Lions Clubs International
District 201 V1-V4
CLUB
TREASURER’S
HANDBOOK
2016/2017
District Governor Naga Sundararajah
Introduction
Congratulations on your election as the Treasurer of your Club.
The difficulty Lions Clubs often experience in finding a suitable club Treasurer is regrettable, as the position is one which provides the opportunity to make a major contribution to the affairs of the club. There are few activities which do not involve money, so the Lions Club Treasurer becomes associated with the whole spectrum of the club's activities. The position carries the weight of some responsibility and, given an understanding of the objective of the position, and the confidence to know that the records are comprehensive and sufficient for their club, the office is interesting and satisfying.
The purpose of this handbook is to provide you, the Club Treasurer, with information and guidance to assist you in your role over the coming Lions year.
A Lions Club Treasurer's first responsibility is as custodian of the club's funds. They must deal with them in accordance with the constitution and the wishes of the members. As such they are a trustee of the money which belongs to other persons, and they must be careful to keep proper records of where it comes from, and they must keep documentary support for all payments.
A Lions Club Treasurer's second responsibility is to report regularly on financial transactions and to provide a statement of the clubs assets and liabilities at particular dates.
The maintenance of records necessary to discharge these responsibilities can be carried out satisfactorily by anyone, provided they approach their duties methodically and are prepared to devote the necessary time to the job. The need to deal with money quickly and to keep records up to date is paramount. Unless transactions are recorded promptly, there is a tendency to forget details, and unless the records are maintained, their updating can become a major task.
This Handbook has been prepared as an aid for all Lions Club Treasurers in the District. Any Lions Club Treasurer who wants either advice or help as regards their position or their clubs finances or records, is more than welcome to contact your Cabinet Treasurer.
Lion Paul Tjioe
Cabinet Treasurer 2016/2017
P.O. Box 377
Mt Waverley
Vic. 3149
Tel:(W)(03) 9802 8768
Fax: (W)(03) 9802 8263
Mobile 0433 141 235
Email:
CLUB TREASURER’S HANDBOOK
TABLE OF CONTENTS
1.THE CLUB TREASURER AND THEIR DUTIES4
(i)Budgets 4
(ii)Accounting Records 5
(iii)Receipts 5
(iv)Payments 6
(v)Financial Statements 7
(vi)Bank Reconciliation 7
2.BANK ACCOUNTS.8
(i)Administration Account. 8
(ii) Activities Account. 8
(iii) Convention Account. 8
(iv)GST8
3.LEGAL USE OF PUBLIC MONEY9
4.STANDARD ACCOUNTING SYSTEM 9
FOR AUSTRALIAN LIONS CLUBS
5.BUDGET SYSTEM OF FINANCING9
6.SUGGESTED ADMINISTRATION ACCOUNT BUDGET10
7.RAISING ADMINISTRATIVE FUNDS IN EMERGENCIES11
8.PRACTICES TO AVOID11
9.ANNUAL AUDIT.11
10.CLUB DUES.12
11.DISTRICT AND MULTIPLE DISTRICT DUES12
(i)1st Semi-Annual Dues12
(ii)2nd Semi-Annual Dues: 12
(iii)Payment by Clubs: 12
(iv)Multiple District Directories 13
12.INTERNATIONAL DUES13
(i)Payments by Clubs
13.INTERNATIONAL PER CAPITA DUES ANALYSED14
(i)International Per Capita and Convention Fund Tax 14
(ii)Reinstated and Transfer Members 15
(iii)New Members 15
14INSURANCE15
15ESTIMATED EXTERNAL COST PER MEMBER 2016/201716
16HOW DIRECTORY IS CHARGED TO CLUB17
17PAYMENT OF LIONS CLUB INTERNATIONAL DUES DIRECT BY
CREDIT CARD17
18IMPORTANT DATES TO REMEMBER18
1. THE CLUB TREASURER AND THEIR DUTIES
The Treasurer is the financial officer of the Lions Club and his official duties are under the supervision of the Club President and the Board of Directors
The duties of the Treasurer include:
- Receiving all monies which are to be banked into accounts approved by the Board of Directors
- Issue cheques (never cash) in payment of Club obligations on the authority of
the Board of Directors.
