HANDBOOK FOR TREAURER 2014 C Auditors Office, Level 6, Holme Building Ph: 9563 6140 or 9563 6104 auditors@usu.edu.au
HANDBOOK FOR TREAURER 2014 CONTENT Part 1: GETTING TARTED... 1 INTRODUCTION... 2 TARTING A NEW CLUB... 2 HANDOVER... 3 OCIETY CHEQUE IGNATORIE... 3 INTERNET ACCOUNT... 4 DEVELOP AND MAINTAIN A OCIETY PROCEDURE MANUAL... 4 Part 2: BAIC BOOKKEEPING... 4 INCOME... 5 IUING INCOME RECEIPT... 5 RAFFLE BOOK AND TALLY HEET... 6 RECORDING INCOME... 7 AUDIT UBMIION FORM... 7 ONLINE YTEM... 8 RECORDING EXPENE... 10 CAPITAL EXPENDITURE... 10 REIMBUREMENT YTEM... 10 CAH FLOAT... 11 ACCOUNTING FOR DOCUMENTATION CORRECTLY... 12 BANK ACCOUNT AND RECORD... 12 FINANCIAL TATEMENT... 13 BANK RECONCILIATION... 14 DONATION... 14 Part 3: FINANCIAL MANAGEMENT... 15 BUDGET... 15 JOINT EVENT... 15 PONORHIP AGREEMENT... 16 C FUNDING... 16 Before an event... 16 After the event... 16 UNIVERITY OF YDNEY FUNDING... 16 CAPITAL EXPENDITURE AND MERCHANDIE... 17 BACKUP... 17 Part 4: REVUE... 17 Part 5: TAXATION... 18 NON-PROFIT ORGANIATION... 18 GOOD ERVICE TAX (GT)... 18 Part 6: AUDITING WHEN DO YOU HAVE TO UBMIT YOUR CLUB AUDIT?... 19 WHAT DO I NEED TO DO BEFORE UBMITTING THE FINANCIAL RECORD?... 19 AUDIT REPORT... 20 INACTIVITY... 21 Part 7: REOURCE... 22 CLUB AND OCIETIE OFFICE CONTACT... 22 C AUDITOR... 22 APPENDICE... 23 GLOARY OF TERM... 36
HANDBOOK FOR TREAURER 2014 Part 1: GETTING TARTED Welcome to the Club and ocieties Program! One of the UU objectives is to ensure that financial support provided to clubs societies is used to properly promote the social and cultural activities on campus. This Handbook is designed to assist Treasurers to operate a simple financial system in order to manage ociety finances efficiently and effectively. Treasurers and Executive Members should ensure that they are familiar with the contents of this Handbook. All sections of this Handbook are also applicable to Revue Treasurers except for the UU funding process and the Cashbook template. Revue Treasurers should check with the Revue Coordinator located at the Programs Department, Level 1, Manning House regarding any additional information required. The Orion Online Portal and C Office are also good sources of information. For any organisation to operate effectively it is imperative that financial records are up-to-date and maintained regularly throughout the year, so that Treasurers can: Plan for and ensure there is adequate funding for events Confirm whether any events have been financially viable. Please take the time to read this Handbook and ensure that the club has a good financial system set up that benefits the Executive, the society members and the UU. At the end of the club s financial year, Treasurers are required to submit the financial records of the Club to the UU for audit purposes. An Audit is an independent review of the financial operations of the club in order to report to the Members and the UU, whether the society has been operating within its constitution, the C Guidelines and general standards of accounting. If the Audit opinion is unsatisfactory, the re-registration of the society may be at risk. As a club Treasurer, you do not need to be a financial expert to be able to do a great job! Briefly, the Treasurers responsibilities are: Keep accurate, complete and legible financial records Budget for society events ign and deliver cheques Deposit receipts ubmit financial records for audit at the end of the financial year. All the information required is included in this Handbook. However Treasurers should not hesitate to contact the C Auditors for assistance on all financial matters. Treasurers should be aware that they are responsible for the society s accounting records for the whole financial year. Upon accepting the role of Treasurer at the AGM two months after the financial year, this responsibility therefore effectively covers 14 months. It s important that when a new treasurer starts, a proper Handover meeting is held. 1
HANDBOOK FOR TREAURER 2014 INTRODUCTION A Treasurer has a duty to act honestly and with due care and diligence at all times. By assuming the role of Treasurer, the members of the club have entrusted you with the responsibility of handling club funds solely for the benefit of club members and to ensure the club continues to function successfully. There are 13 Golden Rules to assist Treasurers and if you follow to these basic rules, your role as Treasurer will be simplified, as well as rewarding. Treasurer s Golden Rules 1 Funds used only to meet the society aims and objectives 2 Cashbook to reflect all financial transactions 3 Deposit all cash into the society bank account promptly upon receipt 4 Issue a receipt for all income/funds received. 5 Cash collection forms to be signed by two executives. 6 The Audit ubmission form should match the total income from events. 7 Pay expenses using society cheques (NEVER in cash). 8 Do not issue or pre-sign blank cheques. 9 Ensure all deposits/cheque amounts match the amounts per Bank tatements. Do not aggregate individual amounts in the Cashbook. 10 Obtain a tax invoice for all expenses and payments, wherever possible. Credit card and EFT receipts are not acceptable documents because of lack of information. 11 Prepare Reimbursement forms for all payments which should be referenced to cheque numbers and relevant UU Funded events. 12 Classify all transactions in the Cashbook by event or activity. Not by venue, food, drink etc. 13 Prepare bank reconciliations regularly to determine current balance of funds and to avoid risk of bank account going into overdraft. TARTING A NEW CLUB As the Treasurer of a new club, it s good to familiarise yourself with this handbook, it will be a great point of reference during your time as a treasurer. The first task as Treasurer will be to open a bank account. In order to open the bank account, a letter of registration from the C Office is required; this will need to be lodged with the bank. Organise three Executives, usually the President, Treasurer and ecretary to be appointed bank account signatories. All three Executives will need to go to the bank with 100 points of ID and complete the necessary paperwork. Only a cheque account can be opened and no key cards or credit cards should be issued or accepted. As per the C Regulations, only use the National Australia Bank or the Commonwealth Bank of Australia Branch 2
