ALPHA KAPPA ALPHA SORORITY, INC. TAU IOTA OMEGA

ALPHA KAPPA ALPHA SORORITY, INC.Tau Iota Omega ChapterCHAPTER FINANCIAL GUIDELINES, POLICIES AND PROCEDURESC. Financial RecordsThe Tamiouchos and the Pecunious Grammateus must maintain monthly financial records,and present written reports to the chapter. These financial records shall include thefollowing: Balance Sheet – A statement that lists all assets and liabilities of the chapter as ofa given point in time, (i.e. as of December 31st). Cash Receipts Report – A statement that lists all cash collected by the chapter,regardless of the source of funds. Cash Receipts Journal – A journal that shows the same information as the report,but categorizes receipts by source of revenue as listed in the chart of accounts. Cash Disbursements Report – A statement that lists all the cash expended by thechapter, regardless of the source of funds. Cash Disbursements Journal – A journal that shows the same information as thereport, but categorizes expenditures by categories as listed in the chart of accounts. Comparison of Budget to Actual Revenues and Expenditures – A statement thatlists the approved budget, the amount receipted and spent for each line item andthe remaining amount in each line item. Bank Reconciliation – A statement that reconciles the ending cash balance on thebank statement to the ending cash balance on the chapter books.D. Pecunious Grammateus ResponsibilitiesThe Pecunious Grammateus or Anti-Pecunious Grammateus shall make written monthlysummary financial reports to the chapter of all cash receipts and any returned checksduring the month. She shall maintain a record of payments made by each Member using aCash Receipts Journal. She is not involved with the disbursement of funds (i.e. she doesnot sign vouchers or checks).1. Member ReceiptsFunds should be given to the Pecunious Grammateus or Anti-Pecunious Grammateusduring a chapter meeting or a meeting designated to collect funds. Fund presentedoutside either meeting, shall be submitted to the chapter’s Post Office Box. ThePecunious Grammateus will have available, remittance envelopes to enclose anymonies remitted at a meeting or by mail. For those payments received by mail, theEpistoleus shall forward the funds received to the Pecunious Grammateus or AntiPecunious Grammateus.To ensure Member remittances are tracked properly, an entry to the Cash ReceiptsReport will be recorded for each Member, each time a Member remits money to thePecunious Grammateus or Anti-Pecunious Grammateus. The Pecunious Grammateusor Anti-Pecunious Grammateus shall provide a receipt for all income received,recording such information in a pre-numbered duplicate receipt book.Updated: 12/07/2020Adopted: 12/12/2020Page 4 of 13

ALPHA KAPPA ALPHA SORORITY, INC.Tau Iota Omega ChapterCHAPTER FINANCIAL GUIDELINES, POLICIES AND PROCEDURESThe Pecunious Grammateus or Anti-Pecunious Grammateus shall provide an originalreceipt copy, to the member from whom the money was received, at the next regularlyscheduled chapter meeting. If a member is not present at the next regularly schedulechapter meeting, the receipt will be mailed. For monies received from individuals thatare not members of Tau Iota Omega, receipts will be mailed. The duplicate receiptcopy shall remain in the receipt book for the chapter record and audit purposes.Separate receipt books shall be maintained for each bank account.2. Non-Chapter Member Receipts.The Pecunious Grammateus will maintain a record of receipts from each non- chaptermember in the same manner as member receipts are handled. Members, submittingchecks on behalf of a non-chapter member, should write her name on the memo lineof all checks to ensure receipts are attributed to the appropriate member. ThePecunious Grammateus will prepare a receipt for each non- member, which will bemailed.Additionally, the Pecunious Grammateus shall maintain a Transmittal of Funds Report,which summarizes the amount of monies given to the Tamiouchos. The revenue asshown in the duplicate receipt book should agree with the revenue in the CashReceipts Journal/Report, maintained by the Pecunious Grammateus, which shouldequal to the total of the Transmittal of Funds and the bank deposit.If a bank does not honor a check that was included in a deposit, the PecuniousGrammateus is responsible for collecting payment for checks returned for nonsufficient funds.The Anti-Pecunious Grammateus will support the Pecunious Grammateus in theperformance of Pecunious Grammateus duties and perform the PecuniousGrammateus duties in the absence of the Pecunious Grammateus.E. Tamiouchos ResponsibilitiesThe Tamiouchos or Anti-Tamiouchos shall make monthly written financial reports to thechapter, which shall include the Balance Sheet, Cash Disbursements Report, Comparisonof Budget to Actual Revenues and Expenditures and the Bank Reconciliation. MonthlyFinancial Statements may be distributed at the chapter meeting, by mail or electronicallywith pass-word protection. The bank reconciliation will be given to the chapter AuditCommittee and shall be reviewed by the Basileus and Audit Committee Chair.The Tamiouchos or Anti-Tamiouchos will ensure all chapter expenditures are authorized.Chapter disbursements shall be made by check, except for authorized electronic payments(See Section IV, Part G). The Tamiouchos shall prepare and sign chapter checks inaccordance with Section III, Part C, maintain the chapter checkbook and the CashDisbursements Journal. She shall keep a copy of the Transmittal of Funds received fromthe Pecunious Grammateus or Anti-Pecunious Grammateus and ensure the Transmittal ofFunds agrees to the bank deposit. She shall keep the check register current, showingdeposits, the amount of checks written against the checking account and the new balanceafter each cash transaction.Updated: 12/07/2020Adopted: 12/12/2020Page 5 of 13