- Cheques must bear the signature of the Club Treasurer and one other Club Official approved by the
Board.
- Prepare and submit financial reports for the Board and the Club Meetings on a regular basis (monthly).
- Serve on the Club Finance Committee
- Prepare an Administration Budget
- Maintain a ledger of money owing and received for each Club Member
- Ensure that the books of the Club are audited and that all necessary reports have been lodged with
District Cabinet or other parties as required.
- Hand over to your successor all books, documents, Club property and ensure bank account signatories have been changed at the bank.
- Work Closely with your successor to ensure a smooth change-over
This is only a brief outline of duties; however, it is by no means all the duties which should be performed by the Club Treasurer.
Organisation & Planning
makes the job easy
The Treasurer and Secretary complement one another in their official capacities and there must be close co-operation between these two elected officers.
The standard form of Club Constitution, Article Vll (5) sets out the basic duties of the Club Treasurer.
The Club Treasurer and their Duties
The responsibilities of the Club Treasurer are as follows:
(i)Budgets
(a)The Treasurer should prepare separate budgets for Administration, Convention and Activities, in conjunction with the Finance Committee.
(b)Budgets should be prepared for the full year and should be reviewed after six months have elapsed.
(c)The information on which the budgets are based is:
* The working papers of the budget for the year near completion.
* The income and expenditure statements for the year near completion/past years.
* Board policy determining when membership dues are payable, annually or semi-annually, and the amount.
(d)The formats of the budgets should follow those set out in STANDARD ACCOUNTING FOR CLUB TREASURERS
Administration - Schedule 5
Activities - Schedule 10
Convention - Schedule 15
(ii)Accounting Records
STANDARD ACCOUNTING FOR CLUB TREASURERS should be used by every Club as its standard accounting system and permanent records. A copy and refills can be obtained from the Australian Office of Lions Clubs International MD 201 (Newcastle).
It should be passed from Treasurer to Treasurer, year to year. It will become a part of the Club history.
Examples of the format of accounting records are given at the end of the Chapter under the heading of Club Treasurer in the Multiple District 201 Club Administration Manual.
(iii) Receipts
(a)The Club Treasurer shall receive all monies and deposit them in a bank or banks recommended by the Finance Committee and approved by the Board of Directors.
(b)Receipts should be issued for all cash/cheques received for:
Membership dues, etc.
Club supplies
Dinner meeting meals
Tail twisting fines
Dinner Meetings fund raisers
Christmas cake proceeds, etc.
Receipts should be issued from the receipt book for the appropriate account.
(c)All monies received from whatever source should be banked intact. Payments should not be made from receipts of cash/cheques for any purpose. There should be cash imprests for petty cash or change.
(d)The Treasurer should keep the Cash Book Receipt records written up to date at all times:
Administration - Schedule 1 of Standard Accounting.
Activities - Schedule 6 of Standard Accounting.
Convention - Schedule 11 of Standard Accounting.
The date should be entered, each receipt in a serial number order, and the Amount Received. The Amount Received should then be entered into the appropriate column or columns each of which has an account reference number (1 for Annual Dues, etc.).
The amount entered in the Bank column should equal the total of receipts which are being banked.
(iv)Payments
(a)The Club Treasurer shall pay out monies in payment of Club obligations only on authority given by the Board of Directors except as provided under 4(e) below.
(b)All payments other than petty cash, which should be limited to amounts not exceeding $10.00, should be drawn by cheque on the relevant bank accounts - Administration, Activities or Convention. For convenience of record tracking, payment by cheque should be the preferred method.
(c)Petty cash should be maintained on an imprest basis. The amount of each of the advances for petty cash should be authorised by the Finance Committee and the Board.
(d)All cheques and vouchers shall be signed by the Treasurer and countersigned by one other officer determined by the Board of Directors.