HANDBOOK FOR TREAURER 2014 located on campus (Wentworth Building). Confirm with bank to ensure that there are no ongoing monthly bank fees on the account and if there are any problems; contact the C Office. Once the bank account is active, you may commence recording the financial activities of your club as outlined in this Handbook, new clubs will also receive $250 of start up funding from the UU. HANDOVER It s important to get the following from the out-going Treasurer, from the beginning of the financial period: Cheque book(s) Deposit book(s) Receipt book(s) All documents supporting the income and expenses Bank statements Cashbook Year to date (Excel file) Any other financial records from previous year Procedure Manual. Handover meeting with the out-going Treasurer Make sure that a meeting is held with the previous Treasurer as soon as possible upon your appointment as Treasurer since the new Treasurer is responsible for the complete accounting period. The meeting should include the following activities: The previous Treasurer should explain the financial position of the club and how it operates Discuss any problems encountered by the previous Treasurer View and discuss the types of Cashbook transactions and relevant classifications Ensure that you have all the necessary invoices and receipt books to support the Cashbook entries for the complete financial period Discuss the previous Audit Results and Auditors recommendations and any actions required to be taken The handover meetings are really important and it s a good idea to get the contact details of the out-going treasurer in case you need information in the future. If you cannot contact the previous treasurer, you can contact the C office or auditors for more assistance. OCIETY CHEQUE IGNATORIE Gaining control of the society bank account can take some time to complete. How to change the club bank account signatories: Decide on the new cheque signatories; must be the Treasurer, and 2 other Executives Obtain an authorisation letter from the C Office reflecting the names of the new signatories. Arrange a time for the new cheque signatories to visit the bank together, with each person bringing 100 points ID. (Note below). Collect a Change of signature form from the bank to read and understand the responsibilities of being a cheque signatory. Change the mailing address for the bank statement. Note: 100 Points ID includes photo ID, passport, bank cards, and proof of address. 3
HANDBOOK FOR TREAURER 2014 INTERNET ACCOUNT A few clubs societies may have opened linked Internet accounts to obtain a higher rate of interest on their unused funds. These bank accounts are acceptable only if they are linked to the society s main cheque account. No payment facility should be available from these online accounts as all payments should only be made using the club s main cheque account. If the club has an online account attached to their main account, a separate cashbook should be used to record the movements of that account. DEVELOP AND MAINTAIN A OCIETY PROCEDURE MANUAL Treasurer s responsibilities include the development and maintenance of the Procedure Manual covering all the financial activities of the society. The benefits of maintaining and adhering to a Procedure Manual include: Consistency and accuracy of accounting records A smooth handover between Treasurers and Executives An efficiently managed club A favourable audit opinion The Procedure Manual should cover the day to day workings of the society including; How to receipt membership and merchandise at O-week What resources are needed for particular events Where to order T-shirts What lessons can be learnt from previous Treasurers and tips etc. Part 2: BAIC BOOKKEEPING All income All Expenditure All Post Event forms Bank statements Accurate Records To set up good Financial Records you simply need to do the following: Keep a copy of all Post Event forms and Other Funding forms Keep copy of all receipts given on income items Update Cashbook as you go Regularly check ociety s bank account balance to make sure expenditure is viable The Cashbook template should be used because it is in the required format, this can be found on the Orion online portal. It is important to record ALL events organised by the club whether or not UU funding applies. The GRO income and expenditure of all activities should be recorded to provide accurate results. 4
HANDBOOK FOR TREAURER 2014 The society accounts should be prepared on the cash basis of accounting. This means that: Funds received must be recorded in the cashbook on the date of receipt, not on the date of banking; and Payments are recorded on the date paid, not on the date cheques are cleared by the bank You are not required to prepare a tatement of Financial Position (Balance heet) listing the assets and liabilities of the club, as per standard business practice within Australia, but there is a tab in the Cashbook template that lists all assets for the club. The capital tab in the cashbook is required to be completed listing all the assets purchased, donated or constructed during the financial year. If the society has significant liabilities e.g. debts not paid, rental or lease obligations, you must contact the C Auditors as soon as possible. INCOME Collect cash Issue receipt Record total of daily receipts in Income Journal Bank the cash Deposit reflected on Bank tatement UU Post Event Form Income represents all money received from any source, including payment for goods or services provided by the society. This includes but not limited to; membership fees, collections at BBQ s, Balls, Dinners and other events. Income may be received in the form of cash, cheque or by direct credit into the bank account. If received by direct credit, the reference should include details of the person and the event. All money collected must be banked DIRECTLY into the club bank account promptly upon receipt. All fees and income received should be recorded in the Income Journal, including instances where the money collected is immediately paid to the event venue. IUING INCOME RECEIPT All money collected, including membership fees, must be recorded in receipt book, with one receipt given to the individual, and one copy for the Treasurer to keep for accounts. It is recommended that the following is recorded on the front of the Receipt Book: Reference (e.g. A, B, C) Name of event (e.g. Boat Cruise) Fee structure (e.g. Members $10, Non-members $15) If possible use a separate receipt book for each event. It is important to ensure that ALL receipts match the funds deposited. 5
