ANNUAL REPORT 2014 FISCAL YEAR 2013-2014 Foundation Trustees
SUN CITY GEORGETOWN KIWANIS FOUNDATION
ANNUAL REPORT 2014 FISCAL YEAR (October 1, 2013 through September 30, 2014)
The Sun City Georgetown Kiwanis Foundation exists primarily to allow tax-free contributions to the Kiwanis Club of Sun City Georgetown. The Foundation is a 501(c)(3) corporation. Further, The Foundation is developing a corpus or an endowment fund known as “The Gift” which will eventually provide additional financial support for The Club's annual service projects supporting the children of Williamson County.
2013-2014 Foundation Trustees: Don Ballard Chairman
Bill Harron Vice-Chairman
Mert Darling Treasurer
Bob Barnes Trustee
Stan Willbanks Trustee
Donna Taylor Trustee
Linda McDaniel Vice-Treasurer
Fiscal Year 2014: During the 2014 fiscal year (October 1, 2013 to September 30, 2014) The Foundation focused on better reporting and record keeping by: 1. Purchasing laptops for the Secretary and Treasurer. 2. Purchasing QuickBooks software for financial record keeping and reporting. 3. Learning how to use QuickBooks and setting it up. The plan is to switch over to the QuickBooks accounting package by the end of the 2015 fiscal year. See appendix A for a summary of the 2014 financial accounts.
Annual Financial Examination: The review committee, chaired by Linda McDaniel and comprised of Kiwanis Club of Sun City Georgetown members Chuck Graham and Kerrie Martinez, met to review the Sun City Georgetown Kiwanis Foundation financial reports for fiscal year 2014 (October 1, 2013, to September 30, 2014). See appendix C for the report. The financial review committee found that the disbursements were always accompanied by an expense report. Bank statements, expense and income receipts were separated in an orderly manner.
The Foundation Trustees have reviewed the report and plan to implement and/or document policies and procedures for those items that the committee recommended.
2014 Investment Committee Report: The Investment Committee made no substantive changes, continuing The Foundation’s investments in Certificates of Deposit. Returns remain at historic lows.
2014 Growth Committee Report: The Growth Committee made no changes in the methods for growing “The Gift” (Corpus).
Contributions: The Sun City Georgetown Kiwanis Foundation Trustees would like to thank the people that contributed to “The Gift” during the 2014 fiscal year (see list, appendix B). Their contributions are helping The Gift grow, and will eventually allow The Foundation to provide The Club with additional funds to help support the children of Williamson County.
2014-2015 Foundation Trustees: Don Ballard Chairman
Stan Willbanks Vice-Chairman
Mert Darling Treasurer
Bob Barnes Trustee
Chuck Graham Trustee
Kerrie Martinez Trustee
Linda McDaniel Vice-Treasurer
Fiscal Year 2015: During fiscal year 2015 (October 1, 2014, to September 30, 2015), The Foundation plans to focus on:
Improving The Foundation’s Bylaws, Policies, and Procedures; Improving financial reporting using QuickBooks; Improving the Club’s understanding of the Foundation and “The Gift”.
Respectfully submitted,
Donald Ballard, Chairman Sun City Georgetown Kiwanis Foundation 3/9/2015
2
Appendix A Foundation Treasurer's Report October 1, 2013 to September 30, 2014
Club’s Service Projects Account*: Income: Balance Forward 10/01/2013 Project Income
$ 40,049.47 $66,138.86
Total
$106,188.33
Expenses: Project Disbursements (HHT, Garage Sale, etc.)
$71,219.19
Budgeted Scholarships Payable
7,000.00
Total
Balance
$78,219.19
$27,969.14
*Managed by the Foundation.
