The Role of Treasurer Treasurer:
The treasurer works closely with the club secretary to coordinate the collection and disbursement of money. Accurate record keeping is imperative to this position. In many cases, the college or university will require the club to process all transactions through the college or university business office. The treasurer will need to learn about the college or university's procedure for the collection and disbursement of club monies.
Club Treasurer Duties and Responsibilities:
Collect and record member dues.
- In coordination with the secretary, forward dues and membership invoice to the International office. Additionally, contact your district treasurer to determine whether copies of the dues invoice need to be sent elsewhere.
- Prepare the budget and ensure that the club activities adhere to the budget.
- Maintain accurate financial records.
- Establish a book of accounts showing all financial transactions.
- Transact business through a bank or school account.
- Inform the club of its financial strengths and weaknesses.
- File appropriate forms with the Internal Revenue Service (US only) if necessary.
- Inform the Kiwanis club of the club's financial status.
- Disburse funds and pay bills promptly as approved by the board of officers.
- Reconcile bank statements.
- Invoice members for unpaid dues.
- Deposit club funds.
Pay all bills as approved by the board of officers.
- Record all expenditures and income for the week.
- Secure advice from faculty advisor and Kiwanis advisor on all financial matters.
Collect all money for club projects.
- Present finance report at board meetings.
- Collect dues from new members and forward them to the International Office.
Obtain all financial records, receipts, and files from immediate past treasurer.
- Prepare budget for the year following your term.
- Organize all financial records to give to treasurer-elect.
Preparing the budget
One of the main functions of the treasurer is the development and management of the club's budget. The treasure should develop the budget in consultation with the Kiwanis advisor and then present it to both the club board of officers and Kiwanis club board of directors for approval.
The budget should be the regulating fatter for the club's activities. The budget is a statement of the organization's planned expenditures and income based on the approval and commitment of the club. Use the budget as a guide for the club's activities during the year.
When approving the budget, the club must commit to raising the necessary income. Without the budgeted income, the club cannot spend as it had planned without incurring a deficit. When total expected income is not achieved, total expenditures must be cut.
The club should work with the college or university to establish financial accounts. Follow the college or university's guidelines regarding account management to maintain the accounts accurately.
CKI is a nonprofit organization, receiving much of its receipts from the general public. Therefore, the law requires that two separate accounts for receipts and expenditures be maintained. These accounts are the service account and administrative account.
- All monies collected form the general public must be returned to the general public. Such monies cannot be used for club administrative costs, such as printing, conventions and conferences, and travel to nonservice projects.
- The administrative account is the operating account for the club. It is used for those monies to be spent on club administration and/or the members. Monies coming into the administrative account are collected from dues, Kiwanis-family members, and college or university subsidies. Monies in this account may be used to buy supplies, purchase advertising, send members to conventions and conferences, etc. Funds in the administrative account can be transferred to the service account. However, funds from the service account cannot be transferred to the administrative account.
It is helpful in bookkeeping and auditing to note on each receipt into which account the money was deposited. Likewise, all checks should note from which account the line item, if appropriate, the money was drawn.
Maintaining Accurate Financial Records
It is important to keep an account of all transactions as they are made. A simple method to use is the general journal, containing three columns: income, expenses, and balance. Log in each transaction when it occurs. Specify the date and a simple description. List it properly under income or expense. Record the balance. It is recommended that the club purchase a general ledger for the club treasurer.
Always obtain a receipt as evidence of payment when disbursing money.
- Use a check rather than cash. This will provide the club with an additional receipt.
- Require members to complete an expense voucher and attach a copy of the receipt to receive reimbursement for expenses.
- Require two individuals to have authorization to write checks. Typically, the club treasurer and president are authorized to write checks.
- Always issue a receipt, especially when you receive cash (i.e., dues and fundraiser money) when receiving money. Ideally, you should purchase a book of cash receipts so copies of the receipts can be maintained by the club.
- Never hold cash personally for any length of time. The treasurer is responsible for the finances of the club. By depositing cash upon receipt, you guarantee that the member's money or community's contributions are secure.
Periodically, the bank will submit a statement listing all transactions that took place within a certain period of time. The bank may or may not return the canceled checks, depending upon their policy. When receiving the statement, reconciliation should be made to verify the accuracy of the club's balance. If this is done upon receipt of each statement, errors can be corrected.
