Minnesota 4-H. Club Treasurer s Book. Youth Development. Name of 4-H Club: County: Year: Club Treasurer: Adult Advisor: Adult Verifier:

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1 Minnesota 4H Youth Development Club Treasurer s Book Name of 4H Club: County: Year: Club Treasurer: Adult Advisor: Adult Verifier:

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3 Table of Contents Page # Information and Activities Page # Information and Activities 1 Table of Contents 12 Procedures for using the Excel Checkbook Ledger 2 Welcome 12 Understanding the Bottom Box on the Excel Checkbook Ledger and Required Signatures 2 4H: A Public Organization 12 Activity #6 Recording Expenses in the Excel Checkbook Ledger 2 Club Treasurer Position Description 13 Activity #7 Preparing and Making the Deposit 2 & 3 Club Treasurer Supplies 13 Experience 1: Preparing the Deposit Ticket 3 Important First Steps 14 Experience 2: Recording the Deposit in your paper and excel checkbook ledgers 3 & 4 Rules Pertaining to the Signature Card and Checking Account 14 Activity #8 Reconciling the Bank Statement 4 & 5 Important End of the Year Steps 14 Experience 1: Understanding the Bank Statement 5 When a Club Disbands 15 Experience 2: Reconciling the Excel and Paper Checkbook Ledger 5 Welcome to the Treasurer s Training 16 Experience 3: Completing the Reconciliation Form 5 & 6 Activity #1 Reading the MN 4H Annual Club Financial 17 Monthly Reconciliation Form Report 6 & 7 Activity #2 Verifying the Ending/Beginning Balance in the Checkbook Ledger 18 Activity #9 Preparing and Reading the Treasurer s Report 7 Activity #3 Approving the Proposed Budget 19 Experience 1: Preparing the Monthly Treasurer s Report 8 Activity #4 Handling Income Itemized Income Form 19 Experience 2: Reading the Treasurer s Report at a Club Meeting 8 & 9 Experience 1: Handing Income Received by 2025 Answer Key Check 9 Experience 2: Handling Income Received in 26 & 27 Fundraising in the Name of 4H Cash Writing a Cash Receipt 9 Experience 3: Finalizing the Itemized Income 28 Acknowledgements and References Form for Deposit 10 Activity #5 Paying Expenses Procedures for Writing checks 29 Worksheet #1 Paper Checkbook Ledger and Itemized Income Form 10 & 11 Experience 1: Writing a Check 31 Worksheet #2 Excel Checkbook Ledger 11 Financial Record Keeping Guidelines Sample Excel Checkbook Ledger 1

4 Welcome! Congratulations on being elected treasurer for your 4H Club. This is a great honor, and a position that must belong to someone who is trustworthy and honest. It is important that you learn new record keeping skills to help you track your club s finances. These are very important skills that you will use for the rest of your life. You are in charge of all of the money that will come in and out of this account. You must report to your club all transactions and the ending balance at each club meeting. The best treasurers keep their books up to date and do their record keeping on a daily or weekly basis. Best of luck in your new position and have fun along the way. 4H: A Public Organization University of Minnesota Extension 4H Youth Development (4H) is the youth development program of our nation s Cooperative Extension System. 4H is brought to each state by the landgrant University; the University of Minnesota Extension. The 4H Youth Development Program engages Minnesota youth in quality learning opportunities, including 4H clubs. The purpose of 4H clubs is to provide learning and leadership experiences for club members through club meetings and project work. As a public organization all funds raised by 4H clubs must be used to further the educational mission. Club Treasurer Position Description Purpose: To work with the club leader and adult advisor in keeping accurate records of all money collected and spent. If the club has a checking and savings account you will also be responsible for writing checks, making deposits, and balancing the accounts. You are the keeper of the money for your club. It is your duty to keep good records of the money you handle. Term: Elected for a one year term by being nominated and voted into office. No more than 2 consecutive terms. Grade: A Club Treasurer must be in 6 th grade or older. The general duties of the club treasurer will be explained throughout this document. Club Treasurer Supplies The supplies you will need are as follows: 1 Inch 3 Ring Binder Triplicate Receipt Book Office Supplies: Stapler, paper clips, 3hole punch, calculator, pens/pencils Optional: Clear tub large enough to carry binder and supplies Clear sheet protector to use as a to do file (Example: Receipts, bills not paid, checks to be deposited, etc.) Your 3ring binder will be divided using tabs labeled as follows: All Treasurer book information can be downloaded and saved to a file on your computer at Tab What is written on each tab What is filed behind each tab Tab 1 Treasurer s Book Activity Packet This document can be used as a reference throughout the year. Tab 2 Excel Checkbook Ledger If using excel: Download the checkbook ledger and save to your computer. Each month you will complete the form, print off a copy, attach supporting documents and file behind this tab. If NOT using excel: Print off the checkbook ledger for the entire year, or ask the Extension office for a copy. Manually record all transactions each month and file the same way as listed above. Tab 3 Itemized Income Report (Only blank copies go behind this tab) Make copies as needed. This document will match each deposit made. You will file the completed form with the checkbook ledger for the corresponding month, and file it behind the Checkbook Ledger tab. Checking and Savings File monthly statements in chronological order with the most recent on top. Attach completed reconciliation form. Tab 4 Bank Statements/Reconciliation Forms Tab 5 Treasurer Report File each monthly report behind this tab This document is available in excel. Tab 6 Budget and Financial Forms Copy of the MN 4H Annual Financial Report from previous year. When current year is complete Form C will be used. Form B Proposed Budget Form Completed for the new 4H year. 2

