TREASURER’S GUIDE

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NCRSP

Treasurer'S Guide

Gretchen Lampe

NCRSP Treasurer

2024-2026

Cell:1- 317-457-6253

Email:glampe225@gmail.com

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Guide to doing your best!

NCRSP Treasurer FAQs Most Frequently Asked Questions

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1.What is the purpose of a budget committee? Who serves on the budget committee?

• The budget committee can be appointed by the president of a local or the region director in a district. Many times the Executive Board serves as the budget committee.

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• The budget committee makes sure that membership dues are spent in a fiduciarily responsible manner and in compliance with local, region, and state policies and procedures. The dues are to fund your strategic plan and the mission and goals of NCRSP.

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• Once the budget has been made. It must come to the membership to be approved. (local or region meeting)

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NCRSP Treasurer FAQs

2. What is an audit, and why are they important?

• An audit reviews the financial report to ensure that funds have been spent in accordance with the adopted budget.
• The audit committee ensures there is proper documentation for the expenditures. (receipts and reimbursement forms)
• The audit committee ensures that all policies and procedures were followed in expending the local and regional money.
• The audit committee determines the ending balance for the fiscal year.

3. Who may be on the audit committee?

The audit committee is appointed by the president. No one who is authorized to sign checks or is a relative of or lives in the household with a check signer may serve on the audit committee

4. How long should a local or region keep financial records?

Financial records must be kept for 7 years.

NCRSP Treasurer FAQs

5. Once a local or region has determined its ending balance for the year, what happens to that money?

The money can become the beginning cash balance for the next year’s budget..

The money can be transferred into an investment or savings account.

The local or region should have a policy regarding how the money is used.

6. How should a local or region use grant money for membership or other projects?

The most important thing to remember about grant money is that it is one-time money. It does not recur year after year.

While you will deposit the money in the checking account, you will want to account for the money in a separate budget. By having a separate budget and keeping the expenditures separate, you will not mix your regular operating budget with your grant money.

NCRSP Treasurer FAQs

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7. Let’s talk taxes

If I have not received your region’s EIN number, please forward it to me as soon as possible.

We will be using a CPA to help us try to nest our locals uner their appropriate region. Otherwise, we will have 100 locals having to file for tax exempt status. That will be a lengthy and expensive project if we have to do it by local.

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The Role of Treasurer

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• Every local and regional treasurer has a fiduciary responsibility to ensure that membership dues are spent to fulfill the Mission of the NCRSP. (NCRSP - Governing Documents)

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• Every local and regional treasurer has a fiduciary responsibility to ensure that membership dues are properly deposited in checking and savings institutions in which they are insured.

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• Every local and regional treasurer shall work with a budget committee to prepare an annual budget that is shared and approved by the local or region organization. The budget is then to be sent to the NCRSP Office no later than October 15th.

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• Every local or region treasurer shall submit regularly a Financial Report at scheduled local and regional meetings. These reports do not require a vote, but the director or president is to order the reports to be duly filed with the meeting’s minutes and reports after any questions are answered.

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• Every local or regional treasurer shall work with an appointed audit committee to audit the books of the local or regional organization. No person whose is authorized to sign checks may serve on the audit committee.

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Budget

Exemplar LINK

Copiable, editable LINK for each local and region.

The LINK to YOUR OWN BUDGET WORK SHEET

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LINK

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The Role of Treasurer

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Dues: Receiving, Transmittal and Quarterly Payments  

2026 -2027 General Information on NCRSP Membership & Dues

• All local treasurers will receive members’ cash pay forms to distribute in August.
• All cash pay member dues are to be paid by December 15th.
• You may send as many transmittals (when sending at least 5 or more checks) as you have dues ready. It is to your disadvantage to hold dues.
• All checks are to be made payable to NCAE.
• Dues will be distributed to region treasurers on a monthly basis and they will distribute dues to the locals quarterly.
• Members can pay by payroll deduction, credit card, or eft (electronic fund transfer).
• All officers receive monthly membership reports by email from NEAReporting.

CASH PAYER FORM, TRANSMITTAL, LETTER

TREASURER’S TRAINING SESSION NOTES

The Role of Treasurer

• Bank Account (TREASURER & PRESIDENT OR OTHER OFFICER) must receive copies of monthly bank statements.  
• Collect Membership Dues for Cash Payers and transmit the dues to the state.
• Disperse checks (Payments) with approval following the budget and Local’s and Region’s, and State’s Policies. 
• Manage the local’s and regional financial matters. (Ex. Fundraisers and Donations)  
• Non-Profit organizations should spend at least 50% - 85% of income on members. (MEMBER DUES)  
• The Treasurer does not make personal decisions regarding the Locals’s or Region’s

Money! 

• The NCRSP STATE MILEAGE RATE is 50 CENTS PER MILE (LOCALS and REGIONS CAN SET OWN AMOUNT) 
• LOCAL MEMBERSHIP CHAIRPERSONS DO NOT COLLECT ANY DUES MONEY. Locals are HELD ACCOUNTABLE FOR ALL MONIES AND INFORMATION ON MEMBERSHIP FORMS) 

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Source for NCRSP Policy LINK

Next Steps

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■ Your budget that furthers the MISSION

■ Report submissions, e.g., Budget, Audit, etc.