3
Foundation’s “The GIFT” (Corpus) Account: Assets: Balance Forward 10/01/2012 Interest Income Contributions Contribution from The Club
$66,814.83 $1,010.31 9,106.71 5,000.00
Total
$81,931.85
Balance
$81,931.85
Foundation’s Administrative Account: Support: Administrative Funds (received from Kiwanis Club of Sun City Georgetown) Funds for a Computer for Treasurer (received from Kiwanis Club of Sun City Georgetown)
$394.29
899.99
Total Assets Expenses & Purchases: Trustee Bonding (CMA Security) Computer for Treasurer Miscellaneous Computer Hardware Supplies Total Liabilities
$1,294.26
$206.00 899.99 149.63 38.64 $1,294.26
Balance
$0.00
4
Appendix B Sun City Georgetown Kiwanis Foundation The GIFT Contributors October 1, 2013, to September 30, 2014 The Sun City Georgetown Kiwanis Foundation gratefully acknowledges and appreciates The GIFT Contributors: Steve Acker Jack Akin Brenda Alicea Joan Altshuler Anonymous Gordon Arnold Don Ballard Mr. & Mrs. Virgil Baxter Dr. James Bolton Marilyn Buikema Betty Darling Sandy Dolan Steve Fought Paul Golay Chuck Graham Gene & Carolyn Gregory George Hampton Bill & Pat Harron John Hopper Martha Hopper Marsha Itkin Jack Johnson Dick Kelly Nancy Ladd Martha Lawlor Dick Lesh Manford Mainer
Yvonne Mautner Linda McDaniel Audrey McDonald Nancy Newman Jack & Gayle Noble Marshall Pearlstein Robin Pearlstein Harvey Pikoff Jim Ramay Geri Scheer Sandy Schmelzer Cheryl & Joe Schmidt Jerry Secrist Carol & David Siekmeier Don Siler George & Shirley Spaniel Jane Stephenson Sun City Texas Community Association Jerry & Paula Sutter Jim Sweeney Diana Tchida Marjorie VonRosenberg Stan Willbanks Herb Wilkins Arline Willbanks Fred Youngs
5
Appendix C Linda McDaniel 2913 Gabriel View Drive Georgetown, TX 78628 January 13, 2015 Sun City Kiwanis Foundation Georgetown, TX 78633 RE: Review of Income and Expense Reports for the period 10/01/2013-9/30/2014 Board of Trustees: As required, a review of the income and expense report for fiscal year of 10/1-2013-9/30/14 has been completed. The review committee was comprised of Chuck Graham, Kerrie Martinez and chaired by Trustee Linda McDaniel. The committee was presented the paper information in files from the Foundation Treasurer in a timely manner. The QuickBooks information which had been loaded onto the Foundation computer purchased this year was not available for our review. Our findings: 1. QuickBooks as noted previously is not being utilized. 2. Account numbers did not accompany accounts in the same institution. 3. Monies from the Project Account and the Gift account were co- mingled into a single interest bearing account. 4. The committee could not tell if there had been approval given for the transfer of funds in excess of $2,000. 5. There was no way of determining if the monthly accounts had been reconciled by “someone not having authority to withdraw or deposit funds” which is required by the bonding institution 6. The Project Account Statement shows KI Insurance budgeted for $1824.00 and KI Insurance expense of $608. The inclusion of this in the budget was questioned by the committee. 7. Some expense amounts disbursed exceeded budgeted amount. 8. Some expense amounts budgeted were not disbursed. Our recommendations: 1. If the Non-Profit version of QuickBooks cannot accommodate the categories desired by the board, different software should be utilized
6
2. Account numbers should be included to access the ending balances in the Project Account and the Gift account. Very time consuming to review when there are multiple accounts at the same institution. (Apparently this is now being done) 3. There should be no co-mingling of Project and Gift accounts. 4. Prior written approval of the transfer of funds in excess of $2000 by the Trustees. 5. Distributions in excess of a certain amount should have two signatures. The amount of above $500 was desired by two of the members. Recognizing that the amounts have already been approved in the budget, another recommendation would be to have two signatures on any distribution above the designated budget amounts. 6. Reconciliation of monthly accounts should be easily recognized as having been done according to the bonding requirements. In summary, there should be an acknowledgement showing that there has been a reconciliation done by someone other than a signee on the account, there should not be co-mingling of project and gift accounts and the transfer of funds above a certain amount should be approved by the Trustees before being done. The financial review committee’s requirement was not to determine why amounts were budgeted, why amounts disbursed exceeded budgeted amounts or why budgeted amounts were not disbursed. Our review was to see that the income and expense amounts were documented. This process could have been easier to complete with the aid of information being assessed by use of accounting software. That being said, disbursements were always accompanied by an expense report, bank statements, expense and income receipts were separated in an orderly manner. Submitted by
Linda McDaniel Foundation Trustee Review Committee Chair CC: Chuck Graham Kerrie Martinez
7
ANNUAL REPORT 2014 FISCAL YEAR (October 1, 2013 through September 30, 2014)
The Sun City Georgetown Kiwanis Foundation exists primarily to allow tax-free contributions to the Kiwanis Club of Sun City Georgetown. The Foundation is a 501(c)(3) corporation. Further, The Foundation is developing a corpus or an endowment fund known as “The Gift” which will eventually provide additional financial support for The Club's annual service projects supporting the children of Williamson County.
