Keeping Control of the Money January 2013

Introduction. The National Member Services Committee has developed a series of National Education Seminars to help our Lodges run more effectively. A number of sessions are available ranging from meeting management to public relations. Just contact the National office for more information ( ).

Topics of Discussion. Understanding the importance of proper financial controls. Responsibilities of the Lodge Finance Committee. The need for a budget each year. The financial reporting process. To audit or not to audit.

Financial Controls. Funds are often mismanaged, expenditures are made without proper authorization, and often there is poor documentation and details on expenses and revenues. We must have financial controls in place. Proper procedures and management practices also prevent dishonesty. If “theft” is discovered, deal with it, do not sweep it under the rug.

Finance Committee. The Finance Committee is a standing committee, recommended by the ER and approved by the Executive. Consists of a minimum of 3 members, at least one of which should have an accounting or financial background, if possible. They prepare the fiscal budget for the Lodge and all committees including the Management Committee They work with the other committees and officers to ensure that proper financial controls are in place and operating.

The Budget. The budget is an estimate of Revenue expectations and Expenses required for the ongoing operations of the Lodge for the fiscal year. The Finance Committee prepares the budget using figures from all committees. The budget estimates are assembled into one organized document for presentation to the Lodge.

Who Does What? The Finance Committee assembles the budget and presents it to the Executive first. Once accepted by the Executive it is presented to the members for final approval. Once approved committees can authorize expenditures within the limits outlined in the budget but they must be able to account for the funds. A “function report” detailing revenue and expenses is a good idea. Any overruns to the budget must be approved by the Executive prior to the expenditure.

Reports. The Finance Committee should report to the Lodge annually and should clearly indicate the financial position of the Lodge, including details of all revenue received and payments made. Assets and investments should also be detailed. All information affecting the financial position of the Lodge must be available for review. The Treasurer shall present a report monthly showing the condition of the funds of the Lodge and present a written report of the transactions of their office semi-annually in the months of June and December.

Financial Reports. Acceptable reports are: Audit Review Engagement Internal Review Please refer to Constitution, Bylaws, & Regulations of the Elks of Canada for details of these requirements.

Recap. Every Lodge needs to have financial controls. Every Lodge needs to have a Finance Committee and needs to have a budget. Every Lodge should have a financial report prepared annually and presented to the members. Funds are often mismanaged. Proper procedures and documentation are necessary. Every Lodge must have monthly financial reports

Putting it into Action. Put controls in place so everyone knows they are accountable. Make sure your Lodge has a budget prepared each year and an audit performed. Educate your members about the Lodge finances - keep them informed. Pay attention to the Finance Committee reports. Each member has a right to be informed and the Executive have an obligation to report accurately and regularly.