■ Your Strategic Plan

■ Compliance with NCRSP Policy

■ Tax Law Compliance

■ More. . .

TREASURER’S TAX Information

INTERNAL REVENUE CODE 501 (C) (6)

• Must be an association of persons having some common business interest
• Primary purpose must be to promote this common business interest
• Must be a membership organization and have meaningful membership support
• Must not be organized for profit

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TAX EXEMPT STATUS

NCRSP is a corporation exempt from federal taxes under Internal Revenue Code 501(c) (6).

• NCRSP will work with a CPA to obtain tax exempt status for each region. We need the region treasurers to email the EIN

(Employer Identification Number) to Gretchne Lampe

• should obtain their own tax exempt status under IRC 501(c) (6) by submitting Form 1024.
• NCRSP’s non-profit status does not automatically make the local association exempt from federal taxes.

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BANKING

• All bank accounts should be established with an IRS-assigned Employer Identification Number (EIN).
• Your bank must have your 9-digit EIN number on file.
• Locals that do not have an EIN, one must be requested by completing and submitting a SS-4A
• Local’s EIN is required for every NCRSP local.
• Locals should verify the bank account was established using the correct EIN and NOT a member’s social security number.
• The Bank account must be reconciled Monthly!

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TAX RETURN OF EXEMPT ORGANIZATION

• Gross receipts < $50,000
• File Form 990-N (e-Postcard)
• See sample 990-N (e-Postcard) on next page.

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• Gross receipts >$50,000 and <$200,000 and Total Assets < $500,000
• File 990 or 990-EZ

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• Gross receipts > $200,000 or Total Assets > $500,000
• File Form 990

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REVOCATION OF TAX EXEMPT STATUS

• IRS will automatically revoke the exempt status of an organization that fails to file the required annual tax return for three (3) consecutive years.
• After revocation, the local needs to file a Form 1024 to have tax exempt status reinstated.

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SAMPLE 990-N (e-Postcard)

• Gross receipts < $50,000
• Form 990-N, Electronic Notice (e-Postcard) for tax-exempt organizations not required to file Form 990 or Form 990EZ, is used by small, is used by small tax exempt organizations for annual reporting and can only be submitted electronically.
• Information needed to complete the e-Postcard:
• Employer identification number (EIN), also known as a Taxpayer Identification Number (TIN).
• Tax year
• Legal name and mailing address
• Any other names the organization uses
• Name and address of a principal officer
• Web site address if the organization has one
• Confirmation that the organization’s annual gross receipts are $50,000 or less
• If applicable, a statement that the organization has terminated or is terminating (going out of business)

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INSURANCE

• Fidelity bond insurance protects against embezzlement, fraud, or other misuse of local funds.
• Liability insurance protects against claims resulting from injuries and damage to people and/or property.
• Local affiliates are not generally covered under NCAE’s liability insurance policy.

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Note: An exception to this is when a local hosts an event that is attended by an NCAE employee. In this scenario, NCAE can obtain a Certificate of Insurance (COI). The COI is typically requested by the venue owner.

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INTERNAL CONTROLS – DON’TS

• Don’t give out members’ personal information; keep members data secure.
• Don’t spend more than you make. Do not operate “in the red.”
• Don’t spend NEA/State membership dues for local’s activities. The local is a trustee of these funds and is not entitled to use these funds.
• Don’t deposit association funds into personal bank accounts.
• Don’t conduct transactions for private benefit.
• Don’t accept post-dated checks.
• Don’t spend funds for activities not approved by the membership.

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INTERNAL CONTROLS – DON’TS

• Don’t write checks for “Cash."
• Don’t sign blank checks.
• Don’t withdraw cash from the association’s bank accounts.
• Don’t use an ATM/Debit card on the association bank account.
• Don’t pay bills from statements. Require vendors to provide original invoice.
• Don’t “co-mingle” PAC funds with the association’s general funds.
• Don’t destroy association records until after retention timeline has passed.

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RECORDS RETENTION -PERMANENT

• Articles of incorporation/formation
• Bylaws and Constitution
• Audited financial statements, Year-end balance sheets
• Deeds
• Executive correspondence, meeting minutes, PAC deduction forms
• IRS notice of tax exemption
• Any IRS correspondence
• Note: Membership forms are kept permanently in the Membership Dept.

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POLITICAL ACTION CONTRIBUTIONS

• No local, state, or national PAC contributions can be deposited in a local’s bank account.
• New members must write a check payable to NCAE PAC and mail directly to NCAE Headquarters, along with their enrollment form.
• All PAC monies are deposited by the NCAE Business Office. NCAE is responsible for filing all Election Reports.
• PAC monies can only be used for NCAE-endorsed candidates.
• A local’s involvement in any election should be carefully monitored by the local treasurer in conjunction with your UniServ office and the NCAE Government Relations Department.

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TO SUM IT UP:

• Grow your local’s membership!
• Build your budget based on your membership numbers
• Consider a target increase or
• Consider no membership loss in 2019-2020
• Develop goals for 2019-2020 that will make you a strong local
• Membership Budget Monthly Local Dues
• Build your budget from the activities your local has identified
• Internal Controls – safeguard your data
• Comply with IRS guidelines

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