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