The Behind the Scenes Work of KPA and KPF

There are many behind the scenes activities happening all of the time to make our organizations run effectively. Earlier this fall we concluded our annual internal audit of the KPA and KPF finances. The audit is conducted by a committee composed of the current KPA Board of Directors President-Elect and three Non-Board KPA members. This year the three Non-Board members were Drs. Norah Chapman, Rae Lyn Glover and Melinda Moore. Also instrumental in the process was Dr. Lisa Steelsmith, our KPA treasurer, and KPA Director of Operations Sarah Burress. The close to 3-hour process involves an orientation and financial overview of our organization followed by the committee members each taking a random month and examining the following:

1. Bank records: The monthly bank statement, a reconciliation summary from Quickbooks and any invoices paid directly through bank transfer or ACH

2. Batch reports: A batch statement summary of all transactions in a single document, Excel files for each day that credit card payments were processed through the website, and PDF transaction reports, containing a summary of transactions by credit card type

3. Credit card records: The credit card statement and receipts for each transaction

4. Retirement account/IRA records for staff

Other records such as fiscal quarter profit and loss statements, balance sheets, and budget versus actual statements were also available, and any months within the fiscal year were available to be reviewed along with the single randomly chosen months selected by each committee member. Throughout the process the committee members consulted with the Treasurer, and the Director of Operations was available to answer questions. After the process was completed, the committee discussed any irregularities, which none were found, as well as strengths, weaknesses and suggestions, which were compiled into a report for both the KPA and KPF boards.

Reviewing the various financial processes, the organization of the financial records and the intentional redundancies, including the yearly internal audits, the periodic external audits, the communication between the Executive Director and Director of Operations, and the regular review of financial records by TaxForce, it is clear that there is considerable accountability and transparency regarding the finances of KPA and KPF. The committee was impressed with the organization and accounting involved in the organizations. They were also struck by the thin margins within which the organizations operate and the thoughtfulness around spending. KPA and KPF really do work to maximize their income to fund the missions of the organizations. The committee members, including myself, were all surprised with the information learned through the audit process and felt that we needed to share more about our finances and processes with the larger membership. This newsletter article is one such attempt to do this.

Several other State and Territorial Psychological Associations have reported they are operating at a deficit and some are experiencing a decline in membership. KPA has continued to thrive at a time when many other associations are struggling. KPA’s and KPF’s successes are due in large part to dedicated leadership, both past and current, and hard-working staff, and an engaged membership. Know that your KPA membership dues, your donations to KPF, your convention fees and your CE programming registration dollars are all carefully budgeted and used intentionally to make a difference especially during these challenging times.