BSA Governance Information
BOTANICAL SOCIETY OF AMERICA
Revised May, 2011
TABLE OF CONTENTS
II.QUICKBOOKS ONLINE ACCOUNTING
VI. ANNUAL MEETING
VI. SECTION & SPECIAL FUNDS ACCOUNTS
BOTANICAL SOCIETY OF AMERICA (BSA)
The Botanical Society of America (BSA) is a "not-for-profit" membership society that exists to promote botany, the field of basic science dealing with the study and inquiry into the form, function, diversity, reproduction, evolution, and uses of plants and their interactions within the biosphere.
For tax purposes, they are a 501©(3) organization that was originally incorporated in Connecticut – TAX ID# 62-0671591. Member Kent Holsinger is our agent for service in the state of Connecticut and files the incorporation renewal with the CT Secretary of State every 2 years. The administrative offices of the BSA are located in St. Louis, Missouri adjacent to the Missouri Botanical Gardens (MOBOT) and MOBOT provides the site and support services to the BSA.
Sales tax – the BSA has no obligation to charge sales tax for internet sales. All internet sales across state lines are not subject to sales tax (as of now…).
As the BSA operates as a non-profit in Missouri, they have applied for and received an exemption so they don’t have to charge sales tax (which would normally apply to merchandise sales to Missouri residents). Their Tax Exempt# 18473598.
The BSA is registered as a non-profit organization with the Missouri Secretary of State.
The BSA has a fiscal year of October 1st to September 30th. Prior to 1999, the organization had a June fiscal year end but it was changed to encompass the Annual Meeting activity in July/August.
Missouri does not require a corporate or non-profit return filing so the Association only files an annual federal non-profit tax return, form 990. This form is available online at a national non-profit website located at: www.guidestar.org. As a non-profit , the Association is required to provide a current copy of their tax return to any person or organization that requests it (and the BSA can charge them a copy or mailing fee).
The BSA formerly had their administrative offices in Columbus, Ohio and they still have one employee who works from her home and administers the Annual Meeting for the BSA.
The Botanical Society of America publishes a magazine called the American Journal of Botany; an online subscription is included in each annual membership fee. Apart from members, institutional subscribers (clients) also purchase the magazine.
The editorial office in New York (onsite at Cornell University) handles the editing & publishing of the AJB magazine on a monthly basis; Karl Niklas is the current editor.
The Editorial office is provided gratis by Cornell University and the BSA has an immaterial amount of money invested in equipment there. The BSA does carry liability and workers compensation insurance on the NY office with Traveler’s Insurance Co. $1,500 is paid each quarter to Cornell to cover the out-of-pocket costs of the magazine incurred by Cornell – office supplies, postage, etc.
The BSA’s accounting records are kept online with Quickbooks. That site is located at https://login.quickbooks.com. Quickbooks/Intuit is responsible for the daily backup of this information at an off-site server.
Separate sign-ins are available for Wanda (St. Louis office), Johanne (working from home in Ohio), and Mary (off-site accountant).
All financial reporting is done through the online Quickbooks program.
See the attached appendix for the full chart of accounts
As part of the accounting, each Income and Expense transaction is also posted to a specific department, called Class, within Quickbooks. This allows the reporting of BSA results by the following classes:
1 – St. Louis
Income is generated from these different areas:
In addition to individual members, the AJB magazine is also available by subscription to businesses and institutions (academic and non-academic) in either a print or online version.
These are based on a different pricing system than the individual member subscription and are recorded separately in the accounting.
The majority of the institutional subscriptions are handled by agents (Ebsco, Swets Information Services) who do the actual invoicing to the institution. They then send a lump sum check to the BSA with the various client payments attached.
Other than one agent, Swets/Blackford, these have not been converted to an electronic system for easy download into the database. The Administrative Coordinator inputs them manually into the database.
St. Louis, Missouri
There are two employees of the BSA in the St. Louis, MO office: Bill Dahl, the Executive Director, and Wanda Lovan, the Administrative Coordinator.
They are ‘officially’ employed by the Missouri Botanic Garden (MOBOT) and fall under the MOBOT umbrella for fringe benefits, including retirement, workers compensation coverage, and sick and vacation time. The BSA reimburses MOBOT for their out-of-pocket costs on these employees.
The BSA has a personnel committee which oversees the performance and employee reviews for both of these employees.
All operational and section cash disbursements are made from the BSA’s primary bank account at Commerce Bank.
Within Quickbooks, checks are written through the menu option Banking, Write Checks. The bank account is #1025, Commerce Bank. Choose a payee from the vendor list (drop down arrow to the right of Payee field), input the amount & memo, and then post to a specific Account (drop down arrow to the right of the Account field), and add a Class.
