Book Keeping 101 “How To Keep Track Of Cadet Funds”

Budget Ledger Paper Trail Petty Cash Reconcile Audit Financial Statements Problem Solving Overview

Budget Support Committee and CO should develop this together at the beginning of each Training Year (September) using the Training Plan developed by the CO as a guide. See attached sample of Budget

Ledger Every Support committee should keep a Ledger to track deposits and cheques Debit and Credits be be show as “In & Out” Be sure to record the cheque number Put down as much detail as possible in the explanation column, ie.the name of the Company or what the deposit was for. If you are reimbursing someone, make sure you explain what it is for. See attached Sample of a Ledger

Sample of Simple Book Keeping February 2004 DateChq.#ExplanationDebitCreditBalance (IN) (OUT) Feb. 1Opening Balance BF January$5280. Feb. 7Deposit - Tag Day Funds$2000. Feb John Smith -Reimbursement Winter Indoc $500. (Jan.) Rations from Costco Feb Rattlesnake Point Conservation Area$230. Feb Acme Bus Co.- Trans. To Conservation Area$500. Feb Reimbursement to Mrs. Brown for Valentine $600. Dance - Food, & DJ. Feb. Balance$5450. Feb. 28Bank Charges per Jan. Bank Statement$ 5. Feb. 28Bank Interest per Jan. Bank Statement$.50 Feb. 28Final Balance$

Paper Trail Must have Receipt for every cheque written (Originals Only) Explain what the Reimbursement is for Copy of Deposit Slips must be kept “Request For Funds Form” provides a good paper trail. See attached form No Blank Cheques Two Signing Officials on each cheque (Not related to each other) Make sure Support Committee is reimbursed for advance funds given for Mandatory Training

CO’s Petty Cash $200 - $500 Receipts must be given to the Support Committee to offset expenses

Reconcile 1+1 = 2 This should be done each month when Bank Statement arrives Step 1 - Compare bank statement to the Ledger for that month and check off on your ledger the deposits and cheques that have been cleared through the bank. Step 2 - On a separate piece of paper, put the ending balance for the month from you ledger and the ending balance from your bank statement. Step 3 - Make adjustments such as adding interest and subtracting bank charges from the Ledger balance and subtracting cheques that have not been cashed from the bank balance. Step 4 - After making adjustments both balances should be equal. Keep reconciliation paper with your records. See sample attached.

Reconcile With Bank Statement For the Month of February Ending Balance Per Ledger$ Bank Charges Interest +.50 Balance$ Ending Balance Per Bank Statement$ Outstanding Cheque#13 Balance$

Audit At the end of each training Year, the Support Committee should ensure that the books are audited.

Financial Statement Must Be Submitted To League Office Midway through the training year and at the end of the training year ie. January & June See sample of Financial Statement attached

Problem Solving ? ? ? ? ? ?

Problem #1 The Support Committee has planned a Car Wash to raise funds for the Cadets. One Committee member has purchased several items such as soap, buckets and brushes. Pizza and soft drinks were purchased at noon for the Cadets and the funds were taken out of the car wash proceeds. The cost of the pizza and refreshments came to $ After the monies were collected and counted at the end of the day, the member that purchased the soap, etc. asked to be reimbursed for their out of pocket expenses of $52.30 from the total funds collected. The cash was handed over. That left only $230. profit on the car wash. How would you have handled this so a clear paper trail is evident?

Problem #2 The Cadets are going to a conservation area for the weekend. The cost is $8.00 per Cadet. The Conservation are wants to be paid upon arrival by cheque. However since the CO is unsure of how many Cadets will actually show up, he asks the Support Committee to sign a blank cheque and he will fill in the amount later. What alternatives does the Support Committee have?

Problem #3 The Commanding Officer asks for her Petty Cash to be topped up to $200., but has lost several of the receipts showing what was expensed from the Petty Cash. What should the Support Committee do?

Problem #4 The Commanding Officer is planning a recreational activity. The plan is to take only the six Senior Cadets skiing for a weekend. The cost for accommodation, meals, ski rental and transportation will come to approximately $2000. There is enough funds in the bank to cover this, but the Support Committee feels that this is unfair to the other Cadets and for the same amount of funds twenty Cadets could go skiing at a local ski hill for one day. Does the Support Committee have the right to refuse the funds? What do you suggest they do?

Problem #5 A Cadet Corps held a Tag Day. After the Officers and Support Committee finished counting the funds, one of the Officers insisted that they be reimbursed from the tag day profits for rations purchased for an exercise that was held 2 weeks prior. He promised to hand in the receipts later. Should he be reimbursed from the Tag Day profits? What would you do?

Problem #6 The Commanding Officer decides to sell the band instruments as the Cadet Corps no longer has a band. The instruments were originally purchased with Sponsor funds. The Support Committee finds out after the band instruments were sold and claims the instruments are theirs not the CO's. Whom do the band instruments belong to? Does the CO have the right to sell the band instruments? How would you handle this?