Mississippi 4-H Club -- Treasurer's Record Book

About Being An Officer

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About Being Treasurer

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Treasurer's Responsibilities

• I will inform the bank in which my club's funds are deposited that I am the new treasurer. I will sign the appropriate forms so I can write checks drawn on the account.
• I will handle all financial matters for my 4-H club.
• I will keep an accurate record in the treasurer's book of how all funds are used.
• I will deposit all funds my club earns or receives as soon as possible after receiving them.
• I will promptly pay all of the club's bills as directed by the members and approved by the president.
• I will prepare and present a summary of income and expenses at each meeting. I will also report the current balance of all accounts.
• I will complete the Annual Summary Financial Report at the end of the club year and submit the report to my county Extension office.

Handling Money

      A treasurer in a privately owned company is responsible to the other officers of the company and to the owners or stockholders for managing and controlling the assets of the company. These assets include cash, bank accounts, buildings, land, and equipment. The treasurer of a 4-H club is responsible to the other officers, to the other members, the adult leaders, and the public. (Most clubs just have cash or bank accounts rather than land, buildings, and equipment to manage.)

      You're in charge of "keeping the books" such as your club's receipt book, checkbook and check register, payment vouchers, and bank statements. Public groups call for high standards of accountability and integrity. You can meet the high standards required of a 4-H club treasurer by studying and following the money-handling methods found in this publication for treasurers. These standards apply whether a group has 25 cents or $2,500 in its treasury.

      Conflicts may arise if money is not handled carefully and accurately. Protect yourself and your 4-H club from conflict by being careful, responsible, and accurate when handling the club's finances.

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Receipts

      Get your 4-H club a receipt book with numbered, two-part receipts, which are available from many office supply stores. If you make a mistake and have to void a receipt for any reason, mark both copies, staple them together, and keep them with the treasurer's records (see figures 1, 2, 4 for sample receipts).

Receipts For Dues

      You don't need to write an individual receipt for each person paying dues. Just fill out the "Dues Form" (figure 3), total the amount of dues paid for the meeting, and write one receipt for the total amount. On the receipt, write "club members" in the "From" blank and "Dues" and the meeting date in the "For" blank (see figures 2 and 3).

Receipts From Fund-Raisers

      If your 4-H club holds a fund-raiser such as a bake sale or car wash, you don't need to write a receipt for each person buying a cookie or having a vehicle washed. You or the shift leader do need to write one at the end of each shift or at the end of the day. Each group of workers must account for the money it received.

      Two people need to count the money, agree on the amount, and turn the money over to you as club treasurer. It's a good idea for you to verify the amount (recount the money) in the presence of the people giving you the money. Provide them with receipts for the amounts they gave you (figure 4).

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Bank Deposits

      Keep these things in mind when making deposits:

• Deposit all funds promptly. If your club receives more than $10 at any time, deposit the money within 3 days.
• Endorse and deposit checks immediately when you receive them.

      Total the receipts you have written since you made the last deposit; compare that amount with the amount of cash, coins, and checks you intend to deposit. The two figures should agree--if they don't, repeat the process. When the two figures agree, prepare a deposit ticket or slip similar to figure 6. If your club has a checking account, deposit slips are usually are at the end of each pad of checks. You can pick up deposit slips in the bank lobby.

      Follow these steps when filling out a deposit ticket or slip:

1. Date the deposit slip.

2. Fill in the amount of currency (bills) and coins you are depositing.

3. List each check separately, by number and its amount; use the back of the deposit slip, if necessary.

4. Record the deposit in the Checking Account Register (see figure 9).

5. Complete a duplicate of the deposit slip, and keep the duplicate with the bank receipt.

APPROVING AND PAYING BILLS

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Checks

1. Use ink.

2. Never erase a mistake. If you make a mistake, write "VOID" on the spoiled check and start a new one. Keep a voided check; don't destroy it.

3. Write current date on the check.

4. Start writing the name of the person or business to whom the check is payable as close as possible to the "pay to the order of" statement.

5. Leave as little space as possible between the figures and words when filling in the amount lines. This helps prevent someone else from changing a $1 check, for example, into a $100 or $1,000 check.

6. Begin writing the amount at the extreme left of the amount line. Be sure the written amount agrees with the numeric amount. Avoid writing checks for less than $1, but if you have to, start the "dollars" line by writing the word "Only" and then the amount.

7. Sign the check with your authorized signature, which is the same way you signed the signature card at the bank when you became treasurer. (One of the two adults listed on the account must also sign each check.)

8. If a check written on the club's account is lost, immediately notify the customer service department of the bank.

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Payment Vouchers

      After you write a check to pay a bill, attach the invoice (bill) or receipt to the payment voucher and finish filling out the payment voucher (see figure 8).
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Maintaining The Check Register

1. Write the check number and the date it was written 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. Then subtract the check amount from the remaining balance on the line above and enter the new balance immediately below.

