There are clear reasons why ASQ has to move from the status
quo.
If ASQ is simply going to take upon itself
the burden of administering the finances for each of its member units, that will serve the membership and limit the risks of inappropriate
allocations.
If ASQ perceives member unit money to be its
operational capital and prevents the distribution back to the member
units, this is a risk, particularly if the member unit has surplus
funds beyond what it needs to operate for the next 1-2 years.
ASQ HQ should demonstrate its
capability to meet reasonable service levels for basic regular transactions
before embarking on a major transformational activity that will cause even more
delays and disruptions. Transformations require a stable
baseline against which to evaluate and assess the positive or negative impacts
of applied changes. Some immediate concerns include:
The
new ASQ organizational structure proposed for the transformation cannot be realized unless
ASQ is prepared to do one of two courses of action. Either:
- ASQ and the BoD have to dissolve all member units and reform them in a new
configuration, or
- ASQ HQ is required to secure explicit agreements 1 by 1 with every
single division and section, and come up with workable and palatable financial
expectations and reporting commitments.
The applicable policy, G42 Joint Activity of
Society and Member Units, has not been updated since 1998. Even if it
is not directly applicable to internal organizational transformation
activities, it offers a documented precedent demonstrating the proper levels of
diligence, fiscal restrictions, and reporting to membership needed between ASQ
and its Member Units when pursuing a joint initiative.
Summary
of pertinent ASQ governing documents and clauses affecting and affected by
Transformation
BYLAWS
2.1.4,
2.3.5, 3.4.4, 3.5.2, 4.5.2, 4.5.3, 4.5.5, 9.1.2, 9.3.3,
SECTION
S
02.00 Revision A – 03/01/13 Section Maintenance
4.8.3,
4.9.3, 4.9.4
S
04.00 Revision H – 11/03/16 Section Internal Controls and Financial Reporting
3.3.4.1,
3.6, 3.6.1, 3.6.2, 3.2.6.4
DIVISION
D
01.00 Revision A – 4/27/06 Division – Operations and Governance
4.5.3,
4.5.10,
D
04.00 Revision B – 05/05/01 Division Treasurer & Auditing Committee
Guidelines
4.2.1.1
FINANCIAL
F
10.02 Revision M – 05/07/15 Membership Dues Allocation to Member Units
3.1,
3.2.1, 3.4
GENERAL
G
42.00 Revision A – 5/02/1998 Joint Activities of Society and Member Units
4.3.1,
4.3.2, 4.9.1, 4.9.2, 4.10
Overall
summary and takeaways
Transformation
aspires, among other things, to move the treasurer function from individual ASQ
member units to connected centralized entities:
Based on current Transformation Proposals:
- Geographic Community
Regional Centers (controlling Member Units: Sections, Sub-Sections,
Student Branches)
- Market Segments
(Controlling Member Units: Divisions, Technical Committees)
However
this transformation conflicts with current clauses and provisions of ASQ bylaws
and policies. Certain facts emerge:
- Member units reflect the
organizational entities which ASQ members choose to affiliate and support
with membership, voluntary involvement, in-kind donations, and their own
personal reputations.
- Financial assets within
the ASQ member units are Society property, and no individual member can
make a claim on these assets. When the Member Units are dissolved,
funds or assets remain with the Society.
- Member Unit dues are
collected by the society and disbursed to the member unit.
- Unless Member Units are
dissolved, the assets remain within their financial stewardship, and ASQ
is required to continue with monthly allotments based on the membership
levels.
- Since Transformation
jointly involves the Society and Member Units, explicit financial
arrangements must be determined and agreed in advance by all affected
Sections
- Sections receive
allotments and are required to maintain and make available the section
operating budget to members and ASQ.
- Unless the section is
dissolved, ASQ Financial Management can only have view access, or hold the
funds until transfer to a new set of sectional leaders.
Divisions
- Divisions receive
allotments, less any fees owed to the Society
- Only when the division
is dissolved are the funds returned to the Society. Otherwise the
Division receives the allotments on a monthly basis.
Finance
- Member Units receive
allocations per member according to ASQ policy F10.02. This can be
changed by vote of BoD.
- $18.25: Sections
- $9.00: Divisions and
Forums
- $1.25: Section Affairs
and Technical Communities Councils (SAC/TCC)
General
- Transformation activities
could be governed using Joint Activities of Society and Member Units
- Fiscal arrangements
(allocation of expenses, distribution of revenues, etc.) must be fixed n
writing in advance, and discharged as agreed by the sponsoring groups.
- Financial reports must
be communicated to members and must include income, expenses, income,
assets, accounts payable, accounts receivable, liabilities.
- If the joint activity
requires a variance to the Society budget, the Office of the President’s
approval is required.
Summary
by section
BYLAWS
2.1.4.
Groups of members may apply for recognition as Member Units of the society as
specified in the Policies.
2.3.5
Members, voting and nonvoting, may not make any claims against, or have any
rights or interests in, Society property.
3.4.4
No part of ASQ’s net earnings or assets shall accrue to the benefit of any
private individual or other person having a personal and private interest in
ASQ’s activities.
3.5.2
Financial reporting for the activities of all Member Units … rolled-up into a
consolidated financial statement for the Society as a whole.
4.5.2
Any Member Unit dues are collected with Society dues, then disbursed to the
Member Unit.
4.5.5
When a Member Unit is dissolved, any funds or assets remaining after discharge
of all debts and obligation shall remain with the society.
9.1.2
Bylaws may be amended with a vote of at least three-quarters of the members
present.
9.3.3
Amendments approved by the BoD shall be effective as determined by the BoD, and
included in subsequent publications of the Bylaws.
