What is the process for completing the Year End Financial Statement?

Each Chapter and Division treasurer is responsible for completing an Year End Financial Statement. The instructions are to be mailed to the treasurers on or before December 1st (also available from the Web site) and the report must prepared on Quicken. The reports are due to headquarters no later than January 31st. To be deemed as correct, the statements must include the following:

• The opening balance for the operating, reserve, and project funds must equal the closing balances reported at 12/31/previous year.
• If there is bulletin advertising income reported, there must be bulletin advertising costs.
• The Summary of Bank Accounts Page(s) must agree to each individual fund statement.
• The report must be audited and signed by the auditor.
• The report must be signed by the treasurer.

If the books are out of balance between the 12/31/previous year closing balance and the 01/01/current year balance, what should be done?

If under $50.00, make a miscellaneous adjustment and record under "Other". If more than $50.00, investigate further by checking the math, reviewing the bank statements, and referring the issue to the previous treasurer to come to resolution.

How do I calculate the bulletin advertising expense?

The bulletin costs must be separated by advertising and non-advertising expenditures. This is due to the IRS reporting requirements and calculation of unrelated business income tax. Example: The bulletin has a total of 100 pages; 25 pages are advertising. The cost to produce the bulletin is $1,000. The advertising cost would be $250.00 (25/100 = 25%; $1,000 x 25%).

Who qualifies as an auditor?

An auditor must be a disinterested third party. An auditor may not be any of the following:

• A member of the chapter or division
• A member of the SLA Board of Directors
• An employee of or a supervisor of the Treasuer.

How do I complete a W-9?

To complete the W-9 fill in the name as Special Libraries Association--your unit's name. For the address use 331 S. Patrick Street, Alexandria, VA 22314. SLA is incorporated and the FEIN is 13-5404745. Please be sure to put "EXEMPT" in the box in section II. The Treasurer is authorized to sign the form.

How do I know if SLA is exempt from sales tax in my state?

SLA is currently exempt from taxes in ten states (DC, FL, IN, MA, NJ, NY, NM, TN, TX and WI). Call our fax on demand system at 1-888-411-2856 and respond to the prompts to have a copy of the exemption you need faxed to you. Some exemptions require you to fill out some basic information such as name, address, etc.

Who do I need to have taxpayer identification numbers on file?

By IRS regulations, you should have the Taxpayer Identificatino Number (also referred to as FEIN or Social Security Number) on file for any person or business to whom you cut a check. Many companies simply will not issue payment until this information has been received. This can be obtained by sending a form W-9, Request For Taxpayer Identification Number. The IRS can audit this information and it is essential that all units have these on file to be in compliance with the law. These files should be passed on from Treasurer to Treasurer as officers change.

Why do I need to report to headquarters individuals who were paid over $600 during the year?

Any individual (corporations are exempt) who is paid over $600 for services (not expense reimbursements), scholarships, awards, honoraria, etc., or over $10 in royalties will be issued a form 1099. This is required by IRS regulations. Headquarters must file all these forms and collects this information to facilitate this task.

• Please note that expense reimbursements are excluded from this calculation
• It is only payments to individuals, corporataions are exempt. If you are unsure if your vendor is incorporated, contact them.
• A few units pay royalties for various items, please note that if you have paid more than $10 for royalties you must report this to headquarters. This is a major exception to the $600 rule.