CLUB ACCOUNTINGBEST PRACTICES
JENNIFER STEPHENS
TAMMIE HILL
TOPICS TO BE COVERED
• Best Practices for Auburn Clubs’ Financial Activities
• Bank Accounts and Financial Transactions
• Financial Statements
• Special Events
• IRS Form 990
• Club Annual Report
GENERAL INTERNAL CONTROLS
• Address club risk of misappropriation of funds
• Establish internal controls
• Monitor club receipts and disbursements are properly recorded
• Treasurer – Accounting / Finance / Banking Professionals
• Employer Identification Numbers (EIN)
• Bank account should be set up under the club’s EIN
• Apply for EIN at www.irs.gov
BANK ACCOUNTS
• Dual signatures and/or dollar limits • President and Treasurer
• Treasurer and Co-Treasurer
• Large clubs $500
• Small clubs $250
• Bank Reconciliations
• Prepared monthly by Treasurer
• Reviewed by President
BANK ACCOUNTS
• Presidents should periodically open bank statements before
the Treasurer reconciles the bank account (review check
images)
• Online Banking – President review transactions on a
monthly basis
• Club credit cards and debit cards are a risk
FINANCIAL TRANSACTIONS
• Paypal account transactions should be periodically
reviewed by Treasurer and another club officer
• Bank deposits should be made the next business day after
receiving funds
• Detailed invoices should be submitted to the Treasurer for
payment processing (ex. Amazon)
FINANCIAL STATEMENTS
• Recommend using QuickBooks
• Process checks
• Prepare bank reconciliations
• Prepare financial statements
• Other option is to use excel spreadsheets to record financial
transactions
• Financial Statements
• Prepared quarterly by Treasurer
• Reviewed by President and club’s board of directors
SPECIAL EVENTS
• Petty cash log
• Use to track cash transactions
• Two or more people should count monies before leaving events
• Documents confirming deposits should be presented at the next board
meeting
• Review state regulations before holding “Raffles” & “Game of
Skill”
• Club insurance policy
•Forms available on the online portal
FORMSPetty cash log
IRS 990 – FILING REMINDER
• 990 IRS filing requirements:
• Gross receipts ≤ $50,000 – 990N(e-postcard)
• Gross receipts >$50,000 but <$ 200,000 and total assets <$500,000
– 990EZ or 990
• Gross receipts ≥ $200,000 or total assets ≥ $500,000 – 990
• Returns must be filed by the 15th of the fifth month after
the club’s fiscal year end. (Example FYE12/31/2017;
due 5/15/2018.)
CLUB ANNUAL REPORT
• Financial Statement Section
• Balance Sheet
• Income Statement
• Due December 2018
AUCTIONSJENNIFER STEPHENS
TAMMIE HILL
TOPICS TO BE COVERED
•Auctions
•Auburn Alumni Association Auction Approval Process
•Auction Items
•Auction Forms
•After the Auction
•Summary
AUCTIONS
• Generally, the club conducts these activities,
collects and deposits the receipts, pays the related
costs and then sends the net proceeds to the
Auburn University Foundation (AUF) as a
contribution from the club.
• Since clubs are a 501(c)7 social club, they cannot
give a donor a tax deduction.
AUCTIONS
• The Auburn Alumni Association is a 501(c)3 tax-exempt entity and can give donors a tax deduction.
• The association can administer your clubs auctions so that donors can receive a tax deduction if applicable.
PROS AND CONS OF AN AUBURN ALUMNI ASSOCIATION ADMINISTERED AUCTION
Pros
• Donors may receive a tax
deduction for the portion paid
above the fair market value.
• Auburn Alumni Association
will issue tax receipts when
applicable.
Cons
• Auburn Alumni Association is
required to remit sales tax on
all auction items sold. This will
result in a decrease in your net
proceeds.
• Unless your auction items are
sold above the fair market
value, no tax deduction will be
given to the purchaser.
AUBURN ALUMNI ASSOCIATION
AUCTION APPROVAL PROCESS
• Auctions can be covered under the Auburn Alumni
Association’s 501(c)3 status
• Contact Steve Inabinet, before the auction is held (4 weeks).
• The following information will need to be obtained for each
auction:
Date and location of the auction
Solicitation materials used referencing the auction
AUBURN ALUMNI ASSOCIATIONAUCTION APPROVAL PROCESS
If your club will be using solicitation materials to promote your
silent auction, your materials should contain the following:
1. A specific statement of the charitable use of the auction proceeds. If
for the endowment, it must specifically state this. If split between
the endowment and the spendable fund, the division must be
specific, such as “divided equally between…” or “first $xx to the
spendable fund, with the balance to the endowment…”
2. Instructions indicating that checks be made payable to the “Auburn
Alumni Association”.
AUCTION ITEMSIn order for any portion of an auction purchase to be
considered a gift by the IRS, the purchaser must knowingly
have paid more than the fair market value. This can be
satisfied by:
A bid sheet listing the value (or)
A “catalog” listing and describing auction items and their value
Often a “minimum bid” is established for silent auctions. This is not the same as
the fair value.
ALUMNI ASSOCIATION ADMINISTERED AUCTIONS
Silent Auction Bid Sheet
This form is used during the auction, where purchasers record their name and bid amount. Also listed on the top of the form you will state the fair
market value of the auction item.
AUBURN ALUMNI ASSOCIATION ADMINISTERED AUCTIONS
Bid Summary Sheet
After the auction, you will complete the bid summary form. This form
identifies the purchaser, the purchase price, the item, and the item’s value.
All money submitted to the Auburn Alumni Association should balance to
this form.
AFTER THE AUCTION
Silent Auction Bid Sheets
Bid Summary Sheet (with payments attached)
Submit to Steve Inabinet
within 2 weeks of the auction.
334-844-2995
SUMMARY
• Direct contributions to a club’s scholarship should be made payable to Auburn University Foundation
• Silent auctions administered by the Auburn Alumni Association, checks should be made payable to the “Auburn Alumni Association”
• Contact Steve Inabinet four weeks prior to the auction, and an auction packet will be emailed to you
• After the auction, paperwork and money is to be turned into Steve Inabinet within two weeks of the auction