Completing Your Audit/Budget Report Bruce W. WilsonMiles Nesman Director, Western RegionDD Finance, Western Region

General Audit/budget report intended to: Ensure that all section resources are accounted for Provide an aid in budgeting for the coming year Fully signed audit/budget report due in final form before July 1 Fax, mail, or scanned, signed copy to Regional Director and Deputy Director - Finance Noncompliant sections ineligible for section awards Please cycle your draft excel with DD-Finance and Regional Director ahead of time Allow several days (minimum) to obtain required signatures

General Form audit committee including incoming/outgoing treasurers and chairs plus one additional section member Audit/budget reports must carry a minimum of three signatures. Most sections required to also electronically file IRS form 990-N (discussed at end of this briefing) Audit/budget form is available online at

Audit/Budget Form has Three Parts Cash Flow part Metrics part Signature part

Cash Flow Part

Metrics Portion Dont carry too much cash Ensure reasonable level of activities for expenditures

Signature Part Audit committee signatures here

8 Last Years A/B Report This Years A/B Report 1. Copy the budgeted income and expenses to this years report

9 Last Years A/B Report This Years A/B Report This block is the actual cash you had on hand at the beginning of this year, and is the same as the cash you had on hand at the end of last year.

10 Last Years A/B Report This Years A/B Report Just copy the entries from the plan you made at the beginning of this year, including how much cash you estimated that would be in the bank at the end of the year. The circled values should be equal.

11 Last Years A/B Report This Years A/B Report 2a Record actual income and expenses These entries should all be ledger entries from your Sections books.

12 Last Years A/B Report This Years A/B Report 2a Record actual income and expenses 2b Enter bank balances from date of report. The circled values should be equal. Since the end of last year is the same as the beginning of this year, the entries indicated are identical.

13 Last Years A/B Report This Years A/B Report 3. Estimate planned income, expenses, and resulting end-of-year bank balance. The circled values should be equal. Your planned income and expenses are all estimates, and up to your council to determine. Some councils plan to spend only what they bring in, resulting in no change in the bank balance from today.

14 Last Years A/B Report This Years A/B Report 1. Copy the budgeted income and expenses to this years report 2a Record actual income and expenses 3. Estimate planned income, expenses, and resulting end-of-year bank balance 2b Enter bank balances from date of report.

15 Form 990-N or E-postcard – Why and When? Form 990-N is a short electronic notice that most small tax-exempt organizations have to file with the IRS. Ensures transparency among small non-profits. Ensures that the IRS and potential donors can access up-to- date information on your organization. Can only be filed electronically Or through IRS website – (put 990-N in search field)

Form 990-N (contd) - Who Files? Organizations which Are tax-exempt Have gross receipts of $25,000 or less (even if $0) Are not required to file another IRS form such as Form 990, form 990-EZ, or Form 990-PF All sections and student branches except those that have gross receipts of $25,000 or more fall into the above category and must file the E-postcard with the IRS. Note: Rebate money is not reportable income. It has already been reported under the main AIAA tax ID number as dues income. 16

Form 990-N – What Information is Required? Organizations name Any other names your organization uses Organizations mailing address Organizations website address (if applicable) Organizations employer identification number (EIN) Name and address of a principal officer of your organization (use current treasurers information and address, even though it will probably change from year to year. This should also be the address used for Group Exemption information. A statement that your organizations annual gross receipts are still normally $25,000 or less 17

Form 990-N (contd) – where to file For more information from the IRS: N in search field There is no penalty for filing late. BUT failure to file for 3 years will result in losing tax-exempt status. 18

19