HANDBOOK FOR TREAURER 2014 An example of a receipt: Cash receipt (original) No. 39 Received(A,B,C): The sum of (dollars cents): Being for (Event): $: ignature: RAFFLE BOOK AND TALLY HEET If $5 or less is collected from an individual e.g. for a BBQ/raffle, a raffle ticket book or tally sheet to support the receipt is acceptable. Each raffle book or tally sheet should be clearly marked with the date and name of the event, as well as the cost of the ticket. It is also a good idea to use a different colour of raffle ticket for each price of ticket (e.g. Members $1 red book; Non-member $5 blue book.) If a tally sheet is used, it should be filed to support the event income collected. If issuing tickets for an event, the ticket stubs should reflect the entry price. The ticket stubs provide evidence of the number of tickets sold and should be retained, together with any unsold tickets. A ummary form should be completed detailing the overall number of tickets issued alongside each pricing category or event. This summary should provide a complete analysis of income and should match the amount recorded in the Income Journal / Deposit slip. The ummary form should also form part of the audit submission documentation. If income is received from any other source, such as sponsorship, an accompanying letter or remittance advice should be issued by the sponsor. This document should be retained as evidence of income and recorded in the Income Journal. No receipts need be issued to sponsors, unless they specifically request one. 6
HANDBOOK FOR TREAURER 2014 RECORDING INCOME It s important to use the Cashbook to record the income earned. This template can be downloaded from the Forms Guidelines section of the Orion Online Portal. The first step is to edit the column headings in the Cashbook to represent the activities and events of your club. ome common examples have been entered in the Cashbook template to assist Treasurers. DATE DETAIL REFERENCE TOTAL DEPOIT Change headings to reflect the club s activities and events UU Membership BBQ Funding 5/03/2014 O week collections ABC email $230.00 $160.00 $70.00 6/03/2014 UU O week funding CF XXXX $300.00 $300.00 (Date the money was received) (The event/s relating to the monies received) (Receipt #, Ticket #, Ticket book#, Remittance advice) (The total bank deposit for the day) (Allocation of deposit across relevant events/ columns) All income must be recorded in this manner for every event held by the club even if you breakeven or the club didn t receive funding. Don t use headings which are obscure or don t provide adequate clarification of the type of income, make sure you are clear. AUDIT UBMIION FORM Each society is required to summarise and record both the number and cost per attendee of Access members; Access Non-club members and Non-Access card holders attending each event or fundraising activity held. The Audit ubmission Form is required to be completed for ALL events held during the year, even if income is not collected for the event. These summaries of attendees and income received per attendee should match and support the total funds received and deposited as recorded in the Income Journal. This information is required to accurately calculate any potential income tax obligation relating to the Non-member participation in the event. 7
HANDBOOK FOR TREAURER 2014 ONLINE YTEM The use of external online systems is utilised by a small number of clubs for some large events. If a club is considering the use of an external online system or a third party to sell event tickets, the following should be considered. Is an Online ystem the best income collection process? How would problems be detected and addressed e.g. o Potential attendees could not buy tickets as required through the website? o Attendees being charged the incorrect amount o How are refunds processed? How often are the funds deposited into the club s bank account? The commission charges and the responsibility for paying these costs e.g. the society or attendee? The business reputation of the online system third party- is it transparent, accountable and responsible in its dealings? The type and quality of the Audit Trail. Does it meet the requirements of good accounting practice and this Handbook for Treasurers? Please contact the C Auditors to discuss before taking any action. PayPal PayPal can be used to receipt income for events, if your club would like to use PayPal, a account should be opened in the name of the club. If a club is using PayPal to receipt funds, the following reports are required to support the Income Journal entries; Detailed Transaction Report reflecting individual names, related fees and amounts A summary Report reflecting the total income ultimately transferred to the society bank account. Do not use PayPal to process payments. 8
HANDBOOK FOR TREAURER 2014 EXPENDITURE Incur expense Collect invoice Prepare reimbursement form and sign cheque Record in Expenditure Journal File Invoice Check Bank statement Any money the club spends on goods and services is referred to as expenditure. The following are examples of expenditure. A venue hired on behalf of the club and paid by a club cheque; An Executive member personally pays the expense on behalf of the club and the executive member is subsequently reimbursed by the club. The club orders T-hirts and pays the supplier by a club cheque. Drawing Cheques Payments for items must be made by using the society cheque book. Treasurers should never: Pre-sign blank cheques for future use Hand-over blank cheques to anyone. All cheques require 2 authorised signatures to be valid. Collecting Tax Invoices Treasurers are required to obtain a valid receipt or tax invoice to support all payments. If a club member, who has already paid for the item, is being reimbursed, they are also required to provide a valid tax invoice. Please note that credit card receipts, EFTPO dockets, receipts which cannot be traced to a supplier and receipts without dollar amounts are not sufficient to support payments processed. This lack of adequate supporting documentation may result in an unsatisfactory audit opinion, and potential tax liabilities. The receipts are necessary for both C funding applications and for your Audit. When submitting any event forms to the C office, attach photocopies of any receipts to support your form and keep the original receipts for your audit. 9
