Friendship Force Ottawa Outbound Exchange Treasurers Guide

Transcription

1 Friendship Force Ottawa Outbound Exchange Treasurers Guide This guide is divided into four parts: 1. FFO requirements - what we want you to do to make the Club Treasurer s (CT) job easier 2. FFO Financial Guidelines (what we suggest you do to make your job easier) 3. Refund policies 4. Appendix sample worksheets 1. FFO Requirements Chequing account The exchange will use the FFO Exchange account. This is an account shared by all exchanges. All cheques require two signatures, normally the Exchange Treasurer and the ED. The CT (Club Treasurer) will send a request to our branch of the Bank of Montreal (BMO) to authorize the two named signatories. The two signatories should then arrange to meet with the bank representative to sign signature cards. The Club treasurer will provide the bank card and necessary passwords for on-line access to the account and for ATM deposit and bank statements etc (To gain on-line access to the account go to Sign In, use your ATM card and on-line password to view the account). It will make it easier for you to keep track of cheques, etc. and the CT can see what the opening, closing and year-end balances are. Do not change the PINs! The Club Treasurer needs online access to the account. The CT will also provide the cheque book and the deposit book. The CT will record the cheque numbers issued to each exchange. It is very important that each exchange treasurer records the number of each cheque issued for tracking purposes. Do not deposit cash. If cash is received, replace this with a personal cheque for the amount of cash received and keep the cash. Clearly mark on the cheque, the purpose of the cash received. Concerns have been raised about on-line security. FFO is confident that on-line banking is secure. Only cheques can be written on this type of account; money cannot be transferred or withdrawn. Exchange Journal The ET must maintain a Chequing Account Journal, recording all deposits and cheques (see sample journal in Appendix). This should reconcile with the bank statements. FFO Guidelines Exchange Treasurers Outbound Dec

2 Exchange Income and Expenses The ET must record all income and expenses (see sample record sheet in Appendix). Note: Bank interest earned and the $2.50 monthly service fees during the exchange are not counted as exchange income or expenditure. Always provide the ambassadors with receipts for any money, especially cash, collected by you or any of your committees. These receipts have been used for travel cancellation insurance claims. Keep track of expenses by naming and numbering receipts to correspond to the cheque number and the number recorded in your exchange expenses sheet. Receipts are required for any significant expense. Small expenses for one person can be combined, as a long as a signed list of the expenses is provided. Invoices signed by club members are acceptable to justify the reimbursement of cash payments made by the member on behalf of the exchange. Expense receipts should be numbered and the number recorded in the journal. Surpluses or Deficits An outbound exchange must break even financially. Any shortfall must be collected from the ambassadors participating in the exchange. Any surplus shall be refunded to the ambassadors unless the balance is insignificant, in which case leave the balance in the account. Remember, this one exchange account is used by ALL exchanges, so there will be funds in the account at all times. Keep a detailed record of expenses pertaining to YOUR exchange and balance the income and expenses of your exchange activity. Please ask ambassadors to deposit expense or refund cheques as soon as possible so they can be cleared before the account is passed to the next Exchange Treasurer. Exchange Financial Report The ET must generate a financial report at the end of the exchange and send it to the CT. The report should consist of the journal, the record of income and expenses, and the receipts for expenses. The corresponding cheque number should be written on each receipt. A copy of the report will form part of the report generated by the ED Note: It is not necessary to wait for all the cheques to clear the bank to do the financial record provided you have recorded all income and expenses in the journal. 2. FFO Financial Guidelines Deposits Deposits may be made by deposit book or ATM. Cheque deposits can be made at any BMO ATM and generally this is easier than using the deposit book. However, using the deposit book is an easy way to keep track of the deposits. It is a good idea for both the ET and the ED to have bank cards so either can do deposits if necessary. You don t have to enter the individual cheques when depositing them at an ATM, only the total value. However, it is recommended that you do enter the individual cheques by number since this will reduce errors and acts as a check. Make sure you have recorded the deposits by name and cheque number in your journal so you can keep track of them. Working Capital There are expenditures such as host program fees, travel deposits, etc., that must be paid prior to the exchange. It is easier to set up a working capital fund rather than asking ambassadors to FFO Guidelines Exchange Treasurers Outbound Dec

