instructions for end-of-year financial reports for clubs ... · purpose • these end-of-year...

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Instructions for End-of-year Financial Reports for Clubs with a Private Bank Account

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Page 1: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Instructions for

End-of-year Financial Reports for

Clubs with a Private Bank Account

Page 2: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Purpose

• These end-of-year financial reports are to report transactions processed through the club’s or group’s private bank account and to determine the financial position at the end of the financial reporting period.

• Do not include any transactions processed through the county depository or any other bank account or any account balances for those accounts.

Page 3: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

What is Required?

For all active clubs/groups with a private bank account, the following reports are required:

1) Statement of Income and Expenses 2) Statement of Financial Position 3) Annual Group Property-Inventory Report 4) Peer Review of Group Financial Records: Cover 5) Peer Review of Group Financial Records: Report 6) Copy of bank statement for the period end

Page 4: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Download or Print Report Forms

The end-of-year financial reports are located on the Information for Clubs web page on uaex.edu at the following link: http://uaex.edu/about-extension/associate-director-finance-administration/club-information.aspx

Page 5: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Excel Forms vs. Printable Version (PDF)

There are two versions of the following forms on the Information for Clubs web page:

• Statement of Income and Expenses • Statement of Financial Position • Annual Group Property-Inventory Report

• You can use the Excel forms which include formulas to calculate many of the totals for you.

• Or if you prefer to print out the forms and write in the information and totals, you can use the PDF version.

Page 6: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Financial Reporting Periods

• Active 4-H clubs and groups are to report from October 1st through September 30th each year.

• Active Master Gardeners clubs are to report from January

1st through December 31st each year.

Page 7: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Due Dates and Where to Send • Clubs/groups are to complete, sign, and date the end-of-year

financial reports within a reasonable amount of time after the end of the financial reporting period and send them to the staff chair at the county Extension office for review.

• Reports are due within 90 days of the end of the financial reporting period from the staff chair to the Associate Director for Finance and Administration.

• 4-H – Reports are due at the LRSO by December 31st

• MG – Reports are due at the LRSO by March 31st

Page 8: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Statement of Income and Expenses

The Statement of Income and Expenses reports income received and expenses paid and determines the Net Increase or Net Loss for the financial reporting period.

• 4-H October 1st - September 30th

• Master Gardeners January 1st - December 31st

Page 9: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Sample: Statement of Income and Expenses

Page 10: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Instructions for Statement of Income and Expenses

Income: • Summarize income received during the financial reporting period by

source (type) and amount, such as proceeds from donations; local dues; fundraisers; raffles; fair booth sales; plant sales; fees collected to support social activities of group members; or interest income.

• List each source (type) and amount separately on the form.

• Enter the total of all income.

Do not include the beginning checking account balance on this form or add it to the income.

Page 11: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Expenses:

• Summarize expenses paid during the financial reporting period by source (type) and amount, such as expenses for fair booth rental; plant sales; expenses for social activities of group members; or bank service charges (for the private account).

• List each source (type) and amount separately on the form.

• Enter the total of all expenses.

If the club has purchased an inventory or equipment item during the financial reporting period for less than $500.00, include that purchase as an expense.

If the inventory or equipment item purchased costs $500.00 or more, DO NOT include that purchase as an expense. Report the item as an asset on the Statement of Financial Position (see instructions).

Page 12: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Net Increase or Net Loss:

• Subtract the Total Expenses from the Total Income to determine the Net Increase or Net Loss for the financial reporting period.

• Carry forward the Net Increase (as a positive number) or Net Loss (as a negative number) to the Statement of Financial Position as the Net Assets: Current Year’s Net Increase or Loss (as shown in next slide).

Page 13: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s
Page 14: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Statement of Financial Position

The Statement of Financial Position is a “snapshot” of the club’s/group’s financial position at a specific point in time, i.e., on the last day of the financial reporting period.

• 4-H September 30th

• Master Gardeners December 31st

Page 15: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Sample1: Statement of Financial Position (with no liabilities)

Page 16: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Instructions for Statement of Financial Position Clubs/Groups with a Private Bank Account

Assets:

• Cash and/or Checking Account:

• Enter the checking account balance (which has been reconciled) as of the last day of the financial reporting period;

• Plus any cash on hand on that date.

• List any other private bank accounts and the account balance:

• Savings Account • Certificates of Deposit (CD)

Page 17: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Assets (cont’d):

• Inventory/Equipment: • List any individual inventory or equipment items valued at $500.00

or more.

• Other: • List any other assets valued at $500.00 or more:

• Include buildings, vehicles, etc.

• Enter the Total Assets. If you use the Excel form, the total will be automatically calculated.

Do not include individual inventory or equipment items valued less than $500.00 as an asset.

Page 18: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Liabilities:

• Accounts Payable: • List any accounts payable to include any short-term debt which has not

been paid by the end of the financial reporting period.

Example:

The club purchased a trailer and paid a $100.00 deposit before the end of the financial reporting period. The club still owes $457.00 to be paid in the next fiscal year.

The trailer and the full purchase price of $557.00 is listed as an Asset and the $457.00 owed is listed as Liabilities: Accounts Payable (see Sample2 - next slide).

Page 19: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Sample2: Statement of Financial Position (with liabilities)

Page 20: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Liabilities (cont’d):

• Other:

• List any installment payments (such as a vehicle loan) or accrued expenses which have not been paid by the end of the financial reporting period.