HANDBOOK FOR TREAURER 2014 RECORDING EXPENE Just like recording income, all expenses should be recorded in the cashbook found on the Orion Online Portal. Just like recording income, the first step is to edit the column headings in the Cashbook to represent the activities and events of your club. ome common examples have been entered in the Cashbook template to assist you. Example of expense entry DATE DETAIL CHEQUE REFERENCE TOTAL T hirts 1/1/2014 (date cheque is written) O week T hirts 1458 (What was the purchase for?) Change headings to reflect the club s activities and events O week BBQ Only use if considered necessary 260.00 180.00 20.00 60.00 (write a reference on the invoice) Invoice # (total cheque value) UU CF # Total Expenditure 260.00 180.00 20.00 60.00 Generally allocate expenses to events or common activities e.g. AGM, O week, BBQ s etc. Enter the date and details of each cheque and allocate the expenditure under the appropriate heading. The amount of the cheque will match the amount on the bank statement upon being presented. The total expenses for C funded events should match the amount recorded on the Post Event Form. If a cheque is cancelled, it should still be recorded in the Cashbook as a nil amount. All cancelled cheques should be kept and crossed as cancelled. CAPITAL EXPENDITURE Capital items are used for more than one year and examples include; banners, laptops and laminators. Capital items do not include T-hirts or other merchandise. Each capital expenditure entry should agree to the expenditure information recorded in the Expenditure journal. REIMBUREMENT YTEM If the club cannot pay for any expenses because cheques may not be accepted by a supplier or the signatories are unavailable, a member may personally pay the expense, and subsequently be reimbursed by the club. A reimbursement/cheque requisition form should be completed Payment details should be recorded in the expenditure journal The Club member being reimbursed should retain their tax invoices or receipts relating to the original purchase in case of a subsequent enquiry. 10
HANDBOOK FOR TREAURER 2014 Please note that credit card receipts and EFTPO receipts are not acceptable forms as evidence of payment. hould a credit card be used to pay club expenses, members should ensure that a tax invoice is also obtained. Treasurers should ensure that they advise club members accordingly before they make the relevant purchases. NO INVOICE = NO PAYMENT CAH FLOAT mall amounts of cash on hand required to provide change to members attending club events is referred to as a float. The amount should be recorded in the Expenditure journal in a column headed Float. Cash should not be held over from one event in order to provide a float at another event. Below is a summary of the Income and Expenditure journal entries which indicates how the amounts of the floats contra / balance off against each other. Expenditure Journal Cheque # Total $ O-Week T shirts Float 26/02/2014 T shirts 52 420.00 420.00 27/02/2014 O-Week Float 53 50.00 50.00 Income Journal 5/03/2014 O-Week float deposit Ref Total $ Membership T shirts Float 50.00 50.00 10/03/2014 Membership Rec bk 1 130.00 130.00 11/03/2014 T shirts Rec bk 2 55.00 55.00 11
HANDBOOK FOR TREAURER 2014 ACCOUNTING FOR DOCUMENTATION CORRECTLY There are a number of ways to maintain accounting records securely and responsibly. The following procedure is recommended: Income Prepare a summary or analysis of receipt numbers issued to support the total income. Ensure that the total income recorded matches the income reflected on the Post Event form Expenses File the Reimbursement/Cheque Requisition Forms reflecting an analysis of the expenses in cheque number sequence: o If expense relates to an C Funded Event, the amounts should be attached or referenced on the relevant Post Event Funding form; and o If expense does not relate to a UU Funded Event, the supporting documents should be attached to the Reimbursement form. File the UU Post Event Funding Forms with supporting income and expenses documents attached. BANK ACCOUNT AND RECORD Each society must have a bank account. Clubs that have demonstrated a history of good financial management and are of a suitable size to warrant an internet payment facility may be granted permission by the C Office. The assessment will be based on the audit results of the previous three years. One bank account should suffice for smaller clubs or societies. Larger clubs which have more than one account should complete and submit for audit, separate bank records and cashbooks for each bank account. There are three main types of bank records: Bank tatements The bank statement is the most important external record and an integral part of the audit. File all the bank statements in statement number sequence. If they are misplaced, a transaction listing from the bank is adequate. Cheque Books It is compulsory that all bank accounts have at least 2 cheque signatories, one of which must be the Treasurer. It is recommended that 3 members are registered as authorised cheque signatories, in case one signatory is unavailable. Ensure that the cheque counterfoil is properly completed with the date, amount, payment details, payee which match the Cheque Reimbursement form. Deposit Books It is recommended that a deposit book is obtained and used when depositing money. If a number of cheques or cash from various events or sources are deposited together, write on the back of the deposit slip the amount of each cheque deposited and the money received from each separate event. 12
