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Michigan 4-H
Treasurer’sRecord Book
4-H Youth DevelopmentChildren, Youth and
Family ProgramsBringing Knowledge to Life
4H1203
4-H PledgeI pledge:
My Head to clearer thinking,
My Heart to greater loyalty,
My Hands to larger service,and
My Health to better living for
My club, my community, mycountry and my world.
Table of Contents
Introduction ............................................................................. 1Overview .......................................................................................... 1Michigan 4-H Youth Development’s Mission Statement .................. 1Philosophical Statement (Michigan 4-H Youth Development’sGuiding Principles) ............................................................................ 1Acknowledgments ............................................................................ 2
Use of This Book ...................................................................... 3Who Should Use It ............................................................................ 3How It Should Be Used .................................................................... 3
About Being A 4-H Officer ...................................................... 34-H (and Its Money) Is Publicly Owned ............................................ 3Being the Treasurer of a Public Group ............................................. 4The Treasurer’s Responsibilities ....................................................... 4
Financial Planning..................................................................... 5A Budget ........................................................................................... 5Setting Up an Account ...................................................................... 5Fund-Raising ...................................................................................... 5
Handling Money ....................................................................... 8Receiving Funds................................................................................. 8Disbursing Money ........................................................................... 10Sales Tax .......................................................................................... 14
Financial Reporting ................................................................ 17General Information ....................................................................... 17The Monthly Treasurer’s Report .................................................... 18Annual Summary Financial Report .................................................. 18Financial Record Review ................................................................. 20County 4-H Club Inventory Record ............................................... 20IRS Form 990 .................................................................................. 20
Appendices: Blank Forms ...................................................... 25A. Annual Summary Financial Report ............................................ 26B. County 4-H Club Inventory Record ......................................... 27C. County 4-H Fund-Raiser Application ........................................ 28D. County 4-H Fund-Raising Report Form.................................... 29E. Dues Form ................................................................................ 30F. Monthly Treasurer’s Report ...................................................... 31G. Payment Voucher ...................................................................... 32H. Record of Club/Group Finances ............................................... 33I. SS-4 ........................................................................................... 34
Index ....................................................................................... 35
1
IntroductionOverviewThe purposes of this publication are to:
• Detail the role and responsibilities of Michigan4-H club and group treasurers.
• Establish a common understanding of the defini-tions, tools and expectations that pertain totreasurers of 4-H clubs and groups, and tocounty council, board and committee treasurers.
• Provide 4-H:
- Treasurers with the information they need toperform their responsibilities correctly andkeep their treasuries and records in compli-ance with applicable financial regulations.
- Volunteers with the information they need toguide club and group treasurers in accordwith their role as supportive leaders.
- County staff with the information necessaryto keep the treasuries for which they haveoversight in compliance with applicablefinancial regulations.
Michigan 4-H YouthDevelopment’sMission StatementOur mission is to create nonformal, educationalopportunities to help youth thrive in a complexand changing world.
Philosophical Statement(Michigan 4-H Youth Development’sGuiding Principles)The purpose of the 4-H Guiding Principles is toprovide direction for MSU Extension 4-H YouthDevelopment’s learning materials, program plan-ning, implementation, evaluation and prioritysetting so that 4-H’ers get from their 4-H experi-ence the skills and opportunities they need forpositive growth and development. Of the seven
4-H Guiding Principles, the following five aredistinctly related to this publication.
1.Youth develop positive relationships with adultsand peers.When put into action, this principle means thatvolunteers and members are available andaccessible to each other for information, guid-ance and support. It means that both adults andyouth develop relationships that help them feellike they belong and are connected. The activi-ties and experiences of the group are sharedand they serve to build trust and foster honestand open communication.
3.Youth are actively engaged in their owndevelopment.When put into action, the goal of this principle isfor youth to increase their personal competenceand sense of well-being. A variety of opportuni-ties and experiences are offered that encourageyouth and the adults working with them toexplore, discuss and reflect on ethical values,personal interests, strengths and accomplishments.
These opportunities have purpose and meaning;they foster a young person’s positive sense ofself and view of the future. They also provide anopportunity to recognize youth for both theirparticipation and their achievement.
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
HEART HEALT
H
HANDSHEAD
2
4.Youth are considered participants rather thanrecipients in the learning process.When put into action, this principle means thatyouth are provided a variety of opportunities, indifferent contexts, that respect the way theylearn and encourage their active participation inwhat and how they learn. Young people sharethe decision-making, planning and implementa-tion of their learning experiences. Young peopleand adults also work together to overcomebarriers to participation such as cost, schedulingand transportation.
5.Youth develop skills that help them succeed.This principle ensures that young people in 4-Hhave hands-on opportunities to learn and de-velop the skills they need to be successful asadults. Youth identify, develop, practice and areable to speak about their skills. Young peopledevelop skills by setting challenging, yet realistic,goals that are supported by their peers, theiradult and older teen volunteers, their familiesand their communities.
7.Youth grow and contribute as active citizensthrough service and leadership.The outcome of this principle is for youngpeople to feel included and involved in theirclubs, their communities and our world. Thisacknowledges that youth have significant rolesto play and important contributions to make asstewards of our future. Youth are provided withexperiences that help them become competentas caring leaders and citizens and recognize theirrole as stewards of their communities. Thismeans that youth are informed about local andglobal needs, issues and opportunities.
Youth are also provided meaningful opportuni-ties to help make decisions that affect theircommunities and to use their time, energy, andskills to benefit their communities and thepeople who live in them.
AcknowledgmentsThis document is a revision and expansion of theMichigan 4-H Treasurer’s Record Book (4H1203) lastrevised in October 1997. The original publicationwas written by Sharon K. Fritz and Bruce Smith,with help from Jim Dompier and Roger Manning.
This version was revised by Julie Chapin, 4-HProgram Leader, and by Priscilla Martin, Editor,MSU Extension 4-H Youth Development. It wasdesigned by Marian Reiter, Graphic Artist, MSUExtension 4-H Youth Development. We would liketo express our gratitude to four great MSU stu-dents, Katie Dingerson, Nikky Pulling, MichelleSilm and Erin Stewart, for their patient assistanceand expertise in getting this document into print.Thanks also to the many staff and volunteers whogave input about the content of this document,especially the following individuals who did anindepth review of this document before its finalprinting: Nancy Beukema, Diane Brazier, AnnChastain, Pat Dignum, Tina Fleming, KelleyHiemstra, Hal Hudson, Neil Kentner, Deb Laws,Sandy Risedorph, Gilda Schott, Tonya VanBurenand Ann Wright.
3
Use of This BookWho Should Use ItThe Group TreasurerThe group’s treasurer must follow the stepsoutlined in this book when handling funds on behalfof 4-H and MSU Extension. Treasurers are encour-aged to use this book or a facsimile to show cashreceived, where the money came from and toshow payments made, including the check number,date and purpose. If the group does not have achecking account but does have a savings account,checks should be purchased from a bank or creditunion. For the treasurer’s protection, copies ofthese checks are to be recorded and maintained.
4-H Parents and VolunteersYou should become familiar with the information inthis book to help your club or group treasurerwith the required forms and financial reporting.More specific information on 4-H financial report-ing requirements appears in The 4-H Name andEmblem. This is available from your county MSUExtension office or on the web at http://www.national 4-hheadquarters.gov/emblem/
About Being a 4-H Officer4-H is a public organization, it is “owned” by thepublic, not by individuals the way a private com-pany is owned.
Therefore, the money groups receive from duesand fund-raising events is owned by the group, notby any one member or leader of the group. Thepublic calls for a higher standard of accountabilityand integrity for public groups. For this reason, it isextremely important that all 4-H groups show thesource of any money they have raised and how itis disbursed. Under U.S. Department of Agricul-ture and Michigan State University guidelines, thecounty MSU Extension office is required to keeptrack of all 4-H financial transactions.
4h_name.htm and from Tax Exemption Status of4-H Clubs and Affiliated 4-H Organizations to Usethe 4-H Name and Emblem. This is available on theweb at http://www.national4-hhead quarters.gov/library/fs_tax_4-05-06.pdf or from your countyMSU Extension office.
