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HANDBOOK FOR TREASURERS

2014 C &

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C&S Auditors Office, Level 6, Holme Building Ph: 9563 6140 or 9563 6104 | [email protected]

HANDBOOK FOR TREASURERS 2014

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C & CONTENTS

Part 1: GETTING STARTED ................................................................................................................................. 1 INTRODUCTION ......................................................................................................................................................... 2 STARTING A NEW CLUB ............................................................................................................................................. 2 HANDOVERS .............................................................................................................................................................. 3 SOCIETY CHEQUE SIGNATORIES ................................................................................................................................ 3 INTERNET ACCOUNTS ................................................................................................................................................ 4 DEVELOP AND MAINTAIN A SOCIETY PROCEDURE MANUAL ................................................................................... 4

Part 2: BASIC BOOKKEEPING ............................................................................................................................. 4 INCOME ..................................................................................................................................................................... 5 ISSUING INCOME RECEIPTS ....................................................................................................................................... 5 RAFFLE BOOKS AND TALLY SHEETS ........................................................................................................................... 6 RECORDING INCOME................................................................................................................................................. 7 AUDIT SUBMISSION FORM ........................................................................................................................................ 7 ONLINE SYSTEMS ....................................................................................................................................................... 8 RECORDING EXPENSES ............................................................................................................................................ 10 CAPITAL EXPENDITURE ............................................................................................................................................ 10 REIMBURSEMENT SYSTEMS .................................................................................................................................... 10 CASH FLOATS ........................................................................................................................................................... 11 ACCOUNTING FOR DOCUMENTATION CORRECTLY ................................................................................................ 12 BANK ACCOUNTS AND RECORDS ............................................................................................................................ 12 FINANCIAL STATEMENTS ......................................................................................................................................... 13 BANK RECONCILIATION ........................................................................................................................................... 14 DONATIONS ............................................................................................................................................................. 14

Part 3: FINANCIAL MANAGEMENT .................................................................................................................. 15 BUDGETS ................................................................................................................................................................. 15 JOINT EVENTS .......................................................................................................................................................... 15 SPONSORSHIP AGREEMENTS .................................................................................................................................. 16 C&S FUNDING .......................................................................................................................................................... 16

Before an event .................................................................................................................................................. 16 After the event ................................................................................................................................................... 16

UNIVERSITY OF SYDNEY FUNDING .......................................................................................................................... 16 CAPITAL EXPENDITURE AND MERCHANDISE .......................................................................................................... 17 BACKUP ................................................................................................................................................................... 17

Part 4: REVUES ............................................................................................................................................... 17 Part 5: TAXATION ........................................................................................................................................... 18

NON-PROFIT ORGANISATIONS ................................................................................................................................ 18 GOODS & SERVICES TAX (GST) ................................................................................................................................ 18

Part 6: AUDITING WHEN DO YOU HAVE TO SUBMIT YOUR CLUBS AUDIT? ......................................................................................... 19 WHAT DO I NEED TO DO BEFORE SUBMITTING THE FINANCIAL RECORDS? .......................................................... 19 AUDIT REPORTS ....................................................................................................................................................... 20 INACTIVITY............................................................................................................................................................... 21

Part 7: RESOURCES ......................................................................................................................................... 22 CLUBS AND SOCIETIES OFFICE CONTACTS .............................................................................................................. 22 C&S AUDITORS ........................................................................................................................................................ 22 APPENDICES ............................................................................................................................................................ 23 GLOSSARY OF TERMS .............................................................................................................................................. 36

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C & Part 1: GETTING STARTED

Welcome to the Club and Societies Program! One of the USU objectives is to ensure that financial support provided to clubs & societies is used to properly promote the social and cultural activities on campus. This Handbook is designed to assist Treasurers to operate a simple financial system in order to manage Society finances efficiently and effectively. Treasurers and Executive Members should ensure that they are familiar with the contents of this Handbook. All sections of this Handbook are also applicable to Revue Treasurers except for the USU funding process and the Cashbook template. Revue Treasurers should check with the Revue Coordinator located at the Programs Department, Level 1, Manning House regarding any additional information required. The Orion Online Portal and C&S Office are also good sources of information. For any organisation to operate effectively it is imperative that financial records are up-to-date and maintained regularly throughout the year, so that Treasurers can:

• Plan for and ensure there is adequate funding for events • Confirm whether any events have been financially viable.

Please take the time to read this Handbook and ensure that the club has a good financial system set up that benefits the Executive, the society members and the USU. At the end of the club’s financial year, Treasurers are required to submit the financial records of the Club to the USU for audit purposes. An Audit is an independent review of the financial operations of the club in order to report to the Members and the USU, whether the society has been operating within its constitution, the C&S Guidelines and general standards of accounting. If the Audit opinion is unsatisfactory, the re-registration of the society may be at risk.

As a club Treasurer, you do not need to be a financial expert to be able to do a great job!

Briefly, the Treasurers responsibilities are: • Keep accurate, complete and legible financial records • Budget for society events • Sign and deliver cheques • Deposit receipts • Submit financial records for audit at the end of the financial year.

All the information required is included in this Handbook. However Treasurers should not hesitate to contact the C&S Auditors for assistance on all financial matters. Treasurers should be aware that they are responsible for the society’s accounting records for the whole financial year. Upon accepting the role of Treasurer at the AGM two months after the financial year, this responsibility therefore effectively covers 14 months. It’s important that when a new treasurer starts, a proper Handover meeting is held.

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INTRODUCTION A Treasurer has a duty to act honestly and with due care and diligence at all times. By assuming the role of Treasurer, the members of the club have entrusted you with the responsibility of handling club funds solely for the benefit of club members and to ensure the club continues to function successfully. There are 13 Golden Rules to assist Treasurers and if you follow to these basic rules, your role as Treasurer will be simplified, as well as rewarding.

Treasurer’s Golden Rules

1 Funds used only to meet the society aims and objectives

2 Cashbook to reflect all financial transactions

3 Deposit all cash into the society bank account promptly upon receipt

4 Issue a receipt for all income/funds received.

5 Cash collection forms to be signed by two executives.

6 The Audit Submission form should match the total income from events.

7 Pay expenses using society cheques (NEVER in cash).

8 Do not issue or pre-sign blank cheques.

9 Ensure all deposits/cheque amounts match the amounts per Bank Statements. Do not aggregate individual amounts in the Cashbook.

10 Obtain a tax invoice for all expenses and payments, wherever possible. Credit card and EFT receipts are not acceptable documents because of lack of information.

11 Prepare Reimbursement forms for all payments which should be referenced to cheque numbers and relevant USU Funded events.

12 Classify all transactions in the Cashbook by event or activity. Not by venue, food, drink etc.

13 Prepare bank reconciliations regularly to determine current balance of funds and to avoid risk of bank account going into overdraft.

