Fiscal Policy Manual

Greenville

Society for Human Resource Management

(Initial version created September 18, 2012)

Revised January 26, 2013

Revised January 28, 2013

Revised June 21, 2013

GSHRM Board of Directors

  1. GENERAL
  1. The operation and management of the financial affairs of Greenville Society for Human Resource Management (GSHRM) shall be vested with the Board of Directors.
  1. Fiduciary duty and responsibility shall be shared by members of the Board, Chapter Operations Director, committees, and task forces.
  1. Board members shall serve as models for financialresponsibility and sound fiscal management in conducting GSHRM business.
  1. The fiscal year for GSHRM is January 1 through December 31. Financial records of GSHRM shall be maintained on a fiscal year basis.
  1. All business financial accounts for GSHRM shall be in the name of the Greenville Society for Human Resource Management. The current accounts include the: GSHRM operating account, GSHRM investment accounts.[DB1]
  1. The Treasurer is responsible for the management of GSHRM financial assets, income, and expenses.In that capacity, the Treasurer chairs the Finance Committee, which consists of the: Treasurer, President, President-Elect, Past President, and Chapter Operations Director.
  1. GSHRM is a not for profit corporation and is classified as a 501(c)6organization with regard to federal income tax. All records of classification are housed with the Chapter Operations Director.

8.For state tax purposes, GSHRM is exempt from income tax, but may be required to pay sales tax on products and services which are considered on a state by state basis.

The Treasurer shall present a written report related to GSHRM finances at the annual business meeting of GSHRM.[DB2]

  1. The Treasurer shall ensure the periodic development and board review of financial policies and procedures and shall maintain a timeline for finance-related critical action items.
  1. The Finance Committee will address significant financial issues impacting the organization and recommend action to the Board of Directors via the Treasurer.

B.ADMINISTRATIVE PROCEDURES

1.The accounting system for GSHRM general and reserve funds shall be on a cash accounting basis.Credit card receipts are recorded when credit card statement is received.

  1. The GSHRM balanced budget is a zero based structure, and is re-created each fiscal year. All budget line items expire at the end of the fiscal year, when a new budget is created.An exception is made with the GSHRM scholarship account where funds carryover year-to-year.

3.For internal control purposes, the receipt and disbursement/transfer of funds shall be handled by separate personnel. The Chapter Operations Director shall handle the deposit of all funds for Association activities. The Treasurer, the Chapter Operations Director, and the GSHRM President shall handle all disbursements of Association funds. Transfers of funds for GSHRM shall be the responsibility of the Chapter Operations Director upon the direction of the Treasurer or the Finance Committee. The GSHRM President, Chapter Operations Director, and the Treasurer shall be the signatories on GSHRM accounts. [DB3]

  1. Any check payable to one of the signatories shall be signed by an authorized person other than the payee.
  1. Any disbursement shall be made only upon review and approval of the transaction by an authorized signatory. This will include review of the supporting documentation and evidence of receipt of the specified goods and services.
  1. All funds for anyGSHRM activity shall be sent to the GSHRM Treasurerwithin five business days of receipt for deposit into the appropriate GSHRM account. The GSHRMTreasurershall deposit funds within ten business days of receipt.
  2. All contractors or service providers and consultants shall be paid at the end of the month or quarter, dependent upon the specified written agreement.All disbursed monies are expected to be cashed within a reasonable period of time for example, within 60 days. This is in order to avoid checks being held too long.[DB4]
  1. Upon completion of GSHRM federal tax returns, the financial records for GSHRM and conference accounts shall be maintained at the GSHRMTreasurerChapter Operations Director.

9.GSHRM The Chapter Operations Director shall maintain current inventory records of GSHRM capital equipment including date/amount of purchase, disposition of equipment, model/serial numbers, etc.[DB5]

  1. When possible, purchases of or estimated expenses for goods and services in excess of $1,000.00 should have three competitive bids solicited for consideration.
  1. All required invoices are produced and distributed by the GSHRMTreasurer.