SECTION
S
02.00 Revision A – 03/01/13 Section Maintenance
4.8.3 A portion of the annual membership dues paid to
the Society by members affiliated with the section will be allocated and paid
to the section for use as approved by the Leadership Committee, subject to
section and Society governing policies.
4.9.3 The section will create an operating budget in
conjunction with its preparation of the annual business plan. The section will
make the section operating budget available to all members in the same
manner in which it makes the annual business plan available to members. The
operating budget will serve as a planning document defining projected section
expenses and revenues for the upcoming year.
4.9.4
The section will create an annual report that includes information regarding
the section's membership numbers, financial performance, and progress toward
annual goals as specified in the annual business plan. The annual report will
contain membership numbers, including at a minimum, the total number of section
members at the beginning and at the end of each fiscal year. Financial performance items detailed in the annual
report will minimally include total revenue and expenses of this section for
each fiscal year. The annual report will be provided to the Society upon the
Society's request. The section will make such annual report (or a summary)
available to all members in the same manner in which it makes the annual
business plan available to members. The report need not be lengthy or
exhaustive.
S
04.00 Revision H – 11/03/16 Section Internal Controls and Financial Reporting
3.3.4.1 ASQ HQ collects annual dues from the members
directly for the sections and remits monthly to each section treasurer for dues
received during the previous month. Membership numbers and dues
allotment totals are provided to the section on a monthly basis to those
volunteers designated with access to the database. The section treasurer maintains the record of allotments received from
dues.
3.6 The section shall provide access to all bank
accounts and monetary instruments to ASQ Financial Management in the following
manner;
3.6.1 For all sections ASQ Financial Management
should have view access to these accounts. The purpose of this would be
to cross check balances and reconcile reporting differences.
3.6.2 ASQ Financial Management representative shall
be added as a signatory to all accounts if any of the following occur:
3.6.2.1
The Section is unable to identify to ASQ its Section Chair and Section
Treasurer within 30 days after the start of their annual term;
3.6.2.2
The Section is unable to submit its annual Financial Report within 90 days of
its due date; OR
3.6.2.3
The Section is unable to submit its Quarterly Financial Report within 90 days
of its due date for two consecutive quarters.
3.6.2.4 The access to the account in this manner
shall only be used in the following manners;
3.6.2.4.1 ASQ Financial
Management to transfer ownership and access to a new set of sectional leaders.
3.6.2.4.2 Access to Society
funds in the event of a dissolved section.
3.6.2.4.3 Access for
reporting needs.
DIVISION
D
01.00 Revision A – 4/27/06 Division – Operations and Governance
4.5
Fiscal requirements
4.5.1
Division fiscal years will coincide with those of the Society.
4.5.2
Each Division will charge member dues as specified in Society policies and
procedures. Changes to Division dues will be made in accordance with Society
policies and procedures.
4.5.3 Division dues may be collected with Society
dues and then disbursed to the Divisions. The Society will assess applicable
fees for each collection as specified in applicable Society policies and
procedures.
4.5.10 When a Division is dissolved, the dissolution
will be in accordance with Society policies and procedures, and any funds or
assets remaining after discharge of all debts and obligations will remain with
and be transferred within the Society as determined by the Board of Directors.
D
04.00 Revision B – 05/05/01 Division Treasurer & Auditing Committee
Guidelines
4.2
The division should maintain a sound financial management system that utilizes
the following guidelines:
4.2.1
Receipts and collections
4.2.1.1 Headquarters collects annual dues from the
members directly for the division and remits monthly to each division treasurer
for dues received during the previous month.
FINANCIAL
F
10.02 Revision M – 05/07/15 Membership Dues Allocation to Member Units
3.1
Allocation of Dues
3.1.1
Base allocation per paid member (excluding students) from annual established
dues rate:
|
Member
Community Use Amount
|
|
|
Section:
Section Operations
|
$18.25
|
|
Section
Affairs Council: SAC Fund (travel and special projects)
|
$
1.25
|
|
Division:
Division Operations
|
$
9.00
|
|
Technical
Communities Council: TCC Fund (travel and special projects)
|
$
1.25
|
|
Forums:
Forum Operations
|
$
9.00
|
3.2
Change of Base Dues Allocations
3.2.1
Requests for changes to the base dues
allocation amounts can be made to the BOD as part of the Society’s annual dues
review in accordance with policy F 10.00.
GENERAL
G
42.00 Revision A – 5/02/1998 Joint Activities of Society and Member Units
4.3
Society joint activities must comply with fiscal restrictions described below:
4.3.1 Allocation of expenses, distribution of excess
revenues, and responsibility for deficits will be fixed in writing in advance
of the joint program and will be discharged exactly as agreed by the sponsoring
groups.
4.3.2 Joint programs will be closed with a fiscal
report to the members. The financial report must be certified by the Auditing
Committees of the sponsoring groups and must include:
4.3.2.1 An income and expense summary
4.3.2.2 Summary of any payments or income received
made in advance
4.3.2.3 Accounts receivable
4.3.2.4 Current assets
4.3.2.5 Accounts payable
4.3.2.6 Current liabilities and balance sheet
4.3.3 Agreements will be completely discharged by the
end of the Society fiscal year wherever possible. If it cannot be
completed for the end of the fiscal year, a special auditing committee for the
joint program will be formed to audit the end financial report and will be
composed of one member of each sponsoring group. The committee will review the
end financial report.
4.9
The Community Care manager will review:
4.9.1 Joint activity plans for compliance with
requirements specified in the Society Bylaws, policies and procedures, and
appropriate division and section bylaws within 10 business days.
4.9.2 MOUs for compliance with legal restrictions
regarding the Society’s 501(c)(3) status and fit to basic model MOUs. Any MOUs
that exceed the basic model may be submitted to legal counsel for review.
4.10 If participation in a joint activity requires a variance
to the Society budget, Office of the President approval is required.
