What questions do you have? Please write your questions on an index card. We will review at the end to be sure we covered all questions. 4/25/2015 Rotary District 7570 1
Dec 21, 2015
What questions do you have?
Please write your questions on an index card.
We will review at the end to be sure we covered all questions.
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4/25/2015Rotary District 75702
Rotary Club Treasurer Training
Cynthia PageDistrict 7570 Asst. Treasurer
Rotary Club of Harrisonburg-Massanutten
Jim Ridenour District 7570 District Treasurer
Rotary Club of Staunton-Augusta
Who is here today?
NameClubHow long in Rotary?How long as Treasurer?
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Introduction Purpose: To Define the Roles and
Responsibilities of a Rotary Club Treasurer
It is vital that each Rotary Club exercise impeccable fiscal responsibility to optimize the use of its funds and maintain trust in the community and amongst the club membership
“For a small piece of paper it carries a lot of weight.” For the Love of Money – The O’Jays
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Topics• Treasurer’s Role and Responsibility
• Resources• What is expected of you?• Club Budget• Financial Records & Accounts• Communication: Club, District, RI, IRS• Financial Reporting• Fiscal Control• Best Practices
• Summary & Questions
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Today’s SessionYour Participation is KeyAsk Questions AnytimeShare Your InsightsUse Training MaterialsFeel Free to Move AboutPenny for my thoughts
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Resources
Rotary Club Bylaws (Manual Of Procedures 2013)
– Article 4 Section 7
Available on District 7570 web page
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Click on District Downloads
Scroll Down
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Resources
Rotary Club Treasurer’s Manual– Available on RI web page
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club treasurer’s manual
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What is expected of you?Managing funds
– Planning, directing, monitoring, organizing $Collecting and submitting dues and feesPaying billsReporting on the state of your club’s
financesDeveloping a budgetPreparing your successor
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What questions should you ask?
Where can I get a copy of last year’s budget?
Can you help me understand how it was put together?
Where are the bank accounts?Who has signature authority?How do I get online access?Do we have any debt?
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What questions should you ask?How are dues billed and collected?What do I do with Foundation Gifts
(sustainer dues)?What paperwork do I need to file and with
who?Can I get a copy of our club bylaws?What caused you the biggest headaches?What do you wish you had an opportunity
to change?
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Overview: Role of the TreasurerManual of Procedure page 8
Handling Club Funds – part 1
At the beginning of each fiscal year, the club’s board of directors must prepare or cause to be prepared a budget of estimated income and estimated expenditures for the year, which, having been agreed to by the board, shall stand as the limit of expenditures for the respective purposes, unless otherwise ordered by action of the board.
All bills shall be paid by the treasurer, or other authorized officer, only after approval by two other officers or directors. A qualified accountant or other qualified person must make an independent review of all the club’s financial transactions each year.
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BudgetBudget reflects the Club’s Annual
Plan Good budgeting is key to Club
successInvolve the Board of DirectorsAsk questions
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Budget
Find out about all club activitiesLearn about the club’s cash flowBe conservative in estimatesPlan a favorable balance at year
endObtain Board approvalCommunicate in a Club Assembly
Budget Revenues
Club dues – Include district dues, RI dues
Guest mealsFund RaisersSplit the potHappy DollarsWhat else?
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Budget Expenses – Club Level Club Administration
– Printing – Postage– Badges/Pins/Certificates– Meals– New member packets
Committees (Authorized expenses)– Projects– Donations
Miscellaneous Expenses Contingency Fund Special Funds What else?
Go back though the prior year reports or
checkbook to capture details.
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Budget Expenses – beyond the Club Rotary International
– Dues (including Insurance, Rotarian Magazine, Council on Legislation)
District 7570 Dues and computer fee RI Convention and District Conference Training
– PETS – DTA– RYLA
What else?
Talk to your president and
committees to see what their goals are
for the year and determine budget
impact.
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Rotary International Dues & FeesReference: Manual of Procedure 2013
Per Capita Dues paid to RI
• Each club pays the following annual per capita dues to RI for each of its members, other than honorary members:
• $27.50 per half year in 2015-16 [$28.00 in 16-17]. • Paid 1 July and 1 January, based on the number of members of the club
on these dates.
• Prorated dues for Rotarian joining between July 1 – Jan 1 – July 1.
