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Charm City Pearls Interest Group

Alpha Kappa Alpha Sorority, Inc.

 FINANCIAL PROCEDURES

 

  TABLE OF CONTENTS

Introduction

Article I: Establishment of Finances

Bonding

Accounts

Dues

Additional Fees

Article II: Financial Officers

Specific Duties and Procedures

Monthly Reports

Auditing

Article III: Check Policy

Checks Received

Checks Written on Behalf of the Interest Group

Reimbursements and Advances

Returned Check Policy (Insufficient Funds).

Article IV: Budget

Article V: Authorized Expenditures for Conferences

Article VI: Event Planning

Preparation

Risk Assessment

Budget Adjustments

Event Auditing

Event Evaluation

Article VII: Contracts and Agreements

Article VIII: Amendments to Financial Procedures

Conclusion

INTRODUCTION

This document outlines the financial policies and procedures for the Charm City Pearls (CCP) Interest Group.  All members and leaders within the Interest Group will follow these policies.  The management of Interest Group funds is a vital and essential part of the Interest Group structure. These procedures are necessary to ensure that the Interest Group is in compliance with the keystone documents of the Alpha Kappa Alpha Sorority, Incorporated, the Internal Revenue Service guidelines, and generally accepted accounting principles.

 NOTE: The Interest Group must approve all expenditures, and must comply with the applicable rules of the following resources:

  • Alpha Kappa Alpha Sorority, Incorporated – Constitution and Bylaws (2010)
  • Alpha Kappa Alpha Sorority, Incorporated – Manual of Standard Procedure (2010)
  • Robert’s Rules of Order, Newly Revised
  • Alpha Kappa Alpha Sorority, Incorporated – Fiscal Fitness Guide To Interest Group Financial Procedures
  • CCP Interest Group Bylaws
  • Baltimore Office of Tax and Revenue
  • Federal Accounting Standards Board
  • Internal Revenue Service

ARTICLE I: ESTABLISHMENT OF FINANCES

Section 1. Bonding

a)     All financial officers handling Interest Group funds shall be bonded.  The Interest Group shall bond the President, First Vice President, Treasurer, and Financial Secretary.

b)    Documentation of bonding shall be kept with the official Interest Group records. Bonding coverage must be reviewed at least annually, concurrent with the election of new financial officers, to ensure complete coverage, and/or amended as needed upon change of officers or for any other given reason.

Section 2. Accounts

a)     The Interest Group shall create and maintain three (3) separate accounts:

1)     Operating account for Interest Group operations, and

2)     Fundraising account for Interest Group community service initiatives

b)    In addition, the Interest Group shall establish, capitalize and maintain a scholarship fund under the Alpha Kappa Alpha Sorority,  Incorporated Educational Advancement Fund (EAF) in support of Interest Group scholarship initiatives.

Section 3. Dues

NOTE: General Membership dues for Interest Group members are to be paid directly to the Alpha Kappa Alpha Sorority Corporate Office.

a)     The fiscal year for CCP coincides with that of the Boule: from January 1 to December 31. Interest Group dues are to be paid by January 1st each year.

b)    Dues are subject to a late fee of ten percent (10%) of the entire dues amount for that calendar year if submitted/postmarked after February 1.

c)     The Financial Secretary collects from all Interest Group members, reactivating members and members transferring into the Interest Group, Interest Group dues, which support Interest Group operations as defined yearly by the Finance Committee.

d)    The Treasurer deposits dues into an “operating” account owned by the Charm City Pearls.   Per capita fees and EAF dues, as defined by the Alpha Kappa Alpha Sorority, Incorporated Corporate Office for the calendar year, are submitted to the Corporate Office of Alpha Kappa Alpha Sorority, Incorporated by January 1 of each year.