5 Treasurer Book Annual Review completed from previous year. When the current year is complete Form D will be used. Tab 7 Fundraising Income Generation Request and Follow Up forms Fundraising Money Counting Forms Important First Steps As the new club treasurer there are some important first steps that you must take. Find out the name of the adult advisor (treasurer) who will be helping you. This person will help you learn your new skills, make sure you are keeping accurate records, and mentor you along the way. Go to the bank and take a copy of your club s minutes showing that you are the newly elected youth treasurer and have your name added to your club s signature card. This will allow you to sign checks from your club s checking account. It is a best practice to go to the bank with your parent and the other new signers on the card. Before you take office, ask your club leader or adult advisor to show you last year s annual review to verify that a review was completed (Form D). This is important to ensure accuracy of your financial records before the treasurer book is transferred from one treasurer to the next. Ask your club leader or adult advisor to show you last year s MN 4H Annual Club Financial Report (Form C). Make sure the ending checkbook balance on the form matches the beginning balance in your checkbook. Work with your adult advisor to set up a budget planning meeting for your club. Often a budget committee includes the club officers and volunteers. The budget committee proposes a budget to the club for the upcoming year (October 1 st of current year September 30 th of the upcoming year). Work as a group to determine what funds are needed to support the club goals, and make a plan on how the club will raise the funds. Use the Club Proposed Budget (Form B). Present the proposed budget for approval at the first possible club meeting (October or November). Make sure the budget is discussed, dated, signed by the secretary, and documented in the secretary s minutes. A copy of the completed budget form should be put in your treasurer s book behind the Budget and Financial Forms tab, and another copy turned into the Extension Office with the other chartering documents. It is important that you and the adult advisor meet regularly to manage the clubs finances so you can provide an accurate, up to date report at each club meeting. If the parent/guardian of the youth treasurer is the adult advisor you will need to meet with the adult verifier once a month. Rules Pertaining to the Signature Card and Checking Account Basic Guidelines All checks require two signatures; one adult and one youth. Some banks do not require two signatures on a check, but due to the public nature of these funds it is a 4H requirement. Never have one of the parties (youth treasurer or adult advisor) sign blank checks for future use. Best practice would be to have both parties present to write and sign checks. It is best practice to have duplicate checks so you always have a record of checks written. NEW in 2013: Adult Advisor/Treasurer: Note: The Adult Treasurer title has been changed to Adult Advisor. It is best practice to not have the youth treasurer and adult advisor related or living in the same household. However, the 4H program realizes that this may not be possible and the youth will learn better record keeping skills if the parent/guardian is working side by side with their child. The requirement for each position is listed below. Pay special attention to the rules in place if the adult advisor is the parent/guardian/or living in the same household as the youth treasurer. Signature Card Guidelines: One youth and two adults MUST be on the signature card as shown in the box below. Signatory Requirements if Youth Treasurer and Adult Advisor Live in the same household (For Example: Parent /Child) 1. The Youth Treasurer Must be in 6 th Grade or older (If this is not possible for your club talk with your 3

6 Must be on signature card 2. Additional Youth Signer (Optional) 3. Adult Advisor/Treasurer Must be on signature card 4. Adult Verifier Must be on signature card Signatory 1. The Youth Treasurer Must be on signature card 2. Additional Youth Signer (Optional) 3. Adult Advisor/Treasurer Must be on signature card 4. Adult Verifier Must be on signature card Program Coordinator for other options). Must sign all checks, keep up to date on record keeping, sign monthly checkbook ledger, file in treasurer s book, and attend treasurer s training. Must be in 6 th Grade or older This person only signs checks in the event that the youth treasurer is not available. The parent/guardian can sign checks under They cannot sign any checks over They will assist the youth with record keeping, sign monthly checkbook ledger each month and file in treasurer book, attend treasurer s training, and fill in any fundraising request/follow up forms. Each month the adult verifier must check the books for accuracy and sign off. The adult verifier must sign all checks over Each month meet with the youth treasurer and adult advisor/treasurer, review books for accuracy and sign off on the checkbook ledger. This verifier cannot be related to any of the youth on the signature card. Related refers to mother, father, guardian, son, daughter, sister, brother or living in the same household. Requirements if Youth Treasurer and Adult Advisor are not related. Related refers to mother, father, guardian, son, daughter, sister, brother or living in the same household. Must be in 6 th Grade or older Must sign all checks, keep up to date on record keeping, sign monthly checkbook ledger, file in treasurer s book, and attend treasurer s training. Must be in 6 th Grade or older This person only signs checks in the event that the youth treasurer is not available. Sign all checks no matter the amount Meet with the youth treasurer once a month to review record keeping and sign off on the checkbook ledger, and fill in any fundraising request/follow up forms. The adult verifier is considered an additional signer for checks in case the adult treasurer is absent. The books do not need a verifier signature each month. Attending the treasurer training is recommended but not required. Important End of the Year Steps After your year as treasurer, it is important that you take the following steps immediately (shortly after September 30 th ). Name of Document Directions Form C: MN 4H Annual Work with your adult advisor to complete this form. If you have downloaded the Club Financial Report excel documents on your computer and filled in the electronic checkbook ledger (Found in the Excel each month, the financial portion of this document will fill in automatically. Checkbook Ledger online. Otherwise you will have to manually total all numbers and fill in the document. Place Look for the tabs along the a copy of the completed form in the treasurer book as a reference for the next bottom.) treasurer, and give a copy to your club leader to turn in with the other chartering Form D: The 4H Club Treasurer s Book Annual Review. (Found online with other treasurer documents.) documents. Ask your club leader to arrange for a review of the treasurer s book to be complete. This person cannot be on the signature card or related to anyone on the signature card. Related refers to: Related refers to mother/stepmother, father/stepfather, guardian, son, daughter, brother, sister, spouse, aunt, uncle, cousin, grandma, grandpa, or living in the same household. Turn over the completed treasurer book, including all supporting documents to the reviewer, who will complete the annual review. 4

