5-1: Annual Budget
Each year, the Secretary-Treasurer shall prepare an annual budget for review and discussion at the fall District Board meeting. This budget will be revised and approved by the District Board. The District Board shall give the membership ample time to review proposed budgets, be notified of budget issues and provide members ample time to suggest changes prior to District Board approval. Each line under the budget should be described in detail in the spreadsheet document to provide future officers enough information to understand the purpose, conditions or limitations of the budget item.
5-2: Treasurer’s Report
The District Administrator and Secretary-Treasurer shall prepare and present an up-to-date Treasurer’s Report at all District Board meetings. The report shall show beginning and ending bank account balances, income, and expenses for the current fiscal budget year. This report should be posted on the Website.
5-3: Annual Dues
The District Board when developing and balancing the next fiscal year’s annual budget determines annual dues. In order to give ITE ample time to prepare dues notices in the fall, dues should be determined at the summer District Board meeting with notification forwarded to ITE immediately following the meeting. The District Board should also maintain a long-range budget to determine if annual dues should be adjusted. At the summer District Board meeting the District Board shall determine the annual District dues for the next fiscal year. Once the dues are determined, the Secretary-Treasurer is responsible for notifying the amount to ITE Headquarters prior to the first invoice mailing for International dues. See also dues collection under Section 6-4.
5-4: Annual Audit
Prior to the business meeting held at the winter District meeting, the President should appoint an Audit Committee (see Section 4-3). The President should call upon the Audit Committee to give a short report at the business meeting on the condition of the book keeping and findings.
5-5: Carry-Over Balance
The District shall achieve and maintain a minimum carry-over balance equal to one half of the previous year's normal operating expenses. Prudent financial planning dictates that a reasonable carry-over balance be maintained. Such a balance serves as a contingency in the event revenues are less than the amount budgeted or expenses exceed the amount budgeted. Also, the existence of this contingency enables occasional special projects (such as underwriting the cost of a training course) to be funded without extreme impact on any one-year's budget.
5-6: Bank Accounts Management
The District shall establish a bank account in the name of the organization and maintain a list of signatories. Members shall not use personal bank accounts or credit cards to manage District finances or meeting expenses. The District currently uses the following accounts to manage funds:
- District Administration Checking Account – to make payments for District expenses (other than meeting expenses)
- District Savings Account – currently not used
- District Meetings Account – authorized signatories of the Local Arrangements Committee use this checking account to make payments for winter and summer District meeting expenses
The District Administrator shall be the primary signatory and account manager for all checking accounts. Prior to the beginning of each new term, the District Administrator will update the list of authorized signatories for each account. For the District Checking and Savings Account, authorization to sign for the District should be for Secretary-Treasurer, Vice-President and President. For the District meeting account, authorization to sign for the District should be for Secretary-Treasurer, President and the Local Arrangements Chairs. Neither the President nor the Vice-President will normally exercise fiscal authority, but both should have a signature card on file in event of an emergency. For purposes of establishing these signatories with banks, the Secretary-Treasurer shall make sure to include the names of elected officers and name of the appointed District Administrator in the summer business meeting minutes.
5-7: Meeting Revenues
Each year the District Board shall establish the net meeting revenue goals that are required to balance the annual budget. The profit goals are usually determined at District Board Meetings and conveyed to the Local Arrangements Committee Chairs. The LACs then adjust their meeting expenses and registration fees to meet these profit/loss goals.
5-8: Insurance Policy
The District shall maintain an insurance policy to cover liability for the elected officers or representatives conducting business for District 9.
5-9: Tax Status
U.S. Internal Revenue Service regulations relating to voluntary, not-for-profit organizations are numerous and complicated. The District Board should be aware of the following general points:
- Sales Tax – Although TexITE is a non-profit organization; it is not exempt from state or local sales taxes. Future District Boards may wish to pursue tax-exempt status. A "permanent" mailing address is one of the requirements.