C. ACCOUNTING AND LEGAL PROCEDURES

  1. The Finance Committee, subject to Board approval, shall retain the services of a professional accounting firm for preparation of GSHRM tax returns and tax/accounting consultation.
  1. A financial record audit will be conducted is recommended on an annual basis. The financial record audit is to be completed externally by a Certified Public Accountanting firm. In the external audit all GSHRM accounts are to be reviewed at the same time. The current accounts include: GSHRM operating, scholarship, investment and 2 annualconference accounts. This helps assure some type of system check regarding the reliability of the budgetary and general ledger processes.
  1. The Treasurerand Chapter Operations Director are is responsible for ensuring that financial reports and tax returns required by state and federal agencies are filed by the appropriate deadlines. The Auditor files such documents on a timely basis to the IRS.
  1. The Treasurerand Chapter Operations Director shall ensure that Association finances are maintained and accounted for using well-known electronic accounting systems (e.g. Quicken, QuickBooks) that are sophisticated enough to meet the financial record keeping, reporting and audit needs of GSHRM.
  1. Operating funds are classified as those funds expected to be spent in the normal course of business during the current budget year. These funds may be kept in a checking account or other suitable format. Excess funds should be transferred to the reserve fund whenever possible to insure the best return on investment.

D. BUDGET DEVELOPMENT AND GUIDELINES

  1. Committee chairs will develop budget proposals at the direction of the President and based upon guidelines established by the Treasurer. These budget proposals shall reflect anticipated operating expenses in sufficient specificity for the Board to review and compose a proposedbudget. The budget proposal is presented to the board and finalized at the (insert month) board meeting. Once the budget is approved, the Treasurer will notify appropriate Board members and provide quarterly reports regarding the status of committee budgets. Board members will then communicate budgetary information to committee chairs.
  1. The Finance Committee shall develop a preliminary budget proposal with supporting analysis to be presented at the first board meeting of the fiscal year. This proposal shall include expected income line items, expected Chapter Administrative Operations Director and Board expense line items, an initial minimum allocation for each standing committee, and, as possible, a committee contingency fund that will be used for later committee funding decisions.
  1. The Finance Committee is responsible for budgetary development and management. The Treasureroversees and reportson budget issues.
  1. The budget proposal shall reflect a balance between income and expenses. Should proposed expenses exceed income, then allowances for the transfer of reserve funds must be established.
  1. The Board will review the proposedbudget and approve GSHRM operating budget for the current fiscal year at the firstboard meeting of the fiscal year. All Chapter Operations Director/Board expense line items will be firm with that decision and income will meet or exceed that decision. Committee expense lines may be increased after committee/network budget requests are developed at the beginning of the new fiscal year.
  1. The Treasurer shall ensure that the chart of accounts accurately reflects the financial transaction patterns of GSHRM and provides sufficient line item detail for coding and appropriate analysis.
  1. Each committee chair shall be responsible for monitoring committee/network expenses to ensure the allocation is not exceeded. Requests for additional operating funds to support new committee initiatives or unanticipated committee expenses shall be presented, with justification, for Board approval consideration.
  1. Each board member is responsible for maintaining his/her specific budget and expenses with documentation to be presented at the time of expenditure to the Treasurer and at each board meeting. The Treasurer is also responsible for maintaining the entire GSHRM accounts with original copies, or an equivalent copy, of expenditure receipts.
  1. The Board may revise the adopted budget during the fiscal year in order to accommodate new initiatives or unanticipated expenses. Such revisions must support the principle of a balanced operating budget.
  1. The Treasurer shall provide copies of the approved budget and any revisions to Board members and committee chairs.
  1. The Treasurer shall provide reports to the Board on a regular basis and/or at each board meeting that indicate actual income and expenses compared with the approved budget.
  1. GSHRM maintains open financial records for auditor and membership review. All financial records are available from the Treasurer. or GSHRM the Chapter Operations Director.
  1. The Treasurer shall issue a final budget report at the end of the fiscal year indicating actual income and expense amounts compared with budgeted amounts. A summary shall also be posted on the GSHRM web site within thirty days of its submission to and approval by the Board.
  1. All board members and committees for GSHRM must provide to the GSHRM board itemized program expenses and income at board meeting reports and as requested.