7 When a Club Disbands If a club should disband the following must occur: Be sure to pay all outstanding bills approved by the club. The balance of the club treasury and all financial information including all financial account books, officer s book with supporting documents, as well as a letter from the bank confirming all accounts were closed must be turned over to the Extension Office. All club property must be turned over to the Extension Office. A club may vote on the following, but the Federation must approve the action: o If a club votes to split into two smaller clubs, the treasury could be divided based upon membership, with equal shares per member going to the respective club treasury. o When a club divides without mutual agreement the finances of the club should be turned over the Extension Office for the Federation/Council to determine where the funds will go. o The balance of the club treasury may NEVER be divided among members. Welcome to the Treasurer s Training This is a hand s on training to help you learn the skills to be a club treasurer. There are many activities and scenarios that you will be participating in. The answers to all of the activities are found in the back of the book. You can check your answers at the end, or check them along the way. Directions: You will be using worksheet #1 and #2 located on page 29 & 31 of this workbook. Please tear these 2 pages out of the book at this time and set aside. Setting up the Checking Account and Financial Documents You are the new treasurer for the Lucky Clovers 4H club. You just received the checkbook from the previous treasurer, organized your new treasurer book, and downloaded all of the treasurer documents that you found on the 4H website. Activity #1 Reading the MN 4H Annual Club Financial Report Form On the next page (page 6) is a copy of the MN 4H Annual Club Financial Report completed by the previous youth treasurer and adult advisor of the Lucky Clovers 4H Club. This form is completed annually at the end of the 4H fiscal year and summarizes the activities within the checking and savings account during the past year. At the end of your term, Next September 30 th, you will have to complete the same form. If you are using the excel checkbook ledger, the checking account starting balance, all income, and all expenses will total for you. This tool will be of value to you and save you a lot of time in the end. You will find this document in the excel checkbook ledger on the bottom tab listed as MN 4H Annual Club Financial Report. 5

8 Note: The ending checkbook balance on the MN 4H Annual Club Financial Report Form is your starting balance in your checkbook ledger. Answer the follow questions using the MN 4H Annual Club Financial Report 1. What is the ending balance in the club checking account? (This should match your starting balance in your checkbook). 2. What is the ending balance in the club savings account? 3. What is the total of the club s savings and checking? (This should be your starting balance on Form B, Proposed Budget). Activity #2 Verifying the Ending/Beginning Balance in the Checkbook Ledger On the next page you will find a copy of the paper checkbook ledger. This will be in the checkbook that your previous club treasurer gave you. When you write a check, or make a deposit, you will immediately record it in this ledger. Notice that checks written, numbers and deposits are written on the white lines and the description of the transaction is written on the gray lines. You will need a calculator to add and subtract the transactions so you know at all times how much money is in the club checking account. Answer the follow questions using the MN 4H Annual Club Financial Report and Checkbook Ledger found on page What is the ending balance in the checkbook ledger as of September 30 th? 2. Does the ending balance in the checkbook ledger match the Ending Checking Balance on the MN 4H Annual Club Financial Report : 6

9 3. What will be the beginning checkbook balance on October 1 st. RECORD ALL CHARGES OR CREDITS THAT AFFECT YOUR ACCOUNT NUMBER DATE TRANSACTION DESCRIPTION PAYMENT, FEE, WITHDRAWAL ( ) DEPOSIT, CREDIT (+) BALANCE 101 9/7/ Pizza Ranch Club meeting and celebration 102 9/7/ Sue Smith Club Banner Supplies 9/20/ Deposit Donations for Operation Military Kids Activity #3 Approving the Proposed Budget Below you will find a copy of the Club Proposed Budget. A proposed budget lists the anticipated income and expenses for the upcoming year. A copy of the completed proposed budget should be put in the treasurer s book and another copy turned into the Extension office with the other chartering documents. Notice that the Club Proposed Budget must be approved by the club, dated, and signed by the NEW incoming Secretary. Answer the following questions using the Club Proposed Budget on Form B below. 1. What is the total proposed income? 2. List one proposed expense? 3. What is the beginning balance? Does it match Box F, Total Checking & Savings on Form C, page 6? (Year) Club Proposed Budget Form B A tentative club budget should be set by the officers and leaders at the beginning of the 4H year for the upcoming fiscal year (October 1st of the current year September 30th of the upcoming year). The tentative club budget should be presented at the first possible club meeting (October or November), discussed, and approved. Document the budget approval in the secretary's minutes, save a copy of the budget form and put in the treasurer's book. (A) Beginning Income Total of Checking and INCOME: Record all anticipated income for the upcoming year. Include fundraisers, member dues, donations, and estimated income. LIST INCOME SOURCE: Savings found on Form C Box (F) 1, ESTIMATED INCOME 1. All Fundraisers: Bake Sale, Pop Stand, Pizza Ranch, Fruit Sales Member Dues (1.00 x 20 Members) All Donations NOTE: Do not forget to approve the budget at the October or November Club Meeting, and sign and date the bottom of this form!!! (B)Proposed Income EXPENSE: Record all anticipated expenses for the upcoming year. Include yearly club meeting fees, outings, projects, scholarships, service learning opportunities, etc. LIST EXPENSE SOURCES: ESTIMATED EXPENSES 1. All Meeting Expenses Club Outings: Bowling and Pizza Party Service Learning: Adopt a Family, Kids Against Hunger Club Projects: Banner, Flower Box, Club Project Scholarships: BLU, YELLO, State Fair, State Horse, State Dog, State Shoot Club Insurance for all members and parents (1.00 x 60 people) (C)Proposed Expenses 1, (D)New Proposed Ending Balance Beginning Balance (A) + Proposed Income (B) Proposed Expense (C) = New Proposed Ending Balance (D) Club Budget Presented and approved at Club Meeting on October 7, 2013 (Date of Meeting) by: Susie Secretary 10/7/13 Secretary Signature & Date 2012 Regents of the University of Minnesota. All rights reserved. University of Minnesota Extension is an equal opportunity educator and employer. In accordance with the Americans with Disabilities Act, this material is available in alternative formats upon request. Direct requests to the Extension Store at Printed on recycled and recyclable paper with at least 10 percent postconsumer waste material. 7