2013-2014 Foundation Trustees: Don Ballard Chairman
Bill Harron Vice-Chairman
Mert Darling Treasurer
Bob Barnes Trustee
Stan Willbanks Trustee
Donna Taylor Trustee
Linda McDaniel Vice-Treasurer
Fiscal Year 2014: During the 2014 fiscal year (October 1, 2013 to September 30, 2014) The Foundation focused on better reporting and record keeping by: 1. Purchasing laptops for the Secretary and Treasurer. 2. Purchasing QuickBooks software for financial record keeping and reporting. 3. Learning how to use QuickBooks and setting it up. The plan is to switch over to the QuickBooks accounting package by the end of the 2015 fiscal year. See appendix A for a summary of the 2014 financial accounts.
Annual Financial Examination: The review committee, chaired by Linda McDaniel and comprised of Kiwanis Club of Sun City Georgetown members Chuck Graham and Kerrie Martinez, met to review the Sun City Georgetown Kiwanis Foundation financial reports for fiscal year 2014 (October 1, 2013, to September 30, 2014). See appendix C for the report. The financial review committee found that the disbursements were always accompanied by an expense report. Bank statements, expense and income receipts were separated in an orderly manner.
The Foundation Trustees have reviewed the report and plan to implement and/or document policies and procedures for those items that the committee recommended.
2014 Investment Committee Report: The Investment Committee made no substantive changes, continuing The Foundation’s investments in Certificates of Deposit. Returns remain at historic lows.
2014 Growth Committee Report: The Growth Committee made no changes in the methods for growing “The Gift” (Corpus).
Contributions: The Sun City Georgetown Kiwanis Foundation Trustees would like to thank the people that contributed to “The Gift” during the 2014 fiscal year (see list, appendix B). Their contributions are helping The Gift grow, and will eventually allow The Foundation to provide The Club with additional funds to help support the children of Williamson County.
2014-2015 Foundation Trustees: Don Ballard Chairman
Stan Willbanks Vice-Chairman
Mert Darling Treasurer
Bob Barnes Trustee
Chuck Graham Trustee
Kerrie Martinez Trustee
Linda McDaniel Vice-Treasurer
Fiscal Year 2015: During fiscal year 2015 (October 1, 2014, to September 30, 2015), The Foundation plans to focus on:
Improving The Foundation’s Bylaws, Policies, and Procedures; Improving financial reporting using QuickBooks; Improving the Club’s understanding of the Foundation and “The Gift”.
Respectfully submitted,
Donald Ballard, Chairman Sun City Georgetown Kiwanis Foundation 3/9/2015
2
Appendix A Foundation Treasurer's Report October 1, 2013 to September 30, 2014
Club’s Service Projects Account*: Income: Balance Forward 10/01/2013 Project Income
$ 40,049.47 $66,138.86
Total
$106,188.33
Expenses: Project Disbursements (HHT, Garage Sale, etc.)
$71,219.19
Budgeted Scholarships Payable
7,000.00
Total
Balance
$78,219.19
$27,969.14
*Managed by the Foundation.
