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Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

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Page 1: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Top Strategies To Become A Great Treasurer

What every union treasurer ought to know!

Dean Brown and Rainy Kaplan

Page 2: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Secretary-Treasurer Support Group

Dean Brown Rainy Kaplan

Carla Burger Larry McBrideSteve Campbell Gary MielkeBarb Gilhaus Larry RoopJim Grimes Gina West

Page 3: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Getting the lay of the land

• Introductions• Ice Breaker• Agenda/Goals• Why are you here?• Question cards

Page 4: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Introductions

• Name• Local• How long have you been treasurer?• Have you held any other local or regional

position? • One fun fact about yourself.

Page 5: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Why are you the Treasurer?How many of you were asked to be the treasurer because it was an easy job?

“Just write a couple of checks…”“Attend a meeting a month.”“It’s your turn.”

Page 6: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

What does a local treasurer do?

Answers questions about the budget and finances.

Sets the local’s fiduciary expectations.

Works with district to collect dues.

Pays the bills.Complies with IEA/NEA financial expectation.

Complies with IRS regulations.

Complies with state and federal laws. Reviews vouchers.

Keeps accurate bookkeeping records.

Provides monthly re

ports.

Develop and monitor annual budget.

Arrange for an annual audit of the books.

Transmits dues to IEA.

Work closely with membership chair on roster.

Maintain a calendar to ensure meeting all financial deadlines.

File proper paperwork with State Board of Elections.

Monitor the fees paid to bank.

Protect the local’s money.

Page 7: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Wow! This is too much!

Page 8: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Local Fiduciary

• Every elected officer in your local is a fiduciary. The governing body is also responsible for maintaining proper systems and procedures and being transparent to the membership.

• You are just the point person.

Page 9: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Fiduciary

• An individual in whom another has placed the utmost trust and confidence to manage and protect property or money.

• In most instances, you are responsible to do what “an ordinary person” would do with regards to finances/procedures.

Page 10: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Membership

Keeping accurate membership records is essential to everything you do.

However, in most large locals this is not your job. You must, however, work closely with the membership chair and/or president to ensure accuracy.

Page 11: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

CalendarIt is important to build a calendar for yourself with the deadlines for bill payments and for filing reports.• Budget• Audit• IRS Reporting• Financial reports• Dues payments

Page 12: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Why have a budget?

• Financial Planning• Avert preventable financial disasters• Prevent arguments on how to spend money• Comply with IEA requirements• Reimbursement of mediation/arbitration costs• Member satisfaction

Page 13: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Budgeting• Have a budget committee.• Establish a timetable.• Have a method for identifying members’

needs. • Have a plan for emergency situations.• Have a procedure for adoption of

budget.• A review of local’s financial history

Page 14: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Building a budgetResources for creating a budget:• Financial Procedures for Locals and Regions• Video• IEA website• Spreadsheet template• Your UD/Local office• Other locals/regions

Page 15: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Budgeting

Look at last year’s budget to ensure that you have the money where you need it.

You MUST have $3 per member budgeted in a line item titled “Mediation, Fact-Finding and Arbitration”

Page 16: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Budget handouts

• Budget considerations – mechanics• Sample budget worksheets

Page 17: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Dues collection

• Make sure that your district is collecting and distributing the proper amount of dues.

• Check this regularly (especially if your membership changes)

Page 18: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Dues collection

• Number of pay periods• Total amount of dues (IEA, NEA, Local, FCPE,

IPACE)• Monitor regularly

Page 19: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Dues payment to IEANovember 1 10% of obligationDecember 1 20% of obligationJanuary 1 30% of obligationFebruary 1 40% of obligationMarch 1 50% of obligationApril 1 60% of obligationMay 1 70% of obligationJune 1 80% of obligationJuly 1 90% of obligationAugust 1 100% of obligation

Page 20: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Potential consequences

Late payment of dues can lead to• Penalties (2% per month)• Delegates may not be seated at the RA• IEA scrutiny/audit

Page 21: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Sample IEA bill

Page 22: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

End of year reconciliation

Page 23: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Controls

Transparency is critical!

Protect the TreasurerProtect the Officers

Protect the LocalProtect IEA/NEA

Page 24: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Controls

• Deposits• Bank statements• Bank reconciliation• Vouchers• Governing Board approval• Double check everything

Page 25: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Other controls

• Bank choice• Monitor fees• Checkbook safety• Authorize signers on account annually

Page 26: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Accounting System

• Every dollar that goes in or out of your bank account must be recorded

• Permanent record• Future audits by IRS, etc.

• Internal questions• Financial reporting

• What system do you use: “It depends”

Page 27: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Handouts

• Bank Reconciliation• Sample Bank Reconciliation• Sample voucher

Page 28: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Small group discussion

• What type of system does your local use?• Why?

Page 29: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Financial reports

• Governing body/general membership• Monitors spending• Explains spending to members• Assists in making decisions• Comparison to previous years’ expenses• Strengthens the audit

Page 30: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Financial report

• Cash on hand• Categorization of income and expenses• Actual vs. budgeted spending• Prior year activity• Include all accounts (IPACE, scholarship, etc)

Page 31: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Financial handouts

• Sample Monthly report• Sample year end report

Page 32: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Small group discussion

• Have you heard any horror stories of fraud or theft in an organization?

Page 33: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Fraud

Page 34: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Fraud

• You need to be proactive and have controls in place, even if you are 100% positive that none your current officers are doing anything wrong.

But…what about the next officers?Or the group after that?

Page 35: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Fraud

• If you suspect something is awry…don’t assume the worst. Don’t ignore the signs either.

