ISPE Affiliate/ Chapter Financial Manual
Table of Contents
IX.
Financial Manual
A.
Overview
B.
Tips on Hiring an Accountant
C. Federal Identification Number
D. Federal Tax Exemption
E.
Bank Account
F.
Bookkeeping Procedures
G. Annual Financial Reporting Requirements
H. Unrelated Business Income Tax
I.
J.
K.
L.
M.
N.
O.
P.
X.
Administrative Support
Reimbursements
Reserves
Merchant Accounts for Credit Cards
Records Retention Schedule
Insurance
Collecting Membership Dues
Electronic Commerce
Financial Manual Appendices
A.
Chapter Treasurer Job Description
B.
Annual Letter Requesting Group Exemption
C.
Proposed Chart of Accounts for ISPE Chapters
D.
Financial Category Description
E.
Balance Worksheet
F.
Annual Income/Expense Report Worksheet
G.
Employee or Independent Contractor?
H.
Records Retention Schedule
I.
Financial Calendar/Reporting Requirements
1
1
2
2
3
3
3
5
6
6
6
6
7
8
8
9
10
11
14
15
16
18
19
IX. Financial Manual
A.
B.
C.
Overview
1.
Because all ISPE chapters are required to incorporate, they are considered separate legal
entities and, as such are responsible for all legal obligations incumbent upon any selfgoverning organization (i.e., filing their own federal, state, and local corporate reports and
tax filings). ISPE will arrange for the incorporation of a forming chapter once it becomes
fully active with a board and a schedule of meetings.
2.
ISPE retains the original incorporation papers along with the official seals. This ensures
they will not get lost in the annual transitions of Chapter Board Members. If you need to
have a document "stamped" with the seal, please send it to ISPE.
3.
See Appendix A for the job description for ISPE Chapter Treasurer. This portion of
Chapter Handbook (Section X) may also be used as a separate document and given to the
Chapter Treasurer and accountant.
Tips on Hiring an Accountant
1.
Choose a local CPA who is familiar with your specific state and local tax filing requirements
(based on where the Chapter is incorporated), and has non-profit experience.
2.
Choose an accountant who is willing to take your needs and work with them versus one
who tells you what he/she can do within a set pattern. Remember you are hiring the firm to
do what you need done.
3.
Choose an accountant that is willing to be the repository of the chapter financial records.
Officers change each year so it is important to have a permanent place for all the
organization records and history (see Appendix H). Copies of all meeting minutes should
be given to the accountant.
4.
Sarbanes Oxley legislation has been extended in one form or another to the non-profit
sector by several States. Be sure your accountant is familiar with the local legislation and
can assist you in maintaining compliance.
Federal Identification Number (EIN)
This is the number that identifies who the chapter is to the IRS (like your social security number).
To establish a bank account, you must first apply for a Federal Identification Number (EIN). (Form
SS-4 can be downloaded at http://www.irs.gov/)
D.
Federal Tax Exemption
1.
Each year (by July 31) you must send a letter to the ISPE Tampa office giving us
authority to file for you (See Appendix B; ISPE generates an annual letter for your
signature). You still need to file your own Form 990 and Form 990T. ISPE's group
exemption number is GEN:8623.
2.
Overview
a. ISPE, the Society, is a 501 (c) 6. All chapters have been incorporated using 501 (c) 6
guidelines.
b. 501 (c) 6. Allowance for greater flexibility of activity — especially lobbying.
E.
F.
G.
I.
501 (c) 6 corporations may not make a "profit" — services priced at "fully
allocated costs." (Cash reserves, generally equal to no more than twice your
operating budget, are permissible.)
II.
Donations are not tax-deductible.
III
Allowance for some discounts on 2nd and 3rd class mailings.
Bank Account
1.
Non-profit organizations are entitled to an "interest bearing checking account". Be sure to
ask your bank about it.
2.
It is suggested that four officers be authorized to sign checks. In the absence of an
Affiliate/Chapter Manager, the Treasurer or other authorized officer, should prepare the
checks and the Chair should sign all the checks. The person preparing the checks should
not sign the checks. Remember to change your bank signatory cards each year when the
Board changes.
3.
Each year you should discuss with a banker the most economical way to maintain your
account given the level of activity. (To determine the level of activity, you need to know the
number of checks written and the number of checks deposited.) This should be done on an
