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Lions club treasurer

Lions club treasurer. Essential and useful information for Treasurers and would – be Treasurers from all branches of the Lions family. Slide 1. District 201V1-4 CLUB TREASURER ’ S HANDBOOK:

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Lions club treasurer

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  1. Lions club treasurer Essential and useful information for Treasurers and would – be Treasurers from all branches of the Lions family. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 1

  2. District 201V1-4 CLUB TREASURER’S HANDBOOK: Club Treasurers should also make use of the District 201V1-4 Club Treasurer’s Handbook which is updated each year by the Cabinet Treasurer. The Handbook is published and either presented to, or posted to your Incoming Club Secretary on a USB Stick. Copies are also available online by going to the page ‘RESOURCES’ and then selecting ‘CLUB RESOURCES’ on the District Website: http://201v1-4.lions.org.au The handbook also contains information on the latest MEMBERSHIP FEES AND DUES, as well as DATES to REMEMBER Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 2

  3. At the end of this tutorial you should: Understand the Constitutional requirements of the position. Know why there must be at least two separate bank accounts and how to distinguish between them. Be aware of the need to use cheques for all payments. Know about getting approval for all outgoings. Have learnt some useful methods of cash handling and control. Be aware of sources of assistance and help with your duties. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 3

  4. This tutorial will NOT teach you bookkeeping Lions assume you already know how to keep a set of account books. As well as the District Treasurer’s Handbook, the “Australian Lions Treasurer’s Manual” is available for download from the Lions Australia Website. These contain a comprehensive coverage of bookkeeping as a wealth of other information for Treasurers. Three simple, easy to learn spreadsheets are also available for download. A detailed user manual for this system is also downloadable. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 4

  5. THE TREASURER’S DUTIES In essence, the Standard Form Club Constitution says the Treasurer: Receives and banks all money in banks approved by the board of directors. Pays out money only on the board’s authority. Signs all cheques with one countersignature determined by the board. Keeps and maintains records of receipts and disbursements. Prepares monthly and semi annual financial statements. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 5

  6. THE TREASURER’S DUTIES (Continued) In related matters the Board of Directors: Must authorise all expenditures without allowing indebtedness. Must arrange the books to be audited at least once a year. Must ensure that the net income of funds raised from the public is not spent on administrative purposes. Must maintain at least two separate banks accounts. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 6

  7. SEPARATE ACCOUNTS Most Lions are aware that their club runs at least two separate bank accounts with one usually called “Administration” and the other “Activities” or “Projects”. It is very important for the Treasurer to understand the reason for the two accounts. In the Standard Club Constitution (Article V111, Section E) Item 10 and 7 explain this. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 7

  8. SEPARATE ACCOUNTS (Continued) Item 10: “It shall maintain at least two separate funds governed by generally accepted accounting practices. The first fund to record administrative monies such as dues, tailtwisting fines, and other internally raised club funds. A second fund shall be established to record activity or public welfare monies raised by asking support from the public. Disbursement shall be in strict accordance with item 7.” Item 7: “It shall not authorise nor permit the expenditure, for any administative purposes, of the net income of projects or activities of this club by which funds are raised from the public.” Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 8

  9. MORE ABOUT SEPARATE ACCOUNTS All this says in essence, that all money raised from the public must be used for other than adminstrative purposes. The legitimate costs of running an acivity are still taken from the activity fund, but no amount may be taken to cover the general costs of administration. Net proceeds means the emount left after legitimate costs are taken from the income – supplies, advertising, hire etc. directly related to the activity. The idea of not taking or accepting any public funds for our administrave costs is one of the guiding principles behind Lions, and one of the main reasons we enjoy so much public trust and confidence. IN ESSENCE, EVERY (NET) CENT RAISED FROM THE PUBLIC MUST GO BACK TO THE PUBLIC Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 9

  10. TRANSFERS BETWEEN ACCOUNTS You can transfer as much money as you like FROM your ADMINISTRATION Account to your ACTIVITIES Account – there is nothing to prevent Club members supporting activities from their own pockets. You may NOT transfer any money FROM your ACTIVITIES Account TO you ADMINISTRATION Account, except where Administralion money was wrongly banked in the ACTIVITIES Account. You may NOT “borrow” from your ACTIVITIES Account to prop up your ADMINISTRATION Account under any circumstances. A small portion of dues payments – principally insurance for activities – can be paid from ACTIVITIES. The amount will be advised with your dues account. All other dues must be paid from ADMINISTRATION. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 10