- Non-Profit Organization – Existence as a non-profit organization is not conveyed by law, i.e. if your organization operates as a non-profit (and follows the rules) it is non-profit. What the law does provide is formal recognition of the non-profit status.
- IRS requirements – TexITE has filed for formal recognition and uses Federal IRS Identification Number 52-1341793. If the gross receipts reach $5,000 per year, TexITE must file an application for formal recognition of tax exemption. If gross receipts exceed $25,000 per year, the TexITE must file annual tax returns.
- The IRS considers the District (TexITE) as a separate and distinct organization from International ITE. The District is not considered part of the tax exemption status held by international ITE.
5-10: Contributions to District 9
It is emphasized that any sponsorship or financial contribution shall be voluntary on the part of an individual, organization or private company. Any member representing the TexITE organization shall not request such sponsorship or contribution. TexITE will consider support from vendors and consultants through group organizations (i.e. Consultants Council and the Highway Products Group). The District Board must approve all potential group contributions. Although companies within these organizations may be listed on meeting announcements or agendas, the amount of the contribution from each individual company should never be revealed to District 9.
5-11: Contributions to International ITE
If sufficient funds are available, the District will make the following an annual contributions ITE. These contributions are sent to ITE immediately following the summer meeting.
- $200 ITE general fund
- $300 to the ITE Fellowship Fund
- $1,000 to the Professional Development Fund
5-12: Travel Reimbursements (student travel is defined under Section 12)
ITE Annual Meeting Up to budgeted maximum amounts, it shall be the policy of District 9 to reimburse the District President, District Vice-President, International Director and Outstanding Student for expenses incurred while attending the annual ITE meeting in the fall. The District Board in the establishment of the annual budget shall determine the maximum amount of each year’s reimbursement.
International Board Meetings Up to budgeted maximum amounts, it shall be the policy of District 9 to reimburse the International Director for expenses incurred in attending the International Board of Direction meetings.
District Meetings It is the policy of District 9 not to reimburse District Officers, appointed positions or the International Director for meeting registration fees or travel expenses to District meetings. However, the District President customarily receives a complimentary hotel room. The District Board will support travel for Student Chapters as defined under Section 12, Student Chapter Support.
Technical Councils and Special Events Up to budgeted amounts, the District Board may authorize reimbursement for travel for District member(s) or student(s) to represent District 9 at an ITE-sponsored meeting, committee or council. These special cases must be discussed by the District Board, budgeted, and approved prior to travel.
Allowable Expenses Unless specifically exempted by the District Board, an individual member’s total travel reimbursement for a single meeting may not exceed the amount set in the annual budget. Allowable travel expenses are limited to:
- Round trip coach airfare from the member’s home to the meeting. If the member chooses, primarily for his or her own benefit, to drive to the meeting, travel will be reimbursed at the current mileage rate allowed by the State, with the reimbursement not to exceed the cost of the equivalent round trip coach airfare.
- Rental car expenses will be reimbursed where the cost of car rental is equal to or less than other ground transportation options available, or where such rental reduces the overall cost of ground transportation and airfare travel.
- Meals – Unless otherwise directed by the District Board, the daily reimbursement for meals shall not exceed the current maximum established for state employees.
- ITE Annual meeting registration – The District will reimburse the District President, District Vice-President, and International Director’s for meeting registration costs.
- In all cases, the member is encouraged to minimize reimbursement requests to maximize the effectiveness of the District’s travel budget. Also, members are encouraged to seek employer support in lieu of charging travel expenses to the District. Advance purchase is recommended to reduce airfare costs.
The limitations described above assume that the member has traveled to serve primarily on behalf of District 9. If the member is also performing activities in support of his or her employer or other agencies, the member will submit no more than a correspondingly appropriate proportional share of travel expenses for reimbursement from District 9.
Allowable expenses will be promptly reimbursed by the District 9 Administrator upon submission of a Travel/Expense Reimbursement Request form (Appendix K and appropriate receipts for expenses, including air travel, ground transportation, hotel, and meals.