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Session Objectives
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Keeping Good Financial Records
- Administration
- Activities/Project
Financial Planning
Budgeting and Reporting(Monthly & Year End)
Audit
Tax Returns
Bonding
Who is the Treasurer?
The Chief Financial Officer of the Club
 The Treasurer is a member of the Board of
Directors
 And Normally is the Chair of the Finance
Committee
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Responsibilities of the Treasurer
Receive all monies from the Secretary
 Payment of all Club Obligations
- Remember All Checks MUST be
approved by the Board of Directors
 Maintain The Financial Records of the
Club
 Prepare Monthly and Annual Financial
Reports
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Record keeping
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To begin With the Club must operate at least two
(2) separate bank accounts:
Administrative
Project/Service Activities Account
All Checks MUST be approved by the Board of
Directors
The Board May approve Expenses in
Advance(Those Associated with Yearly Projects,
Dues Etc.)
Administrative Account
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The Administrative Account is used for the
following:
All Receipts such as; Membership Dues; Tail
Twisting
Other Receipt of funds designated for this
purpose
Payment of International Dues, MD 20 Dues,
District Dues and Printing, Stationery, Postage,
Certificates, Plaques Etc.
Remember, This Account MUST be Separate
from the Activities/Project Account
ServiceActivity/Project Account
The Service/Project Account is used for the
following:
 All monies raised from the public for
service projects
 Expenditures relating to service projects
 Remember, This Account MUST be
Separate from the Administration Account
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How do you maintain these accounts?
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Through Separate Bank Accounts
Opening Banks Accounts :
1. Complete IRS Form SS-4 in order to obtain
Employer Identification Number (EIN)
2. This EIN is used to open Bank Accounts only
3. This EIN must be kept with the club’s
permanent records
How do you maintain these
accounts?(Cont’d)
The number must be used on all Federal
Tax Returns
 The assignment of this number does not
grant Tax-Exempt status to Non-Profit
Organizations
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Signatures Required on Bank Account
We recommend 2 to 3 (The President,
Secretary and Treasurer)
 These signatures must be changed annually
when the officers change
 Establish a relationship with a local bank
 Try to obtain account without any charges
most banks waive these fees.
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Maintaining Club’s Financial Records
Accounting Ledger sheets
 Software such as QuickBooks or Clubware
 Excel Spreadsheet
 Treasurer’s Supplies through Lions Clubs
International (Cash Receipts and
Disbursements Sheets)
 Voucher System is encouraged for monies
paid out and received
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Reporting to the Club Membership
The Annual Budget
 At the Board of Directors meeting
 At the general membership meeting
 Year-End report of all financial activities
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Preparation of Annual Budget
Responsibility of Treasurer, The President
& The Finance Committee.
 Budget is a Guide, not “authority” to spend
 Once approved, it should be followed.
 Any deviation, should receive board
approval
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Sample Administrative Budget
Sample Project/Activity Budget
Monthly Report
Administration Fund
 Show Beginning Balance
 Income to the Fund
 Checks Written From the Fund
 Ending Balance
Activity Fund
 Same as Above
Year-End Report
Same as Monthly Report but covering the
whole year
 The Information is needed for tax returns
and year-end activity report.
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Reporting to the Government
File Form 990 EZ Or Form 990
 File Based on Two elements – 1) The Gross
Receipts 2) Total value of Club Assets.
 File Form 990 N (Postcard Report for all
clubs with gross receipts under $25,000)
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When to File a Return
Gross Receipts are Less than $25,000 – You
must file form 990 N on internet
 Gross Receipts more than $25,000 and less
than $100,000, and total assets are under
$250,000- File Form 990EZ or form 990
 If Club receives IRS packet with
preaddressed label – File Return
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Form 990EZ
Audit
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Should be done at end of Lions year
Bank Statements
Documentation of all Checks Deposited
Receipts for all Expenses
Two Signatures on Each check
Copies of Tax Returns
Monthly Report
Year-End Report
Bonding
Your Club should have a Position Schedule
Fidelity Bond covering the Treasurer
 This type of bond covers any person
holding the office of Treasurer and or
President of your Club
 This bond would be held and paid for by
your club. The Secretary would be the one
to purchase the bond
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Other Items of Interest
Incorporation
 Non-Profit Status(501©-3)
 File IRS Form 1023
 Insurance for Service Activities
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Thank You For Attending this
Presentation
Robert F. Shively, PDG
2005-2006