annual basis as banks continually change their fee structure.
Bookkeeping Procedures
1.
It is important to establish financial standards and maintain consistency of information from
year to year. You should choose one system that moves from treasurer to treasurer.
2.
All procedures in accounting revolve around a "chart of accounts" (For example, see
Appendix C. Appendix D contains a description of the example financial categories.) This
is a set of numbers that identifies each transaction (income or expense). For example, a
$75 check received for a meeting fee would be coded to 3500 (meeting fee). This chart of
accounts has been designed to closely match the Form 990 reporting categories to make it
easier for your accountant. Not all Chapters will need all categories.
3.
Copies should be made of all checks deposited and kept with a copy of the deposit slip. All
invoices paid by the Chapter should be marked with the check number and check date and
maintained in a file. All deposits and paid invoices should be kept for a period of three
years. Financial statements and journals should be kept for seven years (year end financial
statements should be kept permanently.)
4.
There are off-the-shelf software programs that are inexpensive and may facilitate your
bookkeeping processes; e.g., QuickBooks, Xero and Fresh Books.
Annual Financial Reporting Requirements
1.
IRS Form 990 (a non-profit tax return) and Form 990T
a.
If you have annual gross income under $25,000, all you have to do is fill in the name and
address of the Chapter, EIN number, group exemption number and check box for under
$25,000 gross (See Appendix E). If you have annual gross income of $25,000 to
$100,000, you can file a simplified form 990-EZ. (These forms are available at
http://www.irs.gov/)
b.
Include as an attachment to the Form 990 a copy of your Chapter Bylaws if you have
made any changes in them. (Remember, your Bylaws should be updated annually as
the Society Bylaws change. All changes to Chapter Bylaws must first be approved by
the ISPE International office.)
2.
c.
A Form 990T is required if you have any income the IRS designates as "unrelated
business income" (also available at http://www.irs.gov/). See Part H — Unrelated
Business Income Tax, of this Financial Manual for more details.
d.
Copies of the Forms 990 and 990T must be sent to ISPE International each year.
Copies of all 990s should be kept at the official chapter address. Legally, all nonprofit organizations must be able to produce, on demand, a copy of the Form 990.
e.
Be sure to file on time! There is a penalty that accumulates for every day you are
late!
f.
The IRS will scrutinize 990s for errors and then penalize the errors. Be sure you
review your Form 990 before mailing.
g.
IRS tax forms can be downloaded off the Internet at http://www.irs.gov/.
Annual Financial Reports — submitted to ISPE (see Chapter Handbook Attachments for
annual reporting calendar). Note: All financial statements should be reported on an accrual
basis.
a. Annual Balance Sheet (Appendix E)
b. Annual Income/Expense Report (Appendix F)
3.
State Corporate Report (Date of submission varies by state.)
4.
Miscellaneous State Tax Returns (varies by state requirements)
5.
1099 — a report to the IRS of monies paid to consultants or independent contractors (i.e.,
chapter managers, if not incorporated). Try to avoid hiring someone as an employee, if
possible, because of the amount of paperwork and legal requirements involving
employees. A consultant is someone who works independently, provides his/her own office
and tools, and does not receive supervision from the organization. The consultant is given
a specific task to do. It is necessary to submit a 1099 (with copy to consultant) only if you
pay $600 or more to any one individual. (See Appendix G — Employee or Independent
Contractor?)
6.
For your general information, listed below are the six most common association federal tax
mistakes:
a. Failing to report changes in operations and activities to the IRS. An exemption
application that fails to disclose planned activities provides no protection as to the
exempt status of the undisclosed activities, and may undercut the validity of the
organization's exemption. Notify the IRS of changes on a regular basis.
b. Overlooking IRS conditions in ruling letters and not heeding IRS audit changes and
cautions.
c. Failing to consider obvious and subtle Unrelated Business Income Tax (UBIT) issues.
Part VII on IRS Form 990 requires organizations to classify income as unrelated,