10 Activity #4 Handling Income The Itemized Income Form is used to record multiple sources of income related to one deposit. You may also use this form when collecting money from multiple people for a single purpose. The income may come to you as a check or cash. Take note in the bottom left hand corner of all of the tasks that need to be competed when using this form; please review these tasks. The grand total of this form must match the bank deposit receipt that is attached. Below you will see an abbreviated version of the Itemized Income Form. Itemized Income Form Date of Deposit Date Received From Description/Event Amount Check # Cash Receipt # Total Deposit Please check off each completed task: Attach all cash receipts Attach deposit receipt from bank Enter Deposit in Monthly Checkbook Ledger (The total on this form must match deposit receipt) File this form behind the Monthly Checkbook Ledger (The month in which you MADE the deposit) The following club meeting scenario will be used in the next 3 experiences: Club Meeting Scenario (Bowling) You are at your club meeting on October 7 th, and during the meeting the club decides to go bowling at a later date. The cost will be 12 per person for bowling and pizza. It is moved and seconded that your club will pay half of the cost (6.00 per person) for members and their family members who want to participate. The bowling alley requires that one check for the full amount be paid the day of the bowling event, so the club is asking each member who wants to participate to pay 6.00 to the club before the event. Experience 1: Handling Income Received by Check Mary Farmer wants to pay for her 3 children (Danny, Joe and Ann) and herself to go bowling on November 25 th. She writes a check payable to the Lucky Clovers 4H Club for Mary Farmer Rolling Meadows Date: _10/7/20 Rolling Rock, QE XXXXX Pay to the Order Of _Lucky Clover 4H Club Twenty Four and 00/100 Dollars Country Star Bank Memo Bowling Money Mary, Danny Joe, Ann Signature Mary Farmer xxxxxxxxxxxxxxxxxxxxxxxx: Record this income 8

11 on the Itemized Income Form (Worksheet #1) by filling in all of the required fields using the information from the check written by Mary Farmer on page 8. Experience 2: Handling Income Received in Cash When you receive cash always count the money back to the person who gave it to you to make sure the amount is correct. You must always write out a receipt when you receive cash and maintain with your records. Cash receipts MUST be in numerical order. Numerical order means 1200, 1201, If a receipt is missing you must be able to explain why. Having cash receipts will help with the review at the end of the year. Larry Fields wants to pay for his wife Betsy, son Karl and himself to go bowling. He gives you cash Complete the following task 1. Count the cash back to Larry Fields to make sure the total is correct. 2. Write out the receipt for Larry Fields for cash received at the club meeting. (Tip: On the Dollars line you will want to write out the amount in words and draw a line all the way to the word Dollar. For example: Eighteen and 00/100Dollars Receipt 1200 Date Received: Received From: Dollars For: By (Treasurer Signature) Keep original receipt in book. Give yellow copy to customer. Attach pink copy to your records. 3. Record this income on the Itemized Income Form on page (worksheet #1) by filling in all of the required fields using the information from the receipt above. Be sure to list the cash receipt number. 4. Where do the copies of the receipt go? (Look at receipt above). o o o Original Copy: Yellow Copy: Pink Copy: Experience 3: Finalizing the Itemized Income Form for deposit 1. Total the Itemized Income form (Worksheet #1). What is the grand total? 9

12 Activity #5 Paying Expenses All expenses must be paid in the form of a check. Never use cash when paying a bill or making a purchase. All expenses must either have prior budget approval or be approved by a motion at a club meeting before being paid. Approved annual budget and motions must be recorded in the secretary s minutes. Be sure there is enough money in the checking account to cover the checks that are written. Always have a written bill, invoice, statement or receipt that creates a paper trail before writing the check. You will attach this receipt to the Monthly Excel Checkbook Ledger that will be introduced later in this document. Procedures when writing Checks 1) Never sign an incomplete or blank check. 4) Keep checks in numerical order. Numerical order means: 100, 101, 102, etc. When finished with one book of checks make sure the next number is in numerical order. 2) All checks need a youth and adult signature. 5) Record all checks in the paper checkbook ledger and the excel checkbook ledger in numerical order. 3) Always use blue or black ink when writing checks. Never use a pencil or colored ink. 6) If a mistake on a check is made write VOID on the check and record the check number in the checkbook ledger. In the detailed description write void. Attach the voided check to the monthly checkbook ledger to account for the check. The following club meeting scenario will be used in the next 3 experiences: Club Meeting Scenario (Treasurer Supplies) It was moved and seconded at your last club meeting for the club to spend up to on supplies for the new club treasurer. Supplies would include a new binder, tabs, plastic carrying tub, stapler, triplicate receipt book, 3 hole punch, paperclips and a calculator. You and the Adult Advisor, Trevor Texas, met at the local Office Supply store on October 10 th, to make the purchase. The total cost for supplies was (according to the receipt). Keep the receipt for your records. Experience 1: Writing a Check 1. Write a check to Kenmore Office Supplies for the amount of the receipt listed on page 11. (Refer to the check Mary Farmer had written for bowling on page 8 as a guide). TIP: Make sure the check always has two signatures (one youth and one adult). Clover County 4H Club 103 Date 20 Pay to the Order Of Dollars Country Star Bank Memo : : : 103 Signature: 10

