Chapter Treasurer Handbook

Transcription

TREASURER
HANDBOOK
A Reference Guide for a Chapter’s Treasurer
TREASURER HANDBOOK
1
Foreword
The contents of this handbook are the result of a compilation of information from various chapters and
various brothers affiliated with The Pi Kappa Alpha Fraternity for the use by any chapter which is
interested in establishing or improving its programming.
It should be understood that each chapter is self-governing and solely responsible for its day-to-day,
week-to-week and month-to-month operation and nothing herein is intended as or should be deemed as
supervision, direction, monitoring, oversight or as an effort to control the local chapter by the Pi Kappa
Alpha Fraternity, which is a fraternal affiliation of over 220 chapters, over 15,000 active undergraduate
members and over 260,000 alumni and several nonprofit corporations, including, but not limited to Pi
Kappa Alpha Corporation, a Tennessee nonprofit corporation which serves as a clearinghouse and an
administrator for purposes of organizing meetings and conventions, publishing fraternal publications and
performing other functions for the entire Fraternity.
This handbook is an educational guideline only which contains suggestions and recommendations
developed by various chapters which were able to develop successful programs. It is published and
available to any chapter through the clearinghouse in Memphis as a form of brotherly advice for whatever
use one wants to make of it.
All ideas herein are optional and nothing is mandatory. Participation is by the voluntary choice of each
chapter and each member with the understanding that one generally gets out of something what one is
willing to put into it. Thus, any language contained herein which could possibly be construed as
“mandatory” such as “do this” or “do that” is only in the form of a recommendation that if one wishes to
get the most benefit out of using the suggestions in the handbook, then the suggestions can be utilized
with the understanding that any handbook is, at most, a guide and that the users should substitute their
own experience and judgment to use, adapt or modify the suggestions and recommendations contained
herein. In other words, the handbook is a guide from which the users can use to establish, improve or
build their own programs, using their own knowledge, common sense, ideas and experience and to assist
the users from time to time as a reference for ideas and suggestions. In turn, each chapter is encouraged
to share good ideas with other chapters by advising the administrative clearinghouse for possible
inclusion in future publications.
The above is intended to provide the chapter with general information and suggestions for improvement. It is not a directive and is not intended to
direct the chapter in any manner. A chapter is not required to use or implement this information or suggestions. The decision on whether or how to use
this information is solely that of the chapter.
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TREASURER HANDBOOK
Contents
Introduction ............................................................................................................................................. 3
The Chapter is a Business .......................................................................................................... 3
Communication ............................................................................................................................. 3
Finance Committee ............................................................................................................................... 3
Structure ........................................................................................................................................ 3
Specific Committee Member Functions .................................................................................... 4
Responsibilities of the Chapter Treasurer ................................................................................... 5
Communication with the Fraternity .......................................................................................... 5
Communication with the Outside Community........................................................................ 5
Communication with the Chapter ............................................................................................. 5
Preparing a Balanced Chapter Operations Budget................................................................... 6
Income ............................................................................................................................................ 6
Administrative Expenses ............................................................................................................. 7
Programming Expenses............................................................................................................... 7
Actual/Year-to-Date Totals ......................................................................................................... 8
Net Profit/Loss............................................................................................................................... 8
Committee Budget Requests ..................................................................................................... 9
Chapter Housing & Kitchen Budgets ............................................................................................ 10
Chapter Housing Budget ........................................................................................................... 10
Accounts Receivable Management ............................................................................................... 11
Membership Agreements .......................................................................................................... 11
Billing Statements ...................................................................................................................... 12
Payment Plan Contract .............................................................................................................. 12
Collection of Delinquent Accounts Receivable ...................................................................... 12
Chapter Policies .................................................................................................................................... 14
Chapter Finance Policy .............................................................................................................. 14
Payment of Expenses ................................................................................................................ 14
IRS Form 990 ........................................................................................................................................ 15
Completing the Form ................................................................................................................. 15
Failure to File Form 990 ............................................................................................................ 15
When & Where to File ................................................................................................................ 16
Additional Assistance ................................................................................................................. 16
Transition ................................................................................................................................................ 17
Duties of the Outgoing Treasurer ........................................................................................... 17
Resources ............................................................................................................................................... 18
Budgeting Tools .......................................................................................................................... 18
Chapter Collections Assistance ................................................................................................ 18
Informational Resources ........................................................................................................... 18
Form 990 Resources .................................................................................................................. 18
Financial Resources/Samples................................................................................................... 18
CHAPTER TREASURER HANDBOOK
THE PI KAPPA ALPHA FR ATERNITY
8347 West Range Cove
Memphis, TN 38125
901-748-1868
Revised August 2015
TREASURER HANDBOOK
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Introduction
The Chapter is a Business
When it comes to finances, the chapter truly is a business. If the chapter utilizes business procedures in
its financial operations it will most likely prosper, for many similarities exist between a chapter and a
private business.
Every business has its investors; the chapter’s investors are its members. From the day a member
pledges, he invests funds in the chapter. The chapter leaders are charged to manage this investment to
the best of their ability.
As the treasurer of your chapter, you serve in a similar position as the chief financial officer of a business.
You sign off on all expenses, and, in turn, you will be held responsible for the financial security of the
chapter. Your decisions, your organizational skills, and your integrity will play a big part in defining
where the chapter will go in the future.
Communication
Communication is the most important component of the financial operations of any chapter. Each
member should be made aware of his financial obligations from the day he pledges the chapter. One of
the first pledge meetings should include a financial orientation.
It is also recommended that financial obligations be thoroughly described in the chapter’s bylaws and the
pledge handbook of the chapter. Excerpts can be read or reviewed regularly at chapter and pledge
meetings. Written acknowledgement of these obligations by each member, possibly in the form of
membership contacts, is strongly encouraged.
Regular reports on the chapter’s financial operations should also be provided to the members. The
important thing is to use as much communication as possible and to be consistent.
Finance Committee
Structure
The finance committee oversees the budgeting process and enforces the financial policies of the chapter.
Most commonly, the committee is composed of the chapter treasurer (who acts as chairman), an
alumnus advisor, assistant treasurers, the past chapter treasurer (if available), as well as the house and
kitchen managers (if applicable).
Chapter Treasurer
(Chairman)
Assistant Treasurer
(Accounts Receivable)
Assistant Treasurer
(Accounts Payable)
Chapter President
House/Kitchen
Manager
Financial Alumnus
Advisor
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TREASURER HANDBOOK
Specific Committee Member Functions