ALPHA KAPPA ALPHA SORORITY, INC.Tau Iota Omega ChapterCHAPTER FINANCIAL GUIDELINES, POLICIES AND PROCEDURESAdditionally, the Tamiouchos shall maintain the Transfer Acknowledgement Form, whichsummarizes the source and amount of monies transferred into chapter bank accounts. Thisform shall be provided to the Pecunious Grammateus to facilitate the issuance of receiptsfor funds received. Transfers, as shown in the duplicate receipt book, should agree withthe revenue in the Cash Receipts Journal/Report, maintained by the PecuniousGrammateus, which should equal to the total of the Transfer Acknowledgement Form andthe amount credited to respective bank accounts.The Anti-Tamiouchos will support the Tamiouchos in the performance of Tamiouchos’duties and perform the Tamiouchos duties in the absence of the Tamiouchos.1. Chapter Member DisbursementsThe Tamiouchos or Anti-Tamiouchos shall make disbursement vouchers available tochapter members, which are to be used to request payments for expenditurereimbursements to chapter members or disbursements to non-members. Prior to acheck disbursement, the Committee Chairman or designee will complete a “PaymentVoucher” and attach the original receipt/invoice, evidencing the expenditure. Thevoucher must be signed and approved by the Committee Chair and Basileus before thecheck will be issued by the Tamiouchos or Anti-Tamiouchos. Should an originalreceipt/invoice be lost, every effort should be made to obtain a copy of thereceipt/invoice, or some other reasonable documentation. If a copy of thereceipt/invoice cannot be obtained, an “Affidavit of Lost Receipts (Exhibit B) shall becompleted and submitted with the payment voucher in lieu of a receipt/invoice.Advance payments, as deemed necessary to pay authorized expenditures, areallowable with Basileus approval. To substantiate the advance disbursement amount,receipts/invoices must be submitted by the next chapter meeting following thedisbursement or the chapter meeting immediately following the associated event. Allrequests for the current fiscal year must be submitted for reimbursement byDecember 31st or forfeit reimbursement under the current fiscal year budget.2. Non-Chapter Member DisbursementsThe Tamiouchos, Anti-Tamiouchos, Basileus, or Committee Chair will complete a“Payment Request” prior to any payment for an invoice. In order to ensure timelypayment of all creditors, the Payment Voucher may be completed by theTamiouchos or Basileus between chapter meetings. The Disbursement Request mustbe complete in all other aspects and must be included as part of the budgetedexpenditures authorized by the chapter. Payments not authorized by the chaptershall not be paid until properly authorized. For invoices received by mail, theEpistoleus will forward the invoice to the Tamiouchos as soon as possible, but nolater than the next immediate chapter meeting after receipt of the invoice.3. W-9 Requirements for Individuals/VendorsAs required by IRS regulations, and to comply with Alpha Kappa Alpha Sorority, Inc.reporting requirements, a completed and signed W-9 Form must accompany disbursementrequests when paying a new individual/business for services or merchandise.Updated: 12/07/2020Adopted: 12/12/2020Page 5 of 13