STARTING A NEW CLUB As the Treasurer of a new club, it’s good to familiarise yourself with this handbook, it will be a great point of reference during your time as a treasurer. The first task as Treasurer will be to open a bank account. In order to open the bank account, a letter of registration from the C&S Office is required; this will need to be lodged with the bank. Organise three Executives, usually the President, Treasurer and Secretary to be appointed bank account signatories. All three Executives will need to go to the bank with ‘100 points’ of ID and complete the necessary paperwork. Only a cheque account can be opened and no key cards or credit cards should be issued or accepted. As per the C&S Regulations, only use the National Australia Bank or the Commonwealth Bank of Australia Branch

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C & located on campus (Wentworth Building). Confirm with bank to ensure that there are no ongoing monthly

bank fees on the account and if there are any problems; contact the C&S Office. Once the bank account is active, you may commence recording the financial activities of your club as outlined in this Handbook, new clubs will also receive $250 of start up funding from the USU.

HANDOVERS It’s important to get the following from the out-going Treasurer, from the beginning of the financial period: • Cheque book(s) • Deposit book(s) • Receipt book(s) • All documents supporting the income and expenses • Bank statements • Cashbook – Year to date (Excel file) • Any other financial records from previous year • Procedure Manual.

Handover meeting with the out-going Treasurer Make sure that a meeting is held with the previous Treasurer as soon as possible upon your appointment as Treasurer since the new Treasurer is responsible for the complete accounting period. The meeting should include the following activities: • The previous Treasurer should explain the financial position of the club and how it operates • Discuss any problems encountered by the previous Treasurer • View and discuss the types of Cashbook transactions and relevant classifications • Ensure that you have all the necessary invoices and receipt books to support the Cashbook entries for the complete financial period • Discuss the previous Audit Results and Auditors recommendations and any actions required to be taken

The handover meetings are really important and it’s a good idea to get the contact details of the out-going treasurer in case you need information in the future. If you cannot contact the previous treasurer, you can contact the C&S office or auditors for more assistance.

SOCIETY CHEQUE SIGNATORIES Gaining control of the society bank account can take some time to complete. How to change the club bank account signatories:

• Decide on the new cheque signatories; must be the Treasurer, and 2 other Executives • Obtain an authorisation letter from the C&S Office reflecting the names of the new signatories. • Arrange a time for the new cheque signatories to visit the bank together, with each person bringing

‘100 points ID’. (Note below). • Collect a ‘Change of signature’ form from the bank to read and understand the responsibilities of

being a cheque signatory. • Change the mailing address for the bank statement. Note: • 100 Points ID includes photo ID, passport, bank cards, and proof of address.

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C & INTERNET ACCOUNTS

A few clubs & societies may have opened linked Internet accounts to obtain a higher rate of interest on their unused funds. These bank accounts are acceptable only if they are linked to the society’s main cheque account. No payment facility should be available from these online accounts as all payments should only be made using the club’s main cheque account. If the club has an online account attached to their main account, a separate cashbook should be used to record the movements of that account.

DEVELOP AND MAINTAIN A SOCIETY PROCEDURE MANUAL Treasurer’s responsibilities include the development and maintenance of the Procedure Manual covering all the financial activities of the society.

The benefits of maintaining and adhering to a Procedure Manual include: • Consistency and accuracy of accounting records • A smooth handover between Treasurers and Executives • An efficiently managed club • A favourable audit opinion

The Procedure Manual should cover the day to day workings of the society including;

• How to receipt membership and merchandise at O-week • What resources are needed for particular events • Where to order T-shirts • What lessons can be learnt from previous Treasurers and tips etc.

Part 2: BASIC BOOKKEEPING

To set up good Financial Records you simply need to do the following:

• Keep a copy of all Post Event forms and Other Funding forms • Keep copy of all receipts given on income items • Update Cashbook as you go • Regularly check Society’s bank account balance to make sure expenditure is viable

The Cashbook template should be used because it is in the required format, this can be found on the Orion online portal. It is important to record ALL events organised by the club whether or not USU funding applies. The GROSS income and expenditure of all activities should be recorded to provide accurate results.

All income All Expenditure

All Post Event forms

Bank statements

Accurate Records

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The society accounts should be prepared on the cash basis of accounting. This means that:

• Funds received must be recorded in the cashbook on the date of receipt, not on the date of banking; and

• Payments are recorded on the date paid, not on the date cheques are cleared by the bank

You are not required to prepare a Statement of Financial Position (Balance Sheet) listing the assets and liabilities of the club, as per standard business practice within Australia, but there is a tab in the Cashbook template that lists all assets for the club. The capital tab in the cashbook is required to be completed listing all the assets purchased, donated or constructed during the financial year. If the society has significant liabilities e.g. debts not paid, rental or lease obligations, you must contact the C&S Auditors as soon as possible.

INCOME

Income represents all money received from any source, including payment for goods or services provided by the society. This includes but not limited to; membership fees, collections at BBQ’s, Balls, Dinners and other events.

Income may be received in the form of cash, cheque or by direct credit into the bank account. If received by direct credit, the reference should include details of the person and the event. All money collected must be banked DIRECTLY into the club bank account promptly upon receipt. All fees and income received should be recorded in the Income Journal, including instances where the money collected is immediately paid to the event venue.

ISSUING INCOME RECEIPTS All money collected, including membership fees, must be recorded in receipt book, with one receipt given to the individual, and one copy for the Treasurer to keep for accounts.

It is recommended that the following is recorded on the front of the Receipt Book: • Reference (e.g. A, B, C) • Name of event (e.g. Boat Cruise) • Fee structure (e.g. Members $10, Non-members $15)

If possible use a separate receipt book for each event. It is important to ensure that ALL receipts match the funds deposited.

Collect cash

Issue receipt

Record total of

daily receipts in

Income Journal

Bank the cash

Deposit reflected on Bank

Statement

USU Post Event Form

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An example of a receipt:

Cash receipt (original)

No. 39 Received(A,B,C): _______

The sum of (dollars & cents): ______ Being for (Event): ______ $:_________ Signature:

RAFFLE BOOKS AND TALLY SHEETS

If $5 or less is collected from an individual e.g. for a BBQ/raffle, a raffle ticket book or tally sheet to support the receipt is acceptable. Each raffle book or tally sheet should be clearly marked with the date and name of the event, as well as the cost of the ticket. It is also a good idea to use a different colour of raffle ticket for each price of ticket (e.g. Members $1 – red book; Non-member $5 – blue book.) If a tally sheet is used, it should be filed to support the event income collected. If issuing tickets for an event, the ticket stubs should reflect the entry price. The ticket stubs provide evidence of the number of tickets sold and should be retained, together with any unsold tickets. A Summary form should be completed detailing the overall number of tickets issued alongside each pricing category or event. This summary should provide a complete analysis of income and should match the amount recorded in the Income Journal / Deposit slip. The Summary form should also form part of the audit submission documentation. If income is received from any other source, such as sponsorship, an accompanying letter or remittance advice should be issued by the sponsor. This document should be retained as evidence of income and recorded in the Income Journal. No receipts need be issued to sponsors, unless they specifically request one.

