Financial Procedures

About

AFSP Policy (approved by AFSP Board of Directors, December 3, 2003) requires all chapter finances to be centralized in the National Office.

Utilizing a Centralized Accounting System is both organized and cost effective:

  • All chapter deposits (income received) are sent to the National Office; likewise, all major expenses are paid by the National Office.
  • Centralized Accounting provides for greater financial controls. 
  • Our organization avoids having to pay for multiple audits (every chapter, plus the National Office).
  • Centralized Accounting relieves chapters of the burden of filing 990’s, state registrations and state licenses to solicit funds.

Centralized Accounting is vital to the continued growth of AFSP’s strong nationwide network of chapters. It affords our chapter volunteers an ability to focus on carrying out AFSP’s life saving mission at the local level while not being bogged down in administrative work.

Key AFSP Accounting Facts

  • AFSP operates on an accrual basis. This means we recognize expenses when incurred and revenue when earned rather than when payment is made or received.
  • Our fiscal year runs from July 1 through June 30.
  • AFSP is audited each year, usually during August and September and audited financial statements are presented to AFSP’s Board of Directors at its December meeting.  AFSP’s audit includes a review of chapter financial statements and banking records. Instructions are sent to chapter on how to prepare.

How Does AFSP’s Centralized Accounting System Work?

Shortly after a chapter receives its charter, the National Office prepares a starting balance worksheet.  This starting balance worksheet reflects any funds raised by the chapter (50% of the net proceeds) and expenses paid on behalf the chapter, resulting in a starting balance. A copy of the starting balance worksheet is sent to each chapter.  From that point forward, the chapter receives a monthly statement or “report” of its revenue and expenses.

**** ALL DONATIONS MUST BE PROCESSED AT THE NATIONAL OFFICE (NO LOCAL DEPOSITS OTHER THAN CHAPTER REIMBURSEMENT CHECK)

**** ALL MAJOR EXPENSES TO BE PAID BY NATIONAL. MINOR EXPENSES INCURRED PERSONALLY SHOULD BE REIMBURSED THROUGH NATIONAL OFFICE