1. Things Financial + Oct 2015

2. Training Outline Introductions NLC Treasurer overview (from National)
Budgets
Financial Year
Finance Process Overview
Intro to NLC financial program spreadsheet
General questions

3. Financial Leadership Develop and implement Corp’s financial plan
Your annual program drives your budget
Understand what you get for what you spend
Assign responsibilities for
authorizing & monitoring
Formal reviews part way
through the year
Annual financial plan is your budget
You should know what you are buying and what you will get.
To do this, two reports, one showing costs, another programs
For example, one report could show planed expenditure for food, transportation, rentals, travel expenses, total $20,000
Another report could show the same $20,000 but show the week-end sail programs, the number of drill days, and what the travel was for
People should understand their authorities and their accountabilities. This is part of your financial leadership.
Hold accountability for what they have authority to spend. And provide them with instruction.
Without instruction they can say I didn’t know

4. Financial Leadership Branch President’s Role
Help the Branch Treasurer implement good stewardship
Spend time with Treasurer and Corp
Develop plans and associated budgets
Implement good stewardship
Review reports monthly
Have audits done
Div Pres role: Help treasurer. Policies and procedures important.
Culture equally if not more so.
Branches often need help.
Let Branch presidents and their treasurers know finance plays important role is Navy league fulfill its strategies and objectives
Provide direction and support in developing a sound stewardship regime.
Help them develop capability to provide meaningful reports and demonstrate that you use them

5. Financial Leadership Branch Treasurer’s Role
Work with President, Branch and Corp to create an annual budget
Measure Financial Performance
Keep records
Report results
Support DND LSA claims
Annual CRA Charities Return
Response to Audit
Looked at Stewardship and Leadership. Now look at Measurement.
Financial Measurement is one of the keys to measuring organizational performance.
So what is financial measurement all about?

6. Cash Accounting….. Simpler method
Transactions are based on the date cash flows in or out of the bank account
Date cheque signed secondary
Simple Accounting method
Requires some knowledge
Navy League of Canada spreadsheet basis

7. Budgets: Overview Financial Plan for what you want to do
Financial management performance tracking
Income
Expenses
Surplus or deficit
Assets

8. list 5 mandatory expenses
Mandatory Expense Item
Annual cost Estimate $
Total mandatory expenses

9. list 3 discretionary expenses
Discretionary Expense Item
Annual cost Estimate $
Total discretionary expenses

10. list 5 sources of revenue
Revenue Item
Annual Estimate $
Total revenue

11. Budget Budget Item Total Revenue Mandatory Expenses
Annual Estimate
Total Revenue $
Mandatory Expenses
Discretionary Expenses
Revenue – expenses = surplus or deficit

12. Sub-accounts Keep track of specific fundraising or expense activities
All must flow through Branch
May use separate bank account, or use separate line entries in NLC system
All must be visible and accounted for to Branch and Division
All subject to Annual Audit

13. What is best for your Branch?
Multiple Year Ends
Corp training year: September to June
Government financial year: April to March
Branch Financial Year End – no standard
What is best for your Branch?
Depends on your perspective
Always a compromise
Always will cross over someone’s YE
Needs some “pre-planning” for budgeting

14. Start of Financial Year
Identify Corp training needs
Identify Other Corp or Branch expenses
Create Fundraising plan
Draft Budget 2 months before Start of New Financial Year (may differ from Training Year)
Final Budget needs approval before start (one month ahead is good practice)
Branch needs to approve FY Budget

15. During Financial Year Only items in Budget can be expensed
Branch and Treasurer have information
Track performance and discuss
Revisions can be made mid-year
Identify changes needed to Branch
Branch needs to approve revised Budget

16. Financial Year End Branch will Audit Financial Statements
Summary of Expenses
Summary of Revenue
Summary of Assets and Financial Position
Review what occurred and why
Use as a start point for the next year

17. NL Finance Process Overview
Track Disbursements (Expenses & Purchases)
Create Budget
Input to NL spreadsheet
Print
Financial Reports
Check previous years as a reference and start-point
get input from Officers
get input from Branch
see if new fundraising or expenses are proposed
add any new fields to NL budget spreadsheet if needed
Produce “Draft” budget with new estimates
get approved from Branch
any updates need a new Branch Approval
Track
Receipts
(All Revenue)
Monthly:
1) Statement of Receipts and Disbursements
2) Statement of Assets and Liabilities
3) Optional to include details for each item
Annual:
1) Annual Branch Report
2) CRA Charities Return
3) GST Rebate
4) Auditor’s Report
5) DND Local Support Allocation (LSA)
Check against budget description for input location
Input into spreadsheet by bank date as system is cash based (not accrual based)
Option to record cheque but only put the value in the spreadsheet when cleared by the bank
Verify items are acceptable and original receipts are provided

18. Example
JTC Budget and Financial Statements

19. Questions?
General questions?