• If a club has fewer than 10 members, it shall pay additional per capita dues of an amount equal to the amount it would have paid if it had 10 members.
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Rotary International Dues & Fees (cont.)
Rotarian Magazine
$6.00 per Rotarian per half year in 2013-14 (established by RI BOD action)
Insurance
$2.74 per member (July 1 only). New rate in May 2015.
Dues for Representation at the Council on Legislation
$1.00 per member (July 1 only)
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District 7570 Dues and FeesPer Capita Dues
$23.00 per Rotarian in 2014-15 Based on club roll as of September 30Due December 1 – if not paid by January 1, 5% penalty assessed Invoice sent to club treasurer by PMAILAuto debit option available
Website & Database Maintenance Fee
$35.00 per club – payable with per capita dues
Dues Summary
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for amount frequency annual when paid RI dues $ 27.50 half year $ 55.00 July 1 Jan 1Magazine $ 6.00 half year $ 12.00 July 1 Jan 1Insurance $ 2.74 per year $ 2.74 July 1COL $ 1.00 per year $ 1.00 July 1District dues $ 23.00 per year $ 23.00 December 1Total annual $ 93.74 Per quarter $ 23.44
Sample budget
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Number of meetings
Number of members vs number of members billed
Special Project
Better to keep fund raising separate
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Meal cost varied by number of weeks Fundraiser
expenses
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4/25/2015Rotary District 757029Monthly cash flow varies Very slim margin!
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Time for a stretch break.
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Overview: Role of the TreasurerManual of Procedure page 8
Handling Club Funds – part 2
At the beginning of each fiscal year, the club’s board of directors must prepare or cause to be prepared a budget of estimated income and estimated expenditures for the year, which, having been agreed to by the board, shall stand as the limit of expenditures for the respective purposes, unless otherwise ordered by action of the board.
All bills shall be paid by the treasurer, or other authorized officer, only after approval by two other officers or directors. A qualified accountant or other qualified person must make an independent review of all the club’s financial transactions each year.
Approval and Auditing – questions to ask?Who is going to approve bills?How will approval take place?Does your club have an audit committee?What is their role?How is the annual audit going to be taken
care of?
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Treasurer Communication
Club MembersClub SecretaryClub President/BoardCommitteesDistrict 7570Rotary International & Rotary Foundation
Dues PaymentsAttendance Financial ReportingBudget PerformanceDues & GrantsDues, Grants, & Foundation Contributions
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Membership Status
Member Dues PaymentRecords
Periodic Review
Treasurer Responsibility
Is Member Current and In Good Standing?
Remain on ClubRoster & Invoice
Next Period
Yes Remove fromClub Roster &Final InvoiceNo
Remove From Active Invoice
System
Club AttendanceRecords
Secretary Responsibility
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Communications – District 7570District Annual Dues Payments
– Electronic Drafting– Determined at District Legislative Assembly
(PETS)District GrantsGlobal GrantsCheck District 7570 Website
– http://www.rotary7570.org/
Financial goals set at PETS – talk to your
President and Board to prep
your PE
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Communications - RI
Rotary Foundation Giving– Annual Programs Fund– Sustainer Payments– Permanent Fund– Polio Plus Fund
Visit Rotary International Website– http://www.rotary.org/
Rotary Foundation Submission Instructions
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Choose Committees and Downloads
Scroll Down to…
Rotary Foundation Submission Instructions
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Transmittal Form
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Log in
2.1 Rotary Foundation Transmittal
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Rotary Foundation Communication
undesignated = Annual Fund - Share
IRS – Tax Filing Rotary Club is 501(c) 4
– Gifts to the club are not tax deductible– If you have a foundation it is a 501(c) 3– Gifts to The Rotary Foundation and club foundations
are tax deductible Club must file a form 990-N if gross receipts
>$25,000 (includes meal payments) If year ends June 30 – due by Nov 15 Fail to file for 3 years – may lose tax exempt
status More info at irs.gov
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Ask a CPA in your club for help
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Financial Reporting
Budget Budget v. Actual Income & Expense Aged Invoices Fund Raising Foundation Contributions Reserve Funds Audits/Reviews Tax Returns (Form 990)
Board & Club Board & Committees Board Board & Secretary Board & Committees Board & Foundation Committee Board Board & Club Board & IRS
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Financial Records & Accounts Checking Accounts
– Update Signature Cards– Update Resolutions– Statements & Checks– Internet Banking Access– Reconciliations
Savings and Investment Accounts Statements
Financial Reports - Sample reports in Club Treasurer’s Manual– Balance Sheet– Profit & Loss Statements– Budget v. Actual
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Financial Records & Accounts Rotary Foundation
– Contribution Records– Sustainer Giving– Special Gifts
Minutes of Meetings (Coordinate with Club Secretary)
Indemnity Bond, if applicable
Tax Returns & IRS Documentation
Audit Reports or Committee Reviews
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Fiscal Control
What is Fiscal Control?– Insuring proper checks and balances are in
place to protect the integrity and funds of the Club
– Systems to prevent things from going wrong; to check for
Errors, mistakesIntentional misdeeds
Fiscal ControlUse written agreements for club activitiesDiscuss bonding/liability insurance
– Clubs in US have general liability and director and officers/employment practices liability insurance through RI
Report oftenUse audit committee Separate duties among club membersGet approval for bill payment
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Communications - Club
Invoicing &Collection of Funds
(Dues, Meals, Contributions etc.)