(e)All payments to be made by cheque must be authorised by the Chairman of the Finance Committee as well as by the Board.
In the instance of payments for District dues and Lions Clubs International dues, these should be made immediately following receipt of the accounts, and submitted to the next Board meeting for confirmation.
(f)The Treasurer should keep the Cash Book Payment records written up at all times:
Administration - Schedule 2 of Standard Accounting.
Activities - Schedule 7 of Standard Accounting.
Convention - Schedule 12 of Standard Accounting.
The date should be entered, each cheque in a serial number order, and the cheque total in the bank column.
The amount of the cheque should then be entered into the appropriate column or columns each of which has an account reference number (9 for International Dues, 13 for Club Supplies, etc.), all of which could have been included in the one payment.
(v)Financial Statements
(a)Each month, the Treasurer should prepare a cumulative Statement of Income and Expenditure for each of:
Administration
Activities
for submission to the Board meeting for approval.
(b)The Treasurer will obtain the information for each of the statements by reference to the relevant Schedules for Receipts and Payments.
(c)The budget figures for each item in the Income and Expenditure Statement should be shown as a comparison with actual to date.
(vi)Bank Reconciliation
(a)Each month, the Treasurer should obtain the statements for each of the bank accounts about the date when he/she and the Finance Committee will be preparing the statements of Income and Expenditure.
(b)All bankings should be checked against credits appearing on the bank statements.
Credits for bank interest, interest remitted from money on fixed deposit, or similar, should be entered in the Cash Book Receipts of the relevant Schedule.
(c)Government duties & bank charges debited direct to accounts will need to be entered on Cash Book payments of the relevant Schedule.
(d)Cheques which have been presented and appear on the bank statement by serial number and amount as debits should be cross-referenced to the Cash Book Payment Schedules, and a list of unpresented cheques prepared.
(e)Care should be taken to ensure that debits or credits have been posted to the right bank account. If there are bank errors, the Bank should be asked to correct.
(f)The bank reconciliations can now be completed as required by Schedules No. 4,9 and 14 of Standard Accounting.
(g)A copy of each of the bank reconciliations and the Bank Statement should accompany the Statements of Income and Expenditure and, if required by the Board, Balance Sheets.
These notes should be read in conjunction with other reference material such as the Club Treasurer's Manual from International and especially section C of the Administration & Constitutional Manual obtainable from Lions Newcastle Office.
2.BANK ACCOUNTS......
All Clubs should operate at least two bank accounts:-
(i) ADMINISTRATION ACCOUNT.
(ii) ACTIVITIES ACCOUNT.
(i)Administration Account
This account should be used to pay the following:-
*International Dues.
*Multiple District Dues.
*District Dues.
*Club Administration Costs.
Club administration costs can include postage, stationery, telephone, bannerettes, awards, badges, club supplies, cost of entertaining guests, and other expenses relating to the administration of the club.
The income of the administration account is normally derived from charging the members annual or semi-annual dues. Clubs may charge administrative costs incurred by projects or activities to the activities account where the costs relate specifically to a project or activity and where those costs can be actually quantified. Clubs cannot charge either on a time basis or a percentage basis to a project or activity. Money raised from the public by whatever means must go back to the public or community.
(ii)Activities Account
The income of this account comes from funds raised from the public, by whatever means, including donations. All income from projects or activities should go to this account. Interest earned from invested activity funds remains a part of the Activities account and cannot be used for administration.
This account should be used to pay the following:-
*Project or activity direct costs.
*Donations to:
Community funds or needs
Multiple District activities or projects
District activities or projects
International activities or projects
(iii)GST
Clubs should investigate whether to register to GST on an individual basis. They should seek professional taxation advice before making that decision. Application for an ABN should also be considered in the same way.
3.LEGAL USE OF PUBLIC MONEY
Question:
May funds raised from the public be used for administrative or other non-public purposes?
Opinion:
No. The Articles of Incorporation of the International Association of Lions Clubs state that the Association is organised, among other things, "to govern all such chartered Clubs so that they shall be non-political, non-sectarian, not for profit of the individual Club or its individual members".
