Things Financial +

Treasurer Training Outline Introductions NLC Treasurer overview (from National) Intro to NLC financial program spreadsheet Specific NLC spreadsheet functions: Budgeting Receipts (income) Disbursements (expenses) Assets and Liabilities Reports CRA calculation Hands-on workshop with spreadsheet General Treasurer questions After training help and support

Financial Leadership Branch develops and implement the Corp’s financial plan Your annual program drives your budget Understand what you get for what you spend Assign responsibilities for authorizing & monitoring Formal review at least half way through 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

Financial Leadership Branch President’s Role Help the Branch Treasurer implement good stewardship Spend time with your Treasurer 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

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?

Financial Stewardship Never sign a blank check Always see documentation Reconcile your bank That’s showing due care and diligence!! So these are the three major steps to ensure good financial stewardship And perhaps you as Div President are not involved directly, However you set the policies and procedures and establish the culture If it is to be, it is up to thee

Accrual accounting….. Pretty much standard in business Considers transaction at date of Invoice sent out or the Cheque was authorized Accounts receivable, A/R Accounts payable, A/P Depreciation of assets Requires accounting knowledge Not required by Navy League

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

Navy League does KISS Accounting What you own Less what you owe Equals what you are worth Money received during the year Less money spent during the year Equals increase in worth Balance Sheet Income statement

Statement of Receipts and Disbursements Amount in bank at start of year Add receipts during the year Subtract disbursements during the year Should be bank at the end of the year

Statement of Assets and Liabilities Assets (what you own) Liabilities (what you owe)

Keeping the records Paper (It’s OK) Computer Excel spreadsheet Quicken Simply Accounting Navy League requirements are minimal Records you keep should depend on what information you want. Also size and complexity Simply accounting used in national office. Information downloaded to Excel spreadsheets Appropriate for larger divisions with appropriate technical support Quicken simpler, cheaper and easier to use. Excel spreadsheet computer based Paper ledger OK but more work, limited ability to produce good reports

Computer Software Quicken, Simple Accounting Advantage: Can prepare financial statements , etc Disadvantage: Must learn system and invest in set up Recommended for larger branches (or treasurers who are already familiar)

Excel Software – NLC Program Meets the by-law requirements Provides a way to record financial transactions And like magic: produces the required financial statements

So tell us more about this magic… Branch puts money into the bank Treasurer records it in the Excel Receipt sheet Results in an automatic update: Branch Statement of Receipts Branch Statement of Assets and Liabilities

But there is more magic….. Branch writes a check Treasurer records it in the Excel Disbursements sheet, for cash based system the value is added in the column when cleared by bank Results in an automatic update: Branch Statement of Disbursement Branch Statement of Assets and Liabilities

A bit more magic……. Branch buys an asset (maybe a boat) or incurs a liability (say a mortgage) Treasurer enters it into Excel Record of Assets and Liabilities sheet Results in an automatic update: Branch Statement of Assets and Liabilities

And some additional magic……. Expanded Excel spreadsheet with some new features can be provided Budget sheet with entries that automatically update the spreadsheet fields and Reports After setting up accounts, the CRA Charities Tax Return Fields are automatically updated and correspond to the Return Line Numbers

Is it mandatory? No Meant to help small branches Will allow them to meet requirements However no need to change if branches currently able to produce reports required by by-laws

So let me show you some magic!

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

Questions? General Treasurer questions? After training help and support