Charlie Barr, PDG DISTRICT 5300 Budget/Finance Chair 2012-13 pdgcharlesbarr@gmail

1. District 5300 Assembly April 14, 2012 Training the RotaryClub Treasurer Charlie Barr, PDG DISTRICT 5300 Budget/Finance Chair 2012-13 pdgcharlesbarr@gmail.com

2. Club Treasurer • Valuable part of club leadership team. • Often holds office for more than one year to provide continuity. 3 to 5 year term recommended • Assists president and board in financial management and other matters as requested.

3. Manages the Finances of the Club • Coordinates the preparation and management of the budget. • Collects dues and payments from club members. • Pays dues to the District & R.I. • Oversees financial transactions of club. • Reports regularly on the financial status to the club board of directors. • Files necessary tax returns. • Files information statement with state Secretary of State (if club is a corporation.)

4. pdgcharlesbarr@gmail.com pdgcharlesbarr@gmail.com Prepares a Budget • Reviews prior years. • Obtains input from directors. • Meets with the president to draft overall budget. • Presents budget to board. • Obtains approval.

5. District Items to Include in the Budget [This list is for budgetary purposes. Exact costs may vary from those listed.] • Presidents Advance: $400.00 Single, $600 Double • District Assembly: $300.00 for unlimited number of member attendees • TLC $300.00 per student (even number) • RYLA $300.00 per student (even number)

6. District Items to Include (Cont) • RI Convention Allowance for club president-elect or President • District Conference Allowance for club president and club hospitality expenses • PR & Membership Training Seminar $25.00 per person

7. District Items to Include (Cont) • BODTS $25.00 per attendee • Interact Symposium $540.00 for 3 ($180.00 for each additional person) • Dan Stover Music $275.00 entry fee • 4 Way Speech Contest $275.00 entry fee • George Hensel Essay No Charge • GSE Special costs that might be incurred for hosting • PETS $600.00 Spouse 300.00

8. Monitors the Budget • Budget serves as a spending limit and revenue guide. • Present to board the comparisons between budget and actual. • Obtain formal budget revisions as necessary. • Hold semi-annual reviews. • Solve any budget crisis.

9. Develop a System The club should operate with a financial record keeping system in accordance with approved accounting practices.

10. Ask the Experts for Help • Ask for advice from a certified public accountant or other long-time experienced accountant about: • Basic record keeping systems and procedures which are correctly planned. • Implementing a system of checks and balances (internal controls.) • Ways to prevent the possibility of fraud and abuse. • Ask for advice on computer and software systems.

11. Software Can Help • Accounting systems can be purchased. Some common ones are: • Quicken • QuickBooks • Peachtree • Club Wizard • Clubmate [offers a custom designed software for Rotary clubs through R.I.]

12. Establish a Banking Relationship • Your club will need one or more banking accounts for the deposit of funds and payment of expenses. • In most cases, these are opened by the club, and require signatures of two officers for significant expenditures. • Monthly bank reconciliations should be reviewed by a past treasurer or other person.

13. Collecting Dues and Payments • Dues, meal payments, and other collections are part of the job. • Establish a collection system and involve the secretary or another person. • Set up a billing system – be prompt and send reminders. • Rotarians often are not prompt payers – be firm but flexible.

14. Collecting Dues and Payments (Cont) • Process payments. • Weekly – usually. • Obtain vouchers signed by committee chair and/or appropriate officer. • Pay based on original invoices. • Use payment requisitions for non-invoiced items.

15. Payment of Dues • Clubs pay dues to both the District and to Rotary International.

16. District Dues • Helps provide funds for District services to clubs • District website • Training materials • Communications (phone, postage) • Funds the annual conference, membership, leadership trainings, awards, bookkeeper, district administrator, etc. • Pays travel and other expenses of the Governor, assistant governors, past district governors, officers and certain committee chairs to District and R.I. events.

