General Questions/Comments
To reach the Accounting department, email accounting@iaap-hq.org.
What are the duties of a chapter/division treasurer?
For anyone considering running for the office of treasurer or existing treasurers who need some guidance with tasks, the Finance section of the IAAP Leader’s Guide lists the duties of the chapter and division treasurer.
As a newly elected treasurer, what do I need to update when I take office?
To ease each new treasurer through this transition, we have created a New Treasurer’s Checklist.
Also, the Finance section of the IAAP Leader’s Guide is an excellent resource for treasurers. All treasurers are encouraged to use it as a reference and guide.
As treasurer, what records do I need to keep and what needs to be done for proper bookkeeping?
There are five major areas of bookkeeping for which treasurers should be responsible: Receipts; Disbursements; Posting month-end; Bank Accounts; and General Ledger Accounts. For detailed descriptions of these areas please review the Finance section of the IAAP Leader’s Guide.
As treasurer, why and how do I prepare the annual budget?
A budget is necessary each fiscal year for the efficient operation of any unit. Its preparation will be governed by the local bylaws and standing rules. A finance (budget) committee (treasurer usually a member) or the treasurer will prepare the budget for discussion and approval by the board of directors and/or the membership. For detailed information regarding budgeting please see the Finance section of the IAAP Leader’s Guide. We have also created a sample budget worksheet for you to use as a reference.
When should our chapter/division form an audit committee and who decides when the audit will be?
The Board of Directors should set the date of the audit; therefore the audit committee will need to be assembled before the audit date.
Who should be on the audit committee?
The audit committee should consist of either an "outside" source, such as public accountants, or a qualified person or persons within the chapter/division. An audit should not be conducted by any person who has had anything whatsoever to do with the unit's finances during the period under review.
What are the responsibilities of the audit committee?
It is the audit committee's job to test the accuracy and completeness of information which is presented in the chapter/division's financial statements. For a detailed description of audit procedures please see Audit Procedures in the Finance section of the IAAP Leader’s Guide.
Who can the audit committee contact if it has questions when reviewing financial statments?
The chapter/division treasurer is the appropriate person to contact should the audit committee have questions or problems during an audit. If a problem arises that the treasurer is unable to answer, your division treasurer is also an excellent source.
What is a form 990?
Form 990—Return of Organization Exempt From Income Tax, is an IRS document that must be filled out and filed by chapters and divisions by November 15. Please review the "Taxes" portion in the Finance section of the IAAP Leader’s Guide for more information on this form.
What is a form 990-N or e-postcard?
Form 990N or the e-postcard is an electronic informational return that should be submitted online via the IRS website. This is required for all chapters and divisions with gross receipts less than $50,000 in the fiscal year and must be filed by November 15. Please review the "Taxes" portion in the Finance section of the IAAP Leader’s Guide for more information on this form.
Is our chapter/division exempt from paying sales tax?
IAAP is a 501(c) (6) not-for-profit organization. A 501(c) (6) organization is exempt from income tax but not exempt from sales tax.
What is a 501(c) (6) not-for-profit organization?
IAAP is exempt from taxation under Section 501(c) (6) of the 1954 Internal Revenue Code which reads:
"Business leagues, chambers of commerce, real estate board, or board of trade, or professional football leagues (whether or not administering a pension fund for football players) not organized for profit and no part of the net earnings of which inures to the benefit of any private shareholder or individual."
You will also find more detailed information in the Finance section of the IAAP Leader’s Guide as well as the document "Spending Your Chapter’s or Division’s Money."
Where/how do I get a tax determination letter?
If you are requested to supply a tax determination letter, please contact the accounting department at headquarters and they can assist you. acctg@iaap-hq.org
What is a Form 1099-MISC and who do we send them to?
Form 1099-MISC is an IRS document that must be sent to any speaker or individual that the chapter/division paid more than $600 to in fees for services and/or materials. You must purchase the forms from an office supply store or the IRS website (forms cannot be downloaded from the website).
What is a form W-9 and when do I need this form?
A W-9 is an IRS document that provides your chapter or division’s EIN (employer identification number) to whomever requests it.
Why would someone request a W-9?
A person who is required to file an information return with the IRS, must obtain your correct taxpayer identification number to report. Therefore, businesses that will be sending your chapter or division money for an event usually require a W-9 or tax identification number before sending payment.
What is Position Schedule Bonding and which officers need to be bonded?
The U.S. Department of Labor identifies Bonding as:
". . an insurance agreement guaranteeing repayment for financial loss caused to the covered organization by the act or failure to act of a third person. Bonding is used to protect the financial operations of companies . . . . bonding is intended to protect . . . from losses caused by acts of fraud or dishonesty by officers, employees, or other representatives."
International Standing Rule 5 requires the office of treasurer to be bonded. It is recommended that every elected officer who handles funds or other property (money markets, trusts, etc.) be bonded. This should occur before any new officer handles the division or chapter funds. They should be bonded for an amount based upon the funds handled by their predecessors during the last fiscal year. It is not necessary to reapply for the bond when a change in officer(s) occurs. The position is covered not the individual.
Every three years a Position Schedule Bond Application is sent out to all Divisions and Chapters from Headquarters to either renew or apply for bonding. The bonding information was mailed out from Headquarters on January 5, 2006. If you find that the appropriate officers in your chapter/division are not currently bonded fill out the application and mail it to headquarters. For more information see the Finance section of the IAAP Leader’s Guide.
How does the Position Schedule Bond apply to new chapters or late application submissions?
Tallman Insurance Agency will prorate any application received after October 31, 2006. This means coverage will not begin until the application is received for chapters/divisions that mail applications later than the October deadline. All existing chapters/divisions are strongly encouraged to not allow a lapse in coverage in case of incident. New chapters will be covered beginning on their charter date assuming application is mailed to headquarters in a reasonable amount of time from the charter date.
What is covered under 3rd Party Liability Insurance?
There are many coverages and exclusions with the blanket 3rd party liability insurance. Therefore, we created a page specifically designed to answer questions and give details about this program. You will also find a description of 3rd Party Liability Insurance in the Finance section of the IAAP Leader’s Guide.
How do we request 3rd Party Liability Insurance for a specific event and how much does it cost?
There is a $100* fee per function and would normally be used for a division annual meeting or event. To request coverage for a specific event, please provide the accounting department at headquarters (acctg@iaap-hq.org) with the following information:
Function Name and Location
Function Date
Number of attendees
Events to be held at function
Additional Insured (if any)
Contact person’s name, address and telephone number
*Fee subject to change
What is an EIN and how do I find out if my chapter/division has an EIN number?
EIN stands for Employer Identification Number. This number is assigned by the IRS. All chapters and divisions should have an EIN. This information should be kept in a file for access by the officers. You can contact the accounting department at headquarters if you are unable to find your chapter’s EIN. If you find that your chapter does not yet have an EIN, you must submit the form SS-4 to apply for an EIN.
Can our chapter/division get a debit card that is attached to our chapter/division funds?
Our treasuries, Chapter, Division or International, operate as a business, not a personal account. As such, businesses have in place checks and balances to protect our members from any actions which may discredit the integrity of their office and person, such as embezzlement charges, etc. Debit cards have no place in the business environment. Not even debit cards with access to completing credit card purchases. Unless the individuals involved are willing to be personally liable for their actions and the funds of the chapter or division, which they will be, there is nothing in place to guarantee that the funds used via the debit card withdrawal would support the chapter or division’s designated use or purpose for such monies. It is important that the Board of Directors realize that the actions of the individuals who have and use debit cards against the chapter or division funds will have an impact on them also if there are charges brought for inappropriate use of said funds.