What questions do you have? Please write your questions on an index card. We will review at the end to be sure we covered all questions. Rotary District 7570 4/25/2015

Rotary Club Treasurer Training Cynthia Page District 7570 Asst. Treasurer Rotary Club of Harrisonburg-Massanutten Jim Ridenour District 7570 District Treasurer Rotary Club of Staunton-Augusta Rotary District 7570 4/25/2015

Who is here today? Name Club How long in Rotary? How long as Treasurer? Rotary District 7570 4/25/2015

Introduction Purpose: To Define the Roles and Responsibilities of a Rotary Club Treasurer It is vital that each Rotary Club exercise impeccable fiscal responsibility to optimize the use of its funds and maintain trust in the community and amongst the club membership “For a small piece of paper it carries a lot of weight.” For the Love of Money – The O’Jays Rotary District 7570 4/25/2015

Topics Treasurer’s Role and Responsibility Summary & Questions Resources What is expected of you? Club Budget Financial Records & Accounts Communication: Club, District, RI, IRS Financial Reporting Fiscal Control Best Practices Summary & Questions Rotary District 7570 4/25/2015

Today’s Session Your Participation is Key Ask Questions Anytime Share Your Insights Use Training Materials Feel Free to Move About Penny for my thoughts 4/25/2015 Rotary District 7570

Resources Rotary Club Bylaws (Manual Of Procedures 2013) Article 4 Section 7 Available on District 7570 web page Rotary District 7570 4/25/2015

Click on District Downloads Scroll Down Rotary District 7570 4/25/2015

Resources Rotary Club Treasurer’s Manual Available on RI web page Rotary District 7570 4/25/2015

club treasurer’s manual Rotary District 7570 4/25/2015

Rotary District 7570 4/25/2015

What is expected of you? Managing funds Planning, directing, monitoring, organizing $ Collecting and submitting dues and fees Paying bills Reporting on the state of your club’s finances Developing a budget Preparing your successor Rotary District 7570 4/25/2015

What questions should you ask? Where can I get a copy of last year’s budget? Can you help me understand how it was put together? Where are the bank accounts? Who has signature authority? How do I get online access? Do we have any debt? Rotary District 7570 4/25/2015

What questions should you ask? How are dues billed and collected? What do I do with Foundation Gifts (sustainer dues)? What paperwork do I need to file and with who? Can I get a copy of our club bylaws? What caused you the biggest headaches? What do you wish you had an opportunity to change? Rotary District 7570 4/25/2015

Overview: Role of the Treasurer Manual of Procedure page 8 Handling Club Funds – part 1 At the beginning of each fiscal year, the club’s board of directors must prepare or cause to be prepared a budget of estimated income and estimated expenditures for the year, which, having been agreed to by the board, shall stand as the limit of expenditures for the respective purposes, unless otherwise ordered by action of the board. All bills shall be paid by the treasurer, or other authorized officer, only after approval by two other officers or directors. A qualified accountant or other qualified person must make an independent review of all the club’s financial transactions each year. Rotary District 7570 4/25/2015

Budget Budget reflects the Club’s Annual Plan Good budgeting is key to Club success Involve the Board of Directors Ask questions Rotary District 7570 4/25/2015

Budget Find out about all club activities Learn about the club’s cash flow Be conservative in estimates Plan a favorable balance at year end Obtain Board approval Communicate in a Club Assembly Rotary District 7570 4/25/2015

Budget Revenues Club dues Guest meals Fund Raisers Split the pot Include district dues, RI dues Guest meals Fund Raisers Split the pot Happy Dollars What else? Rotary District 7570 4/25/2015

Budget Expenses – Club Level Club Administration Printing Postage Badges/Pins/Certificates Meals New member packets Committees (Authorized expenses) Projects Donations Miscellaneous Expenses Contingency Fund Special Funds What else? Go back though the prior year reports or checkbook to capture details. 4/25/2015 Rotary District 7570

Budget Expenses – beyond the Club Rotary International Dues (including Insurance, Rotarian Magazine, Council on Legislation) District 7570 Dues and computer fee RI Convention and District Conference Training PETS DTA RYLA What else? Talk to your president and committees to see what their goals are for the year and determine budget impact. 4/25/2015 Rotary District 7570

Rotary International Dues & Fees Reference: Manual of Procedure 2013 Per Capita Dues paid to RI Each club pays the following annual per capita dues to RI for each of its members, other than honorary members: $27.50 per half year in 2015-16 [$28.00 in 16-17]. Paid 1 July and 1 January, based on the number of members of the club on these dates. Prorated dues for Rotarian joining between July 1 – Jan 1 – July 1. If a club has fewer than 10 members, it shall pay additional per capita dues of an amount equal to the amount it would have paid if it had 10 members. Rotary District 7570 4/25/2015

