Virginia 4-H Financial Management

for 4-H Clubs

Agenda

10 a.m. Welcome and IntroductionsBackground TimelineTypes of AccountsClosing Accounts

11:00 am Making Deposits12 p.m. Lunch1 p.m. Expenditures2 p.m. Using Cash3 p.m. Foundation Accounts3:30 p.m. Adjourn

Timeline

• Training through October 30th

• Post procedures and forms on Intranet by October 25th

• 4-H Clubs/Organizations begin closing accounts October 25th

• All accounts closed and funds transferred to new 4-H Accounts by December 1st

Types of Accounts

• Unit Operating Accounts• Local Agency Accounts• 4-H Agency Accounts• 4-H Foundation Accounts• 501 (c) (3)

Closing Accounts

• Club requests for bank to close account• Cashiers Check for balance• Bank letter showing account closed• Deliver check to the Extension Office• Amount of deposit recorded on log• UAA makes deposit and records in Quicken• Send copy of bank letter and copy of final bank

statement to the State 4-H Office• File a copy of bank letter and statement in unit office• Club keeps original copy of bank letter and statement

Club Income

• Fees• Donations for which the donor is not seeking a

gift receipt. (ex. Carwash donation, raffle)• Gifts- Donations requiring tax receipt• Fundraising• Sales tax must be paid on items for re-sale at

time of initial purchase.

Club Receipts

• When required?• Fees for club activities• Pre-sale fundraisers (ex. Popcorn, pizza kits,

magazines, etc). A copy of the order form marked paid, serves as a record of sale.

• Sale of items (ex. Clothing, Christmas trees, Plants, etc)

• Silent Auctions• Concessions, car washes-Not required

Income Management

• All sales are managed by the individual club or group

• Deposit tickets are prepared by the club • Deposits made directly to the bank in tamper

proof bag• Funds must be deposited within 24 hours of

receipt if daily receipts exceed $400• Funds must be deposited weekly regardless of

amount received

Deposits

• Bank validated deposit ticket and tear-off from tamper proof bag is taken to the Extension Office for crediting to club account within 3 days of deposit

• Funds received log is filled out • A copy of the deposit ticket is made and given to the

club• Original deposit ticket is filed in unit office • UAA enters deposit into quicken and also on Banner

for Wells-Fargo customers

Deposit Accounting

• Revenue Account Code – 0499 4H Clubs• Wells-Fargo Account Customers• Fill out pre-numbered deposit ticket• http://www.intra.ext.vt.edu/policies/• Non-Wells Fargo Account Customers

Expenditures

• Payment can be made through:• Personal Reimbursement (HokieMart)• Travel Reimbursement• Direct Orders (HokieMart)• Direct Billing• Pre-payment to vendors• P-Card Purchase by Agent

Approval

• All 4-H Club Expenditures must be approved in advance by the membership and recorded in meeting minutes

• Pre-approval ensures that the club has adequate funds to cover the expense

Reimbursement

• Original itemized receipt along with a reimbursement form, signed by the club leader, approving payment must be provided to the UAA. Printed receipt if purchased on-line or store receipt if purchased in-store.

• 4-H Agent initials form for verification if they are not UC• UAA enters reimbursement in HokieMart for payment.

UC approves request. • UAA files documentation in club file• A copy of documentation may be provided to club • Individual is paid within 30 days of approval by the UC.

Travel Reimbursement

• All receipts for travel are submitted to the UAA for completion of travel reimbursement form

• 4-H Agent initials form for verification if they are not UC

• UC signs travel form and it is sent to VT for payment• UAA records payment in Quicken • Payment within 30 days of receipt of form in

controllers office• Check is mailed to home of individual

Direct Orders

• Items ordered in HokieMart for club needs• Must be done in advance so pre-planning is

required• Orders shipped to the Extension Office to be

picked up by Club representative• Vendors providing an invoice may also be paid

through HokieMart• UAA records payment in Quicken

Direct Billing

• Many hotels will allow direct billing to prevent up-front payment by volunteers.