  11. BUDGETS AND DUES A formal discussion of budgets and budget procedures is beyond the scope of this tutorial – see the Treasurer’s Manual and the District Treasurers Handbook for budget information – but budgets need to be discussed in relation to dues. Well before your year starts: You should prepare a simple administration budget where you write down the cost (outgoings) of dues, club administration costs including postage, stationary, club supplies, new member kits, member’s awards and others. The current year’s dues are available from your Cabinet Treasurer, and are in the District Handbook. You can then write down your administration income from sources other than members dues – tailtwisting, internal raffles and other legitimate costs. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 11

  12. BUDGETS AND DUES (Continued) The difference is what you will have to collect from members as dues for the club to remain solvent. If you find that there must be a dues increase, you need to take the new rate to your Board early enough so that the increase can be advised before the end of May, otherwise it cannot apply until next year. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 12

  13. INCOME – MEETING RECEIPTS Let’s deal with your Club’s income (cash receipts for the purists) A lot of your income will come from meetings – members pay-in dinner fees, dues, Lion Mint and Christmas Cake money, there are Tailtwister fines and possibly raffles. There may be other receipts as well. It is essential that you write all of this down in a way that you can follow later when you are sorting it all out, preparing the banking and entering the books. If should go without saying that you should also clearly distinguish between Activities funds and Administration funds. All money received must have a receipt issued. (This mean that you have to be a two armed wonder at some meetings to keep up.) Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 13

  14. INCOME – MEETING RECEIPTS (Continued) Some form of pre-prepared meeting receipt is the easiest way to go about collecting all of this information. You can download a template for one from the Australian Lions Website. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 14

  15. INCOME – RECEIPTING ALL income must have a receipt issued. That does not mean that you must write a separate receipt for each item you sell at a stall, for example, but htat a receipt must be written for the total proceeds from the stall when you receive the cash. Donations are usually individually receipted, but if you were running a “bucket collection” at some event, or selling tickets at the door, you would only normally receipt the total proceeds. When you collect a big bag of money at a busy meeting, it is quite legitimate to write a receipt “subject to count” rather than try to count it on the spot, then endorse the receipt with the counted amount later. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 15

  16. BANKING CASH For reasons that should be obvious, you should bank all cash received as soon as possible. All Lions Clubs are insured for cash in transit, but that insurance requires you bank cash within 48 hours plus any intervening non-banking period. Unbanked cash must be kept in a safe location (not in an un-locked vehicle!) otherwise insurance may be denied. You should always aim at banking on the next working day. If you use some form of meeting receipt sheet, you should know before you leave your meeting how musch is to be banked in each account. All that is necessary then is to write out the bank deposit slips and go to the bank. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 16

  17. CASH PAYMENTS PAYMENTS MUST NEVER BE PAID WITH CASH With a couple of exceptions, you must always pay by cheque. It can be tempting to pay for a dinner from the cash collected at the dinner, but you must never do so. It distorts the record of the Club’s income and expenditure. It violates constitutional requirements. It leaves the Club’s Treasurer open to accusations of impropriety. It does not leave any adequate record of what has taken place. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 17

  18. CASH PAYMENTS (Continued) PAYMENTS MUST NEVER BE PAID WITH CASH With a couple of exceptions, you must always pay by cheque. What about if you paid for a meal by $700 cash from your receipts, and then dishonest venue staff pocket the cash? You know you paid for it, but you could have to pay for it again. The author knows of one instance where this actually happened. Don’t forget either, that this would be admin money – money from members own pockets. How would you explain that to your fellow Lions? Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 18

  19. CASH PAYMENTS LEGITIMATE EXCEPTIONS The Secretary usually runs a small cash advance account to pay for postage etc. When this cash account needs topping up, vouchers for the amount spent are given to the Treasurer and a cheque is written for the amount – thus showing a payment by cheque in the books although the actual payments have been made by cash. It is quite legitimate then to give the Secretary actual cash from the meeting receipts (provided it is from the same account) and bank the cheque along with your meeting receipts, treating it as cash and banking it back to the account from which it was drawn. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 19

  20. CASH PAYMENTS LEGITIMATE EXCEPTIONS(Continued) You can use a similar method where cash is needed to make many purchases for something like a food stall, provided you always cover the amount with a cheque and obtain dockets for all expenditures made with cash. IT IS IMPORTANT THAT YOU UNDERSTAND THIS PROCESS Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 20

  21. RE-BANKING CHEQUES To further explain the re-banking technique discussed on the last page: You can write a cheque for something, and then cash that cheque from funds in hand, banking the cheque in place of the cash you have handed out. What you are doing is simply cashing a cheque. You are still paying the amount by cheque, and following all of the rules. It is perfectly normal and legitimate business practice to bank a cheque vback into the account on which it is drawn. If you do not fully understand the process, then do not use it. It is simply a convenience that can save someone a trip to the bank, not a compulsory procedure. THE TREASURER’S BOOKKEEPING MANUAL EXPLAINS THE TECHNIQUE IN DETAIL Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 21

