Treasurers Training Tidbits
These training files were created to provide quick references for local association treasurers.
For more detailed information, please refer to your Local Treasurers Handbook (PDF).
___ Open/maintain a bank account for the local.
___ Designate two authorized signers (Treasurer and President) for checks and other transactions.
___ Use prenumbered checks which can be obtained from your bank.
___ Be sure requests for money (disbursements) are supported by an invoice or voucher form (or require two signatures on all checks).
___ Do not sign a check issued to yourself. Have the other authorized signer sign the check.
___ Upon receiving a check, immediately endorse it “for deposit only” AND deposit it in the bank as quickly as possible.
___ Have bank statements mailed to someone other than the Treasurer (possibly the President). This allows for a check that the Treasurers’ financial information corresponds with the bank’s.
___ Reconcile bank statement monthly.
___ Issue financial statements on a consistent basis on a schedule that works for you and your local (i.e. monthly, bi-monthly, quarterly).
___ Ask the Membership Chair to reconcile local membership list with MEA bill.
___ Call 866-468-0001 for help with any Treasurer issues.
___ Select Budget Committee or Team
___ Compare budget amounts to actual expenses for previous year
___ Determine locals goals for next year
___ Calculate anticipated income (members X local dues amt) and determine if there are any other resources/revenue available
___ Determine how much of anticipated income will be allotted to spend on each goal
___ Local governance should approve budget BEFORE fiscal year begins
___ Budget only for revenue and expense
An internal review of financial records should always be done when a new Treasurer is appointed. We recommend an annual review.
Critical procedures to be completed by independent reviewer or committee include:
___ Account for numerical sequence of checks
___ Verify cash disbursements for supporting documentation and proper approval
___ Verify receipt of all payroll deduction amounts from the school payroll office by comparing to payroll listing and calendar of pay dates
___ Test the reasonableness of dues income – multiply # of members with dues amount
___ Ensure proper governmental reporting is done
___ Determine compliance with governing board actions and/or constitution regarding financial matters
___ Verify financial statements are being submitted to local leaders – tie to bank statement
___ Identify and feel comfortable with budget v. actual differences
___ Ensure local association money is properly separated from MEA/NEA/PAC
___ Ensure mathematical accuracy on all financial records
The Local Treasurers Handbook provides some language that could be used for the local association constitution.
FINANCIAL |
Timeline |
| Determine whether or not your local needs to incorporate | Immediately |
| Get Employer Identification Number if you don’t already have one | Immediately |
| Apply for tax exemption if exemption hasn’t already been granted. | Immediately |
| Mail 1099’s and file with IRS | January 31/February 28 |
| File 990 or 990EZ as required | The 15th day of the 5th month after the organization’s accounting period ends. |
| Pay personal property taxes if applicable (tangible property is owned by local) | February 1 |
| Report Michigan sales tax if goods are sold by the local in the state of Michigan | Varies |
| File LM 2, 3, or 4 | 90 days after fiscal year end |
| Prepare payroll tax report | As needed |
LEGAL |
Timeline |
| Inform MEA’s Government Affairs department if lobbying/political activity is reimbursed to the local by MEA. | Prior to activity |
| Ensure compliance with state Campaign Finance Act and Federal Election Commission | Before election |
| Obtain appropriate licensing for raffles or bingo events | Before activity |
| Obtain liquor license if local wishes to sell alcohol beverages in connection with an event or activity | Before activity |
___ If there is a loss of funds due to fraud or dishonesty of officers or staff NOTIFY MEA Director of Legal Services IMMEDIATELY.
___ If local owns personal property obtain insurance coverage as desired.
___ Verify that all PAC monies are being handled appropriately and timely.
___ Verify that locals permanent records are organized and safeguarded.
___ Records Retention Schedule available in the Local Treasurers Handbook.
Daily Duties: Deposit receipts
Weekly Duties: Remit PAC
Monthly Duties:
Prepare Financial Report
Pay Bills
Reconcile Bank Statement
Verify membership records with MEA billings
Annual Duties:
September
Change/update signature cards to reflect new officers
Arrange for an internal review of records of previous year
If incorporated file Michigan Annual Report by 10/1
October
Compare budgeted membership income to actual
November
Get Tax forms as needed
December
Prepare IRS form 990 or 990EZ if required *
January
Prepare 1099s and 1096s if required
Prepare W-2 and W-3 if required
Develop budget calendar
February
Begin budget work
May
Adopt budget
*990 may be due at another time, depending on when the fiscal year ends (15th day of 5 month after end of fiscal year).