I. GENERAL INFORMATION A. Fiscal Year B. Chapter Tax C. Per Capita Tax D. Due Dates II. III. IV.

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1 TABLE OF CONTENTS INTRODUCTION I. GENERAL INFORMATION A. Fiscal Year B. Chapter Tax C. Per Capita Tax D. Due Dates II. III. IV. OVERVIEW OF CHAPTER FINANCIAL PRACTICES A. Financial Officers and Separation of Duties B. Income C. Expenditures RECEIPT OF FUNDS A. Postdated Checks B. Returned Check Policy VOUCHERS AND CHECKS A. Standard Procedure for Checks B. Advance Checks C. Emergency Checks D. Lost Checks E. Stale Dated Checks V. CREDIT CARD PROCEDURES A. Cardholder Agreement B. Advance Approval C. Original Receipts D. Notification of Loss/Theft VI. VII. VIII. IX. RECORDKEEPING A. The Tamiouchos B. The Anti-Tamiouchos C. The Pecunious Grammateus D. The Anti-Pecunious Grammateus E. Bonding F. Auditing G. Tax Issues THE CHAPTER BUDGET A. Overview B. Income C. Expenditures D. Line Item Budget E. Budget Control PARTIAL PAYMENTS FINANCIAL PROCEDURES UPDATES 1

2 Introduction The financial procedures of Beta Sigma Omega Chapter of Alpha Kappa Alpha Sorority, Incorporated are outlined in this document. All financially active members are to abide by the procedures in this document. It is the responsibility of each chapter member to ensure the financial integrity and viability of the chapter. Sorors will honor the financial protocols established by the Budget and Finance Committee. Sorors will not engage in any immoral, illegal, dishonest, or unethical financial practices. The governing documents of the Beta Sigma Omega Chapter of Alpha Kappa Alpha Sorority, Incorporated are: the International Constitution and Bylaws, Manual of Standard Procedure, Financial Fundamentals: Guide to Chapter Financial Procedures, Chapter Bylaws, and Robert s Rules of Order Newly Revised (11th edition or most current). I. GENERAL INFORMATION A. Fiscal Year Alpha Kappa Alpha's fiscal year begins January 1st and ends December 31st each year. The chapter also operates its fiscal year within this time frame. Financial cards are valid for the fiscal year. B. Chapter Tax The chapter must pay to the Alpha Kappa Alpha Corporate Office an annual chapter tax. The amount of this tax may be changed biennially during the Boule and must be submitted with the first remittance of per capita tax. C. Per Capita Tax / Educational Advancement Foundation (EAF) The chapter must pay to the Alpha Kappa Alpha Corporate Office an annual per capita tax for each chapter member, except for life members. Per capita tax for a soror will only be transmitted after a soror has met all financial obligations to the chapter and any designated affiliates. Financial obligations are any monies owed to the chapter, including but not limited to assessments, returned checks, and return check fees. Educational Advancement Foundation (EAF) dues are remitted along with the per capita tax for each chapter member, including life members. D. Due Dates The Tamiouchos shall submit all taxes and fees to the Corporate Office by the deadlines set by the Sorority. 2

3 II. OVERVIEW OF CHAPTER FINANCIAL PRACTICES A. Financial Officers and Separation of Duties General accounting practices stress the importance of the separation of duties in the receipt and disbursement of funds to maintain an appropriate check and balance system. Therefore, no one soror should be permitted to receive and disburse funds. Those chapter officers elected to handle chapter finances should have basic bookkeeping and accounting skills, knowledge of proper procedures for handling finances, and the ability to establish an orderly method of recording income and expenditures. Other attributes that should be exhibited prior to election are honesty, integrity, punctuality, and thoroughness. The financial officers of the chapter are the Pecunious Grammateus, Anti- Pecunious Grammateus, Tamiouchos and the Anti-Tamiouchos. The financial officers must adhere to the established guidelines referenced in the Financial Fundamentals: Guide to Chapter Financial Procedures. The secondary officers shall provide assistance to the primary officers as needed. B. Income The Pecunious Grammateus receives and records all funds in the name of the chapter, regardless of the source. She issues a receipt identifying the source of funds, and then submits all funds received to the Tamiouchos within 5-7 business days. She shall present a written monthly report to the chapter of all funds received and any returned checks during the month. Funds, other than cash, may be mailed to the Beta Sigma Omega Post Office Box, Attention: Pecunious Grammateus. If funds are mailed and return receipt requested by mail, sorors should enclose a self-addressed stamped envelope for the Pecunious Grammateus. The Tamiouchos deposits all funds received from the Pecunious Grammateus in the appropriate chapter bank account. C. Expenditures The committee chairman authorizes expenditures and prepares the voucher for payment. Payee shall not approve her own voucher(s). Authorizing signatures for payment include the Committee Chairman/Officer, Basileus or Anti-Basileus, and the Tamiouchos. The Tamiouchos then issues a check in the authorized amount, signed by the Basileus, Anti-Basileus, and/or the Tamiouchos (or by any two of these chapter officers authorized to sign checks). The purpose for the expenditure should be clearly stated on the check stub and should be specified on the check. If the Tamiouchos will be unavailable for three (3) or more days, she should ensure 3

