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Alumni Accounting
Best Practices
Jennifer Stephens
Tammie Hill
Rip Britton
Auburn Alumni Association
2016 Club Leadership Conference
Accounting 101
Topics To Be Covered
•Best Practices for Auburn C...
Auburn Alumni Association
2016 Club Leadership Conference
Club Accounting 101
General Internal Controls
•Address club risk...
Auburn Alumni Association
2016 Club Leadership Conference
Club Accounting 101
Bank Accounts & Financial Transactions
•Dual...
Auburn Alumni Association
2016 Club Leadership Conference
Club Accounting 101
Bank Accounts & Financial Transactions
•Pres...
Auburn Alumni Association
2016 Club Leadership Conference
Club Accounting 101
Bank Accounts & Financial Transactions
•Payp...
Auburn Alumni Association
2016 Club Leadership Conference
Club Accounting 101
Financial Statements
•Recommend using QuickB...
Auburn Alumni Association
2016 Club Leadership Conference
Club Accounting 101
Special Events
•Petty cash log
• Use to trac...
Auburn Alumni Association
2016 Club Leadership Conference
Club Accounting 101
Forms
Petty cash log
Form can be found on th...
Auburn Alumni Association
2016 Club Leadership Conference
Club Accounting 101
990 – Filing Reminder
• 990 IRS filing requi...
Auburn Alumni Association
2016 Club Leadership Conference
Completing Club
Fundraising Forms –
Silent Auctions
Jennifer Ste...
Auburn Alumni Association
2016 Club Leadership Conference
Auctions
Topics To Be Covered
•Auctions
•AAAAuction Approval Pro...
Auburn Alumni Association
2016 Club Leadership Conference
Auctions
Generally, the club conducts these activities,
collects...
Auburn Alumni Association
2016 Club Leadership Conference
Auctions
The Auburn Alumni Association
(AAA) is a 501 ( c) 3 tax...
Auburn Alumni Association
2016 Club Leadership Conference
Auctions
Pros and Cons of an AAA
Administered Auction
5
Auburn Alumni Association
2013 Club Leadership Conference
Auctions
Pros
•Donors may receive a tax deduction
for the portio...
Auburn Alumni Association
2016 Club Leadership Conference
Auctions
AAAAuction Approval Process
Auctions can be covered und...
Auburn Alumni Association
2016 Club Leadership Conference
Auctions
AAAAuction Approval Process
If your club will be using ...
Auburn Alumni Association
2016 Club Leadership Conference
Auctions
Auction Items
The IRS presumes that purchasers of aucti...
Auburn Alumni Association
2016 Club Leadership Conference
Auctions
Required Forms When AAAAdministers
Your Auction
Silent ...
Auburn Alumni Association
2016 Club Leadership Conference
Auctions
22
Auburn Alumni Association
2016 Club Leadership Conference
Auctions
Required Forms When AAAAdministers
Your Auction
Bid Sum...
Auburn Alumni Association
2016 Club Leadership Conference
Auburn Alumni Association
2016 Club Leadership Conference
Auctions
After the Auction
Silent Auction Bid Sheets
Bid Summa...
Auburn Alumni Association
2016 Club Leadership Conference
Auctions
Summary
•Direct contributions to a club’s scholarship s...
Accounting Best Practices and Silent Auctions
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Accounting Best Practices and Silent Auctions

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This presentation was presented at the 2016 Club Leadership Conference and contains vital information concerning accounting practices and silent auction procedures for Auburn Clubs.

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Accounting Best Practices and Silent Auctions

