Handbook for the. Lodge Treasurer

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1 Handbook for the Lodge Treasurer

2 Contents 03. Lodge Accounts for Mark and RAM Lodges 05. Appendix A - Specimen Accounts 07. Notes for Appendix A 09. Appendix B - The Examination of the Accounts Page 2

3 Lodge Accounts for Mark and RAM Lodges These notes should be kept with the Lodge Financial Records and be available to the Treasurer, and attention of the Examination Committee should be drawn to the relevant clauses. 1. As the method adopted by the Treasurers of both Mark and RAM Lodges varies considerably in the preparation of the year end Accounts, these notes have been compiled as to the recommended method of keeping Lodge Accounts in very simple and elementary terms. 2. The duties of the Treasurer are defined by Rule 105, Book of Constitutions, and must not be delegated to any other officer or members of the Lodge. The Secretary, who will normally be more closely in touch with the members generally, can give considerable assistance to the Treasurer by enclosing with the Lodge summonses any communications which the Treasurer finds it necessary to send out, e.g., reminders of subscriptions and other moneys due. Considerable savings in labour and postage can be affected by co-operation between these two officers. It is, however, outside the scope of the Secretary s duties to keep any part of the Lodge Accounts other than a record of his own expenses as Secretary, or to hold any of its moneys. 3. The work of a Treasurer will be greatly assisted if as many members as possible pay their annual subscription on the date laid down in the By-laws. The Treasurer should remind members of outstanding subscriptions or other debts due from them to the Lodge; nevertheless, it is the responsibility of each member to ensure prompt payment of all amounts due from him to the Lodge. 4. There is so wide a variety in the Accounts currently produced by the existing Mark and RAM Lodges that it is not practicable to lay down a set form of book-keeping that would be suitable for all Treasurers. It will, however, be necessary to maintain a Cash Book showing full details of all receipts and payments, indicating whether they relate to the General Fund, the Benevolent Fund or any other Fund of the Lodge, and also in most cases separate detailed schedules showing the state of indebtedness or credit of each subscribing member of the Lodge; details of Subscriptions; Dining Receipts etc. Moreover, as in accordance with Rule 105, Book of Constitutions, it is necessary for all moneys due to or held for the Lodge to be paid regularly into a Bank, a Paying-in-Book showing the details of payments into the Bank must be kept. It is recommended that a separate Bank Account and a separate Paying-in-Book should be kept in respect of the Benevolent Fund. It will also be necessary for Bank Statements to be obtained on a regular basis from the Bank and reconciled with the Cash Book. 5. At the end of the Lodge s financial year, the Cash Book and supporting schedules should be ruled off, and any note made of any outstanding items and the Accounts balanced and reconciled with the Bank Statements showing the balance of each Fund at that date. Page 3

4 6. The Accounts should then be prepared by the Treasurer for inspection by the Examination Committee, which will have been elected for the purpose, and, for the general guidance of Lodges, a suggested form of presentation together with the necessary explanatory notes is attached as Appendix A. The Brethren appointed to the Examination Committee (Formerly the Audit Committee) should be senior members and, whenever possible, they should also be Brethren with some knowledge of accountancy. 7. It is the duty of the Examination Committee to check the Accounts and Balance Sheet(s), which will be presented to the Lodge, for accuracy and to see that they agree with the records from which they are prepared and that those records are complete and covered by appropriate vouchers or other evidence and that, where this is necessary the payments were regularly authorised by the Lodge (formal authorisation is rarely needed for the payment of ordinary expenses, but must be obtained for any extraordinary expenditure such as a donation to any charity or Brother in distress). It is particularly important that the balance shown in the Cash Book should be compared and reconciled with the Bank Statements covering the year end, and that any sums shown in the Cash Book as having been paid into the Bank are recorded on the Bank Statements. Attention being particularly given to amounts paid in but not yet credited and also cheques issued but not yet presented. It should be confirmed that they do appear on Bank Statements subsequent to the year end. 8. Some Lodges hold investments: in such cases the Examination Committee must check the existence and whereabouts of any stock or share certificate and that they correspond with the holdings shown in the Accounts. When all this has been completed and the Examination Committee is satisfied, a Report in the following terms should be shown at the foot of the Balance Sheet and signed by each member attending the meeting at which the examination is held: Report of the Examiners to the Members of the...lodge No... We, the undersigned, having been appointed as Examiners, report that we have inspected the books and other records maintained by thetreasurer, and confirm that the Accounts as presented agreed therewith. Signed:...Dated... (If the Examination Committee or any member of it is not satisfied, the grounds for dissatisfaction must be stated.) The Accounts and the Balance Sheet with the Report thereon should be copied in readiness to be despatched by the Secretary with the summons for the meeting at which they are to be considered, as set out in the By-laws of the Lodge. Page 4

