What questions do you have? Please write your questions on an index card. We will review at the end to be sure we covered all questions. 4/25/2015 Rotary

What questions do you have?

Please write your questions on an index card.

We will review at the end to be sure we covered all questions.

4/25/2015Rotary District 75701


Rotary Club Treasurer Training

Cynthia PageDistrict 7570 Asst. Treasurer

Rotary Club of Harrisonburg-Massanutten

Jim Ridenour District 7570 District Treasurer

Rotary Club of Staunton-Augusta

Who is here today?

NameClubHow long in Rotary?How long as Treasurer?



Introduction Purpose: To Define the Roles and

Responsibilities of a Rotary Club Treasurer

It is vital that each Rotary Club exercise impeccable fiscal responsibility to optimize the use of its funds and maintain trust in the community and amongst the club membership

“For a small piece of paper it carries a lot of weight.” For the Love of Money – The O’Jays


Topics• Treasurer’s Role and Responsibility

• Resources• What is expected of you?• Club Budget• Financial Records & Accounts• Communication: Club, District, RI, IRS• Financial Reporting• Fiscal Control• Best Practices

• Summary & Questions


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Today’s SessionYour Participation is KeyAsk Questions AnytimeShare Your InsightsUse Training MaterialsFeel Free to Move AboutPenny for my thoughts


Resources

Rotary Club Bylaws (Manual Of Procedures 2013)

– Article 4 Section 7

Available on District 7570 web page


Click on District Downloads

Scroll Down


Resources

Rotary Club Treasurer’s Manual– Available on RI web page


club treasurer’s manual


What is expected of you?Managing funds

– Planning, directing, monitoring, organizing $Collecting and submitting dues and feesPaying billsReporting on the state of your club’s

financesDeveloping a budgetPreparing your successor


What questions should you ask?

Where can I get a copy of last year’s budget?

Can you help me understand how it was put together?

Where are the bank accounts?Who has signature authority?How do I get online access?Do we have any debt?


What questions should you ask?How are dues billed and collected?What do I do with Foundation Gifts

(sustainer dues)?What paperwork do I need to file and with

who?Can I get a copy of our club bylaws?What caused you the biggest headaches?What do you wish you had an opportunity

to change?



Overview: Role of the TreasurerManual of Procedure page 8

Handling Club Funds – part 1

At the beginning of each fiscal year, the club’s board of directors must prepare or cause to be prepared a budget of estimated income and estimated expenditures for the year, which, having been agreed to by the board, shall stand as the limit of expenditures for the respective purposes, unless otherwise ordered by action of the board.

All bills shall be paid by the treasurer, or other authorized officer, only after approval by two other officers or directors. A qualified accountant or other qualified person must make an independent review of all the club’s financial transactions each year.


BudgetBudget reflects the Club’s Annual

Plan Good budgeting is key to Club

successInvolve the Board of DirectorsAsk questions


Budget

Find out about all club activitiesLearn about the club’s cash flowBe conservative in estimatesPlan a favorable balance at year

endObtain Board approvalCommunicate in a Club Assembly

Budget Revenues

Club dues – Include district dues, RI dues

Guest mealsFund RaisersSplit the potHappy DollarsWhat else?



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Budget Expenses – Club Level Club Administration

– Printing – Postage– Badges/Pins/Certificates– Meals– New member packets

Committees (Authorized expenses)– Projects– Donations

Miscellaneous Expenses Contingency Fund Special Funds What else?

Go back though the prior year reports or

checkbook to capture details.


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Budget Expenses – beyond the Club Rotary International

– Dues (including Insurance, Rotarian Magazine, Council on Legislation)

District 7570 Dues and computer fee RI Convention and District Conference Training

– PETS – DTA– RYLA

What else?

Talk to your president and

committees to see what their goals are

for the year and determine budget

impact.


Rotary International Dues & FeesReference: Manual of Procedure 2013

Per Capita Dues paid to RI

• Each club pays the following annual per capita dues to RI for each of its members, other than honorary members:

• $27.50 per half year in 2015-16 [$28.00 in 16-17]. • Paid 1 July and 1 January, based on the number of members of the club

on these dates.

• Prorated dues for Rotarian joining between July 1 – Jan 1 – July 1.