3 pay these expenses as they are incurred. Ambassadors on an oversubscribed exchange will have paid a $300 assured space deposit that becomes part of the exchange finances, and can be used as working capital. For exchanges where the $300 deposit was not required, the ET may suggest to the ED and group that a working capital fund be set up. Around $200 per ambassador should be sufficient. At the conclusion of the exchange the ET will refund any balance in the fund, together with any money left over from the $35 registration fee, to the ambassadors. This will make you a popular treasurer. Exchange Finances The exchange finances are anything related to the actual hosted exchange. Exchange Income: The main exchange income will be the $35 registration fee paid by the ambassadors. These funds are used to pay incidental expenses incurred in running the exchange. In the event of a double exchange, $35 registration fee per exchange is required i.e. a total of $70. Exchange Expenses: The exchange expenses are typically administration costs such as telephone calls, postage, etc. and for the exchange booklets and any gifts to the hosting ED, etc. Host Club Program Fee: This is the $100 USD fee (or the amount requested by the host club and agreed upon by the exchange committee) per ambassador sent to the hosting club to fund the hosting program. The amount may be increased with the agreement of the hosted club if the proposed program will cost more than $100 USD. The hosting club may also ask for additional funds to cover special events, again with the agreement of the hosted club. In the event of a higher hosting fee being requested, the hosted club should request an outline of the budget and the hosting ET should be prepared to provide this. The hosting club requires the program fees 60 days before the exchange departs. This is to be provided in USD or the local equivalent. This fee is non-refundable once submitted to the host club. The funds may be transferred by money order or bank draft, or by wire transfer. Money orders or bank drafts must be international. Some hosting clubs prefer to receive the funds in USD cash when the exchange arrives. If so, the safest way to do this is to split the funds between all the ambassadors or withdraw it from an ATM at the host club s city on arrival. We recommend this method so that one or two people are not responsible for a large amount of cash. The ET collects the required hosting fees from the ambassadors if they are to send it in a lump sum. It is difficult to determine the Canadian equivalent of USD funds or local equivalent beforehand, so the easiest solution is use the money in the working capital fund to purchase the total hosting fee in USD dollars or local equivalent. There are transfer fees which should be accounted for in your budget. You may be wise to adjust the hosting fee to cover these expenses. FFO Guidelines Exchange Treasurers Outbound Dec

4 FFI Exchange Fee Payment Methods: The $140 USD FFI exchange fee is charged by FFI 60 days before the start of the exchange. It is the responsibility of the ET to ensure the fees are sent to FFI before this date. FFI cannot accept a check issued on a Canadian bank - even if it is in foreign or USD. Unfortunately, the Canadian bank converts the amount written on the check and pays FFI in Canadian currency, and deducts a conversion fee, so in the end, FFI does not receive the amount that is due to them in US currency. So, to avoid confusion, payments from Canada must be submitted in USD, in any of the following methods: a. Individual electronic transfer into FFI account through FFI website using credit card (Visa, MasterCard, Amex). The ambassador submits their individual FFI fee through the FFI website at Payments. Enter the exchange number (e.g. Sweden #11119), then follow the instruction prompts. This is FFIs and FFOs preferred method of payment. Regarding electronic credit card payment, use a comma (,) to separate the dollars from cents, and DO NOT use a period (.) Also, remember that the system will prompt the card holder to a screen showing the amount that you will be charged. Please read this carefully before submitting the payment. There is no need to do any conversion since once you enter the amount; that is what FFI will receive in USD. b. Group electronic submission by Exchange Treasurer using personal credit card followed by reimbursement from Exchange Account. The ET submits FFI fees for all ambassadors through the FFI website at: Payments. Enter the exchange number (e.g. Sweden #11119), then follow the instruction prompts. The ET uses a personal credit card and then is reimbursed through the exchange account by writing a cheque in their name for the appropriate amount (two signatures required). It may be best to wait until close to the 60 day deadline for submitting fees in the event of an inflated US dollar. On the payment screen in the comments, write the number of ambassadors you are paying for: $140 x # of ambassadors plus 1 ED*. (*NB. See note below regarding EDs earned seat). Then in an , provide the FFI Program Services Coordinator, with the complete list of ambassadors names. If this is an oversubscribed exchange and ambassadors have paid $300 to the exchange account, you may take the FFI fee from these funds. If this is a fully subscribed or undersubscribed exchange, ambassadors must provide the ET with a cheque for $140 US equivalent that the ET will then deposit in the exchange account. c. International Money Order in USD. Purchase a money order at any Post Office in US funds made out to FFI and mail this to 127 Peachtree St, Suite 501, Atlanta, GA d. Individual or group wire transfer. Check with your bank to determine your best method for doing a bank wire transfer either through your online banking service or through the bank.. You may find it is much more expensive than using your credit card to submit your fees. e. By telephone to a FFI Staff person. If you are unable to submit your fee online through the FFI website, you can call FFI directly and they will provide a staff person who will enter your credit card and exchange information into their system for you. *Exchange Directors Earned Seat: Exchange Directors devote a great deal of time and FFO Guidelines Exchange Treasurers Outbound Dec