13 Kenmore Office Supply October 7, 20 1 inch 3 ring binder 2.98 Stapler hold punch 3.99 Receipt Book 2.79 Plastic Tub 4.59 Calculator 2.99 Paper Clips 0.99 Tabs 0.99 Sub Total Tax 1.35 Total The Receipt In some instances you will be asked to reimburse someone for purchasing items for the club. Before writing a check, make sure you always review the receipt to make sure all purchases were approved. Always write the purpose for the purchase on the receipt. This will help the reviewer when they review the books. 1. Who will sign the check? 2. Write the purpose for the receipt on the receipt. What is the purpose of the receipt? 3. Record the check in the paper checkbook ledger found on Worksheet #1. Financial Record Keeping Guidelines Below is a sample of the excel checkbook ledger that will help you do your record keeping at home. It is always best practice to complete record keeping as soon as possible. The excel checkbook ledger is a running total of all checks written and all deposits made for the month. This document will be a mirror image of your paper checkbook ledger. Below you will see an abbreviated version of the excel checkbook ledger. This document is in excel format and can be found with the other club treasurer book documents. If you are not using Excel on your computer, you will have to manually write in all transactions on the ledger forms, total balances and transfer dollar amounts from one month to the next. Month: October Year: Date Monthly Checkbook Ledger: This form is a record of your club checking account. Record the ending balance from last year's treasurer's book where it asks for the starting balance (blue box). Check to see if that number agrees with the previous year's ending balance on the financial review. Record every check written and every deposit made for the month on this form. Keep this ledger current so you know how much money is in your checking account. Check Deposits (Income): Income: Write a brief description or See Expenses Income Checkbook Write "Deposit" in space below. Number attached Itemized Income Form". Amount of Amount of Balance Payments Made (Expenses): Write who check is payable to. Expenses: Write detailed description of Check Deposit expense. 10/1 Starting Balance N/A N/A Cleared from Bank 10/31 N/A Ending Balance Checkbook Ledger Beginning Balance on 10/ Monthly Income Received Monthly Expenses Paid Current Balance Directions: Each month you will print a copy of the monthly checkbook ledger and attach the following documentation: Itemized Income Forms for each deposit made, and all expense receipts that match the checks written for the month. File this form with all of the supporting documents behind the Checkbook Ledger tab in your Treasurer s Book. 11 Youth Treasurer Signature Adult Advisor Signature Adult Verifier Signature

14 As you read through the procedures below, look at the excel checkbook ledger on page 11 to make sure you understand how the document is used. Procedures for using the excel checkbook ledger: Starting Balance Type or write your Starting Balance (in the blue box) under the gray checkbook balance box. Recording Checks Record date, check number, who the check was written to, and the purpose. Record the amount of the check in the yellow column under Expenses Amount of Check. Recording Deposits All deposits must match an itemized income form. List the date money was deposited in the bank. Under Deposit write the word Deposit. In the next box write see attached itemized income form. Record the deposit amount in the green column under Income Amount of Deposit. Record Keeping using your 3ring At the end of each month print a copy of the current month excel checkbook ledger off of your computer and attach the support documents for the month. binder treasurer Attach all Itemized Income Forms for each deposit recorded. book. Attach all vouchers, receipts and invoices that match each check written. Three hole punch and put in treasurer s book behind the Checkbook Ledger tab with the current month on top. Note: On the bottom left side of the excel checkbook ledger you will find a summary of the month s income and expenses. Understanding the bottom box on the left hand side of the excel checkbook ledger and required signatures: Blue Box The starting balance for the current month. This will always match the starting checkbook balance. Checkbook Ledger Beginning Balance Green Box Monthly Income Received Yellow Box Monthly Expenses Paid Gray Box Current Balance Youth Treasurer Signature Adult Advisor Signature Adult Verifier Signature Total of all income received for the month. This will add automatically for you if using the excel forms. The Itemized Income Forms for the month should match the total in the green box. Total of all expenses paid. This will add automatically for you if using the excel forms. The total of all the receipts attached for the month should match the total in the yellow box. Will match your current check book balance. This amount will automatically transfer to the blue box on the next page and be your beginning balance at the top of your ledger for the next month. At the end of each month the youth treasurer needs to sign off on this document saying all information is attached and accurate. At the end of each month the Adult Advisor needs to sign off on this document saying all information is attached and accurate. (This is only needed if the Youth Treasurer and Adult Advisor are living in the same household). At the end of each month the Adult Verifier needs to sign off on this document saying all information is attached and accurate. Activity #6 Recording Expenses in the Excel Checkbook Ledger The following scenario will be used when filling in the Excel Checkbook Ledger (You will need a calculator) Today s date is October 14 th, and you are going to complete your record keeping. You received income at your last club meeting and you wrote a check for expenses. The information will need to be recorded in your Excel Checkbook Ledger and a deposit will need to be made. 1. Record check 103 that you wrote to Kenmore Office Supply on the Excel Checkbook Ledger on Worksheet #2. (Use the information on the paper checkbook ledger on Worksheet #1). Be sure to include the date, check number, who the check was payable too, and the amount of the check. What color is the column that you wrote the amount of the check in? 12

