Adopted December 2024, Amended March 2025

BACKGROUND INFORMATION

This manual is a description of fiscal controls for Greater Baltimore DSA (the Chapter). Following the policies set forth in this document helps ensure the presence of adequate internal controls to foster accountability and transparency throughout the Chapter, and to ensure the reliability and accuracy of financial records.

SETTING UP ACCOUNTS

Account Signatories

At least three Signatories should exist for each of the Chapter’s financial accounts (this includes the bank account and any third-party merchant accounts). The Treasurer shall be the primary Account Signatory. Unless the Steering Committee decides otherwise with a majority vote, the Account Signatories shall be the Co-Chairs and the Treasurer. Their term shall last until the term of the Steering Committee ends. The Steering Committee or the General Body can remove any Account Signatoryfor malfeasance by majority vote of the respective body. Each Signatory must be a member of the Steering Committee or a Chapter Officer, and a DSA member in good standing of the Chapter.

Third-party merchant accounts must be directly linked to the Chapter bank account and cannot be linked to any type of personal account. All Signatories must have access to all third-party merchant accounts. The approved third-party merchant accounts are: PayPal and Cash App.

The three Account Signatories are:

• Richard S, Treasurer, access expiring at the next Steering Committee Meeting after the April 2027 GBM
• Jaden B, Co-Chair, access expiring at the next Steering Committee Meeting after the April 2027 GBM
• Makare S, Co-Chair, access expiring at the next Steering Committee Meeting after the April 2027 GBM

Upon the election of a new Steering Committee or Treasurer, and if there is no objection of the Steering Committee, this document is automatically amended with the new members as Signatories with a term ending at the next chapter election, requiring the signature of all three Account Signatories.

PLANNING AND BUDGETING

The Chapter Treasurer shall prepare an operating budget with the support of the Budget and Finance Committee to project anticipated income and expenses no later than two months prior to the start of each fiscal year. Once the budget has been prepared, it will be circulated no less than two weeks in advance of the Steering Committee Meeting, and approved by majority vote by the Steering Committee. This Steering Committee Meeting must take place at least two weeks before the General Body Meeting where Chapter members may propose amendments to said budget before adopting it. This General Body Meeting must take place at least one month before the end of the fiscal year (i.e. the November General Body Meeting). This provides the Chapter sufficient time to evaluate and vote on the budget. The proposed budget must be presented at a General Body Meeting for debate before a vote can be held.

If the Chapter fails to ratify a budget before the start of the fiscal year, the current budget is extended and the Steering Committee is directed to prioritize drafting a budget, which must be presented at a General Body Meeting for debate and a vote as soon as possible.

Fiscal Year

The fiscal year for the Chapter shall begin on January 1st of each year, and end on December 31st of the same year. This aligns with DSA National’s fiscal year.

Monitoring and Adjusting the Budget

The Treasurer shall monitor actual expenses and income in comparison to the budget on a monthly basis. If there are significant differences between the budgeted and actual expenditures or revenue, the budget may need to be adjusted. Any changes to the budget shall be approved by ⅔ vote of the General Body after being presented and debated at a General Body Meeting.

Discretionary Fund

The Chapter shall have a Discretionary Fund and may approve non-budgeted expenditures to be paid using the Discretionary Fund. The amount in the Discretionary Fund is included in the operating budget. This amount may be revised by amending the budget.

Providing a Reserve Fund

The Chapter shall maintain a Reserve Fund separate from the general account to cover any unexpected expenses or losses in revenue. This Reserve Fund shall be equivalent to at least six months of recurring expenses. The Reserve Fund is set at $2,750 and will be recalculated whenever the budget changes. The Chapter is only authorized to spend the Reserve Fund in the event the Chapter ceases to receive dues share or critical expenses occur that would otherwise force the Chapter to spend restricted funds.

HANDLING INCOME

All income will be deposited into the Chapter bank account in a timely manner—ideally within the same month of receiving the income. If Chapter fundraising is linked to third-party merchant accounts, monthly transfers to the bank account must be made.

