Financial Manual 15-16 - Nc State University · 7 " 2. Store’Receipt’ a....
Transcript of Financial Manual 15-16 - Nc State University · 7 " 2. Store’Receipt’ a....
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FINANCIAL MANUAL 2015 – 2016
Table of Contents General Information 2 Checks & Balances Financial Notebooks Off Campus Bank Accounts 2 Local Off Campus Bank Information What Is Income? 3 Dues
Collecting Dues Club Sports Allocation 3 – 11
Allocation Process Allocation Categories How to Spend Your Allocation Money Reimbursement Request Form Examples Proper Receipts Purchase Order Request Form Example Pcard
Appropriate Reimbursable Items 12 Inappropriate Reimbursable Items 12 Sample Bank Statement 13 Sample Club Sports Trip Itinerary & Travel Roster Form 15 Employer Identification Number (EIN) 16
How to Apply for an EIN # Steps in Activating EINs
Non Profit and Tax Exempt Status 16 Sponsorship Letters 16 – 18
Sponsorship Letter Examples Donations 19 – 21
Donation Letter Examples Fundraisers 21 National Contingency 21
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General Information One key to being a successful club team and student organization is keeping and following accurate financial status. Many clubs receive allocation money from the Club Sports program. However, this money is rarely enough to cover all the club’s expenses. This manual will assist you in keeping proper financial status in an organized format. Checks & Balances
• Be accountable • Don’t spend money you don’t have • President & Treasurer should be on the same page
Financial Notebooks Should Contain
• Bank account information • Bank statements • Cancelled checks • All receipts • Ledger • Reimbursements requests • Donation letters
Off Campus Bank Accounts All clubs are encouraged to have an off campus bank account and are required to do so if asking for reimbursements at any time during the academic year. This account is set up and managed entirely by the club – not the University Recreation Department. When setting up an account, make sure the address and club name on the bank account and checks looks like this:
“Club Name” at NC State University Recreation Campus Box 8111 Raleigh, NC 27695-‐8111 Most banks allow one to five people to be on the account. Make sure one of these people is the president and one is the treasurer. The people listed on your account are the only people who will be able to write checks, use the check card, and get account information from the bank. During the transition of officers, have the old and new officers visit the bank to switch/replace names on the club account. NO CLUB COACHES OR ADVISORS SHOULD HAVE ACCESS. Local Off Campus Bank Information
• Wachovia Wachovia 4530 Western Blvd 2600 Hillsborough Street 919.233.4120 919.664.8801
• BB&T BB&T
1806 Hillsborough Street 611 Oberlin Road 919.716.9665 919.716.9520
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What Is Income? Income is received from a variety of sources. Some of the more common income sources your organization might receive are, but are not limited to:
• Dues • Student government money • Clubs Sports allocation • Sponsorship • Fundraisers
Dues
• Officers and participants establish participant dues based on need • Due are supplemental funds established at a relatively moderate rate commensurate with need • Dues are deposited directed in the club’s off campus bank account • Record keeping and refund policies are necessary
Collecting Dues
• Write receipts • Avoid collecting cash • Keep a spreadsheet
o Name o Date dues submitted o Check number, cash
• Establish a deadline to pay o Repercussions if not followed
• Deposit frequently • Create an invoice and receipt for your club • Create a guideline that states if dues are refundable or non refundable and for what reasons
Club Sports Allocation Each club sport has the opportunity to receive an allocation from the University Recreation department at NC State. Throughout the academic year, clubs earn points. Clubs can lose points with conduct infractions and gain extra credit points with community service. If an item is not applicable to the club, the percentage will be subtracted from the correct amount (i.e. summer attendance). Allocation funds for an academic year run from March 1 – February 28. Allocation Process (continued)
• Submit a budget proposal • Present to Competitive Sports Advisors, Program Assistants, and Club Sports Council members • Proposals are due during the Spring semester • This will affect allocation for the 2016 – 2017 academic year
Allocation Categories The following categories are analyzed throughout the year and during the budget presentation.
• Communication • Competition/Events • Officer workshops, trainings, deadlines
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• Attendance • Adherence to policies • Budget proposal and presentation • Auxiliary income • Travel related expenses • Community service
How to Spend Your Allocation Money There are three ways to spend your allocation. 1. Reimbursement Request Form
Trip Itineraries and Travel Rosters must be submitted prior to traveling to be eligible for reimbursement. • Reimbursement checks may take 2 – 10 weeks to arrive • Club Officers will receive an email when the check arrives • All reimbursement requests for purchases made during the Fall semester are due by Friday, December 4, 2015.