Leave the ‘to be printed’ box checked so the system can automatically assign check numbers when printing checks.
Then go to Banking, Print Checks, change the bank account to #1025 and add the starting check number. Put the computer checks in the printer & then print. Align as needed to fit the check form.
When a check is first written to fund the petty cash drawer, that payment is posted to Account# 1020 – Petty Cash Missouri. As cash is used up, the receipts are collected so that they may be entered into the accounting system as expenses.
To re-fund the cash drawer, a check is written to cash for the new amount to replenish the drawer. Simultaneously, a journal entry is recorded in Quickbooks to record how the previous cash was spent.
A sample journal entry is recorded as:
Debit: Office Expense (for receipts on hand) $35.
As with any payment, a class designation needs to be input for each expense entry.
At any time, the balance for Petty Cash in the financial statements should match the combination of the cash on hand plus the receipts in the drawer.
Starting cash to fund drawer $100
Receipts on hand ($85)
Add: new check to replenish funds $100
Equals: cash on hand in drawer $115
Commerce Bank, Missouri (2) – there are two accounts, a general checking and a sweep (savings) account. Both are administered by the St. Louis administrative office. Online access is available for both accounts. Authorized signatures on the account are: __________
Bank One, Ohio – this is the Meeting account used solely by Johanne Stogran to collect income and pay expenses for the Annual Meeting. Authorized signatures on the account are: Johanne Stogran and Joe Armstrong, Treasurer and Bill Dahl ??
Salomon Smith Barney accounts (3) – these three accounts are overseen by the Finance Committee and include the BSA endowment and long-term savings of the Association. The bank statements are directly sent to the Treasurer, Joe Armstrong, and the CPA, Mary Widiner, who reconciles the statements online. The St. Louis business office has online access to these accounts.
Huntington Bank, Ohio – pending closure; this is the old account used by the old administrative offices in Columbus, Ohio
Santa Barbara Bank & Trust (2) – pending closure; these are two accounts, checking and savings, used by the Treasurer, Joe Armstrong. All future expenses will be paid through the main administrative account in St. Louis
American Century, Ohio – pending closure; this is a savings account used by the old administrative offices in Columbus, Ohio.
These are prepared monthly for all open bank accounts. Use Quickbooks help for additional instruction.
When the bank reconciliation is complete, print a copy of that month’s check register and save it with the bank reconciliation summary/detail report.
The BSA keeps the following policies:
Traveler’s – Commercial, Liability and Worker’s Comp for the NY Editorial Office
Traveler’s - $3 million Commercial Umbrella coverage for the Annual Meeting
Insurance for the St. Louis, Missouri administrative offices is paid for by the MOBOT (who owns the offices).
Worker’s compensation insurance is provided for by Ohio State (for Johanne/Meeting Coordinator) and by MOBOT for the St. Louis employees.
Old Republic - there is a fidelity bond for $100,000 that renews every 3 years in August. The last premium paid was $814 for the policy period 8/8/2001 thru 8/8/2004 – Premium# FLA0367382, Agency 92-2857. HRH is the agent for renewal – phone# 352-378-2511.
In 1993, the BSA created an endowment fund with the purpose of increasing the monetary assets of the Society to provide income for funding major initiatives, travel grants, scholarships, and other activities within its Mission. The Financial Advisory Committee (FAC) has been given the authority to manage this fund.
There are currently 3 accounts held at Salomon Smith Barney that hold these endowment funds, and which are invested in a mixture of stocks, corporate bonds, and cash. Each account is ‘actively managed’ and incurs a quarterly investment fee.
Contributions are made to the endowment fund by a direct contribution made through the business office or through the annual online membership renewal process. Direct contributions to the BSA Endowment fund, increased or decreased by investment performance, amount to approximately $200,000 (as of May, 2004).
There was an increase to the endowment fund made by long-time members of the BSA, Richard and Deana Klein, in 2001 and that has been accounted for separately including an increase or decrease due to the portfolio performance. This donation was unrestricted, with the funds to be used for “___________________”. (Mary to research further…)
Although the BSA Board of Directors refers to the entirety of funds held in Salomon Smith Barney as the ‘Endowment Fund’, for accounting and tax purposes, only specific donations made to the Endowment Fund are separated on the financial statements. Since the BSA has a specific plan (as approved in their bylaws) for how Endowment funds are to be presented, and since they have solicited for funds on this basis, the BSA must account for those donations separately than other operational funds that have accumulated in the course of time.
The FAC has voted that the BSA Endowment fund will be allocated their pro-rata share of any investment increases or decreases that occur during the year, including both realized and unrealized gains.