Assistant Treasurer (Accounts Receivable):
- Ensure accuracy of member balances in electronic billing system; enter payments received by
the chapter.
- Ensure accuracy of member statements with billing service account representative.
- Work with members in the formation of any potential payment plans (as an exception and
only when deemed necessary as a result of personal hardships).
- Educate members and new pledges on the financial obligations of membership.

Assistant Treasurer (Accounts Payable):
- Act as signatory on chapter checking account (two of the three authorized signers should sign
every check).
- Assist with creation/maintenance/reporting of the chapter budget.
- Ensure timely payment of all balances due by the chapter.

Chapter President:
- Act as signatory on chapter checking account (two of the three authorized signers should sign
every check).
- Assist in education of members and new pledges regarding the chapter’s financial policies and
procedures.
- Assist the chapter treasurer in enforcing the chapter’s financial policies as necessary in
individual circumstances.

House/Kitchen Manager:
- Serve as housing/kitchen operations liaison to the chapter finance committee.
- Assist the chapter treasurer in enforcing the chapter’s financial policies as they pertain to
housing/ kitchen operations.
TREASURER HANDBOOK
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Responsibilities of the Chapter Treasurer
Communication with the Fraternity
1.
Pay all fees and assessments in accordance with the Fraternity’s Financial Policies in a timely
manner.
2. Work in association with the chapter secretary to report all membership changes, pledgings, and
initiations in accordance with the Fraternity’s Membership Policies.
All payments to the Fraternity should be made online
at http://dashboard.pikes.org or via check payable to
“Pi Kappa Alpha” and mailed to the following address:
The Pi Kappa Alpha Fraternity
ATTN: Accounts Receivable
Memphis, TN 38125
Communication with the Outside Community
1.
Pay all debts to local creditors in a timely manner.
2. File all tax forms required by the government to ensure that the chapter maintains its status as a
non-profit organization.
Communication with the Chapter
1.
In association with the chapter finance committee, prepare a balanced budget for each semester.
 Project income for the semester in addition to all administrative/programming expenses;
 Review detailed budget request forms submitted by each committee chairman;
 Evaluate current dues structure and propose necessary increases (if appropriate);
 Inform committee chairmen of their approved budget for the semester.
2. Collect all moneys owed to the chapter, including:
 All applicable dues from initiates and pledging members, establishing detailed payment
plans when necessary;
 Fines and/or expenses assessed to members.
3. Maintain accurate financial records of the chapter, including:
 Payments from members and their outstanding balance to the chapter;
 Cash transactions and corresponding receipts;
 Receipts for all debts accrued and paid by the chapter.
4. Present weekly/monthly financial report to the chapter including account balances as well as any
upcoming expenses.
 Report delinquent members using appropriate means and resources (chapter judicial
board, Statement of Delinquent Account, collections agency, etc.);
 Ensure all committee chairmen adhere to their allocated budget.
The Fraternity provides many resources to assist you in the performance of
your duties available online at www.pikes.org or by phone at 901-748-1868.
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TREASURER HANDBOOK
Preparing a Balanced Chapter Operations Budget
Creating and maintaining a balanced budget each semester will help to ensure the financial stability of
your chapter for years to come. When creating a budget, it is important to plan for all foreseeable
expenses. Many chapters find it useful to gather receipts and bank statements from previous years to
ensure certain items are not overlooked.
Sample budgets are available online at www.pikes.org.
Income
It is generally a good practice when preparing income estimates for the budget to error on the side of
conservatism, particularly in the area of fundraising. Overestimating the amount of income received over
the course of the term can have disastrous results. It is often useful to query other chapters on campus to