15 2. Subtract the amount of check 103 from the beginning balance in both your paper checkbook ledger on Worksheet #1 and excel checkbook ledger on Worksheet #2. What is your new balance? Note: Your checkbook ledger and your excel checkbook ledger ending balances should match. Activity #7 Preparing and Making the Deposit Guidelines for making a Deposit: Make sure you never mix 4H money with personal money. Keep the money in the pending file (or clear sheet protector) in the treasurer s book, or in a locked cabinet until you make the deposit. Make the deposit within 1 week of receiving the money. Your deposit MUST match the Itemized Income Form. Deposit Scenario: Today is October 14 th, and you will be preparing the deposit for the check you received from Mary Farmer and the cash you received from Larry Fields from the club meeting. (Deposit means putting money into the club s checking account). Although you are preparing the deposit on October 14 th, you will not actually take the deposit to the bank until tomorrow, October 15 th. Experience 1: Preparing the Deposit Ticket Below 1. Look at the Itemized Income form (Worksheet #1) when filling in the deposit ticket below. 2. Record the date you will be depositing the money into the bank. 3. List the total amount of cash received to the right of cash in the boxes provide. 4. In the space under cash list the check number of Mary Farmer s check. In the blanks to the right record the amount of the check. 5. Endorse the check by using a club stamp or writing your club name on the back of the check, and the treasurer s name. 6. Add the cash and check together and write the amount in the Total Deposit boxes. 7. Does this deposit ticket match the Itemized Income Form? Deposit Ticket Clover County 4H Club Date: Sign here for cash received (if required) Country Star Bank Cash Or Total from other side Sub Total Less Cash Received Total Deposit On October 15 th you take the deposit to the bank. Always ask for a deposit receipt. This receipt should match the amount of the deposit and be attached to the Itemized Income Form. 13

16 Experience 2: Recording the deposit in your paper and excel checkbook ledgers Use the paper checkbook ledger (Worksheet #1) and excel checkbook ledger (Worksheet #2) for the following activity. 1. Record the deposit in the checkbook ledger (Worksheet #1) and add it to the ending balance. 2. Record the deposit in the excel checkbook ledger (Worksheet #2) and add to the ending balance. (You can use the chart on page 12 Procedures when you the excel checkbook ledger as a guide if you need help. 3. Do both the paper and excel checkbook ledger totals match? What is the new balance? Activity #8 Reconciling the Bank Statement (This form is also available in EXCEL) Below is an example of a bank statement. Each month you will need to reconcile your bank statement to ensure you are keeping accurate records. Reconciling the bank statement allows you to keep track of all the checks that have been cashed, and ensure that all deposits were credited to the club checking account. The bank statement will almost always show a higher checkbook balance than the balance that is recorded in the checkbook ledger(s). The reason for this discrepancy is because there may be checks that you have written, but the person you wrote the check to, has not cashed the check. You have already deducted the check from the bank account in the checkbook ledger, but the bank has not. There also may be deposits that have not yet been recorded at the bank. You have recorded them in the checkbook, but the bank had not put the money into the checking account by the date the statement was printed. Country Star Bank Bank Statement Clover County 4H October 20, Heart Road Page 1 of 1 Greenville, MN Classic Checking 9/17/20 Beginning Balance Deposit Checks/Other Debits /17/20 30 days in Statement Period Ending Balance Deposits/Other Credits Description Date Amount Deposit 9/10/ Other Debits Checks listed in numerical order (*) Denotes gap in sequence Check Number Date Amount 101 9/8/ * 10/ Experience 1: Understanding the Bank Statement (above) 1. What is the beginning balance of the bank statement? 2. What is the ending balance on this statement? 3. How many deposits are recorded on this statement? 4. How many checks have been cashed on this statement? 14

17 Experience 2: Reconciling the Excel Checkbook Ledger and Paper Checkbook Ledger You will need the bank statement on page 14 and Worksheet #1 for this activity. Paper Checkbook Ledger 1. Find the column in your paper checkbook ledger that has a mark along the top (Worksheet #1). 2. Look at the deposits/other credits portion of the bank statement. Put a in your checkbook ledger, under the checkmark column, in front of the deposit that matches the deposit listed on the bank statement. Put a behind each deposit on the bank statement after you have recorded it in the checkbook ledger so you know that you have recorded it. How much is that deposit? 3. Look at the Other Debits portion of your bank statement. Put a in your checkbook ledger, under the check mark column, behind each check you see listed on the bank statement. Put a behind each check on the bank statement after you have recorded it in the checkbook ledger so you know that it has been recorded. 4. What check number is listed in your checkbook ledger, but not listed on the bank statement? 5. What does the * symbol mean on the bank statement? You will need the bank statement on page 14 and Worksheet #2 for this activity. The excel checkbook ledger looks a little different than the paper checkbook ledger. The excel checkbook ledger has a separate form for each month. Only items recorded for the month of October are listed on Worksheet #2. The excel checkbook ledger is a record of the first day you started (October 1 st ) through the end of your term (September 30 th ). The paper checkbook ledger is a summary of all the transactions of the previous treasurer for the entire year and a continuation of transactions for your entire term, and you will pass it on to your predecessor. Excel Checkbook Ledger (Follow the same procedure as you did for the paper checkbook ledger). 1. Find the column in your excel checkbook ledger that has Cleared from Bank (Worksheet #2). 2. Look at the deposits/other credits portion of the bank statement. Put an (x)in your excel checkbook ledger, under the Cleared from Bank column next to any deposits that matches a deposit listed on the bank statement. Put a behind each deposit on the bank statement after you have recorded it in the excel checkbook ledger so you know that you have recorded it. 3. Look at the Other Debits portion of your bank statement. Put an (x) in your excel checkbook ledger under the Cleared from Bank column next to each check you see listed on the bank statement. Put a behind each check on the bank statement after you have recorded it in the excel checkbook ledger so you know that it has been recorded. 4. Was your deposit for on the bank statement? NOTE: Outstanding Checks and Deposits: At the end of each month you will run off a copy of the excel checkbook ledger and file it in your treasurer book. Check #102 and a deposit had not cleared the bank as of the last statement. When you receive your next bank statement you will have to go back to this form in the book and manually check off if you see that the deposit has been added and the check has been cashed. NOTE: Outstanding Checks: If you notice that a check has not been cashed for quite some time, you will need to call the recipient of the check and let them know they have a total of 90 days to cash the check from the time it was issued. If they do not cash the check in this time the check will become VOID. It is best practice to check for this every month. 15

