Healthcare
Financial Management Association
Policies
and Procedures
Table of Contents
Policy
Number
Finance and
Accounting
Financial Records (Revised
9-2006) A-1
Depository Institutions
(reviewed 6/2006) A-2
Investment Policy Guidelines A-3
(to be revised based on
National’s changes 6-2007)
Operating Budget (reviewed
6/2006) A-4
Financial Audit (reviewed
9-2006) A-5
Insurance Coverage A-6
Record Retention Guidelines (reviewed 8-2006) A-7
Reimbursement
and Payment
Payment Policies (revised 5-2008) B-1
Officer Travel (reviewed 6/2006) B-2
Awards Reimbursement
(reviewed 6/2006) B-3
Directory Sales B-4
Guidelines for Mailing List
and/or Database Use B-5
(reviewed 9-2006)
Program
Program Policies (revised 8-2006) C-1
Policy A-1
Financial Records
The Chapter Treasurer shall
maintain the following financial records:
· Checkbook, savings/investment records
· Cash receipts and disbursements records and documentation
· Monthly bank statements and related reconciliations
· Invoices, check requests and other appropriate documentation
supporting all expenditures
· Journal entries and supporting documentation
· Monthly financial statements
· Form 1099 copies and supporting documentation
· Form 990 filing report, certifications and supporting documentation
· Annual financial report
Specific policies with
respect to maintaining the Chapter’s financial records are set forth below:
· Accounting Transactions
All accounting transactions shall be recorded using the Chapter’s
chart of accounts and in accordance with generally accepted accounting
practices. The Treasurer shall review
and, if appropriate, revise the chart of accounts on an annual basis.
· Program Activity
Within thirty (30) days after the completion of a program or
meeting, the Program Chair of each program shall submit the following to the
Treasurer after receiving approval from the Vice President--Programs: a spreadsheet detailing attendees, the amount
due from each attendee, the payment received for each attendee, the method of
payments and the membership (or other) status of the attendee.
The revenue recorded for each program will tie back to such
documentation.
The Treasurer will be responsible for issuing approved refunds and
collecting amounts outstanding.
· Cash Receipts
Cash receipts be collected by or submitted to the Treasurer and
the Treasurer shall deposit such cash receipts on a timely basis. Cash receipts are expected from sources such
as educational programs, newsletter advertising and the sponsorship program.
· Cash Disbursements
The Treasurer and other assigned officers or designees will be the
only authorized signers for the chapter’s checking account. The authorization will occur annually via
Board motion and will be recorded in the appropriate Board meeting minutes.
The check signer will only issue checks if:
1) supporting documentation
accompanies the payment request.
Acceptable supporting documentation includes: invoices, expense reimbursement requests
along with receipts for expenses > $10, speaking contracts, etc.
2) expense reimbursement
requests greater than $1,000 have been approved by the President. If the request for reimbursement is from the
President and is over $1,000, another officer shall approve the request. Such approval can be via email, but the email
should be attached to the reimbursement request.
3) the budget expense line is indicated and the
person requesting the payment be made is responsible for the budget expense
line. If the latter is not the case,
approval from the person responsible for the budget expense line must be
obtained by the requestor.
· Bank Statements
The Treasurer shall reconcile all bank and investment
accounts on a monthly basis.
At a minimum, bank statements and the resultant
reconciliations shall be reviewed by the President quarterly.
· Financial Statements
The Treasurer shall prepare financial statements for and present
financial statements at each Chapter Board meeting. The Board of Directors shall be responsible
for reviewing and approving the financial statements.
· The Financial Review
Committee
The Financial Review Committee shall be responsible
for completing the annual review of the books and financial records. The Treasurer shall be responsible for the
coordination of the annual review. The
chairperson of the Financial Review Committee or the Treasurer shall be
responsible for the presentation of the results of the annual review at the
appropriate Board meeting. The Treasurer
shall be responsible for implementing any recommendations made by the Financial
Review Committee in their letter to management, if approved by the Board of
Directors.
· Tax Forms
The Treasurer shall be responsible for:
a) providing requested Form 990
information to National by the National-imposed deadline.
b) issuing Form 1099’s for each
calendar year-end.
Revised 9-2006
Policy A-2
Depository Institutions
The Chapter Treasurer shall
maintain all checking and investment accounts in a financial institution
covered by FDIC or FSLIC insurance with authorized signatures for the
withdrawal of those funds or in other investments approved by the Board of
Directors. Specific policies regarding
depository institutions are set forth below:
· All significant investment transactions are to be reported by the
Treasurer to the Board at each meeting.
