ENGINEERS WITHOUT BORDERS USA CHAPTER FINANCE POLICIES. Updated 03/31/14

Transcription

1 ENGINEERS WITHOUT BORDERS USA CHAPTER FINANCE POLICIES Updated 03/31/14 Engineers Without Borders USA rd Street, Suite 210 Denver, CO, Tel: Fax: CHAPTER FINANCE POLICIES PAGE 1 OF 12

2 1. OVERVIEW Engineers Without Borders USA is a non-profit organization with 501(c)(3) status. As such, the financial records of the organization must follow generally accepted accounting principals and must satisfy an annual audit. Most importantly, our financial records must be able to satisfy the scrutiny of the range of supporters and sponsors of EWB-USA on whom we rely for our own sustainability. All funds must be deposited into a 501(c)(3) designated bank account to be considered tax exempt. Only EWB-USA (and not the individual Chapters or individual persons) is able to open such an account. We have a professional accounting staff to insure this compliance while providing individualized reporting for each Chapter and their projects. 1.1 Exception for Certain University Chapters An exception to the above will be made for University Chapters that are required to or that have a specific case for holding their funds with their University, which has a 501(c)(3) designation. In this case the University is responsible for all financial reporting obligations, taking into account all Chapter and Project Funds and Expenses. Fundraising appeals by the University Chapter must specify that funds raised are held and accounted for by the University and not by EWB-USA. If a Chapter does run its financial activity through its university, the Chapter Treasurer should forward a letter from the University s accounting department indicating the nature of the account(s) and the contact information within that department. The Chapter Treasurer is also responsible for completing an Annual Report regarding the finances, income and expenses of the Chapter. This can be completed using an on-line survey. Presidents and treasurers will receive the link annually via and/or the monthly View From HQ newsletter. 2. RECORD KEEPING AND FINANCIAL REPORTING The EWB-USA fiscal year starts January 1 and ends December 31. EWB-USA tracks the income and expense transactions and the balance of funds held on behalf of that Chapter and each of that chapter s projects. Chapter Funds are those funds which have been designated by a donor to be used for the activity of the Chapter. These Funds can be spent on Chapter or Project Expenses at the discretion of the Chapter. Funds designated by a donor to be used only for Project Expenses (Project Funds) are restricted for that designated purpose. The donor s permission must be sought to use these funds for any other purpose The EWB-USA Accounting Department will provide financial reports to the Chapters as of the close of every month. These may be accessed on the 15th of the following month by a link provided under the CHAPTER FINANCE POLICIES PAGE 2 OF 12

3 MY CHAPTER tab in the member pages of the ewb-usa.org website. This tab also contains a supplemental Chapter Gifts Report, which provides detailed contact information for all donations to the Chapter. Treasurers may use these reports to manage the finances of their Chapter. We would expect Treasurers to reconcile these reports to their own records, identify any discrepancies, and report those discrepancies back to EWB-USA Accounting Department. 3. USE OF EWB-USA TAX EXEMPT STATUS EWB-USA has been granted a sales tax exemption by the State of Colorado. As such, purchases in the normal conduct of our charitable activities are exempt from state and certain local sales taxes in Colorado. Each state has its own regulations as to the treatment of charitable organizations for sales tax purposes. Some states will grant reciprocal status to Colorado nonprofit organizations, some states will require EWB-USA to apply for a sales tax exemption in their particular state. There are some states that will not grant sales tax exemptions at all. Applications to state authorities for sales tax exemption rely on our federal tax exempt status and therefore Chapters cannot apply in their own name in their own state. If a Chapter or Region has a need for an exemption (for example a significant purchase or substantial ongoing expenditure) they should contact the EWB-USA Accounting Department to secure sales tax exemption for that purpose. 4. DUES, FEES, AND COST ALLOCATIONS 4.1 Member Dues The EWB-USA Membership year runs January 1 through December 31. The dues associated with an EWB-USA membership are as follows: Professional Member: $100 per year Supporting Member: $75 per year Student Member: $0 per year 4.2 Pro-rated and Discounted Dues Membership dues may be prorated for the first year of membership based on join date, as follows: January 1 March 31: 100% of dues through the end of the current year. April 1 June 30: 75% of dues through the end of the current year. July 1 August 31: 50% of dues through the end of the current year. August 1 December 31: 100% of dues through the end of the following year. A discount on member dues is available to members of ASCE. CHAPTER FINANCE POLICIES PAGE 3 OF 12