18 Experience 3: Completing the Reconciliation Form (You will need a calculator for this activity). Now that you know what checks have cleared the bank, it is time to fill in the reconciliation form. This form can be found on the back of the bank statement, or you can use the Electronic Excel version. If using the excel version the computer will calculate all of the numbers for you. For this activity you will need the bank statement found on page 14, the paper checkbook ledger on Worksheet #1, and the Monthly reconciliation form found on page 17. Complete the activity by following the instructions in the box below. Steps for completing the Monthly Reconciliation Form Outstanding Deposits Record all deposits that are listed in your paper checkbook ledger, but are not on this bank (Located on upper left side of the statement in this section. (These deposits do not have a in front of them). Monthly Reconciliation Form) Total A Total all outstanding deposits and record in this box Outstanding Checks (Located on the bottom of the Monthly Reconciliation Form) Total B Steps to Reconcile/ Balance Account (Located on the upper right corner of the Monthly Reconciliation Form) List all checks that are recorded in the paper checkbook ledger that do NOT have a in the column that indicates the check has cleared the bank. Total all outstanding checks and record the amount in this box. 1) Record the ending balance from your paper checkbook ledger. 2) Record the number you have written in Total A 3) Record the number you have written in Total B 4) Record any bank fees 5) Record any interest earned 6) Take the total ending balance (1) subtract total outstanding deposits (2) add total outstanding checks (3) subtract bank fees (4) add interest (5) = equals adjusted balance (6) NOTE: (6) needs to equal bank statement ending balance. 1. Are there any bank fees on the bank statement? 2. Was there any interest earned on the bank statement? 3. Does the Adjusted Ending Balance match the ending balance on the bank statement? If they match you have done the work correctly. If they do not match you will have to check your work. 16

19 Monthly Reconciliation Form This form should be used each month to compare your bank statement ending balance and your checkbook register to make sure they are balanced or equal each month. Outstanding Deposits Record all deposits that are recorded in your checkbook ledger but are not on this bank statement. Date Total Outstanding Deposits Amount Total A Steps to Reconcile/Balance Account 1) Ending balance from your checkbook ledger 2) Subtract total outstanding deposits (Total A) 3) Add total outstanding checks (Total B) + 4) Subtract bank fees 5) Add interest earned + 6) Adjusted balance (should equal bank statement ending balance). = Outstanding Checks (Not included in your statement) Check # Written To: Amount Total Outstanding Checks Total B * Bank fees & interest earned will show up on your bank statement and should be recorded in your checkbook ledger AFTER you balance (reconcile) your account. 17

20 Activity #9 Preparing and Reading the Treasurer s Report It is important that you attend every club meeting and have a treasurer s report prepared. This will inform the club of all the income and expenses since the last club meeting. Members need to know how much money is in the club account so they can make decisions on what the club can afford when it comes to paying for club activities. Follow the directions in Experience 1 and 2 found on the next page to fill in the Monthly Treasurer Report below. Monthly Treasurer Report Treasurer's Report For: Date of Meeting (A) Beginning Balance (Previous meeting ending balance) Previous Meeting Date: Money Received since last meeting From For From For From For From For From For From For Total Money Received (B) Expenses paid since last meeting To For To For To For To For To For To For Total Expenses Paid ( C) Closing Balance: Submitted By: (A) Beginning Balance + (B) Total Money Received ( C) Total Expenses Paid = Closing Balance Treasurer's Name 18

21 Club Meeting Scenario You are about to attend the November 12 th club meeting and you need to prepare the treasurer report. You will need the paper checkbook ledger found on Worksheet #1 and the Monthly Treasurer s Report on page 18. Experience 1: Preparing the Monthly Treasurer s Report Steps to Prepare the Treasurer s Report Treasurer s Report For: List the date of the upcoming meeting (A)Beginning Balance List the Previous o The beginning balance for each month s report is the ending balance from the previous month s report. Since there is no previous treasurer s report look at the checkbook ledger(s) found on Worksheet #1 and #2 to find the ending balance of the last meeting. (Reminder, the last meeting was October 7 th ). Previous Meeting Date List the date of the last meeting October 7 th Money Received since last o Look at the October Itemized Income Form (Worksheet #1) meeting o Record all money received on or after October 7 th through November 12 th on the Treasurer s Report as shown on the Itemized Income Form. o Total all money received and record in box labeled Total Money Received (B). Expenses paid since last meeting o Look in the checkbook ledgers (Worksheet #1 & 2) and list any checks that have been written on or after October 7 th and record under Expenses paid since last meeting. o Total expenses paid and record in box labeled Total Expense Paid (C). Closing Balance o (A) Beginning Balance + (B) Total Money Received ( C) Total Expenses Paid = Closing Balance o The ending balance on this form should match the ending balance in your checkbook ledgers on (Worksheet #1 & 2) o If they match you did the work correctly. If they don t you need to check your work. Sign the Report Sign the report and file this document in the 3 ring binder treasurer book behind the Treasurer Reports Tab. Experience 2: Reading the Treasurer s Report at a Club Meeting When reading the Treasurer s Report at a club meeting you will read from the Monthly Treasurer Report Form. Use the monthly treasurer s report form on page 18 to complete this activity. Here is an example: o This is the treasurer report for (read date). o The balance as of the last report, was (read the amount), on (read the previous club meeting date). o Money received since last meeting was (read each amount, who it was from and what it was for). o The total amount received was (read the amount Box B). o Expenses paid since last meeting were (Read each amount, who the check was written to, and what it was written for). o The total amount spent was (read the amount in box C). o Our closing balance is (read the amount). Present any outstanding bills that need to be paid: (Look at example below) o We have a bill from Ace Hardware_ for _43.24 (amount) for _the club flower box (what it was for). Have club members pass a motion to approve payments before you pay the bill if it wasn t previously budgeted. 19

