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, emails, etc…questions some of you and/or your peers have asked

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 e-mail, DA mailings, etc… What you do will influence your leagues – lead by example

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

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

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

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

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…

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

League Financial Obligations Charter Application – 2016-17 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

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 email to all league officers sent April through June Data Center-status updates for your leagues

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

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

Tournament Travel Fund Restricted Fund $200 per Team-17,000-18,000+ teams enter $700-800K+ 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

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

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