DBIO Recommended Practices - Appendix C
Division FinancesThe Association's Governing Document, Article XI, Section 3 allows for funding of Divisions in the form of an annual allotment. Total allotment funds, based on membership dues, are determined annually by the Board of Directors at their third quarter or October Meeting. Allotments are calculated using the Division's membership count as of December 31. Allotment checks are mailed in February. The Association fiscal year is January l-December 31.
No allotment shall be paid to a Division unless the Division has submitted accurate midyear and annual financial statement reports to Association Headquarters, Director, Finance. The Division must also submit an annual activities report on time to the Leadership Department in order to receive an allotment. The Board of Directors may grant funds or loans at its discretion. Requests for funds are, as a rule, considered only at the third quarter or October Board of Directors meeting. Each Division applying for additional monies must submit a detailed estimated budget to substantiate the request. This budget should then be submitted to the Division Cabinet Chair, who will make the presentation to the Board.
The Division and group treasurers shall maintain the financial records required for their units. A simplified single-entry system has been found sufficient for most cases. The treasurer shall prepare a report on the Division's or group's finances for each Division meeting.The following reports and record-keeping procedures are mandatory:
- The treasurer of each Division or provisional Division shall submit an annual financial statement to the Association office to the attention of the Finance Director by January 31 of each year. These must be submitted utilizing the Association provided financial software program. This deadline is most important and must be adhered to. A copy of the statement is to be retained for the Division's archives. This report is to be audited by a Division or group member who does not hold an elected office at the time of the audit or by any other qualified person available to the Division or group.
- No allotment shall be paid to a Division unless an annual financial statement has been approved.
- The treasurer of each Division or provisional Division shall submit an unaudited mid-year financial statement to the Association office to the attention of the Director, Finance by June 30 of each year. A copy of the statement is to be retained for the Division's archives.
- A Division or group within a Division may have undesignated funds for general administration. These funds are derived from allotments and from income accruing as a result of normal activities, such as advertising in the Division bulletin, dinner meetings, etc. Normal charges against such "regular funds" include bulletin expenses, postage, meeting notices, etc.
- Normally a Division or group will administer its expected activities to utilize the greater part, if not all, of its allocated funds. However, a Division or group may elect to conserve its funds gradually in anticipation of specific undertakings where special project funds have not already been accumulated. Other Divisions or groups may, through lack of activity in one year, carry unspent allotments over to following years. Funds accumulated for either of these reasons and not expected to be spent during the year's usual activities, may be transferred to a project fund. Money earned in special Division or group projects may be maintained in one or more project funds, general or designated. Examples of such projects are seminars or workshops for which a fee is charged, royalties paid by the Association for Division-originated publications, receipts from similar works published independently by the Division, and fund-raising activities conducted for a specific purpose. Expenses involved in such projects are to be charged against these funds. Project funds must be reported as part of the periodic and annual financial reports.
- A Division must report property that falls within the definition given in the "Property Guidelines" on a special page accompanying the financial statement. Upon dissolution of a Division, its funds and properties shall revert to the Association. On dissolution of a group within a Division, the group's remaining funds revert to the Division.