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 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 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*

Financial Dangers • Debit Cards • Lack of Audits • Not reconciling to your bank statement

“We’re in the Money”Best Quality Practices Ability to Present Budget to Actuals WEEKLY to chapter 2 Signatures to Minimize Fraud! Semester/Quarterly Audits Semester/ Quarterly % analysis of spending Excel or Quickbook tracking of deposits, expenses, budgets, check #’s, dates…AND KEEP IT SIMPLE

Budget for SAE and University First IFC Dues Risk Management Fee Pledge and Initiation Fees Province Dues Leadership School Convention

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!!

Helpful Websites • 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

FAQ How do I get brothers to pay dues Problem # 1: You are probably enabling them to not pay Problem # 2: The first time you don’t stick to your word you have a mountain to climb Problem #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 paid Solution # 2: Cancel events until brothers pay Solution #3: Remove them from positions if they have any Solution #4: Turn them over to collections if you are able

FAQ What Every Treasurer Should Know! “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”

FAQ What I Wish I Had Known “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 PracticesQUESTIONS Chris Hallam Province Delta Archon hallam.13@osu.edu

Chapter Financial Management: Best Practices