4-H County Staff4-H county staff should use this book as a re-source to help them keep the treasuries for whichthey have oversight compliant with applicablefinancial regulations.
How It Should Be UsedUse this book to obtain the information you needto perform the job treasurer or to help the trea-surer perform his or her job. When you need tocomplete a form, follow the instructions given.Then make a photocopy from the blank formsincluded in the Appendices and fill in the blanks. Asalways, if you have questions that require detailsnot provided in this book, call your county MSUExtension office for guidance.
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
As treasurer, you – and all the other officers ofyour 4-H group – represent both your group andthe 4-H program throughout the state. Your skills,abilities, standards, ideals, speech – and even yoursmiles – represent Michigan 4-H’ers. Representingothers is one of an officer’s most importantresponsibilities because it exists at all times, notjust while you are at a 4-H meeting.
4-H (and Its Money) IsPublicly Owned4-H clubs or groups are public groups, open to allwithout regard to race, color, national origin, age,disability, religion, political beliefs, gender, sexualorientation, marital status or family status. Since
4
For Deposit Only
4-H SmartClovers Club
Hometown Savings BankAccount 804-0900
Being the Treasurer of aPublic GroupBecause 4-H is a public group, a 4-H treasurer’sresponsibilities are quite different from those of aprivate company’s treasurer. The treasurer of aprivate company is responsible to other companyofficers, and to the owners or stockholders formanaging and controlling the assets of the com-pany. (These assets may include cash, bank ac-counts, buildings, land and equipment, comparedto most 4-H groups whose assets are limited tocash or bank accounts.) By contrast, a 4-H group’streasurer is responsible to other officers, mem-bers, adult leaders, Michigan State University andto the public.
The Treasurer’sResponsibilitiesAs the group’s treasurer, you are responsible fortaking care of the club’s money and bank accounts.Specifically, you’re in charge of “keeping thebooks” (that is, your group’s receipt book, check-book and check register, payment vouchers andbank statements). This responsibility requireshonesty, integrity and cooperation with yourgroup’s members and leaders. You can meet thehigh standards required of a 4-H treasurer bystudying and following the money-handling meth-ods found in this book. These standards applywhether a group has 25 cents or $2500 in itstreasury. Conflicts may arise if money is nothandled carefully and accurately. You can protect
yourself and your 4-H group from conflict by beingcareful, responsible and accurate when you handleyour group’s finances.
Check the following items to verify that youunderstand and accept these responsibilities:
I will inform the bank in which my 4-H club orgroup’s funds are deposited that I am the newtreasurer, and sign the appropriate forms so Ican write checks drawn on that account.
I will report required information wheneverrequested by my county MSU Extension staffand follow the policies established by MichiganState University and MSU Extension.
I will handle all money matters for my 4-H clubor group.
I will keep an accurate record in the treasurer’sbook of how all money is used.
I will deposit all funds my group earns or re-ceives in the bank as soon as possible afterreceiving them.
I will pay all of the group’s bills promptly asdirected by the president and approved by themembers.
I will prepare and present a summary of incomeand expenses at each meeting. I will also reportthe current balance of all accounts.
I will prepare an Annual Summary FinancialReport for all accounts and submit it to mycounty MSU Extension office as requested.
4-H Smart Clovers Club
20
HometownSavings Bank
PAY TOTHE ORDER OF
DOLLARS
May 24
George Gonzales
PURPOSE food-family fun night
Fairway GroceryTen and 34/100
33-22/730
115210
10.34$$$$$
No. 17
99
Received
from
For
By
$
Date
Give white copy to customer.
Keep pink copy.
Kerri Culver
Cookies
George Gonzales
7.09
September 3, 2010
5
Financial Planning○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
A BudgetSome groups prepare a budget for the year. Abudget is a written plan for raising and spendingmoney for a set period of time, usually one year.Since a budget is approved by the members of thegroup, it’s not necessary to seek approval forpayment of items already listed in the budget. If agroup doesn’t have a budget or items arise that arenot part of the budget, each item needs to bepresented to the members for approval beforepayment. This accomplishes two things. First, allexpeditures of group funds are made with thegroup’s full approval. Second, this is a great way forthe club or group members to learn how moneyflows into and out of an organization.
Setting Up an AccountEIN RequiredEvery 4-H group that has a checking or savingsaccount is required to have an Employer Identifica-tion Number (EIN) from the Internal RevenueService (IRS). To apply for an EIN, use Form SS-4.(A blank copy is provided on pg. 34 and yourcounty MSU Extension office should also have it.)
Figure 1 (see pg. 6) is a sample of a completedSS-4. Be sure to follow the sample format whenyou complete the form to receive an EIN for yourgroup. Remember to put “4-H” as the first wordof your group’s name on the form and on yourgroup bank accounts. Once you have completedthe SS-4 form, you may apply for the EIN bytelephone or on the Web.
To apply for an EIN by telephone:
1.With the completed application form (SS-4) infront of you, call (800) 829-4933 between 7:30a.m. and 5:30 p.m. Eastern Time. An IRS repre-sentative will use the information on the SS-4 toassign the EIN number.
2.Write the EIN assigned on the upper rightcorner of the form, sign and date the form.Keep the copy for your records.
3. If the IRS representative requests it, mail or faxthe signed SS-4 within 24 hours to the IRS.The fax number is (859) 669-5760 and the mailaddress is: EIN Operation, Internal RevenueService, Cincinnati, OH 45999.
To apply for an EIN on the Internet:
1.Go to the following web site: https://sa2.www4.irs.gov/sa_vign/newFormSS4.do.
2.Using the information on the SS-4 in front ofyou, complete the form online. (Notice thatyou will not need to have the form signed.)
3.Press “Next” at the bottom of the page.
Regardless of how you receive the EIN, reportit to your bank and to your county MSUExtension office. The IRS can fine groups $50for failure to report an EIN.
Account SignatoriesEach 4-H group should require at least thetreasurer and two adult leaders’ names to besigners on the bank account. Neither adult leadermay be the treasurer’s parent or guardian. No4-H staff member may sign on any accountbelonging to a 4-H club or group. Note: Somebanking institutions allow only individuals aged 18and older as signers on checking accounts. Checkwith your local institution about its policies.
Fund-Raising4-H youth participants pay a $10 fee when theyenroll each year in 4-H. The annual fee is used tosupport county and state programming. Localgroups may also choose to raise money for theireducational and recreational goals through fund-raising, dues or both. A group treasury is neces-sary if funds are maintained for group use.
Fund-raising should be done for the good of thetotal group and it should be consistent with thecounty’s 4-H fund-raising policies. Fund-raisingshould not be the main focus of group activitiesnor should it exclude any individual from partici-
6
X
517 555-5555Vicki M. Volunteer
4-H Great Expectations Club
Vicki M. Volunteer
22 Pleasant View Drive
Dickins, MI 40000
X
savings/checkingX
Vicki M. Volunteer 8/10/2014
2704
Fund-raising for club activities
NonprofitX
5/19/2014
7
pation. Groups are expected to support thefinancial needs of the total group and, whenpossible, to assist with participant costs in county,state, national and international programs.
An educational component needs to be part of allfund-raising activities. A group needs to be able toclearly state the educational value of the fund-raiser. It is not appropriate for clubs or groups toconduct fund-raisers solely for recreational pur-poses (such as trips to Cedar Point). However, ifmembers participate in planning and budgeting,even a party can be educational.
Review and Approvalfor Fund-RaisingAll fund-raising activities must be reviewed andapproved by your 4-H Youth Extension educatoror county Extension director before the event.The U.S. Department of Agriculture (USDA)requires such approval for all 4-H groups. To beginthe review and approval process, complete andsend the County 4-H Fund-Raiser Application toyour county 4-H Extension educator or countyExtension director, at least two weeks before theevent. (A blank copy of this form is on pg. 28). Ifhe or she approves of the fund-raiser, you will benotified by staff. You may hold the fund-raisingevent only if you receive this approval. Within 10business days after the end of the event, you mustsubmit the “County 4-H Fund-Raising ReportForm” (a blank copy of which is on pg. 29).