The Treasurer has a three year term of office within the BSA. Each Treasurer chooses the accountant that they want to work with (normally in their local area) who is responsible for the following:
? Preparation of the annual tax return (form 990)
? Preparation of quarterly financial statements
? Preparation of the NY payroll & the related payroll tax returns & year end W-2’s
? Preparation of forms 1099 at year end (for non-employee compensation exceeding $600)
? Accounting support for the Business Office as needed, including assistance with the annual budget preparation
The Executive Director, Bill Dahl, handles the drafting of the annual budget which the Treasurer presents to the Board for approval at the annual meeting in July/August.
The Quickbooks online accounting software does not require a monthly or annual closing of the books. At the fiscal year end, Quickbooks automatically reclassifies net income to Retained Earnings as of October 1st. The accountant then creates a journal entry to reclassify the Retained Earnings to the various BSA fund accounts.
When donations are made to the BSA (including through the web site), the donation is classified as either “unrestricted” or “restricted”. Unrestricted donations are made with ‘no strings attached’ and can be spent freely by the BSA on anything they choose. Restricted donations are made to be spent for a ‘specific purpose’ or item and need to be tracked separately in the financially statements and internally so that our record keeping can support that we actually spent the item how we were supposed to. We need to save all correspondence that comes in with these ‘restricted’ donations for tax support.
Even though the BSA is a non-profit organization, donations to the BSA to pay membership dues are not a tax deductible charitable donation UNLESS a specific donation is made to the BSA endowment or one of the special funds, and in that case, only the donation part of the cost is tax-deductible.
Membership dues are not considered a ‘charitable donation’ as you receive something back in return (in the form of member services, including the AJB subscription).
For businesses, the BSA membership cost is a business deduction (fully deductible) and for individuals, it is a personal non-deductible cost. On an individual return, it might be considered a ‘Union & Professional Dues’ cost deductible as an itemized deduction on Schedule A.
This explanation covers regular dues as well as section dues paid in.
All membership, check disbursement and banking records should be maintained for a minimum of 7 years.
The exception to that is any records pertaining to assets that are still held by the BSA, including the Salamon Smith Barney accounts and all correspondence related to the Endowment account.
See the appendix for a calendar of key dates
The BSA maintains a web site called www.botany.org
The AJB magazine maintains a web site called the www.amjbot.org
Both web sites and database support are maintained by Lanspeed, a computer support company in Santa Barbara, California.
The majority of the BSA membership renewals are now processed online via the www.botany.org web site.
These are reviewed by the Administrative Coordinator before importing them into the member database.
Lanspeed created the current Access database being used and incorporated a prior database being kept by the Columbus, Ohio office. The current database runs off of the BSA web site at www.botany.org and is maintained by both the Executive Director, Bill Dahl, and the Administrative Coordinator, Wanda Lovan.
The database contains all current individual membership information for 2004, including section alliances, donations made to the BSA, papers written, and _________________. Prior membership information is available but no supplemental information on donations, etc. is available for past years.
To keep the database current, all outside deposit info (for Special interest accounts too) will be manually input into the Database so that those reports can be used as the Master control of all financial deposits to the BSA. For the Special interest accounts, this includes the Remy & Remy royalty payments, Karling & Darbacker accounts, etc. What is not input into the database are miscellaneous receipts non-specific to a member, such as advertising revenue, editorial charges, etc.
The goal of the BSA is to have the majority of their individual memberships apply and renew their annual subscription online. Lanspeed has created the form for this on the www.botany.org web site and this has been available for the 2004 membership year (beginning with October, 2003, the first month of our fiscal year).
COMMERCE BANK - Wanda opens mail, makes deposits, reconciles bank statement; Bill has online access and reviews frequently, makes cash transfers and reviews financial statements frequently.
MEETING ACCOUNT: Johanne makes all deposits and writes all checks; bank statements and cancelled checks are sent to Wanda who reviews the cancelled checks and reconciles the account.
ONLINE DUES PAYMENT – cash is directly deposited into Commerce Bank account.
The Botanical Society of America will comply with all grant requirements, in specific we note the following for Fedral Funding Agencies:
As part of the BSA operations, they host and put on an annual botanical conference which is where the bulk of the awards sponsored by the BSA are given out. This conference is at a new site each year.
Johanne Stogran, a BSA employee in Ohio, is our dedicated meeting administrator and coordinates the meeting activities year round.
The conference is held in July/August of each year and the BSA collects income from registration fees, sponsorships, advertising, and exhibitor booth rentals. Expenses include site selection expenses, registration & housing costs, promotion, field trip costs, honoraria, administration, etc.