  22. RE-BANKING CHEQUES – A PRACTICAL EXAMPLE Let’s say you are running a sausage sizzle as a fund-raiser. As often happen, you run low on supplies so someone goes out and buys more bread, ice, paper plates, whatever, using cash from the bill float. At the time there is probably no practical alternative way of getting these items. The Treasurer collects the receipts for all of this extra expenditure, then simply raises a cheque for the total amount before he banks the proceeds. The cheques face is written to the Club’s activities account, but the cheque butt shows it being for supplies for the fundraisning sausage sizzle. The cheque is then banked along with the rest of the cash. The amount of the takings is now correct, as is the amount of the costs. Both of these would have been wrong and misleading had the case simply been used and no cheque written. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 22

  23. PAYMENT AUTHORITY You will remember from our discussion of the Constitution as it applies to the Treasurer that all payments must be authorised by the board. THERE CAN BE NO EXCEPTIONS TO THIS RULE. The board can authorise ongoing payments – such as meal costs at meetings – with a bucket approval rather than individually, and usually does so. Some payments are authorised retrospectively. i.e. the payment is made by the Treasurer as soon as the account is received, and then the board ratifies the payment at a later date. Lions accounts, particularly dues fall into this category. They MUST be paid as soon as they are received. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 23

  24. PAYMENT AUTHORITY (Continued) FOR THE BOARD TO BE SEEN A APPROVE A PAYMENT IT MUST BE MINUTED AS A RESOLUTION. (A resolution is a motion that has been passed). Auditors usually want to see a copy of the minutes to satisfy themselves that payments have been approved. The Treasurer needs to make sure that all payments are so minuted and will often move the payment motion himself. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 24

  25. PAYING LIONS DUES ACCOUNTS Twice each year, you will receive accounts for the Club’s dues. Each time you will get two accounts, one for dues payable to both your own District 201V1-4 and to the Australian Multiple District (MD201), and another one for International dues. THESE ACCOUNTS MUST BE PAID PROMPTLY. Do Not wait for board approval to pay them, rather get retrospective approval. Send ALL of these payments to your CABINET TREASURER (The address will be on the notice from your District). Write a separate cheque for the International Dues (use the currency conversion sheet provided with the statement to work out how much in Australian dollars), but DO NOT SEND THIS CHEQUE TO USAIT MUST BE SENT TO YOUR CABINET TREASURER, who will bank it within a special International fund in Australia. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 25

  26. STATEMENTS FROM LIONS CLUBS INTERNATIONAL Every month you will receive a statement of account from LCI. Because of the exchange rate variations, these statements are almost impossible to reconcile with your payments even if you did so in US Dollars. New amounts due to be paid will always have something in the body of the statement showing it as a new amount. If the statement simply has a balance carried forward, and you have recently paid a similar (though different) amount, then there is probably nothing to pay. There is always a delay in showing payments and it is quite likely that you will get a new statement without your last payment showing. It is usually safe to ignore small ongoing amounts – always less than $25US – as simply exchange rate variations. THIS TOPIC IS DEALT WITH EXTENSIVELY IN THE TREASURER’S BOOKKEEPING MANUAL AND DISTRICT HANDBOOK. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 26

  27. KEEPING TRACK OF DUES (AND OTHER MONEY OWED) Many Treasurers have trouble keeping track of who has paid their dues and when they have paid up to (particularly if some members pay a whole year and others pay three or six months at a time). A simple ledger card which works like an old fashioned bank book is the easiest way. One card (sheet) is raised for each member and it is used until full. A sample is shown below for one member. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 27

  28. KEEPING TRACK OF CAKE AND MINT MONEY You can use a form of ledger Card to easily keep track of ongoing amounts such as Christmas Cake and Lion Mint money. You will find it easier to use a separate card from the one for dues, preferably one each for cakes and mints. With cakes, you can show actual amounts, starting with the value of cakes taken as the amount owed then crediting amounts paid in or cakes returned and adding the value of extra cakes taken to the amount owed. With Lions Mints, you will need a more flexible approach because the amount collected is rarely the theoretical amount. It is more practical to keep track of the number of boxes (inners) taken and to compare the actual returns with the theoretical returns. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 28

  29. REPORTING TO YOUR CLUB AND BOARD Treasurer’s reports are no different to any other report – they should be: Brief Factual Informative ACCOUNT BALANCES SHOULD ALWAYS BE RECONCILED BALANCES Raw balances direct from the bank statement are next to useless. A copy of the Bank Reconciliation Sheet and the Bank Statement itself must be shown to the Board each month. Give the balances to the Secretary in writing so that the minutes will be accurate. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 29

