Treasurers Training Tidbits
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).
Fundamental Tasks of Being a Treasurer
___ 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.
Bookkeeping and Financial Reporting
Bookkeeping and Financial Reporting (Excel)
Budget Checklist
___ 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
Internal Review of Financial Records
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
Constitutional Language
The Local Treasurers Handbook provides some language that could be used for the local association constitution.
Governmental Reporting Requirements
FINANCIAL |
Timeline |
| 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 |
LEGAL |
Timeline |
| 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 |
Other Tips
___ 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.
Sample Calendar of Duties
Daily Duties: Deposit receipts
Weekly Duties: Remit PAC
Monthly Duties:
Prepare Financial Report
Pay Bills
Reconcile Bank Statement
Verify membership records with MEA billings
Annual Duties:
September
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
October
Compare budgeted membership income to actual
November
Get Tax forms as needed
December
Prepare IRS form 990 or 990EZ if required *
January
Prepare 1099s and 1096s if required
Prepare W-2 and W-3 if required
Develop budget calendar
February
Begin budget work
May
Adopt budget
*990 may be due at another time, depending on when the fiscal year ends (15th day of 5 month after end of fiscal year).
Money Matters…A Lot
Money Matters . . .A Lot (PPT)