determine the “market” benchmark in establishing an appropriate dues level for the chapter.
A strong recruitment can have an incredible impact on a chapter’s budget. In the example below, one
semester’s recruitment efforts generated additional revenue of $20,000+. The budget shown would be an
example of a 60-man chapter that recruited 30 men and initiated 27 of those men. Successful chapters
often charge a pledging fee to offset costs associated with the temporary membership. Chapters with a
pledging fee traditionally exhibit a higher retention percentage as well.
Income
Member Dues
Initiate Dues
Pledging Fees
Initiation Fees
Fundraising
Other Income
Total Income
Number
60
30
27
Amount
$
$
$
400.00
415.00
290.00
$
$
$
$
$
$
$
Budgeted
44,280.00
24,000.00
12,450.00
7,830.00
44,280.00
In order to prevent a great recruitment class from creating a financial burden on a chapter’s budget,
appropriate pledging and initiation fees should be established and regularly reviewed. Pledging fees
should be sufficient so as to cover expenses associated with pledging as well as a portion of the chapter’s
programming (a good rule of thumb used by chapters is to have pledging fees equivalent to initiate dues
plus the costs of the Garnet & Gold and pledge pin). Likewise, the initiation charged by the chapter
should be sufficient so as to cover the one-time membership fee plus the cost of the initiate badge.
It is strongly recommended that no pledging member be initiated without first paying all
fees due to the chapter. Establishing the precedent of financial responsibility during pledging will
help to create more responsible and committed lifelong members. After examining the projected
expenses for the term, you might find it necessary to revisit the dues structure of the chapter. While
expenses may sometimes be cut in certain areas, often the simple yet unpopular solution to a budgetary
deficit is increasing the membership dues.
TREASURER HANDBOOK
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Administrative Expenses
Each term, there are certain “administrative” expenses that chapters can expect to encounter. These may
include the chapter assessment (as determined at the International Convention), the Liability Protection
Program (LPP) assessment, and costs associated with typical chapter operations. The most successful
chapters in Pi Kappa Alpha also find it useful to set aside funds to assist in sending chapter delegates to
Pike University events. Many examples of administrative expenses are shown below.
Administrative Expenses
Debt Retirement (to ΠΚΑ)
Debt Retirement (to local creditors)
LPP Assessment (due September 1)
Chapter Assessment (due October 1)
Membership Fees (due 5 days prior to initiation)
Garnet & Gold Handbooks
Pledge Pins
Initiate Badges
IFC Dues
Pike University Reserve
phi phi k a Club (to ΠΚΑ Foundation)
Composite
Other Administrative Expenses
Administrative Considerations (on "Summary" tab)
Total Administrative Expenses
Number
Amount
27
30
30
27
90
$
$
$
$
$
280.00
10.00
5.00
10.00
15.00
60
$
20.00
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Budgeted
3,000.00
1,430.00
7,560.00
300.00
150.00
270.00
1,350.00
1,800.00
1,200.00
1,500.00
8,856.00
27,416.00
It is common to budget for savings and uncollected income in addition to other expenses the chapter may
incur. While a collection rate of 100% is an excellent goal, this is rarely a reality. The “Administrative
Considerations” shown under “Administrative Expenses” are an aggregation of the items shown below.
Administrative Considerations
Collection from Delinquent Accounts
Billing Service Finance Charge
Reserve Fund
Accounting Services
A/R Contingency (uncollected income)
Total Administrative Considerations
Budgeted
$
6.50% $
2,878.20
3.50% $
1,549.80
10.00% 10.00% $
$
4,428.00
8,856.00
The budget above allows for an A/R contingency of 10%; this means that the chapter is collecting only
90% of its billed statements. Showing the membership the effect uncollected income has on the budget
can also aid in collection efforts.
Programming Expenses
Programming expenses consist of committee budgets and special chapter programs and are generally
considered the “substance” of chapter operations. These programs are what the campus and outside
community typically associate with fraternity life; as such, it’s great to be able to maximize the financial
resources you put into chapter programming. Following is a sample of a budget for programming
expenses.