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C & RECORDING INCOME

It’s important to use the Cashbook to record the income earned. This template can be downloaded from the Forms & Guidelines section of the Orion Online Portal. The first step is to edit the column headings in the Cashbook to represent the activities and events of your club. Some common examples have been entered in the Cashbook template to assist Treasurers.

Change headings to reflect the

club’s activities and events

DATE DETAILS REFERENCE TOTAL DEPOSIT

Membership USU Funding

BBQ

5/03/2014

6/03/2014

O week collections

USU O week funding

ABC email CFS XXXX

$230.00

$300.00

$160.00

$300.00

$70.00

(Date the money was received)

(The event/s relating to the monies received)

(Receipt #, Ticket #, Ticket book#, Remittance advice)

(The total bank deposit for the day)

(Allocation of deposit across relevant events/ columns)

All income must be recorded in this manner for every event held by the club even if you breakeven or the club didn’t receive funding.

Don’t use headings which are obscure or don’t provide adequate clarification of the type of income, make sure you are clear.

AUDIT SUBMISSION FORM

Each society is required to summarise and record both the number and cost per attendee of Access members; Access Non-club members and Non-Access card holders attending each event or fundraising activity held. The Audit Submission Form is required to be completed for ALL events held during the year, even if income is not collected for the event. These summaries of attendees and income received per attendee should match and support the total funds received and deposited as recorded in the Income Journal. This information is required to accurately calculate any potential income tax obligation relating to the Non-member participation in the event.

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C & ONLINE SYSTEMS

The use of external online systems is utilised by a small number of clubs for some large events. If a club is considering the use of an external online system or a third party to sell event tickets, the following should be considered. • Is an Online System the best income collection process? • How would problems be detected and addressed e.g.

o Potential attendees could not buy tickets as required through the website? o Attendees being charged the incorrect amount o How are refunds processed?

• How often are the funds deposited into the club’s bank account?’ • The commission charges and the responsibility for paying these costs e.g. the society or attendee? • The business reputation of the online system third party- is it transparent, accountable and responsible in

its dealings? • The type and quality of the Audit Trail. Does it meet the requirements of good accounting practice and

this Handbook for Treasurers? Please contact the C&S Auditors to discuss before taking any action. PayPal PayPal can be used to receipt income for events, if your club would like to use PayPal, a account should be opened in the name of the club. If a club is using PayPal to receipt funds, the following reports are required to support the Income Journal entries; • Detailed Transaction Report reflecting individual names, related fees and amounts • A summary Report reflecting the total income ultimately transferred to the society bank account. Do not use PayPal to process payments.

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C & EXPENDITURE

Any money the club spends on goods and services is referred to as expenditure.

The following are examples of expenditure. • A venue hired on behalf of the club and paid by a club cheque; • An Executive member personally pays the expense on behalf of the club and the executive member is subsequently reimbursed by the club. • The club orders T-Shirts and pays the supplier by a club cheque.

Drawing Cheques Payments for items must be made by using the society cheque book. Treasurers should never:

• Pre-sign blank cheques for future use • Hand-over blank cheques to anyone. All cheques require 2 authorised signatures to be valid.

Collecting Tax Invoices Treasurers are required to obtain a valid receipt or tax invoice to support all payments.

If a club member, who has already paid for the item, is being reimbursed, they are also required to provide a valid tax invoice. Please note that credit card receipts, EFTPOS dockets, receipts which cannot be traced to a supplier and receipts without dollar amounts are not sufficient to support payments processed. This lack of adequate supporting documentation may result in an unsatisfactory audit opinion, and potential tax liabilities.

The receipts are necessary for both C&S funding applications and for your Audit. When submitting any event forms to the C&S office, attach photocopies of any receipts to support your form and keep the original receipts for your audit.

Incur expense Collect invoice

Prepare reimbursement form and sign

cheque

Record in Expenditure

Journal File Invoice Check Bank

statement

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C & RECORDING EXPENSES

Just like recording income, all expenses should be recorded in the cashbook found on the Orion Online Portal. Just like recording income, the first step is to edit the column headings in the Cashbook to represent the activities and events of your club. Some common examples have been entered in the Cashbook template to assist you.

Example of expense entry

Change headings to reflect the

club’s activities and events

DATE DETAIL CHEQUE REFERENCE TOTAL T Shirts O

week BBQ

1/1/2014 O week – T

Shirts 1458

Only use if considered necessary 260.00 180.00 20.00 60.00

(date cheque is written)

(What was the purchase

for?) (write a reference

on the invoice)

(total cheque value)

Invoice # USU CFS # Total Expenditure 260.00 180.00 20.00 60.00

Generally allocate expenses to events or common activities e.g. AGM, O week, BBQ’s etc. Enter the date and details of each cheque and allocate the expenditure under the appropriate heading. The amount of the cheque will match the amount on the bank statement upon being presented. The total expenses for C&S funded events should match the amount recorded on the Post Event Form. If a cheque is cancelled, it should still be recorded in the Cashbook as a nil amount. All cancelled cheques should be kept and crossed as cancelled.

CAPITAL EXPENDITURE

Capital items are used for more than one year and examples include; banners, laptops and laminators. Capital items do not include T-Shirts or other merchandise. Each capital expenditure entry should agree to the expenditure information recorded in the Expenditure journal.

REIMBURSEMENT SYSTEMS

If the club cannot pay for any expenses because cheques may not be accepted by a supplier or the signatories are unavailable, a member may personally pay the expense, and subsequently be reimbursed by the club.

• A reimbursement/cheque requisition form should be completed • Payment details should be recorded in the expenditure journal

The Club member being reimbursed should retain their tax invoices or receipts relating to the original purchase in case of a subsequent enquiry.

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Please note that credit card receipts and EFTPOS receipts are not acceptable forms as evidence of payment. Should a credit card be used to pay club expenses, members should ensure that a tax invoice is also obtained. Treasurers should ensure that they advise club members accordingly before they make the relevant purchases.

NO INVOICE = NO PAYMENT

CASH FLOATS

Small amounts of cash on hand required to provide change to members attending club events is referred to as a float. The amount should be recorded in the Expenditure journal in a column headed Float. Cash should not be held over from one event in order to provide a float at another event. Below is a summary of the Income and Expenditure journal entries which indicates how the amounts of the floats contra / balance off against each other. Expenditure Journal

Cheque # Total $ O-Week T shirts Float 26/02/2014 T shirts 52 420.00 420.00

27/02/2014 O-Week Float 53 50.00 50.00

Income Journal

Ref Total $ Membership T shirts Float 5/03/2014 O-Week float

deposit 50.00 50.00

10/03/2014 Membership Rec bk 1 130.00 130.00 11/03/2014 T shirts Rec bk 2 55.00 55.00

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C & ACCOUNTING FOR DOCUMENTATION CORRECTLY

There are a number of ways to maintain accounting records securely and responsibly. The following procedure is recommended: Income

• Prepare a summary or analysis of receipt numbers issued to support the total income. • Ensure that the total income recorded matches the income reflected on the Post Event form

Expenses • File the Reimbursement/Cheque Requisition Forms reflecting an analysis of the expenses in cheque

number sequence: o If expense relates to an C&S Funded Event, the amounts should be attached or referenced on the

relevant Post Event Funding form; and o If expense does not relate to a USU Funded Event, the supporting documents should be attached

to the Reimbursement form. • File the USU Post Event Funding Forms with supporting income and expenses documents attached.

