How to handle funds
a. The Financial Secretary (Treasurer, if no Financial Secretary) shall kept at duplicate prenumbered receipt books and record all funds received in the name of the chapter, regardless of
the source. This includes National and Regional Dues, other fees due National Office, Fund
Raising Project receipts, Chapter Budgets, etc. These funds shall be turned over to the Treasurer
with a statement indicating the source of the funds.
b. The Treasurer shall receive funds from the Financial Secretary and deposit funds, intact, to the
account of the Fraternity Chapter.
c. In order to withdraw funds which have been properly budgeted, a requisition for payment
voucher should be prepared by the Financial Secretary and signed by the President and the
Treasurer. A check should then be issued, signed by the Treasurer, the President and the Advisor
to the Collegiate chapter.
d. If an item does not appear in the Budget, approval for such disbursement from the contingency
fund should be secured from the chapter President and any other two chapter Officers or the
Finance Committee as agreed upon by the Chapter.
What Reports to make
a. Bank statements should be reconciled each month by the Treasurer. A monthly statement
should be given to the chapter reflecting the beginning balances of cash, cash receipts, cash
disbursements, and new cash balance at date of statement. The monthly statement when
compared with the budget will give the Officers more guidance on the financial operation of the
chapter.
b. The Financial Secretary (Treasurer, if none) shall keep a financial record of each Brother.
(Individual membership ledger)
c. Savings account should be included in the monthly report
d. Report on any fund raising projects
What Records should be kept
a.
b.
c.
d.
Duplicate pre-numbered receipt book
Cash receipt and Cash disbursement Book
Financial record of individual Brothers
Bank records-duplicate deposit slips, bank statements and cancelled checks, and debit and
credit memoranda.
Developing a Budget
Who makes the Budget?
Each Chapter should have a Finance and/or Budget Committee. One of its duties is the
development of a budget. The Treasurer and the Financial Secretary should be members of this
committee. The following data should be made available to this Committee:
a.
b.
c.
d.
Planned program activities
Estimated number of financial brothers
Planned fund raising projects
Other Sources (funds from the graduate chapters, Pan-Hellenic Council, etc.)
When should the Budget be made?
The Chapter should prepare a budget prior to the beginning of its business year. If this is not
possible, the budget should be completed during the first month of the business year and approved by
the Chapter in order that the Chapter might begin operating under the budget immediately. It is also
necessary to complete the budget so that dues for the year can be determined.
How is the Budget made?
Essentially there are two parts to a budget: 1) Estimated Receipts, and 2) Estimated
Disbursements. These amounts are estimated for the business year.
Receipts: The main source of income for the Chapter operation are dues (Chapter budget), initiation
fees, assessments, and fund raising projects, etc.
Disbursements: The items for which money is to be spent will depend upon the program of activities of
the Chapter, during the year, general operating expenses and the amount to be spent on National and
Regional activities associated with the Chapters.
Often it is necessary to first list the items and amount the Chapter would like to spend, total items and
divide by the estimated number of Brothers who will financially support the Chapter in order to
determine dues (Chapter budget). If this amount proves too large, then some items of expenses must
be eliminated unless special projects are planned to bring in more income.
Administration and Control
Fund Management
The officers of the Chapter have a responsibility to manage funds within the budget in accordance with
the following procedures:
1. Money can only be spent for budgeted items if it has been collected and is on hand. Approval of
the budget by the Chapter does not necessarily indicate that funds are available because all
brothers may not have paid dues (Chapter budget) in full in advance nor will income from
special projects be available at the beginning of the budget year. Before each disbursement or
commitment the Treasurer should make known the funds which are available.
2. Regular monthly reporting of receipts and disbursements and cash balances by the Treasurer
will permit more adequate decisions about disbursements of funds.
3. All disbursements should be made by check, and invoices or supporting evidence to substantiate
payment.
4. After the disbursement is approved, vouchers are made and signed by the designated Officers
and presented to the Treasurer. The check is prepared and signed by the Treasurer and
countersigned by the President and Advisor.
5. If a PETTY CASH fund is used, a check should be made payable to one particular person, receipts
showing how the money was spent should be presented periodically.
6. Emergency disbursements should be approved by the Chapter, by the President and one other
Officer who reports to the Chapter. The CONTINGENCY FUND is used for this purpose.
Handling Money
1. Checking accounts
In order to open a bank account, an application has to be made a submitted to the bank. Often a
copy of the miniutes or a resolution showing which Officers are authorized to withdraw and/or sign
checks is required. Regular accounts, rather than special checking accounts are recommended so as to
be entitled to monthly statements. However, it is advisable that you discuss the type of checking
account that would best serve the needs of your chapter with the bank officials.
2. Savings Accounts
Saving accounts are opened in the same manner as checking accounts.
3. Financial Officers
Every chapter should bond its financial officers and advisor who sign checks. Surety Bonds may
be secured through a local insurance broker. Bonds should be deposited with the National Office.
4. Auditing
The financial records of the chapter should be audited at least once a year, and written report of
the financial condition of the chapter made. It is often necessary and desirable to audit (fund raising)
project accounts immediately thereafter.