4 4.3 Dues Allocations When a Professional member joins EWB-USA and indicates a Chapter affiliation, portions of the membership dues are allocated to the relevant Region and the Chapter. The allocations are: 65% EWB-USA General Fund 15% Region 20% Chapter Dues income often provides a new chapter with an initial cash balance for the purpose of early administrative expenses. 4.4 University Chapter Fee University Chapters pay an annual Chapter Fee to EWB-USA. The University Chapter fee will be assessed as follows: Invoice Date Chapter Institutions with 10,000 students or less Chapter Institutions with 10,001 students or more October 1, 2013 $500 $1,000 October 1, 2014 $500 $1,000 The invoice for the university chapter fee will be sent to the chapter president, treasurer, and faculty advisor on record with EWB-USA on or around October 1 of each year. A late fee of $100 will be assessed when payment has not been made in full by December 31 of the same year. 4.5 QA/QC Cost Allocation The cost of Quality Control/Quality Assurance will be allocated to each Project Trip. The Quality Control/Quality Assurance Cost Allocation is as follows for reports submitted beginning and after the April, 2013 submittal deadline through the December 2013 submittal deadline: Cost Per Trip Assessment Implementation Monitoring QA/QC Total Direct $2,000 $4,900 $1,500 and Indirect Cost Less Subsidy from $1,450 $3,800 $950 National Sponsors To Be Paid by Chapter $550 $1,100 $550 The Quality Control/Quality Assurance Cost Allocation is as follows for reports submitted beginning and after the January, 2014 submittal deadline: CHAPTER FINANCE POLICIES PAGE 4 OF 12

5 Cost Per Trip Assessment Implementation Monitoring QA/QC Total Direct $2,000 $4,900 $1,500 and Indirect Cost Less Subsidy from $1,395 $3,690 $895 National Sponsors To Be Paid by Chapter $605 $1,210 $605 The QA/QC Cost is allocated only at the time of technical approval. The funds will be automatically applied to project funds held by EWB-USA. Chapters that do not currently have sufficient funds will be invoiced. If more than one pre-trip report is submitted for the same trip, the Chapter will only be responsible for the highest amount. As examples, if pre-assessment and pre-implementation reports are submitted for the same trip within the same program, the chapter will be responsible for $1,210 of QA/QC costs. If two pre-assessment reports are submitted for the same trip within the same program, the chapter will be responsible for $605 of QA/QC costs. 5. DEPOSITING MONEY Money may be collected by way of check, credit card or wire transfer. 5.1 Checks All checks should be sent directly to the EWB-USA Accounting office for deposit. Chapters should not cash checks. The procedure for handling checks is as follows: Checks should be made out to EWB-USA (if not they should be signed over to EWB-USA on the endorsement) The memo field should contain the Chapter Name, Project Name (if applicable), and/or any other specific restrictions on the funds A Donor Information Sheet is available to assist when forwarding checks. Checks, along with the Donor Information Sheet and any other back-up documentation, should be sent to EWB-USA Accounting Department at the EWB-USA main office. Donor Information Sheets should also be ed to EWB-USA at accounts.receivable@ewbusa.org. 5.2 Credit Cards The EWB-USA website, has donation buttons on each page. These buttons allow donations to automatically be directed to the General EWB-USA fund, to a specific Chapter or to a specific Project. These buttons can also be set up on each Chapter s website or social media for CHAPTER FINANCE POLICIES PAGE 5 OF 12

