A Quick-Start Checklist of Financial and Membership
Processing Issues
JUNE, 2014
CONGRATULATIONS!
 NO MATTER WHETHER THIS IS YOUR LIFELONG
DREAM OR WHETHER YOU WERE APPOINTED
WHILE YOU WERE OUT OF THE ROOM… IT’S
YOUR JOB NOW!
 HIGH IMPORTANCE= HIGH REWARD
OVERVIEW
 THIS IS A “101 LEVEL” SUMMARY
 DETAIL ON ALL TOPICS IS IN THE “FPLR” BOOK
 YOU MAY HAVE CIRCUMSTANCES THAT ARE NOT
COVERED HERE- ASK QUESTIONS!
GETTING STARTED
 FPLR MANUAL
 MEMBERSHIP PROCESSING GUIDE
 INFO ON IEA WEBSITE
 FINANCIAL PROCEDURES
 IPACE (IF APPLICABLE)
 GO TO THE ANNUAL TRAINING AT YOUR OFFICE
(OR ONE NEARBY)
TRANSITION
 YOUR PREDECESSOR OWES IT TO YOU AND YOUR
LOCAL TO HAVE EVERYTHING UP TO DATE AND
IN ORDER FOR YOU
 REVIEW THE “TRANSITIONING THE TREASURER”
MATERIAL IN THE FPLR MANUAL AND ON THE
WEBSITE FOR SUGGESTIONS AND CHECKLISTS
 REMEMBER YOUR “TRANSITION EXPERIENCE” AT
THE END OF YOUR TERM!
IMPORTANT POINTS TO PONDER
 DON’T STAY IN A SILO- THE OTHER OFFICERS ARE
EXPECTED TO SUPPORT YOU AND PROVIDE
OVERSIGHT OVER YOUR ACTIVITIES
 MAJOR PROBLEMS OCCUR WHEN THE
TREASURER HAS NO ACCOUNTABILITY OR
OVERSIGHT- DON’T GET OFFENDED ABOUT
CHECKS AND BALANCES
 DON’T BE SHY ABOUT ASKING FOR HELP OR
SUPPORT IN ENFORCING POLICIES, ETC.
MEMBERSHIP PROCESSING?
 IF YOU ARE ALSO THE MEMBERSHIP CONTACT
FOR YOUR LOCAL, DIRECT TRAINING SHOULD
COME FROM THE IEA MEMBERSHIP
DEPARTMENT
 IF NOT, YOU STILL NEED TO KNOW THE BASICS
AND ALSO WORK CLOSELY WITH YOUR
MEMBERSHIP CONTACT
TOP 5 PRIORITIES
 1. DUES COLLECTION & PAYMENT
 2. CONTROLS
 3. IRS REQUIREMENTS
 4. BOOKKEEPING ISSUES
 5. BUDGET
1. DUES COLLECTION
 IEA COMPUTES A “DUES OBLIGATION” FOR YOUR
LOCAL BASED ON YOUR MEMBERSHIP LISTING
 YOUR LOCAL IS REQUIRED TO REMIT THIS
AMOUNT TO IEA ACCORDING TO A
PREDETERMINED SCHEDULE….
DUES COLLECTION
 ….REGARDLESS OF WHETHER YOU COLLECT ALL
OF THE DUES FROM YOUR EMPLOYER
 SO IT IS VERY IMPORTANT THAT BETWEEN YOU
AND THE MEMBERSHIP CONTACT, SOMEONE
VERIFIES THAT YOUR EMPLOYER IS PAYING YOU
ALL THE DUES THAT THEY SHOULD BE!
 THIS IS AN ONGOING PROCESS ALL YEAR LONG
DUES COLLECTION
 DEPOSIT CHECKS AS SOON AS THEY ARE
RECEIVED
 OR BETTER YET- HAVE THEM DIRECT DEPOSITED
 SOME LOCALS HAVE IEA-NEA DUES SENT
DIRECTLY TO SPRINGFIELD
 TALK TO MEMBERSHIP DEPT. FIRST
 YOU ARE STILL RESPONSIBLE FOR VERIFYING
ACCURACY
DUES PAYMENT
 GET A COPY OF THE PAYMENT SCHEDULE AND




MAKE SURE THAT ALL PAYMENTS ARE MADE ON
TIME
PAY THE AMOUNT ON THE STATEMENT!
WATCH FOR FCPE IF APPLICABLE
MAKE SURE THERE IS A ZERO BALANCE AT THE
END OF THE YEAR
WATCH FOR “LATE STATEMENTS”
2. CONTROLS
 YOUR LOCAL IS A BUSINESS RUNNING ON OTHER




