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Annual Financial Review

May 22, 2012

Welcome back to Terminology Tuesday! Each Tuesday we will blog about some commonly misunderstood terms within the Fraternity. It’s our hope that you will take the time to read and then share this information with others.

Annual financial reviews are due June 15, but what exactly does that mean? An independent accounting review of the chapter’s finances for the current fiscal year (July 1‐June 30) must be completed annually. The reviewer may be a CPA, a member of the school’s accounting faculty, or similar professional.

Items to Cover During Annual Financial Review:

  •  Fall/Spring Income Statements and Fall/Spring Balance Sheets
  • Bank/School Statements
  • Current statements from national Fraternity
  • A list of members who owe the chapter dues or other money, how much they owe and the status of collection efforts or reasons for non-payment
  • National and Chapter Policies (to ensure they are properly being followed)
    • Chapter maintains a checking account in or with the business office of the college or university.
    • All checks must be signed by two different people.
    • Before approving a disbursement, the two officers should ensure that the disbursement is properly approved.
    • If the chapter has access to “Electronic Banking” or other electronic means by which funds may be transmitted from a Chapter financial account, the password to such account shall be changed upon reelection of officers.
    • If the chapter maintains a PayPal account (or similar online payment service account), it shall be set up as a “business” account, and set to automatically transfer any monies received directly to the chapter’s checking account.

 Remember to submit your chapter’s annual financial review before June 15! E-mail with questions.

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