Money Matters
Money. It’s a complex subject to discuss. It’s essential to make sure you have the proper checks and balances in place to ensure finances are managed prudently.
Money matters. Your money matters. My money matters. Your company’s money matters. More importantly, AATC members’ money matters. It’s kind of a big deal. Managing AATC members’ funds in a trustworthy and dependable way is AATC leadership’s top priority.
AATC members entrust AATC leadership and staff to manage our members’ funds (dues, sponsorships, registration fees, forms purchases, and donations) in a prudent, ethical, and legally sound manner. Sound fiscal policies and financial-management practices ensure that the monies our members invest in AATC services and programs are allocated and expended for the sole benefit of AATC.
As with every organization, to perform proper due diligence, an audit is necessary to ensure compliance in all areas of the business. It’s also an excellent opportunity to discover ways we can manage the money better moving forward.
AATC’s Board of Directors and professional staff give top priority to this immense and vital task. In addition, AATC leaders adhere to fiduciary duties to ensure that all decisions made are for the financial benefit of the members, rather than serving their own interests. This oversight occurs through independent annual financial reviews or a biennial audit and monthly during the AATC Board of Directors meeting.
Beginning in 2020, we moved our accounting systems to a streamlined program that allowed us to be inclusive of all our programs in one universal platform enabling our team to manage our finances with more reporting capabilities, and more importantly, transparency.
One of the requirements for AATC to maintain its National Apartment Association (NAA) charter, AATC must perform either an annual financial review or a biennial audit. For 2021, AATC leadership chose an audit.
Great news! We are happy to report that, once again, AATC has stayed true to its fiscal responsibility and integrity by maintaining a clean audit report. We were also able to learn about opportunities to make our financial bookkeeping even more efficient moving forward.
AATC volunteer leaders and professional staff operate the association with the utmost integrity and transparency. This audit validates our steadfast commitment to GAAP accounting and fiscal management practices. In addition, the audit reaffirms AATC’s commitment to sound financial controls and reporting. More importantly, this audit reassures our members that AATC operates professionally, openly, and honestly.
Big thank you to 2021 AATC Treasurer Patty Utley (BH Management) and AATC staff members Sheila Wiggin and Donna Merrill for all their demanding work on this audit. Excellent job!
Each month, the AATC Treasurer, in consultation with the staff, reports AATC’s financial position (balance sheet, budget vs. actuals, reserve allocations. accounts receivable, fund balances, etc.) to the AATC Board of Directors for review and approval.
AATC is a 501 c (6) non-profit organization. Non-profit is AATC’s tax status—not our operating philosophy. AATC leaders plan and budget to have a positive annual NOI; however, unlike for-profit companies, AATC cannot distribute our profits to our members. Instead, we allocate our profits to a reserve account. Standard fiscal management practices recommend that non-profits maintain a minimum restricted reserve (i.e., savings, rainy day fund, or dedicated fund) equivalent to six months of operating expenses. In other words, the non-profit could receive zero revenues and still operate for six months. AATC’s reserves, including proceeds for the sale of our building, exceed this standard.
Thank you for investing in AATC.
For additional information on AATCs fiscal management, reach out to the association’s interim CEO, Perry Pillow, at ppillow@aatcnet.org.