excluded by a specific UBIT exception, or related to exempt-function income.
d. Filing incomplete or inaccurate information and tax returns.
e. Failing to maintain adequate books and records.
f.
H.
Misclassification of employees and independent contractors.
Unrelated Business Income Tax (UBIT)
1.
A non-profit organization can be liable for taxes if it has what the IRS calls unrelated
business income.
2.
Three income criteria are used to determine unrelated business income:
a. must be derived from trade or business (some activity produced the income — rather
than interest, dividends, royalties, etc.)
b. must be regularly carried on
c. the activity must be unrelated to the exempt function.
3.
A Chapter Vendor Show should not be considered unrelated business income because it is
educational. You are offering your members information about products that are currently
available in the marketplace and an opportunity to learn about new products and
developments.
4.
Examples of UBIT
a. Advertising income
b. Sale of membership lists
I.
5.
IRS allows only those expenses related to the unrelated business income to be deducted.
(ISPE can deduct only a percentage of publication costs that equal the percentage of
advertising in the magazine.)
6.
The fact that some activity may incur an unrelated business tax does not mean you should
not do it; it simply means that you should be aware that there are activities where even
non-profits have to pay taxes. Check with your accountant about the taxability of any new
activity you undertake.
Administrative Support
1.
When the administrative requirements of running a chapter become too much for a
volunteer board to handle, there are several options available:
a. You can hire the services of a "management" company or business services company.
b. Have a local bookkeeper/accountant process funds and prepare statements.
2.
J.
K.
Hiring a management company is relatively easy because they bill on a fee for service
basis and take care of all reporting requirements. If you pay an individual to perform
administrative services, it gets very tricky from a legal standpoint. Appendix G is a chart
outlining the rules the IRS follows for employees versus independent contractors. The IRS
considers non-taxable and unreportable "casual labor" up to $50 per year per person”. A
decision must be made as to whether the person is an employee who gets a W-2 or an
independent contractor who gets a 1099. The IRS requires that you report all 1099
earnings over $600. If the individual you use qualifies as an employee, worker's
compensation insurance must be obtained, social security, unemployment taxes (Federal
and State), and income taxes (Federal and State) must be filed.
Reserves
1.
All chapters should develop a cash reserve to help them continue their activities and
programs during tough times.
2.
The IRS allows a "reasonable" amount of surplus to be accumulated by a non-profit
organization. "Reasonable" has been interpreted as an amount equal to twice the amount
of one year's operating budget.
Merchant Accounts for Credit Cards
1.
AMERICAN EXPRESS — American Express merchant account applications may be
downloaded at http://www.americanexpress.com/.
a. You must choose one of the following methods to submit charges to American Express:
1. depositing charges through your bank (the bank must be authorized by American
Express)
2. by mailing charges directly to American Express
3. electronic transmission via a credit card processing terminal or PC software.
b. The first two methods require an imprinter supplied by American Express at no cost.
With the third method, it is necessary to rent or purchase a terminal through your bank
or American Express. American Express furnishes all paper supplies needed at no
cost.
c.
2.
A discount rate (a fee charged to the merchant for use of the credit card as method of
payment) is charged depending on the business volume, the industry and the amount
of submissions.
MasterCard/Visa — MasterCard/Visa differ in the method for application for the merchant
accounts because you apply through your bank and each bank has slightly different rules.
You will need to contact your local bank for the telephone number for any questions
pertaining to MasterCard/Visa.
a. There are only two methods for submitting charges — either through charges submitted
directly to the bank or electronic transmission through a rented or purchased terminal
or PC software. Usually, you can use the same equipment to submit to American
Express and Visa/MasterCard.