HANDBOOK FOR TREAURER 2014 FINANCIAL TATEMENT At the end of the Club s financial year the treasurer is responsible for the following: An Income Expenditure tatement for the financial year End of Year Bank Reconciliation (it s recommend that this is also completed monthly) These statements are a summary of the cashbook and should form the basis of the Treasurers report to the members of the club at the AGM. The Cashbook Excel spreadsheet has a tab which automatically creates these statements, but Treasurers should check that the total income and expenditure is correct. Income and Expenditure tatement This is summary of all the income received and expenditure incurred for the year. This should reflect the totals for each category already recorded in detail in the Income or Expenditure journals. An example of an income and expenditure statement is on the next page. INCOME AND EXPENDITURE TATEMENT FOR XXXX CLUB FOR THE PERIOD 01/01/2014 TO 31/12/2014 INCOME $ Membership 150 00 T-hirt ale 150 00 BBQ 115 00 UU Funding 500 00 Annual Ball Tickets 2500 00 TOTAL INCOME 3,415 00 EXPENDITURE $ BBQ expenses 86 00 Administration 4 50 Annual Ball 2,815 30 T shirt printing 60 00 TOTAL EXPENDITURE 2,965 80 NET CAH MOVEMENT 449 20 13
BANK RECONCILIATION HANDBOOK FOR TREAURER 2014 The Bank Reconciliation matches the transactions on the accounting records against the bank results and highlights any discrepancies. Below is an example of a standard two-part Bank Reconciliation. The first part ensures that the figures are consistent with the cashbook and determines the cashbook balance of funds at the end of the year. The second part reconciles the cashbook / balance of funds to the balance per the bank. Note $ Opening Cash Book balance 1 2000.00 Add: Income 2 3415.00 Less: Expenditure 3 (2965.80) Cashbook/ Funds balance at Year end 7 2449.20 Balance per bank tatement at year end 4 35.00 Less: Unpresented cheques 5 (86.00) Add: Outstanding deposits 6 2500.00 Cashbook/ Funds Balance at Year end 7 2449.20 NOTE: 1. From the Closing Cashbook balance attached to your last audit report 2. Total from your Cashbook/income statement 3. Total from you Cashbook/expenditure statement 4. From your bank statement at the end of the year 5. This represents society cheques per Cashbook but are not yet on the bank statement 6. This represents deposits banked per Cashbook but not yet reflected on the bank statement e. 7. These totals should always agree It is important to ensure that all bank charges, fees, interest, and interest income shown on the bank statement is recorded in the cashbook, to ensure that the bank reconciliation will balance. In the instance that there is a discrepancy, it is likely to be some missing income or expenditure. To find an error, ensure that you have added all the entries from your bank statement into the cashbook. If all the items are added from your bank statement, discrepancies cannot arise. DONATION Clubs and societies are governed by their constitution but certain clubs may be affiliated or associated with charities. These clubs may hold events to raise funds with the intention of remitting the funds to the relevant external charity. The accounting of these funds however is no different. All money or income collected should be banked into the Club bank account and supported by appropriate cash collection systems and documentation. imilarly, the funds paid to the external charity should be supported by appropriate documentation, this could be in the form of a formal letter or receipt from the external charity with the amount and purpose clearly documented. The formal letter or receipt will also support the income tax deductibility of the amount paid. 14
HANDBOOK FOR TREAURER 2014 Whilst the amount paid by the Club is at the discretion of the club executive and its members, it should be paid out of the net profits of an event (the income generated by an event the cost of the event). Refer to Handbook for Charitable Giving 2014 for more information. Part 3: FINANCIAL MANAGEMENT BUDGET As a Treasurer, it is your responsibility to ensure that your Club doesn t become insolvent. The bank account of the Club should never become overdrawn, and it s important to budget to ensure that the Club can successfully hold events throughout the year for its members without experiencing financial problems. The following steps can help you budget efficiently: Plan all the likely events that your Club will h for the year with your executive. For each event, determine what the likely expenses might be and what income might be generated. Consider any risks for each event, eg. The impact of low attendance, sponsors cancelling etc. What cash flow is required for each event- Will you have enough to cover the event? It is acceptable to make a profit on the event, provided it is within the limits detailed in the C Regulations. As a Treasurer, it s important to provide sufficient funds in the balance for the coming financial year. If you are concerned over the financial performance of the Club at any stage, please contact the C Auditors. JOINT EVENT Joint events are a great way for Clubs to benefit from potentially larger crowds, greater exposure, higher income and larger sized events that may not be possible when organising alone. When organising joint events, it s important to make documenting them correctly a priority. The clubs involved should be clear on what expenses and income occurs relating to their club to avoid confusion and it should be clearly documented ome points to consider: Ensure all clubs involved sign a Pre-Event form. For a successful event, planning is key, all clubs involved need to know what they are responsible for. Ensure the cashbook is filled in correctly to reflect your Club s contribution to the event. It s a good idea to talk to the C office before organising a joint event if you are unsure about anything. 15
