Treasurer

The treasurer is the financial advisor to the chapter or state association, as well as custodian of the funds.

The treasurer will receive all dues rebates from NALS and maintain a file of rebate rosters for membership. It might be helpful to periodically request a membership roster from the NALS Resource Center to compare against your rebate reports to ensure that all your members have paid their local or state dues.

The treasurer is responsible for handling and disbursing all funds, making deposits, and signing checks in accordance with the bank signature resolution. Some associations have double signature checks with the president signing as well as the treasurer, or you may provide by resolution or in your procedures manual that checks over a certain amount (such as $500 or $1,000) require the second signature. However, if the treasurer is bonded (the best practice), this is not the recommended procedure as single signature checks (treasurer) are quicker and easier to process. Many banks will provide a service-charge-free checking account for the association if asked for this privilege by a nonprofit organization.

A ledger should be kept in conjunction with the checkbook. It serves as a double-check for all receipts and disbursements. Suggested headings could include: “Income” – Dues and Fees, Chapter or State Meetings, Finance, Seminars, and Miscellaneous; “Expenses” - Chapter Meetings, State Meetings, Gifts and Contributions, Postage/Photocopy/Telephone, Publication, Publicity, Office Supplies, and Miscellaneous. Establish as many headings as are necessary so there will be very few miscellaneous items. This makes it easier to see exactly where the association money is spent.

The treasurer should prepare a monthly financial statement after balancing the ledger and checkbook and present it in writing to the board. A copy should be provided to the secretary for inclusion in the official minutes. Financial statements can be included in the chapter or state publication.

The treasurer pays out funds as authorized, keeping copies of all bills and statements paid, showing notations of date paid and check number. Appropriations from the treasury should be made only upon action from the board and approved by the membership (if that is the chapter or state practice). Budget items generally may be expended without additional approval from the board, although it is recommended that these receive the president’s approval.

Before the end of each fiscal year, an audit committee is selected to audit the books for the closing fiscal year. It is much easier for this committee to perform its tasks if the treasurer has kept accurate records of every transaction during the year.

As chair (usually) of the budget or finance committee, the treasurer presents to the board (or membership depending on your association practice) a proposed budget which has been developed with the assistance of the president, and perhaps, the executive committee, using that year’s annual report and known committee expenses projected for the new year.

Each incoming president and treasurer should see that association funds are handled in a businesslike manner. They should insist on an audit of the books before taking over the responsibilities of their offices. The association should require the treasurer and the president to be bonded. The bond premium is an expense of the association.

Chapter and state associations may maintain additional funds, such as a scholarship fund. Funds received from money-raising projects for the fund should be placed in a special account reserved just for that fund. Funds disbursed from the special account should be approved by the board or the membership (depending on your association practice).Each chapter or state association must have an adequate dues structure to ensure continued operation. Consideration must be given to dues at other association levels as well as chapter or state association overhead. If dues and fees are too low, the association cannot perform services for the members, and the membership ends up working all year on moneymaking projects and neglects educational programs. Many associations use educational programs for their financial projects. Seminars, mini-seminars, sponsoring the NALS Legal Training Course, are just a few examples of successful programs used by associations to not only increase the treasury but also provide needed service to the legal profession.

The NALS Resource Center mails the first renewal notice to individual members 90 days in advance of their anniversary date. After the first notice, reminder notices are mailed at various intervals to members direct from the Resource Center. Life members are billed annually for state and local dues at the same intervals as individual members.

The NALS Resource Center bills life members yearly on their anniversary date for state and local dues. Members who have let their membership lapse more than one month will need to include a $5 reinstatement fee to NALS (and perhaps to the state as well). Their paid-through date will be changed to ensure they receive a full year of benefits.

Members who have let their membership lapse one year or more will need to join as a new member. It is possible that they may be issued the same member number; please make note of their former membership on applications.

It is very important that the NALS Resource Center has the current address and telephone number of the chapter or state association treasurer. For chapters, you also must make sure the state association treasurer has the current address and telephone number of the chapter treasurer. If you (the treasurer) move, send the new information immediately. Also, any time the chapter or state treasurer changes, whether at the NALS roster reporting time or any other time during the year, the name, address and telephone number of the new treasurer must be sent to the NALS Resource Center immediately (and also to the state association if reporting a chapter treasurer change). The retiring treasurer should close the chapter’s financial records and have them ready, with bank books and signature cards, to turn over to the successor.

The NALS Resource Center is required to file a form annually with the IRS which includes the state/chapter name and Federal Employer Identification Number (EIN), the state/chapter president’s name and address and the state/chapter financial status (if annual association gross reciepts are over $25,000). This information must be filled out on the state/chapter roster which is submitted to the NALS Resource Center on an annual basis.