Transcript No Slide Title

Book Keeping 101
“How To Keep Track Of Cadet Funds”
Overview
•Budget
•Ledger
•Paper Trail
•Petty Cash
•Reconcile
•Audit
•Financial Statements
•Problem Solving
Budget
•
Support Committee and CO should develop this
together at the beginning of each Training Year
(September) using the Training Plan developed by the
CO as a guide.
•
See attached sample of Budget
Ledger
•
Every Support committee should keep a Ledger to
track deposits and cheques
•
Debit and Credits be be show as “In & Out”
•
Be sure to record the cheque number
•
Put down as much detail as possible in the explanation
column, ie.the name of the Company or what the
deposit was for.
•
If you are reimbursing someone, make sure you
explain what it is for.
•
See attached Sample of a Ledger
Sample of Simple Book Keeping
February 2004
Date
Chq.#
Explanation
Feb. 1
Opening Balance BF January
Feb. 7
Deposit - Tag Day Funds
Debit
(IN)
Credit
(OUT)
$5280.
$2000.
Feb. 22
10
John Smith -Reimbursement Winter Indoc
(Jan.) Rations from Costco
$500.
Feb. 22
11
Rattlesnake Point Conservation Area
$230.
Feb. 25
12
Acme Bus Co.- Trans. To Conservation Area$500.
Feb. 25
13
Reimbursement to Mrs. Brown for Valentine
Dance - Food, & DJ.
$600.
Feb. Balance
Feb. 28
Bank Charges per Jan. Bank Statement
Feb. 28
Bank Interest per Jan. Bank Statement
Feb. 28
Final Balance
Balance
$5450.
$ 5.
$ .50
$5445.50
Paper Trail
• Must have Receipt for every cheque written
(Originals Only)
• Explain what the Reimbursement is for
• Copy of Deposit Slips must be kept
• “Request For Funds Form” provides a good
paper trail. See attached form
• No Blank Cheques
• Two Signing Officials on each cheque (Not related
to each other)
• Make sure Support Committee is reimbursed for
advance funds given for Mandatory Training
CO’s Petty Cash
• $200 - $500
• Receipts must be given to the Support
Committee to offset expenses
Reconcile 1+1 = 2
• This should be done each month when Bank Statement arrives
• Step 1 - Compare bank statement to the Ledger for that month and
check off on your ledger the deposits and cheques that have been
cleared through the bank.
• Step 2 - On a separate piece of paper, put the ending balance for
the month from you ledger and the ending balance from your bank
statement.
• Step 3 - Make adjustments such as adding interest and
subtracting bank charges from the Ledger balance and subtracting
cheques that have not been cashed from the bank balance.
• Step 4 - After making adjustments both balances should be equal.
Keep reconciliation paper with your records.
• See sample attached.
Reconcile With Bank Statement
For the Month of February
Ending Balance Per Ledger
Bank Charges
Interest
Balance
$5450.00
< 5.00>
+.50
$5445.50
Ending Balance Per Bank Statement
$6045.50
Outstanding Cheque #13
<$600.00>
Balance
$5445.50
Audit
At the end of each training Year, the Support
Committee should ensure that the books are
audited.
Financial Statement Must Be Submitted
To League Office
• Midway through the training year and at the end of
the training year ie. January & June
• See sample of Financial Statement attached
Problem
Solving
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Problem #1
The Support Committee has planned a Car Wash to raise funds for
the Cadets. One Committee member has purchased several items
such as soap, buckets and brushes. Pizza and soft drinks were
purchased at noon for the Cadets and the funds were taken out of
the car wash proceeds. The cost of the pizza and refreshments
came to $76.00. After the monies were collected and counted at
the end of the day, the member that purchased the soap, etc. asked
to be reimbursed for their out of pocket expenses of $52.30 from
the total funds collected. The cash was handed over. That left only
$230. profit on the car wash.
How would you have handled this so a clear paper trail is
evident?
Problem #2
The Cadets are going to a conservation area for the weekend. The
cost is $8.00 per Cadet. The Conservation are wants to be paid
upon arrival by cheque. However since the CO is unsure of how
many Cadets will actually show up, he asks the Support
Committee to sign a blank cheque and he will fill in the amount
later.
What alternatives does the Support Committee have?
Problem #3
The Commanding Officer asks for her Petty Cash to be topped up
to $200., but has lost several of the receipts showing what was
expensed from the Petty Cash.
What should the Support Committee do?
Problem #4
The Commanding Officer is planning a recreational activity. The
plan is to take only the six Senior Cadets skiing for a weekend. The
cost for accommodation, meals, ski rental and transportation will
come to approximately $2000. There is enough funds in the bank to
cover this, but the Support Committee feels that this is unfair to the
other Cadets and for the same amount of funds twenty Cadets could
go skiing at a local ski hill for one day.
Does the Support Committee have the right to refuse the
funds?
What do you suggest they do?
Problem #5
A Cadet Corps held a Tag Day. After the Officers and Support
Committee finished counting the funds, one of the Officers
insisted that they be reimbursed from the tag day profits for
rations purchased for an exercise that was held 2 weeks prior. He
promised to hand in the receipts later.
Should he be reimbursed from the Tag Day profits?
What would you do?
Problem #6
The Commanding Officer decides to sell the band instruments as the
Cadet Corps no longer has a band. The instruments were originally
purchased with Sponsor funds. The Support Committee finds out
after the band instruments were sold and claims the instruments are
theirs not the CO's.
Whom do the band instruments belong to?
Does the CO have the right to sell the band instruments?
How would you handle this?