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TREASURER HANDBOOK
Programming Expenses
Recruitment
Social
Formal
New Member Education
Alumni Relations
Brotherhood
Public Relations
Scholarship
Athletics
Continuing Education
Executive Council
Historian
Risk Awareness
Campus Involvement
Community Service
Special Events
Homecoming
Other Programming Expense 2
Total Programming Expenses
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Budgeted
2,500.00
6,500.00
2,500.00
1,125.00
850.00
1,200.00
350.00
950.00
800.00
400.00
250.00
785.00
450.00
300.00
500.00
225.00
1,600.00
$
21,285.00
Actual/Year-to-Date Totals
A budget is only as useful as its application. If budgets are created, then ignored, the process is
substantially less valuable. Ideally, as chapter treasurer, you will maintain the updated budget using
actual/year-to-date (YTD) totals. Actual/YTD totals can be a great tool in measuring income and
expenses to date against the total budget.
In the example shown below, you can see that 94.69% of all budgeted income for the semester has been
collected. Uncollected income in excess of budgetary allowances may restrict chapter operations and
force the cancellation of chapter events. Allowing members to see that the mixer with your favorite
sorority had to be cancelled because several members have not paid their dues may help generate added
pressure in ensuring brothers are living up to their financial obligations.
Income
Member Dues
Initiate Dues
Pledging Fees
Initiation Fees
Fundraising
Other Income
Total Income
Number
60
30
27
Amount
$
$
$
400.00
415.00
290.00
$
$
$
$
$
$
$
Budgeted
44,280.00
24,000.00
12,450.00
7,830.00
44,280.00
$
Actual
41,930.00
YTD %
94.69%
$
$
$
41,930.00
94.69%
Net Profit/Loss
As with most financial matters, with a budget there is always a “bottom line.” The goal in creating a
balanced budget is to make certain that the expenses of the chapter do not exceed the income. There is no
need to carry a substantial surplus if you have already budgeted for reserves and have a sufficient A/R
contingency.
TREASURER HANDBOOK
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Committee Budget Requests
When a committee chairman submits a detailed budget request, the chapter finance committee
determines, given the resources available and validity of the event/expenses, whether to grant the entire
request, a portion of it, or deny it entirely. These decisions should complement the goals established by
the chapter at the chapter retreat prior to the beginning of the period for which the budget applies.
The request summary should be broken down into greater detail, itemizing what will be purchased and
when the funds are to be paid out. A timeline aids the chapter finance committee in ensuring that
necessary funds will be available when needed.
A sample committee budget request form is available online at www.pikes.org.
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TREASURER HANDBOOK
Chapter Housing & Kitchen Budgets
When organizing their finances, many chapters follow the analogy of operating three businesses: a social
club, a hotel, and a restaurant. This approach is an effective way to analyze your chapter’s financial
operations. For chapters with a house, the “hotel” portion of operation should be self-sustaining (in other
words, it should be supported from rents, not membership dues). The same is true for chapters that
operate a kitchen. You will likely find the greatest financial stability when each aspect of chapter
operations is maintained with individual budgets (variations of the sample budget available online).
Chapter Housing Budget
In creating the housing budget, just as in operations, you might find it most effective to establish rental
rates and parlor fees based on the expenses of maintaining the house. Best practices dictate that all
tenants be charges market rental rates and “parlor fees” be collected from all members. Just as every
member receives the benefit of the chapter house, so too should each member help shoulder the financial
burden. Parlor fees by each member help offset costs of house maintenance (electricity, heating, etc.).
Lower in-house parlor fees can also serve as a deterrent to members moving out. It is recommended that
chapters have a live-in requirement in their bylaws to help ensure full occupancy.
There are many other common practices employed by chapters that assist in the management of housing
finances. These may include:



Varying rates for single and multiple-occupant rooms,
Requiring a damage deposit of all members (in-house and out-of-house), and
A flat rental rate to the house corporation that does not fluctuate based on occupancy.
Individual tenant contacts are also a common characteristic of Pi Kappa Alpha’s strongest chapters. The
following are examples of items included in a chapter housing budget:
Income
Rent
Room Type 1
Room Type 2
Room Type 3
Parlor Fee
Damage Deposits
In-House
Out-of-House
Other Housing Income
Total Income
Expenses
Rent to House Corporation/Landlord
Damage Deposits
House Improvement Fund
Pest Control
Trash Removal
Utilities
House Maintenance Supplies
Grounds Maintenance
Telephone
Internet
Cable/Satellite Television
Contingency for Variable Expenses
Other Housing Expenses
Administrative Considerations (on "Summary" tab)
Total Expenses
As previously mentioned, it is recommended that the chapter separate its housing and kitchen operations.
If one of these two budgeted areas fails to bring in enough income to sustain its operation, the chapter
should consider the possible termination of its operation. It is not considered good practice to “transfer”
money between accounts. While this may solve the problem in the short term, it can lead to even greater
troubles down the road.
TREASURER HANDBOOK
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The Fraternity’s real estate department can provide additional assistance in the area of housing
and kitchen operations. Email pikehouse@pikes.org or call 901-748-1868 for more information.
Accounts Receivable Management
Pi Kappa Alpha chapters use OmegaFi’s Vault℠ billing and collection services. This service allows
chapters to achieve significantly higher collection rates than they would otherwise. If you have any
questions regarding this service, please call 800-276-6342 or email info@omegafi.com.
Membership Agreements
Membership agreements, describing the responsibilities of the chapter and of individual members
throughout membership, are recommended for each chapter. OmegaFi maintains a record of each
member’s acknowledgment with their financial record.
If a member is a minor, the agreement should be signed by his parent(s) or guardian(s). The advantages
of such an agreement include:
1.
The responsibilities of each party are acknowledged in writing and the member in effect makes a
written commitment to pay his fees.
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TREASURER HANDBOOK
2. Parents or guardians, who provide funds to their son for payment of his fees, will be made aware
of their son’s obligations.
3. This agreement could be legally-binding and used to collect the fee obligations due to payment
delinquency or other breach of the agreement. The provisions in such agreements are fully
governed by each state’s laws. Therefore, if the intention is a legally binding agreement,
OmegaFi’s recommended agreements should be used.
Billing Statements
It is important that billing statements appear as professional as possible; after all, many chapters
maintain an annual budget equivalent to that of a small business. Itemizing the charges allows the
member (or his parents) to see, at a glance, what the
amount billed is being applied toward.
It may be beneficial, instead of simply listing “Initiate
Dues,” to break down the charges and show what the
money is being applied toward.
For instance,
including line items such as the Liability Protection
Program, chapter assessment, IFC dues (if applicable),
Pike University reserve, composite costs, etc. might be
easier for a member to justify paying than a random
amount without explanation.
Careful consideration should be given in determining
where a billing statement will be mailed. Statements
that are mailed to a member’s home address show a
faster turnaround and higher collection percentage
than statements mailed to a member’s school address.
You may consider implementing a policy where any
member that becomes delinquent has future
statements sent to his home address.
OmegaFi’s Vault billing service automatically provides
billing statements for each member sent several times
over the course of the billing term in addition to a
complete record of every member’s financial history
online (www.omegafi.com).
OmegaFi’s account representatives aid in the billing
process and respond to billing questions, forwarding any chapter-specific questions to the chapter
treasurer through the Open Issue Manager.
Payment Plan Contract
A payment plan may be defined as a means either to collect fees in advance or to ensure payment of a past
debt by partial payments. Receiving payments in advance can help the treasurer in terms of cash
management. Every chapter will occasionally experience a member who cannot pay his fees on time
because of circumstances beyond his control. A special payment plan over a period of time could be
developed for such members, but these should be limited and potentially carry some financial expense for
their development.
Collection of Delinquent Accounts Receivable
For a chapter to successfully collect its accounts receivable, the chapter treasurer and finance committee
should ensure membership agreements and social security numbers are on file for all members. OmegaFi
will maintain a record of this information. While such resources will undoubtedly increase the awareness
of members and success of future collection efforts, the following practices may assist with your efforts to
collect delinquent accounts receivable that have been passed down to you:
TREASURER HANDBOOK

