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NASW/Texas Fiscal Policies & Procedures
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NASW/Texas Fiscal Policies and Procedures



INTRODUCTION


Based on Chapter bylaws, the NASW/Texas Board of Directors is responsible for the financial management of the Chapter. This responsibility includes developing an annual Chapter budget, developing and revising financial policies and procedures, approval of the annual financial report for the NASW National office, selection of independent auditors and approval of the annual Chapter audit report and 990 tax returns, monitoring to ensure that Chapter operations are conducted in a manner consistent with Chapter fiscal policies and procedures and in a financially responsible manner. Although various aspects of fiscal operations may be delegated to individuals or committees, ultimate responsibility for Chapter finances rests with the Board of Directors.


I. POLICIES


A. The Fiscal Policies and Procedures of NASW/Texas shall be codified. Changes in the Fiscal Policies shall be recommended and approved by the Board of Directors by a simple majority vote.

B. The Fiscal Policies and Procedures shall be reviewed annually by the Chapter Finance Committee and changes recommended to the Chapter Board. Recognizing the importance for Board members to have an opportunity to review and study changes to fiscal policy, Board members will be given as much advance notice as feasible prior to taking board action on fiscal recommendations affecting Branch activities.

C. The Board of Directors shall be reimbursed for expenses related to attending at least three board meetings and the Sandra Lopez Leadership Institute.

D. The NASW/Texas Board of Directors shall adopt an annual budget in which Chapter projected expenditures do not exceed projected revenues for the budget period.

E. The Fiscal Operations of NASW/Texas shall be consistent with and in compliance with "Chapter Standards," as approved by the National Board of Directors, NASW.

F. NASW/Texas shall have an investment policy.

G. NASW/Texas shall have an annual audit conducted by an independent auditor selected by the Board of Directors. A bid shall be obtained from three accounting firms at least every five years.

H. The Annual Budget shall be established by the Board of Directors based upon available revenues, Goals and Objectives of Delegate Assembly, and the NASW/ Texas Strategic Plan for the fiscal year of NASW/Texas.

I. NASW/Texas shall have a policy related to credit/debit card usage by staff and/or volunteers.

J. Staff and board members having access to funds shall be bonded. (This coverage is provided through the national office).

K. The general membership of NASW/Texas shall be informed of the financial status on an annual basis.

L. All Chapter services and programs shall be evaluated annually by the Executive Director and reviewed by the Finance Committee and the Board for fiscal soundness.

M. All NASW/Texas Chapter physical assets shall be inventoried annually by the Chapter staff.

N. NASW/Texas shall fund expenses incurred by the Delegate Assembly representatives.

O. No sitting member of the Board of Directors may earn revenue from NASW/Texas.

P. NASW/Texas shall contribute to eligible employees’ retirement funds in accordance with the Chapter Personnel Policies. The Chapter shall contribute on an annual basis six (6) percent of an employee’s actual wages for the previous year or period of eligibility in the previous year. Forfeitures from non-vested employees who no longer work with NASW/Texas may be used to fund NASW/Texas contributions. (Per Personnel Policy)


II. PROCEDURES


A. BUDGET


1) The fiscal year budget (July 1-June 30) shall be approved at the fourth quarter Board of Directors meeting for the next fiscal year. Normally the fourth quarter Board meeting occurs in April of each year. A preliminary fiscal year budget shall be developed by the Executive Director with the Finance Committee by March 31st to be approved by the Finance Committee prior to submission to the Board of Directors at the April board meeting.

2) The fiscal year budget shall be based on the Chapter’s Strategic Plan, National NASW Objectives, and Delegate Assembly Objectives.

3) Financial reports shall be provided to the Board of Directors at least quarterly.

4) The Board of Directors and branch chairs shall establish a Planning Cycle for requests for funding. The Board approved planning cycle shall consist of an explicit set of activities required for budget and financial planning as well as established deadlines for the completion of these activities. Information on the financial planning cycle shall be directly communicated to Board members, committee and task force chairs. Information on the financial planning cycle shall be communicated to the membership annually through the Chapter Newsletter.

5) Funding requests from committees, sub committees and task forces shall be reviewed by the Treasurer and submitted to the Finance Committee. Committees, subcommittees, and task forces not submitting a projected budget request by the January board meeting may receive no funding.

6) An adequate operating reserve shall be maintained each year (see Funds Management procedure) and financial information on the amount of that reserve shall be included in financial reports to the Board.

7) The Board may designate additional funding for an unbudgeted project for the purpose of enhancing the activities of local Branches, committee, and/or task forces. In order to obtain additional allocations the chair of the local Branch, committee, or task force must submit a request for additional funding to the Finance Committee. This request must specify the reason for the request, how the proposed expenditure will further the goals of the Chapter, and provide a budget for the expenditure of the funds. All such funding requests must be reviewed and approved by the Finance Committee.