Section 4. Additional Fees

a)     Each Interest Group member will be assessed an additional annual $10 scholarship fund fee.  The additional annual fee supports the establishment of a Charm City Pearls scholarship fund, which will be formed under the Alpha Kappa Alpha Sorority, Incorporated Educational Advancement Foundation Fund to be used for future Interest Group scholarship awards.  The Charm City Pearls scholarship fee is due at the time of submission of Interest Group dues, and must be submitted as a separate payment.

b)    Additionally, a late fee of $2.00 will be assessed to each member arriving to a business meeting, executive committee meeting and/or special meeting after the presiding officer has called the meeting to order.  This late fee applies only to in-person meetingsAll late fees collected shall be contributed to the Charm City Pearls scholarship Fund.

ARTICLE II: FINANCIAL OFFICERS

Section 1. Specific Duties and Procedures

During their tenures, all financial officers of the Interest Group are required to maintain a current record of the financial status of the Interest Group.

a)     Financial Secretary: The Financial Secretary shall maintain a running list of all income received on behalf of the Interest Group.  It shall be the duty of the Financial Secretary to follow established guidelines as detailed in the Fiscal Fitness: Guide to Interest Group Financial Procedures.  To facilitate this action, the following procedures shall be followed. The Financial Secretary shall:

1)     Receive and record all monies for the Interest Group collected from dues, fundraising and other Interest Group activities that generate funds.

2)     Give receipts for all income received and maintain duplicates of all receipts in a Receipt Book.

3)     Submit all funds received to the Treasurer within 5-7 days of the receipt of funds (with a statement indicating sources of income/funds received, dates received and the type of income received).

4)     Maintain a current Cash Receipts Journal for the Interest Group, recording all income received from dues, fundraising and other Interest Group activities that generate funds, including the date received, the source and the type of income received.

5)     Maintain current records of funds submitted to the Treasurer.

6)     Keep a record of all payments submitted by each member including the date, name of the member and payment type and include such records in reports presented at Interest Group meetings.

7)     Sign vouchers prior to presentation to the Treasurer and President, but only after having received signatures from other designated officers, committee chairmen or members.

8)     Serve as a member of the Executive Committee and also serve as the co-chairperson of the Finance Committee.

b)    Treasurer: The Treasurer shall maintain a running list of all income and expenses received on behalf of the Interest Group.  It shall be the duty of the Treasurer to follow established guidelines as detailed in the Fiscal Fitness: Guide to Interest Group Financial Procedures. To facilitate this action, the following procedures shall be followed.  The Treasurer shall:

1)     Serve as the guardian of funds belonging to the Interest Group.

2)     Keep separate records and lists associated with special funds and/or bank accounts related to operating, fundraising and scholarship fund.

3)     Receive all monies from the Financial Secretary, who will provide a detailed indication of the source of the funds, dates received, amounts and types of income received.

4)     Keep a current and orderly record of all income and expenditures.

5)     Maintain a current Cash Disbursement Journal for the Interest Group expenditures related to Interest Group operations, fundraising (service projects and scholarship) related activities.

6)     Make deposits of operating and/or fundraising funds received within 5-7 business days of receipt from the Financial Secretary ensuring that operating deposits are kept separate from fundraising funds (service projects and scholarship).

7)     Maintain a separate and current checkbook register for the operating account, fundraising account, and for the scholarship fund account, including deposits, dates, sources, amount of checks, and new balance after each transaction.

8)     Sign checks along with the President, but only after the authorized officer, committee chairman, member, or Financial Secretary have previously provided signatures.

9)     Issue checks upon receipt of properly executed vouchers displaying supporting documentation.

10)  Make all disbursements by check, rather than cash or credit, for expenditures.

11)  Reconcile bank statements for all Interest Group accounts on a monthly basis.

12)  Provide a monthly report of income received (sources, dates and amounts), expenditures (purpose, date and amount), and account balances for all Interest Group accounts including the operating, fundraising and scholarship fund accounts.

13)  Prepare an annual report to include monies received, expended, and the current state of finances belonging to the Interest Group for all accounts including the operating, fundraising and scholarship fund accounts.

14)  Prepare the annual budget.

15)  Secure Interest Group approval for spending non-budget monies for an item from the contingency fund.

16)  Serve as a member of the Executive Committee and shall be the chairperson of the Finance Committee.