5 Appendix A - Specimen Accounts The following specimen accounts are for the general guidance of Lodges (The letters in brackets refer to notes which follow the specimens. The...Mark (or RAM) Lodge, No... Income and Expenditure Accounts for the Year Ended GENERAL FUND Previous Year INCOME Subscriptions due (a) 2,140 2,060 Advancement and Joining fees Dining fees (b) 1,994 2,080 Interest on Investments (Net) Bank interest (Net) (c) (f) 4,321 4,212 EXPENDITURE Grand Lodge dues (d) Provincial Grand Lodge dues (d) Temple and room hire Dining expenses 1,980 2,235 Postage, printing and stationery Insurance Tyler s fees Regalia and ritual books (e) Donations Almoner s expenses 39 Sundry expenses 33 4,025 4,126 Excess of Income over Expenditure (f) ,321 4,212 BENEVOLENT FUND Previous Year INCOME Alms collections Benevolent Fund & covenant receipts Bank interest (Net) (c) (g) 746 1,100 EXPENDITURE Sussex Mark Benevolent Fund Donations: (details) do. 250 do. 250 Charity Steward s expenses ,441 Excess of Income over Expenditure (g) 764 1,100 Page 5

6 BALLANCE SHEETS as at Previous 2005 Year GENERAL FUND Balance brought forward 4,299 4,213 Excess of Income for the year ,595 4,299 OTHER FUNDS Balance brought forward DISCRETIONARY FUND Balance brought forward Collections Gifts to Widows (o) 5,167 4,943 Represented by:- Equipment (h) Investments (k) Cash at bank (I) 4,179 3,933 Sundry debtors (J) Subscriptions due (i) Loan to Benevolent Fund 1,500 1,500 5,737 6,208 Subscriptions in advance (m) (q) -1,140-1,200 Sundry Creditors (n) -80-1, (o) 5,167 4,943 BENEVOLENT FUND Balance brought forward 1,907 2,248 Excess of Income for the year (P) 2,086 1,907 Represented by:- Cash at bank (I) 3,586 3,432 Loan from General Fund -1,500-1,500 Sundry creditors (n) -25 (p) 2,086 1,907 It is always desirable for separate Balance Sheets to be drawn up for the General and Benevolent Funds and if the Benevolent Fund has been constituted under a Trust Deed it is essential to do so. Page 6

7 Notes for Appendix A (a) (b) (c) The subscriptions should be those due to be paid for the year, whether received in it or not. Any unpaid will also appear on the Balance Sheet at (i). Any paid in respect of the year to follow that in question will be shown in the Balance Sheet at (q). The dining fees also should be those due to be paid for the meals in the year. Many Lodges prefer to deduct these from the costs of dining. Interest on investments, including any Bank Interest received should always be shown net after tax. (d) (e) (f) (g) (h) (i) (j) (k) (I) Grand Lodge dues and Provincial Grand Lodge dues should be those due for the year. If they have not been paid by the date of the Balance Sheet, they should also be included in creditors in the Balance Sheet. Rituals books will be the cost thereof purchased in the year plus the cost of those brought forward at the beginning of the year, less the cost of those in hand at the year end if still useable. If any are out of date, the whole cost should be charged. These totals must agree. These totals must also agree. Equipment will include any furniture, collars, tools, etc. belonging to the Lodge. It is wise to provide, say, 5% or 10 % depreciation each year by charging it to expenditure. If the cost has been written off, this fact should be stated. These are subscriptions for the current or earlier years not yet received. If a member is excluded, the subscription due from him (which will have been included in subscriptions in the Income & Expenditure Account for each year) can be deducted from the General Fund. These are fees not received at the date of the Balance Sheet. The cost price of investments should be included with a note of their market value where they are quoted on a Stock Exchange. The investments should be listed, showing the amount held and the cost of each. This should be the bank balance after taking into account amounts paid in by the Balance Sheet date even if not then appearing in the bank statement and allowing for cheques sent out but not yet cleared at that date. If both the General and Benevolent Funds have investment income it will be essential to keep separate bank accounts, for both of which the Treasurer is responsible. Page 7