E. EXPENSE REIMBURSEMENT

  1. Board, committee and task force members will be reimbursed by GSHRMfor authorized expenses incurred in the performance of GSHRM business. Good judgment in incurring expenses on behalf of GSHRM is expected and approval will not be given for expenses that exceed reasonable limits and are not consistent with GSHRM policies. Questions concerning policies or procedures should be directed to the Treasurer or GSHRMChapter President Operations Director. All expenses for travel related GSHRM business must comply with the GSHRM travel policy.
  1. Reasonable expenses shall include charges for travel, lodging, meals, and telecommunications. Please refer to the GSHRM Travel Policy and instructions.
  1. Spouses’ and guests’travel expenses are not reimbursable nor covered by GSHRM.
  1. Expense reimbursement must be claimed using the GSHRM Expense Report. The Treasurer shall insure that a current expense form with instructions is readily available.
  1. Charges for supplies, postage, printing and other appropriate charges that are pre-authorized and consistent with the operations of GSHRM may be made. In all cases, prudent judgment and pre-planning whenever possible are expected to minimize the costs.
  1. Any items that are charged to printing on behalf of GSHRMmust be approved in advance of the expenditure by the Chapter President and is to be cleared through the GSHRM Chapter Operations Director or and the Treasurerprior to execution.
  1. Individual original receipts or photocopies of original receipts and other supporting documentation are necessary for validation of expense claims. While receipts for any expense are preferred, they are required for all expenses over $10.00. These expenses shall be submitted to the Treasurer for reimbursement.
  1. For internal control purposes, each expense report will require two signatures, that of the person seeking reimbursement and the person providing oversight for that function. For example, committee and task force members will need the signatures of their respective chair. Committee and task force chairs will need the signature or written authorizationof their respective Board liaison. Board members must sign their expense reports along with the Treasurer. The Treasurer’s expense reports will also be signed by the President and the President’s expense reports will be approved by the Treasurer or Chapter Operations Director.
  1. Expense forms should be submitted within thirty business days to the Treasurer with appropriate receipts, information, and signatures to guarantee reimbursement.
  1. INVESTMENTS

1. The Treasurer and the Finance Committee shall conduct periodic reviews on the investment plan that are consistent with the GSHRM mission and enhance the financial well-being of GSHRM. This plan shall take into account the GSHRM strategic plan, current market conditions, Association financial goals, targeted GSHRMallocations, and investment advising options, and shall be presented to the Board annually for approval.

2. The Finance Committee with the support of the GSHRMBoard shall take principal responsibility for the investment strategies of GSHRM, guided by professional advisors as needed.

3. Reserve funds consist of those funds not encumbered for day-to-day operations and are targeted for long-term investment. The purpose of the reserve fund is to provide financial stability to GSHRM and a growing stream of revenue to help GSHRM in fulfilling its mission.

4. The primary objective of the reserve fund is to maintain one year of operating funds to offset any unsuccessful fiscal year. The long-term objective of the reserve fund is to maximize capital gains, interest and dividend income on available funds while reducing risk with a balance of diversification and prudent management to achieve safety, liquidity, and favorable total returns.

5. Decisions regarding transferring of monies from reserve funds to operating funds and/or from operating funds to reserve funds require prior authorization from the Board of Directors.