HANDBOOK FOR TREAURER 2014 PONORHIP AGREEMENT A sponsorship agreement can be a beneficial way for a Club to gain more support and sometimes more financial support. A formal or informal arrangement with a sponsor can be arranged and often there will be expectations that both the sponsor and the sponsee will be required to fulfil. Treasurers are required to include a detailed agreement, including the allocations made to your Club by the sponsor as a part of your audit. Contact the C auditors, if you have any questions regarding sponsorship and how to correctly record any agreements. C FUNDING To encourage event attendance of Access card holders, the UU has developed a system whereby the club is able to provide a discount on entry fees to Access members. The discount may then be reimbursed by the UU (within certain restrictions). This means that the club can make its events more appealing to Access card holders without having to bear a financial burden. C Funding may only be claimed between 1 February and 30 November of any calendar year. It s important to ensure that the income and expenditure figures in your journals (in the cashbook) reflect the figures that are included on all post event forms submitted. Before an event Complete a pre-event form (available on the Orion portal) ubmit the form a least two (2) business days prior to the event Keep receipts/invoices for all expenditure After the event Complete a post-event funding form (available at the C office or on the Orion portal) Copy all receipts/invoices and include these with your post-event form (keep the originals for your audit) ubmit your post-event form within ten (10) business days of the event. C funding reimbursements will be available usually after 1 week, directly deposited into your club s account Other types of funding and more details regarding funding can be found in the C Handbook. UNIVERITY OF YDNEY FUNDING The University of ydney may fund a club s activities through the provision of a Faculty grant. If a grant is provided, you still need receipts and documentation to support this transaction in your audit. You can request these from the University. All funding received from the University of ydney should be recorded on Post-Event forms as income. Clubs should not claim funding for the same event, from both the UU and University of ydney. 16
HANDBOOK FOR TREAURER 2014 CAPITAL EXPENDITURE AND MERCHANDIE Clubs may receive up to $500 in capital expenditure funding per year. Faculty, affiliated sites and college societies are eligible for $2000 over a two year period. Capital expenditure will only be funded if the club can demonstrate that the item(s) will be stored on campus and will benefit all of the club s members. You are required to enter all capital items into the cashbook, including those built or donated. imilarly, the out-going treasurer should hand over any merchandise such as T-shirts which represent unrealised income to the Club. Ideally, at year end the Treasurer should perform a stock take of all merchandise; which should be submitted as part of the audit. BACKUP It s important to backup the Cashbook regularly (it s a great idea to save it in two different places), and all hard copy historical documentation should be held in a secure location where it will not be subject to damage or loss. Part 4: REVUE The content in this handbook is applicable for all Revue treasurers. The requirement of obtaining and retaining appropriate supporting documentation is similar to that of other clubs and all expenditure items need to be supported by applicable invoices and receipts. Income collection systems need to be in place for events held. All income from ticket sales, fundraising events, sponsorship, UU and University of ydney financial grants and reimbursements should be supported in the cashbook. The Revue Treasurer should consider the following: The eason Revue Manual which is available from the UU Program Events Coordinator Establish a Budget for the Revue If online ticketing systems are used to sell Revue tickets, an audit trail should support the individual ticket sales. The completion of a Population ummary for Revue Tickets sold and unsold. This is in addition to receipting the sale of individual tickets. Additional Revue Treasurer resources are available on the Orion Online Portal pecific training sessions for Revue Treasurers are held in emester one (1). Each Revue Treasurer is required to attend one of these specific Revue Training sessions in order to obtain C Funding. 17
HANDBOOK FOR TREAURER 2014 Part 5: TAXATION NON-PROFIT ORGANIATION Any liability for income tax is the responsibility of the society. ome clubs are exempt from income tax obligations because of their aims and activities as defined in the club s constitution, these clubs include; Cultural nature (art, drama, music) port and Games nature (chess, bridge) Generally all other clubs will be classed as Non Exempt. This is based on the principle of mutuality as described by the ATO. Money or income received from members and spent on member activities is not subject to income tax. Club treasurers are required to sign the Log of Tax tatus Reviews (Appendix J) regarding the club s income tax status (exempt or not exempt) as recommended by the ATO. If you are unsure if the society is exempt from income tax, please contact the C auditors. If the club is not exempt, Treasurers need to take special note of any interest earned and any non-club member related Income. This is because the club may be subject to income tax on non-club member income offset by related expenditure and interest income. Non-society member income refers to funds received from people or organisations who are not members of the club but pay for entry to an event etc. In these cases, attendance records need to be accurate, including the number of attendees (Member and non-member) and the cost per person. As society events are mainly held for the benefit of members and are often held with no or minimal profit there will only be a few clubs subject to income tax payable obligations. Although C Funding received for events held or fundraising activities will be included in the club s income calculations, you should be aware that expenses relating to these events can be offset against this funding. Club financial documents and taxation records should be retained for at least 6 years as per ATO legislation and Taxation Rulings. GOOD ERVICE TAX (GT) The C Auditors recommend that clubs do not register for GT. This recommendation is made on the basis that the increased compliance obligation and costs generally outweigh any perceived benefits of GT credits. Clubs are non-profit entities and as such do not need to register for GT unless the turnover is in excess of $150,000 per annum. If the club is already registered for GT, please make an appointment with C Auditors to ensure that GT payments are correctly accounted for and submitted on a timely basis to the ATO. 18
