1. District Accounting and Finances. Presented by: Dave Houseknecht
District Accounting and Finances Presented by: Dave Houseknecht Melissa Singer
Introduction:
Number of former league officials/ADA’s present?
Similar presentation done at past Congresses for your peers
Presenters – titles and backgrounds
Collection of topics to discuss that will help you administer your district
Not operate
Topics gathered over the past years based on best practices, phone calls, s, etc…questions some of you and/or your peers have asked

2. Accounting & Finance Key Objectives
Provide an overview of annual planning and accounting for districts and leagues
Provide an in-depth explanation of league financial obligations
Discussion- How can you protect yourself from fraud
Four topics above will guide the discussion during this session
Theme:
Your responsibility as a District Administrator to keep accurate financial records
Being prudent/diligent with respect to the finances of your district
- appropriate expenses/keep good records
Be transparent
Key/Importance References:
DA Manual pages
League Operating Manual
Announcements distributed by LLI through , DA mailings, etc…
What you do will influence your leagues – lead by example

3. District Accounting Procedures
Become Incorporated
Prepare a Budget
Maintain Revenue and Expense Records
Prepare a Financial Statement
Have an Audit
Recommended to:
become incorporated
Become income tax exempt entity under LLI group process
REQUIREMENTS TO BE INCLUDED - fin stmts, tax returns
Limit liability
Shows permanency/allows for ease of transition
Ownership of assets
Budget
Project revenues
Alternatives to league assessments
Estimate expenses
Be prudent
Good documentation of revenues and expenses
Implement/practice simple basic accounting controls over each
Financial statements
Share with leagues
Submit to LLI
Audit
Again transparency

4. District Accounting Procedures
Transparency:
Accountable to constituents and beneficiaries – leagues, players, managers
Open and truthful with respect to operations, finances and use of assets
Complete reporting of activities
Annual audit
By independent parties (league presidents)
Share financial information with your leagues
Many find it easier to raise money if open about financies

5. District Accounting Procedures
Statement of Account
Distributed monthly by Little League
Detailed listing of purchases from, payments to and credits from Little League
Credit limit = $750
Payment terms = 90 days
Good Financial Standing requirement for consideration to be elected to Board of Directors

6. District Accounting Procedures
Federal/State Income Tax:
Required to file federal income tax return
Requirement of Federal Group Exemption
Notice to file federal returns sent annually by Little League International.
Detailed instructions provided
State income tax returns may be required
State filing requirements vary
Contact state Department of Revenue
Federal tax return – everybody must file
Under $50K in revenues – file postcard
Between $50K - $200K – file Form 990EZ
Over $200K – file Form 990 w/ Schedule A
International DA’s – check respective country requirements

7. District Accounting Procedures
Sales and Use Tax Reporting:
Federal exemption from income taxes is not exemption from paying Sales and Use taxes
Must pay sales tax unless re-seller exemption applies
Must pay sales tax unless exempt by state regulations
Required to submit sales/use tax returns as applicable.
Requirements vary widely by state
Contact state Department of Revenue
Seek assistance if necessary
International DA’s – check with state, providence, etc…

8. District Annual Schedule/Key Dates
Annual Meeting with Leagues 10/31
Prepare budget/share with leagues
Prepare annual financial statement/share
with leagues
Submit Financial Statements to LLI 10/31
Submit Federal Income Tax Return 2/15
State Sales and Use Tax Returns
Submit State Income Tax Return Varies
Maintain financial good standing with 9/30
Little League International – requirement
to be re-elected as District Administrator
Reminder: submission of financial statements and tax returns required under rules of LL tax exemption process
Tax exemption status will be revoked if tax returns are not submitted – costly and administratively burdensome process to get exemption re-instated

9. League Financial Obligations
Charter Application – Online Chartering Only
Online Chartering—immediate receipt, print and mail payment or pay online – convenience fee (Data Center)
Background Checks Verification
Philosophy/Timing
Charter prior to try-out or practice
Pay Fee—refunds credit or check no issue

10. League Financial Obligations
Deadline for chartering, team changes, player data and payments – tentatively June 1
Tournament Eligibility-contact Finance
Exception-Senior League
Player data does not adjust teams
Reminders by to all league officers sent April through June
Data Center-status updates for your leagues

11. League Financial Obligations
Online Tournament Applications (Data Center)
Site Live in April-received prior to play
Data Center-make sure leagues have entered in every division before making brackets
Changes allowed until September 15
Need online application even if not participating-background checks

12. League Financial Obligations
Tournament Mileage Forms
DA responsibility-not league President
Deadline September 15 in Williamsport
$1 per mile – Section, State, Division, Region
150 mile minimum per division (tentative)
Allow time for regional offices to process
Leagues will receive credits

13. Tournament Travel Fund
Restricted Fund
$200 per Team-17,000-18,000+ teams enter
$ K+ in Mileage Payments
$1M-1.8M in Travel all WS
Housing for teams, coaches, umpires at LL regionals (BB & SB) and all WS-$800K estimate
Regional Tournament Grants

14. League Finance Oversight
TRANSPARENCY
Best Practices
Separation of Duties
Documentation-never too much
Budget, Reporting, Audit Committee
Board serves members-open the books

15. How can you prevent fraud?
Little League president accused of embezzling $20,000 for vacation
New York Youth Baseball Treasurer accused of embezzling $90,000
Ex-official who stole $300K from Little League sentenced
Volunteer Little League Treasurer Charged With Embezzling More Than $100K