Rotary International Dues & Fees (cont.) Rotarian Magazine $6.00 per Rotarian per half year in 2013-14 (established by RI BOD action) Insurance $2.74 per member (July 1 only). New rate in May 2015. Dues for Representation at the Council on Legislation $1.00 per member (July 1 only) Rotary District 7570 4/25/2015

District 7570 Dues and Fees Per Capita Dues $23.00 per Rotarian in 2014-15 Based on club roll as of September 30 Due December 1 – if not paid by January 1, 5% penalty assessed Invoice sent to club treasurer by PMAIL Auto debit option available Website & Database Maintenance Fee $35.00 per club – payable with per capita dues Rotary District 7570 4/25/2015

Dues Summary for amount frequency annual when paid RI dues $ 27.50 $ 27.50 half year $ 55.00 July 1 Jan 1 Magazine $ 6.00 $ 12.00 Insurance $ 2.74 per year July 1 COL $ 1.00 District dues $ 23.00 December 1 Total annual $ 93.74 Per quarter $ 23.44 Rotary District 7570 4/25/2015

Sample Budget Form Rotary District 7570 4/25/2015

Sample budget Number of members vs number of members billed Number of meetings Better to keep fund raising separate Special Project Rotary District 7570 4/25/2015

Meal cost varied by number of weeks Fundraiser expenses Rotary District 7570 4/25/2015

Rotary District 7570 4/25/2015

Monthly cash flow varies Very slim margin! Rotary District 7570 4/25/2015

Time for a stretch break. Rotary District 7570 4/25/2015

Overview: Role of the Treasurer Manual of Procedure page 8 Handling Club Funds – part 2 At the beginning of each fiscal year, the club’s board of directors must prepare or cause to be prepared a budget of estimated income and estimated expenditures for the year, which, having been agreed to by the board, shall stand as the limit of expenditures for the respective purposes, unless otherwise ordered by action of the board. All bills shall be paid by the treasurer, or other authorized officer, only after approval by two other officers or directors. A qualified accountant or other qualified person must make an independent review of all the club’s financial transactions each year. Rotary District 7570 4/25/2015

Approval and Auditing – questions to ask? Who is going to approve bills? How will approval take place? Does your club have an audit committee? What is their role? How is the annual audit going to be taken care of? Rotary District 7570 4/25/2015

Treasurer Communication Club Members Club Secretary Club President/Board Committees District 7570 Rotary International & Rotary Foundation Dues Payments Attendance Financial Reporting Budget Performance Dues & Grants Dues, Grants, & Foundation Contributions Rotary District 7570 4/25/2015

Membership Status No Remain on Club Roster & Invoice Periodic Review Secretary Responsibility Treasurer Responsibility Club Attendance Records Member Dues Payment Records Remain on Club Roster & Invoice Next Period Periodic Review Is Member Current and In Good Standing? Yes Remove from Club Roster & Final Invoice Remove From Active Invoice System No 4/25/2015 Rotary District 7570

Communications – District 7570 District Annual Dues Payments Electronic Drafting Determined at District Legislative Assembly (PETS) District Grants Global Grants Check District 7570 Website http://www.rotary7570.org/ Financial goals set at PETS – talk to your President and Board to prep your PE Rotary District 7570 4/25/2015

Rotary District 7570 4/25/2015

Communications - RI Rotary Foundation Giving Annual Programs Fund Sustainer Payments Permanent Fund Polio Plus Fund Visit Rotary International Website http://www.rotary.org/ 4/25/2015 Rotary District 7570

Rotary Foundation Submission Instructions Choose Committees and Downloads Scroll Down to… Rotary District 7570 4/25/2015

Rotary Foundation Submission Instructions Rotary District 7570 4/25/2015

Transmittal Form Log in 2.1 Rotary Foundation Transmittal Rotary District 7570 4/25/2015

Rotary Foundation Communication undesignated = Annual Fund - Share Rotary District 7570 4/25/2015

IRS – Tax Filing Ask a CPA in your club for help Rotary Club is 501(c) 4 Gifts to the club are not tax deductible If you have a foundation it is a 501(c) 3 Gifts to The Rotary Foundation and club foundations are tax deductible Club must file a form 990-N if gross receipts >$25,000 (includes meal payments) If year ends June 30 – due by Nov 15 Fail to file for 3 years – may lose tax exempt status More info at irs.gov Rotary District 7570 4/25/2015