HANDBOOK FOR TREAURER 2014 Part 6: AUDITING As a condition of continuing registration, the UU and the University require all clubs societies to have their accounts audited annually. This is considered necessary to ensure that the grants provided to the club have been properly used to promote social and cultural activity on campus and to provide assurances to the members and Executive that their club has been operating on a financially sound basis. The UU has a team of qualified auditors to perform this service free of charge. An audit is an independent examination of the financial records of the club, to form an opinion on whether they present a true and fair result of the operations of the club during the financial period. It is therefore imperative that the financial records contain information from all events held during the year and that the financial transactions are properly supported by appropriate evidence such as tax invoices and income receipts. WHEN DO YOU HAVE TO UBMIT YOUR CLUB AUDIT? Your club has the same financial year end every year and this is two months before the club has its AGM. The rationale for determining the date the AGM is: Time permitting, the financial records may be submitted, audited and returned prior to the AGM; Treasurers may report on the audited Financial Reports If the financial records have not yet been audited at the time of the AGM, Treasurers are required to present the unaudited Income and Expenditure tatement and Bank Reconciliation to the members present at the AGM. Due to high numbers of clubs with the financial year end in June-August, new and existing clubs will be unable to change their financial year end to this time period. WHAT DO I NEED TO DO BEFORE UBMITTING THE FINANCIAL RECORD? Treasurers will generally receive a reminder email C Office at the end of the financial year. hould there be a reason why this submission deadline cannot be met, please contact the C Auditors as soon as possible. On the last day of the financial year, Treasurers need to: Close off the Cashbook by totalling the Income and Expenditure journals; Prepare the Income Expenditure tatement; Ensure that results of each event held during the year is reflected in the Cashbook; Ensure that the bank statements represent the complete financial period. Order any missing statements from the bank and / or obtain a bank transaction listing; Prepare the Bank Reconciliation; Ensure that all the invoices and receipt books are referenced and filed in the recommended manner. Complete the Audit ubmission Form Ensure completeness by complying with the Audit Checklist requirements; ign the Executive Declaration and Log of tatus Reviews (Appendix J) Upload a copy of the final Cashbook on the Orion Online Portal or email it directly to the C Auditors auditors@usu.edu.au. ubmit all hard copy documentation to the C Auditors office in level 6 Holme Building. 19
HANDBOOK FOR TREAURER 2014 hould the required documentation not be submitted, or the documentation does not meet the required standard as detailed in this handbook, the C Auditors will contact you requesting a meeting to discuss relevant matters regarding the submission. This may result in the Audit being Qualified which places the registration of the club at risk. Please note that the clubs financials are part of the clubs re-registration documentation and submitting the audit late may result in the club becoming unregistered with the UU C Program. AUDIT REPORT On completion of the audit, the C Auditors will prepare an Audit Report for the members and express an opinion on the Financial Reports. The types of reports and opinions that the C Auditors issue are unqualified, qualified, inability to form an opinion and no opinion. Unqualified (atisfactory): o The required accounting standards have been met. o Income and expenditure adequately supported o As such the Club / ociety will be re-registered for another year. Qualified (Improvement Required): o The Auditor is satisfied with the accounting standards except for certain items/ reasons. These particular items / reasons will be detailed in the Audit Report. This opinion may have formed because of: Missing documentation supporting income and expenses, e.g. bank statements or tax invoices Inadequate accounting systems and accountability for collection of income or payment of expenditure Inadequate accounting of UU funded transactions Non compliance with critical areas of this handbook The C Auditors also explain any recommendations on the Cover heet for the Executive to improve the financial system to prevent the same problems from recurring. You are expected to implement these recommendations and to discuss any concerns with the C Auditors. Audit Opinions are important and are not issued lightly. If the C Auditors come across any issues with the clubs financial recorsds and envisage such a report, they may contact the submitting treasurer requesting further information and explanations. Depending on the exact nature for the Qualified (Improvement required) opinion being issued, conditional registration may be granted for 6 months, after which another audit will be performed. If this audit is again qualified, the Club s registered and further C funding may be impacted. Inability to form an Opinion (Unsatisfactory) o In these cases, little, incomplete or no financial records have been submitted by the Treasurer and no explanation of the state of the financial records has been offered. Therefore the C Auditors are unable to form an opinion on the financial records. 20
