Policies and Procedures
Executive Board
The Executive Board is the working arm of the full Board of Directors. The Executive Board will function for the Board of Directors between Board of Directors meetings and shall have all the powers of the Board of Directors except those specifically reserved to the Board of Directors itself.
No member may serve on the Executive Board if that member or that member’s spouse is a member of the Texas State Board of Public Accountancy. (EB: 4/25/03)
The Executive Board identifies issues, and considers and decides matters brought before it by members, committees, officers and others. With a view of the needs of the profession, the Executive Board is responsible for review and approval of Strategic Plan objectives.
The Executive Board is expected to perform the following duties:
• Review the annual budget, as recommended by the Finance committee and staff, prior to presentation for ultimate approval by the Board of Directors;
• Throughout the year, review performance against the budget and, through the treasurer, report such at each Board of Directors meeting and make such recommendations as it deems appropriate;
• Initiate recommendations to the Board of Directors regarding matters worthy of consideration;
• Screen and amplify for Board of Director’s consideration and approval recommendations made by committees;
• Take disciplinary action against members as necessary under Bylaws Article III;
• Approve changes to chapter Bylaws;
• Approve changes to TSCPA Volunteer Policy and Procedures Manual;
• Prescribe requirements and dues for Student Affiliate members; and
• In addition to the chairman-elect, treasurer and treasurer-elect, three members of the Executive Board will be appointed by the chairman to serve on the Finance Committee.(EB:11/11/06)
Executive Director/Chief Executive Officer, Role of
The executive director serves as chief executive officer of the Society and is responsible to, and serves at the pleasure of, the Executive Board. The executive director/CEO also serves as TSCPA?s assistant secretary. In accordance with the Texas Non-Profit Corporation Act (or successor statutes), the assistant secretary shall serve in the capacity of TSCPA?s ?president? when required to fulfill all legal requirements.
The executive director/CEO implements and administers staff policies and procedures and assures that staff provides appropriate support of volunteer policies and procedures established by the Executive Board and Board of Directors. He/she acts as a liaison between the TSCPA staff, TSCPA membership, and the local chapters and provides continuity for a constantly changing elected leadership and other volunteers.
The executive director/CEO functions in an advisory and administrative capacity in the recommendation, establishment, execution, and continuity of TSCPA programs and activities. He/she forecasts current and future requirements for budget and finance, staffing, facilities, and equipment necessary to accomplish programs and to meet objectives of TSCPA, and reviews proposed programs to determine their impact on human and financial resources. The executive director/CEO may approve new programs within constraints as outlined in the Budgetary Controls policy.
The executive director/CEO assists and advises the Board of Directors, committees, and members by monitoring key issues, programs, and trends within the profession. Specific responsibilities of the executive director/CEO are defined in his/her job description as approved by the Executive Board. (EB:8/09/02)
Expense Reimbursement, Volunteer
Society Chairman, Chairman-elect, Immediate Past Chairman and Chairman-elect Nominee: In token recognition of the substantial contribution of time and resources which are demanded of the chairman and chairman-elect during their tenures in office, all expenses relating to official travel by the chairman, chairman-elect, immediate past chairman and chairman-elect nominee and their spouses, subject only to the budget limitations for the year, are to be reimbursed by the Society. Travel expenses to be reimbursed shall include transportation, meals, lodging, and incidental expenses. Reimbursement of mileage as a travel expense will be at the prescribed IRS allowable rate, which may change from time to time. Original receipts of all expenditures, except for de minimis amounts defined from time to time by the IRS must accompany requests for reimbursement. Arrangements for air travel should be made sufficiently in advance to obtain any discount fares available. All reimbursed spouse expenses in excess of $600 in any calendar year will be documented on Form 1099 for tax purposes, as required by law. (EB: 6/29/06)
It is contemplated that official travel shall include one or more visits to each chapter and numerous visits to the Society office, as well as all meetings of the Executive Board, Board of Directors, Leadership Conference and the Society's Annual Meeting, and Mid-Year Board Meeting. The Annual Meeting of the American Institute of CPAs, and any other travel in the interest of the Society, at the discretion of the chairman and/or chairman-elect, shall be included in official travel. (EB: 4/2707)
Any expenses incurred resulting from the position of immediate past chairman or chairman-elect nominee, should be paid under the policy guideline of the chairman and chairman-elect. Expenses pertaining to other Society activities (not as a result of the immediate past chairman or chairman-elect nominee office) are not covered in this policy. (EB: 6/29/06)
All official travel must not be preceded or followed by vacations as a group or by an officer and his/her spouse if it is clear that the site was chosen to facilitate a personal vacation.
