Finance - CMC Treasurer (Revised January, 2023)
Overview of Treasurer’s responsibilities:
- Pay bills, deposit receipts and record these in the Club’s books
- Oversee use and payment of Club credit cards (First Bank Mastercard and Home Depot card)
- Prepare quarterly financial statements
- Manage checking, investment and Venmo accounts
- Sales tax reporting – quarterly for sales tax due and semiannually for sales tax refund
- Annual financial review conducted pursuant to the bylaws
- Annual budget – preparation and, after approval by Council, presentation at Annual Meeting
- Annual IRS filing
- Provide reports in support of grants
- Maintain the Club’s financial records. Our books are maintained using the online accounting system aplos. The filing system for correspondence and documentation maintained by the Treasurer are the folders in the email account cmclubtreasurer@gmail.com.
These responsibilities are accomplished as described below:
Daily/Weekly:
Pay bills - Requests for reimbursement are received primarily by email. Proper approval is required and math is checked on all bills and requests for reimbursement.
Accounts are maintained with several vendors who bill the Club directly. A list of these vendors and the Club members authorized to charge expenses is maintained,
and updated periodically by the Councilor for Trail Maintenance
APLOS is the Club’s accounting system. All bill payments and reimbursements should be recorded when payment is made.
PayPal Deposits – The Treasurer receives emails from PayPal when a dues payment or a contribution is made utilizing the Club’s website. Funds accumulating in our PayPal account should be transferred to the checking account weekly. These transfers are recorded in aplos. Once a month, PayPal automatically charges our bank account a $30.00 monthly fee.
Venmo Deposits – Similar to PayPal, monies received through Venmo should be transferred to our bank account at least weekly. Venmo transactions are infrequent,
so transferring them when notification is received is suggested.
Bank Deposits – Checks – Checks are received from the membership data base manager who picks up the mail from our P.O. Box weekly. A copy of the deposit slip
identifying the individual deposits should be made and kept in the appropriate email folder. Deposits should be recorded in APLOS.
Monthly:
Sales Tax - CMC pays sales tax for books and patches sold other than for resale. The sales tax is included in the price of the item sold. An algebraic formula is utilized (e.g., $15.00 divided by 1.07) to determine the sales tax amount. Books also are sold to businesses for resale, with sales tax not being paid on these sales.
Monthly Bank reconciliation - The bank account should be reconciled monthly.
First Bank Credit Card – The credit card must be paid monthly, and the charges recorded appropriately in aplos. The credit limit currently is $7,500. The card also has a 1% cash back feature. This balance should be checked periodically and the funds transferred to the checking account. Home Depot Credit Card – The Councilor for Trail Maintenance and the Facilities Manager are the card holders for this account. Processing of payments is the same as for the First Bank credit card.
Quarterly:
Remit sales tax – See Sales Tax above. Form E-500 must be filed quarterly, with any payment due being made electronically.
Quarterly Financial Statement-- The Reports section of APLOS is used to prepare the quarterly financial statement. This is prepared on an Excel schedule, and when
finalized it is converted to a pdf and distributed to Council members.
Post Financial Statements on web site - Provide to Councilor for Technology as anemail attachment (pdf)
Semiannually:
Sales Tax Refund - An Excel spreadsheet "CMC Sales Tax Worksheet" should be updated every time a bill is paid that includes a sales tax charge. Twice a year Form E-585 and E-536R needs to be filed to claim the refund.
Annuallly:
- Form 990N – This IRS form must be filed annually, on the IRS website. It is not due until May 15, but it should be filed promptly after year-end. No financial information is needed; it is a “postcard” return.
- Post Office Box Renewal - A payment is due annually for renewal of our Post Office box. An email reminder is received in June each year.a
- Insurance – The CMC President is responsible for providing information to the insurance broker on club activities. The Treasurer’s responsibility is to pay the bill.
Our insurance agent sends email reminders to the President and Treasurer.
- Annual Budget - The Annual Budget must be approved by Council and made available to membership two weeks prior to the Annual Meeting. The Treasurer
prepares a draft of the budget after consulting Council Committee chairs and the Officers. It is reviewed and approved by Council at our October meeting. After
approval by Council, it is distributed to membership along with notice of the annual meeting. The budget approved at the Annual Meeting of Members should be entered into aplos in January.
- Annual Dinner - The Treasurer is responsible for depositing and recording payments received for registrations, and for paying the final bill and any advance deposits that are required.
- Treasurer Operations Manual - The Treasurer should review the manual each year and make any needed updates.
- Change in Officers – When there is a change in President or Treasurer, First Bank,First Bank Investments and the Endowment Fund at Community Foundation of
Western North Carolina will need to be notified. New First Bank credit cards will need to be issued (President, Treasurer).
- Review of Treasurer Records - The President and Vice President will perform an annual review of the Club’s books and records that are maintained by the Treasurer. The review needs to be completed prior to the annual meeting, with the results of the review being reported at the meeting. Below are the recommended procedures for the review.
Annual Review Procedures:
Objective: To ensure the Club’s financial statements properly reflect all of its operations for the preceding calendar year, and that all of the Club’s assets as of
December 31 are properly invested and accounted for.
Review procedures:
Balance sheet – documentation is provided by the Treasurer for all bank and investment accounts supporting the total fund balance at December 31 st as reported in
the Club’s financial statement. Any accounts receivable are explained as is the inventory of books and any other items (100 th Anniversary hats and t-shirts).
Cash receipts and disbursements – a sample month is randomly selected by the reviewers. The Treasurer provides all supporting documentation for that month for
each receipt in the bank statement, and disbursements both in the checking account and in the credit card statement. Further detail for any items may be requested by the reviewers.
Endowment Fund
In 2022 the Club established an Endowment Fund by transferring $30,000 from its General Fund surplus to an account with The Community Foundation of Western North Carolina. This permanently sets aside these monies to be invested and to grow, with only the annual income being available to the Club to be spent. The Fund also grows by receiving additional contributions from Club members and others. A team called the Endowment Fund Committee, consisting of the Treasurer, President, Past President and Vice President, has been established to manage the Fund. The Endowment Fund Committee will make recommendations that will be voted on by the Council for the following:
- Investment portfolio decisions (the Community Foundation’s Socially Responsible Fund was chosen),
- Any additional contributions to be made to the Fund from the Club‘s General Fund surplus,
-Disbursements of the annual spendable income. Potential expenditures will be solicited from Council members in advance of any recommendations by the Committee. It is not required that the income be distributed; it can be left in the Fund to be reinvested.
The Socially Responsible Fund utilizes an environmental, social & governance investment mandate. Companies represented in the portfolio must exhibit positive attributes in terms of environmental responsibility, strong corporate governance and be positive societal contributors to their industries and communities. A portion of the fixed income allocation in this Fund is directed to mission-related investments that pursue positive returns while providing a community benefit as well.
The overall benefits from CMC’s establishment of the Endowment Fund are:
Benefits to CMC:
. Professional investment management with a long-term view
. Ensures CMC’s legacy for another 100 years
. Only income can be distributed; principal of fund continues to grow
. Fund balance in excess of $25,000 can be withdrawn in a financial emergency
Benefits to CMC Members and other Donors:
. Numerous different contribution options for donors to use
. Future giving plans can be accomplished now
. Professionals available to assist with these plans for any items may be requested by the reviewers.