The following are suggested guidelines for the responsible financial operation of a registered student organization. It is up to the officers to ensure that the organization has the proper controls in place to minimize the risks of financial mismanagement.
Expense and Revenue Management
- Use a budget. An organization should have a written plan of how it will manage its money for each semester or academic year. Budgets should be developed and approved by members before any expenditures are approved.
- Create and use expenditure and reimbursement forms on Bulldog Connect. Expenditures may be requested, approved, and reimbursed when necessary via the forms, establishing a digital history of all expenses.
- Setting an approval process for all purchases will control inappropriate spending or purchases. Suggested processes could include setting threshold amounts for purchase approval, establishing a two-signer approval system, or requiring prior authorization before any purchases.
- All expenditures not usual to the pursuit of the group's normal operations or not appearing on the budget should have prior approval from the organization. These expenditures could include, but are not limited to loans, transfers, or funds to other organizations; grants; special banquets; and social programs.
- Update authorized signatories immediately upon a change in officers. When there is a completely new group of officers, an outgoing officer should be present at the bank to verify the new signers.
- Never issue a blank check. Blank checks should be secured in a locked location. Keep a log of every check, whether written, voided, or blank.
- All checks written should be verified by maintaining documentation such as invoices, bills, receipts, or other legally binding evidence. Any reimbursement must be supported by a corresponding receipt or other documentation prior to payment. Any check payable to a signatory of the same check should bear the signature of another registered officer.
- Pay invoices and other bills on time to avoid late fees or the termination of relationships with vendors. Assign bill paying and account reconciliation to different members of the organization.
- Deposit any checks or cash received by the organization within 48 hours of receipt. Incoming checks should be marked "For Deposit Only" under the endorsement. Be aware of possible taxable income and make sure that it is recorded correctly.
Document Maintenance and Retention
- The organization's treasurer or designated financial officer should keep a record of all monies in all accounts. Make sure to keep a backup copy in case of emergency. Accounts should be monitored regularly, and the financial officer should make a financial report to the officers or organization as a whole on a regular basis.
- Financial records should also be maintained on an ongoing basis. Some records should be kept for particular lengths of time, according to accepted accounting practices. Records may be kept in electronic or hard copy. It is recommended to keep an electronic copy uploaded to the organization's page in Bulldog Connect to ensure access for future members.
Next: Taxes, Tax ID Numbers, and W-9s >>