Fall purchases cannot be reimbursed in the Spring semester • The Spring due date for reimbursement requests is Monday, April 25, 2016
To receive a reimbursement, the following items must be submitted: 1. Reimbursement Request Form 2. Proper receipts 3. Bank statement or cancelled check, if needed 4. Trip Itinerary & Travel Roster
Please paperclip items together – do not staple Equipment & uniform purchases must be approved prior to purchase! An example of a Reimbursement Request form is on following page.
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REIMBURSEMENT REQUEST FORM EXAMPLE
Must Include: 1. Reimbursement Request Form 2. Proper receipts 3. Bank statement or cancelled check,
if needed 4. Trip Itinerary & Travel Roster
Equipment & uniform purchases must be approved prior to purchase!
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1. Reimbursement Request Form (continued)
Proper Receipts Proper receipts should have the following: • Who the payment is to • Cost • Method of payment • Zero balance
If your receipt does not show a zero balance or is handwritten, you must also include a copy of the club’s bank statement showing this deduction (or a copy of the canceled check). There are four main types of receipts. Pictures of each type are below. 1. Club Sports Fee Payment Receipt
a. Should be used instead of a receipt book. It is more official. b. This form can be used when paying for officials, athletic trainers, EMS, or tournament entry fees c. This form must be signed by the person paying the fee and the person receiving the fee d. When submitting this as a receipt for a reimbursement, you must also include a copy of the canceled check
or a bank statement e. The fee payment receipt can be found online at the Club Sports website or with the other forms in the
University Recreation office
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2. Store Receipt
a. Typically, these are receipts you would get from purchasing first aid kits, line for the fields, and so on b. Many store receipts do not show a zero balance, but can if you ask the store while checking out
• Tape receipt to 8 ½” x 11” sheet of white paper (do not tape over text)
• If the receipt does not show a method of payment and a zero balance, then when submitting this as a receipt for a reimbursement, you must also include a copy of the canceled check or bank statement
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3. Fee Payment Receipt From a Another Club Member or an Official a. Fee payment receipt is preferred, but if you forget or lose the form, have the club send an email or letter
confirming the payment i. Payment amount ii. Method of payment iii. Date of event iv. Event Type v. Club Name and Contact
b. When submitting this as a receipt for a reimbursement, you must also include a copy of the canceled check or bank statement
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4. Hotel or Flight Receipt/Invoice a. Invoice showing flights or hotel rooms listed individually b. Must list number of rooms reserved or flight information including number of flights c. No reimbursements for club coaches’ or advisors’ travel fees d. If the receipt does not show method of payment and a zero balance, then when submitting this as a receipt
for a reimbursement, you must also include a copy of the canceled check or a bank statement
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2. Purchase Order Request Form
PURCHASE ORDER REQUEST FORM EXAMPLE
Must Include: 1. Purchase Order Form 2. Picture and/or exact item information to be ordered 3. Company’s EIN Tax ID #
Purchase Orders typically take longer to complete or be paid.
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Picture and/or exact item information to be ordered:
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3. Pcard The Competitive Sports Advisors have credit cards your club officers may use for purchases by making an appointment with your advisor. These credit cards can be used for a variety of purchases (i.e. flights, first aid supplies, etc.).
Appropriate Reimbursable Items Items which ARE considered reimbursable expenses include, but are not limited to:
• Medical and safety items (i.e. First Aid Kits, supplies) • Lodging • Entry fees (i.e. tournaments, leagues, clinics, workshops) • Dues (i.e. conference, league, regional, national) • Insurance • Airfare • Officials • Facility rental
Equipment related expenses are limited. If your club needs to purchase any equipment (including uniforms), please submit a proposal for purchase.
Inappropriate Reimbursable Items Items which ARE NOT considered reimbursable expenses include, but are not limited to:
• Food and drink • Gas • Rental vehicle fees • Coaching and/or instruction • Coaches’ related expenses (i.e. lodging airfare) • Equipment (i.e. uniforms, tshirts for sale or given away to anyone – club members, public)
Equipment related expenses are limited. If your club needs to purchase any equipment (including uniforms), please submit a proposal for purchase.
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Sample Bank Statement
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Sample Canceled Check Sample Club Sports Trip Itinerary & Travel Roster Form Sample Travel Roster is on the following page.
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Sample Trip Itinerary & Roster
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Employer Identification Number (EIN) An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. Generally, businesses need an EIN. An EIN is a nine-‐digit number the IRS assigns in the following format: XX-‐XXXXXXX. There are many ways to apply for an EIN. How to Apply for an EIN # • Phone
▪ Obtain an EIN immediately by calling the Business & Specialty Tax Line at 800.829.4933, between 7 am – 9 pm Monday through Friday.