• If a club has fewer than 10 members, it shall pay additional per capita dues of an amount equal to the amount it would have paid if it had 10 members.


Rotary International Dues & Fees (cont.)

Rotarian Magazine

$6.00 per Rotarian per half year in 2013-14 (established by RI BOD action)

Insurance

$2.74 per member (July 1 only). New rate in May 2015.

Dues for Representation at the Council on Legislation

$1.00 per member (July 1 only)


District 7570 Dues and FeesPer Capita Dues

$23.00 per Rotarian in 2014-15 Based on club roll as of September 30Due December 1 – if not paid by January 1, 5% penalty assessed Invoice sent to club treasurer by PMAILAuto debit option available

Website & Database Maintenance Fee

$35.00 per club – payable with per capita dues

Dues Summary


for amount frequency annual when paid RI dues $ 27.50 half year $ 55.00 July 1 Jan 1Magazine $ 6.00 half year $ 12.00 July 1 Jan 1Insurance $ 2.74 per year $ 2.74 July 1COL $ 1.00 per year $ 1.00 July 1District dues $ 23.00 per year $ 23.00 December 1Total annual $ 93.74 Per quarter $ 23.44

Sample budget


Number of meetings

Number of members vs number of members billed

Special Project

Better to keep fund raising separate


Meal cost varied by number of weeks Fundraiser

expenses


4/25/2015Rotary District 757029Monthly cash flow varies Very slim margin!


Time for a stretch break.


Overview: Role of the TreasurerManual of Procedure page 8

Handling Club Funds – part 2

At the beginning of each fiscal year, the club’s board of directors must prepare or cause to be prepared a budget of estimated income and estimated expenditures for the year, which, having been agreed to by the board, shall stand as the limit of expenditures for the respective purposes, unless otherwise ordered by action of the board.

All bills shall be paid by the treasurer, or other authorized officer, only after approval by two other officers or directors. A qualified accountant or other qualified person must make an independent review of all the club’s financial transactions each year.

Approval and Auditing – questions to ask?Who is going to approve bills?How will approval take place?Does your club have an audit committee?What is their role?How is the annual audit going to be taken

care of?



Treasurer Communication

Club MembersClub SecretaryClub President/BoardCommitteesDistrict 7570Rotary International & Rotary Foundation

Dues PaymentsAttendance Financial ReportingBudget PerformanceDues & GrantsDues, Grants, & Foundation Contributions


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Membership Status

Member Dues PaymentRecords

Periodic Review

Treasurer Responsibility

Is Member Current and In Good Standing?

Remain on ClubRoster & Invoice

Next Period

Yes Remove fromClub Roster &Final InvoiceNo

Remove From Active Invoice

System

Club AttendanceRecords

Secretary Responsibility


Communications – District 7570District Annual Dues Payments

– Electronic Drafting– Determined at District Legislative Assembly

(PETS)District GrantsGlobal GrantsCheck District 7570 Website

– http://www.rotary7570.org/

Financial goals set at PETS – talk to your

President and Board to prep

your PE



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Communications - RI

Rotary Foundation Giving– Annual Programs Fund– Sustainer Payments– Permanent Fund– Polio Plus Fund

Visit Rotary International Website– http://www.rotary.org/

Rotary Foundation Submission Instructions


Choose Committees and Downloads

Scroll Down to…

Rotary Foundation Submission Instructions


Transmittal Form


Log in

2.1 Rotary Foundation Transmittal


Rotary Foundation Communication

undesignated = Annual Fund - Share

IRS – Tax Filing Rotary Club is 501(c) 4

– Gifts to the club are not tax deductible– If you have a foundation it is a 501(c) 3– Gifts to The Rotary Foundation and club foundations

are tax deductible Club must file a form 990-N if gross receipts

>$25,000 (includes meal payments) If year ends June 30 – due by Nov 15 Fail to file for 3 years – may lose tax exempt

status More info at irs.gov


Ask a CPA in your club for help



Financial Reporting

Budget Budget v. Actual Income & Expense Aged Invoices Fund Raising Foundation Contributions Reserve Funds Audits/Reviews Tax Returns (Form 990)

Board & Club Board & Committees Board Board & Secretary Board & Committees Board & Foundation Committee Board Board & Club Board & IRS