Rotary District 7570 4/25/2015

Financial Reporting Budget Budget v. Actual Income & Expense Aged Invoices Fund Raising Foundation Contributions Reserve Funds Audits/Reviews Tax Returns (Form 990) Board & Club Board & Committees Board Board & Secretary Board & Foundation Committee Board & IRS Rotary District 7570 4/25/2015

Financial Records & Accounts Checking Accounts Update Signature Cards Update Resolutions Statements & Checks Internet Banking Access Reconciliations Savings and Investment Accounts Statements Financial Reports - Sample reports in Club Treasurer’s Manual Balance Sheet Profit & Loss Statements Budget v. Actual Rotary District 7570 4/25/2015

Financial Records & Accounts Rotary Foundation Contribution Records Sustainer Giving Special Gifts Minutes of Meetings (Coordinate with Club Secretary) Indemnity Bond, if applicable Tax Returns & IRS Documentation Audit Reports or Committee Reviews Rotary District 7570 4/25/2015

Fiscal Control What is Fiscal Control? Insuring proper checks and balances are in place to protect the integrity and funds of the Club Systems to prevent things from going wrong; to check for Errors, mistakes Intentional misdeeds Rotary District 7570 4/25/2015

Fiscal Control Use written agreements for club activities Discuss bonding/liability insurance Clubs in US have general liability and director and officers/employment practices liability insurance through RI Report often Use audit committee Separate duties among club members Get approval for bill payment Rotary District 7570 4/25/2015

Communications - Club Segregation of Duty Needed Treasurer Responsibility Invoicing & Collection of Funds (Dues, Meals, Contributions etc.) Reconcilement & Oversight Committee Responsibility Formal Report to Board & Approval Bank Statement Transactions Entered Into Accounting System Bank Deposit Financial Reports Generated Make Payments Treasurer Responsibility Rotary District 7570 4/25/2015

Best Practices Plan for Succession and Transition Set term limit for Treasurer Appoint an Assistant Treasurer Bylaws May Require Amendment Establish Segregation of Duties Approval & Payment of Bills Reconcilement Check Signing Authorities Opening Accounts Annual Reviews or Audits Bonding – talk to your club Rotary District 7570 4/25/2015

Best Practices Formalize Budgeting Work with Your Bank Utilize Online Banking Capabilities Minimize Fees Meet and Report Regularly Board and Committees President Secretary Use an Accounting System DaCdb (Smaller Clubs), Excel QuickBooks or Peachtree (Larger Clubs) Rotary District 7570 4/25/2015

Big Sis Advice Be sure sustainer contributions are paid to club before remitted Bill dues regularly so members know when to expect billings Stay current with deposits, bookkeeping, reconciliations and reports Talk to your board about how much they want to have in reserves Keep records for a minimum of three years after 990 filed Rotary District 7570 4/25/2015

Big Sis Advice Expect to get money/paperwork/etc. every time you go to a Rotary event Don’t be afraid to implement new controls if they are needed – you may set the new standard for how its done Encourage new members Rotary District 7570 4/25/2015

Timeline for budget development January – tell PE and committee chairs that you are starting to think about new year’s budget and will be asking for their input Spring – contact each committee chair and ask for budget request for coming year March – prep PE for goals at PETS April/May – discuss with PE and prepare draft budget May/June – prepare budget & present to board July 1 – new year All year long – monitor and report Rotary District 7570 4/25/2015

Tools & Resources District 7570 Website Rotary International Website http://www.rotary7570.org/ DaCdb Rotary International Website http://www.rotary.org/ Download Library Documents & Manuals Club Treasurer’s Manual (220-EN) 2013 Recommended Club Bylaws Article 4, Section 6 (Duties of Officers) Article 12 (Finances) Article 14 (Resolutions) Club Constitution Article 11 (Admission Fees and Dues) Article 12 (Duration of Membership) Article 14 (Rotary Magazine Subscription Required) Rotary International 2013 Manual of Procedure (035-EN, page 7) The Rotary Foundation Multiple Donor Form (094-EN) Consulting services, other sources 4/25/2015 Rotary District 7570

Help for Club Treasurers Jim Ridenour, District Treasurer jimr@cfw.com 540-448-0308 Cynthia Page, District Asst. Treasurer cynthia.f.page@gmail.com 540-421-9928 www.rotary7570.org Go to Member access - Help tab for DaCdb FAQ, Help Desk, contacts, and more 4/25/2015 Rotary District 7570

Summary Key Learning Points Role and Responsibility Resources What is expected of you? Club Budget Financial Records & Accounts Communication: Club, District, RI, & IRS Financial Reporting Fiscal Control Best Practices Questions & Feedback Rotary District 7570 4/25/2015

Rotary District 7570 4/25/2015

Make my day - Ask me a question Rotary District 7570 4/25/2015