• Talk to your UD immediately.

Page 36: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Signs of Fraud

• No oversight by governing body• Little/no access to financial records• Excessive dealing with cash• Poor/little documentation• Local behind in IEA dues• Short money• Excessive use of gift cards

Page 37: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

The “do’s”• Do have a 2 signature requirement on all

checks• Do insist on a monthly financial report• Do insist on a voucher/invoice for all checks• Do insist on guidelines for travel expenses• Do talk regularly with Region treasurer • Do have an annual audit• Have bank statement mailed to another

officer

Page 38: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

The “don’ts”

• Don’t write any check to cash• Don’t deduct cash from deposits• Don’t accept excuses• Don’t have a local credit card• Don’t pre-sign checks

Page 39: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Benefits of an Audit1.Help ensure compliance with basic

bookkeeping and filing requirements

2.Help ensure compliance with internal requirements

3.Fraud deterrence/detection4.Credibility with members5. Identification of control deficiencies

Page 40: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Audit

• Internal Committee• Outside CPA

**Remember an audit is not the only control you need!

Page 41: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Audit handouts

• Sample Financial Audit

Page 42: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Small group discussion

• Which type of audit is right for your local?

Page 43: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

RA delegatesHave a written policy on documentation and reimbursement • Overall expectations

• What is covered/not

• Repayment of unspent funds

• Consequences

• Documentation requirements

• Donations to FCPE (NO!)

Region vs. Local funding

Page 44: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan
Page 45: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Policy needs

• Have a policy for travel ahead of time• Must follow IRS guidelines • Alcohol• Tipping• Types of expenses• Maximum meal expenses

Page 46: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

IRS filing• All IEA locals must file ONE of these

forms every year, based on the size of their “average annual gross receipts”

• “Gross receipts”= All $$ collected, EXCEPT for IEA-NEA dues– Over $200,000= Form 990– $50,000 to $200,000= Form 990-EZ– Under $50,000= Form 990-N (“E-

Postcard”)

Page 47: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

IRS

• All but about 30 IEA locals file the E-Postcard• All except about 2 of these have authorized

the IEA to file the E-Postcard for them• The other 30 file the 990 or the 990-EZ• We strongly recommend that if you file the

990 or the 990-EZ, you hire a CPA to do it for you

Page 48: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

IRS

Must report payments to INDIVIDUALS to the IRS, IF:

Over $600 in total for a calendar year For Services: Not for products, supplies

or expense reimbursements

Page 49: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Gift cards

• Gift cards are taxable income. • Keep track of who receives them (name, date,

amount, purpose)

Page 50: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Paying officers

• If you give a stipend or pay dues for officers, negotiations team or others…you may need to fill out a 1099

Page 51: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

IRS Audit

• Random audits• Disgruntled members• Fraud

Page 52: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

IRS Audit

• Call IEA and seek help• You will need lots of documents, but IEA can

help.

Page 53: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

IPACE/FCPE

• IPACE is our state political action fund• FCPE is the Fund for Children and Public

Education – the national political action fund

Very specific rules apply to both these types of funds. Make sure you know how to collect and how to use them.

Page 54: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

IPACE

• IPACE is funded by member contributions• Local Rebate• Your obligations when requesting IPACE funds:– Know the rules regarding use of the funds– Keep them in a separate non-interest bearing bank

account– Understand and comply with State disclosure

requirements

Page 55: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

IPACE discussion

• What does your local use the IPACE funds for?

Page 56: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

IPACE handouts

• Sample IPACE rebate letter• About IPACE

Page 57: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

State political reports

• DO YOU HAVE TO FILE?• One-time threshold: $5,000 spent

in any 12-month period• If you exceed the threshold, you

must register as a PAC immediately and then file quarterly reports forever

Page 58: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

FCPE

There are ways to maximize your local’s contributions to the FCPE for your delegates.

There are forms you can get to increase FCPE contributions within your local.

Page 59: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

FCPE to count for delegates

Create an Excel spreadsheet• All members’ names that contributed with ID

number• All delegates’ names to be credited with the

contribution (with ID numbers)• Date of the pay period

Page 60: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

FCPE for delegates

• Mail the spreadsheet electronically to:[email protected]

• Snail mail the spreadsheet and check to: NEA FCPEPO Box 64702Baltimore, MD 21264-4702c/o Joe Takacs

Page 61: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

FCPE template

Amount Member Name Member ID number

$10.00 John Smith 234567891

$100.00 Jane Smith 345678912

Amount Member Name Member ID number

$110.00 Joe Smith 123456789

Westmont TATransmittal of FCPE$110.00 taken from the June 19, 2015 pay cycle

Please credit it to the following delegate

Page 62: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Scholarships/Charities

• Separate accounts• When does this apply• State registration/reporting requirements• “Gaming” regulations• Deductibility of contributions

Page 63: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Handout

• Financial Procedures FAQ’s

Page 64: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

In closing…

• Do what is right, not just what is expedient.• Be transparent and accessible• Make clear rules and policies and demand that

they are followed.

Page 65: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Resources

• Secretary-Treasurer Support Group• Region• IEA website– Publications– Videos– FAQs– Tips for new Treasurers– NEA information

Page 66: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

IEA website

http://www.ieanea.org/resources/financial-procedures/

Page 67: Top Strategies To Become A Great Treasurer What every union treasurer ought to know! Dean Brown and Rainy Kaplan

Questions?

Feel free to contact either of us:Dean Brown: [email protected]

Rainy Kaplan: [email protected]