1. Things Financial-Part 2

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:

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

4. 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

5. 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

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

7. What is National prepared to do?
Assistance: Phone Jamie Clute for advice
( )
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

8. 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

9. 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

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

11. 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

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

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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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