Social & Athletic Suspension. A member who is financially delinquent should not be allowed
to participate in activities which he has not financially supported. Chapters have identified this
technique to be extremely successful, especially when a major function such as a formal or date
party is planned.

Fines. Simply stated, if a member does not pay his financial obligation to the chapter by the
prescribed date, a fine or penalty may be imposed.

Reporting. You may report at each chapter meeting a list of members who are financially
delinquent. Mentioning that such delinquency is causing a delay in certain planned activities of
the chapter may generate peer pressure among members who are in good financial standing
towards delinquent members to satisfy their accounts.

Withholding Academic Records & Registration. Several schools will place a “hold” on a
member’s academic account if he is financially delinquent to a student organization. Such
members may not be eligible to receive grades, register for courses, or obtain a copy of their
academic transcript until the chapter notifies the host institution that the member has paid.

Pro-rating. This technique involves dividing any remaining amount of accounts receivable
among the members who have paid. The paid members must pay this additional assessment;
however, they will receive a credit towards their account when all delinquent members have paid.

Statement of Delinquent Account. A chapter may submit a Statement of Delinquent
Account to the Fraternity’s Staff. A certified letter will be mailed to the delinquent member
notifying him of his debt and demanding payment within 30 days. If the delinquent member fails
to respond by sending full payment, he will be expelled from the Fraternity. If a delinquent
member pays his account after he has been expelled, he may be reinstated (if approved by the
chapter). You may add a ten dollar fee to the delinquent account statement to cover the cost
incurred by the chapter for submitting this statement.

Collections Agency. When all other options have been exhausted, you might find it necessary
to send the delinquent member’s account to a collections agency. This is generally a last resort, as
even if the individual does pay the amount in full, the collections agency will withhold a large
portion of that amount as a fee for their services.

