Completing Your Audit/Budget Report

Bruce W. Wilson Miles NesmanDirector, Western Region DD Finance, Western Region

General

• Audit/budget report intended to: Ensure that all section resources are accounted for Provide an aid in budgeting for the coming year

• Fully signed audit/budget report due in final form before July 1 Fax, mail, or email scanned, signed copy to Regional Director

and Deputy Director - Finance Noncompliant sections ineligible for section awards

• Please cycle your draft excel with DD-Finance and Regional Director ahead of time Allow several days (minimum) to obtain required signatures

General

• Form audit committee including incoming/outgoing treasurers and chairs plus one additional section member

• Audit/budget reports must carry a minimum of three signatures.

• Most sections required to also electronically file IRS form 990-N (discussed at end of this briefing)

• Audit/budget form is available online at www.aiaa.org

Audit/Budget Form has Three Parts

• Cash Flow part• Metrics part• Signature part

Cash Flow Part

A. SECTION: C. BUDGET/ACTUALS ( last FY): to B. REGION: D. BUDGET( this FY): to

(1) BUDGET (2) ACTUALS (3) BUDGET (4) BUDGET (5) ACTUALS (6) BUDGETlast year last year this year last year last year this year

E. TOTAL CASH ON HAND $0.00 $0.00 $0.00 H. TOTAL OPERATING EXPENSES$0.00 $0.00 $0.00 (start of year) actuals for last yr

Checking Account $0.00 $0.00 Lunch/Dinner Programs

Savings Account $0.00 Technical Programs

Other Account (specify on a sep sheet) $0.00 $0.00 Education Programs

Precollege Programs

F. TOTAL INCOME $0.00 $0.00 $0.00 Prof Development Programs

Lunch/Dinner Programs Young Professionals Programs

Technical Programs Public Policy Programs

Education Programs Field Trips

Precollege Programs Other Programs (specify)

Prof Development Programs Membership Promotions

Young Professionals Programs Student Activities/Branch Support

Public Policy Programs Section Council Meetings

Field Trips Public Affairs/Publicity

Other Programs (specify) Newsletters (O. - see reverse side)

Section Council Meetings Other Postage

Interest Honors & Awards

Section Rebate- Cat I Scholarship Awards

Award Rebate - Cat II Supplies

Incentive Rebate - Cat III Other Association Dues

Contributions/Donations Insurance

Newsletter Advertisements Employment

Other (specify on a sep sheet) Section Travel

Other (specify on a sep sheet)

I. TOTAL CASH ON HAND $0.00 $0.00 $0.00

(End of Year)

Checking Account

Savings Account

Other Account (specify on a sep sheet)

Metrics Portion

• Don’t carry too much cash• Ensure reasonable level of activities for expenditures

DETAIL INFORMATION K. GUIDELINES: Budgeted this year's Cash on Hand (cell D7):

Budgeted this year's Operating Expenses (Cell H7): x1.5 =

* This year's Budgeted Cash on Hand should not exceed 1.5 times this year's Budgeted Operating Expenses.

...therefore, should be less than or equal to

L. total No. of Meetings Number of Council Meetings: O. Total Newsletter Expense: Number of Section Activities: Composition Expenses:

Printing Expenses:

M. TOTAL NO. OF ATTENDEES: Postage Expenses: Total No. of Members: Other Expenses:

Total No. of Non-Members: Total No. of Students: P. Number of Issues:Ave. Guest Count per Meeting:

N. TOTAL MEETING EXPENSES: Q. IRS Reporting: Total Rental Expenses: We filed form 990-N on (date): Total Food Expenses: We filed other IRS form (give form # and and date): Total A/V Equipment Expenses: www.irs.gov (put 990-N in search field) Other (specify): (note: Rebate money is not reportable income. It has

already been reported under the main AIAA tax ID number

Signature Part

• Audit committee signatures hereR. AUDIT AND BUDGET APPROVAL SIGNATURES

Chair, Audit Committee Date

Incoming Treasurer Date

Incoming Section Chair Date

Outgoing Treasurer Date

Outgoing Section Chair Date

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Last Year’s A/B Report

This Year’s A/B Report

1. Copy the budgeted income and expenses to this year’s report

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Last Year’s A/B Report

This Year’s A/B Report

This block is the actual cash you had on hand at the beginning of this year, and is the same as the cash you had on hand at the end of last year.

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Last Year’s A/B Report

This Year’s A/B Report

Just copy the entries from the plan you made at the beginning of this year, including how much cash you estimated that would be in the bank at the end of the year. The circled values should be equal.

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Last Year’s A/B Report

This Year’s A/B Report

2a Record actual income and expenses

These entries should all be ledger entries from your Section’s books.

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Last Year’s A/B Report

This Year’s A/B Report

2a Record actual income and expenses

2b Enter bank balances from date of report. The circled values should be equal.

Since the end of last year is the same as the beginning of this year, the entries indicated are identical.

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Last Year’s A/B Report

This Year’s A/B Report

3. Estimate planned income, expenses, and resulting end-of-year bank balance. The circled values should be equal.

Your planned income and expenses are all estimates, and up to your council to determine. Some councils plan to spend only what they bring in, resulting in no change in the bank balance from today.

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Form 990-N or E-postcard – Why and When?

• Form 990-N is a short electronic notice that most small tax-exempt organizations have to file with the IRS. Ensures transparency among small non-profits. Ensures that the IRS and potential donors can access up-to-

date information on your organization.

• Can only be filed electronically http://epostcard.form990.org

• Or through IRS website – www.irs.gov (put 990-N in search field)

Form 990-N (cont’d) - Who Files?

• Organizations which Are tax-exempt Have gross receipts of $25,000 or less (even if $0) Are not required to file another IRS form such as Form 990, form 990-EZ,

or Form 990-PF

• All sections and student branches except those that have gross receipts of $25,000 or more fall into the above category and must file the E-postcard with the IRS.

• Note: Rebate money is not reportable income. It has already been reported under the main AIAA tax ID number as dues income.

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Form 990-N – What Information is Required?

• Organization’s name• Any other names your organization uses• Organization’s mailing address• Organization’s website address (if applicable)• Organization’s employer identification number (EIN)• Name and address of a principal officer of your organization (use current

treasurer’s information and address, even though it will probably change from year to year. This should also be the address used for Group Exemption information.

• A statement that your organization’s annual gross receipts are still normally $25,000 or less

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Form 990-N (cont’d) – where to file

• http://epostcard.form990.org

• For more information from the IRS: www.irs.gov 990-N in search field

• There is no penalty for filing late. BUT failure to file for 3 years will result in losing tax-exempt status.

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