General Treasurer Information
The USMS House of Delegates has included financial guidelines for the LMSCs in the USMS Financial Operating Guidelines (FOG). A summary of FOG financial requirements, IRS requirements, and financial recommendations is listed in the USMS Guide to Operations.
LMSCs vary greatly in size and level of banking and other financial activities, so not all fit into the same mold. At the same time, LMSC treasurers perform an important and complex function. Good accounting practices and knowledge of USMS's financial policies for LMSCs are vital to an LMSC’s financial health.
Bonding insurance is carried by USMS, and coverage extends to the LMSCs. However, coverage requires that each LMSC produce an annual financial statement and that annually an internal review of the LMSC’s records is performed. Therefore, your LMSC must meet these requirements to ensure its coverage under the USMS bonding policy.
LMSC Financial Requirements
- Each LMSC shall produce an annual financial statement consisting of at least an income statement and a balance sheet, based on sound accounting principles. LMSC financial statements may be prepared more often than once per year for LMSC use. See the sample financial statements in the Guide to Operations.
- As required by the USMS Code of Regulations and Rules of Competition, a copy of each LMSC’s annual financial statement must be sent to the USMS National Office within 4 months after the end of the LMSC’s fiscal year. This financial statement should include an income statement with itemized revenues and expenditures and a balance sheet.
- The same person shall not be both Treasurer and Registrar.
- All checks $5,000 and over must have two check signers. This is a Bonding requirement.
- The bank reconciliation must be completed by someone other than the Treasurer. This is a Bonding requirement.
- The LMSC shall not commingle funds with any other legal entity.
LMSC Financial Recommendations
- Each LMSC should maintain financial statements and records, including receipts, bank statements, invoices, and other supporting documentation for a minimum of 3 years and possibly for as long as 7 years after the tax filing deadline for the year.
- Each LMSC should use the same fiscal year as USMS, which is the calendar year.
- Each LMSC’s financial records should be reviewed occasionally by someone other than the LMSC’s Treasurer. Such review to include:
- Verification of bank balances
- Sample review of revenue
- Review of expense documentation
- Common stocks, preferred stocks, option devices, obligations denominated in foreign currencies, and derivative products are not considered appropriate financial instruments for USMS or any of its LMSCs.