Fiscal Management - Sigma Gamma Rho Sorority, Inc.

Fiscal Management
Regional and Local
Chantay P. Canty
International Grand Grammateus
And
Barbara L. Eikner
International Grand Tamiochus
Sigma Gamma Rho Sorority, Inc.
Created July 2009
1

What will be presented
About the Presenters
Objectives of Presentation
Be Prepared for the Task
Banking Accounts
Accounting Methods
Financial Software
Financial Reconciliation
Financial Statements
Financial Audit
Recordkeeping and Reporting
2

About the Presenters
Chantay P. Canty
B.S Chemical Engineering
M.B.A. Finance
ExxonMobil - 14 years
Canty Enterprises L.L.C.
• Built Sorority Membership System
Gamma Phi Sigma, Houston, TX
Life Member 630
Past Southwest Region Assistant Anti-
Grammateus, 1996-1998
Past Southwest Region Grammateus, 2000-2002
Past Chapter Basileus, 2002-2004
Past International Grand Grammateus 2004-2006
Current International Grand Grammateus, 2008-
Present
3

About the Presenters
Barbara L. Eikner
International Grand Tamiochus of Sigma Gamma Rho
Graduate of the University of South Carolina, South
Carolina Bankers School, and Vanderbilt University
Retired Banker, Senior Vice President and 30 years of
service.
Owner of Trabar Communications LLC
Life Member 522 and 2009 SW Regional 35 Year Award
Chapter Epistoleus, Parliamentarian and Wee Savers
Coordinator of Alpha Xi Sigma Tulsa, Oklahoma
2009 Heart of the Community Award by the Oklahoma
Bankers Association (chapter)
Past President of Tulsa Pan Hellenic Council
Past Regional Historian, Epistoleus, Anti Grammateus
and Vendor Coordinator
Past International Wee Savers Coordinator
4

Objectives
To bring continuity and uniformity to the financial
processes of Sigma Gamma Rho financial officers
To assist in the financial stability of the organizations by
ensuring that the financial officers can be a catalyst for
change, support and creativity to the chapter, region and
international organization
To provide guidance and support on financial systems and
software
5

Be Prepared for the Task
Ethics is the first rule
Be committed to the office
Loyalty to Sigma Gamma Rho is the rule
Assist with income opportunities and
service projects
Trust but verify
This is a business
6

Bank Accounts
Building the Relationship
Bank Title
Affiliate Banking
Scholarship Banking
7

Banking Accounts
Building the Relationship
Build a relationship with your banker
Ensure that the financial and elected Basileus, tamiochus
and grammanteus are signors on all accounts
Have the bank statements go to the post office box of the
chapter or region
Develop an overdraft policy and include it in your bylaws
Only the tamiochus is to have access to the checks
Complete deposit slips and write checks clearly and use
the memo line for future references if needed.
Keep all bank statements in one binder
Reconcile the bank statement monthly and as soon as you
receive it.
8

Bank Account Title
Chapter name of Sigma Gamma Rho
Sorority, Inc
• Chapter name should be in Bank Title
• Use Chapter EIN not the Grand
Chapter’s
9

Affiliate & Scholarship
Banking
Rhoer Club
• All Rhoer Club funds should be integrated into the chapter
account
• No separate EIN or accounts
• Recommend closing them
Philo Affiliate
• The account title should be Philo Affiliate, Chapter name of
Sigma Gamma Rho
• The Chapter or Regional Philo Coordinator or Basileus must be
a signor on all accounts
Scholarships
• Ensure account title is clear
• Appropriate signors
• Include in bylaws
• Investment and High Yield Instruments
10

Accounting Methods
Cash Basis Accounting
• Include income when it is received, and claim deductions
when expenses are paid
Accrual Basis Accounting
• Include items when they are earned and claim deductions
when expenses are owed
Modified Cash Basis Accounting
• Certain transactions will be recorded on an accrual basis and
other transactions on a cash basis. Usually, all unpaid bills will
be recorded on an accrual basis but uncollected income on a
cash basis. However, there are many different variations.
The Grand Chapter of Sigma Gamma Rho operates under Modified
Cash Basis accounting.
11

Financial Software
QuickBooks
• Intuit QuickBooks Simple Start Free Edition 2009 (free)
• http://quickbooks.intuit.com/product/accounting-software/free-accounting-software.jsp
Peachtree
• Sage Peachtree Complete and Premium 2010 (30-day trial free)
• http://offer.peachtree.com/ppc/branded/default.aspxsource=D45C1B4DD3C94EDE9160E9BD09
3D8907&WT.srch=1&srch=google-branded
Microsoft Money
• Microsoft Money (60-day trial free)
• http://www.microsoft.com/money/freetrial_info.mspx
Microsoft Excel
• Microsoft Excel (60-day trial free)
• http://us20.trymicrosoftoffice.com/product.aspxre_ms=oo&family=officepro&cul
ture=en-US
12

Financial Reconciliation
Perform Monthly by the 15 th of the next month
Income received by Grammateus equals
deposits made by Tamiochus
Ending account balance equals cleared
checks, checks issued not cleared, EFTs
made, etc
13

Financial Statements
4 Basic Financial Statements
Balance Sheet (Statement of Financial Position)
• Reports on assets, liabilities and net assets as of a given point in time
Income Statement (Statement of Activities)
• Also referred to as Profit and Loss statement (or a "P&L"), reports on income, expenses, and
profits over a period of time.
• Provides information on the operation of the enterprise - including sale and various expenses
incurred during the period.
Statement of Retained Earnings (Net Assets)
• Explains the changes in a company's retained earnings over the reporting period
• Retained earnings refers to the portion of net income which is retained by the corporation
Statement of Cash Flows
• Shows how changes in balance sheet and income accounts affect cash and cash equivalents
during the period
• Reports on cash flow activities, particularly its operating, investing and financing activities
• Provides information on liquidity and solvency. Useful in determining the short-term viability -
particularly the ability to pay bills
14

Financial Audit
Review of Financial Statements
Typically performed by firms of practicing accountants due to the specialist financial
reporting knowledge they require
How an Audit is conducted
Financial Officers prepares the Financial Statements
Financial Statements are approved by organization before Audit
Independent Auditor examines Financial Statements
For each major activity, Auditors identify and assess 1) any risks which could have a
significant impact on the financial position or financial performance, and 2) measures
(called internal controls) the organization has put in place to mitigate those risks
Based on the risks and controls identified, Auditors consider what the leadership has done
to ensure the financial report is accurate, and examine supporting evidence
Auditors then make a judgment as to whether the financial report taken as a whole
presents a true and fair view of the financial results and position of the organization and
its cash flows, and is in compliance with financial reporting standards and, if applicable,
the Corporations Act.
Auditors issue publication of their independent opinion on whether or not those financial
statements are relevant, accurate, complete, and fairly presented
15

Recordkeeping &Reporting
Recordkeeping
Keep both electronic and paper files
Maintain a binder with sections for Minutes, Statements, NEF,
SPEAR, Remittance, Rhoer Club, Philo Affiliate, Expenses,
Income, Communications, etc.
File monthly or as often as possible
Review files periodically
Reporting
Provide a monthly chapter report and provide copies for everyone
Conduct a Quarterly Budget Review
Prepare for year-end closing in March
Submit reports and financial obligations by the deadline dates
Stay abreast of financial changes and reporting requirements
impacting non-profit organizations
16