Games of ChanceAs an educational youth development organizationserving various interests and needs, we discouragedrawings, raffles and various kinds of games ofchance to raise money to support our programsbecause youth cannot be involved in selling ticketsfor games of chance. We prefer that those in-volved in 4-H youth development programs initiatefund-raising efforts in which people receive aproduct or service. If, however, counties decide tohold games of chance, they need to follow therules governing such games. The CharitableGaming Division of the Bureau of State Lottery isthe agency responsible for regulating raffles, bingoand other games of chance in MIchigan. For moreinformation, visit http://www.michigan.gov/cg or callthe Charitable Gaming Division at (517) 335-5780.
Use of Funds RaisedAll money raised using the 4-H name must be usedonly for 4-H activities. Because these funds arepublicly accountable, they must not be used in anyway to enrich individuals. This means that moneymay not be given to individual group members orothers, but must be used to pay for educationalprograms, activities, workshops or 4-H groupsupplies. Money may be transferred to fundcounty, state or national 4-H programs.
Figure 1 (at left). Sample of completed Form SS-4.
8
Handling Money○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
Receiving FundsReceiptsYou should acknowledge all money received,whether from dues or fund-raising, with a writtenreceipt, preferably prenumbered and with acarbon copy. (They are available from many officesupply stores.) If you make a mistake and have tovoid a receipt for any reason, mark both copies“VOID,” staple them together and keep them withthe treasurer’s records. (See fig. 2 for a samplereceipt.) The receipt should include the source ofthe funds (such as a car wash or plat book sales),the date, and if possible, the name of the personmaking the payment. These receipts are thebackup documentation for any bank depositsmade. The receipts should also become a perma-nent part of the club or group records.
Writing a receipt takes a little time, but it helpsprotect your reputation. Without a receipt there isno way to prove that your 4-H club or groupreceived a specific amount of money or that youhandled it correctly.
Receipts for Dues
You don’t need to write an individual receipt foreach person paying dues. Just fill out the “DuesForm” (see a sample, fig. 4 on pg. 9, and a blankform on pg. 30), total the amount of dues paid forthe meeting and write one receipt for the totalamount. On the receipt, write “Club Members” inthe “Received from” blank and “Dues” and themeeting date in the “For” blank.
Receipts for Money From Fund-Raisers
If your 4-H group holds a fund-raiser such as abake sale or car wash, you don’t need to write areceipt for each person buying a cookie or havinghis or her car washed, but you (or the shift leader)need to write one receipt at the end of each shiftor at the end of the day. Each group of workersmust account for the money they receive.
Two people, other than you, should count themoney, agree on the amount and turn the moneyover to you. It’s a good idea for you to verify theamount (recount the money) in the presence ofthe people giving you the money. Then give thema receipt for the amount they gave you (see fig. 3).
Acknowledging Noncash DonationsYou should acknowledge noncash donations (forexample, consumable donations of supplies ormiscellaneous items) in writing to the donor. Keepa copy of the acknowledgment with yourtreasurer’s records. Accept nonconsumabledonations such as equipment or animals only ifyour group is prepared to accept the responsibili-ties of ownership including care, maintenance andinsurance. Before accepting donations of equip-ment or animals, your club leadership will need tomeet with the local 4-H staff person to discuss thedecision.
Send written acknowledgment to the donor andkeep a copy in the treasurer’s records. To makethe acknowledgment process simple, forms (seefig. 5) can be printed on carbonless, triplicate
Figure 2. Sample of completed receipt. Figure 3. Receipt for money from fund-raiser.
No. 1795
Receivedfrom
For
By $
Date Give white copy to customer.Keep pink copy.
Mai Kwon & Darriel Will
Car Wash – 8/23/10
George Gonzales 210.50
August 23, 2010
No. 1799
Receivedfrom
For
By $
Date Give white copy to customer.Keep pink copy.
Kerri Culver
Cookies
George Gonzales 7.09
September 3, 2010
9
paper. The Internal Revenue Service requires thata specific set of written documents be completedby the donor and the donee if a noncash gift isvalued at $5000 or more. In such a case, consult aqualified attorney. Valuation of a noncash donationis the responsibility of the donor, in consultationwith his or her tax advisor and individuals qualified
to appraise items of this type. It is not appropriatefor a 4-H group, staff member or volunteer toplace a value on items donated.
Donors cannot specify the individual recipient ofcash or noncash donations. Clubs or groups shouldnot feel compelled to accept noncash gifts. TheExtension educator responsible for 4-H Youth
Figure 4. Sample of completed dues form.
Dues Form
George Gonzales 5/25 0.50 0.50 0.50 — 0.50 0.50
Alexis Theodakis 5/25 0.50 0.50 0.50 0.50 0.50 0.50
Petra Theodakis 5/25 0.50 0.50 0.50 0.50 0.50 0.50
Darriel Will 5/25 0.50 0.50 0.50 0.50 0.50 —
Marissa Fortier 6/27 — 0.50 0.50 0.50 — 0.50
Forrest Rutkowski 7/25 — — 0.50 0.50 0.50 0.50
Mai Kwon 8/20 — — — 0.50 0.50 0.50
Jim Christiansen 8/27 — — — 0.50 0.50 0.50
Kerri Culver 8/27 — — — 0.50 0.50 0.50
Total — 2.00 2.50 3.00 4.00 4.00 4.00
Member’s NameDate
Joined
Date and Dues Paid
5/25 6/30 7/28 8/27 9/29 10/4
Figure 5. Donor acknowledgment form.
County 4-H Youth Programs
Your gift is greatly appreciated and it is federally deductible.
Date
Company Name
Company Rep
Street
City State ZIP
Phone
Donated Item
Designation or Event
Club or Countywide Project
Contact Person
Signature
Amount of Dues to be Paid $ 0.50
10
programs should be contacted whenever thegroup has questions about the appropriate actionwith respect to accepting and managing anydonation.
Bank DepositsBefore you deposit a check, the person to whomit is payable must endorse (sign) the back of it.Checks that are made payable to the group mustbe endorsed by signing the group’s name (aswritten on the check) and the treasurer’s name. Ifsomeone writes a check payable to you that isintended for your 4-H group, endorse it by writing“Pay to the order of (your group’s name)” andsigning it. You may want to have a rubber stampmade with the group name and account numberon it to save you time (and wear and tear on yourwriting hand). (See fig. 6 for a sample rubberstamp.) Keep these things in mind when makingdeposits:
• Endorse checks immediately when you receivethem.
• Deposit all funds promptly. If your group re-ceives more than $10 at any time, deposit themoney within three days.
Preparing Deposits
Total the receipts you have written since you madethe last deposit and compare that amount with theamount of cash, coins and checks you intend todeposit. The two figures should agree. If theydon’t, repeat the process. When the two figures
do agree, prepare a deposit ticket or slip similar toFigure 7. If your group has a checking account,there is usually a supply of deposit slips at the endof each pad of checks. Usually, you can also pickup a blank in the bank lobby.
Follow these steps when filling out a deposit ticketor slip.
1.Date the deposit slip.
2.Fill in the amount of currency (bills) and coinsyou are depositing.
3.List each check number and its amount sepa-rately (use the back of the deposit slip, if neces-sary).
4.Record the deposit in the checking accountregister (see fig. 11 on pg. 12).
5.On the receipt the bank gives you, write theamount and source of the funds that make upthe deposit.
Disbursing MoneyApproving BillsOne of your responsibilities as treasurer, andreflected in your treasurer’s report, is asking forand receiving the club or group members’ ap-proval to pay the outstanding bills. Paymentsshould be made only in response to a formalwritten bill or invoice.
Figure 6. “For Deposit Only”rubber stamp.
Figure 7. Sample of completed deposit ticket or slip.