b. The discount rate is similar to American Express and is determined on a case by case
basis based on your expected volume, credit history with the bank, etc.
Discount Rates – if your transaction volume significantly increases from prior year activity, ask
your merchant account representative to review your account to determine if your discount
rate can be lowered.
Refunds – If processing a credit card refund, be sure to issue the refund to the card originally
charged.
Retrievals and Chargebacks – There may be times when the bank requests a copy of a sales
draft. This request is called a retrieval request. Sometimes a retrieval request may be
chargeback related. A chargeback is a processed credit card transaction that is reversed
because of a customer or cardholder bank dispute over the transaction. See your
merchant agreement for more information.
Security – Credit card fraud is rampant. When you agree to accept credit cards for payment, you
are accepting the responsibility for securing that information from possible misuse or theft.
Never accept credit card numbers via e-mail. Only include the last four digits in an e-mail
when asking a customer to provide written authorization via e-mail for a card number
given over the phone. Make certain that any documents containing credit card information
are properly secured. When no longer needed, any such documentation should be
shredded. If you take a credit card imprinter or keypad to an on-site location, never leave it
unattended and secure it overnight.
M.
Records Retention Schedule
Appendix H contains a schedule for how long you must keep various documents.
N.
Insurance
Each incorporated Chapter must secure and maintain adequate corporate insurance including
general liability and Director’s & Officers coverage. Limits for each of these types of insurance
should provide at least $1 million coverage and possibly more, depending on the activity of the
Chapter and venue requirements. Check with a local insurance agent for the most favorable
coverage at the best possible premium price. In addition, if the Chapter has personal property,
they may consider carrying some property insurance, depending on the value of the property and
the cost of coverage.
Always check with your insurance agent when planning activities to determine in advance
whether or not you may need special event coverage. Buying and serving alcohol carries
immense liability and responsibility, so the Chapter should consider having any alcohol provided
and served by the venue employees or an insured caterer. Proof of insurance should be
requested when seeking a caterer.
O.
Collecting Membership Dues
A Chapter may decide to offer a nonmember price for an event that includes the cost of
membership. Should that occur, the Chapter should have the customer’s payment issued in full to
the Chapter. The Chapter can then forward the appropriate membership application forms to
ISPE with a letter acknowledging the number of forms enclosed and the total amount due to
ISPE. These forms should be forwarded to ISPE as soon as possible to avoid delays in activating
memberships. Payment from the Chapter may be enclosed with the forms or a request may be
made in the letter to bill the Chapter for the acknowledged amount.
P.
Electronic Commerce
Internal controls should be the cornerstone of all your financial transactions, including any ecommerce in which your Affiliate/Chapter participates. As most of these transactions only require
one person to create, the risk of fraud increases due to lack of checks and balances. Ensure that
you have proper internal controls in place to mitigate that risk.
Best Practices
There are several factors necessary for creating effective internal controls:
Management /board of directors’ commitment
Sound policies and/or procedures regarding the segregation of duties
Compliance with and review of the policies/procedures in place
Effective internal controls include the following:
A person(s) who can approve payment should not be able to cut checks or enter invoices into the
accounting system
Review on a monthly basis all bank statements and bank reconciliations by someone who does
not have access to authorize or enter invoices
Maintain a filing system for proper and complete storage of all necessary documentation
Ensure proper training for personnel or volunteers
For fraud to occur, only four things are needed: Incentive, Opportunity, Rationalization and
Capability. This is called the Fraud Diamond.
Appendix A
ISPE Chapter Treasurer Job Description
The treasurer shall:

Receive, hold and safeguard all funds for the Chapter.

Pay all chapter bills in a timely manner upon receipt of proper documentation and
approvals. All obligations should be paid by check.

Maintain registration records for meetings and collect all fees or oversee the
Chapter Manager doing this.

Maintain a complete set of accounting records that include all funds received and
disbursements made along with any outstanding accounts receivable and unpaid
obligations.

Prepare and present financial reports for all Chapter Board meetings.

Maintain the Chapter’s financial and legal records.

Be the main contact for the Chapter with the bank, reconciling the bank
statement with books monthly, and making sure bank signatory records are up to
date with Chapter’s current officers.

Work with the Chapter’s accountant to prepare the necessary state and federal
reports and ensure timely filing.

Submit required Chapter financial reports to the International Office on a timely
basis.

Prepare Chapter budget for coming year in the method prescribed by the
International and including any local chapter specifications.

Oversee any investments and CD’s Chapter may have.

Attend all Chapter Board meetings, assessing financial implications of proposed
actions and informing Board of these implications prior to any final decisions.

Attend at least one major ISPE event (preferably Annual Meeting) for the
purpose of keeping up with ISPE affairs and the latest in Chapter trends and
requirements.

Attend all Chapter meetings.
Appendix B
_________________
Date
Tracey Ryan
Affiliate Chapter Relations Manager
ISPE
600 N. Westshore Blvd., Suite 900
Tampa, Florida 33609
Dear Tracey:
We understand that the Internal Revenue Service (IRS) has determined that the
International Society for Pharmaceutical Engineering, Inc. (ISPE) is exempt from
federal income tax under Section 501 (c) 6 of the Internal Revenue Code.
We acknowledge that this Chapter is subject to the general supervision or control of
ISPE. Our fiscal year is January 1 through December 31, the same as the
International Society for Pharmaceutical Engineering, Inc. We authorize ISPE to
include the
(name of chapter)
in the request for group
exemption letter.
Sincerely,
____________________
President
ISPE ________________ Chapter
Appendix C
Sample Chart of Accounts for ISPE Chapters
ACCOUNT NUMBER
DESCRIPTION
ASSETS
1010
1011
1012
1500
1900
Checking Account
Savings Account
CD
Accounts Receivable
Other Assets
LIABILITIES
2100
2800
Accounts Payable
Fund Balance
INCOME
3100
3200
3300
3400
3500
3600
3700
3800
3900
Advertising
Contributions
Dues & Assessments
Interest
Meeting Revenue
Miscellaneous
Vendor Night Revenue
Nat’l Dues Reimbursement
Sponsorships
EXPENSES
5100
5125
5150
5175
5195
5200
5250
5300
5400
5500
5600
5700
5750
5800
5910
5975
5990
6000
6100
8000
Accounting Fees
Admin Fees
Bank Fees
Board/Committee Mtg. Costs
Depreciation
Equipment Rental
Vendor Show Expenses
Insurance
Legal Fees
Meeting Costs
Miscellaneous
Newsletter Expenses
Payroll Taxes
Postage
ISPE Reception Expenses
Salaries & Wages
Speaker Expenses
Supplies
Telephone
Travel/Transportation
Appendix D
EXAMPLE
Possible FINANCIAL CATEGORIES*
Income
Advertising -
All fees received for advertising in either newsletter or program materials.
Assessments -
Should it become necessary to assess Members a special fee for a particular
purpose, it would be reflected here.
Contributions -
Any contribution received from companies or other sources.
Int'l Reimburse -
Reimbursements received from ISPE.
Meeting Fees -
Revenue from all meetings and social events.
Vendor Fees -
Revenue from vendor show fees.
Expense
Accounting Fees -
Fees paid to accountants and bookkeepers.
Admin. Fees -
All fees paid to management companies or secretarial services for
administrative support.
Bank Fees/Charges -
All bank service charges. Do NOT include interest paid if you borrow