8 (m) These are subscriptions received in the year to the date of the Balance Sheet but due in the following year. They must not be included in the Income & Expenditure Account. Next year they will form part of the credit to Income & Expenditure Account. (n) (o) (p) These are amounts due but unpaid at the date of the Balance Sheet, such as Grand Lodge and Provincial Grand Lodge dues for the year, dining fees for a meeting held late in the financial year, etc. These totals must agree. These totals must also agree. Page 8

9 Appendix B - The Examination of the Accounts 1. Every Treasurer should welcome a proper examination of the Lodge Accounts in the same way as the Accounts of any business or other institution or person handling money of other people are examined. The Treasurer has taken on an onerous task and is entitled to have a report made by the Examination Committee to the Lodge that its affairs are in worthy keeping. 2. Suggested procedure; (i) There should be available to the Examination Committee: (a) The Lodge Minute Book. (b) The Attendance Book. (c) A copy of the By-laws. (d) The Cash Book, and all other records kept by the Treasurer. (e) Paying-in book and Bank Statements. (f) Counterfoil receipts for subscriptions, visitors fees initiation and joining fees. (It is well for the Treasurer always to make out a receipt for the contents of the Charity Bag and hand the original to the Secretary. It is recommended that the amount be noted in the Minute Book.) (g) All invoices etc., evidencing payments. (h) An inventory of all property belonging to the Lodge. (i) A list of all ritual books etc., in hand and their cost. (j) A list of all unpaid subscriptions, showing the periods involved. (k) A similar list of any subscriptions paid in advance. (I) A list of any other amounts owing to the Lodge. (m) Details of any investments, showing where the documents of title are kept. If they are deposited with the Bank, the Bank should certify that fact. (n) A list of creditors with the relative invoiced or othe evidence (these will usually have been paid by the date of the Examination). (ii) The Treasurer should prepare the Income and Expenditure Account and Balance Sheet together with all the vouchers in order that the totals for each heading of may be readily confirmed and agreed. (iii) The Examination Committee should: (a) See that all subscriptions have been accounted for by checking the number of members from the list of members. (b) Check the dining fees in a similar manner. (c) Check Initiation and Joining fees. The Minutes will indicate how many should have been received. (d) See that all income on investments and bank, etc., interest (if any) that ought to have been received had been received and banked, and that they are all shown net of income tax. Page 9

10 (iv) If the above tests are made, only a test check of the Cash Book need take place. (v) Most of the checks required for the Balance Sheet are done automatically in the course of checking the Income and Expenditure Account. The cash book balances must be reconciled with the bank balances. (vi) The inventory of equipment and stock of ritual books, etc., should be checked usually by a representative of the Examination Committee prior to the examination meeting. (vii) The opening balances must be checked with the books and with the previous year s Accounts presented to the Lodge. (viii) The checks for the Benevolent Fund are similar, so far as they apply, to those on the Lodge Fund. Where there is a trust deed constituting the Fund a charity, it should be seen that all income tax suffered by deduction has been reclaimed. Collections should be compared with the Minute Book where they are recorded. (ix) In making checks it must be seen that all invoices relate to the Lodge and are for proper purchases, (x) It will rarely be necessary to check every item received through the paying-in book to the bank statements. If the total of subscriptions, dining fees, Initiation and joining fees, charity collections and all other receipts agree with the total of the receipts in the cash book, that will usually suffice. If there is a difference, it must be found by a detailed check. (xi) There should rarely be cash in hand; any float advanced to the Secretary or Treasurer to meet postages and other small expenses, or any sums dealt with by Stewards where they are financially responsible for refreshments and meals, should be accounted for by vouchers and the balance banked by the end of the year. Page 10

11 Visit our Website to download a copy of this and other Masonic Guides and Forms: Author: W Bro Geoff Bird, PAGSwdB Provincial Grand Treasurer Revision History 1st Edition - October 2010 Contact Details: Roy L. Thompson a: Jasmine Cottage, Highlands Avenue, Uckfield, East Sussex TN22 5TD t: e: treas@sussexmarkmastermasons.org.uk Handbook for the Lodge Treasurer 2010 Provincial Grand Lodge of Mark Master Masons

A Lodge Treasurer s Handbook

The Masonic Province of East Lancashire A Lodge Treasurer s Handbook Rossendale Masonic Hall, Ashday Lea, Haslingden Road, Rawtenstall BB4 6QX Email: secretariat@eastlancsmasons.org.uk Telephone No. 01706