Vice-President – Finance

Job Description

Sponsor: President

The responsibilities of the VP – Finance are:

  1. Prepare and maintain financial records of all Chapter moneys received from dues, dinner meeting payments, etc., and pay all bills. Promptly deposit all funds received.
  2. Develop an annual operating budget for the fiscal year for approval by the Board.
  3. Prepare financial reports on the activities and financial status of the Chapter.
  4. Manage all financial arrangements for meetings and special events, including the registration desk, collection of fees, and payment to the meeting place.
  5. All Contracts must be reviewed by the Board of Directors and signed by two board members; one signature for approval must be the VP Finance.
  6. Prepare all tax and financial reports for the Chapter as required by PMI and by local, state, and federal governments.
  7. File Form 990 or Form 990-EZ, as appropriate, each year with the Internal Revenue Service (IRS).
  8. Coordinate the independent financial audit with the President and the appointed auditor.
  9. Provide Form 1099-Misc. as required.
  10. Establish and monitor Chapter compliance with the IRS tax code and “Tax Exempt Certificate” use.
  11. Prepare the Chapter Annual Report for submission to PMI Headquarters.
  12. Prepare submissions for PMI awards.
  13. Support a complete and timely turnover of Chapter records to the position’s successor.
  14. File the Annual Report with the Ohio Department of Taxation if required by the Articles of Incorporation.
  15. File with the State of Ohio for “Continued Existence” as required (every five years – next due 5/2014).
  16. Maintain records such that they are available for inspection for a period of not less than seven years.
  17. Submit the Chapter’s insurance coverage payment to PMI Headquarters in a timely manner.
  18. Ensure continued coverage under the liability insurance policy provisioned by PMI.
  19. Perform other duties as requested by the President.

Organization Chart

Budgeting

Sponsor: VP – Finance

Based on the tactical plan, each function (officer) develops a budget request identifying funding that will be required to support attainment of the approved tactical objectives. All planned revenue and expense must be accounted for.

The individual budgets are rolled up to create the Chapter’s financial plan, which is maintained by the VP – Finance. Financial reports showing Actual versus Plan and the Net Worth of the Chapter are available for review at the monthly Board meetings.

Budgets are submitted by each officer with their tactical plans and follow the same ratification or change process used for the tactical plans. Approval of all tactical plans and budgets is required by December 1. All approved budgets are rolled up to create the Chapter’s Annual Financial Plan, which is available for review and approval prior to year-end.

Expense Reimbursement

Sponsor: VP – Finance

Expense reimbursement forms are used by the Board for reimbursement of PMI-approved expenses only. All expenses incurred in the name of the Southwest Ohio Chapter must be documented by a copy of a receipt for that expense.

A Request for Payment form must be sent to the VP – Finance and copied to the Bookkeeper/ Accountant for final reimbursement.

Finances

Sponsor: VP – Finance

The fiscal year shall extend from January 1 to December 31.

Annual membership dues shall be set by the Chapter Board of Directors and communicated to PMI in accordance with policies and procedures established by the PMI Board of Directors.

The Chapter Board shall establish policies and procedures to govern the management of its finances, and the VP – Finance shall submit required tax filings to appropriate government authorities.

All dues billings, collections, and disbursements shall be performed by PMI.

Financial records shall be reviewed on an annual basis as directed by the President. The review shall be conducted at the close of each fiscal year by an outside entity. The Chapter shall set and arrange for collection of local dues per PMI procedures.

The incoming Board members, in consultation with the outgoing officers, shall prepare a draft budget with a supporting tactical plan for the activities and programs they would like to pursue.

The VP – Finance shall consolidate the individual drafts into a Chapter budget and shall forward a copy of the issued Chapter budget to the Board and outgoing officers no later than one week prior to the joint Officer Transition meeting.

The draft Chapter budget upon review, modification, and approval of the Board shall become the Chapter budget for the fiscal year. Upon budget approval, the respective Chapter officers are commissioned to enact the approved activities and programs.

Financial Controls

Accounting for the Chapter’s finances shall conform in general to the recommended practices of the American Institute of Certified Public Accountants. The VP – Finance shall submit periodic statements of accounts to the Board.

The VP – Finance shall close the books at the end of the Chapter fiscal year and prepare the annual financial report by January 15. The President shall direct a review of the previous year’s books. The review shall be presented for Board approval by the VP – Finance on or before the February Board meeting.

Expenditures shall be handled by the VP – Finance except as otherwise provided herein. In all cases, expenditures shall be made in accordance with the budget. The expenditures shall not exceed the approved Chapter budget by more than ten percent, except with Board approval.

The President and VP – Finance shall have signature authority.

Mail

Sponsor: VP – Finance

The scope of this policy is mail sent through the U.S. Postal Service and includes receipt, distribution, and change management.

Receipt of Mail

The standard, official mailing address for the Chapter is:

PMI Southwest Ohio Chapter

P.O. Box 42107

Cincinnati, OH 45242

Distribution of Mail

Mail shall be picked up from the above location and distributed to the appropriate recipients as soon as practically possible; the goal is once per week. This shall be the responsibility of the VP – Finance.

While this will satisfy most casual mail, critical mail (e.g., invoices, checks/money orders, vendor bids, etc.) may require special handling. Officers and/or Board members who require more expeditious mail receipt may use the P.O. Box address listed on the Chapter web site and direct their suppliers to address business to them.

Guidelines for Reimbursement of Mail Box Rentals

  • Contract shall not exceed 12 months or the term of the Chapter.
  • Cost shall not exceed $100 per year, per mailbox. Charges in excess shall be approved by the Board.
  • For reimbursement, expense shall be reported on the Chapter’s Request for Payment form and submitted to the VP – Finance with a receipt attached.

