to and including termination. Headquarters Payroll Adjustments
PURPOSETo document the SGMP headquarters rules for processing staff payroll and adjusting staff salaries and bonuses. POLICYAll full-time SGMP employees are salaried and should receive 26 equal paychecks per year. At least two headquarters employees (staff accountant and Executive Director & CEO and/or Deputy Director) must have authority at all times to access all information in headquarters' payroll vendor's account. Written and direct authorization from the National Treasurer (or National President in the event the National Treasurer is unable/unavailable) is required in order to implement any salary change or bonus for the Executive Director & CEO. Written and direct authorization from the National Treasurer is required in order to implement any salary change or bonus for any other staff member that would result in exceeding the annual pre-approved headquarters salary and/or annual pre-approved headquarters bonus pools. The National Treasurer must be cc'd on all communications involving edits to the staff payroll and or bonuses. No exceptions. Financial Alert
PURPOSETo establish the SGMP headquarters process for providing immediate and appropriate attention to possible financial mismanagement or financial fraud by SGMP representatives at the national, chapter or headquarters levels. POLICYThe SGMP staff accountant has first and regular access to the financial documents related to SGMP national and all SGMP chapters. When and if that staff person discovers or is made aware of a possible financial mismanagement or financial fraud situation that merits further review, the following steps are to be taken:
Reserve Policy
PURPOSETo explain the importance of financial reserves and provide guidelines for maintaining adequate SGMP reserves. POLICYDefinition of ReservesReserves are defined as the accumulated net surpluses of SGMP, i.e., the unrestricted net assets as reported on the Statement of Financial Position. The primary purpose of the reserves is to ensure that SGMP has adequate funds available in the event of an unanticipated catastrophic event or business situation that reduces reserves and threatens the financial viability of SGMP. A secondary purpose of the reserves is to support special projects in the event a single or multiple strategic initiatives should surface outside of the annual budgeting process. This means that should a strategic initiative surface during the course of the year, a board member may make a motion to the full National Board to fund such an initiative. An initiative is defined as a chance for SGMP to invest in an action that will benefit SGMP and its members. Funding RequirementsThe annual budget may include an annual contribution to reserves as approved or recommended by the National Treasurer and approved by the National Board. SGMP shall have a goal of maintaining reserves of an appropriate percentage amount depending on its current budget situation. The budgeted target contribution to reserves may be a percentage of the budgeted net income. If the National Treasurer sees reserves falling below a recommended amount, the National Board may direct the Executive Director & CEO to put a cap on any new-project funding or special initiative funding through the reserves. Also, this occurrence would trigger a process through which the National Board would recommend necessary and sufficient corrective actions to pursue a recovery plan to rebuild the reserves. Investment Policy
PURPOSEThis policy sets forth a clear understanding of the guidelines and objectives for the investment of the Society of Government Meeting Professional’s (SGMP) liquid funds. It also provides the Executive Director & CEO with an understanding of the guidelines, limitations, and direction that the Board of Directors feel are most appropriate. This policy cannot and shall not dictate as to a regular investment schedule however it can outline contributions or withdrawals to be made based on certain circumstances. POLICYThe SGMP National Treasurer will provide an investment status report to the National Board of Directors at each National Board meeting with any recommended changes. The National Board of Directors will establish and approval all investment policies for SGMP. In the instance where the SGMP regular checking account at Fiscal Year End is greater than it was on Fiscal Year Day One by 10% or more, a contribution equal to that surplus should be made to the existing mutual fund account. In the instance where the SGMP regular checking account at Fiscal Year End is greater than it was on Fiscal Year Day One by less than 10%, the National Treasurer may recommend a contribution equal to that surplus be instead made to the SGMP savings account or that no contributions be made at all. In the instance where the SGMP regular checking account at Fiscal Year End is less that it was on Fiscal Year Day One, no contributions to investments should be made. Checking balances will be reviewed quarterly in order to adequately prepare for any action. |