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TODAY’S HOST

AFSCME 41 st INTERNATIONAL CONVENTION CHICAGO, ILLINOIS FINANCIAL STANDARDS CODE JULY 13, 2014. Laura Reyes, Secretary-Treasurer, AFSCME International. TODAY’S HOST. Charles Jurgonis, Director, Financial Services

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TODAY’S HOST

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  1. AFSCME 41st INTERNATIONAL CONVENTIONCHICAGO, ILLINOISFINANCIAL STANDARDS CODE JULY 13, 2014

  2. Laura Reyes, Secretary-Treasurer, AFSCME International TODAY’S HOST

  3. Charles Jurgonis, Director, Financial Services • Jeff Taggart, Associate Director, Auditing & Accounting • Karen Tyler, Assistant Director, Auditing Additional Hosts

  4. PRESENTERS William Del Pino Cathy German AFSCME AUDITORS

  5. PRESENTERS CONTACT INFORMATION William Del Pinowdelpino@afscme.org Cathy Germancgerman@afscme.org

  6. Today’s Topic THE AFSCME FINANCIAL STANDARDS CODE - 2013 REVISED Financial Standards Code

  7. AFSCME FINANCIAL STANDARDS CODE • Adopted by International Executive Board • Part of AFSCME IU Constitution

  8. 2013 AFSCME FINANCIAL STANDARDS CODE • Article I - Article XI • Appendices • Glossary of Terms • Trustees Audit Guide • Trustee Audit Checklist

  9. Article I - Purpose and Scope EstablishMinimum Standards for the Handling of Fundsand Records Maintenance

  10. Article II - Custody of Funds Bank Accounts Should Be: • In Federally Insured Institutions • In Name of Union • ContainUnionFundsOnly

  11. Investments Union Officers Have aFiduciary ResponsibilitytoManageandInvestUnion Funds Prudentlyin AccordancewithUnion Policies

  12. InvestmentsApproved Investments: • InsuredBank Accounts • Insured Government Investments • Other Investments Approved by Executive Board

  13. The Following Investments Are Not Allowed : • Purchase of Lottery Tickets or Other GamingActivities • Investment in Any Illegal Activities

  14. InvestmentsSafest Investments Available: • Treasury Bills • Certificates of Deposit • Government Notes and Bonds

  15. Petty Cash Fund • Executive Board Sets Fund Amount, Selects Custodian and writes Check to the Custodian To Initiate Fund • Petty Cash Receipts Maintained to Document Expenditures From Fund • Record Expenses in Petty Cash Journal • Maximum Petty Cash Fund$100.00

  16. Article IIIMaintaining Records

  17. Transaction RecordsCashbook or Journals AreRequired • Manual Cash Book • Receipts & Disbursements Journal • Computerized Cash Book

  18. Income Documentation • Copies of Transmittal,RemittanceAdviceor Membership Documents • Make a Copy of all Checks Received • Keep a Copy of the Deposit Slips • Deposit Funds Promptly infull

  19. Bank RecordsBank Statements & Canceled Checks: • Keep Checks With Bank Statements • Reconcile Bank Statements Monthly • Request Missing Checks or Bank Statements • Verify Deposits to Deposit Slips

  20. Bank RecordsCheck Stubs & Voided Checks: VOID • Before Storing a Voided Check, Write “Void” Across the CheckinInkand Tear Off the Signature Portion • Retain All Void Checks

  21. Paid Bill Records Paid Bills or Invoices- When Signing Checks, Write theDatePaid, AmountPaid,andCheckNumberon Your Copy of Bill or Invoice

  22. Dues Payment Records • International & Council Per Capita Tax Reports • Dues Deduction Rosters • Council Rebate Transmittal

  23. Reimbursement Records All Officer and Employee ExpenseReports and All Receipts for Expenses Reimbursed

  24. Petty Cash Records Records of Petty Cash Expenditures - Petty Cash Slips - Receipts - Petty Cash Journal

  25. Payroll Records • IRS Form 941s • IRS Form 940s • IRS Form W-2s • Required State & Local Payroll Reporting

  26. Financial Records • Financial Reports Prepared for the Membership or Executive Board • Federal Reports Filed With the IRS(including Payroll) or U.S. Department of Labor

  27. Financial Records • Copies of Financial Reports Filed with the International Union:- Surety Bond Report- Local Union Annual Financial Report (LUAFR) • Surety BondCertificate of Coverage

  28. Financial Records Mortgages, Loan Agreements, Lease Agreements, Lease-Purchase or Time-Payment Contracts, and anything Which Involves a Financial Obligation on the Part of the Affiliate.

  29. Financial Records All Documents Constituting Evidenceof Ownership by the Local Union of Any Property or Equipment

  30. Financial Records • Minutes of any Executive Board, Membership, or Committee Meetings at which any Financial Decisions were Made, Approved or Rejected. • Personnel Records - Collective Bargaining Agreements & Personnel Policies

  31. Key Point Financial Records, including Minutesof Executive Board and Membership Meetings, must be kept for aminimum of SevenYears.

  32. Article VExpenditures - AuthorizationThere Are Four Types of Authorization: • Law • Constitution • Contract • Vote Unauthorized Checks

  33. Required By Law • Payroll Tax Deposits and RelatedPayments (FICA, Unemployment Taxes, etc.) • Possible Fines Imposed by IRSforLate Filing of Form 990

  34. Required by Union Constitution • International and Council Per Capita Taxes • Payment of Surety Bond Premium to International

  35. Required by Contract • Equipment Rental • Meeting Hall Rental Prior Authorization Required:

  36. Authorized By Vote • Membership • Executive Board • Delegate Assembly

  37. Key Points Expenditures Must Be Authorized and Documented in the Minutes

  38. Article VI – Expenditures Procedures Before You Write a Check, You Need: • Authorization • Documentation • Explanation

  39. No Cash Payments Never Write a Check Payable to Cash Exception: Petty Cash

  40. Writing Checks/Making Disbursements • Never Pre-Sign Checks: Do not Sign any Check before the Date, the Name of the Payee and the Amount have been entered on the Check • Neveruse a Rubber Stamp for Check Signing Purposes

  41. No ATM Cards Bank Debit Cards or ATM Cards May Not Be Used Under Any Circumstances

  42. Check Signers • Checks and Withdrawal Slips Must Be Signed by TwoOfficers • It is Recommended That at LeastThree (3) Signatories Be Registered with the Bank for Each Affiliate Account

  43. Article VIIExpenditures - Documentation Receipts and Invoices Must Be Maintained to Support all Expenditures

  44. Non-Taxable PaymentsAccountable Plan = Expense Report • Reimburse Actual Expenses • Non-Taxable to Recipient

  45. Expense Reports Required to Document Reimbursements : Officers Members Employees

  46. Expense Reports Each Expense Item Reimbursed Must Have Receipt Attached and Show: (1) Date (2) Amount (3) Union Purpose

  47. Expense Reports • Original Receipts Must Be Attached • Expense Reports Should Be Filed Timely • The IRS Considers Filing within 30 Days to be Timely

  48. Expense ReportsMeal or Entertainment Items List: • Name(s) and Union Relationship of Person(s) Entertained • Explanation of Union Business Discussed

  49. Expense Reports RequiredAccount For All Costs Paid Directly by Affiliate: • Direct Hotel Billings • Charges on Union-Owned Credit Cards • Payments to Travel Agency

  50. Expense Reports All Expense Reports Must Be Approved By Someone Other than the Preparer

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