6 projects, general donations or fundraisers. The link for doing this is under the MY CHAPTER tab in the member pages of the ewb-usa.org website. Electronic Funds Transfer and Wire Transfer Funds may be sent by electronic funds transfer or wired to EWB-USA for deposit. The EWB-USA Accounting Department will provide account details on request. 6. SPENDING MONEY 6.1 General Principles Available Chapter and Project funds can be disbursed for expenses through the following four methods: EWB-USA can pay a vendor directly from an invoice; A member may pay for an expense and then be reimbursed by attaching receipts; A member may request a cash advance and follow up with receipts; EWB-USA can issue a credit card to the chapter for their use. All requests for payment should be accompanied by either a Chapter Expense Form (705) or Project Expense Form (506), with appropriate signatures and documentation to EWB-USA Accounting Department, accounts.payable@ewb-usa.org. These forms are available for download under the CHAPTER RESOURCES tab in the member pages of the ewb-usa.org website. The expense will be charged against the appropriate Chapter or Project. 6.2 Authorized Signatures Signatures from two elected officers will be required for any disbursement of funds. Where funds are disbursed for Project Expenses, the signature of the Project Lead is also required. s are acceptable as signatures. 6.3 Acceptable Expenses We must always respect the intent of the donor when spending their contributions. We are not permitted to channel funds to other 501(c)(3) organizations where EWB-USA is not involved as a project partner or where such organizations do not share our mission and vision. EWB-USA will only pay project related expenses for approved EWB-USA projects. All expenses MUST be directly related to the EWB-USA project and must be part of the design approved by the EWB-USA Technical Advisory Committee (TAC). EWB-USA will not pay for any non-approved EWB-USA project expenses. EWB-USA will not pay for the purchase of land or contributions that should otherwise be made by the community or local partners. EWB-USA will not pay any travel costs for CHAPTER FINANCE POLICIES PAGE 6 OF 12

7 unapproved travel team members. EWB-USA will pay for purchases made in the U.S. for expenses related to the project. This also specifically excludes the costs of fundraising for the project, gifts and alcoholic beverages. See Appendix A for a more detailed list. 6.4 Receipts Chapters and members are expected to use their best efforts collect original receipts for all expenditure. This policy is important in order for EWB-USA to demonstrate to donors, auditors and other stakeholders that funds are being spent appropriately. However it is acknowledged that an original receipt may not be practical in all cases, particularly where traveling overseas. The following policy applies to receipts. Where an item is less than US$10 and an original receipt is not available, a handwritten receipt form signed by the member who incurred the expense will suffice. Where an item is US$10 or more, a handwritten receipt form signed by the member who incurred the expense should be submitted. In addition, the Project Leader (if a Project Expense) or the Chapter Treasurer (if a Chapter Expense) should also sign. Where original receipts are not provided for multiple expenses within a Chapter s expense reimbursement form, EWB-USA National will need to be satisfied that members are using their best efforts to collect receipts before reimbursement can take place. 6.5 Cash Advance A cash advance is an advance of funds prior to a Chapter or Project expense being incurred. The Chapter must have sufficient funds in order for a cash advance to be made. A member may apply for a cash advance for 75% of expected costs in accordance with the following procedures: The Project Expense Form should be completed as per its instructions and submitted at least three weeks prior to the date of travel. The form has a box to indicate that this request is for a Cash Advance. 25% will be deducted from the requested amount. The balance will be paid when receipts have been submitted. It may be convenient for the cash advance to be sent to a Non-Governmental Organization (NGO) partner in the project country, depending on the chapter s relationship with that NGO. The entire amount of the cash advance must be reconciled as follows: Receipts are required for the entire amount of the cash advance, or excess funds must be repaid. CHAPTER FINANCE POLICIES PAGE 7 OF 12

8 The Treasurer should submit a Chapter or Project Expense Form by , with all receipts and notes attached, to the EWB-USA Accounting Department, accounts.payable@ewbusa.org to account for the cash advance within two weeks of the project trip. Until the cash advance is completely reconciled, no further reimbursements or cash advances for that project will be approved and EWB-USA may take other steps to insure repayment as are deemed appropriate. 6.6 Chapter Credit Card EWB-USA will issue a credit card to a professional chapter treasurer or student chapter faculty advisor upon request. The card can be used for any chapter or project expenses. The treasurer must receipts to accounting@ewb-usa.org. Expenses will be taken from the EWB-USA chapter/project account as designated by the treasurer to make payments Terms and Conditions: The credit card has a $500 limit but there is an ability to temporarily increase the limit when needed, for example, purchasing airline tickets or any large fees related to the project. To increase your credit limit for special purchases use the updated 506-project expense form or 705 chapter expense form. To qualify, chapters must keep enough money to cover expenses in their chapter account at all times 7. CONTACTS The mailing address for the EWB-USA Accounting Department is: Engineers Without Borders USA rd Street, Suite 210 Denver, CO The general office telephone number is (303) and the fax number is (303) For questions arising from these Finance Policies and for the submission of forms please contact the EWB-USA Accounting Department Controller accounting@ewb-usa.org Accounts Receivable accounts.receivable@ewb-usa.org Accounts Payable accounts.payable@ewb-usa.org For questions regarding External Grants or EWB-USA Grants please contact EWB-USA Grants Coordinator grants@ewb-usa.org CHAPTER FINANCE POLICIES PAGE 8 OF 12