DATE 20
This deposit is accepted subject to verification and to our rules and regulations
HometownSavings Bank
DEPOSIT TICKET
4-H Smart Clovers ClubList
ItemsSingly
CURRENCY
COIN
CHECKS
TOTAL FROMOTHER SIDE
SUB-TOTALLESS CASHRECEIVED
TOTAL
DOLLARS CENTS****************************************************************
33-22/730
If More Than 2Items List onReverse Side
TOTAL ITEMSMay 27 10George Gonzales
(073000 2 28( 7334 804 0900(073000 2 28( 7334 804 0900(073000 2 28( 7334 804 0900(073000 2 28( 7334 804 0900(073000 2 28( 7334 804 0900
14 56
14 56-0-
787 10 001 563 00
-0-
For Deposit Only
4-H SmartClovers ClubHometown Savings Bank
Account 804-0900
11
Paying BillsCheck Request Forms and Payment Vouchers
Check request forms and payment vouchers aredocuments that record your 4-H group’s approvalto pay a bill. Prepare one of these forms beforepaying any bill. Figure 8 is a sample of a completedpayment voucher. Blank payment vouchers are onpage 32. The approval form must be signed bysomeone other than the person(s) signing thecheck.
Checks Versus Cash
The usual way to pay bills is with a check. Holdingcash back from deposits and then using the cash topay bills is not a good practice because it doesn’tleave a record or provide proof of payment. Aproper invoice protects your reputation as trea-surer. For more information about groups that do
not have bank accounts, see “Guidelines forGroups Without Bank Accounts” on page 13.
Writing ChecksAfter the members approve paying a bill, write acheck for the approved amount of the bill. Followthese steps when writing checks:
1. Use ink.
2. Never erase a mistake. If you make a mistake,write “VOID” on the spoiled check and start anew one. Keep the voided check, don’tdestroy it.
3. Write today’s date on the check.
4. Start writing the name of the person or busi-ness to whom the check is payable as close tothe “Pay to the order of” as possible. (Avoidwriting checks for less than $1, but if you haveto, start the “Dollars” line by writing the word“Only” and then the amount. See fig. 9 for asample of a check written for less than $1.)
5. Begin writing the amount at the extreme left ofthe amount line. Be sure the written amountagrees with the numeric amount.
6. Leave as little space as possible between thefigures and words when filling in the amountlines. This helps prevents someone else fromchanging a $1 check, for example, into a $100or $1000 check.
7. Sign the check with your authorized signature,which is the way you signed the signature cardat the bank when you became treasurer.
8. Use the memo line as a short description ofthe purpose of the check.
Approved:
Date:
Date:
Check number: Date:
President's signature
Secretary's signature
By:
Payment Voucher
4-H club/group name
Date:
Pay to:(Copy of bill or statement must be attached.)
Project:Items purchased: Amount:
4-H Smart Clovers Club
May 24, 2010
Fairway Grocery
Food Family Fun Night $10.34
Kerri Culver
1152
5/24/10
5/24/10
5/24/10
Petra Theodakis
George Gonzales
Figure 8. Sample of completed paymentvoucher.
4-H Smart Clovers Club 20
HometownSavings Bank
PAY TOTHE ORDER OF
DOLLARS
July 8
George GonzalesPURPOSE safety pins
Save A Little33-22/730
10
0.55$$$$$
Figure 9. Sample check written for under $1.
Only 55/100
1163
12
9. If a check written on the group’s account islost, notify the customer service department ofthe bank at once.
Figure 10 is a sample of a check written to FairwayGrocery for $10.34 to pay for food for the 4-HSmart Clovers Club’s family fun night.
Keeping Records AboutDisbursementsCompleting a Disbursement Transaction
After you write a check to pay a bill, attach theitemized invoice (clearly stating what was billed) orreceipt (with the check number and date of thecheck on it) to the payment voucher. Completethe payment voucher (see fig. 8 on pg. 11) by fillingin the check number and the date of payment.This will become a permanent part of thetreasurer’s records. This practice is very importantto protect the treasurer’s reputation.
Maintaining the Check RegisterToday, computer software programs (such asQuicken and Quick Books) can help make yourbookkeeping easier. However, if you work withoutcomputer assistance, follow these steps to keepyour 4-H group’s check register up to date.
1. Write the check number and the date it waswritten in the appropriate columns.
2. In the “description of transaction” column,write to whom the check was made payable.
3. Enter the check amount in the “payment/debit” column and in the balance column. Thensubtract the check amount from the remainingbalance on the line above and enter the newbalance immediately below.
4. You can use the “T” column at the end of eachmonth when you reconcile the account againstthe bank statement. Use this space to checkoff the checks that have cleared the bank (thisinformation comes from the bank statementor the checks that have been returned to you).
5. The “Fee, if any” column is the place to listfees the bank has charged your group forcashing or purchasing checks or for preparingan account statement. Any fees will appear onthe account statement. Enter the fee amountand subtract it from the account balance.
6. Record the amount of any deposits in the“depost/credit” column. Then add the depositamount to the account balance on the lineabove and record the new account balancestraight across.
Figure 11 shows that:
• Check 1152 for $10.34 was written on May 24to Fairway Grocery.
Figure 11. Sample of completed checkregister.
Checking Account Register
RECORD ALL CHARGES OR CREDITS THAT APPEAR ON YOUR ACCOUNT
NUMBER DATE DESCRIPTION OF TRANSACTIONPAYMENT/
DEBIT(-)
✔T
FEE(IF ANY)
(-)
DEPOSIT/CREDIT
(+)
BALANCE
$
REMEMBER TO RECORD AUTOMATIC PAYMENTS/DEPOSITS ON DATE AUTHORIZED
27 76
-10 341152 5/24 Fairway Grocery 10 34 17 42
+14 56 — 5/27 Deposit 14 56 31 98
-3 00 — 5/30 Statement Fee 3.00 28 98
Figure 10. Sample check.
4-H Smart Clovers Club20
HometownSavings Bank
PAY TOTHE ORDER OF
DOLLARS
May 24
George GonzalesPURPOSE food-family fun night
Fairway Grocery
Ten and 34/100
33-22/730
1152
10
10.34$$$$$
13
• A $14.56 deposit was made on May 27.
• A $3 bank statement fee was charged to theaccount on May 30.
Guidelines for Groups Without BankAccountsSome groups operate without checking or savingsaccounts. Even without a bank account, clubs orgroups must follow certain guidelines.
Groups without bank accounts must follow thesame bill-paying system as groups with bankaccounts. The primary difference is that, instead ofusing the group’s own checks, you will purchasemoney orders or cashier’s checks from a bank topay bills. Another difference is that your monthlytreasurer’s report leaves out the bank accountreconciliation. Instead of a check register, you’lluse the “Record of Club/Group Finances” (see fig.12).
1. In the “date” column, write the date thetransaction took place. In the “for what pur-
pose” column, write to whom the paymentwas made.
2. Enter the cashier’s check, money order, bankfee or cash payment amount in the “amount”column. Then subtract the amount of thepayment from the remaining balance on theline above and enter the new balance immedi-ately below.
3. When the group receives money, record theamount in the “from what source” column. Addthe amount to the balance on the line aboveand enter the new balance immediately below.
All other financial rules and guidelines for groupswith bank accounts apply to groups without bankaccounts.
Complaints About DisbursementsThe MSU Extension educator responsible for 4-HYouth programs must investigate the disbursementof 4-H funds by any group if a complaint is made.Issues of this nature can be avoided by following
Figure 12. Sample of completed record of group finances.
Record of Club/Group FinancesCash Paid OutCash Received Balance
Date From What Source Amount For What Purpose AmountBalance at end
of each entry
Balance carried over from previous page $
Balance carried over to next page $
27.76
-10.345/24 Fairway Grocery 10. 34 17.42
-1.005/24 Money Order Fees 1.00 16.42
+14.565/27 Deposit 14.56 30.98
14
the guidelines found in this book. Concerns can besettled quickly if groups have kept their books upto date and have followed these guidelines.
