Club Leadership Education

Transcription

1 Serving the Children of the World Club Leadership Education Webinar for Club Treasurers Cal-Nev-Ha District of Kiwanis International Presented by: Pete Horton, Greg Mason & Craig Wallace Developed by: Margo Dutton, Pete Horton, Greg Mason, Al Sieczkowski, Craig Wallace and Bob Wikoff

2 Our Agenda The Club Treasurer Accounting Systems Club Accounts Administrative & Service Club Budget Annual Club Audit Tax Issues Legal Considerations Resources

3 Club Treasurer QUALIFICATIONS: A proven leader with the ability to: Coordinate all bookkeeping and accounting for the club and keep club accounts accurate Work closely with the club secretary and president Use Microsoft Office and/or finance software Accounting or bookkeeping experience should be required

4 Club Treasurer RESPONSIBILITIES: Receive funds paid to the club and promptly deposit them in official depositories Make available for inspection by the president, board or any authorized auditors, the financial accounts and records of the club Disburse funds on order of the board of directors Maintain the club financial accounts and records

5 Club Treasurer RESPONSIBILITIES: Ensure all required tax returns are filed Guide the board in preparing an annual budget Make a financial report to the board monthly Prepare and disburse bills to members Reconcile cash accounts monthly Prepare for members an annual statement of income and expenditures

6 Accounting Systems An organized set of manual and/or computerized accounting methods, procedures and controls established to gather, record, classify, analyze, summarize, interpret and present accurate and timely financial data for management decisions Select appropriate system based on the size of your club or foundation

7 Accounting Systems REQUIREMENTS: Identify all sources of income Identify all disbursements Permit the accurate billing of members Report the financial standing of each member

8 Accounting Systems - Choices Spreadsheets Quicken Other Personal Financial Software QuickBooks

9 Spreadsheet A basic set of records can be maintained Should only be used for a very small organization with minimal number of transactions

10 Spreadsheet Advantages Cost and flexibility If you own spreadsheet software (i.e., Office), no need to purchase software Create a spreadsheet to meet the needs of your club

11 Spreadsheet Disadvantages No controls for balancing transaction activity No predesigned accounting reports Errors in formulas / missing information result in unreliable financial reporting Additional time required to create basic financial statements or budget reports

12 Quicken (or other personal finance software) Commonly used personal finance program Provides a cash basis accounting system Limited budgeting capabilities

13 Quicken Advantages Relatively inexpensive (currently $60-$100 depending on features) Basic accounting controls Easy to learn features Reconcile bank accounts, track investments, print checks and perform basic accounting functions

14 Quicken Disadvantages Does not provide an accrual basis accounting system Cannot track accounts receivable or accounts payable Above features more important to larger organizations

15 QuickBooks Most commonly used software for small nonprofit organizations Provides features necessary for accrual basis accounting reports Many standard financial and transaction reports A/R and A/P can be used to prepare more reliable financial reports

16 QuickBooks (cont.) Budgeting can be set-up to monitor expenses Allows filtering of data for better analysis of expenses or revenue Subaccounts and/or class tracking allows tracking expenses Invoices or statement charges can be used for billing monthly dues

17 QuickBooks (cont.) Recurring transactions can be memorized and recorded automatically Monthly statements can be delivered electronically or printed for mailing Data entry streamlined using the auto recall Reminders can be set for month end or other recurring journal entries

18 QuickBooks Versions Various versions ranging from $100 to $400 Online Simple Start ($12.95 month): Provides basic features Free version available to sample by downloading Pro ($230): More standard reports and can be used in a multi-user environment Premier ($400): Additional accounting features Non-profit version includes features exclusive to nonprofit organizations with financial reports more specific to non-profit reporting requirements

19 Getting Started with QuickBooks Can convert data and transfer information from: Quicken PeachTree Office Accounting Upgrading from other versions of Simple Start or QuickBooks Pro is quick and easy Low cost at for 501(C)(3) Premier $45 Admin fee

20 Club Accounts Every club must have a minimum of two accounts Administrative Service Two bank accounts are strongly recommended

21 Administrative Account Club dues, membership fees for new members Club meeting meals Events where only club members participate

22 Service Account Receive income from fundraising projects Revenue received from the general public Contributions for the service activities of the club Only used for charitable, educational, religious and community improvement activities

23 Service Account (cont.) Covers expenditures related with sponsorship of a Kiwanis Service Leadership Program Clubs may pay insurance premiums from either the administrative or service account

24 Club Budgets Required by club bylaws Club Board must adopt by October 15 Separate budgets are required

25 Club Budgets Budget process should start early i.e. June Committee chairs should be involved Budgets should reflect the club s service goals and objectives

26 Club Budgets Budgets should be shown in each report of revenue and expense to the Board - monthly Annual report to the club should include the annual budgets

27 Why an audit? Annual Club Audit Required by the club bylaws Protect the club from possible misuse of funds and inadvertent errors Protect treasurer from false allegations

28 Annual Club Audit Who should perform the audit? The Board of Directors selects the auditors Does not need to be a Certified Audit May not include the Secretary or Treasurer May include incoming Treasurer May include anyone from the club with the interest to work on the audit

