{"id":102189,"date":"2022-09-26t12:40:41","date_gmt":"2022-09-26t16:40:41","guid":{"rendered":"\/\/www.g005e.com\/?p=102189"},"modified":"2024-08-07t23:10:31","modified_gmt":"2024-08-08t03:10:31","slug":"organization-minutes-too-often-overlooked","status":"publish","type":"post","link":"\/\/www.g005e.com\/2022\/09\/26\/organization-minutes-too-often-overlooked\/","title":{"rendered":"organization minutes too often overlooked"},"content":{"rendered":"

we\u2019ve got a 34-point checklist to fix that.<\/strong>
\n\"green<\/a><\/p>\n

by ed mendlowitz
\n<\/i>77 ways to wow! the checklist handbook for advisory services.<\/a><\/em><\/p>\n

corporate, llc, partnership and not-for-profit organizations are usually required to have minutes memorializing certain actions taken by the board of directors or governing body. yet, many do not either because it has never been done, is a bother, is considered not necessary or overlooked through inaction or unawareness.
\n<\/i><\/p>\n

more: <\/b>five cash reports you can\u2019t live without<\/a> | the priorities were backward<\/a> | how to read a financial statement<\/a> | 77 thoughts about client needs<\/a>
\n\"goprocpa.com\"exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n

however, it is something that should be done as a best practice, as recognition that there are non-active stakeholders who need transparency, or as tangible evidence that the actions recorded took place timely. in some instances, the irs looks for minutes as a symbol that the affairs were handled on a businesslike basis or were not one-sided \u201csecret\u201d actions by those in control.
\n
\npreparing minutes causes a formalization of the considerations that go into many important decisions and a second look that i find very helpful, especially for small, closely-held and family-owned organizations. i also find the process valuable because it involves the organization\u2019s accountant and attorney, and it creates value way beyond the relatively small cost of having the minutes drawn up and executed. here is a brief checklist of what should be considered for inclusion in the corporate or organization minutes.<\/p>\n

checklist: 34 items for organization minutes<\/strong><\/p>\n

    \n
  1. were all the owners or board members notified of the meeting, and is there current contact information for each person?<\/li>\n
  2. the prior meeting\u2019s minutes should be accepted.<\/li>\n
  3. officers should be elected.<\/li>\n
  4. the chief executive officer, executive director or managing member should present a summary of the previous year\u2019s results.<\/li>\n
  5. salaries, bonuses and other compensation paid to officers or other high-level personnel should be included in the minutes and ratified.<\/li>\n
  6. accruals of salaries, bonuses and other compensation should be ratified.<\/li>\n
  7. health insurance and medical reimbursement plan (if any) payments should be ratified.<\/li>\n
  8. payments and accruals of pension, retirement or deferred compensation plan contributions and the inclusion of participants in such plans should be ratified.<\/li>\n
  9. benefits paid to or on behalf of officers or high-level personnel should be ratified.<\/li>\n
  10. expenses paid on behalf of an officer or high-level person, or paid as a reimbursement to them, should be ratified.<\/li>\n
  11. the amounts and basis for owner or executive salaries for the current year should be explained and ratified.<\/li>\n
  12. employee benefit plans in effect or to be adopted should be ratified, including expense accountable plans, adoption assistance plans, cafeteria plans, educational assistance plans and nonqualified retirement plans.<\/li>\n
  13. any waived or underpayment of employee compensation amounts should be stated in the minutes.<\/li>\n
  14. the organization\u2019s overtime pay policy should be reviewed to ascertain it is under federal and state wage laws.<\/li>\n
  15. leases between the organization and an owner, manager or director should be reviewed regarding the appropriateness of usage, terms and payment amounts.<\/li>\n
  16. there should be a ratification or appropriate use if the organization provides a vehicle to an employee with verification noted that there is proper insurance coverage on the vehicle that protects the organization.<\/li>\n
  17. ratification and explanations of dividends paid.<\/li>\n
  18. if the corporation has not paid dividends this year, then reasons for retaining the income should be expressed.<\/li>\n
  19. all loans or advances to or<\/strong> from employees in excess of $10,000 (or an amount deemed appropriate) should be memorialized with notes with payment terms, a due date and interest rate.<\/li>\n
  20. organization loans guaranteed by individuals should be recognized at the meeting and included in the minutes.<\/li>\n
  21. the board should approve all charitable contributions in excess of $250 (or other amount) during the year.<\/li>\n
  22. there should be an affirmation that the organization made no political contributions during the year.<\/li>\n
  23. if the organization has more than one owner, there should be a current buy-sell agreement and the values in it should be certified to as being the appropriate values.<\/li>\n
  24. if there is no buy-sell agreement, it should be so stated, and the owners should take immediate actions to procure one.<\/li>\n
  25. if the business has a single owner, the contingency plan in the event of an untimely death or disability of the owner should be reviewed. if there is no such plan, immediate steps should be taken to adopt one.<\/li>\n
  26. all loan agreements and covenants should be reviewed to see if there are any danger points or impending unpleasant trigger points and so noted in the minutes.<\/li>\n
  27. all leases and contractual obligations extending beyond one year should be reviewed for termination date and current appropriateness.<\/li>\n
  28. the minutes should note approval of all ownership redemptions, transfers, recapitalizations, issuance of options, warrants or restricted stock.<\/li>\n
  29. the entity tax status should be reviewed, and potential changes should be reviewed.<\/li>\n
  30. description of any lawsuits against the organization should appear in the minutes.<\/li>\n
  31. purchases of equipment or for any other purpose or contracts in excess of $50,000 (or any amount deemed appropriate) should be approved in the minutes.<\/li>\n
  32. contract terminations should be approved in the minutes.<\/li>\n
  33. disposing of corporate assets in excess of $50,000 (or other amount) should be approved in the minutes.<\/li>\n
  34. delivery of a copy of the minutes to anyone who was supposed to be at the meeting who wasn\u2019t should be indicated.<\/li>\n<\/ol>\n

    many organizations that\u00a0should\u00a0have minutes do not. if the above checklist seems excessive, imagine the position the organization and its managers would be put in if a problem arises with just one of these items. how it would be resolved? would they then have wished that the minutes were prepared timely?<\/p>\n","protected":false},"excerpt":{"rendered":"

    we\u2019ve got a 34-point checklist to fix that.<\/strong><\/p>\n

    by ed mendlowitz
    \n<\/i>    77 ways to wow! the checklist handbook for advisory services.<\/a><\/em><\/p>\n","protected":false},"author":1341,"featured_media":70489,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[1908,3120,3002],"tags":[],"class_list":["post-102189","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management","category-pro-member-exclusive","category-special"],"acf":[],"yoast_head":"\norganization minutes too often overlooked - 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