Best Practices for Clubs and Classes Webinar Presentation October 30, 2012.
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Transcript of Best Practices for Clubs and Classes Webinar Presentation October 30, 2012.
Best Practices for Clubs and Classes
Webinar PresentationOctober 30, 2012
Welcome
Thanks for your service to your club, class and college!
Today’s presenters: Jennifer Evans Casey, Director, Class Activities –
Alumni Relations, [email protected] Sue Young, Senior Associate Director, Club Affairs –
Alumni Relations, [email protected] Hugh O’Reilly ’86, [email protected] Joe Mannes ‘80, [email protected]
Topics Covered
Examples ResponsibilitiesBest Practices
Fraud Alpha Theta Class and Club examples
Theft (use for personal expenses) Improper use of funds (overnight loans to
personal business)
Failure to file Loss of tax status
Other Single signature example
Fraud, Inattention: Not Just Theoretical Issues
Classes File with the College by August 31 Fiscal Year End: June 30 Prepare/distribute an Annual Class Financial Statement What it is: two page report in Excel
Summary headcounts/financials/other Forms the basis for tax filing
Clubs Aim to deliver at August or September meeting Fiscal year ends June 30 Prepare/distribute Financial Report to Club’s Board or
ExecCom
Annual Financial Reports
Best Practices:Annual Financial Reports Clubs
Does not need formality of a CPA’s financial statements, but should present:
Profit/Loss data by category Cash balances and any other assets or liabilities
Essential to tool for preparing and presenting upcoming year’s Budget
If Club files “full” tax returns, align by tax category
Classes Know the due date Review with treasurer
Taxes Due annually, 11/15 Know your form (990-N, EZ or the Full Monty)
Depends on gross income, avg. over 3 yrs. Reunion years can push a class up to a longer form,
so don’t wait until the last minute to determine! Bad habit to rely on extensions, but better to
file for extension than to miss a deadline Failure to file for three years?
Loss of tax status Difficult to restore
Best Practices:Taxes
Know the deadline: 11/15 Confirm filing
Get a copy of the filing confirmation (990-N) Get a copy of the statement (990-EZ, etc.)
Concerned about resources? College sends instructions (on website) Use software/online service Outside filing help available. (For ex.: One CPA in
Hanover offers fixed-fee tax service for Classes and Clubs)
State Filings
Clubs and Classes that are separate legal entities may have annual State filings also Financial filings – may be state DOR, or
another regulator (e.g. Atty. General) Corporate filings with Secretary of State Which officer is responsible varies among
clubs/classes
Budgets
Prepare an annual Budget Typically Treasurer prepares draft; presents
to Board or ExecCom for comments / revisions / adoption
Consider categories rather than specific events/costs as line items
Regularly compare results against budget to improve planning
Note unusual liabilities/payments Projects/Scholarships/etc.
Balance the Books, and Access to Information Recording income and expenses
Income is more than just dues Accurate Tracking by event/project -
essential to evaluating outcomes and planning for the next time
Maintain an accurate ledger of all financial transactions Reconcile against bank accounts
Options: paper, Excel, accounting packages (box, online), Quickbase
Best Practices:Balancing the Books Transparency
Second signer (not dual signer) on all accounts
Make bank statements available to President – many mechanisms available:
Paper copies Online Banking with shared logon Cloud storage of documents
Give “Bus List” to President with acct #s, online passwords, PINs, etc. (Bank, PayPal,…) Share bank reconciliations
Interim Reports on Finances
Provide regular updates Verbal In writing
Provide financial statements Income statement Balance sheet Descriptions of assets held
Best Practices:Interim Reports on Finances
Periodically report in writing – quarterly or mid-year interim report is preferred. To President and ExecCom To entire club/class
Know your assets Bank accounts? Other holdings? Investment policy statement
Transactions: Collecting Revenue and Paying Financial Liabilities
Pay obligations on a timely basis Newsletters Gifts/Projects Scholarship Fund contributions
College closes its books on 6/30 Event costs Other costs
Prompt payment to college, etc. <30 days
Collecting the Cash Timely deposits of Checks
Stale checks (now often 90 days) Handoffs can cause delays
Electronic Payment mechanisms Many available today Can be more difficult to track and identify
payers
Transactions: Collecting Revenue and Paying Liabilities
Special Class Topic: Reunions
Significant cash flows May have separate treasurer Reunions are class business
Must be reflected in class finances Must be included in class tax filings
Best Practices:Special Class Topic: Reunions
Prepare, manage and share budget Second signatures on reunion accounts Regular treasurer should have access to
financial information Transparency on reunion expenses Timely final reporting required for tax filings
And in Conclusion. . .
Be Informed
Responsibility to your club/class is fundamental. Ask yourself: “Do we know what and where all our
assets are?” “If we had to do a transition today—for any
reason—are we prepared?” Know your:
Primary Tasks Key Deadlines Master Checklist provided