· Investments maturing in excess of six months require prior Board
approval by a majority of its members.
· The Treasurer is responsible for maintaining custody of insurance
bonding in the appropriate amount to cover funds handled. Bonding coverage must be maintained at all
times. The Treasurer should advise the
Board of bonding coverage annually.
Reviewed 6-2006
Policy A-3
Investment Policy Guidelines
The objective of the
Wisconsin Chapter regarding investment of cash is to:
· Assure adequate safety of principal
· Attain an optimal return on invested funds without sacrificing the
safety of the principal
· Maintain a liquid position
The Wisconsin Chapter will
hold title to all instruments used to invest Chapter cash. Set forth below is a summary of approved
investment instruments:
· Certificate of Deposit -
The amount invested in any one banking or savings institution shall not exceed
the $100,000 federal insurance limit.
Interest on CD’s shall not accrue for longer than one year.
· US Government Securities
- These investments have no limit and shall include securities issued by
federal agencies backed by the full faith and credit of the
· Repurchase Agreements -
These investments shall be limited to banking or savings institutions with an
acceptable credit rating, for a period not to exceed 30 days, and an amount not
to exceed $25,000.
· Corporate Bonds or Notes
(Commercial Paper) - These investments shall be limited to ratings of A-1
by Standard and Poor’s and P-1 by Moody’s for commercial paper and to rating AA
or better for investment grade corporate bonds.
· Cash Management Accounts
- These investments shall be limited to an amount not to exceed $25,000 and
only with a firm approved by the Board.
Other policies with respect
to investment of Chapter funds are summarized below:
· Maturities - An amount
equal to three months operating expenses shall be invested in short term
investments with maturities of one year or less. The remaining funds may be invested in longer
term instruments, with an average maturity of no longer than five years.
· Management Responsibilities
- Management responsibility for investment of Chapter funds rests with the
Treasurer. Any changes in the investment
strategy must first be approved by the Board of Directors.
Policy A-3
· Review of Policy - The
investment policy must be reviewed and approved by the Board of Directors
annually. The Treasurer is responsible
for bringing the policy to the Board for review and approval.
· Periodic Reporting - A
report of the performance of investments shall be made to the Board of
Directors on a periodic basis, at least annually.
Policy A-4
Operating Budget
The Treasurer is responsible
for preparing for submission to the Board of Directors, an annual financial
plan (operating budget) that supports the long-range strategic plan. The budget shall include detailed schedules
outlining specific sources of revenue and enumerating specific budgeted
expenditures within each expense category.
The operating budget must be approved by the Board of Directors and
submitted to National Office prior to June 1 of each fiscal year.
Reviewed 6-2006
Policy A-5
Financial Review
The Chapter’s financial
records will be reviewed by a certified public accounting firm within 90 days
of the Chapter’s fiscal year end.
Specific procedures with respect to this process are set forth below:
· The President appoints the chairperson of the Financial Review
Committee at the beginning of each Chapter year. The President will make every effort to
select a chairperson from a different accounting firm, rotating firms at a
minimum every three years.
· The Treasurer will work with the chairperson of the Financial
Review Committee to ensure that an annual review is conducted in an efficient
and timely manner. The review will
consist of inspecting the books and records of the organization, inquiries of
the Chapter Treasurer (or others as necessary) and such other procedures as
deemed necessary by the certified public accounting firm (or Board or
Directors) to ensure that the financial transactions for the fiscal year were
appropriate and recorded properly.
· The chairperson of the Financial Review Committee (or designee)
will prepare a written report (the “Annual Report”) which will consist of
agreed upon procedures. The Annual
Report will be discussed with the Chapter’s Treasurer prior to the presentation
to the Board of Directors.
· The Annual Report will be presented to the Board of Directors by
the chairperson of the Financial Review Committee or the Treasurer. The Board
of Directors are required to approve the Annual Report.
· The Annual Report will be made available to Chapter members upon
request.
· The Treasurer is responsible for implementing any recommendations
made by the chairperson of the Financial Review Committee, if approved by the
Board of Directors.
Reviewed 9-2006
Policy A-6
Insurance Coverage
HFMA National provides
general liability and professional liability insurance coverage for all
Chapters (including host liquor liability coverage). The general liability policy provides $1
million of bodily injury, personal injury and property damage coverage per
occurrence and an additional $1 million of medical coverage (limited to $1,000
per person) for each accident. The
professional liability policy provides $1 million of coverage for acts done
directly or indirectly (by any member or non-member) in any phase of Chapter
activity for which the officer or director is held liable by virtue of his/her
leadership role. A more detailed
description of these policies is found in the
Chapter Officer Manual.
