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Financial Management

Financial Reports

IPMA-HR is not responsible for any liabilities that a Chapter might incur.

Checking/Savings Account

Each Chapter should open and maintain a checking account and, if income warrants, a savings account. Bank statements should be reconciled and filed with Chapter financial records. Most Chapters require only the single signature of the Treasurer on any checks written from the Chapter’s checking account, but as the Chapter’s income increases, it may be advisable to require two signatures on all checks. The Chapter’s Employer Identification Number (EIN) should be listed on all bank accounts. The bank accounts should be audited along with the Chapter’s financial records.

Cash Receipts/Disbursements

All Chapter income, including dues, seminar registration fees, donations, fees for social events and so on should be deposited directly into the appropriate bank account. All income should be recorded first as cash receipts in a ledger book reflecting the source of each income item. This is a simple procedure and should not require an accounting background. The same applies to all expenses paid out of the Chapter’s bank account. These expenses also should be identified and recorded in the ledger book under the cash disbursements section. By using a simple single-entry ledger system, the Treasurer is able to have a clear picture of the Chapter’s cash flow, not just the balance in the bank account. This is important so the Chapter can develop an annual budget based on realistic projections of income and expenses over the year.

Financial Records

Besides the previously mentioned bank statements and a ledger book listing all cash receipts and disbursements, the Chapter should develop a simple annual budget. Each month the Treasurer can compare income and expenses to the overall annual budget and have a clear picture of the Chapter’s financial status. All tax forms and legal documents also should be maintained by the Treasurer. All of these records will be passed to incoming Treasurers. The clearer the Chapter financial records are, the more easily the Treasurer will be able to fulfill the Chapter’s financial responsibilities.

Employer Identification Number (EIN)

Chapters are required to obtain an Employer Identification Number (EIN) from the IRS to identify the Chapter’s funds and open or maintain a checking account. The Chapter Treasurer should obtain and complete Form SS-4 Application for Employer Identification Number from the local IRS office and submit it to the IRS District Director for assignment of the EIN (this can be done online). Once the EIN has been obtained, application for tax-exempt status should be submitted to the IRS.

Chapter or Region Dissolution

Chapters

The Chapter has the right to terminate its affiliation with IPMA-HR by providing written notice and satisfying any outstanding obligations owed to IPMA-HR.

IPMA-HR reserves the right to revoke the Chapter charter. Prior to revocation, the Chapter will be provided with written notice and the opportunity to respond to the proposed revocation.

If the Chapter terminates its affiliation or IPMA-HR revokes the Chapter charter, the Chapter agrees to promptly remove any reference to its being an IPMA-HR Chapter from its communications, website, and social media, and revokes all rights of the Chapter to use IPMA-HR’s logos.

If the Chapter terminates its operations, it will send any remaining funds in its treasury to IPMA-HR within 90 days of its dissolution.

Regions

If the Region decides to terminate its operations, the Region will send any remaining funds in its treasury to IPMA-HR within 90 days of its dissolution.

Financial Management

Recordkeeping

The Chapter Treasurer is an elected officer who serves a term length that is determined in the bylaws. The Treasurer also is the Chapter's financial officer. The role of the Treasurer is outlined in the Leadership Roles And Responsibilities section.

Best Practices

Inform IPMA-HR National if a Chapter or Region is struggling and/or considering dissolution.