17. District Dues (Cont) • All clubs must self-assess based on membership and remit to the District their dues twice a year. • Each club shall pay $29.00 per half year in 2012-2013 per member in the subsequent July or January semi-annual period for which dues are payable. • They are due on July 1, 2012 and January 1, 2013.

18. District Dues (Cont) • District dues are delinquent 31 days after they are due. • The club should contact the District Governor with any problem with the ability to pay. • Club dues include the registration cost for annual District Conference and contribution to the annual Rotary Rose Parade float.

19. Provide funds for the operation of Rotary International. Can now be paid electronically with the new Rotary Business Portal on the Internet. The club can be suspended after 90 days for non-payment of RI dues. Rotary International Dues

20. Semi-Annual Report (SAR) • The SAR arrives in June and December, listing all active members on your club’s roster according to R.I. • It is important to carefully review all member information. • The secretary should correct and update the report so that you can calculate club dues and subscription fees. • Remit to R.I. a check along with the completed SAR report. • The secretary should also make membership changes and updates through the District website.

21. Rotary International Dues • Each club shall pay to Rotary International per capita dues for each of its active members. • In 2011-12 dues were $23.50* per half year. $1 extra per member was added for the Council on Legislation on the July dues. *2012-13 Dues will be determined by May 1. • Dues are payable in July and January. • A prorated amount of $11.75 shall be payable by each club for each member who joins in the first 3 months subsequent to the July or January semi-annual periods. This prorated amount is payable by October 1 or April 1.

22. District Expense Reimbursement • Requestor for reimbursement completes the first part of the District form (from the District website) and attaches to it receipts. • Requestor sends form to the committee chair under whose budget the expense falls for approval and signature. • The committee chair sends the form to the District Governor for signature. • District Governor forwards request to District Treasurer for check issuance. • District Treasurer issues check and mails check out as per request on form.

23. Insurance • All clubs are covered under a liability policy from Rotary International. • To obtain information simply go to the District 5300 or R.I. websites. • All District and club officers are covered under a separate policy called a D & O policy. • Interact and Rotaract clubs and RYLA are covered by the policy.

24. District 5300 Project Funding • Applications for project funding through a District Simplified Grant are found on the District 5300 website. • A committee of at least two Rotarians must be established in the sponsoring club. • The project cannot be started until the application has been approved by the District Simplified Grants Committee.

25. Dan Stover, 4-Way Test and George Hensel Essay Contests • All clubs must submit to District 5300 the entry fees of $275 each for Dan Stover and 4-Way Speech contests prior to the first performance or speaking engagement. • If more clubs participate, the awards could be increased. • There is no entry fee for the Hensel Essay contest.

26. Provides Reports to the Board • Written records of finances of the club should be presented to the board at meetings. • Each club should establish reimbursement procedures to ensure proper control over funds.

27. Treasurer and Club Secretary • It is important that the treasurer meet with the club secretary to coordinate fiscal plans and responsibilities. • The secretary (or in larger clubs, paid staff) will often record all collections and forward the money to the club treasurer. • Always give a receipt for money received to the secretary for club records.

28. TAX INFORMATION • Federal – basic requirement: $25,000 of receipts or more • Form 990: Information Return • Form 990-T: Unrelated Business Income of $1,000 or more • California • Form 199 Information Return • Form 109 Unrelated Business Income • RRF-1 Report to the Attorney General

29. TAX INFORMATION (Cont) • Nevada • No state forms are required to be filed. • Due date of tax returns: 4 ½ months after the club year ends, i.e. November 15 each year.

30. Raffle Information • California • Must file with Attorney General. • 90% must go for charitable purpose. • Must complete annual reporting. • Nevada • There are no specific requirements.

31. Foundations • Most clubs have their own foundations in addition to books for club operations. • District 5300 has a foundation clubs may use. • Requirements for foundations are different and more extensive than for club operations and will require professional advice and costs. • Foundations have more regulator requirements: • Inurnment • Increase reporting • Foundations must maintain separate financial records from club operations, and, if required, separate tax filings are necessary.

32. Questions