• Enter the Total Liabilities. If you use the Excel form, the total will automatically calculate.

Do not include expenses paid during the financial reporting period or any outstanding checks written prior to the end of the reporting period as liabilities.

Page 21: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Outstanding Checks Any check written for an expense that did not clear the bank before the end of the financial reporting period, should be reported as follows:

• The expense should be included on the Statement of Income and Expenses.

• The bank statement should be reconciled by listing the outstanding check and deducting the amount of the check from the checking account balance on the bank statement as of the last day of the financial reporting period.

Note: There is usually a reconciliation form on the back of the bank statement for your use (be sure to include a copy of that page with the bank statement copy)

• Assets: Cash and/or Checking Account Balance on the Statement of Financial Position should include the reconciled checking account balance as of the last day of the financial reporting period plus any cash on hand on that date (see Sample3 – next slide).

Page 22: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Sample3: Outstanding Check

Page 23: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Net Assets:

Net Assets - Beginning:

• Include the beginning checking account balance (which has been reconciled) as of the first day of the financial reporting period;

• Plus any cash on hand on that date;

• Plus any assets valued at $500.00 or more that were purchased or acquired before the first day of the financial reporting period.

• 4-H – Reporting for fiscal year 2014, the first day of the financial reporting

period is October 1, 2013. • MG – Reporting for calendar year 2014, the first day of the financial reporting

period is January 1, 2014.

Page 24: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Net Assets (cont’d):

• Current Year’s Net Increase or Net Loss: • Enter the Net Increase (as a positive number) or Net Loss (as a negative number)

from the Statement of Income and Expenses.

• Net Assets – Ending: • Add the Net Increase or subtract the Net Loss from the Net Assets – Beginning to

determine the Net Assets – Ending; in other words, the Net Assets on the last day of the financial reporting period.

• Add the Total Liabilities to the Net Assets and enter the amount. This amount should always equal the Total Assets at the top of the form.

• Read the certification and be sure to include all reports as indicated.

• Sign and date the form.

Page 25: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Annual Group Property-Inventory Report The Annual Group Property-Inventory Report is to record all individual inventory or equipment items valued at $500.00 or more and ANY AND ALL firearms regardless of value (to include guns, rifles, pistols, BB guns, air rifles, and bows).

Active clubs or groups that do not have any equipment or inventory meeting the above criteria or any firearms are still required to submit a report.

Do not submit a blank report. Write or type “no inventory” or “zero inventory” under the Item Description, sign and date the form. The total inventory value of this report may be different from the inventory or equipment included as assets on the Statement of Financial Position since all firearms are required to be listed on the Annual Group Property-Inventory Report regardless of value.

Page 26: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Sample: Annual Group Property-Inventory Report

Page 27: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Instructions for Annual Group Property-Inventory Report

• List individual equipment or inventory items valued at $500.00 or more and ANY AND ALL firearms to include guns, rifles, pistols, BB guns, air rifles, and bows (regardless of value).

• Enter the Date Acquired. • Enter the Item Description and include the serial number, if applicable. • Enter the original Purchase or Acquired Price. Do not depreciate any

values. • Carry forward only the items valued at $500.00 or more to the Statement of

Financial Position as Assets: Inventory/Equipment.

• Enter the Storage Location. • Enter any Notes. • Enter the Total. If you use the Excel form, the Total will automatically

calculate.

Page 28: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Annual Group Property-Inventory Report (cont’d): • Read the certification and be sure to include all items as indicated.

• Enter the club/group name.

• The form is to be signed and dated by the club/group treasurer and president.

Page 29: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Peer Review of Group Financial Records

Guidelines for the Peer Review Committee:

• The Peer Review Committee should be composed of at least two members.

• The purpose is to review the accounting records and financial statements prepared by the treasurer for accuracy and reasonableness.

• Committee members should not include the treasurer, anyone related to the treasurer or anyone who signs checks, approves expenditures or is involved in any way in the financial affairs of the club/group.

NOTE: Refer to the Financial Guidelines for Affiliated Groups for the annual procedures for the peer review committee.

Page 30: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Peer Review Cover Sheet

Page 31: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Instructions for Peer Review Cover Sheet

• Check either Master Gardener or 4-H.

• Enter the county name.

• Enter the appropriate financial reporting period.

• Fill out the form as completely as possible with all pertinent information. Be sure to include the audit date.

Page 32: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Peer Review Report

Page 33: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Instructions for Peer Review Report

• Check either Master Gardener or 4-H.

• Enter the appropriate financial reporting period.

• Follow the annual procedures in the Financial Guidelines for Affiliated Groups.

• Fill out the report with all pertinent information. Be sure to check everything that the committee reviewed at the top of the report.

• The report is to be signed by the members of the Peer Review Committee.

Page 34: Instructions for End-of-year Financial Reports for Clubs ... · Purpose • These end-of-year financial reports are to report transactions processed through the club’s or group’s

Clubs/groups are to sign, date, and forward the required end-of-year financial reports to the staff chair at the county Extension office.

The staff chair will review and, once approved, will sign the reports and send them to the LRSO at the following address:

Associate Director for Finance and Administration U of A – Division of Agriculture Cooperative Extension Service 2301 South University Avenue Little Rock, AR 72204