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Rotary District 7570
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4/25/2015
Rotary Club Treasurer Training
Cynthia Page
District 7570 Asst. Treasurer
Rotary Club of Harrisonburg-Massanutten
Jim Ridenour
District 7570 District Treasurer
Rotary Club of Staunton-Augusta
Rotary District 7570
4/25/2015
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Who is here today?
Name
 Club
 How long in Rotary?
 How long as Treasurer?

Rotary District 7570
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4/25/2015
Introduction

Purpose: To Define the Roles and
Responsibilities of a Rotary Club Treasurer

It is vital that each Rotary Club exercise
impeccable fiscal responsibility to optimize the
use of its funds and maintain trust in the
community and amongst the club membership

“For a small piece of paper it carries a lot of
weight.” For the Love of Money – The O’Jays
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4/25/2015
4
Topics
• Treasurer’s Role and Responsibility
•
•
•
•
•
•
•
•
•
Resources
What is expected of you?
Club Budget
Financial Records & Accounts
Communication: Club, District, RI, IRS
Financial Reporting
Fiscal Control
Best Practices
Summary & Questions
5
Rotary District 7570
4/25/2015
Today’s Session
Your Participation is Key
 Ask Questions Anytime
 Share Your Insights
 Use Training Materials
 Feel Free to Move About
 Penny for my thoughts

Rotary District 7570
4/25/2015
6
Resources

Rotary Club Bylaws
(Manual Of Procedures 2013)
– Article 4 Section 7
Available on District 7570 web page
7
Rotary District 7570
4/25/2015
Click on District Downloads
Scroll Down
Rotary District 7570
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4/25/2015
Resources

Rotary Club Treasurer’s Manual
– Available on RI web page
9
Rotary District 7570
4/25/2015
club treasurer’s manual
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Rotary District 7570
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4/25/2015
What is expected of you?

Managing funds
– Planning, directing, monitoring, organizing $
Collecting and submitting dues and fees
 Paying bills
 Reporting on the state of your club’s
finances
 Developing a budget
 Preparing your successor

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What questions should you ask?
Where can I get a copy of last year’s
budget?
 Can you help me understand how it was
put together?
 Where are the bank accounts?
 Who has signature authority?
 How do I get online access?
 Do we have any debt?

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What questions should you ask?
How are dues billed and collected?
 What do I do with Foundation Gifts
(sustainer dues)?
 What paperwork do I need to file and with
who?
 Can I get a copy of our club bylaws?
 What caused you the biggest headaches?
 What do you wish you had an opportunity
to change?

Rotary District 7570
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Overview: Role of the Treasurer
Manual of Procedure page 8
Handling Club Funds – part 1
At the beginning of each fiscal year, the club’s board of directors must
prepare or cause to be prepared a budget of estimated income and estimated
expenditures for the year, which, having been agreed to by the board, shall
stand as the limit of expenditures for the respective purposes, unless
otherwise ordered by action of the board.
All bills shall be paid by the treasurer, or other authorized officer, only after
approval by two other officers or directors. A qualified accountant or other
qualified person must make an independent review of all the club’s financial
transactions each year.
Rotary District 7570
4/25/2015 15
Budget
 Budget
reflects the Club’s Annual
Plan
 Good budgeting is key to Club
success
 Involve the Board of Directors
 Ask questions
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Budget
 Find
out about all club activities
 Learn about the club’s cash flow
 Be conservative in estimates
 Plan a favorable balance at year
end
 Obtain Board approval
 Communicate in a Club Assembly
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Budget Revenues

Club dues
– Include district dues, RI dues
Guest meals
 Fund Raisers
 Split the pot
 Happy Dollars
 What else?

Rotary District 7570
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Budget Expenses – Club Level






Club Administration
– Printing
– Postage
– Badges/Pins/Certificates
– Meals
– New member packets
Committees (Authorized expenses)
Go back
– Projects
though the
– Donations
prior year
Miscellaneous Expenses
reports or
Contingency Fund
checkbook to
Special Funds
capture details.
What else?
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Budget Expenses – beyond the Club





