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TUG Board of Directors
Annual dues notifications shall be sent no later than December 1 and shall be due during the month of January. A $50 USD discount is offered to members who pay their dues by December 31st.
Dues shall be prorated for any new member who joins mid-year. Administration may choose to invoice for the prorated current year and the full-next year, if a new member joins on or after October 1st.
From time to time, the Board of Directors (“Board”) may approve discounted memberships for promotional purposes. The Board may, by majority vote, adjust the rates of any annual dues, the method of calculation, and payment thereof.
1.1 Reporting Requirements
1.1.1 TUG is a 501c6 NonProfit Corporation based in the state of Maryland with a fiscal year-end of December 31st.
1.1.2 All TUG financial reporting is on a CASH basis.
1.1.3 TUG is required to file the following returns and forms annually:
• Form-990 return to the IRS by May 15th for the prior fiscal year.
• Maryland Property Tax return by April 15th for the prior fiscal year.
• A 1099 for all payments of $600 or more annually to any person or non-corporate entity by January 31st for the prior fiscal year.
• 1096 return to the IRS by February 28th (this is to report all 1099 activity) for the prior fiscal year.
1.2 Reporting Procedures
1.2.1 The Association Management Company (“Management Company”) is responsible for maintaining and reporting the financials for TUG, as well as maintaining all the filing requirements listed above.
1.2.2 The Management Company maintains an Excel spreadsheet with all TUG financial records.
1.2.3 The financials are to be closed within 7 days after EOM for all months excluding December. The year-end books are to be closed by January 31st.
1.2.4 The Management Company will prepare a monthly financial summary for review by the TUG Treasurer, and a quarterly summary for review by the TUG board. The summary will include actual vs. budgeted income and expenses, beginning and ending cash balances, and membership by member-type.
1.3 Annual Budget Preparation
1.3.1 The Management Company and TUG Treasurer will prepare an annual budget by November 1st for the upcoming fiscal year. The budget will be presented to the Board during the January or February board meetings. The budget shall be approved by the board, with modifications made as directed by the board.
1.3.2 Changes to the budget may be approved by the Board as necessary during the year.
1.3.3 The budget shall include projections of income and expense by month, projected cash flow and bank balances, and projected membership.
BANK POLICIES AND PROCEDURES
BANK AND MERCHANT ACCOUNTS
2.1.1 TUG maintains the following accounts:
• A commercial checking account with M&T Bank based in Maryland. This account has online banking, and the Management Company and TUG Treasurer have online access.
• A credit card merchant account with NXGEN Payment Services. All credit card revenues through this account are passed directly to the M&T checking account.
• An online merchant gateway with Authorize.net. This gateway is used to verify and approve all credit card transactions processed online, such as through the conference registration application software.
2.1.2 Monthly statements for the checking and merchant accounts are mailed to the Management Company.
2.1.3 The Management Company will reconcile the checking account within 7 days after EOM. The Treasurer is responsible for verifying the checking account balance within 30 days after EOM.
2.1.4 The Management Company will maintain copies of all banking and merchant account statements for a minimum of 5 years.
3.1 Safeguards to ensure that transactions are properly authorized, executed, and recorded.
3.2 Levels of Authority and Responsibility
3.2.1 The TUG Executive Committee is responsible for establishing and maintaining all financial policies and procedures, and these must be approved by a voting quorum of the TUG board.
3.2.2 All financial policies and procedures shall be reviewed by the TUG board annually.
3.2.3 The TUG Treasurer and Management Company shall have authority to authorize payments and sign checks However, any payment that will cause an expense to go beyond the budgeted amount for that expense category by more than $1,000.00 must be approved by the TUG board prior to the payment being released.
3.2.4 The TUG Treasurer and Management Company will keep physical checks for the M&T checking account, in a secure location.
3.2.5 The Management Company and Treasurer will keep a list of all account numbers, online IDs and passwords for the checking and merchant accounts. These records will be kept confidential and only shared with other Directors upon request of the Chairperson.
