Changes to Community Finances
SLA Restructure Finance Webinar Recording
Slides from Finance Restructure Webinar
How much additional work would be created for SLA staff and volunteers with the new SLA Restructure? Do the anticipated time and cost savings to individual communities in the restructuring justify the changes to SLA as a whole?
It is important to note that much of the SLA Restructure Initiative eliminates duplication and creates efficiencies, thereby freeing up both staff and volunteer leaders as opposed to a simple reassignment of administrative tasks to SLA staff. It is therefore not necessarily a direct transfer of responsibilities, but rather a re-envisioning of how SLA as a whole operates. Nonetheless, we are currently investigating the workflows to quantify the impact these changes will have on the SLA staff – especially during the transition to a new model. The SLA Board and staff are working to map out the proper allocation of people and time to provide quality service to members.
How do we migrate to the new structure?
Migration to the new structure begins immediately. Email communications, sessions at the Leadership Symposium and webinars to follow will help guide the volunteers through the transition.
How will unit funds be handled going forward?
All unit funds will be transferred into the SLA central account by March 15, 2020. SLA is committed to monetarily supporting the communities’ activities, programs and products Volunteers will submit PO requests and/or reimbursement requests via an online electronic form. When requesting funds, units will be required to submit a brief synopsis of the expense. For events over 100 people, SLA will partner with and collaborate with the community on the event (more information below). The unit funds will be used to support SLA members and communities and will be part of the operating because everything SLA does supports the members and the communities.
Is a Treasurer still needed in the future?
A Treasurer is not required for communities going forward. SLA will manage the finances and partner with units to ensure their programs, products, and activities carry forward.
What happens to the fees units pay SLA?
Going forward, there will be no charges to units for QuickBooks, website, and event manager.
How will SLA process reimbursements to SLA members for expenses?
Claire Sutton, Membership Coordinator, (email@example.com) is the main point of contact to handle all reimbursement requests. Reimbursement requests should be submitted through the SLA Community Expense Request Form.
Training videos on how to submit expense requests:
- How to: fill out Reimbursement to Individual
- How to: fill out Payment for Award/Scholarship
- How to: fill out Payment or Deposit to Vendor or Speaker
- How to: fill out Advance Payment to Individual for Upcoming Expense
In 2019, SLA has moved its financial processes to be all electronic, including payments with its accounts payables (payments to individuals and companies). All reimbursements will be electronic only. SLA will not issue paper checks. SLA will issue the reimbursement through Bill.com. Each individual who needs a reimbursement, will need to provide an email to SLA in order to receive an automated email from Bill.com to set-up the electronic transfer. The email is automated and comes from Angela Parker, Accounts Payable Manager for SLA.
In dealing with reimbursements, do we need to collect W-9s from the person or business who originally received the money (e.g., if we reimburse someone who has paid an individual or business, do we need that info from the actual recipient of the funds even though our check is written to a third party)?
Generally, the person / company who provided the service for your unit will receive a 1099 (and a W9 is required.) If there are special circumstances, feel free to contact the SLA Controller via email (firstname.lastname@example.org).
Do W9’s still need to be submitted for payments to vendors over $600?
Yes. You must obtain a W9 from any person or company who received more than $600 through the year for services provided. The same process that has been followed by Unit Treasurers will continue.
SLA will issue that person/company a 1099 if they qualify (see below.) A blank copy can be found in SLA Connect or on the internet by searching for “IRS form W-9”. Please send W9s to email@example.com.
- Who needs to be sent a W9 (so SLA HQ can issue 1099)?
- Vendors who will receive a 1099 (and, thus, a W9 is required) include: independent contractors, janitorial services, third-party accounts, third-party public-relations firms or any other company or worker that you paid for services.
- If your unit awarded a scholarship in excess of $600.00, you need to obtain a W-9 from the recipient.
- If your unit (re)paid for a unit officer’s travel expenses or repaid a chapter member for monies they laid out for a chapter event, for example, reservations or catering, they do not require a W-9.
- It’s best to request a W9 for all of your vendors to be sure SLA HQ is following all 1099 requirements.
- Is your vendor a corporation?
- Companies that are sole proprietors, partnerships or LLCs who received money from your unit should receive a 1099. C corporations, S corporations or LLCs that are taxed as C or S corporations do not require a 1099. It may be hard to tell what type of corporation you’re working with. To be safe, we recommend requesting a W9.
- Not sure if a 1099 is needed?
- It is best to file a 1099 if we are unsure. If we file a 1099 but did not need to, there is no harm done. However, if we fail to file one and one was required, SLA might be penalized heavily.
- In dealing with reimbursements, do we need to collect W-9s from the person or business who originally received the money (e.g., if we reimburse someone who has paid an individual or business, do we need that info from the actual recipient of the funds even though our check is written to a third party)?
Generally, the person / company who provided the service for your unit will receive a 1099 (and a W9 is required.) If there are special circumstances, feel free to contact the SLA Controller via email (firstname.lastname@example.org.)
- How do I complete a W-9?