Section 2. Monthly Reports

All officers and committee chairmen shall remain fully aware of individual budget statuses at all times.

a)     Financial Secretary: The Financial Secretary shall present a monthly report detailing all Interest Group funds collected from the previous month for the Interest Group operating, fundraising, and scholarship fund accounts. The income detailed in the report of the Financial Secretary shall be equivalent to that summarized in the report of the Treasurer.

 

b)    Treasurer: The Treasurer shall present a monthly report outlining the income and expenditures from the previous month for the Interest Group operating, fundraising and scholarship fund accounts.  The Treasurer shall maintain a running monthly report that details the financial status of 1) the Interest Group, 2) the Interest Group officers and 3) committee chairmen, summarizing the current budget status for each.

 

Section 3. Auditing

The financial accounts of the Interest Group shall be audited, biennially, in January, by an external Certified Public Accountant.  In addition, there shall be an annual year-end internal audit to be reported at the February Interest Group Business Meeting for the previous calendar year.  In the event that a financial officer leaves office prior to completion of her term, an internal audit of the accounts must be performed within thirty (30) days of an incoming officer taking her place.  An Audit Committee, appointed by the President, will conduct the annual internal audit.

ARTICLE III: CHECK POLICY

Section 1. Checks Received

a)     Financial Secretary: The Financial Secretary shall receive on behalf of the Interest Group all checks or other legal tender related to operating, fundraising and scholarship fund related activities.  She shall maintain a log of all operating and fundraising (service projects and scholarship), funds received, including dates received, source from which these funds were collected, and the type of funds collected. Receipts shall be scribed by the Financial Secretary and given to the check writer as noted in Article III, Section 1.1.  The Financial Secretary shall not hold checks longer than a seven (7) day period before forwarding the checks to the Treasurer for deposit.

Section 2. Checks Written on Behalf of the Interest Group

Checks are written on behalf of Charm City Pearls for Interest Group specific activities and expenditures only.

Section 3. Reimbursements and Advances

Note: All officers, committee chairmen and members shall submit to the Treasurer requests for reimbursement at least 14 days before the check is needed.

a)     Required Documentation: Reimbursements are made only with proof of the expense (receipts) accompanied by an executed Interest Group Cash Disbursement Voucher.  The purpose of the check will be specified on the memo line of each check.  Advances are made after an invoice with estimated expenses is submitted along with a Request for Funds Voucher.

 

b)    Required Signatures: To receive funds, the officer, committee chairman and/or Interest Group member must complete a Cash Disbursement Voucher or Request for Funds Voucher and attach all receipts and estimates and/or invoices. The Voucher shall be signed by the officer, committee chairman and/or Interest Group member first, then moved to the Financial Secretary for signature, and lastly to the Treasurer and President for authorization and check issuance.

 

c)     Check Issuance: The Treasurer will issue the check.

 

Section 4. Returned Check Policy (Insufficient Funds)

a)     It is the responsibility of the Treasurer and the officer and/or committee chair to ensure that the Interest Group returned check policy is shared with all potential check writers (non-members and members of the Interest Group).

 

b)    The fee for any returned check, charged by the bank to the Interest Group, shall be passed on to the person whose check was returned.

 

c)     When the Interest Group receives a bank notification of a returned check, the Financial Secretary will notify the officer, committee chairman and/or the Interest Group member who received or wrote the check.

 

d)    Funds for the amount of the original check, plus the returned check fee, and a $10 inconvenience fee must be remitted to the Interest Group in the form of cash, money order, cashier’s check, or certified check.

 

e)     When a check is returned for insufficient funds, the member may forfeit the right of participating in the specific activity related to the event for which the check was written until the check is redeemed.

 

f)     Any monies owed to the Interest Group must be paid within sixty (60) calendar days of the debt having been incurred or within sixty (60) calendar days of the specified due date of such debt.

 

g)    Failure to pay any monies owed for assessments within sixty (60) calendar days of the debt having been incurred or within sixty (60) calendar days of the specified due date of such debt will prohibit the receipt of dues from that member until the debt is paid in full.

