AGA Chapter Financial Compliance and Operations
David LeBlanc, CGFM, CFS AGA National Treasurer-Elect
Over 100 Chapters Almost 16,000 professionals
There is no one “complete” set of procedures and policies that each chapter is required to follow for all of their financial practices. We are the Association of Government ACCOUNTANTS
Overview of Chapter Financial Practices • New chapter procedures • All AGA Chapters
New Chapters • Open chapter PO Box • Open chapter bank account • List name on checks as “XYZ Chapter of the Association of Government Accountants” • Provide AGA National with ACH form and copy of canceled check • Register with IRS for an EIN number using form SS4
All Chapters • Ensure AGA National has a copy of your chapter’s ACH form and canceled check • Without ACH information, monies will not be disbursed to chapters • Chapter dues payments, monetary campaign awards, etc. • Update AGA National with any changes in chapter treasurer and/or contact information
Resources for Chapter Finance Chairs501(c)(3) Information AGA is a tax-exempt organization under the 501(c)(3) Section of the Internal Revenue Code. The tax determination letter was issued by the Internal Revenue Service on April 25, 1983. You can find this document in the “Members Only” section of AGA’s website, within Chapter Resources, at https://members.agacgfm.org. This means that AGA is exempt from paying income taxes but it is still responsible for other taxes, such as state sales taxes, real estate taxes, property taxes, etc. As a tax-exempt organization, all AGA chapters MUST comply with the following IRS rule: Chapters with gross revenues in excess of $50,001 for the fiscal year must file an informational return titled, 990—Return of Organization Exempt From Income Tax. Those chapters with gross revenues under the $50,000 threshold must file an electronic form named 990-N or e-Postcard. Failure to follow these rules jeopardizes the chapter’s tax-exempt status. https://members.agacgfm.org/scriptcontent/membersonly/downloads/Finance.pdf
Resources for Chapter Finance Chairs501(c)(3) Information (cont.) Donations made to a 501(c)(3) organization are tax-deductible to the donor. Chapters are considered subordinates of the National Office as far as tax exemption is concerned. The Group Exemption Number (or GEN) is 3409. To be considered a subordinate, your chapter, EIN, address and contact person must be included on a list submitted to the IRS every year. A chapter appearing on this list is considered a tax-exempt organization under the 501(c)(3) section of the tax code by virtue of its relationship to the parent organization (National Office). To ensure that your chapter is included, please submit your information when requested by Cristina Barbudo, Director of Finance and Administration. This request is sent by e-mail to all Chapter Presidents and Treasurers in November. Remember: Each chapter is responsible for complying with the rules and regulations dictated by the IRS and their state department of revenue and taxation.
IRS Compliance • On a yearly basis: • All chapters with gross receipts under $50,000 file form 990-N (e-Postcard) http://epostcard.form990.org • All chapters with gross receipts between $50,001 and $200,000 and assets less than $500,000 file form 990-EZ • Chapters with gross revenues in excess of $50,001 and assets over $500,000 or gross receipts over $200,000 for the fiscal year must file an informational return titled, 990—Return of Organization Exempt From Income Tax
Event Insurance Policy • Chapter/Regional Events • Not covered under AGA National’s master insurance policy. • Obtain separate policy from insurance company such as Nationwide, GEICO, Travelers, etc.
AGA’s Finance Department Cristina Barbudo, MS, CPA - Director of Finance email@example.com Pamella Shaw, MA - Accounting Manager firstname.lastname@example.org
From everyone else involved in AGA This organization could not function without you. Thank you for your work, your time, your involvement and your efforts.