Things Financial + Oct 2015

1. Things Financial +Oct 2015

2. Training Outline • Introductions • NLC Treasurer overview (from National) • Budgets • Financial Year • Finance Process Overview • Intro to NLC financial program spreadsheet • General questions

3. Financial Leadership • Develop and implement Corp’s financial plan • Your annual program drives your budget • Understand what you get for what you spend • Assign responsibilities for authorizing & monitoring • Formal reviews part way through the year

4. Financial Leadership • Branch President’s Role • Help the Branch Treasurer implement good stewardship • Spend time with Treasurer and Corp • Develop plans and associated budgets • Implement good stewardship • Review reports monthly • Have audits done

5. Financial Leadership • Branch Treasurer’s Role • Work with President, Branch and Corp to create an annual budget • Measure Financial Performance • Keep records • Report results • Support DND LSA claims • Annual CRA Charities Return • Response to Audit

6. Cash Accounting….. • Simpler method • Transactions are based on the date cash flows in or out of the bank account • Date cheque signed secondary • Simple Accounting method • Requires some knowledge • Navy League of Canada spreadsheet basis

7. Budgets: Overview • Financial Plan for what you want to do • Financial management performance tracking • Income • Expenses • Surplus or deficit • Assets

8. list 5 mandatory expenses

9. list 3 discretionary expenses

10. list 5 sources of revenue

11. Budget

12. Sub-accounts • Keep track of specific fundraising or expense activities • All must flow through Branch • May use separate bank account, or use separate line entries in NLC system • All must be visible and accounted for to Branch and Division • All subject to Annual Audit

13. Multiple Year Ends • Corp training year: September to June • Government financial year: April to March • Branch Financial Year End – no standard • What is best for your Branch? • Depends on your perspective • Always a compromise • Always will cross over someone’s YE • Needs some “pre-planning” for budgeting

14. Start of Financial Year • Identify Corp training needs • Identify Other Corp or Branch expenses • Create Fundraising plan • Draft Budget 2 months before Start of New Financial Year (may differ from Training Year) • Final Budget needs approval before start (one month ahead is good practice) • Branch needs to approve FY Budget

15. During Financial Year • Only items in Budget can be expensed • Branch and Treasurer have information • Track performance and discuss • Revisions can be made mid-year • Identify changes needed to Branch • Branch needs to approve revised Budget

16. Financial Year End • Branch will Audit Financial Statements • Summary of Expenses • Summary of Revenue • Summary of Assets and Financial Position • Review what occurred and why • Use as a start point for the next year

17. NL Finance Process Overview Track Disbursements (Expenses & Purchases) Create Budget Input to NL spreadsheet Print Financial Reports Track Receipts (All Revenue) • Check previous years as a reference and start-point • get input from Officers • get input from Branch • see if new fundraising or expenses are proposed • add any new fields to NL budget spreadsheet if needed • Produce “Draft” budget with new estimates • get approved from Branch • any updates need a new Branch Approval Monthly: 1) Statement of Receipts and Disbursements 2) Statement of Assets and Liabilities 3) Optional to include details for each item Annual: 1) Annual Branch Report 2) CRA Charities Return 3) GST Rebate 4) Auditor’s Report 5) DND Local Support Allocation (LSA) • Check against budget description for input location • Input into spreadsheet by bank date as system is cash based (not accrual based) • Option to record cheque but only put the value in the spreadsheet when cleared by the bank • Verify items are acceptable and original receipts are provided

18. Example • JTC Budget and Financial Statements

19. Questions? • General questions?