 

h)     Once the member is deemed as financially inactive, she is unable to hold her office within the Interest Group until such time as the member has satisfied her debt with the Interest Group.  If a member holding an office has been deemed financially inactive, and has neglected to satisfy her indebtedness with the Interest Group within thirty (30) days of being deemed financially inactive, she will be permanently relieved of her office and a special election will be held to fill her office.

 

i)      The Interest Group will only allow two instances for returned checks within a calendar year (January 1 – December 31).  Once two (2) checks are returned for insufficient funds (and not resolved as a bank error), the Interest Group will not accept any more personal checks from that member or check writer.  All subsequent transactions must be by cash, money order, and cashier ’s check of certified check.

 

j)      The Financial Secretary will be responsible for collecting payment for insufficient funds checks related to her respective account.  The Treasurer will draft a certified letter that will also be sent to the check writer.  Note: The Treasurer cannot receive these funds from anyone other than the Financial Secretary.

 

k)     A list will be provided to all officers, committee chairmen and/or other Interest Group Members who are authorized to receive funds, identifying all members who have had two (2) returned checks within a calendar year.

 

 

l)      If a returned check is the result of a bank error and is documented with a letter from the bank, and if as a result the member has fewer than two (2) returned checks within a calendar year, the member will be restored to check acceptance status, immediately.

 

m)   The Treasurer shall maintain a log of returned checks and their resolution.  To maintain active financial status with the Interest Group, the member must satisfy the outstanding financial obligation by the next regular business meeting.

 

ARTICLE IV: BUDGET

 

Section 1. The financial year for the Interest Group is January 1 to December 31.  The source of operating funds for the Interest Group is solely from membership dues.  Fundraising activities provide revenue for program activities.

 

Section 2. All budget items are based upon anticipated funds.  With regards to the operating budget, the anticipated funds are associated with projected Interest Group membership for the upcoming calendar year.  With regards to fundraising (service projects and scholarship), the budget is based upon projected program activities, defined by the program committee and adopted by the membership for the upcoming calendar year.

 

Section 3. All officers, committee chairmen and members are responsible for ensuring that expenditures remain within the budget. All officers, committee chairmen and members are also responsible for ensuring that all ticket sales and/or assessments related to the financial success of Interest Group Fundraising (service projects and scholarship) initiatives are met.

 

Note:   It is important to note that once the Interest Group adopts a yearly budget, all income and revenue amounts must be met.  When projected income and revenue amounts are not met, the Interest Group membership may be subject to additional assessments to ensure that budgeted items are successfully managed.

 

Section 4. The Interest Group budget for FY2012 and FY2013 is as follows:

  • January 1: The deadline for submitting Interest Group dues to the Corporate Office for active membership for the fiscal year.
  • February 1: After this date any dues not received and/or postmarked to the Corporate will be assessed a 10% late fee of the entire dues amount.
  • September 1: The Finance Committee will send a letter and/or other communication, as defined in the Interest Group Bylaws, to each committee chairman and officer, requesting the committee or officer fund projections and/or budget requests for the next fiscal year.
  • September: All committees and officers shall conduct meetings focused on budget planning for the next fiscal year.  All budget requests shall include itemized details of all budgeted items related to the requested income and/or expense.
  • September 30: The deadline for submitting budget requests.
  • September 30: The deadline for the Finance Committee to hold a joint budget-planning meeting with the Membership, Program, Scholarship & Fundraising Committees.  The purpose of this meeting shall be to prepare an initial proposed budget for presentation to the Executive Committee at the November Executive Committee meeting.
  • November: The proposed budget, for the next fiscal year, will be presented to the Executive Committee and the Interest Group members for voting and approval.
  • December 31: The deadline for the final budget and other year-end reports to be submitted to the Corporate Office.

