1. 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

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

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

4. 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

5. 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

6. 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

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

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

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

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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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 [$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

22. Rotary International Dues & Fees (cont.)
Rotarian Magazine
$6.00 per Rotarian per half year in (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

23. District 7570 Dues and Fees Per Capita Dues
$23.00 per Rotarian in
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

24. Dues Summary for amount frequency annual when paid RI dues $ 27.50$
half year $
July 1 Jan 1
Magazine $ $
Insurance $
per year
July 1
COL $
District dues $
December 1
Total annual $
Per quarter $
Rotary District 7570
4/25/2015

25. Sample Budget Form
Rotary District 7570
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26. Sample budget Number of members vs number of members billed
Number of meetings
Better to keep fund raising separate
Special Project
Rotary District 7570
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27. Meal cost varied by number of weeks
Fundraiser expenses
Rotary District 7570
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28. Rotary District 7570
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29. Monthly cash flow varies Very slim margin!
Rotary District 7570
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30. Time for a stretch break.
Rotary District 7570
4/25/2015

31. 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

32. 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

33. 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

34. 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
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Rotary District 7570

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

36. Rotary District 7570
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37. Communications - RI Rotary Foundation Giving
Annual Programs Fund
Sustainer Payments
Permanent Fund
Polio Plus Fund
Visit Rotary International Website
4/25/2015
Rotary District 7570

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

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

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

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

42. 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

43. Rotary District 7570
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44. 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

45. 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

46. 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

47. 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

48. 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

49. 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

50. 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

51. 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

52. 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

53. 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

54. 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

55. Tools & Resources District 7570 Website Rotary International Website
DaCdb
Rotary International Website
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

56. Help for Club Treasurers
Jim Ridenour, District Treasurer
Cynthia Page, District Asst. Treasurer
Go to Member access - Help tab
for DaCdb FAQ, Help Desk, contacts, and more
4/25/2015
Rotary District 7570

57. 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

58. Rotary District 7570
4/25/2015

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