Things Financial +

1. Things Financial +

2. Treasurer Training Outline • Introductions • NLC Treasurer overview (from National) • Intro to NLC financial program spreadsheet • Specific NLC spreadsheet functions: • Budgeting • Receipts (income) • Disbursements (expenses) • Assets and Liabilities • Reports • CRA calculation • Hands-on workshop with spreadsheet • General Treasurer questions • After training help and support

3. Financial Leadership • Branch develops and implement the Corp’s financial plan • Your annual program drives your budget • Understand what you get for what you spend • Assign responsibilities for authorizing & monitoring • Formal review at least half way through year

4. Financial Leadership • Branch President’s Role • Help the Branch Treasurer implement good stewardship • Spend time with your Treasurer • 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. Financial Stewardship • Never sign a blank check • Always see documentation • Reconcile your bank That’s showing due care and diligence!!

7. Accrual accounting….. • Pretty much standard in business • Considers transaction at date of Invoice sent out or the Cheque was authorized • Accounts receivable, A/R • Accounts payable, A/P • Depreciation of assets • Requires accounting knowledge • Not required by Navy League

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

9. Navy League doesKISS Accounting • What you own • Less what you owe • Equals what you are worth • Money received during the year • Less money spent during the year • Equals increase in worth Balance Sheet Income statement

10. Statement of Receipts and Disbursements • Amount in bank at start of year • Add receipts during the year • Subtract disbursements during the year • Should be bank at the end of the year

11. Statement of Assets and Liabilities • Assets (what you own) • Liabilities (what you owe)

12. Keeping the records • Paper (It’s OK) • Computer • Excel spreadsheet • Quicken • Simply Accounting • Navy League requirements are minimal

13. Computer Software • Quicken, Simple Accounting • Advantage: Can prepare financial statements , etc • Disadvantage: Must learn system and invest in set up • Recommended for larger branches (or treasurers who are already familiar)

14. Excel Software – NLC Program • Meets the by-law requirements • Provides a way to record financial transactions • And like magic: produces the required financial statements

15. So tell us more about this magic… • Branch puts money into the bank • Treasurer records it in the Excel Receipt sheet • Results in an automatic update: • Branch Statement of Receipts • Branch Statement of Assets and Liabilities

16. But there is more magic….. • Branch writes a check • Treasurer records it in the Excel Disbursements sheet, for cash based system the value is added in the column when cleared by bank • Results in an automatic update: • Branch Statement of Disbursement • Branch Statement of Assets and Liabilities

17. A bit more magic……. • Branch buys an asset (maybe a boat) or incurs a liability (say a mortgage) • Treasurer enters it into Excel Record of Assets and Liabilities sheet • Results in an automatic update: • Branch Statement of Assets and Liabilities

18. And some additional magic……. • Expanded Excel spreadsheet with some new features can be provided • Budget sheet with entries that automatically update the spreadsheet fields and Reports • After setting up accounts, the CRA Charities Tax Return Fields are automatically updated and correspond to the Return Line Numbers

19. Is it mandatory? • No • Meant to help small branches • Will allow them to meet requirements • However no need to change if branches currently able to produce reports required by by-laws

20. So let me show you some magic!

21. 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

22. Questions? • General Treasurer questions? • After training help and support