Things Financial-Part 2

2007 National AGM Motion M11: Moved that Division Presidents agree to work together towards improving financial internal controls at both the Branch and Division level during 2007. The Good News is:

And we did make some progress Nobody went to jail! And we did make some progress

First level of Financial Internal Control The by-laws of the Navy League of Canada state that divisions are to submit: Financial statements for last year Audit report for last year Budget for next year

How did we do? All divisions submitted at least partial financial reports Six divisions sent in audit reports (all done by professionals) Two divisions included budgets

What did we learn? Need to provide assistance in some cases Need to address audit requirement Need to establish culture of reporting

What is National prepared to do? Assistance: Phone Jamie Clute for advice (613 991 2069) If we can’t solve it over the phone, we are prepared to come and visit But we need you to tell us you need help

We have started work on audits Board approved a new policy Over $100,000 in revenue: full audit by a professional Between $50,000 and $100,000 in revenue: either a review or full audit by a professional Under $50,000: your choice. A review or full audit by a professional or review by 2 non-professionals

Audits: My Advice If those under $50,000 revenue: Find a professional to do it for free (or nominal) They will help the treasurer They will greatly simplify the work of the president

But if non-professional auditors Guidelines for presidents on web site Additional draft audit report Audits: Why Bother ?

Why Bother? Financial Records in complete disarray General Ledger did not accurately track receipts and disbursements Previous audit reports cancelled checks monthly + year-end financial statements, receipt books not available Letter Dated Mar 17th 2008

What else? Presentations to Alberta & Van Island AGMs Presentation on web site DVD for training presidents and treasurers Financial software for small branches

Excel Software 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 treasurer puts money into the bank Records it in the branch receipt journal (Excel spreadsheet) Results in an automatic update: Branch Statement of Receipts Branch Statement of Assets and Liabilities

But there is more magic….. Branch treasurer writes a check Records it in the branch disbursement journal (different Excel spreadsheet) Results in an automatic update: Branch Statement of Disbursement Branch Statement of Assets and Liabilities

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

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

Suggestions for 2008 Get Branches doing audits Get Branch Presidents to ensure AGMs: Approve financial statements and audit statements for year just ended Approve the budget for year just starting Approve those authorized to sign checks Approve the name of auditors for the coming year

AGM Motion Propose the following: Lets get all divisions to submit financial statements, audits and budgets to national Lets work to get branches to submit same to divisions

What to do when a Branch Goes Bad And remember: If it smells fishy, it probably is fishy. Expert Advice: What to do when a Branch Goes Bad