LEAGUE FINANCIAL RESPONSIBILITIES

PRESENTED BY: ILONA MONTOYA, CFO PRESIDENTS’ WORKSHOP APRIL 14, 2012

RIPPED FROM THE HEADLINES:

Bisbee, AZ Local Man Enter Plea in Alleged Soccer Theft ($25,000 or more) Roanoke, VA Former Treasurer of Youth Sports Organization Pleads…($85,000) Kingston, WA Woman sentenced to jail alternatives... ($100,000 & used Club’s Paypal account for personal items)

HEADLINES…

West Columbia, SC Woman charged in theft of funds from West Metro Soccer League ($28,000 – also was former Church Employee) Appleton, WI Woman sentenced for emptying accounts of local soccer club

HOW NOT TO MAKE THE HEADLINES

Establish and Follow Procedures

• • Two signatures on all checks Bank statement and cancelled checks not delivered to the person who has the checks • • Review statement for non-check disbursements • ATM • • On line payments Transfers Review check payees and signatures

AVOIDING HEADLINES…

Cash Receipts

• • Two people count cash receipts Checks deposited in a timely manner • • Obtain deposit only ATM card to facilitate process Record descriptions of deposits Eg. 35 checks @ $10 for t shirts, or J. Smith $690

AVOIDING HEADLINES

On line credit card payments

• Print out monthly detail of payments to support Bank Deposit amounts • Review for unexpected refunds

AVOIDING HEADLINES

Disbursements

• • • All invoices should be approved, either physically or with email support Easy to double pay invoices that are received via email When paying off a statement, check that league has not already paid part of the statement – Checks in transit when statements are processed

MONTHLY REPORTING

Bank Statement and Reconciliation Comparative Income Statements

• Difficult to judge results w/o measurement tool • • Compare to budget Compare to prior year

1099 REPORTING

Independent contractors receiving >$600 in a calendar year must receive a 1099

• Paying in cash does not excuse an organization from the reporting requirements

Examples of qualifying events:

• • All attorney fees Payments to non-corporate entities Caterers, Referees, Field Painters…

FACTORS IMPACTING INDEPENDENT CONTRACTOR CLASSIFICATION

1.

2.

3.

4.

5.

6.

Whether or not the one performing the services is engaged in a separately established occupation or business Custom in the industry and location Required level of skill of the worker Whether the principal or the worker supplies the instrumentalities, tools and place of work Duration of Services Method of payment, whether by the time, a piece rate, or the job

FACTORS, CON’T

7.

8.

9.

Whether or not the worker’s services are part of the regular business of the principal Whether or not the parties believe they are creating the relationship of employer and employee Principal and worker contract 10. Termination 11. Required to accept assignments 12. Training

FACTORS CONT’D

13. Meetings 14. Reports 15. Dress code 16. Policies, rules or procedures of conduct.

17. Worker can be fined.

http://www.edd.ca.gov/pdf_pub_ctr/de231aa.pdf

SALES TAX

If the League does direct sales of merchandise, operates snack bar… the league needs a Sellers’ Permit to report / pay the sales tax to the state Non-for profit ≠ sales tax exempt on purchases or sales CA Sellers Permit Application http://www.boe.ca.gov/pdf/boe400spa.pdf

TAX FILINGS

CA Attorney General: RRF-1 IRS: Form 990, or 990EZ or 990-N FTB: Form 199 FTB: Form 109 for unrelated business income > $1,000 CA Attorney General: Audited Financials if >$2m in revenue Sec’y of State: SI-100 State of Information Annual California Tax Filings http://www.hurwitassociates.com/l_s_annual_ca.php

REFERENCES

The Treasurer’s Compass: Best Practices, Checklists & Procedures http://midwestssw.org/wp-content/uploads/Treasurers-Compass_Best-Practices.pdf

EDD Information Sheet: Amateur Athletic Officials http://www.edd.ca.gov/pdf_pub_ctr/de231aa.pdf

CA Sellers Permit Application http://www.boe.ca.gov/pdf/boe400spa.pdf

Annual California Tax Filings http://www.hurwitassociates.com/l_s_annual_ca.php