General Guidelines
- Administration of all volunteer-led groups will be in accordance with their organization’s bylaws.
- All groups must link to a Program Council and the Program Councils must link to the County Extension Council and Extension District Board.
- Each group must determine the source from which the group will derive tax exempt status and determine how they will handle funds as described in “Cooperative Extension Organizations and Tax Exempt Status.”
- Each volunteer group handling funds will have sole responsibility for all funds and assets of the organization and will follow guidelines established by the Kentucky Cooperative Extension Service.
- No Extension employee shall have signatory authority over any assets of the volunteer-led group.
- An electronic bookkeeping system such as Quicken or QuickBooks is suggested to be used to keep financial records for the volunteer-led group, except those clubs or groups with less than $250 in annual income. It is appropriate that the treasurer keep these electronic records or electronic records can be maintained in the county Extension office by an Extension employee.
- The financial activities and resulting financial statements of all groups should be conducted in accordance with generally accepted accounting principles.
- All groups that have an average monthly balance of $100 or more should have their funds in a financial institution. Check for institutions that allow non-profit groups to maintain an account that has no minimum amount and activity requirement and no monthly service fee. Money not placed in a bank account should be held in a secure location. Detailed records of the funds are to be maintained.
- The group might consider requiring dual signatures for expenditures over a pre-set amount if the group handles large amounts of money.
- When the group’s funds are held in a financial institution, the account should be opened in the name of the group, using their Employer Identification Number (EIN). Under no circumstances should the account be opened in the name of an individual or using an individual’s Social Security number for the EIN number.
- The budget, periodic financial statements, annual financial report and audit checklist /report should be prepared by the appropriate officer. Sample forms are available in “Financial Guidelines for CES Volunteer Groups”.
- The annual financial report with all supporting documentation, should be audited annually by one of the following methods:
- An audit conducted by an independent public accountant (required for District Boards)
- An audit conducted by an audit committee. Audit Committee Guidelines and forms are available in the extension manual.
- Many groups find it useful to acquire and maintain certain tangible assets in support of the educational goals of the organization. Maintain an inventory list which includes equipment, tools, etc. Fiscal responsibility for these tangible assets rests with the individual group. Groups are to inventory these assets on an annual basis, document the location, and provide a historical summary of both acquisition and location. (See “Annual Inventory Report”) Note: To avoid burdensome record keeping, it is suggested that this inventory report include only assets with a useful life over one year and an initial value of $250 or more).
- A volunteer agreeing to serve as a treasurer for any Extension-related group with peak bank account balances over $500 must successfully participate in the Client Protection risk Management approval process. If practical, a bond or dishonest endorsement should be utilized to protect group assets.