29 Annual Club Audit Treasurer s Responsibility Provide all requested financial records including: Check Registers Receipt registers or documentation Financial Statements Budget Journal entries Other documents as requested

30 Annual Club Audit What is a club audit? Review of the financial records including: Checks Compare to receipts or Board minutes for reasonableness Ensure expenditures are made in accordance with budgets or board action, based upon club policy

31 Annual Club Audit What is a club audit? (cont.) Review of the financial records including: Cash Receipts Review records for proper recording of receipts Recommend cash always be counted by two people; Check for proper cash collection procedures

32 Annual Club Audit What is a club audit? (cont.) Review of the financial records including: Bank reconciliations Confirm that the reconciliations are completed on a timely basis Review reconciliations for unusual transactions

33 Annual Club Audit What is a club audit? (cont.) Review of the financial records including: Accounts Receivable records Review invoices, credit memos to insure individuals are being billed properly according to club policy Review posting of payments

34 Annual Club Audit What is a club audit? (cont.) Review of the financial records including: Other Review Journal Entries posted for accuracy and reasonableness Review for voided transactions to insure proper recording of transaction

35 After the Audit Annual Club Audit Chairman of the Committee reports findings to the Board of Directors Corrective action as necessary

36 Tax Exempt Status for Clubs Kiwanis Clubs are 501(c)(4) non-profits Donations may not be deducted as a charitable gift Alternative is a Club Foundation

37 501(c)(3) Club Foundations Will normally replace a club s service account Contributions tax deductible Corporate & government sponsors IRS Approval? Application needed Filing fee up to $850 Cyber Assistant $200 (not yet available)

38 Tax Issues ALL Kiwanis Clubs Must File a Form 990 Form 990-N (Electronic) if equal to or <$50,000 gross receipts Due February 15 Check Revocation of Exemption at: Form RRF-1 (All California clubs) Due February 15

39 Tax Issues All California Clubs Must File w/ftb Form 199 if Gross Receipts >$25,000 Form 199-N if Gross Receipts equal to or < $25,000

40 Tax Issues All Kiwanis Clubs Must Have an EIN & Report EIN to Kiwanis International Same Rules for Key Clubs & Circle K Clubs - Unless Funds are Controlled by the School

41 Tax Issues Clubs have no exemption from sales tax in California Must Register with the Board of Equalization Non-profit resources available at:

42 Tax Issues Raffles are generally illegal in California Club foundations & 501(c)(3) organizations may register a raffle for charitable purposes FAQ s & registration resources available at:

43 Tax Issues Any fundraising solicitation by or on behalf of Kiwanis clubs must include an express statement that: Contributions or gifts to the club are not deductible as charitable contributions for federal income tax purposes." The statement must be in a conspicuous and easily recognizable format on all solicitations, whether in written or printed form, by television or radio, or by telephone.

44 Dues & Fees Kiwanis International Graduated Enrollment Fees Replaced new member add fee Cal-Nev-Ha Graduated Enrollment Fees

45 Kiwanis International Cal-Nev-Ha Dues Rates for $ $ Member Add Month: Graduated New Member Fees Graduated New Member Fees October $ $ November $ $ December $ $ January $ $ February $ $ March $ $ April $ $ May $ $ June $ $ July $ $ August $ $ 8.00 September $ 6.00 $ 4.00

46 Dues & Fees Kiwanis dues All billings based on Sept. 30, 2012 membership All Payment due dates will be November 30 th for

47 Membership Billing Annual Billing Rosters mailed to clubs which used paper forms in 2011 Update as required - online Adds and deletes by October 10 th to change billing Return to KI not later than October 10 Invoice based on updated roster/online adds & deletes

48 Legal Considerations Clubs must be incorporated Avoids personal liability on the part of club members Secretaries should check corporate status

49 Legal Considerations Suspended clubs must be revived Corporate-Suspension.pdf Sign contracts ONLY with approval of Club Board of Directors (i.e. Installation Dinner at Hotel or Restaurant) Obtain background checks for members working with SLP & Youth

50 Show Me the Money! Unclaimed Property held by the State Hawaii Dept of Budget & Finance Nevada State Treasurer UCP search at: California Controller UCP search at:

51 CNH Dateline June 22, 2012 Kiwanis Dear Pete, Last chance to save yourself $20 by registering for the 92nd Annual District Convention - but you need to act before Sunday, June 24th. Register online now. And when making your plans for District Convention, be sure to set aside some time to visit California's Great America. Discover why California's Great America is Northern California's best choice for family fun and adventure! There's something for everyone from mild to wild! Click here to order your discounted tickets today! Become a Convention Advertiser, Sponsor or Exhibitor Hurry! Time is running out to become a convention advertiser, sponsor or exhibitor. Convention ads and sponsorship applications In This Issue Become a Convention Advertiser, Sponsor or Exhibitor Last Chance to Nominate Your Athlete of the Year! Club Election Reports Past Due Summer Fun Means More Injuries to Children Recognition Opportunities Like Us on Facebook! The Cal-Nev-Ha District is now on Facebook. 297 people "like us"

52 Resources District Office Kiwanis International Kiwanis x411 Webinar PowerPoint KI s Webinar Library Resources online at Box.net pete@cnhkiwanis.org

53 Questions?