Therefore, the Articles of Incorporation of the International Association of Lions Clubs expressly forbid that any part of the net earnings from activities shall accrue to the benefit of any individual Lion or Lions Club. Since Districts are created by the Association to facilitate its administration of individual Lions and Lions Clubs, this proscription, by implication, runs to District administrative as well.
The wisdom of this proscription is clear. To finance and fulfil their basic function of service, Lions Clubs ask the public to patronise fairs, circuses, raffles, shows and the like, and to purchase products infinite in variety. This public support is sought, and given, on the mutual understanding that the net funds raised thereby will go to finance some community need. Consequently, any diversion of such funds to other purposes constitutes a breach of faith with the contributing public. The proscription in the Article quoted exists to prevent any such funds to finance convention trips, politics or candidates, or administrative dues, deficits or expenses at the Club, District or International level, this being a breach of faith and an express violation of the basic document of the Association.
4.STANDARD ACCOUNTING SYSTEM FOR AUSTRALIAN LIONS CLUBS
All Clubs are strongly recommended to put into operation the Standard Accounting System prepared with the co-operation of various governmental, auditing and accounting authorities and which received the endorsement of Convention as the system to be followed in Multiple District 201.
Systems are available for purchase from the Australian Office of Lions Clubs International, Newcastle.
5.BUDGET SYSTEM OF FINANCING
The Budget System of financing is the practice of anticipating in advance as accurately as possible the income and expenses of the Club for a specific period and preparing a budget on that basis for the guidance of the Officers and Board of Directors in handling the financial affairs of the Club for the budget period. In the Lions Club there should be at least two separate budgets for each budget period: (1) an Administration budget, and (2) Activities budget. The budget period should be for the full year and reviewed each six months.
The Administration Budget has to do with the basic financing of the Club - the income and expenditures necessary to run the Club. The income for the Clubs administration is derived principally from Club dues.
The Activities Budget has to do with the financing of the activities which the Club carries on. The income should be derived from special fund-raising projects put on by the Club in the community. A well-managed Lions Club also takes care that sufficient funds are available for carrying to a successful conclusion whatever welfare activities it has in mind. Under no circumstances should the Club dues and other administrative income be used to defray the cost of activities.
6.SUGGESTED ADMINISTRATION ACCOUNT BUDGET
Lions Club members pay for the running of the Lions organisation - at Club, District, Multiple District & International levels.
The International Board of Directors has specifically ruled that no portion of funds raised from public fund-raising activities may be used to defray the administrative expenses of a Lions Club.
It is therefore essential that each Club adequately budgets for its own running costs and for its share of the running of the total Lions organisation. The Club Treasurer together with the Club's Finance Committee should prepare a budget for the Administration Account at the beginning of the Lions Year. A budget using the audited financial statements from the previous two years as a guide, and using a format along the following or similar lines is recommended.
ANTICIPATED EXPENSES
Dinner meeting cost (meals, room charge, etc.)$
Official guests & visiting speakers (....meals @ $....)$
Attendance of President, etc. at official functions, etc.$
Postage & telephone (President, Secretary plus ?)$
Printing and stationary (Club letterhead, etc.)$
Club Bulletin or News sheet (production costs, postage, etc.)$
Club supplies, presentations, awards, etc.$
Sundry expenses (death notices, flowers, etc.)$
District dues (.... members @ $.....*)$
Multiple District dues (.... members @ $.....*)$
Multiple District directories (.... members @ $.....*)$
Insurances - compulsory (.... members @ $.....*)$
($.... per Club *)$
- voluntary (Ladies Auxiliary, etc. )$
International dues (.... members @ $..... *)$
Contingencies (10% of above anticipated expenses)$ .
TOTAL ANTICIPATED EXPENSES$ .
ANTICIPATED INCOME
Club dues (.... members @ $ **)$
Tail twisting$
Dinner meeting raffles profit$
Club Administration fund raising from Club members, etc.$
Interest (Administration Account)$ .