• Mail ▪ The processing timeframe for an EIN application received by the mail is four weeks. Complete this form
(http://www.irs.gov/pub/irs-‐pdf/fss4.pdf). Applying for an EIN # -‐ Online Directions
1 Go to the Online EIN Application 2 Read instructions and click on “Apply Online Now” 3 Read instructions and click on “Begin Application” 4 Scroll to bottom of list and select on “View Additional Types including Nonprofit/Tax-‐Exempt Organizations,”
click “Continue” 5 Choose either “Community or Volunteer Group” or “Social or Savings Club” depending on which best describes
your group. Click “Continue” 6 Read description to confirm your selection. Click “Continue” 7 Fill out remainder of required information 8 Print out and retain a copy of your CP575 Confirmation. Your current and future officers will need this document
for tax filing purposes. Once you have received a Federal ID Number, keep a record of it in your organization’s permanent files and e-‐mail the document to the Assistant Director or Coordinator Competitive Sports. • Unincorporated Associations: If your organization is going to handle funds, it is recommended you obtain an EIN for
the organization so that you can open a bank account under the organization’s name. It is not recommended opening a bank account in an individual’s name. If your organization will not be handling any funds, an EIN is probably not necessary.
• Corporate Nonprofits: Organizations must have an EIN number before applying for tax-‐exempt status.
Steps in Activating EINs
1. To Find out what your club’s EIN # is call 1-‐800-‐829-‐4933 2. Search by:
a. Club Name i. ex: Women's Club Ultimate at NC State or NCSU Women's Ultimate Club
b. Club address i. University Recreation
Campus Box 8111 Raleigh, NC 27695-‐8111
3. After calling to get your EIN #, you must call to activate your EIN #. Call the CIN IRS Center: 1.866.816.2065.
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Guidance for Completing a W-‐9 Student Government allocates funds to student organization in good standing each year to assist organizations in hosting events and promoting their organizations and NC State with respect and inclusivity. It is required that student organizations submit their W-‐9 form when applying for Appropriations.
• Name: Enter the organization’s legal name on the “Name” line and any “doing business as” (DBA) name on the “Business name/disregarded entity name” line.
• Federal Tax classification Check the appropriate box: o Corporate Nonprofits o If your organization has not received federal tax-‐exempt status, check the Other box and specify
nonprofit corporation. o If your organization has received federal tax-‐exempt status, check the Other box and specify Tax-‐Exempt
Organization. Also check the box for Exempt Payee. o Unincorporated Association: Check the Other box and specify unincorporated association.
• In Part I, enter your EIN that you received through filing Form SS-‐4. • Sign and date.
Non Profit and Tax Exempt Status Non-‐profit status is a state law concept. Non-‐profit status may make an organization eligible for certain benefits, such as state sales, property, and income tax exemptions. Although most federal tax-‐exempt organizations are non-‐profit organizations, organizing as a non-‐profit organization at the state level does not automatically grant the organization exemption from federal income tax. It is strongly encouraged your club makes an appointment with Student Legal Services at NC State to see if non-‐profit status is necessary for your club.
Sponsorship Letters It is recommended to call a business prior to bringing the letter to them. Let them know:
• Who you are • Your affiliation with NC State • Why you need their help
Deliver letters to businesses to make face to face contact.
• Address to a manager • Make sure everything is spelled correctly (i.e. names, grammar) • Avoid “To Whom it May Concern” • If donations are tax exempt, include the necessary information in the letter
Keep track to which businesses you called and actually delivered letters to.
• Business name • Location • Who you spoke to & which club member called • Did you grab an email address? • Which number you called • Date and time you called • Date and time a letter was delivered • Employee it was handed to • Did they show any interest?
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• Was there a time frame they said they could get back to you by? o If not, follow up with a phone call or email within a week
§ Ask if any additional information is needed or if they have questions • Which club member made the delivery
Remember – it is easier to say no to a letter than a person!
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September 12, 2013 Harris Teeter Tim Todd, Manager 501 Oberlin Road Raleigh, NC 27605 Dear Tim: The Record Exchange is a beginning of the year event hosted by the Men’s and Women’s Ultimate Clubs at NC State University to welcome students to the NC State campus community. Students can experience the fun of NC State with sports challenges, interactive games, food, prizes and giveaways. Record Exchange will be held on Sunday, August 17 from 5:30 – 8:30 pm on Lower Miller Fields located off Morrill Drive. In 2012, the event drew crowds of more than 500 attendees. This year, the Men’s and Women’s Ultimate Clubs are extending the opportunity to various local organizations and businesses to sponsor the event and maximize their exposure to the campus community. In return for your donation of water Harris Teeter will receive:
• Logo placement on event t-‐shirt • Logo with hotlink placement on Record Exchange website and sponsor recognition page • Verbal recognition during event
Thank you for your interest and support in helping to provide quality programs to our students. If you have any further questions, please do not hesitate to contact me. I look forward to hearing from you soon. Sincerely, “Name” “Club Officer Position” “Club Name” at NC State University University Recreation Campus Box 8111 Raleigh, NC 27695 “contact phone number” “contact e-‐mail”
SPONSORSHIP LETTER EXAMPLE 1
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Your club should know if a company has donated in the past. Choose to say either:
• Thank you for sponsoring our student organization over the past # years by providing us with…
• We would like you to consider becoming a sponsor…
Explain what a Leadership Development Series meeting is.
