How Extension Districts Can Serve 4-H Clubs and Learning Communities with Fiscal Management Iowa Extension Council Association Iowa 4-H Youth Development ISU Extension and Outreach County Services in cooperation with the Office of Auditor of State - Iowa

Why Make The Change: Public Funds and Purpose* Public funds, as defined in Iowa Code Chapter 12C.1, are those funds owned by a public entity such as a county extension district. This includes both tax and non-tax monies. Security/management of the club funds have the same requirements as master gardeners, youth committees and youth councils. All public funds have the same legal requirements for accounting, reporting, auditing, proper signatures, segregation of duties, publishing, bonding, investing and uniform financial accounting procedures. *Review Iowa Code 176A.8.2 and county fiscal policy, as needed

Guiding Principles 4-H Club and Extension District Fiscal Management The state auditor has reviewed extension districts fiscal policy and Iowa Code determining that extension councils should maintain the accounting records and funds for 4-H clubs.

Guiding Principles 4-H Club and Extension District Fiscal Management To support clubs, extension district serves as the depository and provides a separate budget line for each club within the county accounting system. These funds carryover from year to year. The club funds are annually audited in each extension district. Clubs will maintain a charter issued by USDA and obtained from the National 4-H Headquarters.

Guiding Principles 4-H Club and Extension District Fiscal Management A partnership agreement outlines the expectations and responsibilities of club and extension district (council). Extension district will: Provide payment for reimbursement within the billing cycle. Provide club a financial report with cutoff date the last day of the month (bank statement). Provided reports on request. Receipt all revenue, deposit and post revenues to the club account. When requested provide a W-9 to any business.

Guiding Principles 4-H Club and Extension District Fiscal Management Extension district also will: Provide a receipt to the club representative when funds are brought to the extension office. Include all checks, deposits and transactions on the monthly reports. To expedite payment, accept photos/scans of receipts sent by electronic means; originals to be provided. Maintain an inventory summary for equipment purchased/owned by the club; updated annually.

Guiding Principles 4-H Club and Extension District Fiscal Management Extension district also will: Provide training on processes/interpretation of fiscal reports for club members, families, staff and volunteers. With communication, produce checks for time sensitive events/activities. Include transaction details on reports when provided by the club.

Benefits to the Clubs and Learning Communities Assist treasurer and/or club members with monthly and year-end annual financial reports. Sales tax exempt status offered on all club purchases. Staff use of extension district credit card to assist clubs with purchases. No need to invoice a club for payment; accounting practices support club payment decisions (i.e. T-shirt sales, camp support, 4-H participation fees, etc.) No need for club to have an Employer Identification Number (EIN) or bank signature card.

Benefits to the Clubs and Learning Communities Funds raised by clubs are audited annually. Receive training to expand club volunteer, treasurer, member understanding of club finances, which enhances leadership and confidence in money management. Focus for clubs becomes budgeting/financial management. Clubs may annually submit their treasurer’s book for review by volunteers/staff. Club volunteers/members no longer need to reimburse themselves for expenditures.

Benefits to the Clubs and Learning Communities Should a club disband, the funds are used for county 4-H activities determined jointly by the club and extension council. Training opportunities on fiscal management, budgeting and process will be provided. Partnership Agreement outlining expectations is signed. Club volunteers/families build a stronger relationship and have more frequent communication with extension district staff and council.

Expectations of 4-H Club and Learning Community Request reimbursement for expenses by identifying who the check is made payable to and purpose of the payment (i.e. food for meeting, club activity). Club minutes may serve as documentation to generate payments. Provide receipts for all purchases, including extension district credit card. Provide electronic communication and/or minutes approving a payment. Monitor balances. Provide itemized list of revenue sources for transaction detail. Direct funds raised by club to be deposited into club’s budget line within extension district operating fund.

Extension Staff Support Deposits and generation of checks are completed during normal operational timelines and/or as needed. County credit card is used by staff to make purchases on behalf of clubs when possible. Sales tax exemption is used. Invoicing clubs for payments completely ceases. Electronic notification of payments and delivery of financial reports becomes the norm. Documentation of transactions are maintained and audited. While there will be new tasks to be undertaken by staff, many other functions will no longer be needed. Will provide educational opportunities for training.

Cooperative Timeline Summer/Fall 2018 Councils begin discussion with clubs. Extension district provides depository services effective immediately. Clubs begin the process of passing their funds to the extension district operating fund by contacting the extension council and staff. Clubs should be sure that all checks and deposits have cleared before transferring funds and closing club bank account. Youth and volunteer training commences. June 30, 2019 All Iowa clubs have completed the process. Training club officers becomes an annual process.

Working Together and Serving You 4-H clubs and learning communities that raise or accept funds to support their 4-H activities, work with their county extension staff to manage the funds within the county extension district financial management system. The funds are accessible to the club and each club’s account is managed separately for tracking purposes. The funds are in a state audited system that reduces risks and administrative burden to club leaders and members. Extension councils will be in compliance with Iowa Code and clubs will be following National 4-H Guidelines. Iowa 4-H Youth Development, Iowa State University Extension and Outreach and the Iowa Extension Council Association support this move to better serve youth and volunteers in the Iowa 4-H program.

We will work to answer any questions you have Iowa Extension Council Association ISU Extension and Outreach County Services ISU Extension and Outreach Regional Directors Thank you for your leadership and dedication to working with Iowa youth