Fundraisers

The Chapter may run Fundraisers for specific purposes. In order to create a Fundraiser, a resolution must be passed by the Steering Committee. When a Fundraiser is created:

• The Treasurer shall add a line item in the budget to account for those funds, which may only be used for the specified purpose.
• A timeline for spending must be identified, and any funds remaining after that time period passes will be reverted to the general account. This timeline may be amended if necessary. Funds raised for outside organizations will remain restricted and not revert to the general account and will be disbursed to that organization as soon as possible.
• A Chapter body (e.g. Working Group, Functional Group, or other committee) must be designated to approve the use of funds. Such approval of funds must be the result of a vote of that body, which must be recorded in writing (e.g. in meeting minutes or a Discord poll) before the Chapter approves disbursement of funds. This approval may be simply a descriptor of the expense rather than a specific amount. The Steering Committee shall serve as the approving body if none is identified.
• The Treasurer shall create a payment link that will be the primary method of collecting funds towards the Fundraiser. This payment link shall be disabled after the Fundraiser expires. Each Fundraiser payment link shall:
  1. State the purpose of the donation
  2. State that all excess funds from the campaign will be reverted to the Chapter’s general account, unless the funds are being raised for a third party
  3. Collect the donor’s name and email address so that the Chapter can contact them about the donation if needed
  4. State that the Chapter is a 501(c)(4) social welfare organization and donations are not tax deductible

Funds donated to the Chapter outside of Fundraisers will be added to the general account. The budget must be amended in order to use funds in the general account.

Cash

The Chapter shall use a lockable cash box for all events and fundraising efforts that involve cash sales and collections. The cash box will be kept in a secure location. Cash donations over $100 need to have cash receipts. 

Cash income will be counted and deposited into a Chapter bank account with no less than two Signatories present. Counting of cash shall be done in a private and reasonably secure location. Cash flows will be properly documented using a written ledger that notes all cash inflows and outflows.

Authorized Cash Box Custodians

The Account Signatories are the main Custodians of the cash box and are responsible for the maintenance of the cash box at Chapter events, disbursement of the cash box to authorized members, replenishing funds, and depositing the cash into the Chapter bank account.

If an Account Signatory cannot attend an event that requires the cash box, a Chapter member can be authorized as a Custodian by submitting a check-out form (found here). This check-out form shall collect the name and contact information of the member making the request, and the name and date of the event for which the cash box is needed. Account Signatories shall review form requests, and if approved, dispense the cash box to the authorized Chapter member. Once in receipt of the cash box, the authorized member shall retain the same responsibilities as the cash box Custodians until the cash box is returned to an Account Signatory within two weeks.

Cash Box Custodian Responsibilities at Events

Custodians of the cash box are responsible for securely managing the cash box before, during, and after events where the cash box is used. Custodians shall document (here) the beginning and ending cash balance and all transactions that occurred, making sure to document the item and amounts of item sold, the amount the item was sold for, and (if possible) to whom the item was sold, and their relevant contact information. A sample merchandise tracker can be found here. 

HANDLING EXPENSES

The preferred method for all payments in the Chapter is for the Treasurer to issue payment. Reimbursements should be avoided if possible. The Chapter shall have a form to track purchase requests (found here) and will maintain a form to process reimbursement requests (found here). Reimbursement requests require appropriate documentation for the expense, i.e. receipts, invoices. 

Procurement Policy

Vendor Selection Criteria

When selecting vendors, Chapter members responsible for procurement should prioritize vendors that align with the Chapter’s values, including, whenever possible:

• Unionized workplaces
• Worker-owned cooperatives
• Used, refurbished, or second-hand goods (when appropriate)
• Minority-owned, women-owned, or otherwise historically marginalized-owned businesses
• Businesses that are participating in any of the Chapter’s campaigns (e.g. have signed the Apartheid Free Baltimore Pledge)
• Vendors that demonstrate commitments to:
  • Fair labor practices and economic justice
  • Energy efficiency and energy savings
  • Environmental safety
  • Natural resource conservation
• Avoid all businesses or goods that are being boycotted by any of the Chapter’s campaigns

No single criterion is required in all cases; however, decision-makers should make a good-faith effort to prioritize these attributes and document their consideration when applicable. All procurement decisions should balance cost, quality, mission alignment, and long-term value to the Chapter.

Procurement Procedures and Best Practices

To ensure accountability and cost-effectiveness, the following best practices apply:

• Multiple Quotes. For purchases over $300, at least two (2) price quotes should be obtained when feasible. For significant or unusual purchases, additional quotes are encouraged.
• Documentation. All quotes must be documented and provided to the individual(s) or body responsible for approving the expenditure (e.g., Treasurer, required account signatories, Steering Committee, or relevant working group). Documentation may include emails, screenshots, written estimates, or invoices.
• Avoid Unnecessary Purchases. Purchasers should avoid acquiring items that are unnecessary, duplicative, or unlikely to be used. Existing inventory or shared resources should be considered before making new purchases.
• Invoicing and Payment Timing. Whenever possible, vendors should be asked to issue an invoice. Payment should be made after goods are received or services are rendered, unless advance payment is required.
• Recurring Expenses. For recurring costs (e.g. subscriptions, service contracts), purchasers should review terms for clauses such as automatic renewals, early cancellation fees, and minimum contract periods.
• Price Reviews. For items or services purchased on a regular basis, prices should be periodically compared with other vendors to ensure the organization is not overpaying.