BANK ACCOUNTS AND RECORDS Each society must have a bank account. Clubs that have demonstrated a history of good financial management and are of a suitable size to warrant an internet payment facility may be granted permission by the C&S Office. The assessment will be based on the audit results of the previous three years. One bank account should suffice for smaller clubs or societies. Larger clubs which have more than one account should complete and submit for audit, separate bank records and cashbooks for each bank account. There are three main types of bank records: Bank Statements

• The bank statement is the most important external record and an integral part of the audit. • File all the bank statements in statement number sequence. If they are misplaced, a transaction

listing from the bank is adequate. Cheque Books

• It is compulsory that all bank accounts have at least 2 cheque signatories, one of which must be the Treasurer. It is recommended that 3 members are registered as authorised cheque signatories, in case one signatory is unavailable. Ensure that the cheque counterfoil is properly completed with the date, amount, payment details, payee which match the Cheque Reimbursement form.

Deposit Books • It is recommended that a deposit book is obtained and used when depositing money. If a number of

cheques or cash from various events or sources are deposited together, write on the back of the deposit slip the amount of each cheque deposited and the money received from each separate event.

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C & FINANCIAL STATEMENTS

At the end of the Club’s financial year the treasurer is responsible for the following: • An Income & Expenditure Statement for the financial year • End of Year Bank Reconciliation (it’s recommend that this is also completed monthly)

These statements are a summary of the cashbook and should form the basis of the Treasurers report to the members of the club at the AGM. The Cashbook Excel spreadsheet has a tab which automatically creates these statements, but Treasurers should check that the total income and expenditure is correct. Income and Expenditure Statement

This is summary of all the income received and expenditure incurred for the year. This should reflect the totals for each category already recorded in detail in the Income or Expenditure journals. An example of an income and expenditure statement is on the next page.

INCOME AND EXPENDITURE STATEMENT FOR XXXX CLUB

FOR THE PERIOD 01/01/2014 TO 31/12/2014

INCOME $ Membership 150 00

T-Shirt Sale 150 00

BBQ 115 00

USU Funding 500 00

Annual Ball Tickets 2500 00

TOTAL INCOME 3,415 00

EXPENDITURE $ BBQ expenses 86 00

Administration 4 50

Annual Ball 2,815 30

T shirt printing 60 00

TOTAL EXPENDITURE 2,965 80

NET CASH MOVEMENT 449 20

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C & BANK RECONCILIATION

The Bank Reconciliation matches the transactions on the accounting records against the bank results and highlights any discrepancies. Below is an example of a standard two-part Bank Reconciliation.

The first part ensures that the figures are consistent with the cashbook and determines the cashbook balance of funds at the end of the year. The second part reconciles the cashbook / balance of funds to the balance per the bank.

Note $ Opening Cash Book balance 1 2000.00 Add: Income 2 3415.00 Less: Expenditure 3 (2965.80) Cashbook/ Funds balance at Year end 7 2449.20

Balance per bank Statement at year end 4 35.00 Less: Unpresented cheques 5 (86.00) Add: Outstanding deposits 6 2500.00 Cashbook/ Funds Balance at Year end 7 2449.20

NOTE: 1. From the Closing Cashbook balance attached to your last audit report 2. Total from your Cashbook/income statement 3. Total from you Cashbook/expenditure statement 4. From your bank statement at the end of the year 5. This represents society cheques per Cashbook but are not yet on the bank statement 6. This represents deposits banked per Cashbook but not yet reflected on the bank statement e. 7. These totals should always agree It is important to ensure that all bank charges, fees, interest, and interest income shown on the bank statement is recorded in the cashbook, to ensure that the bank reconciliation will balance. In the instance that there is a discrepancy, it is likely to be some missing income or expenditure. To find an error, ensure that you have added all the entries from your bank statement into the cashbook. If all the items are added from your bank statement, discrepancies cannot arise.

DONATIONS

Clubs and societies are governed by their constitution but certain clubs may be affiliated or associated with charities. These clubs may hold events to raise funds with the intention of remitting the funds to the relevant external charity. The accounting of these funds however is no different. All money or income collected should be banked into the Club bank account and supported by appropriate cash collection systems and documentation. Similarly, the funds paid to the external charity should be supported by appropriate documentation, this could be in the form of a formal letter or receipt from the external charity with the amount and purpose clearly documented. The formal letter or receipt will also support the income tax deductibility of the amount paid.

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C & Whilst the amount paid by the Club is at the discretion of the club executive and its members, it should be

paid out of the net profits of an event (the income generated by an event – the cost of the event). Refer to ‘Handbook for Charitable Giving 2014’ for more information.

Part 3: FINANCIAL MANAGEMENT

BUDGETS As a Treasurer, it is your responsibility to ensure that your Club doesn’t become insolvent. The bank account of the Club should never become overdrawn, and it’s important to budget to ensure that the Club can successfully hold events throughout the year for its members without experiencing financial problems.

The following steps can help you budget efficiently:

• Plan all the likely events that your Club will h for the year with your executive.

• For each event, determine what the likely expenses might be and what income might be generated.

• Consider any risks for each event, eg. The impact of low attendance, sponsors cancelling etc.

• What cash flow is required for each event- Will you have enough to cover the event?

It is acceptable to make a profit on the event, provided it is within the limits detailed in the C&S Regulations. As a Treasurer, it’s important to provide sufficient funds in the balance for the coming financial year. If you are concerned over the financial performance of the Club at any stage, please contact the C&S Auditors.

JOINT EVENTS

Joint events are a great way for Clubs to benefit from potentially larger crowds, greater exposure, higher income and larger sized events that may not be possible when organising alone. When organising joint events, it’s important to make documenting them correctly a priority. The clubs involved should be clear on what expenses and income occurs relating to their club to avoid confusion and it should be clearly documented Some points to consider:

• Ensure all clubs involved sign a Pre-Event form. • For a successful event, planning is key, all clubs involved need to know what they are responsible

for. • Ensure the cashbook is filled in correctly to reflect your Club’s contribution to the event.

It’s a good idea to talk to the C&S office before organising a joint event if you are unsure about anything.

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C & SPONSORSHIP AGREEMENTS

A sponsorship agreement can be a beneficial way for a Club to gain more support and sometimes more financial support. A formal or informal arrangement with a sponsor can be arranged and often there will be expectations that both the sponsor and the sponsee will be required to fulfil. Treasurers are required to include a detailed agreement, including the allocations made to your Club by the sponsor as a part of your audit. Contact the C&S auditors, if you have any questions regarding sponsorship and how to correctly record any agreements.