- To complete the W-9, fill in the name as “Special Libraries Association— [your community’s name].” For the address use 7918 Jones Branch Drive, Suite 300, McLean, VA 22102. SLA is incorporated and the FEIN (Federal Employer Identification Number/Taxpayer Identification Number) is 13-5404745. All units fall under SLA’s EIN because we are legally one entity and should act as such. The FEIN should be used appropriately and for SLA purposes only. Please be sure to check the box for C Corp in Section 3 and indicate 1 as the exempt code in Section 3 The Community President, President-Elect, and Secretary are 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 – within the U.S.
- For whom do I need to have taxpayer identification numbers on file?
- By US IRS regulations, you should have the Taxpayer Identification Number (also referred to as FEIN or Social Security Number) on file for any person or business to whom/which 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 and Certification.” The IRS can audit this information and it is essential SLA have these on file to be in compliance with the law.
- Why do I need to report to SLA 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 US IRS regulations. SLA 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; corporations are exempt. If you are unsure if your vendor is incorporated, contact them.
You are required to send completed IRS W-9 forms for anybody you paid over $600 in the previous year to the SLA Controller at email@example.com. (https://www.irs.gov/forms-pubs/about-form-w9).
What is the process to close the unit bank account and transfer funds?
- Units banking with Wells Fargo
If your unit bank account is with Wells Fargo and under SLA umbrella, SLA will begin the transfer of funds at the end of February 2020. The transfer of funds will take up to seven (7) business days to complete. SLA will remove the current signatories via a signature form, which will take 3-5 processing. SLA close down Wells Fargo unit bank accounts once funds have been transferred.
- Domestic units not banking with Wells Fargo
If you unit bank account is NOT with Wells Fargo, follow these steps:
- Unit Signatory needs to go to the bank in-person
- Inform the bank that you are closing the account
- Request the funds be wired (transferred) to the SLA account. There will be a charge for the wire transfer around $25 and SLA will cover the cost.
- ACH & Wire Payment Instructions: Below are the instructions for payment via direct deposit into SLA’s bank account.
- If the funds cannot be wired to the SLA account, please request a check made out to the Special Libraries Association.
- The deadline to close the unit bank account is March 15, 2020.
- Domestic units not banking with Wells Fargo and set-up bank account with a social security number
- Please contact firstname.lastname@example.org. These units will close their accounts following the similar process. The challenge will be the name they listed on the bank account, which will be an individual. The bank should wire the funds or issue a check for “Special Libraries Association”. If the bank will not do this, one option is for the unit cut a check to SLA prior to closing out the account.
The deadline to close the unit bank account is March 15, 2020.
What are the next steps with QuickBooks?
- QuickBooks is SLA’s unit online accounting software. Each unit has their own account that is designed specifically for SLA unit financials. Access is provided to the Treasurer via an internet link to your secured QB account.
- QuickBooks will be maintained for 2020 in order to complete the 2019 tax return and audit.
- SLA Treasurers need to complete the 2019 year-end financial reporting by February 29, 2020.
- Unit Treasurers will have access to QuickBooks through March 15, 2020.
2019 Year-End Financial Requirement
Please follow the steps outlined in the Unit Treasurer Handbook and outlined here:
- You must download the Bank’s monthly statements at least quarterly, preferably monthly and balance them against the QuickBooks (QB) (Section 2) application provided by SLA. Get the usernames and passwords and any logon information for your bank accounts from your predecessor. If you do not have this logon information AND have a Wells Fargo account under SLA’s umbrella, please contact the SLA Controller at email@example.com. If you do not have a bank account with Wells Fargo account under SLA’s umbrella, please contact your bank directly.
- You must run the QB Reconciliation report when you balance your QB account(s) against the bank statement(s), preferably monthly.
- Year-end annual financial reports must be created and sent to the controller by the end of February or the unit’s annual dues allocation will be forfeited.
- You have, at minimum, a checking account, and maybe, a savings account for your unit. You might have a checkbook, and probably a debit card for your account(s). You need to advise your unit on account balances and be sure unit activities do not exceed your financial resources.
- You might accept payments through credit cards by using PayPal or a similar credit card processing service. If your unit does not utilize PayPal, consult their procedures and policies for registration. If your unit does use PayPal, it is best to close out the account and start fresh with each Treasurer, as billing and transfer can become confusing. Current PayPal procedures require you to utilize your personal credit information, including your Social Security Number. This means your personal credit information will carry data from your unit’s use of PayPal.
- Your unit might have a Pooled Fund account with SLA. This means an amount of money has been set aside by your unit to be invested by SLA. This is a long-term investment for your unit (3 to 5 years). Statements are issued bi-annually, and the amount must be entered into the Annual Financial Report.
How will the financial management model work with the international communities?
For Communities in Europe, New Zealand and Canada the following applies:
- Communities will keep a local bank account as they have been operating with
- SLA signatories will be added to the bank account.
- Communities are required to submit monthly required financial reports to SLA
- All processing needs to be electronic.
- Communities will need to pay a fee for QuickBooks. The fee is not yet determined.
- As SLA works through the due diligence of how this works internationally, there may be additional fees to the communities.
- Communities must file all year-end reports with SLA for SLA to submit accurate data in the tax return and audit.
For Communities in the Arabian Gulf and Asia, SLA will set-up meetings with you to discuss the financial model moving forward.
SLA Restructure Finance Webinar Recording