5 effort to planning, conducting and providing leadership throughout the exchange including any unforeseen emergencies. Because of this substantial responsibility, the FFI Fee of $140 US may be discounted from 50 to 100% depending on the number of fully paid ambassadors. It is FFIs decision as to whether or not they apply the 50 to 100% discount to the FFI Fee. For example, the ED may receive a 75% discount for 15 fully paid ambassadors (+1ED), and the percentage increases by 5% for each additional ambassador. If the number has reached the host capacity, then the ED receives a full waiver of the FFI fees. (M. Mwambay April 10, 2012). However, FFO does not authorize an ED to include any other cost of their travel in the exchange fee. You must consult with FFI prior to awarding the ED any fee waiver. Pre/Post Exchange Finances The pre/post exchange finances are anything related to any group travel prior to or after the actual exchange. These finances should be tracked separately from the exchange finances and ideally should be handled separately by a person other than the exchange treasurer. Most of the costs for the group travel will be paid directly by the individual ambassadors. There may be travel deposits, etc. that have to be paid for as a group, in which case the ET could pay them out of the working capital if agreeable. There may also be individual ambassador expenses such as FFO pins that are easier paid out of working capital. If the ET agrees to manage funds for pre/post travel, these expenses should be tracked on an individual basis, and the working capital refunds must be adjusted for each ambassador accordingly. 3. Refund Policies Refunds for Undersubscribed Exchanges. a. The FFO registration fee is refundable before the 1 st day of the 6 th month prior to the exchange month for any applicant wishing to withdraw. b. After the 1 st day of the 6 th month prior to the exchange month, the registration fee is refundable subject to the criteria set out in Section 6 of the Outbound Ambassador Selection Guidelines, less any prorated expenses incurred prior to withdrawal. c. The FFI exchange fee (payable 60 days prior to the exchange) is nonrefundable as per the policies of FFI in Atlanta. d. The Host Club fee (due 60 days prior to the exchange) is non-refundable under any circumstances once it has been transferred to the host club, unless another participant joins the exchange as a repla Refunds requested for any other reason must be approved by the Board of Directors. The following guidelines will apply a. Any member, on written notice to the ED, may have their name removed from the Yellow Standby List and their registration fee will be refunded. b. An ambassador holding an Assured Space may, on written request to the ED (who will consult with the FFI Board of Directors), withdraw and, if at least one of FFO Guidelines Exchange Treasurers Outbound Dec

6 the criteria in Section 6 (Outbound Ambassador Selection Guidelines) has been met, all FFI fees and deposits shall be returned. c. If an ambassador withdraws without meeting the criteria in Section 6, that individual and the ED will attempt to find a replacement from the Yellow Standby List or the membership at large. Once a replacement pays the Assured Space deposit, all FFI fees and deposits shall be returned, regardless of the reason for withdrawal. If no applicant can be found to assume the required responsibilities, the withdrawing member shall forfeit all the fees paid. d. For members who travel on the exchange, the Assured Space deposit will be applied to the fees related to the exchange as agreed to by all members of the exchange and any residual will be refunded by the Exchange Treasurer after the return to Ottawa. e. The FFI exchange fee (payable 60 days prior to the exchange) will be refundable as per the policies set out by FFI in Atlanta. f. The hosting fee (due 60 days prior to the exchange) shall be non-refundable under any circumstances once it has been transferred to the host club, unless a replacement participant joins the exchange. g. Assured space deposits held back by the club from withdrawing applicants will be identified as a line item in the budget and will be used by the club for purposes which the Board of Directors decides upon, and reports thereon to the membership at the end of the budgetary year. Please also take note: This guide and the accompanying guide, FFO Guidelines Exchange Directors Outbound can be found on the FFO website at: Resources/ED Toolbox/FFO Guidelines Exchange Treasurers Outbound and Resources/ED Toolbox/FFO Guidelines Exchange Directors Outbound FFO Guidelines Exchange Treasurers Outbound Dec