There is a separate bank account that Johanne maintains at Bank One for all the Annual meeting collection of income and expense payments. Johanne maintains all the accounting activity in the master company online Quicbkooks file. The monthly bank statement and all bank correspondence are mailed directly to the BSA main office in St. Louis and the bank statement and cancelled checks are reviewed and reconciled there.
An additional $3 million of liability insurance was taken out with Traveller’s to cover this event. This will be paid annually along with our existing liability policy, but the cost is directly allocated to this event.
As part of being a general member of the BSA, there are special interest groups (i.e. ecology, paleobotany, etc) that each member can join (called Sections); some of these Sections require an additional fee be paid up front and these monies are allocated towards a specific cash fund for that section (although no separate bank accounts are kept). These funds are discretionary & to be used by the Sections as their bylaws allow – for association dues, awards and Annual Meeting related expenses.
In addition to monies they raise through dues, the sections are also allocated an annual sum (called an Allotment) that they can also spend in accordance with their bylaws.
Each section has both a Cash account (from dues raised and specific donations to that fund) and an Allotment account. Expenses for the sections are first paid out of the Allotment accounts and then out of the Cash account. Since no Sections are allowed to end the fiscal year in the red, any over spending of the Allotment account is covered by a transfer from the Cash account of each specific section.
To continue placing an emphasis on the annual meeting and to provide active Sections with more resources to support their activities, the Executive Council instilled a new method of allocation. The Allotment amounts used to be a fixed $700 per year per section but have been restructured to be in increments of $1,150 and $400, with each amount determined based on the Section’s activity at the last annual meeting.
$1,150 is allocated to disciplinary Sections organizing one or more full contributed paper sessions (approx 10-12 presentations). The remaining disciplinary and regional Sections shall be allocated $400. Since the activity of some Sections at the annual meeting is variable and dependent upon the presence of a co-convening society, the allocation may vary from year to year. In an effort to keep funding and participation synchronous, in those years when a co-convening society (e.g. but not limited to, Association for Tropical Biology, American Bryological and Lichenological Society, Phycological Society of America) meets with the BSA the allocation for the affiliated Section will be $1,150 for that fiscal year. If the co-convening society does not meet with the BSA in the following year, the allocation to the appropriate affiliated Section will return to the lower level. The Treasurer will notify sections of the their allocational status and available funds.
Based on BSA board discretion, the Allotment funds may either be carried over to use in future years or any unused funds are then taken back.
If an allotment is unused for two years, the funds will revert to the BSA, and the annual allocation will cease until the Section petitions the BSA Treasurer for an allocation by presenting a proposed activity and budget (invited speaker, social, symposium, etc.) for fund use. Allocational funds will not be transferred to any other sectional accounts or societies.
These funds are administered by the BSA Treasurer in accordance with policies established by the BSA Council and Executive Committee. Direct payments of awards and honoraria are made to the recipients. Officers of the Section or chairs of the award committees must provide the name of the award recipients, name and address of the awardee to the Treasurer prior to the 5pm on the day of the BSA banquet for the awardee to receive their award at that time. Expenses may be billed directly to the Treasurer with prior notification by a Section officer. All other expenditures are handled as reimbursements supported by receipts. All payments to non-society members should be submitted by a sectional officer.
For accounting purposes, these monies are never given directly to the Sections. Dues and donations are accounted for as part of the normal dues collection process and reported in the financial statements. Section expenses are submitted to the BSA office and paid from the general operating account.
Separate accounting is done outside of the online Quickbooks accounting for the BSA; a separate (not online) Quickbooks file is maintained to track the running balances of the various Section and Special Fundraising funds. Reporting is done to the Sections on a quarterly or as requested basis.
Special fundraising & award accounts – there are specific fundraising & award funds that have been setup through the years and they provide scholarships, awards and other benefits to both members and non-members (see attached list). Most of these awards are given out at the Annual Meeting in August.
The FAC has voted that both the Section and Special accounts (excluding Allotment accounts) that have a minimum average balance of $1,000 or greater during the year will be allocated their pro-rata share of any investment increases or decreases that occur during the year, including both realized and unrealized gains.
See the attached information from the web site with descriptions of each Special Interest Fund.
The following Special funds have specific directed donations that need tracking each year:
a) They receive a dedicated donation each year from Mellon Bank
a) Check the budget to see if any of the awards given were directed to come specifically from the Karling fund.
a) Pat Gensel, BSA Past President, has allocated the full royalty proceeds from her book, “Plants Invade the Land” to the Remy & Remy fund. Various royalty payments are received during the year from Columbia University