C&S FUNDING

To encourage event attendance of Access card holders, the USU has developed a system whereby the club is able to provide a discount on entry fees to Access members. The discount may then be reimbursed by the USU (within certain restrictions). This means that the club can make its events more appealing to Access card holders without having to bear a financial burden. C&S Funding may only be claimed between 1 February and 30 November of any calendar year. It’s important to ensure that the income and expenditure figures in your journals (in the cashbook) reflect the figures that are included on all post event forms submitted. Before an event

• Complete a pre-event form (available on the Orion portal) • Submit the form a least two (2) business days prior to the event • Keep receipts/invoices for all expenditure

After the event

• Complete a post-event funding form (available at the C&S office or on the Orion portal) • Copy all receipts/invoices and include these with your post-event form (keep the originals for your

audit) • Submit your post-event form within ten (10) business days of the event. • C&S funding reimbursements will be available usually after 1 week, directly deposited into your

club’s account

Other types of funding and more details regarding funding can be found in the C&S Handbook.

UNIVERSITY OF SYDNEY FUNDING

The University of Sydney may fund a club’s activities through the provision of a Faculty grant. If a grant is provided, you still need receipts and documentation to support this transaction in your audit. You can request these from the University. All funding received from the University of Sydney should be recorded on Post-Event forms as income. Clubs should not claim funding for the same event, from both the USU and University of Sydney.

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C & CAPITAL EXPENDITURE AND MERCHANDISE

Clubs may receive up to $500 in capital expenditure funding per year. Faculty, affiliated sites and college societies are eligible for $2000 over a two year period. Capital expenditure will only be funded if the club can demonstrate that the item(s) will be stored on campus and will benefit all of the club’s members. You are required to enter all capital items into the cashbook, including those built or donated. Similarly, the out-going treasurer should hand over any merchandise such as T-shirts which represent unrealised income to the Club. Ideally, at year end the Treasurer should perform a stock take of all merchandise; which should be submitted as part of the audit.

BACKUP

It’s important to backup the Cashbook regularly (it’s a great idea to save it in two different places), and all hard copy historical documentation should be held in a secure location where it will not be subject to damage or loss.

Part 4: REVUES

The content in this handbook is applicable for all Revue treasurers. The requirement of obtaining and retaining appropriate supporting documentation is similar to that of other clubs and all expenditure items need to be supported by applicable invoices and receipts. Income collection systems need to be in place for events held. All income from ticket sales, fundraising events, sponsorship, USU and University of Sydney financial grants and reimbursements should be supported in the cashbook. The Revue Treasurer should consider the following: • The Season Revue Manual which is available from the USU Program Events Coordinator • Establish a Budget for the Revue • If online ticketing systems are used to sell Revue tickets, an audit trail should support the individual ticket

sales. • The completion of a Population Summary for Revue Tickets sold and unsold. This is in addition to

receipting the sale of individual tickets. • Additional Revue Treasurer resources are available on the Orion Online Portal

Specific training sessions for Revue Treasurers are held in Semester one (1). Each Revue Treasurer is required to attend one of these specific Revue Training sessions in order to obtain C&S Funding.

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C & Part 5: TAXATION

NON-PROFIT ORGANISATIONS Any liability for income tax is the responsibility of the society. Some clubs are exempt from income tax obligations because of their aims and activities as defined in the club’s constitution, these clubs include;

• Cultural nature (art, drama, music) • Sport and Games nature (chess, bridge)

Generally all other clubs will be classed as Non Exempt. This is based on the principle of ‘mutuality’ as described by the ATO. Money or income received from members and spent on member activities is not subject to income tax. Club treasurers are required to sign the Log of Tax Status Reviews (Appendix J) regarding the club’s income tax status (exempt or not exempt) as recommended by the ATO. If you are unsure if the society is exempt from income tax, please contact the C&S auditors. If the club is not exempt, Treasurers need to take special note of any interest earned and any non-club member related Income. This is because the club may be subject to income tax on non-club member income offset by related expenditure and interest income. Non-society member income refers to funds received from people or organisations who are not members of the club but pay for entry to an event etc. In these cases, attendance records need to be accurate, including the number of attendees (Member and non-member) and the cost per person. As society events are mainly held for the benefit of members and are often held with no or minimal profit there will only be a few clubs subject to income tax payable obligations.

Although C&S Funding received for events held or fundraising activities will be included in the club’s income calculations, you should be aware that expenses relating to these events can be offset against this funding.

Club financial documents and taxation records should be retained for at least 6 years as per ATO legislation and Taxation Rulings.

GOODS & SERVICES TAX (GST)

The C&S Auditors recommend that clubs do not register for GST. This recommendation is made on the basis that the increased compliance obligation and costs generally outweigh any perceived benefits of GST credits. Clubs are non-profit entities and as such do not need to register for GST unless the turnover is in excess of $150,000 per annum.

If the club is already registered for GST, please make an appointment with C&S Auditors to ensure that GST payments are correctly accounted for and submitted on a timely basis to the ATO.

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C & Part 6: AUDITING

As a condition of continuing registration, the USU and the University require all clubs & societies to have their accounts audited annually. This is considered necessary to ensure that the grants provided to the club have been properly used to promote social and cultural activity on campus and to provide assurances to the members and Executive that their club has been operating on a financially sound basis. The USU has a team of qualified auditors to perform this service free of charge. An audit is an independent examination of the financial records of the club, to form an opinion on whether they present a ‘true and fair’ result of the operations of the club during the financial period. It is therefore imperative that the financial records contain information from all events held during the year and that the financial transactions are properly supported by appropriate evidence such as tax invoices and income receipts.

WHEN DO YOU HAVE TO SUBMIT YOUR CLUBS AUDIT? Your club has the same financial year end every year and this is two months before the club has its AGM. The rationale for determining the date the AGM is: • Time permitting, the financial records may be submitted, audited and returned prior to the AGM; • Treasurers may report on the audited Financial Reports If the financial records have not yet been audited at the time of the AGM, Treasurers are required to present the unaudited Income and Expenditure Statement and Bank Reconciliation to the members present at the AGM. Due to high numbers of clubs with the financial year end in June-August, new and existing clubs will be unable to change their financial year end to this time period.

WHAT DO I NEED TO DO BEFORE SUBMITTING THE FINANCIAL RECORDS? Treasurers will generally receive a reminder email C&S Office at the end of the financial year. Should there be a reason why this submission deadline cannot be met, please contact the C&S Auditors as soon as possible. On the last day of the financial year, Treasurers need to:

• Close off the Cashbook by totalling the Income and Expenditure journals; • Prepare the Income & Expenditure Statement; • Ensure that results of each event held during the year is reflected in the Cashbook; • Ensure that the bank statements represent the complete financial period. Order any missing

statements from the bank and / or obtain a bank transaction listing; • Prepare the Bank Reconciliation; • Ensure that all the invoices and receipt books are referenced and filed in the recommended manner. • Complete the Audit Submission Form • Ensure completeness by complying with the Audit Checklist requirements; • Sign the Executive Declaration and Log of Status Reviews (Appendix J) • Upload a copy of the final Cashbook on the Orion Online Portal or email it directly to the C&S

Auditors [email protected].