4.1 TUG membership dues are assessed on a calendar-year basis.
4.2 The Management Company is responsible for the invoicing and dues collection process.
4.2.1 Dues renewal notices are sent by email on December 1st and December 15th. Follow-up reminders are sent on January 15th, January 31st and February 15th.
4.2.2 Hard-copy invoices are mailed by January 20th to any member who has not yet paid.
4.2.3 A discount of $50 is offered for payments received by December 31st.
4.2.4 The TUG post office box is emptied weekly at minimum. All checks are deposited to the TUG checking account within 3 days of receipt.
4.2.5 An excel spreadsheet is maintained to keep track of all membership renewals. The date, amount and payment method are recorded for each payment.
5.1 The Management Company is responsible for payment of all expenses.
5.2 All invoices shall be paid within the terms of the invoice or no later than 30 days from the invoice date. If a discount is offered, the invoice shall be paid in time to take the discount.
5.3 Invoices for expenses that are included in the budget may be paid by the Management Company without approval. Invoices for expenses that are not budgeted, or that would cause the actual expense for that budget category to exceed the budget by more than $1000.00, must be approved by the TUG board.
5.4 Copies of invoices will be kept by Management Company for a period of at least 5 years.
CASH BALANCES AND OPERATING RESERVES
6.1 An operating reserve shall be maintained in the checking account as a precaution against unforeseen events or expenses.
6.2 The reserve amount shall be equal to or greater than the annual total budget for expenses excluding conference or meeting-related expenses. This balance shall be determined as part of the annual budget, and should be maintained in the checking account as of January 1st of each year.
6.3 If any payment during the year will cause this reserve to go below the projected balance as of the end of the year, such payment must be brought to the TUG board for a vote.
TRAVEL AND OTHER EXPENSE COVERAGE FOR DIRECTORS
7.1 As a benefit to Directors, TUG will cover all expenses related to board meetings and other events that are mandated by the board for the benefit of TUG.
7.2 A budget line-item will be created for any known meetings or events that are planned. For unplanned events, the board will approve the estimated expense prior to any payments being made.
7.3 Directors are responsible for submitting copies of receipts before reimbursement is made.
7.4 Reimbursement will be paid from the TUG operating account and payment will be made either directly to the director or to the director’s company, at the request of the director.
7.5 For any reimbursements to individual directors that exceed $600 during the year, a 1099 will be issued.
8.1 TUG is required to carry insurance to protect the organization and its board against unforeseen liabilities The following insurance policies are in effect:
8.1.1 Directors and Officers Liability to provide personal protection for board members, with a $1,000,000 limit.
8.1.2 General Liability to provide protection for the TUG organization with a $2,000,000 aggregate limit and $1,000,000 limit per occurrence.
8.1.3 Event Cancellation Insurance for any TUG sponsored events in excess of 300 people, with enough coverage to pay for any cancellation fees and member travel reimbursements as may come due as a result of the event’s cancellation.
8.2 The Management Company is responsible for annual renewals for all insurance policies, and for notifying the board of any changes in the policies The Management Company will keep copies of the policies in their TUG files.
9.1 The following procedures should be followed when a new Treasurer comes into term:
9.1.1 If possible, a Treasurer-elect should be selected 3-6 months in advance of the expiring Treasurer’s term, and can then be included in all treasury functions during transition period.
9.1.2 The Management Company will send a packet to the in-coming Treasurer containing a list of all bank accounts and associated contacts at the bank, as well as a checkbook and deposit slips as a backup to the Management Company.
9.1.3 The signature card for the operating bank account should be updated within 30 days of the transition.
9.1.4 A new online ID should be established for the operating bank account, and the old online ID should be discontinued within 30 days of the transition.
9.1.5 The Management Company will provide a detailed review of the annual budget and other financial procedures for the in-coming Treasurer.
Category of Membership
Partner Member Company
Associate Member Company
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