When it comes to dealing with the chapter’s finances, transparency and sound ethical practices must be considered to avoid problems. Here are some procedures to consider:
- Have two co-signers or co-authorizers on checks and credit/electronic purchases.
- Deposits of checks and cash should be made in a timely manner (within 7 days is recommended).
- Record data from all checks received either electronically or by photocopying checks prior to deposit.
- Cash receipts should be verified by second party and initialed in writing.
- An itemized record of all income and expenses should be kept electronically.
- Checks for dues, chapter fundraisers, social events, etc. should always be made payable to the chapter—never an individual.
- The Treasurer or a designee should provide a report at each membership meeting which should be approved by the members.
- For a reimbursement of expenses, either the actual receipt or an accounting in writing/email must be provided.
- Expenditures over a certain amount (either in the bylaws or established in practice) should require approval of either the chapter’s board of directors or the general membership.
- A finance committee including the treasurer, chapter president and one or two members should be a standing committee.
- In the spring, the finance committee (or an assigned auditor) should review all income and expenses of the previous year.
- In the fall, the finance committee should prepare a budget for the following year that is approved by the membership.
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