These training files were created to provide quick references for local association treasurers.
For more detailed information, please refer to your Local Treasurers Handbook (PDF).
___ Open/maintain a bank account for the local.
___ Designate two authorized signers (Treasurer and President) for checks and other transactions.
___ Use prenumbered checks which can be obtained from your bank.
___ Be sure requests for money (disbursements) are supported by an invoice or voucher form (or require two signatures on all checks).
___ Do not sign a check issued to yourself. Have the other authorized signer sign the check.
___ Upon receiving a check, immediately endorse it “for deposit only” AND deposit it in the bank as quickly as possible.
___ Have bank statements mailed to someone other than the Treasurer (possibly the President). This allows for a check that the Treasurers’ financial information corresponds with the bank’s.
___ Reconcile bank statement monthly.
___ Issue financial statements on a consistent basis on a schedule that works for you and your local (i.e. monthly, bi-monthly, quarterly).
___ Ask the Membership Chair to reconcile local membership list with MEA bill.
___ Call 866-468-0001 for help with any Treasurer issues.
___ Select Budget Committee or Team
___ Compare budget amounts to actual expenses for previous year
___ Determine locals goals for next year
___ Calculate anticipated income (members X local dues amt) and determine if there are any other resources/revenue available
___ Determine how much of anticipated income will be allotted to spend on each goal
___ Local governance should approve budget BEFORE fiscal year begins
___ Budget only for revenue and expense
An internal review of financial records should always be done when a new Treasurer is appointed. We recommend an annual review.
Critical procedures to be completed by independent reviewer or committee include:
___ Account for numerical sequence of checks
___ Verify cash disbursements for supporting documentation and proper approval
___ Verify receipt of all payroll deduction amounts from the school payroll office by comparing to payroll listing and calendar of pay dates
___ Test the reasonableness of dues income – multiply # of members with dues amount
___ Ensure proper governmental reporting is done
___ Determine compliance with governing board actions and/or constitution regarding financial matters
___ Verify financial statements are being submitted to local leaders – tie to bank statement
___ Identify and feel comfortable with budget v. actual differences
___ Ensure local association money is properly separated from MEA/NEA/PAC
___ Ensure mathematical accuracy on all financial records
|Determine whether or not your local needs to incorporate||Immediately|
|Get Employer Identification Number if you don’t already have one||Immediately|
|Apply for tax exemption if exemption hasn’t already been granted.||Immediately|
|Mail 1099’s and file with IRS||January 31/February 28|
|File 990 or 990EZ as required||The 15th day of the 5th month after the organization’s accounting period ends.|
|Pay personal property taxes if applicable (tangible property is owned by local)||February 1|
|Report Michigan sales tax if goods are sold by the local in the state of Michigan||Varies|
|File LM 2, 3, or 4||90 days after fiscal year end|
|Prepare payroll tax report||As needed|
|Inform MEA’s Government Affairs department if lobbying/political activity is reimbursed to the local by MEA.||Prior to activity|
|Ensure compliance with state Campaign Finance Act and Federal Election Commission||Before election|
|Obtain appropriate licensing for raffles or bingo events||Before activity|
|Obtain liquor license if local wishes to sell alcohol beverages in connection with an event or activity||Before activity|
___ If there is a loss of funds due to fraud or dishonesty of officers or staff NOTIFY MEA Director of Legal Services IMMEDIATELY.
___ If local owns personal property obtain insurance coverage as desired.
___ Verify that all PAC monies are being handled appropriately and timely.
___ Verify that locals permanent records are organized and safeguarded.
___ Records Retention Schedule available in the Local Treasurers Handbook.
Daily Duties: Deposit receipts
Weekly Duties: Remit PAC
Prepare Financial Report
Reconcile Bank Statement
Verify membership records with MEA billings
Change/update signature cards to reflect new officers
Arrange for an internal review of records of previous year
If incorporated file Michigan Annual Report by 10/1
Compare budgeted membership income to actual
Get Tax forms as needed
Prepare IRS form 990 or 990EZ if required *
Prepare 1099s and 1096s if required
Prepare W-2 and W-3 if required
Develop budget calendar
Begin budget work
*990 may be due at another time, depending on when the fiscal year ends (15th day of 5 month after end of fiscal year).