8) The board may designate net assets to be used toward the funding of the two Delegate Assembly meetings (West Central Coalition Meeting and the Delegate Assembly meeting). This designated net asset balance will be reviewed each year in conjunction with the development of the budget.

9) The board may designate net assets to be used for the purpose of unexpected capital expenditures. This designated net asset balance will be reviewed each year in conjunction with the development of the budget.



B. Funds Management Procedures


1) Funds


a. CHAPTER OPERATING FUND

The purpose of the Chapter Operating Fund is to hold sufficient cash to pay regular bills. This fund serves as the depository for dues rebate transfers from the national office. The chapter may also apply for and be granted an operating line of credit by its bank and/or credit union. The purpose of the line of credit is to assist with chapter funds due to unexpected expenses that result in temporary shortages in cash flow. The line of credit will not be invoked without financial committee/Treasurer approval. The term of a note on the line of credit will not exceed 120 days.

b. CHAPTER INVESTMENT FUND

The Chapter Investment Fund shall be defined as all cash and investments not held in the Operating Fund for immediate distribution. The Investment Fund will maintain sufficient liquidity to fund temporary timing differences between receipt of revenues and payment of expenses. Remaining funds will be invested according to Section X of this document. The Chapter Investment Fund shall be managed by an investment manager or brokerage service as determined by the NASW/Texas Board of Directors. The Investment Policy will be reviewed at least once annually by the Finance Committee of the NASW/Texas Board of Directors.

2) The Finance Committee shall review annually, at the January Board Meeting, all fees charged for Chapter services.

3) Branches and committees shall pay a fee to NASW/Texas office for tracking and monitoring CEU credits. An appropriate fee for these services shall be set by the Finance Committee and approved by the Board of Directors.

4) 100% of the profits or losses from workshops developed by local Branches, committees, and task forces shall be credited or debited to the sponsoring entity’s account. Profit or loss on workshops shall be determined after the deduction of applicable fees for services rendered from the Chapter office and expenses associated with the event.

5) Committees and task forces shall maintain 100% of the balance for a carry over credit from one fiscal year to another for activities for which they generated funds. See Section VIII regarding Branch balances.

6) Line item changes in excess of 10% of the particular line item budget require a recommendation from the Finance Committee and the approval of the Board of Directors. Line item adjustments  10% or under may be made administratively. Chapter committees and task forces may make adjustments between line items provided that the adjustment is within their available allocation and credits, and the purpose of the expenditure is consistent with their work plan.

 


III. FINANCE COMMITTEE


A. The Treasurer shall chair the Finance Committee. Notice of the Treasurer’s name shall be submitted to the national office within fifteen days of election for bonding purposes.

B. The annual budget shall be prepared by Executive Director of the Chapter and submitted to the Finance Committee for review prior to the 4th quarter (April) board meeting.

C. Line item changes in excess of 10% of the budgeted item must be reviewed by the Finance Committee for recommendation to the Board.

D. The Finance Committee shall annually review NASW/Texas Fiscal Policies and Procedures and recommend to the Board any changes. This review will be conducted at the January Board meeting.

E. Exceptions to the Fiscal Policies and Procedures must be reviewed by the Finance Committee prior to board consideration.

F. The Finance Committee shall review the annual audit, communications from the independent auditor, and 990 tax returns, and recommend approval to the Board.


IV. BOARD OF DIRECTORS


A. The Board of Directors shall approve the budget annually. The Board shall approve the annual budget at the fourth quarter board meeting.

B. The Board of Directors shall approve line item changes as described in III.

C. The President, Vice President, Treasurer, and Executive Director shall be authorized to sign checks. In case of emergencies, two staff members acting together may sign a check using the Executive Director’s signature stamp. Approval must be received from one of the authorized signers prior to using the stamp.

D. The Board of Directors shall review and approve the annual audit of NASW/Texas, the 990 tax returns, and related communications from the independent auditor.

E. Newly elected Board members shall receive a copy of the Fiscal Policies and Procedures from the Executive Director at the first Board meeting of the fiscal year (July).

F. The Board of Directors shall approve any changes to the Fiscal Policies.

 

G.  The Board of Directors shall approve any loans, notes or other borrowing arrangements required by the Chapter.

 

V. ADMINISTRATION


A. The Executive Director shall be responsible for the maintenance of an accurate and current copy of the Fiscal Polices and Procedures.

