Financial Policy & Procedures

Purpose

SECoPA’s long-term viability is best assured through prudent administration of its finances, including the investment of SECoPA balances, management of cash flow, “seed money” to help development of future conferences, incentives for sound conference management and planning, and review of conference expenses relative to annual and long-run income.  This brief sets forth policies that should assist SECoPA in maintaining financial soundness.

 

I.       Annual Budget

 

A.    Annual Budget: The Treasurer shall submit to the board for approval a fiscal year budget for the forthcoming fiscal year (January 1-December 31) at the concluding board meeting of the SECoPAConference (usually held in September or October) each year.

 

B.    Ongoing Expenses: The Conference’s ongoing yearly expenses fall into the following categories:

 

Student Awards (Kline and Collins):

Award Plaques

FL. Incorporation

Tax Preparation and Audit

Postage and Incidental Administrative

Program Expenses (Award subsidy, Archival)

 

It is anticipated that revenue from the SECoPA annual conference and interest payments on fund reserves will cover the majority, if not all of these expenses.  The size of SECoPA balances should allow for this, even in low-interest environments.  These expenses are expected to grow no faster than inflation.

 

C.    Other Expenses:  From time to time, the Board may incur expenses related to effective Conference operations.  These may relate to computing, archiving, and conferring (e.g., mid-year teleconferencing or business meetings) undertaken to foster Conference objectives. The Board will prudently consider these expenses in light of their contribution to the long-term well-being of the organization.

 

II.              Advances

 

As a means of fostering the Conference’s future well-being, SECoPA will provide advances to host committee/chapters of up to $2,000.00 as an interest-free loan.  These advances must be repaid with the preliminary financial report (30 days after the end of the conference). SECoPA may have no more than two outstanding advances at any time.

 

III.          The Fiscal Year and Reporting Period

 

For the purposes of Florida incorporation, our legal fiscal year is January 1 to December 31 (e.g., the calendar year).  Traditionally, our financial reporting has been approximately consistent with a conference-to-conference period, of October 1 to September 30.  Given that our conferences are not held at the same time annually, and that our financial reporting does not allow for exact close-outs at a given day, the October 1 to September 30 timeframe has traditionally had a plus or minus 10 day period deviation.  This allowance provides for timely and meaningful reporting at conference business meetings.

 

IV.            Financial Reporting and Audit

 

A.     At Annual Board and Business Meetings:  The Treasurer shall prepare a cash flow statement and balance sheet for the Board and members at these meetings.

 

B.     The Treasurer shall provide to the Chair and Chair-Elect monthly financial reports.

 

C.    An annual financial audit shall be performed by an appropriately credentialed accounting professional (CPA or CFM) within 60 days of the end of the fiscal year. The Chair and Treasurer shall be responsible for securing the auditor and ensuring that the results are presented to the SECoPA board within the 60-day window.

 

V.                Check Signing

 

The Treasurer, Chair, and Chair-Elect shall have signatory authority on SECoPA accounts, and up to two additional officers may be listed to provide organizational continuity should the Treasurer become indisposed or unable to fulfill their duties. The Treasurer is responsible for executing all checks in payment for expenses provided in the SECoPA financial policies, the annual budget, and other expenses upon SECoPA board approval. Any payment in excess of budgeted amounts will require the prior written approval of theSECoPA Chair.

 

VI.     Investment Policy of SECoPA Funds

 

A.     Accounts:  SECoPA shall maintain three accounts which consist of an operating account, a reserve account, and an endowment account.

 

B.     Investment Objectives:  SECoPA funds shall be invested with the following priorities, respectively: 1) security 2) liquidity and 3) income. The specific objectives vary by the purpose and function of each account, though security is the first priority for each. The operating account will require greater liquidity, necessitating a money market checking account. The reserve account requires less liquidity and may be invested in short-medium term certificates or bonds on the basis of income potential. The endowment account requires no liquidity and should focus on maximizing income potential over liquidity goals.

 

C.    Permissible Investments:  To protect the corpus, the SECoPA Board restricts available investments to guaranteed or insured instruments that include money market accounts, certificates of deposit, and U.S. Treasury Bonds.

 

D.    Periodic Review:  The Board will review these policies annually in light of market conditions, diversification, and Conference financial status. The Treasurer may ask for Board review as warranted.

 

VII.        Domicile of Financial Assets

 

Maintenance of SECoPA’s funds at a national financial institution has as an advantage that change in personnel (e.g., death or resignation of the Treasurer) will not necessitate the close-out of an account, given the availability of local branches throughout the region.

 

VIII.    Revenue Sharing of Conference Net Proceeds

 

Net revenues (i.e., remainder of gross conference proceeds less expenses and write-offs) will be split on a tiered basis as follows:

 

$1.00 to $2,500:  50% to SECoPA, 50% to the host chapter;

 

$2,501 to $5,000: 40% to SECoPA, 60% to the host chapter;

 

$5,001 and higher: 30% to SECoPA, 70% to the host chapter.

 

IX.     Annual Conference Financial Reporting Due Date

 

The host chapter will submit a preliminary financial report to the Board with estimate of net proceeds no later than 30 days after annual conference completion.  A final financial report, with detailed breakdown of conference revenues and expenditures, in a format prescribed by the Board, should be submitted no later than 90 days after conference completion.

 

X.      Submission of Annual Incorporation Report to Florida Department of State

 

The Treasurer is responsible for submitting the annual incorporation report to the Department of State; the due date is generally May 1.

 

(Approved by SECoPA Board October 5, 2005)

(Amended by SECoPA Board October 13, 2010)