2019 Council of Leaders District Treasurer’s Workshop

1. 2019 Council of LeadersDistrict Treasurer’s Workshop Lisa Patterson Pilot International Director

2. AGENDA • Responsibilities of District Treasurer • Receiving and Depositing Funds • Reimbursement • District Budget • COL and PI Convention • District Convention/Fall Council or Workshop • IRS 990 Forms • 501c4 and 501c3 • New Clubs

3. Responsibilities • DAC designates a bank for district account. • Obtain signature cards and authorized signatures • Most banks will require a copy of the minutes stating the names of the new officers. • Treasurer and Governor will sign all checks; in an emergency, the Gov. Elect may sign for the Governor or Treasurer.

4. Responsibilities Con’t • Verifies all bills and expenses (receipts must be attached). Following approval by Governor and Governor Elect, issues checks. • All district financial records will be available for review at each DAC meeting. • Maintains in the district financial records an itemized list of amount received from each club.

5. Responsibilities Con’t • Serves as a member of the District Convention Committee and performs the “Duties and Responsibilities of the District Treasurer. • Prepares a working draft of the proposed district budget, based on previous records of income and expenses for the DAC to discuss. The Treasurer presents the budget to the convention body for approval.

6. Responsibilities Con’t • Provides a copy of the proposed district budget, including convention budget, to all attendees at District Convention. (It should be emailed by the Governor to all clubs 30 prior to Convention.) • Furnishes quarterly statement of receipts and disbursement to clubs, ECR and PI Treasurer. • Serves as Vice Chair of the Registration Committee for District Convention and Fall Council. ***Registration checks may not be mailed to anyone other than the Treasurer. Others are not bonded.

7. Responsibilities Con’t • Prepare and distribute an itemized statement of convention receipts and disbursements to DAC, clubs, ECR and PI Headquarters. • Any funds remaining after all authorized expenses are paid revert to the district treasury. • Order Past Governor’s Pin/Bar. • Is responsible for collection of funds and purchase of gifts, if it is the policy of the district to present gifts to the retiring DAC/DEC.

8. Responsibilities Con’t • Files Federal Forms by Nov. 15. Also files annual incorporation record with the state or province (in United States – Secretary of State) and pays necessary fees. • Be sure to remind clubs to file.

9. End of Year Responsibilities • Deliver the supplies, files, and official material for the office to succeeding Treasurer within 15 days following the expiration of the term of office. • Deliver the District Treasurer’s books to the audit committee by July 31. • Prepare and distribute to DAC/DEC, Clubs, and ECR (both years) your final report within 30 days after Pilot year ends.

10. Bank procedures • Receiving Funds • Depositing Funds • Reimbursement

11. Receiving Funds • Maintain a cash receipt journal. This should include the date, name, amount, and purpose. - Two people should count the cash and sign the journal. This protects both you and the person paying. - Provide receipts for all cash payments.

12. Depositing Funds • Deposit all monies in the bank ASAP. You should not hold on to deposits longer than 2 weeks. • Enter deposit in your computer program. Make sure you split your entry showing all payees, amounts, and what deposit is for. • Enter deposit in check book. It is not necessary to show splits here. • Keep a copy of all deposit slips.

13. REIMBURSEMENT • Pilot/person requesting reimbursement submits expense voucher and receipt to Governor. • Governor approves expense and sends to Governor Elect. • Governor Elect approves expense and sends to Treasurer. • Treasurer writes check and signs check before sending check to the Governor. • Governor signs check and mails to Pilot.

14. REIMBURSEMENT CON’T • Governor Elect may sign in case of emergency. • Enter check in computer program. Include date, check number, payee, amount, and purpose. • DO NOT write checks until vouchers are completed. • DO NOT reimburse anyone without a receipt. • DO NOT pre-sign checks.

15. District Budget Revenue Expense Income Total Dues (_____members x $____) ______ Interest Income ______ Fall Council Registration Fees ______ District Convention ______ Registration Fees ______ Saturday Luncheon (Partials) ______ Saturday Banquet (Partials) ______ Sunday Breakfast ______ Total Revenue ______

16. District Budget EXPENSES Anchor Convention PI Convention DEC Planning Meeting DEC/ Appointees Meeting District Convention Fall Council - Conference & Planning Other Expenses

17. Estimated Expenses Expenses Income Total DAC Meetings ______ Fall Council ______ District Convention ______ International Convention ______ Anchor Convention ______ Other Expenses ______ Total Estimated Expenses _______

18. Approved Expenses – Paid by PI for District Officers • Transportation for authorized activities in the district • Visits to clubs • Presentation of Charter to New Pilot Club or New Anchor Club • Governor to attend Pilot International Annual Convention & Leadership Conference – transportation, registration fee, hotel (one half double room)

19. District Budget Items for DAC members - Approved Expenses • For District Convention/Fall Council • Reimbursement for transportation • 75% of current IRS rate for mileage • Most economical plane fare • Car mileage not to exceed most economical plane fare • Refer to your district standing rules or policies and procedures regarding transportation.