• Submit all hard copy documentation to the C&S Auditors office in level 6 Holme Building.

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C & Should the required documentation not be submitted, or the documentation does not meet the required

standard as detailed in this handbook, the C&S Auditors will contact you requesting a meeting to discuss relevant matters regarding the submission. This may result in the Audit being ‘Qualified’ which places the registration of the club at risk.

Please note that the clubs financials are part of the clubs re-registration documentation and submitting the audit late may result in the club becoming unregistered with the USU C&S Program.

AUDIT REPORTS On completion of the audit, the C&S Auditors will prepare an Audit Report for the members and express an opinion on the Financial Reports.

The types of reports and opinions that the C&S Auditors issue are unqualified, qualified, inability to form an opinion and no opinion.

• Unqualified (Satisfactory): o The required accounting standards have been met. o Income and expenditure adequately supported o As such the Club / Society will be re-registered for another year.

• Qualified (Improvement Required): o The Auditor is satisfied with the accounting standards except for certain items/ reasons.

These particular items / reasons will be detailed in the Audit Report. This opinion may have formed because of: Missing documentation supporting income and expenses, e.g. bank statements or tax

invoices Inadequate accounting systems and accountability for collection of income or

payment of expenditure Inadequate accounting of USU funded transactions Non compliance with critical areas of this handbook

The C&S Auditors also explain any recommendations on the Cover Sheet for the Executive to improve the financial system to prevent the same problems from recurring. You are expected to implement these recommendations and to discuss any concerns with the C&S Auditors.

Audit Opinions are important and are not issued lightly. If the C&S Auditors come across any issues with the clubs financial recorsds and envisage such a report, they may contact the submitting treasurer requesting further information and explanations. Depending on the exact nature for the Qualified (Improvement required) opinion being issued, conditional registration may be granted for 6 months, after which another audit will be performed. If this audit is again qualified, the Club’s registered and further C&S funding may be impacted.

• Inability to form an Opinion (Unsatisfactory) o In these cases, little, incomplete or no financial records have been submitted by the

Treasurer and no explanation of the state of the financial records has been offered. Therefore the C&S Auditors are unable to form an opinion on the financial records.

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C & Where there is evidence that C&S funding has been used for a purpose other than for which the funding was

approved, it will influence the C&S Auditors in any decision on qualification and continuing registration.

As such, funding for one society may not be granted or forwarded to another society. Society members are entitled to trust that funding is used for the benefit of only its members.

Treasurers have the important responsibility of ensuring the ongoing registration of the Club. This requires accurate and complete accounting of the club’s activities throughout the year. It also requires cooperation with the C&S Auditors by making all records available and providing all necessary information for a successful Audit.

Treasurers may need to remind members of the importance of maintaining the Club’s registration, including:

• The need to have appropriate documentation supporting all financial transactions;

• The responsibility to submit the secretarial documentation e.g. registration documents, AGM minutes, President’s Report, List of Members, constitutional changes etc. on a timely basis.

If Treasurers are concerned at any stage during the year that the society funds have been used inappropriately or are missing, please report it immediately to the C&S Office, Police and in cases involving cash, to the University Security.

• No Opinion. o Although the society has been active on Campus, there is no financial impact.

INACTIVITY As per the 2014 C&S Regulations, a club shall be deemed inactive after any continuous 6 month period during which that Club does not hold any events or engage in financial activity. After 6 months, the control over any remaining bank balances and club property is assumed by the USU and held in trust. The C&S Auditor, C&S Manager and USU Honorary Treasurer become signatories of the club’s account and the C&S Office will control such balances and properties held in trust. After a further six-month period, resulting in 12 month inactivity, all money will be deposited into a USU administered trust account; to be returned to the society should it become active again. After a total of eighteen months inactivity, all club funds will be transferred to the USU general account. Should you have any questions regarding the audit process, please contact the C&S Auditors.

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C & Part 7: RESOURCES

To obtain further information on the C&S Program, including full access to Handbooks and other resources, please log on to the Online Portal at www.usuonline.com/cnsonline/. Handbooks can also be collected from the C&S Office.

The USU website www.usu.edu.au/clubs-societies.aspx

CLUBS AND SOCIETIES OFFICE CONTACTS The C&S Office is open: Monday – Friday 9:00am – 5:00pm during semester weeks 1-13. Monday – Friday 10:00am – 4:00pm outside of semester. The C&S Office is located on the ground level of Manning House, Manning Road, University of Sydney. Call with all your questions, comments or help when needed on 9563 6118 or 9563 6160 or if you’d prefer you can send us an email at [email protected]

C&S AUDITORS The C&S Aditor Office is open: Monday – Friday 8:00am – 4:30pm. The C&S Auditors are located on level 6 of the Holme building, University of Sydney. Call with any questions on 9563 6140 or 9563 6104 or send them an email at [email protected].

http://www.usu.edu.au/clubs-societies.aspx

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2014 Treasurers Handbook

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C &

APPENDICES Appendix A

Club name:

Period: ____________ To ________

INCOME JOURNAL

Figures already entered below are examples of income and will be different for your club

Insert additional rows as necessary

Date Details Reference Total Deposit

Membership USU Funding

BBQ Ball Harbour Cruise

Bank Interest

Sponsorship

5/03/2014 O week collections Receipt A100 –A120

$230 $160 $70

6/03/2014 Ball Funding CFS xxx

$200 $200

TOTAL INCOME

$ - $ $ - $ - $ - $ - $ - $ -

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C &

Appendix B

Club name:

Period: ____________ To ________

EXPENDITURE JOURNAL

Figures already entered below are examples of expenditure and will be different for your club

Insert additional rows as necessary

Date Details Reference Total Deposit

T-Shirts O-Week BBQ Ball Harbour Cruise

Bank Interest

Sponsorship

5/03/2014 O week collections Receipt A100 –A120

$260 $180 $20 $60

6/03/2014 Ball Funding CFS xxx

$300 $300

TOTAL EXPENDITURE:

$ - $ $ - $ - $ - $ - $ - $ -

Appendix C

Club:

Period:

Summary of Income & Expenditure

Income $ XXX.XX

Total Income $ XXX.XX

Expenditure $XXX.XX

Total Expenditure $ XXX.XX

Increase/Decrease in Cash $ XXX.XX

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C & Appendix D

Bank Reconciliation CLUB / SOCIETY: PERIOD: Notes $ Opening cash book balance (from the last Audit Report) Add: Total Income (from cashbook App A) Less: Total Expenditure (from cashbook App B) Closing Cash book balance 1 Closing Bank Balance Less: Unpresented cheques list below Add: Uncleared deposits list below Closing Cash book balance 2 Note: 1 & 2 amounts should be equal

List of Unpresented Cheques:

Date Cheque Number Detail $ TOTAL

List of Uncleared Deposits:

Date of deposit Reference Detail $

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CLUBPERIOD to

CAPITAL ITEMS PURCHASED, DONATED TO CLUB or BUILT

In order to track the capital items or assets that the club has purchased over the year, you are required to enter the detail on this page.This information will be shared with the C&S Office and available to future Club Executives if required so they are aware of the assets existence.A copy of this page once completed should be filed with the Club finance documents.

