1. Things Financial +

2. Treasurer Training Outline
Introductions
NLC Treasurer overview (from National)
Intro to NLC financial program spreadsheet
Specific NLC spreadsheet functions:
Budgeting
Receipts (income)
Disbursements (expenses)
Assets and Liabilities
Reports
CRA calculation
Hands-on workshop with spreadsheet
General Treasurer questions
After training help and support

3. Financial Leadership
Branch develops and implement the Corp’s financial plan
Your annual program drives your budget
Understand what you get for what you spend
Assign responsibilities for
authorizing & monitoring
Formal review at least
half way through 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

4. Financial Leadership Branch President’s Role
Help the Branch Treasurer implement good stewardship
Spend time with your Treasurer
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

5. 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?

6. Financial Stewardship
Never sign a blank check
Always see documentation
Reconcile your bank
That’s showing due care and diligence!!
So these are the three major steps to ensure good financial stewardship
And perhaps you as Div President are not involved directly,
However you set the policies and procedures and establish the culture
If it is to be, it is up to thee

7. Accrual accounting….. Pretty much standard in business
Considers transaction at date of Invoice sent out or the Cheque was authorized
Accounts receivable, A/R
Accounts payable, A/P
Depreciation of assets
Requires accounting knowledge
Not required by Navy League

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

9. Navy League does KISS Accounting
What you own
Less what you owe
Equals what you are worth
Money received during the year
Less money spent during the year
Equals increase in worth
Balance Sheet
Income
statement

10. Statement of Receipts and Disbursements
Amount in bank at start of year
Add receipts during the year
Subtract disbursements during the year
Should be bank at the end of the year

11. Statement of Assets and Liabilities
Assets (what you own)
Liabilities (what you owe)

12. Keeping the records Paper (It’s OK) Computer Excel spreadsheet Quicken
Simply Accounting
Navy League requirements are minimal
Records you keep should depend on what information you want.
Also size and complexity
Simply accounting used in national office. Information downloaded to Excel spreadsheets
Appropriate for larger divisions with appropriate technical support
Quicken simpler, cheaper and easier to use.
Excel spreadsheet computer based
Paper ledger OK but more work, limited ability to produce good reports

13. Computer Software Quicken, Simple Accounting
Advantage: Can prepare financial
statements , etc
Disadvantage: Must learn system and invest in set up
Recommended for larger branches (or treasurers who are already familiar)

14. Excel Software – NLC Program
Meets the by-law requirements
Provides a way to record financial transactions
And like magic: produces the required financial statements

15. So tell us more about this magic…
Branch puts money into the bank
Treasurer records it in the Excel Receipt sheet
Results in an automatic update:
Branch Statement of Receipts
Branch Statement of Assets
and Liabilities

16. But there is more magic…..
Branch writes a check
Treasurer records it in the Excel Disbursements sheet, for cash based system the value is added in the column when cleared by bank
Results in an automatic update:
Branch Statement of Disbursement
Branch Statement of Assets and Liabilities

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

18. And some additional magic…….
Expanded Excel spreadsheet with some new features can be provided
Budget sheet with entries that automatically update the spreadsheet fields and Reports
After setting up accounts, the CRA Charities Tax Return Fields are automatically updated and correspond to the Return Line Numbers

19. 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

20. So let me show you some magic!

21. 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

22. Questions? General Treasurer questions?
After training help and support