20. District Budget Items for DAC members District Convention and Fall Council/Workshop • Registration Fee • Hotel, if rooms are not complimentary • One half double convention rate • Refer to your district standing rules and/or policy and procedure manual regarding how rooms are assigned. • Meals – (less those covered by registration) • Hotel for 2 or 3 nights, depending on length of your convention

21. District Budget Item for Executive Committee Representative (ECR) • Registration fee (only charge the district budget meals) • Hotel for 3 nights • Meals (less those covered by registration *** District convention only.

22. Items to Include in Budget Con’t • Travel, hotel and meals (per district policy) for DAC members to attend meetings of the DAC and DEC • District Coordinator expenses (per district policy) • Cost for the preservation of district records (file folders, file boxes, USB drives)

23. Items to Include in Budget Con’t • Stationery – for official correspondence • Expenses of greeting card, gifts, awards etc. • Postage – for official correspondence relating to meetings, conventions, budget, bulletins, greetings, notes, etc. • Bond for Treasurer • Copying of bulletins and minutes • Computer and related expenses

24. Expenses Incurred by Governor Elect and Lt. Governors for PI Convention and Leadership Conference to Include in Budget • Registration fee • Meals en route and meals not covered by registration fee. • Hotel ( based on double occupancy rate) • Reimbursement for transportation (most economical) **Only the Governor Elect and Lt Governor(s) are required to attend at district expense. Districts usually provide partial or all expenses of the District Treasurer and District Secretary when they attend.

25. Desirable Items if Funds Permit • PI Convention expenses for PIFF District Representative • DAC Travel to District Workshops, if held • District Publication • Past Governor’s Pin or Bar and/or Past Governor’s plaque • District Division Expenses for Convention (coordinators registration)

26. Convention/Fall Council Budget Integral part of the annual budget and should be approved with the district budget every year DistrictConvention and Fall Council should be self supporting In the event any APPROVED items are overspent, these shortages will be paid by the District funds, and are not the responsibility of any club and/or Pilot

27. Items Included in Convention Budget * Meals including tax and gratuity * Postage, stationery * Social activities (breaks, receptions, etc.) * Meeting room rental * Program participants meals and hotel, if necessary) * Memorial Service * Badges * Folios or envelopes * Printing of programs * Decorations – costs should be kept to a minimum

28. Convention Budget includes the following ONLY if provided in the District Standing Rules Paid entertainment Favors Paid speakers/honorariums

29. Convention Budget DOES NOT include the following: Expenses for personal guests or family members Gifts for district officers and ECR Registration fee for any member of the convention host club(s) Local guests unless authorized and approved by the DAC/DEC or as referenced in Standing Rules/Policies

30. IRS 990 Forms The appropriate 990 form needs to be filed by Nov. 15. • New registration on IRS website for 990 N • Gross receipts <$50,000 – file 990N or e-postcard • Gross receipts <$200,000 and total assets <$500,000 – file Form 990 or 990 EZ • Gross receipts >$200,00 and total assets >$500,000 file form 990 • Gross receipts – ALL funds received

31. 501c4 • Non-profit organizations • Tax exempt • Clubs that were a part of the PI original 501c3 application are now part of PI’s 501c4 subgroup 0669 (if not revoked by IRS) • Clubs and districts that have requested to join the c4 subgroup • Clubs/districts must file the 990 annually

32. 501c3 • Many clubs have filed individually and received 501c3 status • If you are currently a 501C4, filing changes were made in 2017 for 501c3 • 1023 Long Form • Can no longer use 1023EZ online application

33. NewClubs Must incorporate within one year Obtain Employment Identification Number (EIN) from IRS and send to HQ To obtain a 501c4, file form 8976 within 60 days of formation (cost $50). When the club receives the determination letter, they will then request to be added to PI’s tax subgroup, 0669. To obtain the 501c3, may use the IRS 1023 EZ online application (cost $275) www.irs.gov

34. Donations Pilot International is a 501c3. If a 501c4 club has donors who require a 501c3 for their donation, they may use the Pilot International Pass Through Grant process. Filing All clubs must file a 990 under their own EIN by November 15 each year. Several clubs are revoked each year for not filing for three straight years.

35. Fraudulent Emails Do not pay any bill or Reimburse anyone without an invoice or voucher. There are fraudulent emails being sent requesting payment to a vendor. Make sure the email is valid!!!!!

36. Here’s to a GREAT YEAR!