Disbanded Group’s TreasuryAny 4-H club that disbands with money left in itsaccount must turn over those funds to the county4-H council or county MSU Extension office. Allproperty belonging to the group must be distrib-uted in the same manner. Group members mayrequest that the resources be used for a specific4-H program within the group, county or state.This request will be acted on by the county 4-Hcouncil in concert with the Extension educatorresponsible for 4-H Youth programs at the timethe group is dissolved.
If a club or group divides itself, creating more thanone recognized and properly registered club orgroup, the funds from the original group must beevenly disbursed, based on membership, in eachgroup. For example, there are 10 members in theoriginal group (Club A), and 6 form Club B and 4form Club C. In this example, Club B would get 60percent of Club A’s treasury while Club C wouldget 40 percent.
Sales TaxIn this section, we discuss general informationabout sales tax. For example, on the next pagethere is a flow chart that answers questions suchas:• Does your group have to collect sales tax?
• If your group does have to collect sales tax,what is the process for collecting it and sendingit in?
• What kind of records does your group need tokeep?
Immediately following the flow chart are somefrequently asked questions (FAQs) and theiranswers about Michigan sales tax and how itrelates to Michigan State University Extension-related organizations. If you have further questionsor concerns about sales tax issues or if you needmore detailed information than is provided here,contact your county MSU Extension office.
Tax-Exempt PurchasesClubs or groups may use the state 4-H tax exemptnumber for educational purchases for club orgroup use. If an item being purchased has a sizableamount of tax on it, contact the MSU Extensionoffice to use this number.
Collection of Sales TaxMichigan tax law requires that organizations sellingtangible personal property in excess of $5000 inone year collect sales tax from the buyers. There-fore, 4-H groups are required to collect sales taxon items such as food, candy, crafts, tack, cook-books, calendars or plat books; on the fair market(retail) cost of items raffled off; concession standsales; and in most instances where some tangibleitem has been sold, if the group’s total sales forone year will exceed $5000.
Remitting Sales TaxCalculating the Sales Tax Due
The first step in remitting sales tax is to calculatethe sales tax due. To do so, follow these steps:
1. Complete the Annual Summary FinancialReport. (See fig. 14 on pg. 23 for a sample ofthis report; a blank form is on pg. 26.)
2. If the amount on the line titled “sales subtotal”is less than $5000, no sales tax is due. How-ever, if the amount on the line titled “salessubtotal” is more than $5000, divide thatnumber by 17.67.
Paying Sales TaxTo remit the sales tax:
1. Write a check or money order in that amountpayable to your county MSU Extension office.
2. Submit both the Annual Summary FinancialReport and the check to your county MSUExtension office. The county MSU Extensionoffice will make appropriate payments for thecounty.
Keeping Sales Tax RecordsKeep the receipt for the check or money orderyou wrote to your county MSU Extension office.
15
Sales TaxDoes Your Group Have to Collect It?
If So, How Do You Collect It and Send It In?What Kind of Records Does Your Group Need to Keep?
Is it possible that your club will sell tangible personal property – (for example, food, candy, craftitems, tack, cookbooks, calendars, plat books, bulletins; concession stand sales; and the fair marketcost [retail] of items raffled off) – totaling $5000 or more in a year?
Collect sales tax on tangible personal prop-erty (see box above for examples).
Most items that 4-H clubs or groups sell includesales tax as part of the purchase price. Whensales tax is part of the item’s price, it’s calledinclusive tax. In Michigan, you can do this bymultiplying the item’s price by 1.06. (For ex-ample, a $1 item would sell for $1.06.) If youuse the inclusive method, you must state some-where near the price that the “price includesMichigan Sales Tax.” Otherwise, the State ofMichigan assumes that you’re liable for salestax on the entire amount (the $1.06) ratherthan the gross amount minus the sales tax.
Do not collect sales taxon:• Project animals that
are auctioned off.
• Commissions re-ceived from clerkingat a county fair live-stock auction.
• Proceeds from carwashes, bake sales,candy sales, or salesof pizza or subma-rine sandwiches.
Do notcollectsales tax.
To remit sales tax:• Complete the Annual Summary Financial Report. Divide the line
titled “sales subtotal” by 17.67. For example if your sales subtotalequals $5512, the amount would be $312.
• Prepare and send a check or money order – in the amount listedabove – to your county MSU Extension office.
Keep the receipt the county MSU Extension office gives you. Youmust keep records to support your group’s financial activities for thelast 5 years in case of an audit.
No Yes
16
You must keep records to support your group’sfinancial activities for at least 5 years in case of anaudit.
Michigan Sales Tax FAQsThe following are some common questions (andanswers) about Michigan sales tax and how itrelates to Michigan State University Extension-related organizations.
1.Are Extension and 4-H tax exempt?Yes.
2.What does being tax exempt mean?Being tax exempt means that groups may usethe state 4-H tax exempt number for educa-tional purchases for club or group use. If an itembeing purchased has a sizable amount of tax onit, contact the MSU Extension office to use thisnumber.
However, being tax exempt does not necessar-ily mean that a group does not have to collectand send in sales tax. If a club sells more than$5000 in tangible personal property in a year, itmust collect and send in sales tax. For moredetailed information on this process, see theflow chart on page 15.
3.Why is it necessary to collect sales tax?Your group must collect sales tax – on annualsales of $5000 or more of tangible personalproperty – because it’s the law and we mustobey the law. Future sales tax auditors willcontinue to look closely at the sales activities(particularly plat book sales) of MSU Extension-related groups.
4.Aren’t farmers and agricultural producersexempt from paying state sales tax?Yes, they are exempt from paying state sales taxfor “tools” used in their operations. A plat bookmay be a business “tool” for such a person. Inthat case, the buyer needs to sign a sales taxexemption statement. These forms are availablefrom the county MSU Extension office.
5. If we raffle off something or hold a drawing,is there sales tax on the prize? If so, whopays the sales tax?If your group sells more than $5000 in tangiblepersonal property in a year and if the prize istangible personal property (see the flow charton page 15 for an explanation of this), there issales tax on the fair market value of the prize.Since you probably wouldn’t ask the winner topay tax on his or her winnings, you would paysales tax from the proceeds of the ticket sales.
6. How would we know how much sales tax tocharge on a donated item?You need to estimate the fair market value ofthe item. The estimate could be based on localprices, mail order catalogs or the word of thedonor.
7. If we need to collect sales tax, how can wedetermine whether an item we’re selling istaxable?Generally, the simplest thing is to go ahead andpay the tax. Usually, it’s easier to raise the priceof something enough to cover the tax than toworry about it.
8. May groups that already have their ownMichigan sales tax license continue to usethem instead of making the paymentsthrough the county MSU Extension office?No. All of your group’s Michigan sales taxpayments must be made through the countyMSU Extension office to Michigan State Univer-sity. For more detailed information on thisprocess, see the flow chart on page 15.
17
Financial ReportingGeneral Information4-H Financial ReportsThe following table (Table 1) provides an over-view of the 4-H financial reports. They are listedby the time when they are due. All groups mustcomplete the first four reports. Very few groups
will have to complete Form 990. Only treasurerswhose group holds an approved fund-raiser willhave to complete a County 4-H Fund-RaiserReport Form. Except for the fund-raising report(which was discussed on page 7), each report isdetailed in the pages that follow.
Report Who Must Complete When Due Where Presented
Monthly Treasurer’sReport
Every group’s treasurer Each month • Group meeting
• County MSU Extensionoffice if group has annualactivity of more than $2500
County 4-H ClubInventory Record
Every group’s leader Yearly on datedetermined bycounty
County MSU Extension office
Annual SummaryFinancial Report
Every group’s treasurer Yearly on datedetermined bycounty
County MSU Extension office
Financial RecordReview (Audit)
Every group (must notbe the treasurer, anaccount signatory, or aparent or guardian of thetreasurer or of an ac-count signatory)
Yearly on datedetermined bycounty
• Group meeting
• County MSU Extensionoffice if group has annualactivity of more than $2500
IRS Form 990 Groups whose grossannual receipts exceed$25,000 for three years ina row
Yearly on datedetermined bycounty
• Internal Revenue Service
• County MSU Extensionoffice
County 4-HFund-Raiser ReportForm
Treasurer of group thatholds an approved fund-raiser
Within 10business daysafter the end ofthe fund-raiser
County MSU Extension office
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
Table 1. 4-H Financial Report Overview.