4 that the Anti-Tamiouchos has the checkbooks. If the Tamiouchos and the Anti-Tamiouchos are unavailable, the checkbooks should be given to the Basileus. III. RECEIPT OF FUNDS A. Postdated Checks Postdated checks will not be accepted. B. Returned Check Policy Upon receipt of a returned item, the Tamiouchos shall notify the Pecunious Grammateus. The Pecunious Grammateus will notify the soror, in writing, that her check has been returned. The soror will have fourteen (14) days after the date of notification to repay the check amount and the return check fee of $20 in cash, cashier's check or money order. Failure to remit funds within the designated timeframe will result in a loss of the soror s chapter privileges. The Pecunious Grammateus will keep a list of sorors who have outstanding non-sufficient funds (NSF) checks. The status of those sorors will be considered "not in good standing" in accordance with the Chapter Bylaws. The chapter will not accept another check to cover the check that was returned. The Tamiouchos will return to the maker or destroy a returned check after such time as cash, cashier's check or money order has been received. C. Late Fees Per capita tax is due and payable to the Corporate Office by January 1st. In order to avoid late fees, dues must be received by the Pecunious Grammateus no later than January 15th. Late fees shall not apply to life members. Active sorors may arrange installment payments of dues; Such payments must be completed by January 15th of the year the soror would be active. IV. VOUCHERS & CHECKS All chapter expenditures are paid by check. Invoices or supporting papers should be attached to a voucher to substantiate payment. The Anti-Tamiouchos shall obtain and distribute vouchers. Vouchers for approved expenditures should be submitted within thirty (30) days of the event. Vouchers submitted for reimbursement after thirty (30) days will not be paid without approval by the chapter. 4

5 A. Standard Procedures for Checks A soror seeking reimbursement for an expense previously incurred or service previously rendered should secure a voucher from the appropriate person. The following information should be included on the voucher: Date of voucher request. The appropriate account to be expensed, including budget line item. Explain in detail the reason for the expenditure. Name of person submitting the voucher. Name of the person to whom the check will be paid or the account to be credited. Invoices, receipts, or other supporting documentation should accompany the voucher. Signatures should be obtained in the following order: Committee Chairman and/or Basileus, and Tamiouchos. After the above information is completed, the Tamiouchos will issue the check and complete the voucher. This includes adding the check number, the date the check was issued, and whether or not the appropriate receipts were attached. B. Advance Checks Checks may be issued before the expenses have been incurred. In order to receive an advance, the soror must provide a voucher and documentation supporting the need for the advance. After the expenses have been incurred, the soror shall present receipts documenting the expense. Any amount over the actual expense will be reimbursed to the chapter. Only one advance per soror or business will be made. The advance must be reconciled before another advance can be issued, unless an emergency situation exists. The Basileus will determine what constitutes an emergency situation. C. Emergency Checks Emergency checks are checks issued without a voucher. The check will be considered "outstanding" until a voucher is submitted. A voucher supporting the "outstanding check" should be submitted as soon as possible. D. Lost Checks Checks that are lost may be reissued by the Tamiouchos. The Tamiouchos should verify with the soror/ payee that the check IS lost and note that if found should be returned to the Tamiouchos and not cashed. If the check is cashed after the replacement check is issued, the soror or payee will 5