Rotary International
– Dues (including Insurance, Rotarian Magazine,
Council on Legislation)
District 7570 Dues and computer fee
RI Convention and District Conference
Training
– PETS
– DTA
Talk to your
president and
– RYLA
committees to see
What else?
Rotary District 7570
what their goals are
for the year and
determine budget
impact.4/25/2015
20
Rotary International Dues & Fees
Reference: Manual of Procedure 2013
Per Capita Dues paid to RI
•Each club pays the following annual per capita dues to RI for each of its
members, other than honorary members:
•$27.50 per half year in 2015-16 [$28.00 in 16-17].
•Paid 1 July and 1 January, based on the number of members of the club
on these dates.
•Prorated dues for Rotarian joining between July 1 – Jan 1 – July 1.
•If a club has fewer than 10 members, it shall pay additional per capita dues
of an amount equal to the amount it would have paid if it had 10 members.
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Rotary International Dues & Fees
(cont.)
Rotarian Magazine
$6.00 per Rotarian per half year in 2013-14 (established by
RI BOD action)
Insurance
$2.74 per member (July 1 only). New rate in May 2015.
Dues for Representation at the Council on Legislation
$1.00 per member (July 1 only)
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District 7570 Dues and Fees
Per Capita Dues
$23.00 per Rotarian in 2014-15
Based on club roll as of September 30
Due December 1 – if not paid by January 1, 5% penalty
assessed
Invoice sent to club treasurer by PMAIL
Auto debit option available
Website & Database Maintenance Fee
$35.00 per club – payable with per capita dues
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Dues Summary
for
RI dues
Magazine
Insurance
COL
District dues
Total annual
Per quarter
Rotary District 7570
amount
$ 27.50
$ 6.00
$ 2.74
$ 1.00
$ 23.00
frequency
half year
half year
per year
per year
per year
annual
$ 55.00
$ 12.00
$ 2.74
$ 1.00
$ 23.00
$ 93.74
$ 23.44
when paid
July 1 Jan 1
July 1 Jan 1
July 1
July 1
December 1
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Sample budget
Number of meetings
Number of
members vs
number of
members
billed
Special Project
Rotary District 7570
Better to
keep fund
raising 26
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separate
Meal cost
varied by
number of
weeks
Rotary District 7570
Fundraiser
expenses
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Rotary District 7570
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Monthly cash flow varies
Rotary District 7570
Very slim margin!
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Time for a stretch break.
Rotary District 7570
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Overview: Role of the Treasurer
Manual of Procedure page 8
Handling Club Funds – part 2
At the beginning of each fiscal year, the club’s board of directors must
prepare or cause to be prepared a budget of estimated income and estimated
expenditures for the year, which, having been agreed to by the board, shall
stand as the limit of expenditures for the respective purposes, unless
otherwise ordered by action of the board.
All bills shall be paid by the treasurer, or other authorized officer, only after
approval by two other officers or directors. A qualified accountant or other
qualified person must make an independent review of all the club’s financial
transactions each year.
Rotary District 7570
4/25/2015 31
Approval and Auditing –
questions to ask?
Who is going to approve bills?
 How will approval take place?
 Does your club have an audit committee?
 What is their role?
 How is the annual audit going to be taken
care of?

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Treasurer Communication






Club Members
Club Secretary
Club President/Board
Committees
District 7570
Rotary International
& Rotary Foundation
Rotary District 7570






Dues Payments
Attendance
Financial Reporting
Budget Performance
Dues & Grants
Dues, Grants, &
Foundation
Contributions
4/25/2015
33
Membership Status
Secretary Responsibility
Treasurer Responsibility
Club Attendance
Records
Member Dues
Payment
Records
Remain on Club
Roster & Invoice
Next Period
Periodic
Review
Yes
Is Member
Current and In
Good Standing?
Rotary District 7570
Remove from
Club Roster &
No Final Invoice
Remove From
Active Invoice
System
4/25/2015
34
Communications – District 7570

District Annual Dues Payments
– Electronic Drafting
– Determined at District Legislative Assembly
(PETS)
District Grants
 Global Grants
 Check District 7570 Website

– http://www.rotary7570.org/
Rotary District 7570
Financial goals
set at PETS –
talk to your
President and
Board to prep
your4/25/2015
PE
35
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Communications - RI

Rotary Foundation Giving
–
–
–
–

Annual Programs Fund
Sustainer Payments
Permanent Fund
Polio Plus Fund
Visit Rotary International Website
– http://www.rotary.org/
Rotary District 7570
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Rotary Foundation
Submission Instructions
Choose Committees and Downloads
Rotary District 7570
Scroll Down to…
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Rotary Foundation
Submission Instructions
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Transmittal Form
Log in
2.1 Rotary Foundation Transmittal
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Rotary Foundation Communication
undesignated = Annual Fund - Share
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IRS – Tax Filing

Ask a CPA in
your club for help
Rotary Club is 501(c) 4
– Gifts to the club are not tax deductible
– If you have a foundation it is a 501(c) 3
– Gifts to The Rotary Foundation and club foundations
are tax deductible




Club must file a form 990-N if gross receipts
>$25,000 (includes meal payments)
If year ends June 30 – due by Nov 15
Fail to file for 3 years – may lose tax exempt
status
More info at irs.gov
Rotary District 7570
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Rotary District 7570
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Financial Reporting









Budget
Budget v. Actual
Income & Expense
Aged Invoices
Fund Raising
Foundation
Contributions
Reserve Funds
Audits/Reviews
Tax Returns (Form 990)









Board & Club
Board & Committees
Board
Board & Secretary
Board & Committees
Board & Foundation
Committee
Board
Board & Club
Board & IRS
44
Rotary District 7570
4/25/2015
Financial Records & Accounts



