Due to the parental relationship of the Geological Society to each of its Sections, the necessity of requiring their uniform adherence to its fiscal policies is self-evident. Such policies are to be recognized as prerequisite for meeting minimal requirements of federal statutes which apply to non-profit organizations claiming tax exempt status under Section 501[c][3] of the Internal Revenue Code.

To enable Section officers to better discharge fiscal responsibilities for Section activities in compliance with these requirements, the following guidelines and procedures have been developed. While a degree of flexibility in their application is permissible, they should, for the most part, be closely observed by the individuals responsible for their implementation, to insure uniformity, consistency, and adherence to acceptable standards of accounting.

Because of its ultimate accountability for section funds, GSA is required to maintain certain records that will enable it to properly discharge this responsibility. These records are an integral part of the Central Accounting System, which is subject to audit and must, therefore, reflect all transactions affecting the financial position and net assets of each section, and are fully supported by original documentation. This imposes on all sections and local committee treasurers the responsibility for promptly submitting to headquarters documentation to support both their cash receipts and disbursements. Included as evidence, but not limited to, are such things as registration forms, remittance advices, invoices, bills, claims, and copies of official resolutions specifically authorizing or directing the expenditure of funds. Where sections have a need to retain documents of this nature, it is recommended that they be Xerox copies since the originals should be sent to headquarters.

Section secretaries should forward to headquarters to the attention of the Senior Accountant, any donations, sponsorships or other miscellaneous funds that are sent directly to them. These funds will be processed at headquarters and credited to the section cash account maintained by headquarters.

The section secretary should submit invoices, expense reimbursements, etc to headquarters for direct payment with proper approval and either an account code or a description.

Bills received at headquarters before 5 p.m. on Monday are routinely paid and mailed on Friday of that week. Please contact the senior accountant at headquarters if there is an need for an immediate payment. At all times authorized section representatives will have unrestricted access to funds credited to their account. However, disbursements in excess of section account balances will not be allowed.

Cash accumulations not used by the section will generate earning credits based upon the Section’s average quarterly account balance and average quarterly interest rates for $100,000 certificates of deposit with a one year term.

If GSA headquarters is handling the section meeting registration, funds received will be processed through the membership system and credited to the section cash accounts.

If GSA headquarters is not handling the section meeting registration, these funds will need to be accounted for by the section and the proceeds forwarded to headquarters. Please consult the senior accountant for specifics of how to handle this situation.

The payment of section meeting expenses can be handled in several ways.

The primary responsibility for the adequacy of financial information pertaining to section affairs rests with the section secretary. In the interest of assisting he/she in discharging his fiscal responsibilities the headquarters office of GSA maintains uniform summary records of all routine financial activities for each section as a part of its regular accounting system. The data for these records is obtained from processing receipts and payments through the headquarters accounting system. Headquarters staff will request proper documentation to process receipts and payments.

The primary responsibility for recordkeeping at section meetings is that of the section meeting chair or the designated treasurer of each local committee. Sharing in this responsibility, in an advisory capacity, is the section secretary. It is his duty to provide the local committee with proper guidance in the administration of financial affairs to assure compliance with headquarters accounting requirements. The following procedures are recommended as means by which these requirements may be fully satisfied.

It is a fundamental requirement of fiscal planning to develop a budget before doing anything else. The budget, as it concerns the planning of a meeting, provides the basis for the establishment of registration and other fees that will become the primary sources of revenue required to defray meeting expenses. Each meeting is to be self-supporting and, at a minimum, must break even.

While the local committee of a section may develop its own budget format, it is strongly recommended that the one in use by headquarters for its annual meeting be at least used as a guide (see attachment).

A separate budget sheet (sample attached) should be prepared for the costs of each functional component of the meeting. Items for consideration are listed on the list included in this section.

The chairperson of each subcommittee should be required to prepare a budget for the activities for which it is responsible and deliver same to the general chairman, who in turn is responsible for compiling the consolidated budget.

A preliminary budget should be submitted to the meetings department for review. Based on the preliminary budget the meetings department will assist in setting fees and making other financial decisions.

When the budget is finally agreed upon and the proposed registration and other fees have been established, a copy of the final budget must be provided to the section secretary and the chair or designated treasurer of the local committee and GSA headquarters meeting staff. The section secretary and the chair or designated treasurer of the local committee is responsible for monitoring revenue and expenses of the meeting.

