Dec 28, 2015
Session Objectives Keeping Good Financial Records
- Administration
- Activities/Project Financial Planning Budgeting and Reporting(Monthly & Year End) Audit Tax Returns Bonding
Who is the Treasurer?
The Chief Financial Officer of the Club The Treasurer is a member of the Board of
Directors And Normally is the Chair of the Finance
Committee
Responsibilities of the Treasurer
Receive all monies from the Secretary Payment of all Club Obligations
- Remember All Checks MUST be approved by the Board of Directors
Maintain The Financial Records of the Club
Prepare Monthly and Annual Financial Reports
Record keeping To begin With the Club must operate at least two
(2) separate bank accounts: Administrative Project/Service Activities Account All Checks MUST be approved by the Board of
Directors The Board May approve Expenses in
Advance(Those Associated with Yearly Projects, Dues Etc.)
Administrative Account The Administrative Account is used for the
following: All Receipts such as; Membership Dues; Tail
Twisting Other Receipt of funds designated for this purpose Payment of International Dues, MD 20 Dues,
District Dues and Printing, Stationery, Postage, Certificates, Plaques Etc.
Remember, This Account MUST be Separate from the Activities/Project Account
ServiceActivity/Project Account
The Service/Project Account is used for the following:
All monies raised from the public for service projects
Expenditures relating to service projects Remember, This Account MUST be
Separate from the Administration Account
How do you maintain these accounts?
Through Separate Bank Accounts Opening Banks Accounts : 1. Complete IRS Form SS-4 in order to obtain
Employer Identification Number (EIN) 2. This EIN is used to open Bank Accounts only 3. This EIN must be kept with the club’s
permanent records
How do you maintain these accounts?(Cont’d)
The number must be used on all Federal Tax Returns
The assignment of this number does not grant Tax-Exempt status to Non-Profit Organizations
Signatures Required on Bank Account
We recommend 2 to 3 (The President, Secretary and Treasurer)
These signatures must be changed annually when the officers change
Establish a relationship with a local bank Try to obtain account without any charges
most banks waive these fees.
Maintaining Club’s Financial Records
Accounting Ledger sheets Software such as QuickBooks or Clubware Excel Spreadsheet Treasurer’s Supplies through Lions Clubs
International (Cash Receipts and Disbursements Sheets)
Voucher System is encouraged for monies paid out and received
Reporting to the Club Membership
The Annual Budget At the Board of Directors meeting At the general membership meeting Year-End report of all financial activities
Preparation of Annual Budget
Responsibility of Treasurer, The President & The Finance Committee.
Budget is a Guide, not “authority” to spend Once approved, it should be followed. Any deviation, should receive board
approval
Sample Administrative Budget
Sample Project/Activity Budget
Monthly Report
Administration Fund Show Beginning Balance Income to the Fund Checks Written From the Fund Ending Balance
Activity Fund Same as Above
Year-End Report
Same as Monthly Report but covering the whole year
The Information is needed for tax returns and year-end activity report.
Reporting to the Government
File Form 990 EZ Or Form 990 File Based on Two elements – 1) The Gross
Receipts 2) Total value of Club Assets. File Form 990 N (Postcard Report for all
clubs with gross receipts under $25,000)
When to File a Return
Gross Receipts are Less than $25,000 – You must file form 990 N on internet
Gross Receipts more than $25,000 and less than $100,000, and total assets are under $250,000- File Form 990EZ or form 990
If Club receives IRS packet with preaddressed label – File Return
Form 990EZ
Audit
Should be done at end of Lions year Bank Statements Documentation of all Checks Deposited Receipts for all Expenses Two Signatures on Each check Copies of Tax Returns Monthly Report Year-End Report
Bonding
Your Club should have a Position Schedule Fidelity Bond covering the Treasurer
This type of bond covers any person holding the office of Treasurer and or President of your Club
This bond would be held and paid for by your club. The Secretary would be the one to purchase the bond
Other Items of Interest
Incorporation Non-Profit Status(501©-3) File IRS Form 1023 Insurance for Service Activities
Thank You For Attending this Presentation
Robert F. Shively, PDG
2005-2006