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Sara Brown, CFCM, Fellow, Rio Grande Chapter

Carly Cox, CFCM, Dayton Chapter

James Mitchell, CPCM, CFCM, Fellow, Pentagon Chapter

Ronald Falcone, CPCM, Fellow, Tyson's Corner Chapter

Chapter financial management and controls

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Managing Chapter Cash Flow

Sara Brown, CFCM, FellowNCMA Board of DirectorsRio Grande Chapter

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Tips for Managing Cash Flow

• Determine as a chapter what is a healthy “reserve” • Stay current and up to date on financial responsibilities

– Make deposits and settle liabilities as soon as you get them – Use NCMA annual chapter financial report as guide for monthly reporting

• Keep a revenue/expense report for each chapter event – Tracks outstanding revenue and liabilities so you know exactly what an

event really costs – Data can be used to budget and plan future events

• Brief financial standings to chapter officers at least quarterly

• Analyze monthly, event and annual reports to identify trends or opportunities

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James Mitchell, CPCM, CFCM, Fellow

Pentagon Chapter

Chapter Grants

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Chapter Grants

– Overview• The Chapter Grant Program provides funds to assist

chapters in accomplishing specific objectives within the scope of their missions.

• Initiative to support chapter’s success / intended for struggling chapters

– Benefits• Chapter resurgence• Additional way to serve members • Nothing to lose

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Chapter Grants

– Award Policy• Awards are to be made to chapters whose submission is

– consistent with achieving the NCMA strategic goals and

– whose use of funds would accomplish a worthy objective that they would not otherwise be able to accomplish without the funds

• Grants will only be considered for those chapters who meet the annual reporting requirements that are due August 31st

• Policy establishing the grant program is in the NCMA Association Policy Manual, Chapter Policy 5-7 (Attachment 3) and can be found at this link:

http://resources.ncmahq.org/Association%20Policy%20Manual/5-7%20Chapter%20Policies%20(November%202012).pdf

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Chapter Grants

– Timeline• May – Call for Applications• September – Application due (about the 3rd week),

submitted to chapterrelations@ncmahq.org • October – Grant Review Committee to provide

recommendations to the NCMA Executive Director• November 1st– Notification of grant award or decline• November 15th– Anticipated date for issuance of grant

checks (non-travel related) • October 31st of the Following Year – Deadline for

chapters to complete their grant projects/spend the funds

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Chapter Grants

– Application Questions• Did your chapter submit its Annual Report for the prior

program year?• Chapter Bank Account Balance(s)• Chapter Annual Operating Expenses • Grant Amount Requested• Reason/Purpose• Anticipated Event or Launch/Completion Dates• Target Audience

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Chapter Grants

– Application Questions (continued)• Anticipated # of participants• Chapter Membership Total• Detailed description of intended use of funds• Spend plan for your project• How you will market the event• Expected outcome• Value to your chapter• Value to NCMA

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Chapter Grants

– Examples• Attendance at Leadership Conferences

• Networking and Membership meetings

• Certification materials

• National Education Seminars (NES) support

• Mentoring

• Speaker expenses reimbursement

• Collaboration events

• Webinars

• Scholarships

• Prizes

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Chapter Grants

– Strategy/Tips• Go over process with chapter leadership

• Appoint Grant Chair or VP

• Brainstorm Multiple applications can be submitted

• The more detail and thought the better

• Be creative

• Collaborate with another chapter

• Tailor it towards your chapter’s goals and objectives

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Chapter Grants

– Final Thoughts

• Great Opportunity• Vast Potential• Beneficial to your chapter

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Chapter Financial Controls

Ron Falcone, CPCM, FellowTysons Corner Chapter

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Purpose of Internal Controls

• Reduce the risk of misuse of assets

– Deter fraud or abuse, and

– Detect errors

• Reduce the risk of misstatement of the financial reporting

• Ensure compliance with IRS regulations and NCMA HQ requirements

• Provide effective and efficient operations by producing timely, accurate data

• Help the organization maintain a good reputation

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Components of Internal Controls

• Control environment• Risk assessment• Policies & Procedures• Monitoring

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Control Environment

• Set expectations for the control environment• Establish an ethical tone from the top• Honor the fiduciary duty of the entire organization• Disseminate the chapter’s internal controls to all

board members• Communicate a clear message that control policies

are to be taken seriously• Follow-through to resolution any issues or complaints

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Risk Assessment• Lack of written policies and procedures

• Analysis and reporting only happen when requested

• Changes in the chapter’s operating environment (e.g. more events)

• Organizational restructuring within the chapter (e.g. rapid growth)

• New board members

• Long term board members

• Disconnected sources of accounting information

• New or revised information systems

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Policies & Procedures• Develop formal written documentation of control activities,

reimbursement policy, position responsibilities, etc.• Disseminate/Communicate to all board members• Emphasize that policies must be followed by all board members• Require proper documentation to support the disbursement of

chapter funds• Annual budget approved by Board• Full Board review of financial statements at least quarterly• Limited list of Board members authorized to sign checks• Limited use of corporate debit/credit cards• Handling of petty cash

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Monitoring

• Continually monitor internal controls for discrepancies and red flags

• Monthly financial report delivered to Board of Directors

• Periodic internal review of accounting records (e.g. mid-year review)

• Periodic review by the Chapter Board of Budgeted vs. Actual revenues & expenses, by program

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Adverse Consequences Inadequate Controls

• Bad business decisions– Unintended overspending– Unexpected cash shortfalls

• Payment of unapproved expenses• Potential for fraud, or transactions without supporting

documentation• Cost of “repairing” the accounting records• Hidden costs to recover from reputational damage• Change in personnel will not solve the problem

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Suggested Best Practices• Segregate duties among staff to the extent practical

to minimize risk of errors or fraud:– One individual should not control all phases of a transaction– Use a separate person to record transactions into the accounting

system vs. those who physically handle the cash receipts– Bookkeeper/Record keeper and others that process transactions in

the accounting software should not be signers of checks– Bank statement reconciliations done promptly and reviewed by

someone who does not prepare the reconciliation and who does not have access to accounting software

– Mail opening should not be done by a person who processes transactions or has access to the accounting software

– Bank statements available on-line by bookkeeper, Treasurer and President.

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Suggested Best Practices (cont.)• Record all valid transactions in a timely manner• Reconcile bank account in a timely manner• Make all disbursements by check or electronic

transfer• Require sufficient detail about each transaction to

allow proper classification for financial reporting. • Review and approve the adequate supporting

documentation (receipts, invoices, etc.) before signing checks or credit card transaction.

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Suggested Best Practices (cont.)• Never write checks to “cash” nor sign blank checks• Use dual signatures for large disbursements• Take a physical inventory at least annually of all

tangible assets (equipment, laptops, etc.)• Purchase of new assets should be approved by the

Board of Directors and included in the budget• Assets that are disposed of should be approved by

someone in authority and documented• Perform analytical procedures for unusual or

unexpected variances, balances or relationships

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Benefits of Financial Controls• Encourage positive behavior• Promote a more structured business culture• Sound business decisions• Promote the efficient use of financial resources• Reduce inadvertent errors• Deter and detect fraud

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