B. The Fiscal Policies and Procedures shall be available to all Chapter members upon request.

C. The Executive Director may enter into budgeted contracts with the knowledge of the President and the Treasurer.

D. NASW/Texas may engage in contracts in accordance with "Chapter Standards."

E. Line item adjustments to the budget may be made within the parameters specified in III.

F. Non-budgeted expenditures of over $1,000 must be approved by the Finance Committee.

G. Non-budgeted expenditures of over $5,000 must be reviewed by the Finance Committee and approved by the Executive Committee.

H. Capital purchases of $1,000 or more and than a life of one year or longer shall require three bids and approval of the Finance Committee.

I. Contracts over $5,000 require three bids.

J. The Treasurer will be responsible for signing a copy of the check run to ensure oversight of expenditures.

K. The Executive Director shall maintain a current listing of all contracts.

L. The Treasurer shall be given, on an annual basis, a complete listing of all contracts, service agreements, and lease agreements as of the initiation of the Fiscal Year and will report this to the Finance Committee.

M. The Executive Director shall provide to the Board of Directors a Quarterly Fiscal Report and address fiscal issues in the Monthly Operations Report.

N. Proposed changes to payroll related to staff compensation shall require a signed memo from treasurer.


VI. REIMBURSEMENTS


A. Reimbursements must be requested on the appropriate form, with the authorized signature of the Board Member, Branch Chair, committee or task force. Receipts should be attached, except as noted in VI.

B. Reimbursement for elected and appointed board members shall be made for four Board of Directors meetings per year and for authorized committee and task force meetings.

C. Requests for reimbursement shall be submitted within 45 days of the expenditure.

D. Reimbursement of approved requests shall be processed during the check run immediately following receipt of the request at the Chapter Office.

 

VII. TRAVEL


A. Reimbursement for air travel to authorized meetings shall be made at the lowest available rate at the time of purchase. Travel should be planned far enough in advance to qualify for discounted, non refundable airline tickets.

B. If the member prefers to travel by automobile, reimbursement for automobile travel to authorized meetings will be at the current board established mileage rate for volunteer travel or the lowest published advance purchase airline rate available plus $10, whichever is less. The member may also rent a car as long as the cost is consistent with these guidelines.

C. Reimbursement for task force, Branch, or committee member’s travel to Board meetings shall be approved only if specifically authorized by the task force, Branch, or committee chair with funds from the task force, Branch, or committee budget.

D. Ground transportation to authorized meetings will be reimbursed if a courtesy shuttle is not provided. Ground transportation will be reimbursed at the established rate for taxis. Receipts are required. Automobile rental will be reimbursed only when the cost of renting a car is less than the taxi fare. Airport parking will be reimbursed upon the submission of receipts.

E. Requests for reimbursement shall be submitted within 45 days of the expenditure.

F. Reimbursement of approved requests shall be processed at the pay period immediately following receipt of the request at the Chapter Office.


VIII. BRANCHES


A. The Board of Directors shall determine Branch allocations as a part of the annual budget process.

B. Branch expenditures shall be taken from branch funds.

C. Active branch funds shall be carried over each fiscal year at 100%.

D. Branches shall not expend over their available funds.

E. Branch chairs shall assume responsibility for operating within NASW/Texas fiscal procedures and policies and annual allocations.

F. Contributions to other individuals or other nonprofit organizations will be accompanied by a full proposal on what the money will be used for, how it supports the strategic plan of the chapter, and how it will benefit the branch (members). The request will be reviewed and approved by the branch
steering committee. Contributions exceeding $500, with the exception of donations for use of meeting space, shall be submitted to the Finance Committee for approval prior to the expenditure. See NASW/Texas Branch Expenditure Procedures.

G. The Branch chair is responsible for monitoring Branch revenue and expenses and ensuring adherence to the Branch budget.

H. The Branch chair must approve all Branch expenditures and ensure that all charges further the goals of the branch for the benefit of branch members.

I. All funds shall be maintained in the NASW/Texas accounts and interest earned will accrue to chapter accounts.

J. Expenditures by persons without the approval of the Branch chair are the liability of that person.

K. Branch chairs shall be informed by the Executive Director (or designee) on a quarterly basis of the status of their funds.

L. Branches that expend above their annual allocation and carryover funds shall have their following year’s allocation reduced by the amount over spent.

M. Branch expenditures shall be submitted within 45 days to receive reimbursement.

N. Reimbursement requests shall require a legible receipt indicating day of transaction, vendor, items or service, cost center and approval of Branch chair.

O. Branches shall have an annual agenda item related to contributions to TPACE and the Public Education Campaign.

P.    If a branch has been inactive for more than 2 years, all funds will default to the SWRI Opportunity Fund.  Inactivity is defined as no financial activity in the branch and no leadership (NLIC or branch chair).