4. You can use the "T" column at the end of each month when you reconcile the account against the bank statement. Use this space to check off the checks and deposits that have cleared the bank (this information comes from the bank statement or the checks that have been returned to you).

5. The "Fee, if any" column is the place to list any fees the bank has charged your club for cashing or purchasing checks or for preparing an account statement. Any fees will appear on the account statement. Enter the fee amount and subtract it from the account balance.

6. Record the amount of any deposits in the "deposit/credit" column. Add the deposit amount to the account balance on the line above, and record the new account balance straight across.

• Check 1152 for $10.34 was written on May 24 to Fairway Grocery.
• A $14.56 deposit was made on May 27.
• A $3 bank statement fee was charged to the account on May 30.

The Treasurer's Report

      After the club members have reviewed your treasurer's report and verified that it is reconciled with the bank statement, a member moves to accept the treasurer's report. The motion is seconded, and the club votes on the motion. If the motion is approved, the secretary enters a copy of the treasurer's report into the minutes. The secretary keeps the bank statements, payment vouchers, annual summary financial reports, and all receipt books in the club's permanent records.

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Guidelines for Clubs without Checking or Savings Account

      Another difference is that your monthly treasurer's report leaves out the bank account reconciliation. You'll also use the "Record of Club Finances" (see figure 11) instead of a check register. All other financial rules and guidelines for clubs without bank accounts apply to clubs with bank accounts.

1. In the "date" column, write the date the transaction took place. In the "For What Purpose" column, write to whom the payment was made.

2. Enter the cashier's check, money order, or cash payment amount in the "Payment/debit" column. Then subtract the amount of the payment for the remaining balance on the line above, and enter the new balance immediately below.

3. The "fee (if any)" is the place to list costs for purchasing checks or money orders. Record fees in the "Payment/debit" column. Subtract the fee amount from the balance on the line above.

4. When the club receives money, record the amount in the "Deposit/credit" column. Add the amount to the balance on the line above, and enter the new balance immediately below.

Completing the Annual Summary Financial Report

      The Annual Summary Financial Report (see figure 12) fulfills several needs: It creates an open, public record of each group paying sales tax, and it fulfills the audit concerns of Mississippi State University. The Annual Summary Financial Report is how Extension-related organizations help the university fulfill its obligation of fiscal accountability to the residents of Mississippi.

      The Annual Summary Financial Report is due in your county Extension office by September 1 of each year. Even if your club doesn't handle any money during the year, you must still submit this report. Just mark a zero in the blanks, sign and date the form, and turn it into the 4-H office. The report also can be adapted for use as a monthly Treasurer's Report for 4-H clubs. Take a few minutes to read the directions that follow to see what information you need before you begin.

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How To Complete the Annual Summary Financial Report

1. The Annual Summary Financial Report sums up your club's financial activities during the program year (September 1 to August 31). On the first two lines, fill in the dates covered by the report and the name of your club.

2. Account Balance at Beginning of Year (A). Enter the balance your club had on hand in a bank, savings and loan, or credit union, or in a safe place at home if your club doesn't have an account. If your club does have an account, this balance is the ending balance on the August statement.

3. Grants and Other Nontaxable Activities. This is the place to report income from a service such as a car wash, sale of tangible personal property less than $5,000, and nontaxable sales (such as candy or bake sales). List the event or activity, the date, and the total amount raised. Total the proceeds from these events, and enter the amount as Non-taxable Sales Subtotal (C).

4. Add together the two revenue subtotals (B and C), and enter the amount on the Total Revenues for Year (D).

5. Summarize the Expenditures for each event or activity. List the event, the date, and the amount spent on each event. (For example, the pizza party might include soda, pizza, plates, cups, napkins, and cookies.) Add together all the expenses for each event so there is only one line for each event.

6. Add together the expenses for the year, and write the amount on the Total Expenses for Year (E).

7. Add the Account Balance at Beginning of Year (A) and the Total Revenues for Year (D), then subtract the Total Expenses for Year (E). The total is the Account Balance at End of Year (F).

8. Now compare the Account Balance at End of Year (F) with the ending bank statement balance on August 31. If it doesn't agree, you need to add Checks That Haven't Shown Up on Bank Statement (G), and subtract Deposits That Haven't Shown Up on Bank Statement (H). If it still doesn't add up, go back and check that you have included all the revenues and expenditures for the year. This activity is essentially the same as reconciling a checkbook, except the report summarizes all financial activities.

Important Financial Reporting Information

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Financial Guidelines for Mississippi 4-H Clubs

      Clubs do not pay county, state, or national membership fees. Local clubs may choose to raise money for their club goals through fund-raising or dues or both. A club treasury is optional but necessary if funds are maintained for club use. Fund-raising is to benefit the total group and needs to be consistent with the county 4-H fund-raising policies. Fund-raising cannot be the main focus of 4-H group activities nor can it exclude any individual from participation. Clubs are expected to support the financial needs of the total group and, when possible, assist with participant costs in county, state, national, and international 4-H programs.