18
Submit Records to County MSUExtension Office Upon RequestAll bank statements, receipts, cancelled checks,checkbooks, savings account books and thisMichigan 4-H Treasurer’s Record Book (4H1203)must be turned in to your county MSU Extensionoffice when requested by MSU Extension staff.The 4-H Youth Extension educator or countyExtension director (CED) can request periodicaudits and have financial reports submitted annu-ally.
Groups With Annual Activityof Less Than $2500All 4-H groups with annual incomes of less than$2500 – or with bank account balances of less than$2500 – must provide beginning and ending bankstatements when submitting the Annual SummaryFinancial Report to the MSU Extension office forreview.
Groups With Annual Activityof More Than $2500All 4-H groups with annual activity of more than$2500 – or with bank account balances of morethan $2500 – must:• Have their bank statements sent directly to the
county MSU Extension office. County office staffwould then photocopy the statements andforward them to the groups’ treasurers.
• File copies of the minutes of each meeting andcopies of each monthly treasurer’s report withthe county MSU Extension office.
The MonthlyTreasurer’s ReportThe treasurer’s report (see fig. 13 on pg. 19 for asample; a blank original is on pg. 31) informsmembers of the group’s financial activity for thepast month. After you complete a copy of the“Monthly Treasurer’s Report,” circulate a copy ofthe report and the bank statement. Then presentfor the group’s approval the bills to be paid in thenext month.
After the group has reviewed your treasurer’sreport and verified that it is reconciled with the
bank statement, a member moves to accept thetreasurer’s report, the motion is seconded and thegroup votes on the motion. If the motion is ap-proved, the secretary enters a copy of thetreasurer’s report into the minutes. However, thetreasurer keeps the bank statement, paymentvouchers, annual summary financial reports and allreceipt books in the group’s permanent records.
Annual SummaryFinancial ReportWhat Is It?The Annual Summary Financial Report sums upyour 4-H group’s financial activities during theprogram year (September 1 to August 31).
Why Is It Important?Michigan 4-H Youth Development programs is partof Michigan State University Extension which, as itsname suggests, is part of Michigan State University.For that reason alone, it is important that volun-teers effectively manage public funds raised as partof the activities of a 4-H group. This report isimportant because it:• Is a means by which MSU Extension-related
organizations help the university fulfill its obliga-tion of fiscal accountability to the residents ofMichigan.
• Fulfills the audit concerns of Michigan StateUniversity.
• Creates an open, auditable, public record ofwhether a group is required to remit Michigansales tax.
• Is the auditable record of the group and verifieswhether a group is required to file an InternalRevenue Service (IRS) Form 990.
• Completes a federal requirement for financialaccounting by 4-H groups.
Who Must Complete It?All 4-H groups must complete and file a copy ofthis report whether or not they handle any moneyduring the year.
Other Uses For ItThis report can also be adapted for use as amonthly treasurer’s report if your group wishes.
19
Club/Group name
Monthly Treasurer's Report1. State the beginning balance:
Balance:Date:
amount $ for what purpose
amount $ for what purpose
amount $ for what purpose
Total received: $
3. State the expenses:
$
for what purpose
$ to
for what purpose
$ to
for what purpose
Total expenses: $
4. Indicate closing balance:
Date: Closing balance: $
If the club or group has a checking account, do the following:
Add back checks that haven't shown up on the bank statement plusSubtract deposits not showing up on bank statement minusAdjusted balance should agree with bank statement equalsInclude clear copy of bank statement that agrees with the total adjusted balance, directlyabove.
Prepared by: Accepted by:
Date: Date:
President's signatureTreasurer's signature
Figure 13. Sample of completed monthly treasurer's report.
5/01/10
4-H Smart Clovers Club
7.09 Cookies
10.34 Fairway Grocery
food-family fun night
Howntown Savings
statement fee
5/31/10
13.34
3.00
7.09
2. Indicate money received:
$27.76
21.51
21.51
0
0
George Gonzales Kerri Culver
6/30/10 6/30/10
20
How to Complete ItUse the instructions in Table 2 on page 21 to helpyou complete and send in the Annual SummaryFinancial Report. Send this report (and a checkfor the sales tax, if your group owes any) to yourcounty MSU Extension office by the datedetermined by your county. (See the samplereport on pg. 23. A blank original is on pg. 26.)
Note: If your group does not handle anymoney during the year:• Mark zeroes in the blanks.• Sign and date it.• Send it to your county MSU Extension office by
the date determined by your county.
Financial Record ReviewAll 4-H groups must review their financial recordsonce a year (before submitting their Annual Sum-mary Financial Report to the county MSU Exten-sion office). The person who conducts the financialrecord review cannot be the treasurer, an accountsignatory, or a parent or guardian of the treasureror of an account signatory.
Following are the steps for a simple club financialreview.
1. Add up the receipts from the receipt book tosee if that amount matches the bank deposits.Determine reasons for differences, if any.
2. Were there events that took in cash? If so, isthere evidence of a “witnessed cash count” byindividuals other than the person making thedeposit? Does the witnessed cash count equalthe amount of the deposit and does the de-posit show up on the bank statement?
3. Compare the bank deposit amounts to theamounts that show up on the bank statementfor each month. Determine reasons fordifferences, if any.
4. Was the bank account reconciled each month?This is usually found on the reverse side of themonthly statement. Can you compare thereconciled bank account balance to a figure inthe check register? It should be apparent thatthe two are the same amount.
5. Were there any cash withdrawals from thebank account? If so, is there documentationthat they were legitimate? Are there any othertransactions in the bank account that needfurther explanation?
6. Review the expenditures and how they wereapproved. Are there expenditures that seemout of place? If cancelled checks are returned,review both sides of checks to make sure thepeople you have determined to be legitimaterecipients of the checks are the people whodeposited the checks.
7. Review the Annual Summary Financial Report.Was Michigan sales tax paid if the group soldmore than $5000 worth of tangible personalproperty? Does the financial report reflect allof the fund-raising activities that happenedduring the year? Does it reflect all of theexpenditures for the year? Does it reconcileeasily to the closing balance of the last bankstatement for the year?
8. Reviewer(s) should sign the report and providea contact telephone number.
County 4-H Club InventoryRecordThis annual report must be completed, regardlessof whether your group has purchased or discardedany equipment in the program year, and sent toyour county MSU Extension office by the date setby the county. This record is a running inventory ofyour group’s belongings. (See fig. 15 on pg 24 for asample completed report, and a blank form on pg.27.) For details about completing this form, callyour county MSU Extension office.
IRS Form 990If your group’s gross annual receipts (total revenuefrom all sources without subtracting any expenses)exceed $25,000 for each of three years in a row,the third year, your group must complete and filewith the Internal Revenue Service (IRS) and yourcounty MSU Extension office an IRS Form 990.Once your group has filed Form 990, it must filethe form every year after that, no matter what itsgross annual receipts are.
21
Report Line Line Instructions
First two lines
Account bal-ance at begin-ning of year
Fill in the dates covered by the report, your group’s name and EIN.
Next to (A), enter the balance your group had on hand in a bank, credit union, orsavings and loan (or in a safe place at home if your group does not have an ac-count). If your group does have an account, this balance would be the ending bal-ance on the August statement.
Taxable salesrevenue
On lines 1 and 2, list the income your group gained in one year from selling onlytangible personal property (such as food, candy, crafts, tack, cookbooks, calendarsor plat books; on the fair market [retail] cost of items raffled off; concession standsales). List the event or activity, the date and the total amount raised. If you havemore than two lines of income, enter it on the reverse side of the sheet and enterthe total on line 3.
Enter the total of the amounts from lines 1to 3 next to (B).Sales subtotal
Grants andother nontax-able activities
On lines 1 and 2, report income from activities such as car washes, bake sales,candy sales, or sales of pizza or submarine sandwiches, and from club dues orgrants your group may have received. List the event or activity, the date and thetotal amount raised. If you have more than two lines of income, enter it on thereverse side of the sheet and enter the total on line 3.
