Effective Financial Management Strategies for Lodges

STEPS NECESSARY FOR SUCCESSFUL FINANCIAL MANAGEMENT By PDDGER Steven D. Weatherly

OVERALL IT TAKES ALL THE KEY PARTS OF THE LODGE TO CONTROL THE FINANCES OF THE LODGE AND HAVE A GOOD RESULT. These Key Parts are: Lodge Secretary Lodge Treasurer Audit and Accounting Committee House Committee Trustee/Board of Directors

Lodge Secretarys Financial Responsible: Receive all money from the Lodge and the Club Reconcile deposit figures with your figures Keep an itemized log of all receipts Issue a receipt for the amount received to the proper sources List receipts by Lodge Income and Club Income Receives all bills and must catalog them by account for the Treasurer Vouchers for payment are written to ensure that money being paid out comes from the correct sources of budgeted items Vouchers need to record the correct code from the Chart of Accounts

Lodge Treasurers Financial Responsible: Funds derived from Dining Room, Bar and Other Services may be in separate budgets A Lodge has supreme authority to determine how its funds shall be disbursed. Become familiar with Duties of the Auditing Committee as they pertain to the Treasurer. Understand the requirements outlined in the Auditing and Accounting Manual as they pertain to the Treasurer.

Lodge Treasurers Financial Responsible: Maintain current data on all income and expenses. Reconcile all bank accounts monthly. Resolve and clear all discrepancies to balance. Remember to safeguard funds and deposit all funds in a timely fashion. Finally and most important: Provide to the Board of Directors a current monthly report of all Budgets, Profit and Loss (P&L) Statement and a Balance Sheet prior to their monthly meeting.

Auditing & Accounting Committee Financial Responsible: Auditing & Accounting Committee is appointed by Exalted Ruler at the first regular session after installation as By- Laws require. NOTE::: No Lodge Secretary, Treasurer, Trustee/Board of Directors or any member of the Supervising or Managing Body of the Club or other facility established in connection with the Lodge shall serve as a member of the Lodge Auditing & Accounting Committee. Auditing & Accounting Committee should study the Lodge s Financial Report from the preceding year and consult with the Auditing & Accounting Committee from the previous year to see that the recommendations of the Accountant have been complied with or, at least, evaluated.

Auditing & Accounting Committee Financial Responsible: Members of the Committee are responsible for reviewing the lodges accounting processes and relay to the lodge floor if everything is going well at a quarterly reviews and report if any problems are occurring. These reports should be presented at the last regular meeting in the months of July, October and January. The audit committee is NOT just an end of the year job!

House Committee or Club Management Financial Responsible: Separate Budget Member of Body CANNOT be employed by it Monthly Meetings and Reports Set prices and control labor cost Breakout by Liquor, Beer, Wine, Other Reconcile cash drawers at end-of-shift Secure daily cash and receipts for Secretary Record overages, shortages and refunds

House Committee or Club Management Financial Responsible: Purchases Limit number of buyers Approve payment methods Inventory Conduct Inventory monthly, at least annually House Committee member(s) conduct inventory Operational Controls Cost of Goods at 35% Employment costs NTE 35%

Board of Directors Financial Responsible: Budget for every entity Review actual to budget financials each month Make written recommendations on expenditures not budget. Review and modify Budget at least every months or anytime a situation changes that effects the lodges financial. Purchase all lodge equipment or capital expenditures. Basically, look at all uses of money. QUESTIONS?