  1. CAPITAL EXPENDITURES
  1. A capital acquisition is defined as an individual asset or class of assets that has a useful life of more than one year and a cost of $500.00 1,000 or more.
  1. Anticipated capital acquisitions shall be included in the normal budgetary process. The budget shall reflect purchase requests for all new and replacement options.
  1. Capital expenditures require the prior approval of the Board.
  1. Capital expenditures shall follow competitive bidding or comparative pricing using at least three vendors whenever possible.
  1. Dissolution of capital assets requires prior Board approval.

H. POLICY CHANGES

  1. The Treasurer will maintain GSHRM’s Fiscal Policy Manual and update the document as needed.
  1. Any changes to the Fiscal Policy Manual will be submitted to the Treasurer.
  1. The Treasurer will present potential changes to the Board of Directors for approval. In general, these changes will be approved at the final board meeting of the fiscal year.

APPENDICES

  1. Expense Report Form: used for most situations, to request payment of a personal or organizational expense for travel or other GSHRM expenses
  1. In-Kind Report: used to document personal or organizational contributions that cover otherwise GSHRM-reimbursed costs (necessary for future budgeting calculations)
  1. Check Authorization Request: used when no receipt, invoice, or other documentation is available (speaker requests, administrative management fee payments, etc.)

1

Greenville Society for Human Resource Management EXPENSE REPORT
Please read current instructions, available separately from GSHRM Office. Date and Sign Form before submitting.
Name / Make Check Payable To:
Employer / Send Check To:
STATE PURPOSE OF TRIP AND ITINERARY
Date / / / / / / / / / / / / / / / / / / / / / / TOTALS
Lodging
Breakfast (incl. tip)
Lunch (incl. tip)
Dinner (incl. tip)
Air/Rail/Bus
Auto Rental
Auto Personal
Parking & Tolls
Subway/Taxi (incl. tips)
Telephone
Photocopies
Misc./Other Expenses
TOTAL EXPENSES
Please explain all items per current instructions available separately from
GSHRM Office (Attach additional sheets if required) / Date / ADVANCES
Type Amount
ACCOUNTING RECAPITULATION / TOTAL ADVANCES
(Deduct from Total Disbursements Above)
Account Chargeable Account No. Amount / BALANCE DUE
To Representative:
To GSHRM:
Audited by: / Proof Total:
Person Submitting Report: / Date:
Person Responsible for Account: / Date:
Treasurer or Conference Business Manager: / Date:
Refund: Acknowledgement of Refund to GSHRM Cash ______Personal Check ______Reimbursement Check No. ______

Revised 07/07 - plb

GSHRM TRAVEL POLICY AND INSTRUCTIONS

GSHRM will reimburse members for all reasonable and authorized expenses incurred by individuals involved in the conduct of regular, authorized GSHRM activities. Members are expected to exercise good judgment in incurring expenses on GSHRM’s behalf. In-Kind contributions are appreciated. Please complete & submit the In-Kind forms as appropriate for GSHRM record-keeping. Approval will not be given for expenses that exceed reasonable limits. Questions concerning these policies or procedures should be directed to the President or the Treasureprior to the expenditure.

PROCEDURES

1. Reimbursement should be claimed for expenses incurred by submission of an Expense Report only. Expense Reports require the signature of both the individual submitting the form and the individual responsible for the account. For officers and board members attending board meetings and committee chairs, the individual responsible for the account is the Treasurer. For the Treasurer, the President is responsible. For committee members, responsibility lies with the committee chair. The original Expense Report, along with required receipts, is then to be forwarded to the Treasurer for final approval and payment. Conference committee Expense Reports are to be sent to the Conference Business Manager for approval and payment. Expense Reports must be submitted within 30 days from date of expense.

2. Original receipts must be attached to Expense Reports for lodging, meals, commercial transportation, and other single expenditures amounting to $10 or more; receipts for single expenditures of less than $10 are appreciated.

3. When submitting expenses to be charged to separate budget accounts, expenses must be listed separately on the Expense Report and the appropriate account name or sub-code indicated. Original receipts must be attached.