Finance - Treasurer

PURPOSE

The purpose of the Finance Committee (Treasurer) is to draft the operating budget for the up-coming year as soon as is practical after the new officers have taken office. The draft of the budget is presented to the Executive Committee for approval. Revisions in the budget should be evaluated by the Finance Committee and presented to Executive Committee for subsequent approval.  The Treasurer will also chair the Chapter Investment Subcommittee.

COMPOSITION

The Finance Committee is composed of a chairman, the Chapter Treasurer, and other committee members as deemed appropriate.  It is recommended that the Chapter Secretary be one of these members for in the normal course of progression he will become the next Treasurer.  His participation on this committee will help him when he assumes the Treasurer's office.

GUIDELINES AND INSTRUCTIONS

  • Obtain file, current financial software program and current computer file from the outgoing Committee Chairman.  Also obtain the current check book and any other account information from the outgoing Treasurer.  Review contents prior to first Committee meeting.
  • July 1 - Send out letter to all new committee chairmen  soliciting their inputs to the new Chapter budget. It is helpful to include with this letter a summary of each  committee's expense and income items for the past two or three years to aid the new chairmen in their planning.  Also include a request for information on any large expenditures, specifically the date and approximate amount.  Some expenditures such as paying for the printing and mailing of the Directory can be over $10,000.  Funds will need to be available for these expenditures and some investment accounts may take over 30 days to get the money to the Chapter.
  • July - Prepare draft of new budget for the first executive  committee meeting.  The significant Chapter income items  outside of those related to a specific Chapter Committee include:
    • Savings account(s)
    • Interest
    • Chapter Investment accounts with ASM Headquarters
    • Regular and Sustaining Member dues rebate from ASM International Headquarters.  The dues rebate figure can be obtained by calling ASM Headquarters.
  • Send copies of Proposed Budget to all chairmen and Chapter officers at least a week before the next scheduled Executive Committee meeting.  Check with Chapter Chairman to determine exact date of Executive Committee meeting.
  • The approved budget should be distributed to all officers and committee chairman following the Executive Committee meeting.
  • July 1 through June 30 - It is the Finance Committee's responsibility to see that the Chapter budget is balanced and remains so throughout the year.  Any overruns or large expense items should be investigated by this committee and a report of their findings should be made to the Executive Committee.
  • June 15 - Prepare an annual report summarizing the year's activities to be approved by the Audit Committee for submission to the Executive Committee at the annual business meeting in June.
  • Transfer the complete Committee file to the incoming Committee Chairman.

BUDGET CONSIDERATIONS

  • Committee meeting expenses.
  • Software updates.
  • Computer acquisition and upgrades.

Chapter Investments Subcommittee

PURPOSE

The Chapter Investment Subommittee will have responsibility for investing the financial assets of the Chapter in a prudent and fiscally responsible manner.

COMPOSITION

The Chapter Investments Subcommittee shall consist of a minimum of three members and must include the Treasurer as subcommittee chairman.

GUIDELINES AND INSTRUCTIONS

The Chapter Investments Subcommittee will invest the financial assets of the Chapter within the following general guidelines:

  • The Committee will seek to establish a balance of return on the investments with the fundamental need to preserve assets.
  • A majority of the committee must approve any changes in how the Chapter assets are invested.  Investments may include but are not necessarily limited to:
    • Stock mutual funds
    • Index mutual funds
    • Bond mutual funds
    • Checking accounts or money market funds
    • Bonds such as Treasury Bonds and municipal bonds
  • The Committee will not invest in "junk" bonds or other high risk investments without the approval of the Executive Committee.
  • Since it is assumed that the assets will be invested through a company, the company must have appropriate licensing, bonding, insurance, etc.  A major bank, investment company or other firm with experience dealing with the needs of non-profit organizations should be used.  The firm must provide appropriate information showing it meets the licensing and other requirements to the Committee prior to investing with the company.  Alternatively, ASM provides Chapter Investment Program (CHIP) accounts that can be utilized.  Selecting the actual mechanism for investing will be the responsibility of the Subcommittee.
  • The Subcommittee will meet quarterly throughout the year to review the performance of the investments and determine if changes should be made in the investments.  At each meeting the allocation of assets between various investment types, i.e., stocks, bonds and cash, will be set and changes made to the investment portfolio to bring the portfolio in line with the allocations.
  • The Committee will provide quarterly updates to the Finance Committee and Chairman on the current state of the investments.  Typically these will be copies of the quarterly or monthly account statements and a summary sheet if required.  In addition, the Committee will report the state of the investments at each Executive Committee meeting with a written report for inclusion in the Minutes.  The Committee will also present a final report at the June meeting giving the composition of the investment portfolio and the change in asset value since the prior June.

BUDGET CONSIDERATIONS

  • Committee meeting expenses
  • Investment fees and similar expenses
  • Bank fees