Chapter Financial Management: Best Practices

Chapter Financial Management: Best Practices

Chris Hallam

Province Delta Archon

hallam.13@osu.edu

What makes the Eminent Treasurer role so difficult? It’s just $$$ right?

1) Managing collective funds where everyone has a say in “their money”

2) Difficulty in holding brothers accountable

3) Lack of training in everyday financial management

4) Every fraternity have different business plans

“Baby I Got Your Money”Data on SAE Financial Management

80% are aware of 990’s but only 40% have completed them

63% report trouble with brother’s paying dues

One chapter reported 30 out of 55 brothers being unpaid

Recruitment and Social tied as largest budgets*

69% Have a debit card

34% Require two signatures

85% Have a budget, 3 do not

Only 23% have the chapter vote on a budget

Only 56% provide an expense report to the chapter

1)Debit Cards

2)Lack of Audits

3)Not reconciling to your bank statement

Financial Dangers

Ability to Present Budget to Actuals WEEKLY to chapter

Semester/Quarterly Audits

Excel or Quickbook tracking of deposits, expenses, budgets, check #’s, dates…AND KEEP IT SIMPLE

2 Signatures to Minimize Fraud!

Semester/ Quarterly % analysis of spending

“We’re in the Money”Best Quality Practices

Budget for SAE and University First

IFC Dues

Risk Management Fee

Pledge and Initiation Fees

Province Dues

Leadership School

Convention

Membership Services

Membership Services

Membership Services

Membership Services

Membership Services

Membership Services

Membership Services

Membership Services

But wait…What is a good way to budget and how do I keep

track of a budget?

Wait what is this 990 form?

• Yes you have to do it yearly

• It is simply a reporting mechanism

• Most chapters & House Corporations operate on fiscal year July-June 30

• Chapter have been fined upwards of $14,000 for failing to file

• FIRST TIME FILER!!

• http://www.irs.gov/pub/irs-pdf/i990ez.pdf• http://www.ehow.com/how_7797682_file-irs-

form-990.html• http://www.nonprofithub.org/featured/the-

form-990-know-how-your-stress-free-filing-guide/

• http://www.irs.gov/pub/irs-pdf/f990ez.pdf• http://www.npccny.org/

Form_990/990.htm#no4

Helpful Websites

How do I get brothers to pay dues

FAQ

Problem # 1: You are probably enabling them to not payProblem # 2: The first time you don’t stick to your word you have a mountain to climbProblem #3: Forgiveness of expenses in order to start fresh

Solution # 1: Read off in chapter who is unpaid and make it clear that they have no vote and cannot attend any organized activity until they are paidSolution # 2: Cancel events until brothers paySolution #3: Remove them from positions if they have anySolution #4: Turn them over to collections if you are able

What Every Treasurer Should Know!

FAQ

“Collections is a necessary part of the position-find support”

“How to create a budget”

“Amount Collected + Starting Balance – Checks Cashed + Checks Uncashed=bank statement.”

“ Fill out the 990 form” -FIRST TIME FILER

“ What is your job [treasurer] and what is the House Corporation’s job”

“The time this position takes is 5-20 hours a week if you have a lack of organization and accountability”

“This job only takes 1-2 hours of week if you are firm on collections and reconcile weekly”

‘Pick up a phone when dealing with your brothers not e-mail”

What I Wish I Had Known

FAQ

“Don’t Collect Cash”

“Create and end of the year report on tips, bank account information, how to do certain tasks”

“Know your Bill Highway/OmegaFi/F&H backwards and forwards”

“ Do a per Semester/Quarter budget”

“ Know how a budget works”

“They swore on an oath to pay, enforce it”

Chapter Financial Management: Best Practices

QUESTIONS

Chris Hallam

Province Delta Archon

hallam.13@osu.edu