6 be liable for the amount and should forward funds to the Pecunious Grammateus. If checks are not reimbursed by sorors within fourteen days, the soror will be considered not in good standing (inactive) within the chapter. This outstanding debt will be considered a financial obligation to the chapter. The Tamiouchos has the discretion to "stop payment" or "not stop payment" on the check prior to reissuing the check based upon the amount of the stop payment fee that might be incurred. E. Stale-Dated Checks Checks that have not been cashed after 90 days will be considered stale- dated. Follow up will be conducted with the soror who requested the voucher for payment. A letter will also be sent to the payee by the Tamiouchos requesting a response within fourteen days (14) from the receipt of the letter. The following should be stated in the letter: We are canceling check # XX, payable to XX, dated XX/XX/XX. This check has been outstanding more than 90 days. Please contact XX, Tamiouchos/Treasurer, at (770-XXX-XXXX) for re- issuance. If response is not received within 14 days, a replacement check will not be issued. If the check is found after re-issuance, VOID should be written across the check and forwarded to the Tamiouchos. If the check is submitted for duplicate payment, the payee will be liable for the amount plus applicable fees. If a check is not cashed within 90 days, the Tamiouchos may stop payment on the check and the payee may incur applicable fees. The Tamiouchos will determine if funds should be added to the bank account for checks not cashed. V. CREDIT CARD PROCEDURES Alpha Kappa Alpha Sorority, Inc. does not authorize the use of debit cards for any purposes. Beta Sigma Omega Chapter will determine whether there is a compelling need for the chapter to obtain one or more credit cards. If it is determined that credit cards are needed, the Tamiouchos will be authorized to utilize the credit card. The approved credit card may only be used for official purposes directly related to the needs of Beta Sigma Omega Chapter which have a properly completed an approved voucher. The credit card cannot be used for personal purchases. 6

7 In order to use the card, the cardholder must follow these procedures: Cardholder Agreement. Upon issuing the credit card to the Tamiouchos, she must sign a statement that she has read and understands the financial procedures of Beta Sigma Omega Chapter of Alpha Kappa Alpha Sorority, Incorporated. Advance Approval. A properly completed and approved voucher must be submitted to the Tamiouchos before a purchase is made. Original Receipts. The Tamiouchos must keep the original receipt that describes each purchase made on the card. The credit card receipt is not sufficient. All statements must be reported to the chapter and kept in a separate binder. Notification of Loss/Theft. The Tamiouchos must notify the bank and Beta Sigma Omega Chapter immediately in the event that the card is lost or stolen. VI. RECORDKEEPING A. The Tamiouchos Serves as guardian of the chapter's funds Receives all funds from the Pecunious Grammateus, indicating source of funds Keeps an orderly record of income and expenditures Maintains the chapter's Cash Disbursement Journal Makes deposits of all funds received within 5-7 business days of receipt from the Pecunious Grammateus Issues checks upon receipt of properly executed vouchers Signs checks along with the Basileus (or other authorized officer) Reconciles bank statements monthly Make monthly written financial reports to the chapter that should include the Balance Sheet, Cash Disbursements Report, the Comparison of Budget to Actual Revenues and Expenditures, and the Bank Reconciliations. She must also maintain in her records a Cash Disbursements Journal that includes the year-todate cash expenditures, classified by purpose. Keeps separate records and lists associated with special funds and/or bank accounts (i.e., fundraising projects) Prepares annual report to include funds received, expended and current state of chapter finances Prepares annual budget for presentation to the chapter prior to the meeting in November of each year Maintains the checkbook (records should be kept current with deposits, amounts of checks, and new balance after each transaction) Makes all disbursements by check (rather than cash or credit) to sorors for monies spent Secures chapter approval for spending non-budgeted monies for an item from the contingency fund Ensures timely submission of all mandated chapter funds to the Alpha Kappa 7