What do I enter in here:Enter all detail of capital purchases / expenditures made during the year.Enter in any details of capital items donated to the Club.Enter in details of any component purchased in order to build an asset or capital item.Also identify if the item has been subject to Capex Funding by the USU.

Note For items purchased the amount spent should be included in the Expenditure Journal of the Cashbook.

Invoice on file

Date of Purchase.

[Donation or Build] Supplier Chq # Amount $

Description of Capital Item

Expected life of the capital Item

Where is this item located during the

year

Who has custody of the capital item.

Name and Phone number required. Y/N

Include USU Funding Number

Details. Amount Y/N

Details of the Purchase, Donation or Built item. [purchased items should match the Expenditure Journal]

Was this item subject to USU Capex Funding?

Appendix E

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C & Appendix F

Reimbursement / Cheque Requisition Form Cheque no. __________

Club Name: _______________________

Payee: ___________________________ USU Funding Reference (if applicable): ____________________ (Note the Post Event Form should be stapled to this form) Reimbursement for: Event Name Expense details

Amount

Receipts Attached

Checked/ Authorised

O O

O O

O O

O O

O O

O O

O O

O O

O O

GST (if any)

Total Amount

Cheque Authorised by: _____________________ & _____________________ Dated: _________________

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C & Appendix G Audit Checklist

Have you supplied all of the following information? Ref Documents No. of

items Please tick

Income and Expenditure Statement

2.15 • Cashbook

Bank Reconciliation & records 2.14 2.16

• All Bank Statements (If some are missing please reorder immediately from the bank)

• Cheque Books • Deposit Books or Deposit Slips • The bank reconciliation

Account Books 2.1 Cashbook (print hardcopy and email soft copy to [email protected]) or upload on Orion Online Portal.

Income Support 2.2 • Receipt books • Ticket stubs/butts • All Other Receipts raffle books, tally sheets, cash

collection forms etc • Summary of event/fundraising tickets sold, unsold,

complimentary. The entire ticket population should be accounted for.

• Online website and PayPal Detail and Summary Reports

Expenditure Support 2.7 • Cash register Dockets i.e. till tapes • Tax invoices • Letter from the Charity entity that supports any

Donation given. • Reimbursement forms

Audit Submission Form 2.5 Number Summary of Club and Non-Club member event attendance or fundraising purchases for not exempt from income tax clubs. All club events held in the year should be documented.

All other supporting documentation

3.3

3.2

• Signed Executive Declaration and Log of Status Reviews

• Sponsorship agreements. • Complete listing and copies of all invoices from the

year. • Joint event agreement documentation and

supporting profit / loss, cheque and income distribution spreadsheet.

If any items are missing, attach an explanatory note, or contact C&S Auditors. To ensure that all documentation is fully accounted for, please staple or bind all documents securely.

Appendix H Audit Submission Form Club / Society Name: List all the Bank Accounts:

LIST ALL EVENTS THAT THE CLUB HELD THIS YEAR (Include each event, whether USU funding was claimed or not, breakeven or free events)

Name of event Date Location

** Attendance Number Summary ** Cost per person Summary Total income

Per Income Journal

USU / Club /

Society #s

USU / Non Club /

Society #s

Non USU Person

#s

Total #s

USU /Club / Society

$

USU / Non Club /

Society $

Non USU Person

$

** Note: Faculty and Colleges show Faculty and Non-Faculty member; or College and Non-College member WHO SHOULD THE AUDITORS CONTACT (i.e. who was responsible for the preparation of the accounts?)

Name Position Telephone & Email

Date of submission: _________________________________________

Bank Account Number Account Type

Appendix I Example of Executive Declaration Executive Declaration We, the Executive of The University of Sydney [Name] Society accept responsibility for the Financial Report for the period ended dd/mm/201y. We declare that, at the date of this Report

• No Executive has bound any future Executive to any long term financial outlays, except to the extent noted in the Financial Report;

• To the best of our knowledge the activities of The University of Sydney [Name] Society have not given rise to any liabilities;

• All income and expenditure has been declared in full to the Auditor; and • All activities undertaken by The University of Sydney [Name] Society in the period have been included

in the Financial Report. Signed Treasurer / President On behalf of the Executive Date:

Appendix J Log of Tax Status Reviews We recommend you make an entry in the log below each time you conduct a review of the organisation’s income tax status.

Period reviewed Income tax status ■ Exempt ■ Not Exempt

Person conducting review

Position held Signature Date

Start date

End date

RECORD OF KEY INFORMATION Record the organisation’s key information in the table below.

Name of organisation

Australian business number (ABN)

Tax file number (TFN) [if held]

Public officer

Authorised contact person

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Income tax status review worksheet for Self assessing non-profit organisations

[Form NAT 74141-01.2014. Sourced from the ATO website] This worksheet helps non-profit organisations self assess their income tax status as either income tax exempt or taxable.

WHO SHOULD USE THIS WORKSHEET? Non-profit Club / Societies, and associations should use this worksheet. For example, community service organisations, professional and business associations, and cultural and social societies. This worksheet is not for any of the following: - charities - friendly societies. WHEN TO USE THIS WORKSHEET Use this worksheet if you want to review the organisation’s income tax status.

We recommend non-profit organisations review their status: - on an annual basis - when there is a major change in the organisation’s structure or operations.

WHAT YOU NEED - Your organisation’s constituent or governing documents – for example, the constitution, rules, memorandum and articles of association. - Information about your organisation’s activities, finances, plans, advertisements and history. - Access to information on our website at ato.gov.au – the quick codes (QC) provided in the worksheet will help you find the information you need using the search function.

HOW TO COMPLETE THE WORKSHEET - Download a copy of the worksheet to your computer and check that you can save information in the worksheet, or print it and complete a paper copy.

- Place X in all applicable boxes.

- After answering a question, go to the next question unless directed otherwise. - Use the ‘Notes’ boxes to record information about that question, including any follow-up action you need to take. If you cannot save a completed copy of this worksheet, print a copy before closing the worksheet.

WHEN YOU HAVE COMPLETED THE WORKSHEET - Submit it to your Board or Committee for their approval. - Keep the completed worksheet with your organisation’s other records – it shows why and how you worked out your organisation’s income tax status and helps future office bearers. Do not send the completed worksheet to us.