Court Action. As a last resort, a chapter may consider legal action against a delinquent member
by processing a lawsuit in small claims court. This process requires that the chapter have
accurate records and documentation of the delinquent account.
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Turning an account over to a collections agency may be one of the most uncomfortable aspects of
your job as chapter treasurer. It is important to remember, however, that it is the delinquent
members that have failed to fulfill their obligations to the chapter, forcing you to these methods.
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TREASURER HANDBOOK
Chapter Policies
Chapter Finance Policy
An outline of the chapter’s policies may be included in the chapter bylaws or as an appendix to the bylaws.
This practice ensures that the policies will be available to all members and their application will be
consistent. The following is an example of a finance policy a chapter might place in its bylaws.
A. Fines. Anyone who does not pay 100% of their required financial obligation by midnight on the
due date or who has not requested and been granted a “special payment plan” pursuant to the
Chapter Bylaws or Membership Agreement may be fined 10% of the delinquent balance, up to a
maximum of one hundred dollars ($100.00), and is immediately suspended. Such members shall
remain on suspension until their debts and fines have been paid in full, or be subject to expulsion.
B. Judicial Board Fines and Reparations. All fines must be paid within fourteen (14) days. If
the fine is not paid within fourteen (14) days, the initial fee will be doubled and action may be
taken to place the individual on suspension.
C. Suspension. Any member suspended due to indebtedness may be prohibited from participating
in any chapter activity, including, but not limited to: Chapter meal services/privileges, Chapter
meetings (including voting privileges), participation in intramurals, attendance at social
functions, wearing or displaying the Fraternity insignia, and otherwise identifying himself as a
member of the Fraternity. Furthermore, any member who attends a social function while on
suspension may be expelled from the Fraternity.
1. Definition: suspension shall hereby be defined as “the denial for a definite period of the
privileges and benefits of membership.”
2. Any member on suspension may have a letter sent to his parents by the chapter treasurer
and/or the alumni advisory board, itemizing all charges. In addition, anyone who
“bounces” a check to the Chapter shall be suspended and fined ten dollars ($10.00) in
addition to all costs associated with the “bounced” check, and is required to pay in cash
for the remainder of the term.
D. Expulsion. The Executive Council shall automatically initiate expulsion proceedings against all
members who have financial obligations which are sixty (60) days past due. Said persons may be
referred to a collection agency or small claims court as well as the International Fraternity. In
order to be reinstated following expulsion due to indebtedness, the procedures outlined in the
Fraternity’s Constitution and Chapter Codes must be followed.
Payment of Expenses
As a part of the responsible disbursement of funds, chapter financial policies should require two
signatures for all checks. This offers some degree of checks and balances when distributing chapter funds.
It may be that a chapter has three officers eligible to sign checks (treasurer, president, and assistant
treasurer), enabling the chapter to authorize a valid disbursement even when one officer is unavailable.
When an officer or committee chairman requests funds, it is common to have the
individual make the approved purchase, and reimburse the officer or chairman upon
presentation of a receipt.
No blank checks should ever be handed out. When this is not possible, the individual may fill out a check
requisition form, detailing the purpose and amount of the request. In such a case, after a check has been
approved and given out, the officer/chairman is expected to present a receipt for the purchase before any
further funds are released. Each request should be compared to the budget and the year-to-date total to
verify funds are available for the desired purchase.
TREASURER HANDBOOK
15
IRS Form 990
Each chapter of the Fraternity must complete the appropriate version of Form 990 each year in order to
maintain its status as a non-profit organization. These forms are available online at the IRS website:
www.irs.gov. Chapter treasurers may want to seek professional assistance in completion of this form.
State laws dictate whether or not a chapter is exempt from state taxes (i.e. sales tax). Whoever completes
the form will have to enter the amount of gross receipts for the fiscal year. Depending on this figure, a
chapter may be eligible to file Form 990-EZ or Form 990-N (ePostcard).
Completing the Form
Name of organization should be _________
Chapter of The Pi Kappa Alpha Fraternity
(include the chapter’s address information)
Check first box and complete
501(c)(7). Do not check other boxes.
MUST begin July 1 and end
June 30 to conform to group
exemption