8 Alpha Corporate Office by submitting them on or before their due date Establishes protocols with Pecunious Grammateus for receiving and distributing all funds B. The Anti-Tamiouchos Shall assist the Tamiouchos in the performance of her duties and perform all duties of the Tamiouchos in her absence, except she shall not have checkbook signature authority Shall obtain and distribute vouchers Shall ensure timely submission of funds to the Mid-Western Region (e.g. Regional Assessments, Regional Awards) for expenditures and approved chapter contributions by submitting them on or before their due date, including preparation of vouchers Shall serve on the Budget and Finance Committee (Refer to the Financial Fundamentals: Guide to Chapter Financial Procedures) C. The Pecunious Grammateus Receives and records all monies for the chapter Gives receipts for all income received and maintains duplicates of all receipts in a receipt book Submits all funds received to the Tamiouchos within 5-7 business days (with a statement indicating source of income) Must maintain a Cash Receipts Report and/or Cash Receipts Journal. The journal includes the year-to-date cash receipts; returned and redeemed checks; and a record of all payments for dues, fees, and assessments made by each chapter member. Maintains current alphabetical list of all financial members and shall call roll on request, and presents same to the Basileus, Grammateus, Epistoleus and Membership Chairman, and others as requested Maintains current record of funds submitted to the Tamiouchos Keeps a record of all payments made by each soror and brings the record to chapter meetings D. The Anti-Pecunious Grammateus Shall assist the Pecunious Grammateus in the performance of her duties and perform all duties of the Pecunious Grammateus in her absence Shall serve on the Budget and Finance Committee (Refer to the Financial Fundamentals: Guide to Chapter Financial Procedures) All documents and reports should be maintained as a part of the chapter financial records. Financial records include: Receipt Books, Checkbooks, Bank Statements, Monthly Reports, Vouchers, and any other written documents created for the purpose 8

9 of financial record keeping. To simplify bookkeeping and auditing, it is recommended that all disbursements be by check rather than by cash or credit to a soror for monies she has spent. E. Bonding A fidelity bond provides coverage to the chapter to protect against a dishonest act by the bonded officers. It ensures proper performance of fiduciary duties by persons in positions of private or public trust. The following officers of the chapter shall be bonded: Basileus Anti-Basileus Tamiouchos Anti-Tamiouchos Pecunious Grammateus Anti-Pecunious Grammateus Graduate Advisor Any soror who takes money F. AUDITING Mid-year audits may be performed, if necessary. Members of the Internal Audit Committee should never include the current or immediate past Basileus, Tamiouchos, Pecunious Grammateus, or any other officer involved in the receipt and disbursement of funds. INTERNAL AUDIT Purpose The Audit Committee is charged with conducting an effective internal audit activity that provides an independent, objective assurance that the chapter has effective internal controls in place in accordance with its mandated procedures. An internal audit activity is designed to add value and improve the organization's operations. Procedures This audit objectively examines the bylaws and financial procedures of the chapter along with the following accounting records for the Operations and Program accounts: Standard Procedures for checks: Date of check, Verification of payee listed per expense voucher, Validation of amount of check equaled the amount listed on voucher, Validation to check number was traceable to the related voucher, Verification of proper signatures 9

10 Standard Procedures for Vouchers: Date of request, Purpose of requested disbursement, Dollar amount requested, Signatures, Receipts attached, Budget item indicated Standard Procedures for Receipts and Deposits: Transmittal of all monies collected and receipted, Transmittal forms signed and dated by the Pecunious Grammateus, Transmittal forms verified, signed and dated by Tamiouchos, Verification of amount deposited with amount transmitted, Cash receipts journal Analysis of Chapter Budgeted Accounts: Expense related to budget items, Amount expended within the budget. EXTERNAL AUDIT The Audit Committee is responsible for arranging an audit by a nonchapter member when the Tamiouchos leaves office or every two years. G. Tax Issues Dues, donations, and contributions to Alpha Kappa Alpha are not tax- deductible. Tax status is 501(c)7. Donations and contributions to the Educational Advancement Foundation are deductible. Also donations and contributions to the chapter's foundation are tax-deductible. VII. THE CHAPTER BUDGET A. Overview The budget is the document that reflects the amount of money needed to cover the projected operating expenses for one year. The budget is a composite of the entire chapter's projected annual expenses related to administrative costs (per capita taxes, EAF contributions, audits, mandated reviews, honorariums, courtesies, miscellaneous expenses, etc.), officer expenses, and committee expenses. Operations expenses may not exceed the amount of money budgeted to operate the chapter. It is the duty of the Budget and Finance Committee to develop the chapter's budget for the fiscal year. The Tamiouchos serves as the Committee Chairman. The Anti-Tamiouchos, Pecunious Grammateus, Anti-Pecunious Grammateus, and the Program Committee Chairman should be members of the Budget and Finance Committee. Each Committee Chairman shall provide a proposed committee budget no later than the September sorority meeting. The Program Committee should submit its budget along with the proposed program for the coming year to the chapter for approval. 10

