Online Section Manual

Central Accountability of GSA Headquarters
This is the Responsibility of the Section Secretary/Treasurer

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 must be sent to headquarters.

Payment of Section Meeting Invoices

Each section may choose to receive a GSA credit card to help pay for section meeting items. The credit card statements will come directly to GSA for payment. Please select who on your committee will be responsible for getting the credit card. That person will need to send all receipts to GSA in order for GSA to match up with the monthly credit card statement.

Alternately, a Section may choose to submit invoices to headquarters for direct payment and eliminate the need to maintain a general bank. As before, each invoice should be approved by the Section Treasurer or President and identified with a description. Bills received at headquarters before 11:00 a.m. on Tuesday are routinely paid and mailed on Friday of that week.

The primary responsibility for the adequacy of financial information pertaining to section affairs rests with the section meeting general chair and the section treasurer. In the interest of assisting him/her in discharging his fiscal responsibilities the headquarters office of GSA maintains uniform summary records of all financial activities for each section as a part of its regular accounting system. The data for these records is obtained from the information provided from the meetings budget, credit card statements, and invoices. When the section meeting is completed, GSA will create a report showing the actual numbers, and a profit or loss to the section.

Budgets

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 created by headquarters be at least used as a guide (see attachment). The formats for the local committee treasurer's records of cash receipts and disbursements, which are discussed later, follow the pattern of the budget format and should prove helpful in the subsequent evaluation of the overall planning process.

The chairperson of each subcommittee (field trips for example) 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.

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 treasurer and the treasurer of the local committee, since it is the joint responsibility of these two officials to monitor subsequent receipts and expenditures. Once approved, please forward the budget on to GSA.

Disposition of Headquarters Charges

Section treasurers are expected to promptly remit to headquarters payments of all billed charges for services provided or expenses incurred by GSA on behalf of the sections.

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:

(a) legally, and within limitations established by Council,
(b) in compliance with regulations intended to safeguard the Society's 501[c][3] tax status, and in a manner so as to permit proper documentation in accordance with accepted principles of accounting.

Federal, State and Local Taxes

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 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.

Insurance

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.

Official Travel

Travel expenses incurred by section officers on official business for the section or the Society must be reimbursed from section funds. 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.

Audits

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. In the past, and because of the decentralization of section records, attempts to examine them at locations other than at GSA headquarters have not been altogether satisfactory. The design of the foregoing procedures, when fully implemented, should alleviate this situation.