 

Section 5. The Interest Group budget for FY2014 and beyond is as follows:

  • January 1: The deadline for submitting Interest Group dues to the Corporate Office for active membership for the fiscal year.
  • February 1: After this date any dues not received and/or postmarked to the Corporate will be assessed a 10% late fee of the entire dues amount.
  • May 1: The Finance Committee will send a letter and/or other communication, as defined in the Interest Group Bylaws, to each committee chairman and officer, requesting that each provide financial projections and/or budget requests for the next fiscal year.  All budget requests shall include itemized details of all budgeted items related to the requested income and/or expense.
  • May 30: The Finance Committee will send a reminder letter and/or other communication, as defined in the Interest Group Bylaws, to each committee chairman and officer.
  • June: The initial proposed budget for the next fiscal year will be presented to the Executive Committee and the Interest Group members for approval.
  • September 1: The Finance Committee will send a letter and/or other communication, as defined in the Interest Group Bylaws, to each committee chairman and officer, as a first request for each of them to submit any potential budget adjustments to the initially proposed budget presented and approved at the June meetings.
  • September 30: The deadline for the Finance Committee to hold a joint budget-planning meeting with the Membership, Program, Scholarship & Fundraising Committees.  The purpose of this meeting shall be to discuss and solidify potential final adjustment suggestions to the initially proposed budget presented and approved at the June meetings.
  • November: The final proposed budget for the next fiscal year will be presented to the Executive Committee and the Interest Group members for voting and final approval.
  • December 31: The deadline for the final budget and other year-end reports to be submitted to the Corporate Office.

 

 

ARTICLE V: AUTHORIZED EXPENDITURES FOR CONFERENCES

 

Section 1.  Pending funds available on a yearly basis, a member who is elected to serve as a Regional or Boule delegate shall receive from the Interest Group at least a portion of her registration fee only.  If the same member also serves as a workshop presenter and receives her full registration fee from the Region or Corporate Office, that member must forfeit any amounts given to her by the Interest Group.

 

Section 2. Interest Group funds shall be used for registration fees only.  Interest Group funds cannot be used to support any additional conference activities (i.e. Director’s Dinner, EAF Brunch, Step Show, etc.).

 

ARTICLE VI: EVENT PLANNING

 

This section gives guidance on organizing an event that requires financial support from the Interest Group.  All events, including fundraising (service projects and scholarship), social, Interest Group retreat, etc. that require Interest Group funding must follow this financial approval process with respect to organizing, planning, and implementing the event.

 

Note: Providing a sound fiscal state for the Interest Group begins with an effective plan including a Risk Assessment.

 

Section 1. Preparation

Prior to presenting a proposed event to the Finance Committee, and prior to approval by the Executive Committee and Interest Group, the event committee must consider and provide documentation for the following key items:

  • Has the Interest Group held a similar event or had experience with a similar event in the past?
  • If so, how many?  And were those events financially successful (i.e., how much money was raised, how many tickets were sold, etc.)?
  • Who was the target audience? Why will this event appeal to that audience?
  • Is this current event any different from previous events?
  • If so, who will be the target audience for this event? Why does the committee feel this event will appeal to a new audience?
  • What is the target date for the event? Does it conflict with any major Interest Group, local interest group or chapter, or city event?
  • What is the anticipated cost (including room rental, meals, decorations, invitations, printing, gifts, postage, etc.) of the event?
  • How many tickets/seats must be sold in order to break even? Be certain to include the gratis tickets made available to the Basilei, special guests, etc.
  • What other opportunities (patron page, program ads, auction, etc.) are available to generate revenue?
  • Collect a minimum of three (3) quotes for items in excess of $300 (items such as ballroom, caterer, etc.) to defend selection of such.
  • Prepare and submit a written proposal detailing event history, research, pros/cons, risk assessments, anticipated costs, event implementation timeline (including event committee meetings), projected income, net profits, etc. to the Finance Committee, Executive Committee and Interest Group for approval at least 3 to 6 months prior to implementation of the event.  Exceptions to this policy may only be granted at the discretion of the Interest Group President.
  • The event chairman must report monthly on any proposed changes, the event financial status and the event timeline implementation status to the Executive Committee and Interest Group members.
  • Work with the Protocol Committee to ensure any matters of protocol are addressed prior to event implementation.
  • A final report of the event status must be provided the Finance Committee, Executive Committee and the Interest Group within thirty (30) days of event completion.