Spending Authorization

Funding appropriated to Working Groups may be spent by majority vote of that Working Group, with approval by the Treasurer to ensure sufficient funds for operating expenses. Working Groups should maintain a record of the approval vote in the minutes of their Working Group meetings.

Funding appropriated to the Discretionary Fund may be spent with approval of the Steering Committee for expenditures up to $100, with expenses larger than $100 requiring approval by the General Body.

Other budgeted expenditures up to $100 may be spent with approval of the Treasurer; expenditures over $100 must be approved by at least two of the Account Signatories; and expenditures over $500 must be approved by the Steering Committee. Those approving the expenditure should confer with the Treasurer to ensure sufficient funds are available.

Approved Reimbursements

Reimbursements occur when a Chapter member pays for a Chapter program good or service out of their own pocket, and the Chapter later reimburses them for the expense. The Chapter should avoid reimbursements as much as possible. If the Chapter does need to reimburse members for any reason, the member must submit a reimbursement form (found here). The reimbursement form shall collect the member’s name, contact information, preferred method of reimbursement, detailed description and amount of the expenses being reimbursed, a copy of the receipt, whether the expense was pre-approved, and where in the budget the expense is to be paid from.

The Treasurer will approve or reject reimbursements up to $500, and the Steering Committee will approve or reject reimbursements over $500. The Treasurer will then reimburse the Chapter member via check, direct deposit, or some other payment method. If the Chapter plans to reimburse members for any travel expenses, such as lodging, meals, or mileage, they should reach out to fiscal@dsausa.org to ensure they are in compliance with federal guidelines.

RECONCILIATION

Reconciliation of all bank and third party vendor accounts with the ledger shall be done on a monthly basis by the Treasurer. Reports on the Chapter’s financial standing will be presented by the Treasurer at the monthly General Body Meeting, as well as at Steering Committee Meetings upon request.

DOCUMENTATION

Financial Transactions

The Chapter shall maintain a paper trail for every financial transaction made under every account. This includes, but is not limited to, receipts, invoices, deposit slips, and contracts. The Treasurer shall be responsible for organizing and filing all documents listed below.

Any Chapter events should carefully record and document all the income and expenses for this event. Those records should be included in any Chapter ledger.

Record Filing and Retention

The Chapter shall keep the following records:

• Donation records (donation forms, acknowledgment letters, deposit slips, etc) will be saved for a minimum of 10 years.
• Disbursement or payment records (purchase orders, receipts, invoices, reimbursement forms, checks, deposit slips) will be kept for a minimum of 5 years.
• Bank records (canceled checks, bank statements, and reconciliation reports) will be kept for a minimum of 10 years.
• Third-party vendor records (monthly statements, financial transactions, deposits, etc.), will be kept for a minimum of 10 years.
• Incorporation documents (organizing resolution to incorporate, Certificate of Incorporation, proof IRS Form 8976 was submitted, IRS Tax Determination Letter, etc.) will be kept indefinitely.
• Records relating to property and equipment will be kept for at least as long as the Chapter owns said asset. Once the Chapter has disposed of or sold said asset, records relating to the asset will be kept for an additional period of 3 years.

Financial records will be stored in the Chapter Google Drive that are accessible to the Steering Committee and Treasurer. Semiannual print copies of financial records shall be kept by the Treasurer and passed on at the accession of a new Treasurer. As most financial records are stored on a computer, the files must be backed up frequently. Records should never be stored in someone’s personal account. 

Reporting Requirements

All chapters are expected to keep meticulous financial records, and to report their finances to the appropriate governing body (i.e. IRS or DSA National). When reporting financials, chapters should rely on their ledger, bank and third party vendor statements, and source documentation. These will be used to prove the validity of the chapter’s reported income and expenses.

Separately incorporated chapters like GBDSA must submit an IRS form 990-N, 990-EZ, or 990, and submit any necessary state tax filings. Chapter Treasurers may be contacted by the IRS or their state’s attorney general to prove the validity of their reported revenue and expenses, and will be expected to provide a ledger, bank statements, and source documentations as proof.

AMENDMENTS

This policy may be amended by a ⅔ vote of the General Body after being presented and debated at a General Body Meeting.

REAPPROVAL

This policy must be updated and held to a vote annually at the General Body Meeting where elections are held for the Steering Committee. The Budget and Finance Committee is directed to submit recommendations for changes in policy. The vote to reaffirm the policy is a simple majority vote of the General Body