Things Financial + Oct 2015

Training Outline Introductions NLC Treasurer overview (from National) Budgets Financial Year Finance Process Overview Intro to NLC financial program spreadsheet General questions

Financial Leadership Develop and implement Corp’s financial plan Your annual program drives your budget Understand what you get for what you spend Assign responsibilities for authorizing & monitoring Formal reviews part way through the 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 Treasurer and Corp 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?

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

Budgets: Overview Financial Plan for what you want to do Financial management performance tracking Income Expenses Surplus or deficit Assets

list 5 mandatory expenses Mandatory Expense Item Annual cost Estimate $ Total mandatory expenses

list 3 discretionary expenses Discretionary Expense Item Annual cost Estimate $ Total discretionary expenses

list 5 sources of revenue Revenue Item Annual Estimate $ Total revenue

Budget Budget Item Total Revenue Mandatory Expenses Annual Estimate Total Revenue $ Mandatory Expenses Discretionary Expenses Revenue – expenses = surplus or deficit

Sub-accounts Keep track of specific fundraising or expense activities All must flow through Branch May use separate bank account, or use separate line entries in NLC system All must be visible and accounted for to Branch and Division All subject to Annual Audit

What is best for your Branch? Multiple Year Ends Corp training year: September to June Government financial year: April to March Branch Financial Year End – no standard What is best for your Branch? Depends on your perspective Always a compromise Always will cross over someone’s YE Needs some “pre-planning” for budgeting

Start of Financial Year Identify Corp training needs Identify Other Corp or Branch expenses Create Fundraising plan Draft Budget 2 months before Start of New Financial Year (may differ from Training Year) Final Budget needs approval before start (one month ahead is good practice) Branch needs to approve FY Budget

During Financial Year Only items in Budget can be expensed Branch and Treasurer have information Track performance and discuss Revisions can be made mid-year Identify changes needed to Branch Branch needs to approve revised Budget

Financial Year End Branch will Audit Financial Statements Summary of Expenses Summary of Revenue Summary of Assets and Financial Position Review what occurred and why Use as a start point for the next year

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

Example JTC Budget and Financial Statements

Questions? General questions?