Through the local Wisconsin
Chapter, Officers, Directors, Chairpersons, and Committee Members of the
Chapter are covered for certain “losses” arising from accidents while traveling
on Chapter business. For purposes of
coverage, “loss” is defined as loss of life, sight, limb(s) or hearing. Coverage represents a maximum of $25,000 for
a loss and an aggregate policy limit of $100,000. In addition, the Chapter provides a $25,000
fidelity bond covering losses caused by employee dishonesty. The definition of employee includes any
uncompensated individual performing services on behalf of the Chapter. The occurrence is all loss caused by a single
employee, or more than one employee acting in collusion, whether the result of
a single act or a series of acts.
The President-Elect of the
Chapter has the responsibility to ensure that insurance coverage is maintained.
Policy A-7
Record Retention Guidelines
|
Retention
Period |
Document
and Storage |
Responsibility |
|
0 – 3 years |
Item: All
chapter correspondence, program brochures, technical papers, etc. Location: Stored at
the |
Board of Directors and Committee Chairs |
|
0 – 7 years |
Item: All
official financial records of the chapter, including financial statements,
IRS submissions, cancelled checks, etc. Location: Current
year financial records will remain with the chapter treasurer. Records from previous fiscal years will be
stored at the Wisconsin Health and Hospital Association. |
Board Treasurer and Financial Review Committee |
|
0 – 7 years |
Item: Continuing
education records. Location: Stored
at the |
Certification Committee |
|
Permanently |
Item: Chapter
charter documents, bylaws, chapter Board of Directors minutes, auditor’s
reports, highlight reports, annual reports, general ledger and other
historical documents. Location: Stored
at the |
Board Secretary, Advisory and Financial Review
Committee |
|
Retention
Period |
Electronic
Communications |
Responsibility |
|
None |
Item: E-mail announcements. Location: Discard after use. |
Electronic Communications Committee |
|
0 – 1 years |
Item: Board minutes, state and local association
information, state association announcements, state association operations
plan, etc. Location: Currently stored on disc space on the Web site. |
Board Secretary and Electronic Communications
Committee |
Reviewed 8-2006
Policy
B-1
Expense
Reimbursement Policy
This
policy sets forth the Chapter’s expense reimbursement policy for the Officers,
Board of Directors and committee chairpersons / members.
All
requests for expense reimbursement are to be submitted to the Treasurer on the
Expense Voucher Report. Receipts for
expenses must accompany the expense report for any expense in excess of $10.
Note that consistent with Policy A-1 any expense reimbursement requests in
excess of $1,000 must be approved by the Chapter President and, if the request
is from the President and is over $1,000, another Officer shall approve the
request..
The
follow sections provide additional guidance for specific types of expense
reimbursement requests.
- Educational Program Expenses.
The policy governing educational program expenses is
outlined in the Chapter’s Program Policy (C-1) and Travel Policy (B-2).
- Board Meeting Travel
Expenses / Mileage
Members attending a Board meeting will be reimbursed his/her mileage expense at the IRS mileage rate. Members attending a Board meeting will also be reimbursed one night’s hotel stay, not to exceed $150 in value, if the member’s one-way trip mileage equals or exceeds 225 miles.
The above reimbursement does not apply if the Board meeting is held in conjunction with a Chapter program/educational session, the member attended the program/educational session and attendance at the Board meeting did not create an incremental cost to the member.
- General Operational
Expenses
The Chapter shall reimburse officers, directors and
committee chairpersons / members for the reasonable costs incurred in
conducting Chapter business. These costs
may include, but not be limited to:
•supplies
•postage
•copying
and other publication costs
•mileage
•teleconferencing
•meeting
expenses, including lunch and/or refreshments
•other
expenses, as appropriate
Revised 5-2008
Policy B-2
Travel
The Chapter will pay for the following reasonable
expenses and registration fees for Chapter Officers:
· Annual National Institute and President’s
Meeting - Reimbursement shall include transportation, lodging, meals, and
enrollment fee for the Past President, President and President-Elect.
· Fall Regional President’s Meeting -
Reimbursement shall include transportation, lodging and meals for the President
and President-Elect.
· Leadership Training Conference -
Reimbursement shall include transportation, lodging, and meals for the incoming
President, President-Elect, Secretary, Vice President Programs, Treasurer and
other Committee Chairpersons or Committee Members as approved by the incoming
President.
