Coastal L.A. Section Student Branch Financial Process Standards Practices Forms The goals of this process are: o balancing check books with bank/credit union statements to correct accounting errors o resolution of outstanding checks. o tracking grant money from CLAS, et. al. o tracking float disbursements and reimbursements o tracking expenses and deposits o inventory with depreciation o total assets of the student branch The primary financial statements are o inventory o disbursements and deposits o income o balance The Excel spreadsheet examples for these statements can be found at http://www.sprangle.com/clas.html linked to Student Branch Finances Spreadsheets. Inventory Statement ================== Includes the information of all equipment, parts, supplies, etc. and their value: Serial number - the serial number of the equipment or part. If none is available, then put NA for not applicable model/part no. - the model or part number. Manufacturer - the manufacturer Item description - brief description of the item Location - the building and room, or other location of the item. Condition - the condition of the item. Vendor - where purchased Initial value - purchase price Date purchased - the date purchased the value at the end of the depreciation - an estimate of the value of the item at the end of its useful life. useful life of the asset - an estimate of the useful life of the item Annual straight line depreciation - yearly depreciation (see formula in spreadsheet) Current value - the current value of the item. Total Inventory Value - the total value of the inventory. Disbursements and Deposits Statement(s) (DDS) ============================================= Shows all the checks written, and checks and cash deposited for the reporting period. The reporting period is defined as the period reported on the Checking Institution statement. The Checking Institution statement reports all checks cleared at the institution the branch uses for its checking and/or savings accounts. Each check the branch writes shall have the check number, date written, payee, amount, account #. The check may have comments to add any useful information. The check account number corresponds to the account number in the income statement described in the next section. More than one statement is necessary if the branch uses more than one checking institution. Description Of DDS Entries -------------------------- Date - the date this spreadsheet was completed. Checking Institution - the bank, credit union, etc. with which the checking account resides. Account # - the Checking Institution account number. This is not the check account number mentioned above. Disbursements - the checks written against the checking account. Deposits - the monies (checks, cash, etc.) deposited in the checking account. Checks Outstanding - the checks that have not yet cleared the checking account and do not appear on the Checking Institution statement. Date of previous balance - the date of the previous DDS statement Previous balance - the balance from the previous DDS statement Date of current bank balance - date on the Checking Institution statement Current bank balance - the current Checking Institution statement balance Adjusted Balance Adjusted Balance = Previous balance + Total Deposits - Total Disbursements + Total Checks Outstanding Bank Balance = Adjusted Balance? - detemines if the Current bank balance equals the Adjusted Balance. If they are not equal, there is an error in the spreadsheet. Income Statement ================ Shows all income and expense accounts over a period of time, normally the fiscal year of the branch, which begins on 1 November. Income Statement Accounts ------------------------- The income statement is divided into accounts. These are monies that have been disbursed to the branch, or allocated by approval of the Coastal L.A. Section (CLAS). ** The Float Account ** The float account is money given to the branch by the Coastal L.A. Section to cover expenses for approved items in the branch annual budget. When the branch has an expense, it will draw from this account to pay for the expense, and replenish the account upon reimbursement, which requires the customary submittal of sales receipts. All checks written by the branch shall appear in the Expenses area of the float section of the spreadsheet. All checks written to the branch as reimbursement for approved expenses shall appear in the Revenue area of the float section. The Allocated value is the amount of money given to the branch from CLAS. The Float Total is the amount of money left in the float, i.e. (Expenses - Revenue) - Allocated A negative Float Total means more money may need to come from reimbursements. All entries shall have two account numbers: m,n where m - the Project Account number n - 1, the Float Account number ** General Fund Account ** This is money raised by other means than CLAS, e.g. IEEE rebates, grants, contributions, etc. All checks written by the branch shall appear in the Expenses area of this section. All checks and cash deposited for this account shall appear in the Revenue section. The Account Total is simply the difference between revenue and expenses. ** Project Accounts ** These are accounts that track expenses for specific projects or grants whose money is allocated by CLAS, or any other entity. All checks written by the branch shall appear in the Expenses area of this section. For those project accounts approved by CLAS, all checks deposited for this account into the float as reimbursement for expenses shall appear in the Revenue section. All entries for CLAS approved projects shall have the following have two account numbers: m,n where m - the Project Account number n - 1, the Float Account number The Allocated value, is the amount of money allocated to this project by CLAS. Net is the amount of money left over in this account: Net = Allocated - Expenses Note: Revenue entries appear both in the Float account section and the Project section. For CLAS approved allocations, Revenue is not taken into account, since this information is summarized in the float section, and is presented only for information only. In non-CLAS accounts, such as the General Fund, the Account Total is simply the difference between revenue and expenses. ** Petty Cash Account ** The account keeps track of any cash transactions and the total amount of cash the branch has on hand. Balance Sheet ============= A summary of the assets and liabilities of the branch consisting of the following: Current Assets -------------- Cash - from the Petty Cash Net of the Income statement Float - from the Float Total of the Income Statement General Fund - from the General Fund Account Total of the Income Statement Fixed Assets ------------- Inventory - from the Total Value entry in the Inventory statement. Other Assets ------------ Any other assets not covered in the first two sections. Current Liabilities ------------------- Any liabilities, i.e. debts, accounts payable, etc. Total Value ----------- Total Value = Total Assets - Total Liabilities