CHAPTER V. LOCAL ORGANIZATION FINANCES
Managing Local Organization Finances Duties of Local Organization Finance Committee
Sound management of a local organizationʼs financial affairs is the responsibility of the finance committee which recommends how funds should be allocated and spent.
Knowledge of bookkeeping, budgeting, and financial reporting, in keeping with state organization procedures is necessary.
The finance chair serves ex-officio( without vote) on all local organization committees which disburse money. The chairman should make sure that all financial activities conform to bylaws and discourage projects unrelated to organization purposes. THE FINANCE CHAIR SHOULD REVIEW THE TREASURERʼS MONTHLY STATEMENT, CHECKING EXPENDITURES AGAINST THE BUDGET, AND KEEP A COMPLETE FILE ON ALL THE LOCAL ORGANIZATIONʼS FINANCIAL REPORTS.
A budget is Essential. Money wisely budgeted can help a local organization achieve its many goals. Points to remember in preparing a budget are:
• Low expected income and high anticipated expenses;
• Bulk of income should come from dues; * Administrative expenses should be covered by local organization dues;
• Fund raising should never be a local organizationʼs main activity;
• Estimate income based on no more than total membership of the prior year, plus a conservative estimate of miscellaneous income.
Occasionally, special projects not included in the budget may require supplemental income. Requests not budgeted should be sent to the finance committee for reveiw and evaluation. The finance committee will then make a recommendation to the executive committee or the board of directors.
A budget is a flexible instrument and an essential plan on which all local organizationʼs activities depend.
9 July 1994