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