22 Answer Key Activity #1 Reading the MN 4H Annual Club Financial Report Form (Page 6) 1. What is the ending balance in the club checking account? What is the ending balance in the club savings account? What is the total of the club s savings and checking? Activity # 2 Verifying the Ending/Beginning Balance in the Checkbook Ledger (Page 6) 1. What is the ending balance in the checkbook ledger on as of September 30th? Does the ending balance in the checkbook ledger match the Ending Checking Balance on the MN 4H Annual Club Financial Report : Yes 3. What will be the beginning checkbook balance on October 1st Activity #3 Approving the Club Proposed Budge (Page 7) 1. What is the total proposed income? List one proposed expenses? Any of the following answers: Club meetings, Club Outings, Service Learning, Scholarships, Club Insurance, postage, etc 3. What is the beginning balance? Does it match Box F, Total Checking & Savings on Form C, page 6?_Yes_ Activity #4 Handling Income (Page 8) Answers for Worksheet #1 Itemized Income Form Date of Deposit Date Received From Description/Event Amount Check # Cash Receipt # 10/7/2012 Mary Farmer Bowling money for Mary, Danny, Joe and Ann Farmer 10/7/2012 Larry Fields Bowling money for Larry, Karl, and Betsy Total Deposit Experience 2: Handling Income Received in Cash (page 8 & 9) The receipt you wrote out should look similar to the one below. Receipt 1200 Date Received: October 7, 20 Received from: Larry Farmer Eighteen and 00/100Dollars For: Bowling Money Karl, Betsy, Larry Treasurer Signature Keep original receipt in book. Give yellow copy to customer. Attach pink to your records. Answer # 4 (page 10) 20

23 o o o Original Copy Keep in receipt book Yellow Copy Give to Customer Pink Copy Attach to the Itemized Income Form (Keep for your records). Experience 3: Finalizing the Itemized Income Form for Deposit (page 9) 1. Total the Itemized Income Form. What is the grand total? Activity #5 Paying Expenses Experience 1: Writing a Check (page 10 & 11) Country Clover 4H Club 103 Date: October 10, 20 Pay to the Order Of Kenmore Office Supply Twentythree and 27/100 Country Start Bank Dollars Memo: Club Treasurer Supplies signature: Treasurer Signature_ : : 103 Trevor Texas 1. Who will sign the check? The Youth Treasuer and the Adult Advisor, or the other adult signer on the account. 2. Write the purpose for the receipt on the receipt. What is the purpose of the receipt? Treasurer Supplies 3. Record in paper checkbook ledger (Worksheet #1). RECORD ALL CHARGES OR CREDITS THAT AFFECT YOUR ACCOUNT NUMBER DATE TRANSACTION DESCRIPTION PAYMENT, FEE, WITHDRAWAL () DEPOSIT, CREDIT (+) BALANCE 101 9/7/ Pizza Ranch Club meeting and celebration 102 9/7/ Sue Smith Club Banner Supplies 9/20/ Deposit Donations for Operation Military Kids /10/ Kenmore Office Supply Supplies for Club Treasurer Activity #6 Recording Expenses in the Excel Checkbook Ledger (page 12) 1. Record check 103 that you wrote to Kenmore Office Supply in the Checkbook Ledger above. What color is the column that you wrote the amount of the check in? Yellow 2. Subtract the amount of check 103 from the beginning balance. What is your new balance? Date Check Deposits (Income): Income: Write detailed description of Expenses Income Checkbook Write "Deposit" in space below. Number where income for the deposit came Amount of Amount of Balance Payments Made (Expenses): Write who check is payable to. from. Expenses: Write detailed Check Deposit description of expense. 10/1/ Starting Balance N/A N/A N/A 10/10/ 103 Kenmore Office Supplies Activity #7 Preparing and Making the Deposit Club Treasurer Supplies Cleared from bank 21

24 Experience 1: Preparing the Deposit Ticket (page 13) 7.Does the deposit ticket match the itemized income form? Yes Clover County 4H Club Date: 10/15/ Cash _ Sign here for cash received (if required) : : : Sub Total Less Cash Received Total Deposit Experience 2: Recording the Deposit in both the Excel Checkbook Ledger and Paper Checkbook Ledger. Look to see if your excel checkbook ledger on page 12 matches the ledger below: Date Check Deposits (Income): Income: Write detailed description of Expenses Income Checkbook Write "Deposit" in space below. Number where income for the deposit came from. Amount of Amount Balance Payments Made (Expenses): Write who check is payable to. Expenses: Write detailed description of Check of expense. Deposit 10/1/ Starting Balance N/A N/A N/A 10/10/ 1120 Kenmore Office Club Treasurer Supplies Supplies 10/15/ Deposit See itemized income form Cleared from bank Look to see if your paper checkbook ledger on page 6 matches the ledger below: NUMBER DATE TRANSACTION DESCRIPTION PAYMENT, FEE, WITHDRAWAL () DEPOSIT, CREDIT (+) BALANCE 101 9/7/ Pizza Ranch Club meeting and celebration 102 9/7/ Sue Smith Club Banner Supplies 9/20/ Deposit Donations for Operation Military Kids /10/ Kenmore Office Supplies Supplies for Club Treasurer 10/15/ Deposit Farmer and Fields Bowling Money Activity #8 Reconciling the Bank Statement 22