Enter group exemption number 0355
If you are not aware of your chapter’s
EIN/Tax ID number, contact MHQ to
see if this number is on file
Most chapters should be
on the “Accrual” method
The chapter’s financial records are required in order to complete Parts I through IV. For Part V, list the
names and addresses of any employees and all members who held the office of president, vice president,
treasurer, or secretary for any length of time during the fiscal year.
For any compensation, the chapter must also have complied with federal and state payroll tax laws.
Failure to File Form 990
Each chapter and house corporation of Pi Kappa Alpha is required to file Form 990 annually unless the
chapter’s or corporation’s gross receipts are $25,000 or less. If you do not meet this exemption, and
nevertheless fail to file Form 990 in a timely manner, the IRS may assess a penalty of $10 per day for each
day during which such a failure to file continues, up to a total of $5,000 per return. Additional penalties
may be imposed upon the person responsible for making the filing if the IRS notifies you that you should
file by a certain future date and you still do not do so.
If in good faith, you miss a Form 990 filing date and receive a penalty notice from the IRS, the following
steps may help you to avoid any further complications.
16
TREASURER HANDBOOK
1.
Immediately contact the IRS explaining that you had “reasonable cause” for such a delay or
failure to file, and that therefore the penalty should be waived.
2. The following reasons, if clearly established, will usually be accepted by the IRS:
 The delay or failure to file was caused by death or serious illness of the individual having
sole authority to file the return or a member of his immediate family.
 The delay or failure to file was caused by unavoidable absence of the individual having
sole authority to file the return in question.
 The delinquency was caused by the destruction by fire, other casualty or civil disturbance
of your residence, place of business, or business records.
 You were unable to obtain records necessary to prepare the return, for reasons beyond
your control.
 You mailed the return in time to reach the IRS office, but through no fault of yours, the
return was not delivered within the prescribed time period.
 You did not file the return, after receiving erroneous information from an employee of the
IRS.
 You were unable to file the return on a timely basis because there was little continuity or
understanding of duties due to frequent officer changes.
 You claim ignorance of the law, and you have no prior history of late filing.
 You were incorrectly advised by a tax advisor that filing of the return was not required.
When & Where to File
This form must be filed by the chapter no later than the 15 th of November after the fiscal year ends.
Completed returns should be sent to:
Internal Revenue Service Center
Ogden, UT 84201-0027
Additional Assistance
You may find additional assistance in completing this form on the IRS website or by calling the toll-free
service at 877-829-5500 Monday through Friday.
TREASURER HANDBOOK
17
Transition
A successful transition can make the difference between a twenty-year-old chapter having twenty years of
experience and the same chapter having one-year of experience, twenty times.
Few events will affect the immediate future of the chapter more than the transition from one treasurer to
another. Organization and documentation are key to maintaining continuity to the life of the chapter,
even through those challenging times.
Duties of the Outgoing Treasurer
 The signatures card for all bank accounts should be changed to the new officers. This should be
one of the first things done in the transition process.
 Provide checkbook(s) with reconciled balance(s).
 A final report should be made by the outgoing treasurer to include all transactions up to the time
of transfer of funds and records. Complete a Treasurer Transition Form (available online at
www.pikes.org).
 Pay all Fraternity assessments, dues, and fines prior to end of term.
 Pay all bills to local creditors received prior to end of term.
 List any contracts the chapter has entered into, including payment plans with members.
 Provide ledgers for all income and expenses, including details on payments for each member’s
account.
18
TREASURER HANDBOOK
Resources
Budgeting Tools




Sample Chapter Budget (operations only)
Sample Chapter Budget (operations & house)
Sample Chapter Budget (operations, house & kitchen)
Committee Budget Request Form
Chapter Collections Assistance




OmegaFi Vault Billing & Collection Services (www.omegafi.com)
Statement of Delinquent Account
Sample Payment Plan Contract
Sample Statement of Account
Informational Resources

Description of Fees and Resources
Form 990 Resources


Form 990 Reminder
Internal Revenue Service (www.irs.gov)
Financial Resources/Samples



Sample Financial Policy
Sample Membership Agreement
Transfer of Funds Form
Director of Chapter Services
THE PI KAPPA ALPHA FRATERNITY
Memphis, TN 38125
901-748-1868
pkaserv@pikes.org

Chapter Treasurer Handbook

Transcription

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