Meeting and Seminar Refunds

Sponsor: VP – Finance

For regular monthly Chapter meetings and PMI seminars, the policy for cancellation refunds is as follows:

  • Notice shall be received by the Meeting Registrar at least 72 hours before the day of the meeting or seminar for the registrant to receive a 100 percent refund.
  • There shall be no partial refunds for these events.

For the Project Management Professional (PMP) Training Seminar, the policy for cancellation refunds is as follows:

  • If the registrant’s cancellation notice is received one week before the day of the first class, a 100 percent refund shall be given.
  • If a student cancels after that time or after the first class, a $200 cancellation fee shall be deducted from the registration fees.
  • The student may keep the seminar books after cancellation, provided he or she attended the first class.
  • If a student cancels after the second class, then no refunds shall be offered.

Request for Payment Form

Sponsor: VP – Finance

The Request for Payment (RFP) form is used by Chapter Board members to request that a payment be made from the VP – Finance to a vendor for services rendered or to an individual who incurred expenses on behalf of the Chapter.

The RFP form should be filled out by the individual who incurred the expense within five business days of incurring the expense or receiving an invoice for services to the Chapter. Receipts for payment should be mailed to the Chapter post office box as soon as possible for back-up records.

The VP – Finance will not issue a check for payment without a properly documented request for payment. The RFP form feeds the expenses incurred by the Chapter to the accounting records.

Spending and Reserves

Sponsor: VP – Finance

Financial Philosophy

The Chapter’s overall financial philosophy includes these principles:

  • Manage Chapter funds to remain solvent.
  • Maintain reserves to cover required operational costs for two years in the event of circumstances that eliminate all income.
  • Maintain reserves in alignment with non-profit industry standards.
  • Use the Chapter’s excess funds (those available over and above annual operational budget requirements and excess reserves) to improve member value.
  • Operate annually on a break-even basis, using excess income to improve member value.

Reserves Policy

The Chapter’s reserves policy is as follows:

  • The Southwest Ohio Chapter shall maintain reserves of 30% of last year’s budget or $100,000 whichever is greater.

Spending Policy

The Chapter’s spending policy is as follows:

  • A balanced operating budget shall be prepared annually, and spending shall be managed to the budget. Budgets are based on best estimates of income and expenses by each elected Board member and may be adjusted quarterly to achieve objectives stated in the Financial Philosophy.
  • Proposals for spending over and above budgeted expenses shall require a proposal to and approval by the Board and must include, at a minimum:
  • Objectives
  • Short- and long-term funding requirements
  • Excess reserves shall be allocated based on proposals presented to and approved by the Board.
  • Excess income shall be identified through quarterly reviews and allocated based on proposals presented to and approved by the Board.

Student Attendance Fees for Chapter Meetings

Sponsor: VP – Finance

The Student rate for the Chapter’s monthly meetings is set at $15.00 per meeting. Student non-members are charged $15.00 per meeting.

Student rates for other Chapter programs, such as the PMI seminars, Project Management Professional (PMP) Training, etc., shall be established by the Vice-President in charge of the specific program.

Students must identify themselves at the registration desk prior to the meeting by presenting a valid student ID from the university they are attending as full-time students. If proof cannot be produced of student status, the regular meeting admission amount shall be charged.

Accountant

Sponsor: VP – Finance

Responsibilities of the Bookkeeper/Accountant are:

  1. Receive approved expense documents from the VP – Finance with check numbers for entry into QuickBooks system.
  2. May receive expense documents from other PMI members; forward these to VP – Finance for approval and assignment of check number.
  3. Receive notification of deposits made by VP – Finance and record them into QuickBooks system.
  4. Receive monthly bank statements from VP – Finance and reconcile them with register in QuickBooks system on a monthly basis.
  5. Prepare reconciliation report on a monthly basis and forward it to the VP – Finance.
  6. Prepare monthly balance sheets and Profit & Loss by Class report once the account is reconciled each month.
  7. Forward reports to VP – Finance for approval.
  8. Distribute approved reports to Board members prior to the monthly Board meeting.
  9. Prepare other reports as requested by the VP – Finance and as routed by the VP from other Chapter officers and Chapter members.

Vice-President – Finance

Checklist

Transition Checklist: VP – Finance

It is important for the VP – Finance to have a good understanding of the function’s on-going operations and access to relevant information. Here is a standard checklist of necessary records and resources:

Access to the Chapter’s strategic plan, policies/procedures, and job descriptions for all officers

Access to the PMI Component Leadership Online Community on a regular basis:

Weekly editions of PMI Headquarters’ Friday FACTS via e-mail

Access to the Chapter’s Transaction Report via the Chapter’s monthly Data Exchange Program (DEP). This report details all Chapter dues processed by PMI Headquarters within a specific month.

  • Ensure you have access to the Chapter’s monthly DEP. Access the DEP by logging on to your PMI membership record at the Members’ Log-In at
  • Read the information on how to use the DEP (DEP Frequently Asked Questions, User’s Manual).
  • Review and understand the Membership and Prospect Database Information policy, which governs use of the membership information contained within the DEP.

Chapter’s Bank Account Administration

Copies of all Chapter bank statements, account information, etc.

Check signature card(s)

Checkbook and transaction log

Documents/statements of other investments

Coordination of Chapter’s monthly ACH transactions from PMI Headquarters

Chapter’s Budget and Financial Records

Budget for the past year and upcoming year

Income statement and other financial records for the past several years

Audited financial statements

Chapter’s Tax Filing

Employer Identification Number (EIN) or Tax Identification Number

Request to participate in PMI Headquarters’ Group Tax Exemption program or separate determination letter of tax-exempt status for the Chapter

Documentation/records on state tax exemption

Copies of all past-year tax returns

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PMI SWOC Reference Documents List