An easy way to perform the reconciliation is to follow these steps:
Verify all amounts on the statement with amounts noted in the checkbook.
- Place the amount of the bank statement balance in the appropriate space on the back of the statement.
- Add any deposits not noted on the statement.
- Deduct all outstanding checks not yet cashed.
- This adjusted balance should agree with the checkbook balance. If it does not, double-check your arithmetic. If the error is not the club's, contact the bank and ask that someone review the statement for possible error.
The treasurer should present a formal report to the board of officers biweekly. The following information should be included:
Summary of the club's financial status-current assists, current liabilities, and outstanding debts.
- Profile of the budgeted revenues and expenditures compared to the actual revenues and expenditures with a column showing the year-to-date balance.
- Outstanding bills to be paid.
- Financial concerns, if any.
Auditing Club Books
It is strongly suggested that the club's financial records be audited annually. This audit should take place after October 1, after the fiscal year has ended and the year-end report has been prepared. Check with your Kiwanis club for the name of a reputable accountant. You may find that there is an accountant in the Kiwanis club who will perform the audit free or for a nominal charge. If there is not one in the club, it is still worth the club's money to have it done. This is an area of club administration in which the Kiwanis and faculty advisors can be extremely helpful.
Tax Status and Filing Form 990 with the Internal Revenue Service
This information applies to US clubs only. Because CKI is nonprofit, clubs do not have to file any tax forms unless the club's gross receipts exceed US$25,000, or unless the Internal Revenue Service requests the clubs to file. If such is the case, Form 990SF must be completed and filed. The Form 990 can be obtained from any Internal Revenue Service Office or online at www.irs_treas.gov=prod=bus_info=eo=index.html. To complete Form 990, and Employer Identification Number is needed. This number can easily be obtained by filing Form SS-4 (Application for Employment Identification Number). This number is permanent. More detailed information about tax status is outlined in literature item CK #15: Club Tax Information. This CK Series Bulletin can be found on the CKI Website.
If you are a member of a club outside the United States, consult your Kiwanis and faculty advisors, as well as your sponsoring Kiwanis club, for the proper laws and restrictions in your area.
Collecting and Submitting Dues
The dues each member pays to belong to CKI are used to provide many services: leadership training, service program materials, conventions and conferences, professional development, fellowship opportunities, scholarships, member support information, Circle K Magazine, experience counseling, club mailings, and literature on member development, membership recruitment, public relations, and club officer training.
Each CKI member must pay both International dues and district dues, which vary from district to district. In addition, clubs may require that members pay dues to the club. This dues amount should be specified in the club bylaws. Members should be aware of the financial implications of membership prior to joining CKI. The money paid in dues allows CKI to provide the services described above.
Your club's faculty advisor will receive a mailing in September containing a confidential password and the access information that will allow you to update the club's membership roster online via the secure website. Click on Membership Update Center. After logging in, follow the instructions on the screen. After all membership information is completed, generate an invoice. Mail check or money order (DO NOT SEND CASH) to the address shown, and include a copy of the invoice. Or, you can pay using credit card or Paypal following the instructions on the website. DO NOT MAIL A COPY OF THE ROSTER with this payment.
Your club may charge your members dues to support club and member activities. If your club charges dues, the money can be used to benefit the club and members by purchasing member pins, paying for the administrative costs of club operations, financing events such as an induction ceremony and appreciation banquet, and sending delegates to district and International conferences and conventions.
International, district, and club dues are payable on October 1. If clubs do not pay dues by December 1 - (non-US clubs are suspended if not paid by February 1), they will be considered suspended. Suspended clubs lose the right to seat delegates at the district and International convention and their members are not eligible to serve in an elected or appointed office on the district or International level. In addition, members of clubs on suspended status are not eligible to receive scholarships administered by the Kiwanis International Foundation. Suspended clubs are not eligible for awards or recognition in any program administered by CKI.
Many clubs tend to delay the payment of dues until every prospective member has paid. Any dues collected before December 1 should be sent to the International Office before the past due date. Dues can be sent in periodically as they are received. Additional forms may be ordered from CKI and are available online.
When collecting dues, explain to the members where the money goes and what they get for it. The services provided for International dues were outlined previously. Remember that through the aid of Kiwanis districts and the Kiwanis International Foundation, members actually receive more for their money than most organizations offer.