FINANCE

Area Treasurer: Liz Maki lizmaki@yahoo.ca

Hello and happy new year!

I just wanted to take a moment to introduce myself to those of you that don't know me.

I am looking forward to getting to know all of you as I take on the position of Tamarac area treasurer. I have been in Guiding for 24 years, 12 as a girl and 12 as a guider. I live in Gibbons but am originally from Ontario. I am currently a Guide leader and Pathfinder leader in Gibbons. I am an apprentice baker-pastry chef but am currently working at the seniors lodge in Gibbons, because of surgery on my wrist. I have a dream one day of opening my own bakery! I love to camp and try to plan at least three camps a year for each of my units. I also like to golf, curl, snowmobile, read and spend time with my friends.
I look forward to working with all of you, if you need me for anything my contact info is below.
Yours in Guiding,
Liz

Policies:

- Spring Cookie payments
- Mid-year financial review or audit
- Fall Cookie payments
- Annual financial audit
  • All accounts must follow the naming convention: Girl Guides of Canada - # Location Branch
  • Require at least three signing authorities with at least one from Area Council: Area Commission or Deputy Commissioner
  • Require dual cheque signatures to authorize payment
  • Financials can be prepared using either:
  • Hard copy forms – these can be purchased through the Girl Guide Store
  • Soft copy forms – using templates provided by National or Financial Template
  • Ledger – this is the foundational document used to track all financial transactions; entries are recorded based on the transaction date: date the deposit is prepared or cheque is written.  This is NOT the date the funds flow through the bank account.
  • Bank Statement – this should be received monthly from the financial institution and is used to prepare bank reconciliations.
  • Bank Reconciliation – this is a report compiled the compares the running balance of the financial ledger to the actual funds within the account and makes note of transactions outstanding; performing a bank reconciliation checks the completeness and accuracy of the financial information within the ledger.
  • Receipt Book – this provides supporting documentation for funds received.
  • Cheque Book – this is used for payment of funds.
  • Financial Report – this report provides a summary of funds received (revenues) and payments made (expenses); this is prepared for financial review purposes.
  • Financial Review Checklist – this is used to perform the financial audit.

Managing Revenues

  • Cookies: two sales campaigns
  • Registration: received from Girl Guides of Canada with payments occurring centrally during on-line registration
  • Camp or Sleepovers
  • Dues
  • Individual cookie sales – cookies sold by the box do not require receipts; cookies sold by the case should be receipted.  Tracking of all cookie cases from the cookie receiver through the unit to parents must be performed using the cookie tracking forms:
  • Effective October 2012, GST MUST be charged on events – see GST for more information.
  • All funds received must be deposited
Ledger Transaction
Enter TOTAL under BANK DEPOSIT
+ AMOUNT (excluding GST) under the appropriate REVENUE COLUMN
+ GST under GST EVENT (if applicable)
 

Managing Expenses

  • Cookies
  • Program
  • Camp
Ledger Transaction
Enter TOTAL under BANK CHEQUE
+ AMOUNT (excluding GST) under EXPENSE COLUMN
+ GST under the appropriate GST COLUMN
  • GST claimable at 100% - GST for expenses related to an event for which GST was charged can be claimed at 100%
  • GST claimable at 50% - GST for expenses not related to an event for which GST was charged can be claimed at 50%
  • GST paid to Girl Guides of Canada – this cannot be claimed

Managing Problem Cheques

NSF Cheques:
  • Reverse out the deposit (negative deposit) in the revenue column and in the bank deposit column
  • Obtain a new cheque covering the original cost plus any potential service fees and deposit as usual
Expired (Stale dated) Cheques:
  • Reverse out the expense (negative expense) in both the expense column and bank cheques column
  • If necessary, issue another cheque
  • Reverse out the expense (negative expense) in both the expense column and bank cheques column
Returned Cheques:
  • Reverse out the expense (negative expense) in both the expense column and bank cheques column

Reporting

Financial Report
Financial Review
  • Deposit book/slips
  • Bank statements
  • Financial ledger
  • All supporting receipts/documentation
  • Completed financial report
  • Checklist (front page to be completed)

Budgeting

GST

There are two key financial policy documents:

Annual Cycle:

The Girl Guides of Canada financial year runs from January 1 to December 31 and the annual financial cycle is comprised of 4 main events:

Membership fees for registration are paid from Area to Districts when received from Province.  Fees for subsidized girls and adult members are billed to Area, from Province, twice per year.  Subsidization from Province for rental subsidies and for subsidized girls are distributed as received.