      The following guidelines are in effect to help 4-H clubs fulfill their responsibilities for handling funds:

1. Every 4-H club with a checking or savings account is required to have an Employer Identification Number (EIN). A 4-H club with money in a bank needs to apply for an EIN from the Internal Revenue Service using Form SS-4. Be sure to put "4-H" as the first word of your club name on the form and on your club bank accounts. This will speed up the application process and help ensure the IRS grants your club nonprofit status. The club needs to report its EIN to the bank and to the county Extension office. Clubs can be fined $50 by the IRS for failure to report an EIN.

2. The club treasurer must use this book, the Mississippi 4-H Club Treasurer's Record Book, to show cash received, where the money came from, and payments made, complete with check number, date, and purpose. If the club does not have a checking account but does have a savings account, purchase checks from a bank or credit union. For your protection as treasurer, record and maintain copies of these checks.

3. Make payments only in response to a formal written bill or invoice. The itemized invoice, clearly stating what was billed, with the check number and date of the check on it, will become a permanent part of the treasurer's records. This practice is important to protect the treasurer's reputation.

4. Some clubs prepare a budget for the year. A budget is a written plan for raising and spending money for a set period of time, usually one year. Since a budget is approved by the members of the club, it's not necessary to seek approval for payment of items already listed in the budget. If a club doesn't have a budget or items arise that are not part of the budget, each item needs to be presented to the members for approval before payment. This accomplishes two things: First, all expenditures of the club funds are made with the full approval of the club. Second, this is a great way for the club members to learn how money flows into and out of an organization.

5. Acknowledge all money received with a written receipt, preferably pre-numbered. The receipt needs to include the source of the funds (such as a car wash or cookbook sales), the date, and if possible the name of the person making the payments. These receipts are the back-up documentation for any bank deposits made. The receipts become a permanent part of the club records.

6. All bank statements, receipts, canceled checks, checkbooks, savings account books, and the Mississippi 4-H Club Treasurer's Record Book must be turned in to your county Extension office when requested by Extension staff. The 4-H youth agent or county coordinator can request periodic audits and have financial reports submitted annually to the state Extension office for review.

7. At least two adult leaders' names and the youth treasurer's name need to be on the bank account (with neither adult leader being a parent of the treasurer). Two signatures are required on each check issued. No 4-H staff member's signature may appear on any 4-H account belonging to a 4-H club.

8. The 4-H youth agent or county coordinator (before the event) must review and approve all fund-raising activities. All money raised using the 4-H name must be used only for 4-H activities. Because these funds are publicly accountable, they must not be used in any way to enrich individuals. This means that money may not be given out to individual club members or others and must be used to pay for educational programs, activities, workshops, or 4-H club supplies. Money may be transferred to fund county, state, or national 4-H programs.

9. Acknowledge donors in writing for any non-cash donations to clubs (for example, consumable donations of supplies or miscellaneous items). Keep a copy of the acknowledgment in the club treasurer's records. Accept non-consumable donations such as equipment or animals only if the club is prepared to accept the responsibilities of ownership, including care, maintenance, and insurance. Send written acknowledgment to the donor, and keep a copy in the club treasurer's records.

   The Internal Revenue Service requires a specific set of written documents be completed by the donor and the donee if a non-cash gift is valued at $5,000 or more. In such a case, consult a qualified attorney. Valuation of a non-cash donation is the responsibility of the donor, in consultation with his or her tax advisor and individuals qualified to appraise items of this type. It is not appropriate for a 4-H group, staff member, or volunteer to place a value on items donated. Donors cannot specify the individual recipient of cash or non-cash donations. Your club must not feel compelled to accept non-cash gifts. Contact the Extension agent responsible for 4-H youth programs whenever your club has questions about the appropriate action with respect to accepting and managing any donation.

10. Any 4-H club that disbands with money left in its account must turn over those funds to the county 4-H council or county Extension office. All property belonging to the club must be disbursed in the same manner. Club members may request that the money be used for a specific 4-H program within the club, county, or state. This request will be acted on by the county 4-H council in concert with the Extension agent responsible for 4-H youth programs at the time the club is dissolved. If a club divides itself, creating more than one recognized and properly registered club, the funds from the original club must be evenly disbursed in each club, based on membership.

11. The Extension agent responsible for 4-H youth programs must investigate the disbursement of 4-H funds by any club if a complaint is made by 4-H members or parents. Avoid issues of this nature by following guidelines in this publication. You can settle concerns quickly if your clubs have kept their books up-to-date and have followed these guidelines.

12. Clubs that do not have treasuries and do not handle any money need to mark zero on the Annual Summary Financial Report, sign and date the form, and turn it in to the county Extension office once a year.

Mississippi State University does not discriminate on the basis of race, color, religion, national origin, sex, age, disability, or veteran status.

Form 1019

Extension Service of Mississippi State University, cooperating with U.S. Department of Agriculture. Published in furtherance of Acts of Congress, May 8 and June 30, 1914. Ronald A. Brown, Director

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