Checking Accounts
– Update Signature Cards
– Update Resolutions
– Statements & Checks
– Internet Banking Access
– Reconciliations
Savings and Investment Accounts Statements
Financial Reports - Sample reports in Club Treasurer’s
Manual
– Balance Sheet
– Profit & Loss Statements
– Budget v. Actual
Rotary District 7570
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45
Financial Records & Accounts

Rotary Foundation
– Contribution Records
– Sustainer Giving
– Special Gifts

Minutes of Meetings (Coordinate with Club
Secretary)

Indemnity Bond, if applicable

Tax Returns & IRS Documentation

Audit Reports or Committee Reviews
Rotary District 7570
4/25/2015
46
Fiscal Control

What is Fiscal Control?
– Insuring proper checks and balances are in
place to protect the integrity and funds of the
Club
– Systems to prevent things from going wrong;
to check for
 Errors, mistakes
 Intentional misdeeds
Rotary District 7570
4/25/2015
47
Fiscal Control
Use written agreements for club activities
 Discuss bonding/liability insurance

– Clubs in US have general liability and director
and officers/employment practices liability
insurance through RI
Report often
 Use audit committee
 Separate duties among club members
 Get approval for bill payment

Rotary District 7570
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Communications - Club
Segregation of Duty Needed
Segregation of Duty Needed
Treasurer Responsibility
Invoicing &
Collection of Funds
(Dues, Meals,
Contributions etc.)
Reconcilement
&
Oversight
Bank Statement
Bank Deposit
Make Payments
Transactions Entered
Into
Accounting System
Committee Responsibility
Formal
Report to
Board &
Approval
Financial Reports
Generated
Treasurer Responsibility
49
Rotary District 7570
4/25/2015
Best Practices



Plan for Succession and Transition
– Set term limit for Treasurer
– Appoint an Assistant Treasurer
– Bylaws May Require Amendment
Establish Segregation of Duties
– Approval & Payment of Bills
– Reconcilement
– Check Signing Authorities
– Opening Accounts
– Annual Reviews or Audits
Bonding – talk to your club
Rotary District 7570
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50
Best Practices




Formalize Budgeting
Work with Your Bank
– Utilize Online Banking Capabilities
– Minimize Fees
Meet and Report Regularly
– Board and Committees
– President
– Secretary
Use an Accounting System
– DaCdb (Smaller Clubs), Excel
– QuickBooks or Peachtree (Larger Clubs)
Rotary District 7570
4/25/2015
51
Big Sis Advice

Be sure sustainer contributions are paid to club before
remitted

Bill dues regularly so members know when to expect
billings

Stay current with deposits, bookkeeping,
reconciliations and reports

Talk to your board about how much they want to have
in reserves

Keep records for a minimum of three years after 990
filed
Rotary District 7570
4/25/2015
52
Big Sis Advice

Expect to get money/paperwork/etc. every
time you go to a Rotary event

Don’t be afraid to implement new controls
if they are needed – you may set the new
standard for how its done

Encourage new members
Rotary District 7570
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Timeline for budget development







January – tell PE and committee chairs that you
are starting to think about new year’s budget and
will be asking for their input
Spring – contact each committee chair and ask
for budget request for coming year
March – prep PE for goals at PETS
April/May – discuss with PE and prepare draft
budget
May/June – prepare budget & present to board
July 1 – new year
All year long – monitor and report
Rotary District 7570
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Tools & Resources

District 7570 Website
– http://www.rotary7570.org/
– DaCdb

Rotary International Website
– http://www.rotary.org/
– Download Library

Documents & Manuals
– Club Treasurer’s Manual (220-EN)
– 2013 Recommended Club Bylaws



Article 4, Section 6 (Duties of Officers)
Article 12 (Finances)
Article 14 (Resolutions)
– Club Constitution



Article 11 (Admission Fees and Dues)
Article 12 (Duration of Membership)
Article 14 (Rotary Magazine Subscription Required)
– Rotary International 2013 Manual of Procedure (035-EN, page 7)


The Rotary Foundation Multiple Donor Form (094-EN)
Consulting services, other sources
Rotary District 7570
4/25/2015
55
Help for Club Treasurers

Jim Ridenour, District Treasurer
– jimr@cfw.com
– 540-448-0308

Cynthia Page, District Asst. Treasurer
– cynthia.f.page@gmail.com
– 540-421-9928

www.rotary7570.org
Go to Member access - Help tab
for DaCdb FAQ, Help Desk, contacts, and more
56
Rotary District 7570
4/25/2015
Summary


Key Learning Points
• Role and Responsibility
• Resources
• What is expected of you?
• Club Budget
• Financial Records & Accounts
• Communication: Club, District, RI, & IRS
• Financial Reporting
• Fiscal Control
• Best Practices
Questions & Feedback
57
Rotary District 7570
4/25/2015
Rotary District 7570
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4/25/2015
Make my day Ask me a question
Rotary District 7570
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4/25/2015