Managing Finances and Cash in the 4-H

Program

Chris Boleman

cboleman@ag.tamu.edu | @ctboleman

Changes / Updates for 2014-15

Annual $5 Volunteer Fee

Age / Grade Changes (15-16)

2014 Texas 4-H Summit – Who needs to attend

4-H Happenings will continue

Possible changes in 4-H year for program planning (Sept – Aug)

Validation

More Marketing

◉ TEAM Texas 4-H

◉ Signs

◉ Membership Cards

◉ Web Marketing

$5 Fee

Through Connect

Individually or via club check

No change for Master Gardener

Goes live 8/15

Volunteer Management Items

Steer

Heifer

◉Yes, it will be different

◉There WILL be a physical validation

◉Hair samples

◉Heifers are unique

◉ Multi-year

◉ Breeding

Validation

Education• Use it as a teaching

moment

• Code of Conduct

• Make sure people know

what is going on.

Chartering Protects the name and emblem of 4-H in Texas and

America.

Grants permission to local clubs/groups to operate in the name of 4-H.

Allows 4-H clubs/groups to operate under the 501c3 not for profit organization Texas 4-H Inc.

All clubs should charter

Sections of Charter a 4-H Club/Group

Charter Application

Bylaws

Employee Identification Number, or EIN

Budget

Bank Accounts/Information

Charter Application

Completed and submitted annually using the current

years form.

Application includes basic information pertaining to the

club, such as:

◉ Name

◉ Leadership (Club manager(s) and officer team

◉ Contact and Meeting Information

◉ Financial Information such as name of bank(s), names

on signature cards, EIN

◉ Additional question related to membership and

makeup of club

Bylaws

A complete and club/group approved set of bylaws must be provided

Bylaws include a financial dissolution clause indicating residual dollars and resources will become property of county 4-H Program should the club/group dissolve.

Bylaws do not have to be uploaded annually, only when the club/group has amended or revised them.

Employee Identification Number (EIN)

Upon a club/group being established, clubs apply, and receive, an Employee Identification Number (EIN) from the Internal Revenue Service (IRS).

Clubs can not be chartered without an EIN, however there are a few exceptions such as military 4-H clubs, or clubs/groups operating under another parent organization.

Clubs chartered under another parent organization will be not be under the group of Texas 4-H Inc. and will be legal and fiscally responsible to the IRS separately.

Budget

Any club/group who has a bank account

or accepts, disburses, and/or manages

any monies during the 4-H year will

provide an annual budget for review and

approval by club membership.

A club/group can determine the

complexity and detail of their budget.

Budget and Finances We have to be in the GAME!

Any club/group who has a bank account or accepts, disburses, and/or manages any monies during the 4-H year will provide an annual budget for review by club.

Annually, the club/group will provide a copy of the most current bank statement for each of the accounts the club/group manages.

Bank accounts require a minimum of two (2) signatures and those two signatures have to be from more than one family.

Verification of account activity and/or signature card may be requested at any time by the Texas A&M AgriLife Extension Service.

Timeline April – May - County Extension Agents meet with club

managers and distribute information for annual chartering process

May 15 – July 15 - Club Managers complete charter application on all existing clubs/groups, and provide application, bank statement(s), and budget to County Extension Office

July 16 - All 4-H clubs/groups in Texas will go to an “INACTIVE” status in order for the review process to start.

July 16 – Aug 14 - Texas 4-H Office review conducted of all clubs. Clubs having all chartering information complete and correct will have status change to “ACTIVE.”

Aug 15 - 4-H enrollments opens for new 4-H year and youth can sign up for 4-H only in clubs which have been chartered and have an ACTIVE status

Aug 15th to Oct 1st

Chartering letters uploaded to the 4-H club/group in 4-H CONNECT.

What do these letters mean?

◉Club can use name and emblem

◉Liability

◉Proof of 501c3

Texas 4-H Club FinancesUpdates from the 4-H Club Finances

Committee

Account Set-Up

All accounts must be associated with an EIN

◉ No more social security numbers

There must be two signatures on the account

◉ The club manager and the treasurer or another registered

adult volunteer

◉ Cannot be a married couple

If signatures on the account need to be changed

◉ must notify the bank in writing

Best Management Practices

Receiving Funds

◉ Record cash transmittals immediately

◉ Prepare a list of all remittances received to compare to

bank deposits and statements

Requesting Funds

◉ Utilize check requests

Reimbursements

◉ Claims should be supported by receipts or paid invoices

Retaining Financial Records

◉ Retain records for current year plus six years prior

Detailed records including the items listed below need

to be kept:

◉ Original invoices or receipts

◉ From whom

◉ Amount collected

◉ Purpose of expense

◉ When it was spent

◉ Who was paid and the amount

◉ Purpose of purchase

Best Management Practices Cont.

Club manger and club treasurer are responsible for

coming up with a plan to keep track of all records

Reconciling Accounts

◉ Should be reconciled monthly

◉ If there are problems with the account they need to be

taken care of immediately

Best Management Practices Cont.

Annual Financial Review

Will be a part of the chartering process and must be

uploaded to 4-H Connect

County offices should receive a monthly treasurers

report from each club

Agents will be required to review the account and sign it

before uploading to connect

Account needs to be reviewed by people not directly

associated with the club

Will require a list of club assets

Debit Cards

Due the liability and risk we DO NOT recommend the

use of Debit Cards

However, if you chosen to utilize the guideline are listed

below:

◉ Only one (1) debit card is allowed for each club

◉ Clubs should not tie a PIN to the account. It should be

utilized as a “credit card” only.

◉ If cash is needed for an event, withdrawals must be

completed with a teller at the bank

◉ Original receipts must be kept for all purchases

◉ There are to be absolutely NO personal purchases

◉ If it occurs it the agent, 4-H Specialist and DEA need to be

notified

Cash Withdrawals

If a club withdrawals money, the following MUST be

done:

◉ Reason for withdrawal must be documented (i.e.

concession stand)

◉ Withdrawal can be made with a bank teller ONLY

◉ Items purchased with the cash must have a receipt

submitted

◉ NO checks should EVER be written to “Cash”

This action needs to be very minimal

Review all club charters

Oversee all accounts

Actively participate in reviewing and signing the

financial review submitted by clubs

If a discrepancy is reported on account:

◉ Immediately inform the DEA and 4-H Specialist

Agent Roles & Responsibilities

Ms. Megan Logan – Committee Chair

Dr. Toby Lepley

Dr. Kevin Chilek

Mr. Derrick Bruton

Mrs. Sue Ferguson

4-H Club Finances Committee Members