Expense reports of the Society chairman, chairman-elect, immediate past chairman and chairman-elect nominee will be reviewed and approved by the Executive Director/Chief Executive Officer. (EB: 6/29/06)
Committee Members: Reimbursement for committee members is limited to those for whom lack of reimbursement would constitute a sufficient financial burden to interfere with the performance of their responsibilities with the TSCPA and its affiliated entities (not including chapters). Such reimbursed expenses are limited to transportation costs including air travel costs at actual coach fare or mileage at the prescribed IRS allowable rate, which may change from time to time. (EB: 6/29/06
and 4/27/07)
Committee members requesting travel reimbursement under the parameters outlined above are to submit a brief memo, attaching either an original airfare receipt or a mileage statement. Arrangements for air travel should be made sufficiently in advance to obtain any discount fares available. There will be no disclosure of names of members to whom reimbursement is made. It is the intent that requests for reimbursement come only from committee members who qualify for reimbursement under this policy.
Committees should be aware of the following policies:
1. Travel, telephone, mailing costs and other expenses incident to committee meetings and Board of Directors meetings are a personal obligation of the committee members; such obligations should be recognized at the time of acceptance of the appointment to a committee.
2. Expense of mailings and printing of brochures or manuals and/or other materials for committee projects are to be requested as items in the committee's budget each year; expenses of this nature should be incurred only through the TSCPA administrative office.
These reimbursements are not available to committee members attending meetings held in conjunction with the Society's Midyear Board of Directors Meeting or Annual Meeting of Members since all members are expected to attend these meetings at their own expense. (EB: 6/29/06 and 4/27/07) In the event that a TSCPA volunteer attends an AICPA meeting as an official representative of TSCPA, the expenses should be budgeted by the committee or entity that the volunteer represents. Unbudgeted travel reimbursement for such meetings must be requested as a budget variance under the Budgetary Controls policy.
Executive Board Members: TSCPA will cover the cost of hotel accommodations necessary for Executive Board members to attend all meetings of the Executive Board (two nights for a two-day meeting, one night for a one-day meeting) as well as group meals during the meeting. All other expenses in connection with their attendance at Executive Board meetings (including transportation, incidental expenses and other lodging and meals) shall be the individual responsibility of Executive Board members. (EB: 4/27/07)
Coordinating Officers: In token recognition of the substantial contribution of time and resources demanded of the coordinating officers during their tenure in office, all expenses of official travel by coordinating officers may be reimbursed by the Society with the exception of Board of Directors, Executive Board and Annual Meeting attendance. Travel expenses to be reimbursed shall include reasonable transportation, meals, lodging and incidental expenses. Reimbursement of mileage as a travel expense will be at the prescribed IRS allowable rate, which may change from time to time. Original receipts of all expenditures, except for de minimis amounts defined from time to time by the IRS, must accompany requests for reimbursement. Arrangements for air travel should be made sufficiently in advance to obtain any discount fares available.
Legislative Regional Coordinators: Each legislative regional coordinator may be reimbursed for out of pocket expenses, including transportation (e.g., coach class airfare, personal automobile mileage allowance, taxi, and auto rental), lodging, meals and entertainment. Original receipts of all expenditures, except de minimis amounts defined from time to time by the IRS, must accompany requests for reimbursement. (EB: 10/28/00)
Reimbursement Requests:
Reimbursement requests are sent to the Controller of TSCPA, Dallas, TX.