 

Section 2. Risk Assessment

As part of the event planning process, the event committee shall consider the following:

  • Are there any risks associated with the event that may pose potential hazards to the Interest Group’s finances, participation and/or reputation?
  • If the activity is canceled, will the Interest Group be held liable for any services/charges?  If so, what are the potential losses?
  • What happens if the activity is held, but the projected profit is not received?  Does the event committee have a “Plan B” in place?  Has this additional plan been presented to the Finance Committee, Executive Committee and Interest Group as a part of the original proposal for approval?
  • Has the event committee provided ample time for the Interest Group President to approve any event-related contracts?
  • Has the event committee provided ample time for the Finance Committee to prepare and issue to the event committee checks for expenditures related to implementation of the event?
  • Has the event committee planned to ensure ample time for checks to clear prior to the event?

 

 

Section 3. Budget Adjustments

a)     While event chairmen are encouraged to present sound numbers with event proposals, it is understood that minimal adjustments may be inevitable.  In the event that an event budget requires adjustment, the committee chairmen must:

1)     Determine if the adjustments can be made within the event budget that was already presented for approval.

2)     If the approved event budget has funds that may be reallocated to cover an unexpected budget adjustment, the event chairman shall prepare and include such adjustments in the event monthly report to the Finance Committee, Executive Committee and Interest Group.

3)     If the approved event budget does not have funds available to reallocate and cover an unexpected budget adjustment, prior to moving forward, the event chairman shall prepare and present to the Finance Committee, Executive Committee and Interest Group, a written report requesting approval of any additional funds.

 

b)    Additional event funds are not guaranteed.  All event chairmen are encouraged to remain fully aware of individual budgeted event items and to remain within the originally approved budget request.  Unexpected budget adjustments do not support sound financial implementation of Interest Group events and potentially pose extreme hazard to the financial status of the Interest Group.

 

Section 4. Event Auditing

a)     Upon submission of a final event report to the Finance Committee, Executive Committee and Interest Group, and within thirty (30) days of event completion, the Audit Committee will perform an audit of event finances.  The Audit committee shall complete the event audit within thirty (30) days of receiving records associated with the event, and provide to the event chairman, Finance Committee, Executive Committee and Interest Group members, a detailed written report of the event finances.

 

b)    The event chairman and the event committee members are accountable for submitting to the Audit Committee all required documentation supporting the event finances.  To ensure accountability, the chairman and event committee members shall meet after the event has concluded to review the final budget and ensure all final reports and documentation are gathered and completed properly.  Any discrepancies must be researched and reported to the Audit Committee.

 

Section 5. Event Evaluation

Separate internal and external evaluations of each event shall be performed to assess the strengths and weakness of the event and to determine if the event is financially feasible for the Interest Group in the future.  Event evaluations shall mimic or at least be reasonably similar to activity evaluations required and provided by Alpha Kappa Alpha Sorority, Incorporated.   Some key questions to include are:

  • Were proposed timelines met?
  • Were event budget guidelines met?
  • Was the event properly budgeted?
  • How could the budget have been improved?
  • Was the event heavily attended?
  • What should the committee have done differently?
  • Would the committee recommend hosting this event again? Why?
  • What impact did the event have on the community?
  • What impact did the event have on the Interest Group?
  • What are the gains and losses for the Interest Group from the event?
  • What was the feedback from event attendees?
  • Based on the feedback from the Interest Group Members and participants, what recommendations were provided to improve the process?

 

ARTICLE VII: CONTRACTS AND AGREEMENTS

All contracts and agreements involving the Interest Group must be referred to legal counsel when available and signed by the President before implementation of the event.  The Executive Committee and Interest Group must approve the event proposal before the President signs any contracts or binding agreements.

 

ARTICLE VIII: AMENDMENTS TO FINANCIAL PROCEDURES

This document will be amended periodically to reflect changes directed by the Alpha Kappa Alpha Sorority, Incorporated, the Internal Revenue Service, Interest Group Bylaws, and Baltimore City laws and regulations.

 

CONCLUSION

This guide is meant to serve as a useful tool that answers questions related to the financial operations of the Interest Group.  Questions or requests for additional details should be referred to the Finance Committee.