• Contact facilities directly to determine if they allow direct billing

• Billing processed through VT Controllers Accounts Payable office

• Payment is taken directly from 4-H fund• UAA debits payment in Quicken• Pre-planning needed as it may take up to 30 days to set

up accounts

Pre-Payment to Vendors

• Processed through HokieMart if amount owed is known ahead of time and an invoice for payment can be provided for full amount owed

• Examples are Judges, Bus Drivers, Club sponsored camps

• Allow 15 days for check to be mailed to Extension Office

• UAA debits amount from club account in Quicken

P-Card Purchase

• Use for on-line or in-store purchases• Only Agents may use a P-Card• Clubs must make prior arrangements in order

to use this method of payment• Purchases must be pre-approved by Agent• Payments are directly billed to the club

account and are debited in Quicken by UAA

Use of Cash

• Change Fund• Disbursement Fund

• Cash funds may not be used for purchasing items for club use

Change Fund

• Up to $200• Initially requested by Agent• Approved by District Director, CALS Finance,

VT Controller and VT Bursar• Allow 45 Days to establish fund• Check issued to requesting Agent• Funds placed in locked and secure location• Agent is responsible for Change Fund

Change Fund

• Clubs make request 7 days prior to the event• Complete temporary change of custodian form placing

funds in custody of the volunteer• Funds placed in tamper proof bag• Change fund returned to Extension Office within 3

days of event along with bank validated deposit ticket for funds raised

• Net deposit entered into Quicken by UAA• Temporary change of custody form completed, placing

funds back in custody of Agent

Change Fund

• Funds may be temporarily transferred to another employee if the permanent custodian will be out of office for vacation

• When permanent custodian returns, funds must be transferred back into their custody

• Fund must be audited once monthly by permanent custodian and another Agent

Disbursement Fund

• Cash fund for when larger amounts of cash are needed

• Examples, livestock shows, awards for 4-H achievement

• Up to $2,000• Must be requested by an Agent• Approved by District Director, CALS Finance,

VT Controller and VT Bursar• Allow 45 days to receive fund

Disbursement Fund

• A complete description of funds needed and purpose must accompany the original request

• Once approved, check is sent to the Extension Office payable to the Extension Agent making the request

• Check is cashed and placed in a locked and secure location

Disbursement Fund

• Funds are transferred to Volunteer using change of custodian form

• Funds become the responsibility of individual with custody

• For participants earning $50 or more in awards, a W-9 must be completed and participant will be paid by check as a vendor in HokieMart. W-9 is only completed one time

Disbursement Fund

• Participants earning less than $50 may be paid in cash the day of show. Must sign log showing receipt of cash.

• After event, all unused funds are returned to the Extension Office along with a completed participation spreadsheet showing those who received cash

• A separate log will be completed for participants earning $50 or more and will be entered in HokieMart by UAA for payment

Disbursement Fund

• A change of custodian form is completed to transfer custody of funds from volunteer back to Agent who requested funds.

• Agent makes payment of unused cash by using the on-line sytem through HokieSpa.

• UAA completes HokieMart ISR to the Bursars Office Vendor Id to repay loan for actual disbursements made.

Disbursement Fund

• An image of supporting documentation must be attached in HokieMart to the requisition

• HokieMart requisition is approved by UC or DD as appropriate

• UAA debits club account for actual funds disbursed, less unused cash repaid.

Quicken Review

• Provide Quicken report to each 4-H club/organization monthly

• Provide Quicken report to the 4-H agent

Foundation Accounts

• Account allows 4-H clubs/groups to receive gifts from donors who desire a tax deduction for their gift.

• Gifts may be monetary or in-kind• ONLY avenue for 4-H clubs to accept gifts unless

they are a 501 (c) (3)• Gifts are subject to a one-time reinvestment fee• No fee assessed on monies deposited as other

income. (See foundation handbook)

Foundation Accounts

• Endowment Funds• $25,000 fully funds an Endowment• UAA records deposits and payments for

foundation accounts in a separate Quicken account

• Summary of account is provided to clubs monthly