money.
Board/Com. Mtg. Costs -
Costs for AFFILIATE OR CHAPTER board and committee meetings
Equip Rental/Maint. -
Costs for renting and maintaining any office equipment other than
automobiles and trucks.
ISPE Reception Exp. -
Costs incurred when the Affiliate or Chapter hosts a reception at an
International event and it is not part of a regular Affiliate or Chapter
meeting.
Legal Fees -
Total legal fees paid to outside firms.
Meeting costs -
All facilities, food and beverage costs as well as printed materials
expense. Include fees paid for buses for plant tours in this category.
Newsletter Expense -
All expenses connected with newsletter and other informational material.
Do NOT include postage.
Other -
All items in this category should be detailed on an accompanying
schedule.
Postage/Shipping -
All postage, UPS, courier (international, national and local) and fees paid
to mail houses. Include P.O. Box expense as well.
Payroll Taxes -
Most Affiliates and Chapters will not have expenses in this category.
This is included for the future.
Appendix D
Salaries & Wages -
Most Affiliates and Chapters will not have expenses in this category. This
is included for the future.
Speaker Expenses -
All costs associated with obtaining speakers for meetings, including gifts,
travel reimbursements, and honoraria.
Supplies -
Include stationery, envelopes, miscellaneous office supplies and any
purchases for equipment under $1,000 (a piece of equipment costing in
excess of $1,000 will need to be depreciated. Check with your accountant
for information.)
Telephone -
Include answering service expense.
Travel & Transp. Exp. -
All expenses paid to officers and members to travel to Board, Committee
or ISPE International meetings.
*Provided as a possible categorization; not mandatory. Use a categorization that makes sense for
managing the business of your Affiliate/Chapter.
Appendix E
EXAMPLE*
ISPE ____________ Affiliate or CHAPTER
Balance Sheet as of 31 DECEMBER 201__
(current year)
Assets
12/31/201__
Checking Account
Savings Account
CDs
Other Investments
Accounts Receivable
Property & Equipment
Depreciation
Net Property & Equipment
Total Assets
(prior year)
12/31/201__
$0
$0
$0
$0
Liabilities
Accounts Payable
Unearned Income
Tax Liability
Total Liabilities
Fund Balance
Total Liabilities & Fund Balance
Definitions
 Accounts Receivable - Monies owed to the Affiliate or Chapter
 Accounts Payable˟ - (Include a schedule of any bills over $100)
 Unearned Income - Income collected for future meetings (Since we use
the accrual method of accounting, income for future meetings must be
deferred and actually earned during the month of the meeting. Your
accountant will assist you with this.)
˟Monies owed by the Affiliate or Chapter, accrued when the amount is known,
to be paid when due.
*Provided as an example only, not a mandatory format. Use the format that
makes the most sense for managing the business of your Affiliate/Chapter.
Appendix F
EXAMPLE*
ISPE _______________ Affiliate/CHAPTER
201__ YEAR END INCOME/EXPENSE STATEMENT
INCOME
(current year)
ACTUAL
(current year)
BUDGET
(prior year)
ACTUAL
MEMBERSHIP
Assessments
Contributions
Int'l Dues Reimbursements
TOTAL
$ --
$ --
$ --
PUBLICATIONS
Advertising Revenue
TOTAL
$ --
$ --
$ --
$ --
$ --
$ --
$ --
$ --
$ --
EXPENSE
MEMBERSHIP
Int'l Reception Cost
TOTAL
$ --
$ --
$ --
PUBLICATION
Newsletter
TOTAL
$ --
$ --
$ --
MEETING
Meeting Costs
Vendor Show Expenses
TOTAL
$ --
$ --
$ --
GENERAL EXPENSES
Accounting Fees
Administrative Costs
Bank Fees & Service Charges
Board /Committee Mtg. Costs
Equipment Rental
Legal Fees
Other
Postage/Shipping
Supplies
Telephone
Travel
TOTAL
TOTAL AFFILIATE/CHAPTER EXPENSE
NET INCOME (EXPENSE)
$ -$ -$ --
$ -$ -$ --
$ -$ -$ --
MEETINGS
Meeting Fees
Vendor Show
Sponsorships
TOTAL
MISCELLANEOUS INCOME*
TOTAL AFFILIATE/CHAPTER INCOME
*Provided as an example only, not a mandatory format. Use the format that makes the most sense for managing the business of