Nontaxablesales subtotal
Enter the total of the amounts from lines 1 to 3 next to (C).
Add together the two subtotals (B and C) next to (D).
Use lines 1 to 4 to summarize your expenses for each event or activity. List theevent, the date and the amount spent on each event. (For example, the pizza partymight include pop, pizza, plates, cups, napkins and cookies.) If you have more thanfour lines of expenditures, enter them on the reverse side of the sheet and enterthe total on line 5.
What you enter here depends on the amount of money shown on line (B) Salessubtotal above.• If the amount on line (B) Sales subtotal is $0 through $4999.99, you will enter “0”
here.
• If the amount on line (B) Sales subtotal is $5000 or more, you will divide thatnumber by 17.67 and enter your answer on 6. Sales Tax. (This is the amount ofsales tax you must send to your county MSU Extension office with this form.)
Total revenuesfor year
Expenditures
Sales tax
Total the expenses on lines 1 to 6 above and enter them next to (E).Total expensesfor year
Table 2. Instructions for Completing the Annual Summary Financial Report.
22
Accountbalance at endof year
• Add together (A) Account balance at beginning of year and (D) Total revenuesfor year.
• Subtract from that total (E) Total expenses for year.
• Enter this amount next to (F).
Report Line Line Instructions
Does the amount in (F) Account balance at end of year agree with the endingbank statement balance on August 31?
• If yes, enter “0” next (G) and (H). Enter this amount next to (I).
• If no:
- Total the checks that you have written but that haven’t shown up on thebank statement and enter this total next to (G).
- Total the deposits that you have made but that haven’t shown up on thebank statement. Enter this amount next to (H).
- Add (G) to (F).
- Subtract (H) from (G) + (F).
- Enter this amount next to (I).
Note: If (F) still does not agree with the ending bank statement balance ofAugust 31, go back and check that you have included all of the year’s revenueand expenditures. This activity is essentially the same as reconciling a checkbook,except this report summarizes all financial activities.
Table 2, continued. Instructions for Completing the Annual Summany Financial Report.
Adjustedbalance
23
Annual Summary Financial Report
Taxable sales revenue (list eachseparately):
1.
2.
3.
Sales subtotal (add items 1-3 above)
Account balance at beginning of year:
For the Period September 1, _____ to August 31, _____Club or council name:
Grant and other nontaxable activitiesrevenue (list each separately):
1.
2.
3.
B
Nontaxable sales subtotal C
plus DTotal revenues for year (add sales andnonsales subtotals)
Expenditures
1.
2.
3.
4.
5.
6. Sales tax*
Total expenses for year (add lines 1-6above)
minus E
Account balance at end of year equals F
Add back checks that haven't shown upon bank statement
plus G
Subtract deposits that haven't shown upon bank statement
minus H
Adjusted balance (should agree withbank statement; include a clear copy ofbank statement that agrees with thistotal adjusted balance)
equals I
plus A
Prepared by: Date:Reviewed and approved by: Date:Approved by MSU Extension: Date:
*If the Sales Subtotal (B) is less than $5000, you don’t have to figure sales tax because your 4-H club or group owes no sales tax. Ifthe Sales Subtotal (B) is $5000 or more, divide the Sales Subtotal (B) by 17.67 to get the amount of sales tax your group must remit.
2014 20154-H St. Luce Hearts and Hands Club
Quilt Sale (9/9/14)
Holiday Card Sale (11/5/14)
Total from back
Quilt Project Grant (8/15)
Bake Sale (6/21/15)
Total from back
Computer Supplies
Project Sewing Supplies
Meeting Refreshments (10/10/14)
MSU Extension–4-H Exploration Days
Total from back
$400.00
56.00
167.00
623.00
$250.00
119.00
15.00
384.00
$1636.73
$1007.00
$225.63
66.57
4.59
900.00
33.16
–0–
$1229.95
$1413.78
–0–
–0–
$1413.78
Charisse James
Mitchell EllsworthMargrit Morgan
September 5, 2015
September 8, 2015
October 5, 2015
EIN: 00-0000000
Figure 14. Sample of Completed Annual Summary Financial Report.
24
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.
Appendices: Blank Forms
The following pages contain blank copies of the forms mentioned inthe preceding pages. Please make photocopies of these forms asyou need them, and then complete them.
The blank forms found here are:
• Appendix A: Annual Summary Financial Report
• Appendix B: County 4-H Club Inventory Record
• Appendix C: County 4-H Fund-Raiser Application
• Appendix D: County 4-H Fund-Raising Report Form
• Appendix E: Dues Form
• Appendix F. Monthly Treasurer’s Report
• Appendix G: Payment Voucher
• Appendix H. Record of Club/Group Finances
• Appendix I: SS-4
26
Annual Summary Financial Report
Taxable sales revenue (list eachseparately):
1.
2.
3.
Sales subtotal (add items 1-3 above)
Account balance at beginning of year:
For the Period September 1, _____ to August 31, _____Club or council name:
Grant and other nontaxable activitiesrevenue (list each separately):
1.
2.
3.
B
Nontaxable sales subtotal C
plus DTotal revenues for year (add sales andnonsales subtotals)
Expenditures
1.
2.
3.
4.
5.
6. Sales tax*
Total expenses for year (add lines 1-6above) minus E
Account balance at end of year equals F
Add back checks that haven't shown upon bank statement
plus G
Subtract deposits that haven't shown upon bank statement
minus H
Adjusted balance (should agree withbank statement; include a clear copy ofbank statement that agrees with thistotal adjusted balance)
equals I
plus A
Prepared by: Date:Reviewed and approved by: Date:Approved by MSU Extension: Date:
*If the Sales Subtotal (B) is less than $5000, you don’t have to figure sales tax because your 4-H club or group owes no sales tax. Ifthe Sales Subtotal (B) is $5000 or more, divide the Sales Subtotal (B) by 17.67 to get the amount of sales tax your group must remit.
EIN:
27
Mic
hig
an S
tate
Un
iver
sity
Ext
ensi
on
Co
un
ty 4
-H C
lub
Inve
nto
ry R
eco
rd4-
H C
lub
Nam
e D
ate
Clu
b L
ead
er C
om
ple
tin
g In
ven
tory
Rec
ord
Yea
rP
urc
has
e P
rice
/Y
ear
Item
Des
crip
tio
nQ
uan
tity
Item
Lo
cati
on
Pu
rch
ased
Est
imat
ed C
ost
Dis
card
edW
hy
Dis
card
ed
28
County 4-H Fund-Raiser Application
You must complete and return this form to:
Staff name:
Address:
at the County Extension Office for approval before
any fund-raising activities can be held.
What is the proposed fund-raising activity?
When is the proposed fund-raising activity to take place?
Where is the proposed fund-raising activity to be held?
What is the fund-raiser’s educational value to the members?
Proposed starting date of the activity: Time:
Expected ending date of the activity:
Club name:
Address:
Phone:
Person making request: Phone:
For Office Use Only:
Approved Date Staff Signature
29
County 4-H Fund-Raising Report Form
Complete and return this form to the____________________County MSU Extension Office
within 10 business days after the approved fund-raising activity is held.
Return to:
Staff Name:
Address:
What was the approved fund-raising activity?
Where and when did the approved fund-raising activity take place?
Income from approved fund-raising activity $
Expenses from approved fund-raising activity $
(please list general expenses)
Profits from approved fund-raising activity $
Club name:
Address:
Phone:
30
Mem
ber
's N
ame
Dat
eJo
ined
Dat
e an
d D
ues
Pai
dAm
ount
of D
ues
to B
e P
aid
Du
es F
orm
Tota
l
31
Club/Group name
Monthly Treasurer's Report1. State the beginning balance:
Balance:Date:
2. Indicate money received:
amount $ for what purpose
amount $ for what purpose
amount $ for what purpose
Total received: $
3. State the expenses:
$ to
for what purpose
$ to
for what purpose
$ to
for what purpose
Total expenses: $
4. Indicate closing balance:
Date: Closing balance: $
If the club or group has a checking account, do the following:
Add back checks that haven't shown up on the bank statement plusSubtract deposits not showing up on bank statement minusAdjusted balance should agree with bank statement equalsInclude clear copy of bank statement that agrees with the total adjusted balance, directlyabove.