3
Foundation’s “The GIFT” (Corpus) Account: Assets: Balance Forward 10/01/2012 Interest Income Contributions Contribution from The Club
$66,814.83 $1,010.31 9,106.71 5,000.00
Total
$81,931.85
Balance
$81,931.85
Foundation’s Administrative Account: Support: Administrative Funds (received from Kiwanis Club of Sun City Georgetown) Funds for a Computer for Treasurer (received from Kiwanis Club of Sun City Georgetown)
$394.29
899.99
Total Assets Expenses & Purchases: Trustee Bonding (CMA Security) Computer for Treasurer Miscellaneous Computer Hardware Supplies Total Liabilities
$1,294.26
$206.00 899.99 149.63 38.64 $1,294.26
Balance
$0.00
4
Appendix B Sun City Georgetown Kiwanis Foundation The GIFT Contributors October 1, 2013, to September 30, 2014 The Sun City Georgetown Kiwanis Foundation gratefully acknowledges and appreciates The GIFT Contributors: Steve Acker Jack Akin Brenda Alicea Joan Altshuler Anonymous Gordon Arnold Don Ballard Mr. & Mrs. Virgil Baxter Dr. James Bolton Marilyn Buikema Betty Darling Sandy Dolan Steve Fought Paul Golay Chuck Graham Gene & Carolyn Gregory George Hampton Bill & Pat Harron John Hopper Martha Hopper Marsha Itkin Jack Johnson Dick Kelly Nancy Ladd Martha Lawlor Dick Lesh Manford Mainer
Yvonne Mautner Linda McDaniel Audrey McDonald Nancy Newman Jack & Gayle Noble Marshall Pearlstein Robin Pearlstein Harvey Pikoff Jim Ramay Geri Scheer Sandy Schmelzer Cheryl & Joe Schmidt Jerry Secrist Carol & David Siekmeier Don Siler George & Shirley Spaniel Jane Stephenson Sun City Texas Community Association Jerry & Paula Sutter Jim Sweeney Diana Tchida Marjorie VonRosenberg Stan Willbanks Herb Wilkins Arline Willbanks Fred Youngs
5
Appendix C Linda McDaniel 2913 Gabriel View Drive Georgetown, TX 78628 January 13, 2015 Sun City Kiwanis Foundation Georgetown, TX 78633 RE: Review of Income and Expense Reports for the period 10/01/2013-9/30/2014 Board of Trustees: As required, a review of the income and expense report for fiscal year of 10/1-2013-9/30/14 has been completed. The review committee was comprised of Chuck Graham, Kerrie Martinez and chaired by Trustee Linda McDaniel. The committee was presented the paper information in files from the Foundation Treasurer in a timely manner. The QuickBooks information which had been loaded onto the Foundation computer purchased this year was not available for our review. Our findings: 1. QuickBooks as noted previously is not being utilized. 2. Account numbers did not accompany accounts in the same institution. 3. Monies from the Project Account and the Gift account were co- mingled into a single interest bearing account. 4. The committee could not tell if there had been approval given for the transfer of funds in excess of $2,000. 5. There was no way of determining if the monthly accounts had been reconciled by “someone not having authority to withdraw or deposit funds” which is required by the bonding institution 6. The Project Account Statement shows KI Insurance budgeted for $1824.00 and KI Insurance expense of $608. The inclusion of this in the budget was questioned by the committee. 7. Some expense amounts disbursed exceeded budgeted amount. 8. Some expense amounts budgeted were not disbursed. Our recommendations: 1. If the Non-Profit version of QuickBooks cannot accommodate the categories desired by the board, different software should be utilized
6
2. Account numbers should be included to access the ending balances in the Project Account and the Gift account. Very time consuming to review when there are multiple accounts at the same institution. (Apparently this is now being done) 3. There should be no co-mingling of Project and Gift accounts. 4. Prior written approval of the transfer of funds in excess of $2000 by the Trustees. 5. Distributions in excess of a certain amount should have two signatures. The amount of above $500 was desired by two of the members. Recognizing that the amounts have already been approved in the budget, another recommendation would be to have two signatures on any distribution above the designated budget amounts. 6. Reconciliation of monthly accounts should be easily recognized as having been done according to the bonding requirements. In summary, there should be an acknowledgement showing that there has been a reconciliation done by someone other than a signee on the account, there should not be co-mingling of project and gift accounts and the transfer of funds above a certain amount should be approved by the Trustees before being done. The financial review committee’s requirement was not to determine why amounts were budgeted, why amounts disbursed exceeded budgeted amounts or why budgeted amounts were not disbursed. Our review was to see that the income and expense amounts were documented. This process could have been easier to complete with the aid of information being assessed by use of accounting software. That being said, disbursements were always accompanied by an expense report, bank statements, expense and income receipts were separated in an orderly manner. Submitted by
Linda McDaniel Foundation Trustee Review Committee Chair CC: Chuck Graham Kerrie Martinez
7
