All about Finances

The district finance session was led by Paul, with Rob Cook as the district treasurer, to discuss club and district finances. Paul explained the structure of club fees and district dues, emphasizing the importance of understanding financial responsibilities. Wendy raised a question about using funds for club development, which Paul noted for further discussion. The session aimed to be interactive, with participants encouraged to ask questions through the chat or reactions button.

The meeting covered various financial aspects of Rotary clubs, including district levies, Rotary International fees, and the Rotary Down Under subscription. Paul explained that the district levy for each member will be $116, with an increase due to insurance costs. He emphasized the importance of accurate member information on Club Runner and reminded clubs to approve budgets and keep public funds separate from club accounts. Paul also discussed the ATO self-review return for not-for-profit entities and the requirement for club treasurers to arrange financial reviews or audits before AGMs.

The meeting discussed the financial management of the district, with Paul and Rob explaining the transition of treasurer roles, noting that Rob will continue as assistant treasurer under incoming treasurer Gordon Morris. They clarified that the RDU subscription is a 6-month payment, and Rob invited discussion on ways to increase funds for the admin account. Wendy suggested diverting 20% of the op shop's merchandising income to club building initiatives, prompting questions about the legitimacy and implementation of such an approach.

The discussion focused on the handling of funds raised by Rotary clubs, particularly distinguishing between funds from public donations and fee-for-service activities. Paul explained that funds from public donations must be kept separate and comply with the Fundraising Act, which requires transparency about how the money is used. Robert and Andrew shared examples of fee-for-service arrangements, such as advertising through sponsorships and marshalling cars at markets, which can be retained by the club. Claire confirmed that money raised from members, such as raffles and happy bucks, can be used for administrative purposes. The group agreed to be cautious and transparent in their fund management to ensure compliance with legal requirements and maintain public trust.

The group discussed various membership fees and levies, focusing on the RDU amounts which were clarified to be $44 for print and $34 for online, charged half-yearly. Pam initially confused the discussion by stating these were six-month fees, but later corrected herself. The total annual costs for a club member, including district levy and international levy, were estimated to be around $330, with Paul emphasizing the importance of transparency in charging members and ensuring funds raised from the public are directed towards humanitarian causes.

The meeting focused on the Not for Profit (NFP) self-review process introduced by the ATO, which clubs are finding challenging. Robert explained that the process requires basic financial information similar to the annual statement to Consumer Affairs Victoria, and Paul confirmed that guidance has been provided to clubs via email. Peter raised a question about consistent guidance for clubs on funding overseas projects, but Robert noted that while the district has tried to obtain guidance at a zone level, the ATO was reluctant to provide specific financial advice. Paul agreed to resend the NFP self-review information to clubs for clarification.

The group discussed the need to separate club funds and fundraising funds, with Sue explaining they have two separate bank accounts. Paul emphasized that funds must be separated immediately to comply with state government regulations, though Sue noted their current method of reconciling funds through monthly financial statements might be sufficient. The discussion concluded with agreement that while interactions between accounts are necessary, there must be a clear separation of funds, with Sue confirming they run three P&L statements for club, fundraising, and satellite club activities.

The meeting focused on discussing insurance funding for club activities, where Paul explained that clubs can legally fund insurance costs from project funds as it's a compulsory operating expense for club members during fundraising activities.

Recording