Prepared by: Accepted by:
Date:
Treasurer's signature President's signature
Date:
Please photocopy as needed
32
App
rove
d:
Dat
e:
Dat
e:
Che
ck n
umbe
r:D
ate:
Pre
side
nt's
sig
natu
re
Sec
reta
ry's
sig
natu
re
By:
Pay
men
t Vo
uch
er
4-H
clu
b/gr
oup
nam
e
Dat
e:
Pay
to:
(Cop
y of
bi l l
or
stat
emen
t m
ust
be a
ttach
ed.)
Pro
ject
:Ite
ms
purc
hase
d:A
mou
nt:
App
rove
d:
Dat
e:
Dat
e:
Che
ck n
umbe
r:D
ate:
Pre
side
nt's
sig
natu
re
Sec
reta
ry's
sig
natu
re
By:
Pay
men
t Vo
uch
er
4-H
clu
b/gr
oup
nam
e
(Cop
y of
bi l l
or
stat
emen
t m
ust
be a
ttach
ed.)
Pro
ject
:A
mou
nt:
Dat
e:
Pay
to:
Item
s pu
rcha
sed:
33
Rec
ord
of
Clu
b/G
rou
p F
inan
ces
Cas
h P
aid
Ou
tC
ash
Rec
eive
dB
alan
ce
Dat
eF
rom
Wh
at S
ou
rce
Am
ou
nt
Fo
r W
hat
Pu
rpo
seB
alan
ce a
ten
d o
f ea
chen
try
Am
ou
nt
Bal
ance
car
ried
over
from
pre
viou
s pa
ge$
Bal
ance
car
ried
over
to
next
pag
e$
34
4-H Club (educational)X
savings/checkingX
2704
NonprofitX
35
IndexAcknowledgments ................................................ 2Account (bank) ..................................................... 5
EIN required .................................................... 5Groups without ............................................. 13Setting up ......................................................... 5Signatories ........................................................ 5
Annual Summary Financial Report ...................... 18How to complete it ....................................... 20Other uses ..................................................... 18What is it ........................................................ 18Who must complete ...................................... 18Why is it important ........................................ 18
Appendices .......................................................... 25Annual Summary Financial Report ................. 26County 4-H Club Inventory Form ................. 27County 4-H Fund-RaiserApplication Form ........................................... 28County 4-H Fund-Raising Report Form ........ 29Dues Form .................................................... 30Monthly Treasurer’s Report .......................... 31Payment Voucher .......................................... 32Record of Club/Group Finances .................... 33SS-4 ................................................................ 34
Approving Bills ..................................................... 10Audit .................................................................... 17Bills ...................................................................... 10
Approving ...................................................... 10Paying ............................................................. 11
Check Register .................................................... 12Checks ................................................................ 11
How to write ................................................. 11Versus Cash ................................................... 11
County 4-H Club Inventory Record ................... 20County 4-H Fund-Raiser Application .................. 28County 4-H Fund-Raising Report Form .............. 29Deposits .............................................................. 10
Preparing ....................................................... 10Disbanded Group’s Treasury .............................. 14Disbursing Money ............................................... 10
Approving bills ................................................ 10Complaints about .......................................... 13Disbanded group’s treasury ........................... 14Keeping records ............................................ 12Paying bills ...................................................... 11
Dues Form ............................................................ 9EIN (Employer Identification Number) ................ 5
How to apply ................................................... 5Needed to set up a bank account ................... 5
Financial Planning .................................................. 5Budget .............................................................. 5
Financial Record Review ..................................... 20Financial Reporting .............................................. 17
Annual Summary Financial Report ................. 18County 4-H Club Inventory Record .............. 20Financial record review ................................. 20General information ...................................... 17IRS Form 990 ................................................. 20Monthly treasurer’s report ........................... 18On annual activity of less than $2500 ............ 18On annual activity of more than $2500 ......... 18Submit to county upon request ..................... 18Table of reports ............................................. 17
Forms .................................................................. 25Annual Summary Financial Report ................. 26County 4-H Club Inventory Form ................. 27County 4-H Fund-RaiserApplication Form ........................................... 28County 4-H Fund-RaisingReport Form .................................................. 29Dues Form .................................................... 30Monthly Treasurer’s Report .......................... 31Payment Voucher .......................................... 32Record of Club/Group Finances .................... 33SS-4 ................................................................ 34
Fund-Raising .......................................................... 5Games of chance ............................................. 7Review and approval of ................................... 7Use of funds raised .......................................... 7
Guiding Principles (Michigan 4-H YouthDevelopment’s) .................................................... 1Handling Money .................................................... 8Introduction .......................................................... 1
Acknowledgments ........................................... 2Michigan 4-H Youth Development’sGuiding Principles ............................................. 1Michigan 4-H Youth Development’sMission Statement ........................................... 1
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
36
Michigan 4-H Youth Development’sPhilosophical Statement ................................... 1
IRS Form 990 ...................................................... 20Michigan 4-H Youth Development’sGuiding Principles .................................................. 1Michigan 4-H Youth Development’sMission Statement ................................................. 1Mission Statement (Michigan 4-H YouthDevelopment’s) .................................................... 1Monthly Treasurer’s Report ............................... 18
Monthly Treasurer’s Report Form ................ 31Noncash donations ............................................... 8
How to acknowledge ...................................... 8Officer (about being) ............................................. 3Overview .............................................................. 1Paying Bills ........................................................... 11
Checks Versus cash ....................................... 11Payment vouchers ......................................... 11Writing checks ............................................... 11
Payment Voucher ................................................ 32Receipts ................................................................. 8
For dues ........................................................... 8For fund-raisers ............................................... 8
Receiving Funds ..................................................... 8Acknowledging noncash donations ................. 8Bank deposits ................................................. 10Receipts ........................................................... 8
Record Keeping .................................................. 12For disbursements ......................................... 12For groups without bank accounts ................ 13Maintaining the check register ....................... 12Record of Club/Group Finances .................... 13
Record of Club/Group Finances ......................... 33Reports ............................................................... 17
Annual Summary Financial Report ................. 18County 4-H Club Inventory Record .............. 20Financial record review ................................. 20General information ...................................... 17IRS Form 990 ................................................. 20Monthly treasurer’s report ........................... 18On annual activity of less than $2500 ............ 18On annual activity of more than $2500 ......... 18Submit to county upon request ..................... 18
Sales Tax .............................................................. 14FAQs .............................................................. 16Determining need to pay flowchart .............. 15Making purchases without paying .................. 14
SS-4 ..................................................................... 34Treasurer ............................................................... 4
About being ..................................................... 4Responsibilities ................................................. 4
Use (of this book) ................................................. 3County staff ..................................................... 3How it should be used ..................................... 3By parents ........................................................ 3By treasurer ..................................................... 3By volunteer leaders ........................................ 3Who should use it ............................................ 3
MSU is an affirmative-action, equal-opportunity employer. Michigan State University Extension pro-grams and materials are open to all without regard to race, color, national origin, gender, gender identity,religion, age, height, weight, disability, political beliefs, sexual orientation, marital status, family statusor veteran status. Issued in furtherance of MSU Extension work, acts of May 8 and June 30, 1914, incooperation with the U.S. Department of Agriculture. Thomas G. Coon, Director, MSU Extension, EastLansing, MI 48824. This information is for educational purposes only. Reference to commercial prod-
ucts or trade names does not imply endorsement by MSU Extension or bias against those not mentioned. The name 4-H and the emblemconsisting of a four-leaf clover with stem and the “H” on each leaflet are protected under Title 18 U.S.C. 707. 7R-23P-3M-06:07-JP-RM