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Change to STC's Fiscal Year to Improve Financial Management
Published
2008, Q1 (June 18, 2008)
By W. C. Wiese, STC Treasurer

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Over the past two years, the STC Board of Directors has recognized that the Society’s budget cycle was inefficient, driven by the need to make a community funding commitment to the chapters during the annual conference. This, in turn, required the Board of Directors to pass a preliminary budget in May and then redo it in the fall after year-end revenues were reported. Two of the Board’s three face-to-face meetings were being spent on adopting a budget.

Now that STC continuously sends member dues payments to the chapters, the opportunity to look at changing the Society’s fiscal year became available.

At the January 11, 2008, STC Board meeting, Andrew S. Lang, CPA, a recognized expert in the area of financial management for associations, strongly agreed that STC should change its fiscal year. Lang confirmed similar recommendations from STC’s internal accountants and external auditors and noted that, while there would certainly be some disruption during the transition period for both STC and its chapters, the resultant increase in fiscal control was so significant that the fiscal year should be changed to January 1 — December 31.

STC receives most of its revenues in the first half of the year. This change will allow management more ability to monitor spending to reflect projected revenues.

(Read the February Tieline article "Change to STC's Fiscal Year to Improve Financial Management" (http://www.stc-cdx.org/node/852) for more about the rationale for this change and its impact on STC's chapters.)

Please contact Evelyn McCamey, Community Relations Manager, at +1 571-366-1919 and evelyn dot mccamey at stc dot org with any questions. End of article.

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