Message from AAPCCA Leadership
The 1-2-3’S of Chapter Money Management
Following is an example of how one chapter tracks their income and expenses. You’re more than welcome to utilize what is given here or continue with what best meets your chapter’s needs. There is no one “right” or “wrong” way to do this. The most important thing to remember is to maintain all receipts and financial records for your chapter.
- Make a budget – officers can easily determine their approximate yearly income and expenses by looking at past years’ year-end financial statements. Using this information, a detailed, line-item budget can be created. Allow for the unexpected and remember a budget is not written in stone, it is a guideline (kind of like Evaluation and Management coding!). There will always be gifts or donations that weren’t seen or expenses that pop up (like taxes!). Do this at the end of the year so members can approve this budget at the January meeting each year.
Once the budget is finalized by the officers, take it to the members for their approval. Once the budget is approved, expenditures may be made without going back to the members for a vote. Remember to include a line items for the Hardship Scholarship Fund!
- Say NO to taxes! Because the AAPCCA is a not for profit organization, any profit must be taxed. What is profit? Profit is monies left in the bank after all the expenses for the year have been made, not counting the beginning of the year funds.A good rule of thumb to follow is to end with the same amount of money, or less, than you began the year with.
- Spend your money on your members – don’t bank it. Our members work hard to support our local chapters! Reward those members by tracking participation and rewarding it.
Many chapters use a point system. In fact, there is an example in the Officers Resource section on the AAPC website. Those members who accumulate the highest point totals get the rewards. Points can be given for attending chapter meetings, attending the chapter seminar, serving on a committee and many other opportunities. In the past my own chapter has used this system to reward our members with paid registration to the AAPC Regional Conferences, paid for workshops or exams for members, coding books and given gift cards. You chapter can establish a guideline for how the point system works and what types of participation can be included. This is also a great way to incentivize new or less active members.
Our chapter funds belong to our members. That is why we vote on expenditures. There are a variety of ways to assure this done and in a timely way, that keeps you from recording a profit at the end of the year. For example, if you have a seminar early in the year, those profits from the prior year seminar can be spent before the year end. Pre-pay expenses by purchasing gift cards or pre-paying facility rental and food expenses and buying prizes and gifts to be used.
Heather Allen, LPN, COC, CPMA
AAPC Chapter Association Board of Directors – Treasurer
Region 5 – Texas, Oklahoma, Missouri, Kansas, Louisiana, Arkansas, Mississippi