11 The Program and Budget Committee should meet before the proposed program and operations budgets are due for approval. Approval is governed by the chapter By-laws. B. Income The primary sources of income for the chapter are: Dues (which include per capita tax), including those from reactivations and transfers Assessments Income from special fundraising projects Initiation fees and charges Private/public donated funds, when the donor specifically earmarks such funds to be used for operational expenses or gives the chapter latitude to use the funds at its discretion. C. Expenditures Expenditures are based upon: Chapter operating activities Programs of service Special projects' activities Scholarships Contributions Sorority obligations An amount, usually a percentage of the total budget, is budgeted for emergency. This amount is labeled "contingency". If an expenditure was not included in the budget, approval for taking it from the Contingency Line Item is secured by chapter vote. The budget form should be used as a draft for listing the activities the chapter plans for the year, the estimated cost of these activities, and the estimated cost of all other expenditures. These estimates should be totaled. The next step is to estimate the number of sorors who will be active during the year. To arrive at the dues, divide the estimated expenditures by the number of sorors estimated to be active. If this amount proves to be unacceptable, the chapter must decide which item of expense to eliminate. In the final analysis, the estimated income must equal the estimated expenditures. Sorors will engage in fundraising activities identified by the Fundraising Committee and approved by the chapter. These funds will be used to provide exceptional community services, including providing direct services to families, awarding scholarships, and serving the community through selected chapter program initiatives. Sorors will identify and pursue potential financial resources such as grants, individual and corporate endowments, individual and corporate gifts 11

12 and sponsorships, and collaborative community partnerships to augment funds gained through chapter dues, assessments and fundraising activities. It is recommended that these funds be budgeted separately and maintained in a separate bank account. The public is asked to support these projects and therefore; money raised in this way must not be used for general chapter operations. A copy of the chapter's annual budget, with other chapter reports, must be submitted to the Alpha Kappa Alpha Corporate office by February 1. In addition, copies must be forwarded to of the Regional Director and the Supreme Tamiouchos, and a copy must be retained in the chapter's files. D. Line Item Budget A line item budget provides a vehicle of controlling what is spent by an officer or committee, and who is accountable for the expenditure and should include all income and expense associated with the proposed office, committee or project. E. Budget Control Money can be spent for budgeted items only if it is collected and is on hand. Approval of the chapter budget does not necessarily indicate that funds are available. Fund availability is contingent upon having received dues from the number of sorors used to determine the budget. A regular monthly report of income, expenses, and cash balances by the Tamiouchos will enable the Executive Committee and/or the Chapter to make wise decisions about funds to be expended. VIII. PARTIAL PAYMENTS Partial payments may be made at any time during the current year for the upcoming year Partial payments will be accepted from current chapter members only. Reactivating or transfer sorors are not eligible Partial dues payments cannot be made for the upcoming year until all assessments for the current year are paid Partial dues are not refundable after December 31st, unless approved by the Basileus Payment in full must be made prior to January 15th to avoid being assessed the late fee Payments made on or after January 15th must include the late fee established by the Corporate Office and/or chapter Per capita will not be sent to the Corporate Office until full payment is made All partial payments must be made to the Pecunious Grammateus to ensure 12

13 that proper credit is given. Upon payment in full, the Pecunious Grammateus must inform the Tamiouchos that the soror has paid her dues in full IX. FINANCIAL PROCEDURES UPDATES Changes to this document may be submitted by a soror at any time in writing to the Tamiouchos. The Budget and Finance Committee will review all requests and present them to the Executive Committee. Upon approval by the chapter, changes will be effective immediately and published. 13