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 The Vice President of Finance is the Elected Officer in charge of chapter monetary and housing functions. His direct reports include the Chapter House Management Committee (and Chair), Food Service Management Committee (and Chair), and Fund Raising Committee (and Chair). He appoints members to these committees and appoints the chairman of each. The Treasurer is also his direct report, but the President, not the Vice President of Finance, appoints the Treasurer.
The Vice President of Finance is more than a treasurer (in a club organization model) he is the CFO (chief financial officer) of the chapter. In this capacity, he is the primary person responsible for financial planning.
Every chapter officer should be involved in budgeting. The Vice President of Finance coordinates that involvement and prepares the final draft budget for approval by the Executive Board and ultimately the chapter membership.
The Treasurer is responsible for the collection of chapter dues, rent and other receipts (such as sportswear and social events). He is also responsible for maintaining the financial records.
The Treasurer should write receipts for all income, even when receiving a check. After all, there is no way to know to what obligation the payment was applied without a receipt so indicating.
The Treasurer should prepare monthly statements that compare actual receipts and disbursements to the budget. A report to the chapter that simply tells them how much is in the checking account is inadequate. For it says nothing about how that balance compares to outstanding obligations.
The Treasurer does not disburse funds. He is responsible for accounts receivable and financial records.
The Vice President of Finance is the accounts payable officer. He disburses funds. He never receives funds.
In this way, these two critical financial duties are segregated, an important fiduciary practice.
The Chapter House Management Committee organizes maintenance of the chapter house, including regular house duties. This committee works directly with the chapter alumni association or house corporation.
In Sigma Tau Gamma (and most other NIC fraternities) undergraduate chapters are not authorized to purchase or lease real property. Chapter housing must be obtained through an incorporated alumni association (generally organized to be exempt under Section 501 (c) 7 of the Internal Revenue Code) or an alumni house corporation (generally organized to be exempt under Section 501 (c) 2 of the Internal Revenue Code or organized as an LLC).
The Food Service Committee organizes the chapter food service, including regular member food service duties. This committee works directly with the chapter alumni association or house corporation. Food service operations are generally regulated by local governments. Often, chapters contract with a commercial food service company to assure the safety and quality of the product. Chapters without a food service should have at least one meal together weekly. Breaking bread together is an important brotherhood building activity.
The Fund Raising Committee organizes chapter fund raising events that supplement the chapter budget. Basic financial obligations should not be reliant on fund raising. Fund raising events may not involve alcohol. They should not involve financial investments drawn from dues income. Rather, they should rely on the considerable manpower resource of the chapter. Cleaning crews contracted to sporting venues and theme parks have proved the most profitable and reliable of chapter fund raising events.
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