HANDBOOK FOR TREAURER 2014 Where there is evidence that C funding has been used for a purpose other than for which the funding was approved, it will influence the C Auditors in any decision on qualification and continuing registration. As such, funding for one society may not be granted or forwarded to another society. ociety members are entitled to trust that funding is used for the benefit of only its members. Treasurers have the important responsibility of ensuring the ongoing registration of the Club. This requires accurate and complete accounting of the club s activities throughout the year. It also requires cooperation with the C Auditors by making all records available and providing all necessary information for a successful Audit. Treasurers may need to remind members of the importance of maintaining the Club s registration, including: The need to have appropriate documentation supporting all financial transactions; The responsibility to submit the secretarial documentation e.g. registration documents, AGM minutes, President s Report, List of Members, constitutional changes etc. on a timely basis. If Treasurers are concerned at any stage during the year that the society funds have been used inappropriately or are missing, please report it immediately to the C Office, Police and in cases involving cash, to the University ecurity. No Opinion. o Although the society has been active on Campus, there is no financial impact. INACTIVITY As per the 2014 C Regulations, a club shall be deemed inactive after any continuous 6 month period during which that Club does not hold any events or engage in financial activity. After 6 months, the control over any remaining bank balances and club property is assumed by the UU and held in trust. The C Auditor, C Manager and UU Honorary Treasurer become signatories of the club s account and the C Office will control such balances and properties held in trust. After a further six-month period, resulting in 12 month inactivity, all money will be deposited into a UU administered trust account; to be returned to the society should it become active again. After a total of eighteen months inactivity, all club funds will be transferred to the UU general account. hould you have any questions regarding the audit process, please contact the C Auditors. 21
Part 7: REOURCE HANDBOOK FOR TREAURER 2014 To obtain further information on the C Program, including full access to Handbooks and other resources, please log on to the Online Portal at www.usuonline.com/cnsonline/. Handbooks can also be collected from the C Office. The UU website www.usu.edu.au/clubs-societies.aspx CLUB AND OCIETIE OFFICE CONTACT The C Office is open: Monday Friday 9:00am 5:00pm during semester weeks 1-13. Monday Friday 10:00am 4:00pm outside of semester. The C Office is located on the ground level of Manning House, Manning Road, University of ydney. Call with all your questions, comments or help when needed on 9563 6118 or 9563 6160 or if you d prefer you can send us an email at c.socs@usu.edu.au C AUDITOR The C Aditor Office is open: Monday Friday 8:00am 4:30pm. The C Auditors are located on level 6 of the Holme building, University of ydney. Call with any questions on 9563 6140 or 9563 6104 or send them an email at auditor@usu.edu.au. 22
2014 Treasurers Handbook APPENDICE Appendix A Club name: Period: To INCOME JOURNAL Figures already entered below are examples of income and will be different for your club Insert additional rows as necessary Date Details Reference Total Deposit Membership UU Funding BBQ Ball Harbour Cruise Bank Interest ponsorship 5/03/2014 O week collections Receipt A100 A120 $230 $160 $70 6/03/2014 Ball Funding CF xxx $200 $200 TOTAL INCOME $ - $ $ - $ - $ - $ - $ - $ - 23
2014 Treasurers Handbook Appendix B Club name: Period: To EXPENDITURE JOURNAL Figures already entered below are examples of expenditure and will be different for your club Insert additional rows as necessary Date Details Reference Total Deposit T-hirts O-Week BBQ Ball Harbour Cruise Bank Interest ponsorship 5/03/2014 O week collections Receipt A100 A120 $260 $180 $20 $60 6/03/2014 Ball Funding CF xxx $300 $300 TOTAL EXPENDITURE: $ - $ $ - $ - $ - $ - $ - $ - 24
Appendix C Club: Period: ummary of Income Expenditure Income $ XXX.XX Total Income $ XXX.XX Expenditure $XXX.XX Total Expenditure $ XXX.XX Increase/Decrease in Cash $ XXX.XX
Appendix D Bank Reconciliation CLUB / OCIETY: PERIOD: 2014 Treasurers Handbook Notes $ Opening cash book balance (from the last Audit Report) Add: Total Income (from cashbook App A) Less: Total Expenditure (from cashbook App B) Closing Cash book balance 1 Closing Bank Balance Less: Unpresented cheques list below Add: Uncleared deposits list below Closing Cash book balance 2 Note: 1 2 amounts should be equal List of Unpresented Cheques: Date Cheque Number Detail $ TOTAL List of Uncleared Deposits: Date of deposit Reference Detail $ 26
Appendix E 2014 Treasurers Handbook CLUB PERIOD to CAPITAL ITEM PURCHAED, DONATED TO CLUB or BUILT In order to track the capital items or assets that the club has purchased over the year, you are required to enter the detail on this page. This information will be shared with the C Office and available to future Club Executives if required so they are aware of the assets existence. A copy of this page once completed should be filed with the Club finance documents. What do I enter in here: Enter all detail of capital purchases / expenditures made during the year. Enter in any details of capital items donated to the Club. Enter in details of any component purchased in order to build an asset or capital item. Also identify if the item has been subject to Capex Funding by the UU. Note For items purchased the amount spent should be included in the Expenditure Journal of the Cashbook. Details of the Purchase, Donation or Built item. [purchased items should match the Expenditure Journal] Was this item subject to UU Capex Funding? Invoice on file Date of Purchase. [Donation or Build] upplier Chq # Amount $ Description of Capital Item Expected life of the capital Item Where is this item located during the year Who has custody of the capital item. Name and Phone number required. Y/N Include UU Funding Number Details. Amount Y/N 27
Appendix F Reimbursement / Cheque Requisition Form Club Name: 2014 Treasurers Handbook Cheque no. Payee: UU Funding Reference (if applicable): (Note the Post Event Form should be stapled to this form) Reimbursement for: Event Name Expense details Amount Receipts Attached O Checked/ Authorised O O O O O O O O O O O O O O O O O GT (if any) Total Amount Cheque Authorised by: Dated: 28