September 12, 2013 GoPack Store Joe Wolf, Manager 652 Teeth Drive Raleigh, NC 27695 Dear Joe: The Department of University Recreation at NC State would like to extend an invitation for your business to become a supporting sponsor/partner for the Men’s Ultimate Club at NC State University. Each year, the Men’s Ultimate Club travels to various tournaments around the state and East Coast. In 2012, the Men’s Ultimate Club at NC State took home the honor of National Championship. This year, the club is practicing hard and reaching out for community sponsors to assist the club with high travel costs associated with a trip to the National Tournament Dallas, Texas. If you have been a previous sponsor/partner for our Club, we would appreciate your support once again. If you are new to this program, we would like you to consider becoming a new sponsor/partner by establishing your business as a part of the growing network of community supporters whom our participants can learn more about. Just by offering your product at one Leadership Development Series meeting allows you the opportunity to let our participants know more about your business. We anticipate approximately 45-‐65 club officers will be in attendance at each meeting every month. By being involved with this event, your business would receive additional advertising through the use of your signage/logo being placed on:
1. Club banners displayed at events 2. Flyers and correspondence distributed through email to all participants and visiting teams 3. Club tshirts
This advertising opportunity will reach a large amount of students who participate in NC State University Recreation programs and facilities each year. The beginning level of support we are requesting includes monetary donations for our National Tournament travel fees. We hope you will consider partnering with us, and we will follow up with you in the near future. If you have any questions, please feel free to contact us. Your time and consideration is greatly appreciated. Sincerely, “Name” “Club Officer Position” “Club Name” at NC State University University Recreation Campus Box 8111 Raleigh, NC 27695 “contact phone number” “contact e-‐mail”
SPONSORSHIP LETTER EXAMPLE 2
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Donations Clubs can accept donations from individuals or companies. However, clubs not considered non-‐profit should not mislead individuals or companies into believing their donations are tax deductible. Clubs not considered non-‐profit cannot accept donations which are tax deductible unless the Club becomes a non-‐profit organization. For more information on how to become non-‐profit please contact Student Legal. Recommendations
• Deliver a letter thanking a business/individual for sponsoring your organization • It is always a nice gesture to include a picture of the club saying “Thank You to Our Sponsors” with signatures • If your club is non-‐profit, include your tax ID number
“Date” Dear ____________________, On behalf of “organization name” at NC State, I would like to thank you for your generous donation of $_______. Your contribution makes it possible for us to “state purpose”. Since our organization’s inception in “date organization started”, “organization name” has:
• “briefly state highlights”. In “part or current year”, we have:
• “briefly describe growth or goals achieved” This is only possible because of thoughtful contributions from people like you. In “current or coming year”, we plan to:
• “briefly state continued efforts or expected growth” As you know, the cost of “brief description of what organization does” does not go away. We hope for your continued support in the future. No goods or services of any value were or will be transferred to you in connection with this donation. (OR) The estimated value of goods or services provided in return for your donation were $_____. Please keep this written acknowledgment of your donation for your tax records. Our tax-‐exempt number is XX-‐XXXXXXX. Once again thank you for your generous donation. Sincerely, “Name”, “Club Officer Position” “Club Name” at NC State University University Recreation Campus Box 8111 Raleigh, NC 27695 “contact phone number” “contact e-‐mail”
DONATION LETTER EXAMPLE 1
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Dear ____________________, “Club Name” at NC State thanks you for your donation of “donation items or dollar amount”. This in-‐kind donation greatly helps our organization sustain itself. “Club Name at NC State” is a 501(c)(3) tax-‐exempt nonprofit organization so your donation is applicable for IRS tax credit. Our tax-‐exempt number is XX-‐XXXXXXX. We sincerely appreciate your donation. “Name” “Club Officer Position” “Club Name” at NC State University University Recreation Campus Box 8111 Raleigh, NC 27695 “contact phone number” “contact e-‐mail” Fundraisers All fundraisers taking place on campus must be approved by Student Involvement through a Solicitation Permit. The University and University Recreation does not regulate fundraisers which take place off campus. Your organization’s fundraisers should follow legal and ethical standards. National Contingency A National Contingency fund is established every year by Competitive Sports. The purpose of this funding is to assist clubs or individual club members who are participating in a National Tournament. A proposal is required to submit to the Club Sports Council.
DONATION LETTER EXAMPLE 2