Finance


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Develop a Budget
Follow Generally Accepted Accounting Procedures
Raise Funds and Procure Goods and Services
Provide Clear Statements
Develop an Audit Procedure That is Followed Regularly


1. Develop a Budget
(Develop a Budget That is Fiscally Sound and is Available to Organization Members)

A budget needs to detail the basic income and expenses of an organization.

A budget should be clear enough to submit to potential funders for grant writing purposes.

Provide organizational members the ability to report suspected financial impropriety in a confidential manner.

An organization should operate in accordance with an annual budget that has been approved by the board prior to the beginning of each fiscal year.

  • The budget should measure current income and expenses.
  • A budget should predict tough financial times, giving time for contingency planning.
  • New organizations may need to start by looking at potential income.
  • When starting a budget, be conservative in estimating varying revenue steams (participation fees, gate fees, etc.) and allow room for expenses to increase due to unforeseen circumstances.

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2. Follow Generally Accepted Accounting Procedures

Website Help: http://cpaclass.com/gaap/gaap-us-101.htm

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3. Raise Funds and Procure Goods and Services
(Raise Funds and Procure Goods and Services in a Manner that can be Verified)

Operate in accordance to a board approved annual budget.

Create and maintain financial reports on a timely basis, accurately reflecting the financial activity of the organization. Include comparison of actual to budgeted revenue and expenses.

Board of Directors should receive financial reports at least quarterly, along with explanations of any variances from the original budget.

Create policies regarding purchasing practices and financial reporting.

When counting money from an event, have two people present. And when writing checks for expenses, require two signatures.

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4. Provide Clear Statements
(Provide Clear Statements of Cost for Participating in the Program Including Equipment, Travel, Insurance, Fees, etc.)

Example:

What is included in the registration fee:

  • Use of team equipment
  • Practice facility equipment
  • Coaching
  • Team Uniform (to be returned upon completion of the season)
  • Equipment
  • Required Tournament Fees

Additional costs that could be incurred:

  • Gate fees for spectators
  • Insurance/Medical costs
  • Optional clothing(sweatshirts, jackets, etc.)
  • Invitational (extra) tournament fees not listed on calendar, if chosen to participate
  • Travel and motel costs and fees

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5. Develop an Audit Procedure That is Followed Regularly

Budget for and hire a Certified Public Accountant to review financial documents and accounts annually. Have them provide a written audit report for the board.

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