Bank DepositBank Statement
Make Payments
Segregation of Duty Needed
Reconcilement&
Oversight
Transactions EnteredInto
Accounting System
Financial ReportsGenerated
FormalReport toBoard & Approval
Segregation of Duty Needed
Treasurer Responsibility
Committee Responsibility
Treasurer Responsibility
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Best Practices Plan for Succession and Transition
– Set term limit for Treasurer– Appoint an Assistant Treasurer– Bylaws May Require Amendment
Establish Segregation of Duties– Approval & Payment of Bills– Reconcilement– Check Signing Authorities– Opening Accounts– Annual Reviews or Audits
Bonding – talk to your club
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Best Practices Formalize Budgeting Work with Your Bank
– Utilize Online Banking Capabilities– Minimize Fees
Meet and Report Regularly– Board and Committees– President– Secretary
Use an Accounting System– DaCdb (Smaller Clubs), Excel– QuickBooks or Peachtree (Larger Clubs)
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Big Sis Advice Be sure sustainer contributions are paid to club before
remitted
Bill dues regularly so members know when to expect billings
Stay current with deposits, bookkeeping, reconciliations and reports
Talk to your board about how much they want to have in reserves
Keep records for a minimum of three years after 990 filed
Big Sis AdviceExpect to get money/paperwork/etc. every
time you go to a Rotary event
Don’t be afraid to implement new controls if they are needed – you may set the new standard for how its done
Encourage new members
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Timeline for budget development January – tell PE and committee chairs that you
are starting to think about new year’s budget and will be asking for their input
Spring – contact each committee chair and ask for budget request for coming year
March – prep PE for goals at PETS April/May – discuss with PE and prepare draft
budget May/June – prepare budget & present to board July 1 – new year All year long – monitor and report
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Tools & Resources District 7570 Website
– http://www.rotary7570.org/– DaCdb
Rotary International Website– http://www.rotary.org/– Download Library
Documents & Manuals– Club Treasurer’s Manual (220-EN)– 2013 Recommended Club Bylaws
Article 4, Section 6 (Duties of Officers) Article 12 (Finances) Article 14 (Resolutions)
– Club Constitution Article 11 (Admission Fees and Dues) Article 12 (Duration of Membership) Article 14 (Rotary Magazine Subscription Required)
– Rotary International 2013 Manual of Procedure (035-EN, page 7) The Rotary Foundation Multiple Donor Form (094-EN) Consulting services, other sources
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Help for Club Treasurers Jim Ridenour, District Treasurer
– [email protected]– 540-448-0308
Cynthia Page, District Asst. Treasurer– [email protected]– 540-421-9928
www.rotary7570.org Go to Member access - Help tab for DaCdb FAQ, Help Desk, contacts, and more
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Summary Key Learning Points
• Role and Responsibility• Resources• What is expected of you?• Club Budget• Financial Records & Accounts• Communication: Club, District, RI, & IRS • Financial Reporting• Fiscal Control• Best Practices
Questions & Feedback
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Make my day -Ask me a question