ALPHA KAPPA ALPHA SORORITY, INC.Tau Iota Omega ChapterCHAPTER FINANCIAL GUIDELINES, POLICIES AND PROCEDURESa. Payments to individuals or business will only be made when a completed W-9form has been received for the individual/business. These forms provide theSorority with verifiable tax identification numbers and addresses as required bythe IRS. Without the form, the chapter reserves the right to withhold payment(s) until a completed form has been received.b. Committee Chairs or designated members shall request a W-9 form fromvendor prior to submitting a disbursement request. If a check is disbursed priorto the receipt of the form, the chapter reserves the right to refuse subsequentpayments to individuals/businesses until a completed W-9 is received from theindividual/business.c. Once a W-9 for a specific individual/business is submitted, there is no need torequest a second one for services/merchandise at a later date; however, if anindividual/business has not been used within the last 2 years, a new W-9 formwill be required.NOTE: Due to IRS tax reporting requirements, chapter members must NOT personallypay individuals/businesses, which may circumvent the individual/business fromattaining the amount required for the issuance of a 1099 and then expectreimbursement from the chapter.F. Fundraising ProjectsRevenues and expenditures related to fundraising projects shall be reportedseparately. Revenues and expenditures shall be handled in accordance withchapter cash receipts and cash disbursements procedures.G. Online BankingOnline banking functions facilitate the opportunity to provide improved service to chaptermembers, review transaction histories, reconcile accounts at any time, and closelymonitoring cash balances.1. Online Banking PolicyTau Iota Omega Chapter will utilize online banking as another alternative to a) thereceipt of funds resulting from Member contributions, including but not limited tochapter dues and assessments; and b) the disbursement of funds for authorizedpayments to the Regional and Corporate offices. Access shall be limited to the Basileusand Tamiouchos. The Audit Committee, will validate electronic receipts anddisbursements as part of the committee’s monthly bank statement review.2. Online Banking SecurityTo protect against fraud, the following guidelines should be adhered to: Assigned rights shall be consistent with roles and duties;Passwords should not be shared, emailed or typed in while others are watching; andPasswords should be changed on a regular basis.Updated: 12/07/2020Adopted: 12/12/2020Page 5 of 13

ALPHA KAPPA ALPHA SORORITY, INC.Tau Iota Omega ChapterCHAPTER FINANCIAL GUIDELINES, POLICIES AND PROCEDURESH. PayPal ProceduresPaypal facilitates an alternative payment method for chapter members to convenientlyand expeditiously remit dues, assessments and other payments (e.g. chaptermerchandise).1. Paypal PolicyTau Iota Omega Chapter shall maintain one PayPal account, which shall be linked tothe chapter’s Operating and Programs bank accounts. Chapter members shall remitPaypal payments via the chapter website’s “Member Login” ONLY Chapter membersshall NOT use personal PayPal accounts to conduct chapter business and shall notpurposely use personal PayPal accounts as an option to remit payments for chapterfinancial obligations. Only the Tamiouchos and Basileus shall have access to thechapter’s PayPal account.2. PayPal Member ReceiptsOn at least a weekly basis, the Tamiouchos shall log into the chapter’s PayPal accountand transfer any monies received to the appropriate bank account as designated bythe funds received.Online documentation for each PayPal receipt transaction shall be printed by theTamiouchos and maintained with the respective PayPal Transfer Report as part of theTamiouchos records. A Transfer Acknowledgement Form, for funds received via PayPalshall be provided to the Pecunious Grammateus for the issuance of manual receipts.The Tamiouchos reserves the right to refund any payments not made in accordancewith the chapter’s Paypal policy. (NOTE: Chapter members will be responsible for anyPaypal fees associated with a refund.)The Pecunious Grammateus shall provide to the member, from whom the onlinepayment was received, a manual receipt. The transfer of PayPal receipts to chapterbank accounts is considered a deposit and shall ONLY be performed by theTamiouchos, as part of her duties and responsibilities.NOTE: The Pecunious Grammateus shall NOT be authorized to access the chapter’sPayPal account. A transfer of funds from PayPal to chapter accounts constitutes adeposit, which is a prohibited action for the Pecunious Grammateus.3. PayPal Non-Member/Vendor DisbursementsPayment for Paypal invoices received from non-members/vendors, require priorwritten authorization by the Basileus. The Tamiouchos shall log into the chapter’sPayPal account and transfer monies from the Operations or Programs bank account,as deemed appropriate for the incurred expense. If a Paypal balance of moniesReceived exists, the Tamiouchos shall transfer the balance of receipts to theappropriate bank account prior to transacting payment of a Paypal invoice.NOTE: A voucher shall be completed for all Paypal invoice payments.Updated: 12/07/2020Adopted: 12/12/2020Page 8 of 13