Section A: Organisation details

1 Full name of the organisation

2 Australian business number (ABN) (if applicable)

3 Period of review

4 Reason for review (please tick)

Change in activity Annual review Other: Provide Details

/ / / /

to

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C & Section B: Charity

5 Is your organisation a registered charity?

Yes Do not continue to complete this worksheet. Your organisation cannot self-assess its income tax status. You must be registered with the Australian Not-for-profits Commission (ACNC) and endorsed bt the Australian Taxation Office (ATO) to be income tax exempt.

For more information about ACNC registration adn ATo endorsement, refer to Endorsement to access charity tax concessions (QC 16239)

No

Notes:

Section C: Exempt entity 6 Does your organisation fall within one of the types of exempt entities listed in the ‘Type of income tax exempt entity’?

There are approximately 30 types of exempt entities. Entities that can self-assess their income tax status come from these broad groups: - Community service organisations - Cultural organisations - Educational organisations - Employment organisations - Health organisations - Resource development organisations - Scientific organisations - Sporting organisations For more information, refer to the “types of income tax exempt entities” in our Income Tax guide for non-profit organisations (QC 27150)

Yes

No Your organisation is not income tax exempt. You may have to lodge income tax returns and pay income tax.

For more information refer to our guide Mutuality and taxable income (QC 23099). Notes:

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C &

7 Does your organisation meet all the requirements for that type of exempt entity? Read the detailed explanation of the requirements for that exempt entity type to make sure that your organisation meets them. For more information, refer to the ‘Requirements for self-assessing income tax exempt entities’ in our Income tax guide for non-profit organisations (QC 27150). For many of the exempt entity types, your organisation must: - be non-profit - pass one of three tests - comply with all the substantive requirements in its governing rules - apply its income and assets solely for the purpose for which it is established. For more information, refer to the following sections in our Income tax guide for non-profit organisations (QC 27150): - Non-profit requirement - Explanation of the three tests - Governing rules condition - Income and assets condition.

Yes. You have self-assessed your organisation as income tax exempt. You do not need to lodge income tax returns, unless we specifically ask you to. Complete Section D: Approval at the end of the worksheet.

No No Your organisation is not income tax exempt. You may have to lodge income tax returns and pay

income tax. For more information refer to our guide Mutuality and taxable income (QC 23099).

Notes:

Section D: Approval

Name of person who completed the worksheet Position held Date Approval by Board / Committee

/ /

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C &

GLOSSARY OF TERMS Club / Society A Club / Society or Society is a separate entity bound by a documented valid Constitution.

The Constitution also defines the membership base of the Club / Society or Society within the context of the USU structure.

Executive Committee

Collection of key Club / Society or Society members who have been elected to key managerial positions such as President, Secretary and Treasurer. The Constitution defines the Executive Committee Positions.

Treasurer Responsible for all financial matters, including the budgeting and systems for collecting and spending money on behalf of the Club / Society and being a custodian for the money collected and spent on Club / Society activities. Provides a Treasurer’s Report which includes the Income & Expenditure Statement and Bank Reconciliation at the Annual General Meeting

Auditors Responsible for auditing the Club / Society Income & Expenditure Statements for accuracy of the information presented by agreeing back to source documentation. Auditors test transactions by selecting a sample and reviewing the use of systems in place. The results of the testing and assessment of the Club / Society activity is concluded and opinion expressed in the Audit Report.

Financial Year End (FYE) Date

The Financial Year End usually precedes an Annual General Meeting (AGM). Generally this date is 2 months before the AGM date.

AGM Date The Annual General Meeting date succeeds the FYE. Generally this date is 2 months after the FYE date.

Handover Meeting

Held between the Incoming Treasurer and Outgoing Treasurer in order to transfer all the financial information to the new Incoming Treasurer.

Events Refers to the activity of the Club / Society as defined by the Club / Society constitution e.g. BBQs, Balls, Cruise, social gatherings, T shirts sales, morning teas, competitions, book sales, meetings etc..

Joint Events / Ventures

Social or specific gathering events held between 2 or more Club / Societies.

Cashbook Prescribed Excel version available on ‘USU Online’ website. Used to record all Income and Expenditure with Excel linked formulas that facilitate the completion of the Income & Expenditure Statement.

The Cashbook must be classified by events and activities held during the year.

Income All money collected from Club / Society members and non-Club / Society members for social events, charity events, merchandise sales, inventory sales, donations, sponsorship etc

Expenditure All money spent on behalf of the Club / Society in order to facilitate the activity of the Club / Society. This may also include reimbursements to Club / Society members who have been authorised to purchase a service or good on behalf of the Club / Society. All expenditure is to

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C & be paid by cheque, NOT cash. .

Capital Expenditure Items or Assets

Purchased items that are not consumable items and will be used over more than one year by the Club / Society. Assets or capital items have a useable life beyond a year. E.g. banners, laptops, laminators, badge making machines etc

Audit Trail The flow of information from the source documents, to the Income and Expenditure journals, the Income & Expenditure Statement and the Bank Statements. Generally covers all documentary evidence supporting financial records.

Source Documentation

All documentation that generates/ creates an inward or outward flow of Club / Society monies e.g. till tapes, invoices, receipts, remittances advice, bank deposit slips, sponsorship agreements, cheque butts, bank statements etc

Referencing Written Letters or Numbers that tie two documents together forming the conduit or link between the Source Documentation and Cashbook.

Systems Processes and procedures in place to collect and spend Club / Society money or details required for USU Funding application purposes. These systems need to be in place at the time the event or activity occurs. The Systems used are demonstrated through the source documentation on file.

Online Systems Websites designed to sell event tickets using the Internet.

Audit Submission Form

The information is a summary of Club / Society Member and non-Club / Society Member attendance at all Club / Society and income raising events. It facilitates the completion of the Income Tax assessment, as non-members ratios are required for allocating income and expenditure on all events and activities

Executive Declaration Form

Signed by the Treasurer or Committee Executive member who has completed the Cashbook and audit documentation. Declares that all the information is present and accounted for and that there are no major accounting breaches or Treasurers Handbook and arising from the Club / Society accounts and financial dealings.

Orion Online The name of the USU Club / Societies& Online Portal application accessible by Club / Society and Society Executives.

ATO Australian Taxation Office www.ato.gov.au

USU Website Website of helpful Club / Society & Society information as well as USU information.

C&S Office Staffed by friendly and helpful people who will be able to assist Clubs/ Societies Executives and with participation in the C&S Program.

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C & Not Profit entity The definition of a Not Profit entity is taken from the Australian Taxation Office literature and

generally accepted business principles. A non-profit organisation is an organisation that is not operating for the profit or gain of its individual members, whether these gains would have been direct or indirect. This applies both while the organisation is operating and when it winds up. Any profit made by the organisation goes back into the operation of the organisation to carry out its purposes and is not distributed to any of its members. The following clause describes the impact on each Club / Society or Society: Non-profit clause The assets and income of the organisation shall be applied solely in furtherance of its above-mentioned objects and no portion shall be distributed directly or indirectly to the members of the organisation except as bona fide compensation for services rendered or expenses incurred on behalf of the organisation.