 

IX. COMMITTEES AND TASK FORCES


A. Expenditures for committees and task forces must be within budgeted allocations.

B. Committees and task forces must submit goals, activity plans, and budget requests on an annual basis for review by the Board. This information should be submitted for the third quarter (January) Board meeting. Annual budget allocations will be determined by the Board based on the availability of funds, Chapter goals, and annual submissions from the committees and task forces.

C. Committee, task force, and sub-committee requests must be submitted within the Board of Directors Planning Cycle to be approved. Committee/Task force chairs shall be informed at the beginning of each fiscal year by the Executive Director of the funds available (allocated and carry-over) for their respective committee/task force.

D. Committee and task force expenditures shall be taken from the allocation first, and then from earned credits.

E. Committee and task force credits shall be carried over in each fiscal year at a 100% level.

F. Committees and task forces shall not expend over their allocation and credits for the fiscal year.

G. The committee chair is responsible monitoring committee revenue and expenses and ensuring adherence to the committee allocation.

H. The chair must approve all committee/task force expenditures.

I. All funds shall be maintained in the NASW/Texas accounts and interest earned will accrue to chapter funds.

J. Expenditures by persons without the approval of the chair are the liability of that person.

K. Chairs shall be informed by the Executive Director or designee on at a minimum of a quarterly basis of the status of their funds.

L. Committees or task forces that expend above their annual allocation and credits may have their following year’s allocation reduced by the amount over spent.

M. Expenditures shall be submitted within 45 days to receive reimbursement.

N. Reimbursement requests shall require a legible receipt indicating day of transaction, vendor, items or service, cost center and approval of chair.

O. Committee and task force meetings shall be scheduled at least four weeks in advance in order to meet the guidelines for reimbursement of travel as noted in section VII.

P. Committee and task force meetings are budgeted to be held in Austin. Meetings may be held outside of Austin if the location change is consistent with the board approved program plan and budget. Chairs must complete an analysis of the travel cost of the meeting if a meeting is held outside of Austin and the cost of travel must be within the planned amount.

 

X. Investment Policies and Objectives Statement


A. Investment Objectives


These assets represent the underlying long-term financial security of NASW/Texas. These assets are distinct from the cash operating accounts and are expected to generate an annual return on investment to fund initiatives or augment existing programs as determined by the Board of Directors. To this end, all interest earned from NASW Texas funds will accrue to the chapter funds.

The first priority in investment of chapter funds should be the maintenance of an adequate net asset balance to ensure continuing chapter operations. The National Association of Social Workers requires Chapters to maintain a three month cash operating reserve that is based on 25% of the previous year’s actual expenditures. These funds should be invested in interest bearing accounts, in amounts that do not exceed FDIC coverage. In addition, NASW/Texas’s policy is to maintain a net asset balance equal to 30% of the average of the previous three years’ total budgeted expenses. Equity in the building is NOT considered to be part of this operating reserve.

Investments should be made in such a manner as to obtain maximum interest while ensuring safety of the principal. Funds will be invested with the expectation that each investment will be held until maturity. In order to ensure liquidity of funds for operation, a minimum of fifteen to twenty percent of cash operating reserve funds should be placed in accounts that allow for withdrawal in 30 days or less without significant interest penalty.

Investment such as stocks, options, futures, and derivatives (or funds that invest in any of these items), which pose a significant risk to the investment principal are not permitted.

The Executive Director or designee shall be empowered to move investment funds in accordance with the NASW/Texas fiscal policies and investment policies. Non-routine movement of Investment Funds requires approval of the NASW/Texas President and Treasurer. Verbal approval of such investment activity must be followed up with written documentation signed by the NASW/Texas President and Treasurer.


B. PERMITTED INVESTMENTS


1. Direct obligations issued or guaranteed by the US Government or its agencies.

2. Certificates of deposit that do not exceed FDIC insurance, including interest, at commercial banks or savings and loan institutions.

3. No-load money market mutual funds.

4. Interest-bearing checking or money market accounts in federally insured banks and savings and loans not to exceed federally insured amounts.

C. MATURITY


The maturities of investments for the Investment Fund shall be limited to three years or less within the restraints of the objectives above.

D. PERFORMANCE EVALUATION


The Finance Committee shall review the performance on a quarterly basis and make recommendations for adjustments.


ADOPTED 10/85; REVISED 7/86; REVISED 10/87; REVISED 11/89; REVISED 7/91; REVISED 7/93; REVISED 7/95; REVISED 6/97; REVISED 7/97, REVISED 7/99; REVISED 4/01; Revised 5/03; REVISED 1/05; Revised 1/06; Approved 1/07, Revised 1/08, Revised 1/09, Revised 1/10, Revised 1/11, Revised 1/12, Revised 1/13
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