PEOPLES’ MONEY (YOUR MEMBERS)
CHECKS AND BALANCES HELP PREVENT FRAUD
AND SERIOUS ERRORS
CONTROLS ARE GOOD!
FORGET ABOUT “TRUST”
YOUR OFFICERS NEED TO HELP YOU ENFORCE
THEM
CONTROLS: CHECKS
 DON’T SIGN CHECKS PAYABLE TO YOURSELF
 REQUIRE ORIGINAL INVOICES FROM VENDORS-
NO COPIES OR HANDWRITTEN NOTES
 TWO SIGNATURES
 BLANK CHECKS (SIGNING/SAFEGUARDING)
 MAKE SURE YOUR BANK SENDS COPIES OF YOUR
CLEARED CHECKS!!
CONTROLS: OTHER
 SEE FPLR MANUAL
 HAVE BANK MAIL STATEMENTS TO SOMEONE
BESIDES YOU!
 DON’T DEAL IN CASH!
 NO CHECKS PAID TO CASH
 NO $$ WITHHELD FROM DEPOSITS
 DON’T GIVE CASH TO MEMBERS
 ANNUAL AUDIT!
AUDIT
 OPTIONS
 CPA
 AUDIT COMMITTEE
 ANYTHING IS BETTER THAN NOTHING!
 DON’T DEVELOP A FALSE SENSE OF SECURITY
3. IRS
 DOCUMENTATION
 ANNUAL RETURNS
CHECKS- GENERAL
 IRS REQUIREMENT: SUPPORTING
DOCUMENTATION FOR ALL PAYMENTS
 PAYEE
 AMOUNT
 DESCRIPTION
 BUSINESS PURPOSE
 KEEP IT WHERE YOU CAN FIND IT!! (STAPLE TO
BANK STATEMENT, ETC.)
 DON’T ACCEPT HANDWRITTEN NOTES AS
DOCUMENTATION
CHECKS WRITTEN TO MEMBERS
 BE ESPECIALLY CAREFUL WITH




DOCUMENTATION
WRITTEN GUIDELINES ON WHAT WILL BE
REIMBURSED
WRITTEN GUIDELINES FOR TRAVEL ADVANCES
IRS 1099 RULES FOR STIPENDS, ETC. (INCLUDING
DUES PAID ON BEHALF OF OFFICERS)
GIFT CARDS ARE TAXABLE COMPENSATION!!
MONEY RECEIVED
 IRS REQUIREMENT: SUPPORTING
DOCUMENTATION FOR ALL MONEY RECEIVED
 PAYOR
 AMOUNT
 DESCRIPTION
 BUSINESS PURPOSE
 KEEP IT WHERE YOU CAN FIND IT!! (STAPLE TO
BANK STATEMENT, ETC.)
 DEPOSIT CHECKS WHEN RECEIVED
IRS RETURN
 ~920 LOCALS- “E-POSTCARD”
 IEA PROBABLY FILES FOR YOU- CHECK WITH
BUSINESS SERVICES TO BE SURE
 ~30 LOCALS- FORM 990 OR 990-EZ
 MOSTLY FILED BY LARGE MEGA-LOCALS
 IF YOU ARE ONE OF THE 30:
 KNOW THE FILING REQUIREMENTS
 HAVE A CPA DO IT!
4. BOOKKEEPING ISSUES
BOOKKEEPING
 CHECKBOOK/EXCEL SUMMARY/QUICKEN
 KEEP TRACK OF CASH BALANCE
 PREPARE FINANCIAL REPORT
 MONTHLY BANK RECONCILIATION
 FILING SYSTEM
 BANK STATEMENTS/CHECKS
 DOCUMENTATION
 OTHER?
BANKING
 OPENING A NEW ACCOUNT: CALL FIRST!
 GET COPIES OF YOUR CHECKS!!
 SHOP AROUND FOR LOW FEES, ETC.
 HAVE THE MONTHLY STATEMENT (AND CHECK
COPIES) SENT TO SOMEONE BESIDES YOU
 KEEP THE SIGNATURE CARD UP TO DATE
 KEEP YOUR BOARD APPRISED ABOUT BANKING
ARRANGEMENTS
IPACE
 MEMBER CONTRIBUTIONS
 LOCAL REBATES*- YOUR OBLIGATIONS:
 KNOW WHAT IT CAN BE USED FOR
 KNOW STATE REPORTING REQUIREMENTS
 SEPARATE BANK ACCOUNT/NO INTEREST
* YOU NEED TO KNOW IF YOUR LOCAL HAS AN
IPACE ACCOUNT, AND YOU NEED A GENERAL IDEA
OF HOW THE PROCESS WORKS WHEN YOU ASK FOR
MONEY FOR THE FIRST TIME
TREASURER’S REPORT
 MONTHLY!
 KEEP YOUR BOARD INFORMED
 MAKE AVAILABLE TO MEMBERS?
CALENDAR OF EVENTS
 DON’T INCUR FINES/PENALTIES, OR LET
IMPORTANT THINGS SLIP THROUGH THE
CRACKS!
 OUTSIDE REPORTING DEADLINES
 INTERNAL REPORTING DEADLINES
 IEA DUES PAYMENT DEADLINES
 ANNUAL TASKS SUCH AS BOARD REVIEW OF
BANKING ARRANGEMENTS
 MILESTONES IN THE BUDGET PROCESS
 ETC.
5. BUDGET
 PLANNING
 MANAGE YOUR CASH BALANCE
 MAKE SURE YOU DON’T RUN OUT OF MONEY
 SPEND ON APPROPRIATE/USEFUL THINGS
 QUALIFY FOR IEA FINANCIAL ASSISTANCE
 PLENTY OF RESOURCES AVAILABLE
 FPLR MANUAL
 WEBSITE
RESOURCES
 IEA BUSINESS SERVICES
 IEA MEMBERSHIP PROCESSING
 IEA SECRETARY-TREASURER
 IEA WEBSITE
 TRAINING SESSIONS
 OTHER LOCAL TREASURERS
 FPLR MANUAL
 IF IN DOUBT, ASK YOUR U.D.
CONCLUSION
 KNOW YOUR RESOURCES!
 IF YOU’RE NOT COMFORTABLE WITH
SOMETHING, SAY SO
 LEAVE THE JOB IN BETTER SHAPE THAN YOU
FOUND IT