 

Account Information:

Document Overview:

The three most common funds received are:

All funds received by the unit must be receipted with the following exceptions:

Cookie Inventory Record

Cookie Record Form

Descriptions of Revenue Categories are located on page 29 of the Standard Financial Reporting Manual.

The three most common costs are:

All expenditures should be paid for using a cheque with dual signatures.

All expenditures require supporting receipts.

There are three different types of GST:

Descriptions of Expense Categories are located on page 29 of the Standard Financial Reporting Manual.

Prior to preparing a financial report, the following checks should be done to verify that the information contained within the financials is complete and accurate.

1)    Double check the Running Balance

Running balance (ledger) = Opening Balance + Bank Deposits – Bank Cheques

2)    Prepare a Bank Reconciliation

Bank Balance + Outstanding Deposits – Outstanding Cheques = Running Balance

The total from each ledger column is carried forward to the Financial Report to prepare a summary of funds received (revenues) and payments made (expenses).

The statement of funds ending balance should align to the running balance from the financial ledger.

A financial review, or audit of the financials, is required on an annual basis following the December 31 year-end or whenever a change in treasurer occurs.  This is a comprehensive review that requires the following documents:

Mid-year Review

The program year for Girl Guides of Canada runs September through till May, June, July or August depending on the branch and unit.  Often a change in treasurer will occur over the summer months requiring a full audit of the financials.  Where a change in treasurer does not occur, a mid-year financial report and copy of the June 30 bank statement for each account (unit and district) must be submitted to Area.

A formal budget is required at the District level but should also be used by units to plan out financial requirements for the year, estimate cookie sales required to fund activities and in general determine what activities units can participate in as part of their program.  The purpose of funds raised by Girls Guides of Canada is to support the activities and programming of Girls: funds raised by the girls should be used by the girls to enable to complete programming and develop the skills and values upon which Girl Guides was founded.

The key to planning the year is to ensure that an appropriate level of funds remains at the end of the program year so that the unit can start back up in September.

Beginning $$$ + Cookies + Registration + Other fees for camps, sleepover or program – Expenditures for program, camps and supplies = Ending $$$

Where Ending $$$ is enough funds for the unit to start the following year.

Girl Guides of Canada policy is that funds on hand are equivalent to at least three months worth of operating expenses but are not more than 12 months worth of operating expenses.

The following are some rough guidelines to assist in determining whether or not the unit has appropriate funds on hand.  Please note these are just guidelines.

Sparks / Brownies: $400

Guides: $500-$1000

Pathfinders / Rangers: $1500

Effective October 15 2012

GST Policy

GST Wookbook

KEY NOTES

GST is now required to be collected on the following funds received through GGC:

- Crest sales (unless the amount collected = amount paid for the crest + GST)

- All events for members >14 in age* where a fee is charged to attend

- Overnight events (events longer than 8 hours) for members <14* where a fee is charged to attend

An event is considered to be for members > 14 if at least one attendee being charged a fee to attend the event is over the age of 14; this does not apply if that one attendee has a recognized disability.

GST is not required for fundraising events.

For events where GST is collected, GST paid for the associated expenses will be claimed at 100% instead of at the 50% rebate rate

GST rebates are still available for other expenses not associated with the above; these are reimbursed at 50% of GST paid and cannot be collected on GST paid to Girl Guides of Canada

CALCULATION

There are two methods for calculating GST:

1. Add it to your fee: Where GST = 5% your TOTAL PRICE = FEE X 1.05

2. Include it in your fee: GST = FEE /1.05

RECORDING GST

GST collected for events should be tracked as a new Revenue Category - GST Events

GST paid related to those events should be tracked as a new Expense Category - GST Events

Other GST recoverable and GST total must still be tracked - GST recoverable is the GST paid to organizations other than GGC and can still be claimed at 50%; GST paid to GGC cannot be claimed for rebate purposes

Receipts to parents should include the following GST number:

GST #118938554RT0058

REPORTING GST

The Remittance form is included in the GST Policy; soft copies are included in the GST workbook.

FORMS must be submitted to AREA by the 10th of the following month (ie. For an October event the forms must be submitted by November 10).  Forms are collected at Area and submitted to PROVINCIAL OFFICE; forms must be submitted by the 15th of the month.

ORIGINAL receipts to be photocopied and a copy of the GST form and receipts is to be kept by the Unit.

ORIGINAL receipts are to be forwarded with the GST forms.