Gary Brendzel, CPA DISTRICT 5300 Budget/Finance Chair 2013-14 gbrendzel@gmail@aol

1. District 5300 Assembly April 20, 2013 Training the RotaryClub Treasurer Gary Brendzel, CPA DISTRICT 5300 Budget/Finance Chair 2013-14 gbrendzel@gmail@aol.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 budgets • 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 Budgets • Reviews prior years • Obtains input from directors • Works with the president to draft two budgets (Operations and Charity) • Presents budgets to board • Obtains approval • Submits copies of the budgets to the Governor before the start of the Rotary year

5. District Items to Include in the Club’s Operations Budget • Presidents Advance: $500 – estimate (registration, room and meals) • District Assembly: $300 (for your club team) • PETS: $610 – estimate (spouse $300) • District Conference: ($600 approximate) Allowance for club president and hospitality expenses

6. District Items to Include in the Club’s Operations Budget • RI Convention: Allowance for club president-elect or president • PR/Foundation & Membership Training Seminar: $25 per person • BODTS: $25 per person

7. District Items to Include in the Club’s Charity Budget • RYLA: $300 per student (even number) • TLC: $300 per student (even number) • Interact Symposium: $180 per person – estimate (minimum of 3) • Dan Stover Music: $275 Entry Fee • 4 Way Speech Contest: $275 Entry Fee • George Hensel Essay Contest: No Charge • GSE: Special costs that might be incurred for hosting

8. Monitors the Budgets • Budgets serve 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 (from within your club, community or other Rotary club) 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 • About computer or software systems

11. Software Can Help Accounting systems can be purchased. Some common ones are: • Quicken • Quickbooks • Peachtree • DACdb

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.

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 and database • 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, Governor-elects, governor nominees, 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 dues twice a year. • Each club shall pay $25 per half year in 2012-13 per member semi-annually in July and January. • Dues are due on July 1, 2013 and January 1, 2014.

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 club’s ability to pay. • Club dues include $5 per member for the annual District Conference and a $3 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 RI. • 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 RI a check along with the completed SAR report. • The secretary should also make membership changes and updates through the DACdb.

21. Rotary International Dues • Each club pays to Rotary International per capita dues for each of its active members. • In 2013-14 dues are $32.07 per half year. • Dues are payable in July and January. • A prorated amount 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. Remittances to the District • Payments for most* district activities (dues, RYLA, Dan Stover, etc.) are made to the are paid to Rotary District 5300. • Clearly note on the bottom of the check for what event the check has been written. • Send payment to the District office: Rotary international District 5300 1930 Village Center Circle, #3-396 Las Vegas, NV 89134 * For a few specific district-wide charitable projects (e.g. The Peace conference, Rotaplast, Wheelchair Distribution, etc.) you will be instructed to make the checks out to the Rotary District 5300 Foundation.

23. 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 Ethics Essay contest.

24. District Expense Reimbursement • Requestor for reimbursement completes the first part of the District Expense Reimbursement 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 Bookkeeper for check issuance. • District Bookkeeper issues check and mails check out as per request on form.

25. Insurance • All clubs are covered under a general liability (“GL”) and directors & officers/employment practices liability (“D&O/EPL) insurance by RI. • Additionally all district and club officers are covered under a separate D&O policy. • To obtain information go to the District 5300 or RI websites. • The programs do NOT provide coverage for bodily injury or property damage sustained by a first-party insured, such as a Rotarian or volunteer.  • Chartered Interact and Rotaract clubs, RYLA, TLC are covered by the policy.

26. RI Foundation Grant Funding • To participate in District grants or global grants clubs must be qualified first. • District Grants: No separate bank account needed, but when submitting a final report, it must include an accounting of all costs including receipts. • Global Grants: “Disbursing clubs” will need a separate bank account for the grant and must submit a full accounting with receipts to TRF.

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

28. 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.

29. 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

30. 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.

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

32. 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.

33. Questions