If headquarters is handling all the receipts and disbursements for the section meeting, the senior accountant will provide a detailed spreadsheet of the revenue and expenses for the meeting. The section meeting chair will be responsible for working with the senior accountant at headquarters to ensure that all items for the meeting have been recorded on the reports provided by headquarters.

If the section has chosen to open their own checking account for the meeting, they will be expected to keep detailed records of all receipts and disbursements and to provide receipts, registration forms etc to headquarters at the end of the meeting along with any funds remaining in the checking account within 30 days after the meeting completion and no later than June 15th. These transactions will be entered into the headquarters accounting system and added into the report detailed above. The section meeting chair will be responsible for working with the senior accountant at headquarters to ensure that all items for the meeting have been recorded in the reports provided.

Any advances from headquarters for checking accounts are not to be considered revenue of the meeting and should be reported according.

Local committee chairs or the designated treasurer are responsible for finalizing all meeting financial transactions. This includes the payment of all pertinent bills or invoices; the resolution of all claims for credits or rebates and the issuance of any refund checks as may be required. If the section had their own checking account, all documents of the meeting consisting of bank statements, canceled checks, records of receipts and disbursements together with all supporting documentation pertinent thereto, are to be delivered intact GSA headquarters senior accountant within 30 days after the meeting completion and no later than the 15th of June following the conclusion of the meeting.

If the section is holding a joint meeting with another organization who is handling all or part of the cash receipts and/or disbursements, please contact the senior accountant to discuss what documentation and reporting will be required for the meeting.

Section treasurers are expected to promptly approve payments to headquarters for all billed charges for services provided or expenses incurred by GSA on behalf of the sections. These charges will be deducted by headquarters staff from the section cash account and transferred to the headquarters account upon approval from the section secretary.

Since Council action is clear regarding section autonomy in matters concerning fee assessments and collection of funds, the method by which each section proposes to recover the cost of abstract fees charged by headquarters is left to section discretion. The only limitations are that it must be done:

Because GSA is a non-profit organization within the meaning of Section 501[c][3] of the Internal Revenue Code, it is exempt from paying income tax except on certain unrelated business income, as explained under "Accountability and Disposition of Exhibit Booth Income". On the whole most of the income derived from its professional activities is therefore non-taxable. Normally this tax exempt status entitles the Society to claim similar exemption from state or municipal income taxes and, in most cases, applies as well to taxes on both real estate and personal property which it owns.

The Society is declared legally exempt from paying sales tax on purchases made in Colorado because of its non-profit status under the 501[c][3] regulation. However, since each state or jurisdiction makes its own rules in this respect, section and local committee treasurers are advised to investigate local statutes and ordinances to determine what liability they may have with respect to goods purchased.

Generally, most states and municipalities having sales tax laws require that, notwithstanding other exemptions which may apply, non-profit organizations are obliged to collect and remit sales tax on merchandise they may sell. Such is the case involving GSA's sales of its publications in the states of Colorado and New York and on its cash sales during meetings held in other states. This would also hold true for sections should they become involved in cash sales of publications or other merchandise at meetings.

The comprehensive public liability and Officers and Directors liability insurance carried by GSA encompasses all activities of the Society and the official acts of its Officers and Directors. Section officers are thus assured of appropriate coverage at all times and are advised to notify headquarters immediately in the event of an occurrence which might result in a claim for injury, loss or damage against the Society.

Please refer to the field trip section of this manual for insurance coverage on field trips.

Travel expenses incurred by section officers on official business for the section or the Society must be reimbursed from section funds unless headquarters has authorized specific items to be paid by headquarters. Councilors, officers of the committees of the Council, and GSA staff personnel are reimbursed from GSA general revenues when on official business for the Society in connection with section activities except as noted below. The sections will be responsible for paying for the following for headquarters staff at the section meeting:
    2 meeting registrations for GSA officials not staff.
    7 nights lodging (3 nights for the Bookstore staff, 4 nights for GSA officials)
    1 bookstore booth.

Except as elsewhere provided in these procedures, no additional financial reporting to headquarters is required. This does not, however, relieve section treasurers from reporting requirements imposed by Council rules and regulations or those of the sections themselves.

As has been indicated, the books and records of the Society, including those relating to sections, are subject to an annual audit by independent accountants.