9 8. LIST OF ASSOCIATED FORMS Chapter Expense Form Project Expense Form Donor Information Sheet Handwritten Receipt CHAPTER FINANCE POLICIES PAGE 9 OF 12

10 Appendix A Project Expense Guidelines EWB-USA will only pay project related expenses for approved EWB-USA projects. All expenses MUST be directly related to the EWB-USA project and must be part of the design approved by the EWB-USA Technical Advisory Committee (TAC). EWB-USA will not pay for any non-approved EWB-USA project expenses. EWB-USA will not pay for the purchase of land or contributions that should otherwise be made by the community or local partners. EWB-USA will not pay any travel costs for unapproved travel team members. EWB-USA will pay for purchases made in the U.S. for expenses related to the project. Receipts or invoices are needed for EVERY disbursement, no exceptions. EWB-USA provides a receipt form (Form 607) to help when receipts are not available. The receipt MUST be signed by the seller in country. Note: While your specific item might not be on this list, you may use this list as a guideline for projectrelated expenses appropriate for reimbursement. Please respect that this money was donated by individuals, groups, foundations or corporations in good faith that it would be used to assist communities in need. If you are not comfortable telling your donor that you spent their money on an item, please do not ask for reimbursement for it. Check with your Chapter Relations Manager about specific questions. Funds raised in EWB-USA s name should follow the guidelines below: CHAPTER FINANCE POLICIES PAGE 10 OF 12

11 Team Logistics What EWB-USA will pay from project funds Economy class Airline Tickets to and from an approved EWB-USA project All airfare expenses must be directly related to the project Visas for country where project is located Extra baggage if related to the project **If volunteer is traveling to other countries unrelated to project, s/he can be reimbursed only for the cost of flying to host country directly Bus/Rental Vehicles for Group Transportation These costs should be reasonable (i.e. a van to transport multiple people to the project site, trucks used to transport materials, or train tickets). Funds cannot be used for safari trips, tours, etc. Double Hotel occupancy/lodging. Some exceptions apply. Water Filters/Bottled Water Satellite phones and SIM cards Recommended First Aid Kit items (see form #604) Meals (this includes all foods purchased) Vaccinations, malarial prophylaxis, antibiotics that are recommended on the CDC website but not covered under the individual s health insurance Transportation to and from airport and parking at airport up to $100 per travel team. Receipts needed. Not including gas mileage. Taxis in the country if absolutely needed Internet fees if they are related to the project Travel Insurance if purchased separately from private health insurance Mosquito netting. Preferably purchased in the country. Reimbursable from chapter funds and the chapter owns for future projects Reasonable local rate for meals What EWB-USA will not pay from project funds Personal Alcohol or illegal drugs Transportation for non-project related activities (i.e. safaris) Costs for non-project related activities (i.e. safaris) Phone or internet fees not directly related to the EWB-USA project Toiletries (i.e. shampoo, sunscreen, etc) Gas mileage to the airport Health related expenses except those specifically mentioned under reimbursable items (i.e. doctor s visits, prescriptions. This should be covered through the travel insurance) Private health insurance Sleeping bags and sleeping pads Gifts for host community Fundraising events for the project purchase of land contributions that should otherwise be made by the community or local partners CHAPTER FINANCE POLICIES PAGE 11 OF 12

12 Materials & Labor Supplies/Materials related to the TAC approved EWB-USA projects. Tools related to the EWB-USA project. All tools subsequently owned by the chapter. Video/media equipment that will be reimbursed through chapter funds. All equipment subsequently owned by the chapter. Local labor related to the approved EWB-USA projects. Specialized labor skills that are not readily available in a community Protective clothing (i.e. goggles, gloves, hard hats) EWB-USA member time Materials not related to the TAC approved EWB-USA project Personal Flashlights or reading material Everyday clothing Personal luggage We will not reimburse for any non-approved EWB-USA project CHAPTER FINANCE POLICIES PAGE 12 OF 12