  30. REPORTING TO YOUR CLUB AND BOARD (Continued) Your monthly report should include a brief income and expenditure statement so Lions know where the money came from and where it went. Members will want to know the financial outcome of projects and fundraisers as soon as possible after the event – even if that result is not quite finished. Amounts for payment should be presented as a written list with a copy to the secretary for the minutes. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 30

  31. BOOKKEEPING The usual form of Club accounting is based on a simple multi-column cashbook with separate books for each account. Bookkeeping is beyond the scope of this tutorial. Refer to the Treasurer’s Bookkeeping Manual if you need help setting up or using the books. It is always easiest to write up the books as soon as possible after a meeting, while everything is fresh in your head. It is much harder to do two weeks later, the night before your next meeting. As soon as you receive a bank statement, you should reconcile the account to it. Bank reconciliation is covered in detail in the bookkeeping manual. Sort out any reconciliation discrepancies as soon as you can. Seek help if you can’t make an account reconcile. You cannot reconcile future statements if there is one past statement that is not reconciled. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 31

  32. YEAR END If you have kept your books up to date you should have little trouble completing your end-of-year procedures and handing your books on to the next Treasurer. The books you hand to the auditor should be complete. It is not the auditor’s job to prepare your annual income and expenditure statements or balance sheet. Their job is to check that your Club’s financial position is as your books say it is, and that you have complied with various legal requirements. If you use “Lionsbooks” software, most of the work will be done for you. You will also find some useful help in the Treasurer’s Bookkeeping Manual. Seek help from someone knowledgeable if you are having difficulty in preparing the year-end statements. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 32

  33. YEAR END (Continued) To make it easier, try to complete all of your banking before the last day of the year. You should not be holding any unbanked money at all. Write your books up to the last day, add all of the columns to work out the income and expenditure totals for each disection. This is the basis of your income and Expenditure Statement. You cannot complete this step until you finalise the banks statement from the year-end statements. As soon as you get your bank statements for the end of the financiual year, reconcile them and then complete the Income and Expenditure Statement. Raise a balance sheet, seeking experience if necessary. Obtain a separate set of bank deposit books and cheque books well before the end of the year. These will elt you keep operating whilst the current set are with the auditor. They can alternate with the first set year by year. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 33

  34. YEAR END (Continued) Hand to the auditor, prepared separately for each account: The cashbook, or printed cashbook sheets from the computer. The prepared income and expenditure statements. The balance sheet. Bank deposit books and slips for all deposits. Cheque books. All butts should be complete and accurate. All of the bank statements for the year. Receipts for all expenditure, and receipts (book copies) for all income. Any explanatory notes that you feel are necessary. These should be neatly typed because they form part of the Club’s official report. One complete set of minutes, all meetings, including board, for the year should also be provided. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 34

  35. YEAR END (Continued) Within a day or so of receiving your year-end bank statements, you should be able to hand over to the incoming Treasurer: A set of bank deposit books. A set of cheque books. A reconciled end of year balance of each of the accounts.(Obviously subject to audit, but if you have done your books well, there is not likely to be any change.) A set of Member’s Ledger Sheets, showing the date member’s dues are paid up until, and any indebtedness to the club. A copy of the Income and Expenditure Statements and the printed cashbook sheets if you use the computer. It will help the new Treasurer set up their books. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 35

  36. FINDING HELP You will find a lot of help in the Treasurer’s Bookkeeping Manual, the District Handbook, and the LionsBooks Manual if you use LionsBooks. Past Treasurers in your own or nearby clubs, accountant and bookkeeping members and other professional and experienced Lions will usually be pleased to help and advise if you ask. There is a wealth of experience in your District Cabinet Officers. The Cabinet Treasurer can not only help, but can probably tell you someone else who can. Your District’s Global Leadership Team is another good source of assistance, often with plenty of written matter on hand. The MD201 “Club Administration Manual”available on the Lions Australia Website also has extensive help for Treasurers. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 36

  37. SUMMARY At least two separate bank accounts. Money from the public must never be used for administration. Receipt all income and bank within 48 hours. Use a meeting receipt sheet. The Board must approve all payments and approval must be minuted. Always pay by Cheque. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 37

  38. SUMMARY (Continued) Pay Lions accounts immediately and seek retrospective approval. Reconcile bank statements and write up books promptly. Report reconciled bank statements to meeting with brief income and expenditure statements. Keep members informed. Prepare a dues (admin) budget no later than May. Use Member’s Ledger Sheets (cards). Prepare ypour year-end statements promptly and hand over by mid July. Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 38

  39. This Presentation was originally designed by Updated and Revised April 2015 by District 201V1-4 GLT Lions District 201V1-4 Doc No GLT-PPT-0001 Rev 02 Slide 39

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