- Region VII
Conference – Reimbursement shall include transportation, lodging, meals,
and registration fee (if not waived) for the Officer who represents the chapter
and performs the majority of volunteer time for this event.
The Board can approve other travel before travel is
taken. The Chapter Officers/committee
members are responsible for submitting a written request for reimbursement to
the Treasurer. The request shall include
the reason for the expense and supporting documents when appropriate. The Chapter will not pay for any personal
expenses incurred by a Chapter Officer/committee member.
Reviewed 6-2006
Policy B-3
Awards Reimbursement
The Chapter will pay for the
following awards in accordance with the wishes of the Board of Directors:
Founders Awards
Past President’s Plaque
Certification Pins
President’s Pin
President’s Award
Outgoing Presidents Gift
President’s gifts to
officers, directors and committee chairs
In addition, the Board of
Directors may approve reimbursement for other awards they deem appropriate.
Reviewed 6-2006
Policy B-4
Directory Sales
Each year the Chapter
publishes the Wisconsin Chapter Member Directory. One copy is provided to each member free of
charge. Additional copies are provided
to Sponsors pursuant to the provisions of the Chapter’s Sponsorship Program. Members may buy additional copies for
$10. Non-members may buy a copy of the
directory for $50.
Policy
B-5
Chapter Guidelines for Mailing List and/or
Database Use
The HFMA Board of Directors
may approve the establishment of chapters, by charter, to serve specific
geographic areas. The rights and obligations of HFMA chapters are specified in
the
HFMA Chapter Charter. In
addition, the HFMA Board of Directors has adopted the following guidelines to
further define the document as it relates to chapter use of chapter mailing
lists or member databases.
Chapters may use the chapter
mailing list or member database solely to conduct the business of the chapter
and HFMA National. Examples of chapter business usage include:
* Distribution of member communications as defined by
the Davis Chapter Management System (newsletters, bulletins, etc.)
* Distribution of ballots for
elections of chapter officers or bylaws changes
* Notification of chapter
meetings to carry out the business of the chapter
* Notification of chapter
educational events
* In the instance of co-sponsored educational events
with non-HFMA organizations, chapters may provide a limited or one-time use to
the co-sponsoring organization. Additionally, the promotional material must
include the chapter name (i.e. the Wisconsin Chapter of HFMA) and if a logo is
used, it must be the chapter logo (i.e. not to be mistaken for the HFMA
National only logo).
Sponsorship
Chapters may not offer the
chapter mailing list or database of members as part of any chapter sponsorship
package. Rather, chapters may provide a list of pre and post registered program
attendees as part of a chapter sponsorship package. This information MUST
exclude email addresses and contact information of HFMA individuals who have
specifically requested “no outside usage” on their HFMA member profile.
E-mail Communication
When communicating with
chapter members via mass e-mail distribution, chapters are charged with
protecting the privacy of chapter member e-mail addresses by ensuring that the
e-mail addresses are not displayed in a manner that makes them vulnerable to
being copied, pasted and misused by the recipient. Placing e-mail addresses in
the bcc (blind carbon copy) section of the email form fosters email address
privacy. Chapters are charged to be cognizant and mindful of overuse concerning
e-mail communication.
Reviewed 9-2006
Policy C-1
Program Policies
Registration Fees:
The Chapter’s educational
programs are one of the primary sources of revenue for the Chapter. Set forth below are the specific policies
with respect to educational programs:
· Registration Fees - The
Chapter shall charge program registrants a registration fee that is appropriate
for the prudent management of the Chapter.
Registration fees should be set at levels necessary to serve members and
attain the annual Chapter budget approved by the Board of Directors.
· Waiver or Reduction of
Registration Fee - The registration fee for a Chapter education program
(excludes social events) may be adjusted in the following instances:
- The registration fee all is waived for the following positions:
·
Chapter Officers (excludes Board of Directors unless functioning in a
different capacity).
·
Program Chair that is coordinating the program.
·
Chair of the Social Committee that is working with the staff of the
meeting location.
- The registration fee for all speakers will be waived.
- The registration fee for past Chapter Presidents will be waived at
the Annual Chapter meeting.
- The registration fee for unemployed members will be waived for all
programs during their unemployment.
- All new members will be
given two certificates for a 50% reduction in the registration fee for two
chapter programs (excludes co-sponsored programs and social events) to
encourage participation in Chapter activities.
- Sponsor certificates which entitle sponsors to receive free program
registration will be recognized.
·