  1. 1. Alumni Accounting Best Practices Jennifer Stephens Tammie Hill Rip Britton
  2. 2. Auburn Alumni Association 2016 Club Leadership Conference Accounting 101 Topics To Be Covered •Best Practices for Auburn Clubs’ Financial Activities •Bank Accounts and Financial Transactions •Financial Statements •Special Events •Petty Cash Form •Rip Britton – Birmingham Club embezzlement 2
  3. 3. Auburn Alumni Association 2016 Club Leadership Conference Club Accounting 101 General Internal Controls •Address club risk of misappropriation of funds • Establish internal controls • Monitor club receipts and disbursements are properly recorded •Treasurer – CPA’s and Accountants •Employer Identification Numbers (EIN) • Bank account should be set up under the club’s EIN • Apply for EIN at www.irs.gov 3
  4. 4. Auburn Alumni Association 2016 Club Leadership Conference Club Accounting 101 Bank Accounts & Financial Transactions •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 4
  5. 5. Auburn Alumni Association 2016 Club Leadership Conference Club Accounting 101 Bank Accounts & Financial Transactions •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 and are not recommended 5
  6. 6. Auburn Alumni Association 2016 Club Leadership Conference Club Accounting 101 Bank Accounts & 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) 6
  7. 7. Auburn Alumni Association 2016 Club Leadership Conference Club Accounting 101 Financial Statements •Recommend using QuickBooks Pro • 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 7
  8. 8. Auburn Alumni Association 2016 Club Leadership Conference Club Accounting 101 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” 8
  9. 9. Auburn Alumni Association 2016 Club Leadership Conference Club Accounting 101 Forms Petty cash log Form can be found on the Club Resource Page Date: ____02/14/2014_______________________ EVENT: _________Silent Auction_________________________________________ Purchaser Name Item Description Price/each Quantity Sold Subtotal Registration Fee Total sale JOHN H DOE Lawn Services 45 1 45 10 55 MARY A WESLEY 10 10 MARK G SMITH 10 10 75.00$ 50.00$ 125.00$ Before the event, count your cash box and write down the amount on the "beginning cash" line. Also write your event/date at the top of the form. During the event record each sale and total the amount sold at the end of the event. Then add the two totals and this should match your cash in the box. Please initial that you have completed this form and return with petty cash box to ___________________________. Initial: Total Incoming Money Beginning Cash Total Amount in Cash Box 9
  10. 10. Auburn Alumni Association 2016 Club Leadership Conference Club Accounting 101 990 – 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 FYE12/31/2015; due 5/15/2016.) 10
  11. 11. Auburn Alumni Association 2016 Club Leadership Conference Completing Club Fundraising Forms – Silent Auctions Jennifer Stephens Tammie Hill
  12. 12. Auburn Alumni Association 2016 Club Leadership Conference Auctions Topics To Be Covered •Auctions •AAAAuction Approval Process •Auction Items •Auction Forms •After the Auction •Summary 2
  13. 13. Auburn Alumni Association 2016 Club Leadership Conference 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 can not give a donor a tax deduction. 3
  14. 14. Auburn Alumni Association 2016 Club Leadership Conference Auctions The Auburn Alumni Association (AAA) is a 501 ( c) 3 tax exempt entity and can give donors a tax deduction. AAA can administer your clubs auctions so that donors can receive a tax deduction if applicable. 4
  15. 15. Auburn Alumni Association 2016 Club Leadership Conference Auctions Pros and Cons of an AAA Administered Auction 5
  16. 16. Auburn Alumni Association 2013 Club Leadership Conference Auctions Pros •Donors may receive a tax deduction for the portion paid above the fair market value. • AAA will issue tax receipts when applicable. Cons •AAA 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. 6
  17. 17. Auburn Alumni Association 2016 Club Leadership Conference Auctions AAAAuction Approval Process Auctions can be covered under the AAA 501 (c) 3 status if approved by, AAA - contact Steve Inabinet, before the auction is held (4 weeks). The following information will need to be obtained for each auction: – The nature, timing, location of the event and any solicitation materials 7
  18. 18. Auburn Alumni Association 2016 Club Leadership Conference Auctions AAAAuction 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 or AAA. 8
  19. 19. Auburn Alumni Association 2016 Club Leadership Conference Auctions Auction Items The IRS presumes that purchasers of auction items made a purchase, not a gift. In order for a purchaser to be able to prove the intent to make a gift, he/she must prove the purchase was knowingly made for more than the value. This can be satisfied by: – Providing a “catalog” listing and describing auction items and their value – For silent auctions, listing the value on the bid sheet Often a “minimum bid” is established for silent auctions. This is not the same as the fair value. 9
  20. 20. Auburn Alumni Association 2016 Club Leadership Conference Auctions Required Forms When AAAAdministers Your Auction 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. All forms are available on the club resources page 10
  21. 21. Auburn Alumni Association 2016 Club Leadership Conference Auctions 22
  22. 22. Auburn Alumni Association 2016 Club Leadership Conference Auctions Required Forms When AAAAdministers Your Auction 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 AAA should balance to this form. All forms are available on the club resources page 12
  23. 23. Auburn Alumni Association 2016 Club Leadership Conference
  24. 24. Auburn Alumni Association 2016 Club Leadership Conference Auctions After the Auction Silent Auction Bid Sheets Bid Summary Sheet (with payments attached) Submit to Steve Inabinet within 2 weeks of the auction 14
  25. 25. Auburn Alumni Association 2016 Club Leadership Conference Auctions Summary •Direct contributions to a club’s scholarship should be made payable to Auburn University Foundation •Silent auctions administered by AAA, 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 15

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