FINANCE 101

1. FINANCE 101 Your guide to Finance

2. INTRODUCTION • As an org of La Salle, we are subjected to the rules and regulations of CSO (Council of Student Organizations) • The CSO implements specific protocol for document processing

3. INTRODUCTION TERMS AND DEFINITION • An organization would be entitled an Operational Fund by the university • This is a sum of money given by the University through S-LIFE to an organization, which is regulated by the CSO. • Each year, the university will give each organization an Operational Fund. Any excess funds remaining after each year in the OperFund will be given back to the university. • The CSO treasurer would be the one regulating the use of the Operational Fund.

4. INTRODUCTION TERMS AND DEFINITION • An organization also has its OWN money. The Working Fund represents the organization’s money made through fundraising activities, donations or solicitations. • Composed of two types of funds: • Depository Funds: deposited on the Accounting office • Petty Cash Funds: money held by the org treasurer for small expenses • Does not exceed P3000

5. DOCUMENTS • Different documents are made for different types of processes • Depending on the situation, document requirements may differ

6. DOCUMENTS • The different document types are: • List of Expense (LOE) • Petty Cash Fund (PCF) • Reimbursement (RM) • Cash Advance (CA) • Liquidation (LQ) • Direct Payment (DP) • Book Transfer (BT)

7. KNOWING THE DIFFERENT KINDS OF DOCUMENTS/PROCESSES

8. 1.) LOE – List of Expenses • This is a post-activity document required for all activities where expenses were incurred. • This document summarizes all the expenses incurred for an activity. • ONE ACTIVITY = ONE LOE (if there is/are an expense(s)). • If there is no expense, instead of a LOE, a No expense document is submitted

9. 2.) RM – Reimbursement Memo • Reimbursement is a procedure done when officers used personal money for expenses incurred for an activity. • This would mean that the treasurer would withdraw money from the Depository Fund AFTER the associated activity.

10. 2.) RM – Reimbursement Memo • Reimbursement for Venues, equipment rental, printing and transportation expenses are NOT ALLOWED • A Reimbursement Memo is submitted for activities involving Reimbursements

11. 3.) CA – Cash Advance • A Cash Advance is a procedure done to withdraw cash from the Depository Fund BEFORE the activity for to be made expenses • Cash Advances are NOT ALLOWED when withdrawing from the Operational Fund

12. 3.) CA – Cash Advance • A Cash Advance memo is submitted for activities involving Cash Advances • A Liquidation form is given to the treasurer after Cash Advance

13. 4.) DP – Direct Payment • Direct Payment is a procedure where the organization issues a check to the establishment to be paid for • Instead of withdrawing cash, the organization is given a check to be given to the establishment

14. 4.) DP – Direct Payment • A Payment Memo is submitted for activities involving Direct Payments • A Liquidation form is given to the treasurer after Cash Advance

15. 5.) LQ – Liquidation • Liquidation is a procedure done after a Cash Advance or a Direct Payment • The treasurer summarizes the actual expense incurred for the activity where the withdrawn cash or check was used for

16. 5.) LQ – Liquidation • CSO and the Accounting office would verify if the withdrawn money was put into its intended use • Excess money should be again deposited to the Depository Fund • A Liquidation form is filled up for activities involving Liquidation

17. 6.) BT – Book Transfer • Book Transfer is a procedure where funds are transferred from one account into another within the same institution • One example of this is when an organization pays for food expenses transacted with establishments within the university (e.g. La Casita) • A Book transfer memo is submitted for activities involving Book Transfer

18. 6.) BT – Book Transfer • Here are the establishments recognized for Book Transfer: • University Bookstore (MTO Bookstore) • Marco Polo Canteen (SPS Canteen) • AnimoCanteen • ZaideCafe (Z2 Café) • La CasitaCanteen • MRDO • Filtrex (Any Photocopier within the Campus) • IMS • Venue (Physical Facilities Office)

19. 7.) Petty Cash • Petty Cash is the funds held by the treasurer. This cannot exceed P3000. • A Establishment of Petty Cash should be first done. • Each expense taken from the Petty Cash should not exceed P100.

20. 7.) Petty Cash • To regain the money taken for expenses from the Petty Cash Fund, a process called Replenishment is done. • Replenishment “resets” the Petty Cash Fund. Cash will be withdrawn from the Depository Fund to compensate for the funds taken from the PCF.

21. OTHER DOCUMENTS • Working Fund Statement (WFS) - This is a summary of inflow and outflow of cash that an organization has incurred during a particular period, usually each term. This summarizes all the expenses and gains involving the Depository Fund and the Petty Cash Fund.

22. OTHER DOCUMENTS • Variance Statement - This is a document to be prepared at the end of a certain period so as to compare the projected revenues from actual revenues and budgeted costs from actual costs. • *revenue is the income before deducting the expenses

23. OTHER DOCUMENTS • Income Statement - This is a detailed report of the revenues and expenses that an organization has incurred during a fundraising activity.

24. OTHER DOCUMENTS • Payment Requisition Slips (PRS) • Requisition signify a deduction or taking of money from the organization’s funds. • PRS’s are commonly used for transactions or procedures involving withdrawal of money from an organization’s funds.

25. OTHER DOCUMENTS • Deposit Slips – forms submitted signifying depositing of money into the organization’s funds.

26. OTHER DOCUMENTS • FRB (Financial Record Book) – This book will contain records of all cash inflows and outflows during the school year. There are 4 separate sections in the book namely: Operational Fund, Depository Fund, Petty Cash Fund and List of Expenses for each term in the same school year.