(EB:11/7/03) (EB: 6/29/06)
Financial Standards, Minimum
In order to maintain an appropriate financial position for the Society and related entities, the following minimum financial standards shall be maintained throughout each fiscal year:
Cash Balances: The CPE Foundation shall maintain a minimum cash and investment balance equal to two succeeding months' forecasted indirect expenses plus one succeeding month's forecasted direct expenses.
The Society and other affiliated entities each shall maintain a minimum cash and investment balance equal to two succeeding months' total forecasted expenses.
Current Ratio: Each Society entity shall maintain a current ratio of one-to-one. This ratio shall be computed without regard to "deferred revenue."
Capital Expenditures: Capital expenditures or financing for any Society entity must not violate the Cash Balances or Current Ratio Standards on a current or forecasted basis.
These standards should be reviewed and evaluated at least every three years.
(EB:6/19/98)(EB:8/24/12)
Fund Balance Guidelines
TSCPA and the TSCPA CPE Foundation will strive to maintain a fund balance that provides the liquidity to make strategic investments for the future as well as to provide for an unexpected financial shortfall or other unexpected event. A portion of the fund balance should also allow TSCPA and the TSCPA CPE Foundation to deal with the market volatility of their investments that can happen from time-to-time. Based on the research of best practices within the broader association community, TSCPA has established the following guidelines for fund balances. If the fund balances fall below these guidelines, the TSCPA Finance Committee and Executive Board will recommend a plan of action to return the fund balances to an adequate level.
TSCPA
TSCPA will maintain unrestricted net assets equal to at least 50% of net expenses. Net expenses are defined as all operating and program expenses net of directly related program revenues such as Peer Review and publication advertising.
TSCPA CPE Foundation
The TSCPA CPE Foundation will maintain unrestricted net assets equal to at least 50% of total expenses. Total expenses are defined as all direct expenses of CPE programming plus indirect/operational expenses.
Investment Guidelines and Objectives
The purpose of this statement is to establish the guidelines necessary for the management of the TSCPA's investment portfolio. The principal and income of this portfolio will be available to fund the ongoing operations of the TSCPA and related entities. The goal of the investment portfolio is to preserve and grow capital while maintaining purchasing power and liquidity.
The TSCPA investment portfolio should be invested according to the following guidelines:
1. Interest bearing checking, saving, and money market accounts held at financial institutions which are members of FDIC or SIPC.
2. Certificates of deposit issued by federally insured financial institutions, including those obtained through brokerage firms.
3. Money market mutual funds that strive to maintain a constant dollar value.
4. U.S. Treasury securities and government agency securities.
5. Corporate debt securities in U.S. dollar denominated amounts. These securities must meet or exceed an investment grade credit rating from at least one recognized rating agency. These corporate debt securities are expected not to exceed 50% of the market value of the portfolio, with not more than 5% of the market value of the total portfolio in any one corporate issuer.
6. Diversified investment grade bond funds. It is understood these funds may not be 100% invested in investment grade securities and consideration should be given to the quantity and quality of the non-investment grade securities. When combined with the corporate debt securities in #5 above, these bond funds should not exceed 50% of the market value of the total portfolio and no more than 5% of the market value of the total portfolio should be with any one corporate issuer.
7. Equity securities in U.S. dollar denominated amounts. The equity securities should not exceed 60% of the market value of the total portfolio at the time of initial investment with not more than 5% of the market value of the total portfolio in any one corporate issuer at the time of initial investment.
The equity position will be evaluated semi-annually at May 31 and November 30. If the equity position exceeds 60% of long-term funds at these points in time, the Investment Committee will reallocate between equity securities and fixed income securities to bring the equity back down to 60%, or less. This allocation will be performed within 90 days of the dates above.
The investment portfolio shall be invested in accordance with the TSCPA Investment Guidelines and Objectives. The asset allocation of the investment portfolio shall be reviewed periodically by the Investment Committee, which will be responsible for monitoring the investment portfolio on an ongoing basis. This committee will consider the current economic, social, and political conditions, outlook for interest rates, market volatility, business environment, and other pertinent investment factors for making its asset allocation recommendations. (EB: 4/30/10)
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