NZPCA Conference: July 2017 Pony Club Treasurers NZPCA Conference: July 2017

Treasurers NZPCA Conference: July 2017 Responsibility Reporting Control Year End Review/Audit Check List

Treasurers - Responsibility NZPCA Conference: July 2017 Keep up-to-date records as well as an audit trail for all transactions Record Protect the club against fraud and theft, ensuring safe custody of money, and prompt banking Protect Make sure the club understands its financial obligations, tracking Income and Expenditure against the budget Inform Make sure the club complies with any regulations, such as GST, Societies filings Compliance Review all internal processes and reporting methods at least annually Review

Treasurers – Monthly Reporting what INCOME has occurred what EXPENDITURE has occurred what MONIES are owing what ACCOUNTS are due for payment

Closing Bank Balance equals your Bank Statements These easy to use templates can be found on the NZPCA website The Monthly Finance Report is broken into the below sections: Bank movement in the mth Outstanding Income Accounts for Payments, mover, seconder Any Financial Concerns Closing Bank Balance equals your Bank Statements Who owes us money and what is happening with collecting it e.g. payment dates, disputes Provide Supporting Documents e.g. Claim Forms, Bank Statements, Invoices

perform regular Bank Reconciliations is the EXPENDITURE correct/proof Treasurers - Control perform regular Bank Reconciliations is the EXPENDITURE correct/proof has the EXPENDITURE been budgeted for at least 2 Bank Signatories (never have a draw full of presigned cheques)

These easy to use templates can be found on the NZPCA website The Claim Form is to be used to provide Proof of Expenditure The Reasons for the expenditure Treasurers approval that it is/isn't budgeted for as Supporting documentation to the Monthly Finance Report - seeking approval for payment Receipts attached!!!!

Treasurers - Budgeting Done at the beginning of the fiscal year what INCOME is expected what EXPENDITURE is expected set SUBSCRIPTION Fees as Treasurer you are the facilitator of the annual budget

These easy to use templates can be found on the NZPCA website The Annual Budget template: Expenses by category on the left hand side Income by category on the right hand side Subscription levy can be set to provide the branch with an expected Surplus/Deficit for the year the entire committee needs to play a role in creating the annual budget

prepare Final Accounts arrange Review/Audit table at AGM If you are a Registered Charity you will be required to reported under the Tiered Reporting framework, please see your accountant Treasurers – Year End prepare Final Accounts arrange Review/Audit table at AGM file with Societies.govt.nz

Treasurers – Year End Statements as per Societies Office If your pony club is an Incorporated Society Treasurers – Year End Statements as per Societies Office The annual financial statement should include: the society's full name the financial year that the financial statement has been prepared for the society's income and expenditure for that financial year the assets and liabilities, as at the close of the financial year all mortgages, charges, and securities of any description affecting any of the society's property at the close of that year an audit or review report (where a society’s rules specify that an auditor or reviewer must be appointed) a certificate signed by an officer of the society confirming that the statement has been submitted to and approved by the members at a general meeting.

Incorporated Society Registered Charity Treasurers – Audit vs Review What type of Entity are we? Incorporated Society Registered Charity Have we adopted the most recent updated Branch/Club Constitution 2016? You will be required to report under the “Not for Profit Public Benefit” framework under the Charities Act YES NO Is "GAAP“ Generally Accepted Accounting Practice or similar wording mentioned in your Constitution? YES Are we GST registered (income over $60k) or have Assets greater than $250k? YES NO NO Please see your accountant who will provide further clarity You will be required to report under the “Not for Profit Public Benefit” framework. A Review/Audit is required to be done by a Chartered Accountant. Please see your accountant who will provide further clarity. An Audit is required to be performed by a suitable person A Review is required to be performed by a suitable person Reporting and who to Audit/Review our financial accounts?

Treasurers – Checklist

When does an entity need to become GST registered When to register for GST? You must register for GST if you carry out a taxable activity and: your turnover was $60,000 or more in the last 12 months or will be $60,000 or more in the next 12 months What is Turnover for a Pony Club branch? Turnover includes Subscriptions, Grants, Uniform Sales, Event Entry Fees etc Does it include Donations? No as a Donation is an Unconditional gift. An unconditional gift is a donation or payment made voluntarily to any non-profit body, where there's no identifiable direct benefit to the donor or the donor's family. Therefore in determining if your pony club should register for GST, you do not need to include donation income when calculating if the turnover is over the IRD threshold Please speak to the IRD if you require any assistance or clarification