Financial Records & Accounts Checking Accounts

– Update Signature Cards– Update Resolutions– Statements & Checks– Internet Banking Access– Reconciliations

Savings and Investment Accounts Statements

Financial Reports - Sample reports in Club Treasurer’s Manual– Balance Sheet– Profit & Loss Statements– Budget v. Actual


Financial Records & Accounts Rotary Foundation

– Contribution Records– Sustainer Giving– Special Gifts

Minutes of Meetings (Coordinate with Club Secretary)

Indemnity Bond, if applicable

Tax Returns & IRS Documentation

Audit Reports or Committee Reviews


Fiscal Control

What is Fiscal Control?– Insuring proper checks and balances are in

place to protect the integrity and funds of the Club

– Systems to prevent things from going wrong; to check for

Errors, mistakesIntentional misdeeds

Fiscal ControlUse written agreements for club activitiesDiscuss bonding/liability insurance

– Clubs in US have general liability and director and officers/employment practices liability insurance through RI

Report oftenUse audit committee Separate duties among club membersGet approval for bill payment



Communications - Club

Invoicing &Collection of Funds

(Dues, Meals, Contributions etc.)

Bank DepositBank Statement

Make Payments

Segregation of Duty Needed

Reconcilement&

Oversight

Transactions EnteredInto

Accounting System

Financial ReportsGenerated

FormalReport toBoard & Approval

Segregation of Duty Needed


Committee Responsibility



Best Practices Plan for Succession and Transition

– Set term limit for Treasurer– Appoint an Assistant Treasurer– Bylaws May Require Amendment

Establish Segregation of Duties– Approval & Payment of Bills– Reconcilement– Check Signing Authorities– Opening Accounts– Annual Reviews or Audits

Bonding – talk to your club


Best Practices Formalize Budgeting Work with Your Bank

– Utilize Online Banking Capabilities– Minimize Fees

Meet and Report Regularly– Board and Committees– President– Secretary

Use an Accounting System– DaCdb (Smaller Clubs), Excel– QuickBooks or Peachtree (Larger Clubs)


Big Sis Advice Be sure sustainer contributions are paid to club before

remitted

Bill dues regularly so members know when to expect billings

Stay current with deposits, bookkeeping, reconciliations and reports

Talk to your board about how much they want to have in reserves

Keep records for a minimum of three years after 990 filed

Big Sis AdviceExpect to get money/paperwork/etc. every

time you go to a Rotary event

Don’t be afraid to implement new controls if they are needed – you may set the new standard for how its done

Encourage new members


Timeline for budget development January – tell PE and committee chairs that you

are starting to think about new year’s budget and will be asking for their input

Spring – contact each committee chair and ask for budget request for coming year

March – prep PE for goals at PETS April/May – discuss with PE and prepare draft

budget May/June – prepare budget & present to board July 1 – new year All year long – monitor and report



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Tools & Resources District 7570 Website

– http://www.rotary7570.org/– DaCdb

Rotary International Website– http://www.rotary.org/– Download Library

Documents & Manuals– Club Treasurer’s Manual (220-EN)– 2013 Recommended Club Bylaws

Article 4, Section 6 (Duties of Officers) Article 12 (Finances) Article 14 (Resolutions)

– Club Constitution Article 11 (Admission Fees and Dues) Article 12 (Duration of Membership) Article 14 (Rotary Magazine Subscription Required)

– Rotary International 2013 Manual of Procedure (035-EN, page 7) The Rotary Foundation Multiple Donor Form (094-EN) Consulting services, other sources

http://www.rotary7570.org/



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Help for Club Treasurers Jim Ridenour, District Treasurer

– [email protected]– 540-448-0308

Cynthia Page, District Asst. Treasurer– [email protected]– 540-421-9928

www.rotary7570.org Go to Member access - Help tab for DaCdb FAQ, Help Desk, contacts, and more

mailto:[email protected]

mailto:[email protected]



Summary Key Learning Points

• Role and Responsibility• Resources• What is expected of you?• Club Budget• Financial Records & Accounts• Communication: Club, District, RI, & IRS • Financial Reporting• Fiscal Control• Best Practices

Questions & Feedback



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