Finance and Operations

Conduct secure, transparent, and timely financial practices.  

This information is being provided as a resource and is intended for AIA purposes only. It should not be shared or otherwise distributed outside of AIA.

Accreditation Requirements

  

Requirement 1: State and Local components only: File an IRS 990, 990EZ, or 990N (postcard) tax return annually. Doing so protects the component’s 501(c) tax-exempt status and avoids enforcement actions and penalties. (NOTE: This is one of the requirements that components will report in their annual accreditation “check-up.”)

Documentation: Provide a copy of the component’s most recent IRS 990, 990EZ, or 990N return.

Primary resources:

Finances 101: IRS tax form 990
Find the form you need
Recording: 2021 Virtual Institute Resource Training: Finance and Operations

  

Requirement 2: State and Local components only: Annually submit all tax returns and reporting required by the component’s state and local jurisdictions. Doing so protects against enforcement actions and penalties. (NOTE: This is one of the requirements that components will report in their annual accreditation “check-up.”)

Documentation: Affirm that all tax returns applicable to the component have been filed, including: W-2, 1099, 941, property tax and sales tax.

Primary resources:

Financial reporting best practices & samples (Greater Washington Society of CPAs Educational Foundation)
State corporation laws and IRS exemption

  

Requirement 3: International components only: File all tax returns required by the host country and local jurisdiction (if applicable).

Documentation: Provide a copy of the component’s most recent tax return filed with the host country and filed with the local jurisdiction (if applicable).

  
Requirement 4: Maintain both directors and officers and general liability insurance policies for the component to protect volunteer leaders and the component from risk. (NOTE: This is one of the requirements that components will report in their annual accreditation “check-up.”)

Documentation: Provide either 1) a declarations page from the insurance policy or 2) a certificate of insurance, detailing the type of insurance coverage and the dates and limits of coverage.

Primary resources:

D&O Insurance Primer
CGL Insurance Primer
Business owners insurance (Employment Practice)

  
Requirement 5: Describe all other forms of insurance that the component carries (such as workers’ compensation for staff or meeting cancellation insurance for conferences.)

Documentation: List the other forms of insurance carried, with the date the current policy expires.

Primary resource:

Cyber liability insurance

  

Requirement 6: Adopt a business continuity plan to prepare the component in case of a disaster or crisis.

Documentation: Provide a PDF of the component’s current business continuity plan. Such a plan should address contingencies such as natural disasters; accidents; criminal or civil attacks on the component; loss of key leaders or staff; financial or cybersecurity breaches; and public health emergencies.

Primary resources:

Basic Business Continuity Plan Checklist
Architect’s Guide to Business Continuity
Emergency Action Plan-Template (Center for Disease Control)
Sample Emergency Plan

Secondary resources:

Family Evacuation Plan (American Red Cross) 
FEMA- Emergency Plan
FEMA COVID-19

  

Requirement 7: Provide financial reports to the board at least quarterly. Doing so enables board members and executives to uphold and execute their fiduciary responsibilities.

Documentation: Provide a copy of a meeting agenda that shows financial reports are being delivered to the board of directors. 

Requirement 8: Adopt and adhere to a financial management policy that assigns authority to certain staff or leader positions for these financial actions and decisions: approving expenditure of funds, signing checks, approving payroll (if applicable), entering into contracts, and maintaining accurate financial records.

Documentation:  Provide a copy of the component’s financial management policy.

Primary resources:

Sample Financial Management Policies
Financial Management 101

  
Requirement 9: Adopt and adhere to a financial reserve policy.

Documentation: Provide a copy of the component’s financial reserve policy.

Primary resources:

Sample Operating Reserve Policy


Requirement 10: Adopt and adhere to a policy that governs independent financial audits or reviews by an accounting firm, unless not feasible due to resource constraints. Regardless of whether an independent financial audit or review is conducted, component boards must appoint an independent financial review committee to examine the year’s financial records.

Documentation: Provide a copy of the component’s financial policy concerning audits or reviews (as applicable to the component) and the financial review committee.

Primary resource:

Creating a Financial and Audit Committee
Sample Audit or Volunteer Review Policy

  

Requirement 11: Ensure that financial data and transactions are secure for the protection of both customers and the component. Ensure that component staff, Treasurers, and others who access financial or other sensitive data have received data security training. If the component takes credit cards, ensure that the card processor complies with the Payment Card Industry Data Security Standard (PCI DSS).

Documentation: Provide a copy of the component’s current policy or procedures concerning the handling of funds and member financial data and efforts taken to reduce bank fraud.

Affirm that the component’s credit card processor complies with PCI DSS.

Primary resources:

Webinar recording: Cyber Security Practices
Payment Card Industry (PCI)
Sample Financial-Data-Privacy Policies

 

Requirement 12: Report dues rates to AIA Member & Component Support as required by AIA’s schedule (currently September 15) to ensure that dues revenues reach the component without delay.

Documentation: None needed. AIA will confirm. (Components that miss the September 15 deadline will have their members invoiced at the current year’s dues rates without change.)

  

Requirement 13: . To ensure components have access to crucial leadership resources, send at least one elected leader to Grassroots at least once every three (3) years. Send executive directors who work at least thirty (30) hours per week to Grassroots at least once every three (3) years.

Documentation: None needed. AIA will verify attendance.

  

Requirement 14: To ensure component executives have access to crucial management resources, send executive directors who work at least thirty (30) hours per week to the CACE Annual Meeting at least once every three (3) years.

Documentation: None needed. AIA will verify attendance.

  

Requirement 15: To ensure component executives are trained to access AIA resources, send new executive directors who work at least thirty (30) hours per week to attend Institute Resource Training within two (2) years of hiring.

Documentation: None needed. AIA will verify attendance.

Need help with Finance and Operations?

AIA National staff are available to help. We are available to answer questions, brainstorm a strategy, or help you leverage national content, expertise, and program resources so that you can maximize your components successful delivery of services in this core service area.

Finance
Terri Stewart
Chief Finance & Administration Officer
(202) 626 7464

Lisa Green
Vice President, Finance & Accounting
(202) 626 7406

Vermetra Riley

Sr. Manager, Membership Accounting
(202) 626 7330

Karen Ross
Sr. Manager, Accounting
(202) 626-8049

Regina Heard
Specialist, Accounts Payable
(202) 626-7337

General Counsel
T. Francis Ona, Esq., SPHR
Sr. Vice President & General Counsel
(202) 626 7375

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