ALPHA KAPPA ALPHA SORORITY, INC.Tau Iota Omega ChapterCHAPTER FINANCIAL GUIDELINES, POLICIES AND PROCEDURESI.Policy Regarding “Stale” Dated Outstanding ChecksThe active life of disbursement checks drawn on the chapter accounts will have a one (1)year active life from the date of issuance, as noted on the check. Un-cashed checks, beyondthe one (1) year active life period, are no longer valid and shall be classified as a stale datedcheck. The Tamiouchos will make efforts to follow-up with the payee to determine thecircumstances surrounding the check. If the check is lost, a replacement check will bedisbursed upon the receipt of a completed “Lost Check Affidavit” (Exhibit C).J.Policy Regarding Returned Checks1. Personal ChecksAny personal checks returned for whatever reason, and additional expenses incurredby the Chapter as a result, shall be made good, by the Member involved, within ten(10) calendar days of the receipt of the returned check notice. Failure to pay anymonies owed for returned checks within thirty (30) days will result in an additional10% fine.2. Limited Use of Personal ChecksNo personal checks will be accepted from a Member for one year if more than two(2) checks have been returned from the Member’s account in a calendar year period.Thereafter, all financial obligations are to be paid by cash, certified check, or moneyorder for one (1) year from the date of the 2nd returned check.A returned check fee in the amount of 25.00 will be charged for all checks, depositedby Tau Iota Omega Chapter, that are returned NSF. Funds for the amount of theoriginal check plus the fee must be remitted to the Pecunious Grammateus in the formof cash, money order, cashier’s check or certified check.K. Refund PolicyThe chapter does not issue refunds for any payments remitted to the chapter,subsequently to the respective deposit; however, upon written request, considerationwill be granted when ALL of the following criteria have been met:-A chapter member has incurred a credit balance, after all chapter obligationshave been satisfied; ANDThe chapter member has submitted a request for transfer to another chapter orgeneral membership; ORThe chapter member has intentions to be inactive, subsequent to the currentyear or active membership.The written request for a refund must be received no later than February 1st of thecurrent fiscal year.NOTE: All refunds are paid by check only and may take 7 - 10 business days to process.Updated: 12/07/2020Adopted: 12/12/2020Page 9 of 13

ALPHA KAPPA ALPHA SORORITY, INC.Tau Iota Omega ChapterCHAPTER FINANCIAL GUIDELINES, POLICIES AND PROCEDURESL. Policy Regarding Chapter Member CreditsChapter members may incur credits, resulting from the following:-Overpayment of dues and assessments;Overpayment of estimated Paypal fees; andPayments received for cancelled sisterly relations events/activities or discontinuedchapter merchandise.Upon discovery, the Pecunious Grammateus or Anti-Pecunious Grammateus will beganthe process of giving “Notice”, to chapter members who have credit balances.The process of “Notice” will consist of the following:- Initial contact, via email or regular mail, no later than 10 business days after thediscovery, notifying the chapter member of the credit and that the credit will beapplied toward the member’s chapter assessment, if not satisfied. If the assessmenthas been satisfied, the credit will be applied to the member’s chapter dues for thenext fiscal year.- At the November chapter meeting of the current fiscal year, all chapter memberswith credits will be provided written notice of their credit balance. The notice willinclude verbiage that next year’s dues is the final opportunity to apply current-yearcredits without forfeiture.- Invoices for the next year’s chapter dues will reflect chapter members’ balances due,minus the member’s credit, if applicable. Any payments over the balance due will beforfeited.V. BUDGETA budget is an itemized listing of expected revenues and expenditures. The FinanceCommittee is responsible for developing the chapter budget for the fiscal year.A. Budget DevelopmentThe Finance Committee will solicit requests for items to be included in the next fiscalyear’s chapter budget during the August and September chapter meetings.Members are expected to submit any line items desired to be considered for the chapterbudget. The Tamiouchos will prepare a draft budget for presentation and discussion to theFinance Committee.The Finance committee will meet, discuss, and revise the draft budget during the monthof September. The Tamiouchos will present the suggested budget to the chapter fordiscussion during the October chapter meeting.The Tamiouchos will present the chapter budget for final chapter approval no later thanthe November chapter meeting.The Tamiouchos must submit the approved chapter budget annually to the corporateoffice by February 1st of the subsequent fiscal yearUpdated: 12/07/2020Adopted: 12/12/2020Page 10 of 13

ALPHA KAPPA ALPHA SORORITY, INC.Tau Iota Omega ChapterCHAPTER FINANCIAL GUIDELINES, POLICIES AND PROCEDURESB. Budget ControlAll chapter expenditures must be tied to a budgeted line item. If a requested expenditureexceeds the balance indicated for a budgeted line item, the amount may be allocated tothat line item from another line item. An allocation to or from a line item must beapproved by chapter vote.C. Chart of AccountsThe Tamiouchos will prepare and maintain a Chart of Accounts (Exhibit A) to ensurechapter receipts and disbursement are properly categorized and recorded. The Chart ofAccounts will be reviewed annually and updated as chapter operations deem appropriate.VI. BONDING, INTERNAL CONTROLS AND AUDITINGA. BondingAt a minimum, the Basileus, Anti-Basileus, Grammateus, Pecunious Grammateus, AntiPecunious Grammateus, Tamiouchos, Anti-Tamiouchos and any other officer with theauthority to sign chapter checks and/or collect mailed-in payments, or any otherpayments, must be bonded. Bonding coverage shall be reviewed annually by the Basileusand the Tamiouchos. The Basileus will ensure that all actions necessary to bond anyMembers required under this policy is taken. The bond coverage will be

Dec 07, 2020 · Alpha Kappa Alpha Sorority Inc. Fiscal Fitness Guide for Chapter FinancialOperations (Guide). Outlined, herein, are specific detailed procedures. Under no circumstance, will the chapter . – A journa