7 4. Appendix Note: These samples are from the Excel workbook supplied to the exchange treasurer. Sample Exchange Journal Item Cheque Clrd. Date Item In Out Balance M emo Receipt # # D escription # 1 79 * 14 Nov 08 Opening Balance $ Nov Exchange $35 $ $ Nov 08 3 Exchange $35 $ $ Nov 08 Interest $0.02 $ Dec deposit $300 $4, $5, Dec 08 Interest $0.14 $5, Jan 09 Liza - fee and deposit $ $5, * 22 Jan 09 M aureen Sly $40.00 $5, Sushi * 22 Jan 09 Diane Robinson $ $5, Taste of Japan * 26 Jan 09 Pierrette Benoit $ $5, Can./Jpn. Lapel Pins * 29 Jan 09 Richard Hatherill $ $4, Train booking deposit * 30 Jan 09 Pierrette Benoit $95.86 $4, Tulips Jan 09 Interest $0.24 $4, * 3 Feb 09 FFO $50.00 $4, FFO Lapel Pins Feb 09 Elvira M atthews $1, $5, Post Exchange Tour Feb 09 Frank & M ary M ayda $2, $7, Post Exchange Tour Feb 09 Ginette Bocage $ $7, Post Exchange Tour Feb 09 Glen & Diane Robinson $2, $10, Post Exchange Tour Feb 09 Joan & Conrad Gregoire $2, $12, Post Exchange Tour Feb 09 M arion Dunning $1, $13, Post Exchange Tour Feb 09 M aureen Sly $ $14, Post Exchange Tour Feb 09 Pat Cianflagione $1, $15, Post Exchange Tour Feb 09 Pierrette Benoit $1, $16, Post Exchange Tour Feb 09 Richard & Kathy Hatherill $2, $18, Post Exchange Tour Feb 09 Vic & Bonnie Hudon $2, $20, Post Exchange Tour Feb 09 Liza Zaslavsky $1, $22, Post Exchange Tour * 19 Feb 09 Goway Travel Ltd. $17, $4, Certified cheque Feb 09 BM O $10.00 $4, Certified cheque fee Feb 09 Interest $0.22 $4, * 4 M ar 09 Richard Hatherill $2, $2, x US$100 (Fukuoka) * 4 M ar 09 Conrad Gregiore $75.55 $2, Exchange Booklet M ar 09 Interest $0.12 $2, * 7 Apr 09 Joan Gregiore $31.00 $2, M isc. gifts * 7 Apr 09 Pierrette Benoit $13.00 $2, Replacement for tulip * 30 Apr 09 Frank & M ary M ayda $ $2, Refund of deposit balance * 30 Apr 09 Glen & Diane Robinson $ $1, Refund of deposit balance * 30 Apr 09 Joan & Conrad Gregoire $ $1, Refund of deposit balance * 30 Apr 09 Richard & Kathy Hatherill $ $1, Refund of deposit balance * 30 Apr 09 Vic & Bonnie Hudon $ $ Refund of deposit balance * 30 Apr 09 Ginette Bocage $ $ Refund of deposit balance * 30 Apr 09 Liza Zaslavsky $ $ Refund of deposit balance * 30 Apr 09 M arion Dunning $ $ Refund of deposit balance * 30 Apr 09 M aureen Sly $ $ Refund of deposit balance * 30 Apr 09 Pierrette Benoit $ $ Refund of deposit balance * 30 Apr 09 Pat Cianflagione $ $ Refund of deposit balance * 30 Apr 09 Elvira M atthews $ $15.98 Refund of deposit balance Exchange Opening Balance $10.15 Totals (In & Out) $23, $23, $5.83 Bank Balance $15.98 FFO Guidelines Exchange Treasurers Outbound Dec

8 Sample Income & Expenses Record Exchange Income Exchange $300 Post Total Fee Deposit Exchange Exchange Fee 21 $35 $735 $735 Deposit 17 $300 $5,100 $5,100 Bank Interest $0.74 $0.74 Post Exchange Payments $17, $17,815 Total Income $23,651 $736 $5,100 $17,815 $23,651 Exchange Expenses Exchange $300 Post Incidental Expenses Fee Deposit Exchange Hatherill (postage etc.) -$ $15 Hatherill (misc. & flowers) -$ $92 Robinson (exchange expenses) -$ $161 Japanese Dinner -$ $511 GoWay Post Exchange Deposit -$ $600 GoWay Post Exchange Tour -$17, $17,215 Certified cheque fee -$ $10 Other (booklet, pins, etc.) -$ $554 Wrap-up Meal -$ $285 Fee to Fukuoka $ US 16 -$100 -$1,600 Exch. Rate 6 Mar $ Can. -$130 -$2,080 -$2,080 Total Expenses -$21,523 -$730 -$2,978 -$17,815 -$21,523 Balances $2,128 $5.83 $2, $0 $2,128 US Currency Exchange $ Can. Fee to Fukuoka $2, To Richard Hatherill $2, Exchange rate surplus $ Paid back to exchange $ Balance $0.00 Atlanta Fee $ US $115 Exch. Rate $ Can. $146 FFO Guidelines Exchange Treasurers Outbound Dec