your Affiliate/Chapter.
Appendix G
EMPLOYEE OR INDEPENDENT CONTRACTOR?
Suggests Independent
Contractor
Instructions
Firm instructs on location, hours, methods, Absence of firm’s right to instruct on
etc., of service, or firm has right to do so
location, hours, methods, etc.
Training
Firm provides training
No training by firm
Integration
Worker’s services are integral part of firm’s Worker’s services are incidental to firm’s
operation and critical to firm’s success
operations
Services rendered Worker must render services personally
Worker can delegate or subcontract
personally
Hiring, supervising Worker may hire, supervise, pay assistants Worker has discretion to hire, supervise,
paying assistants only with firm’s approval
and pay assistants
Duration of
Lengthy, indefinite, or otherwise open
Limited in time or as to specific result
relationship
ended
Hours of work
Set by firm or inflexible
Set by worker
Amount of time
Substantially full time
Less than full time
required
Work place
Firm’s premises
Off premises of firm
Order or
Set by firm
Set by worker
sequence of work
Reports
Worker provides oral or written progress
No reports provided by worker
reports
Methods of
Hour, day, week or other measure of time Not time based: lump sum, piecework,
payment
etc.
Business/travel
Reimbursed by firm
Paid by worker without reimbursement
expense
Tools/materials
Provided by firm
Provided by worker
Significant
Firm provides facilities, equipment, etc.
Worker provides facilities, equipment,
investment
etc.
Realization of
Worker cannot realize profit or loss (risk
Worker has risk of loss (investment
profit or loss
of nonpayment not viewed as loss by IRS) /expenses, fixed price dependent on
outcome, etc.)
Work for multiple
Worker has exclusive relationship with
Worker has multiple clients
firms
firm
Making services
Worker doesn’t hold self out to public
Worker advertises or has own office,
available to public
has business cards, etc.
Firm’s right to
Firm can fire worker at will
Worker cannot be fired at will during
contract term/project without firm liable
fire
for breach
Worker’s right to
Worker may quit at will or be liable for
Worker must complete term/project
quit
breach of contract
Factor
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Suggests Employment
Source: ASAE Dollars + Cents Newsletter
Appendix H
Records Retention Schedule
Accounts Payable Ledgers
7 Years
Accounts Receivable Ledgers
7 Years
Audit Reports
Permanently
Bank Reconciliation’s & Statements
3 Years
Cash Records
Permanently
Charts of Accounts
Permanently
Checks (canceled-with exception noted below)
3 Years
Checks (for payments for taxes,
purchases of property, major investments)
Permanently
Correspondence (General)
2 Years
Credit Card Receipts
2 Years
Depreciation Schedules
Permanently
Financial Statements (Year End)
Permanently
General Ledgers/ Year End/Trial Balance
Permanently
Invoices (to customers/from vendors)
3 Years
Minute Books
Permanently
Petty Cash Vouchers
3 Years
Tax Returns and Worksheets
Permanently
Appendix I
ISPE Affiliate/CHAPTER FINANCIAL CALENDAR/REPORTING
REQUIREMENTS
31 March
An accrual based Income/Expense Statement and Balance Sheet in
U.S. dollars sent to ISPE International office for the previous year.
1 April
Submit Corporate Report to state authorities. (This date may vary by
state. Check with your local accountant.)
15 May
1.
Send completed 990 (along with 990T and/or Schedule A if required) to
IRS (and state government if required).
2.
Send copy of 990 (and 990T) to ISPE Headquarters.
3.
State tax return (Due date and specific return requirements vary by
state. Please check with your local accountant.)
15 July
Letter (on chapter letterhead, if possible) signed by Chapter President
sent to ISPE Headquarters requesting continued inclusion in ISPE's
group exemption for either 501 (c) 3 or (c) 6. (See Appendix B)