Receipt and Expenditure of Non-Budgeted Funds Standard Operating Procedure

Effective Date – July 1999

1 Policy

1.1 The US Internal Revenue Service (IRS) recognizes the Semiconductor Environmental, Safety & Health Association (SESHA) as a non-profit professional association under Section 501 (c)(3). To ensure that financial management complies with Association bylaws and legal requirements, all Association monies are maintained by the Association within a Board approved budget. Each year a comprehensive audit is completed to ensure compliance with generally accepted accounting procedures.

1.2 It is the policy of SESHA that all funds, receipts, and proceeds from activities, whether budgeted or not, be transferred to the national SESHA office and managed under the direction of the Association Board of Directors. No other organization or entity within the SESHA is permitted to hold or disburse money.

1.3 The purpose of this procedure is to establish a standard policy for revenues collected and expenditures made outside of the normal budgeting process. Examples of such revenues and expenditures include local chapter fundraising, regional mini-conference proceeds, and undesignated corporate donations. The intent of this policy is to ensure that the Executive Director and Association Board of Directors maintain proper fiscal control and accounting of all association monies. Any aspect of fundraising and disbursement not specifically addressed in this policy is subject to prior approval by the Association Board of Directors.

1.4 Local chapters may consider it desirable to maintain separate discretionary funds under local control. Unfortunately, the associated costs necessary to ensure proper accounting and compliance to legal requirements precludes their viability. Consequently, such accounts are specifically forbidden. Any region, chapter or other local entity operating under the auspices of the SESHA that maintains funds separate from national SESHA accounts is in violation of SESHA policy. Such a violation will result in revocation of the chapter’s charter. Additionally, SESHA assumes no responsibility for potential legal ramifications of such unauthorized accounts including interpretations of the IRS.

2 Scope

2.1 This policy does not apply to activities of affiliates and subsidiary organizations operating outside of the United States of America when those entities have in place a separate treasury. Such a separate treasury must include an approved budget, proper accounting and auditing procedures, and polices in place to ensure compliance with statutory reporting requirements of their region.

3 Implementation

3.1 The annual SESHA budget includes a modest stipend for funding local chapter activities. If requested, the SESHA Secretariat can also initiate a specific chapter or region account for maintenance of monies generated by a specific chapter or region during local activities. The balance available in this account will never be allowed to exceed $1000.00. If a local chapter generates monies more than this amount, they will revert to the general fund.

3.2 If locally generated monies are transferred to the general fund, the local chapter or committee that provided these funds may direct their usage, placing them in the restricted scholarship fund, long term investment, endowment, or general operating funds, or they may transfer funds to other chapter accounts.

3.3 Local chapter monies will be disbursed by submitting expense reports with appropriate proof of valid purchase. Up to $200.00 may be expended with approval of the local Chapter President or Region Director. Amounts more than $200 per incidence or $300 total per year requires approval of the SESHA Executive Director.

3.4 Local chapters, regions or committees may raise funds to satisfy monetary needs for activities that benefit the individual chapter, region or committee. The SESHA exists as an Association providing professional growth and development, networking with peers and continuing education. Any activities using SESHA funds must be designed to satisfy one or more of these goals.

3.5 In raising money, local chapters/regions and/or committees are restricted from representing the greater Association, or in charging for activities/benefits generally considered member services. For example, a local chapter may not collect dues, nor may they solicit funds and contributions from local industry, as these activities are reserved for the national Association. Local chapters/regions can hold fundraising events, so long as no member or company is compelled to contribute, and so long as it is clearly identified as primarily benefiting the local chapter.

3.6 A local chapter may hold workshops and mini-conferences, and are permitted to use these activities to generate funds. The Executive Director must approve any contracts for food, meeting space, etc. in advance. Amounts remaining after settlement of expenses will be made available in the individual chapter fund up to the $1000 cap.

3.7 The national Association has historic partners such as SEMI, SEMATECH and the Semiconductor Industry Association (SIA), and will periodically co-sponsor events with associations such as the National Fire Protection Association (NFPA) or American Industrial Hygiene Association (AIHA). Money raised for chapter use in local workshops and conferences will not include third party donations from these types of organizations.

3.8 This policy does not preclude local business or industry from hosting chapter meetings or events, including such incidental donations such as refreshments, meals, or snacks, as well as materials that support smooth conduct of the event such as media and audio visual equipment, etc. To be exempt from this policy, the entire cost of these types of donations must be borne by the sponsoring organization. No cash money may be collected from or donated to the local chapter in conjunction with the donation.