The Club Treasurer's Duties

Editor's Note: The duties listed here generally apply without regard to how the books are kept: on paper, or with the NAIC Club Accounting software program. Some specific duties refer to functions in the NAIC Club Accounting software program. Transaction commands are available on the Web Site: point your browser to Club Accounting Made Easy...almost. In addition, when Congress changes tax laws, the club must purchase an updated version of the NAIC Club Accounting program. It is the Treasurer's responsibility to be in compliance with current tax laws by obtaining and using the latest version.

Preparing For Each Club Meeting

• Enter security transactions:
  • Buy, sell, cash dividend, reinvested distribution, split, merger, takeover, spinoff
• Enter all interest received and any expenses
• Reconcile the club's financial records with the bank and broker statements
• Run the Audit Utility
• Enter valuations for the portfolio holdings
• Print the reports for the club meeting (one set per member):
  • Valuation Statement, Member Status Report, Transaction Summary

After Each Club Meeting

• Record member payments (units), fees (no units), and petty cash contributions
• Execute all authorized transactions
• Record all transactions in the NAIC Club Accounting software program

Occasional Duties (as needed, between meetings)

• Add new members
• Process full or partial withdrawals in cash, stock or a combination of both
  • Prepare withdrawal earnings reports

Year-End Duties

• Enter all data up to and including 12/31
• Enter Valuation for all securities as of 12/31
  • (Use closing prices for the last trading day of the year, but always use a 12/31 date)
• Reconcile the club's records with bank, broker, and all DRP statements
  • Wait until you have received all the 1099 forms from companies
  • Display the Transaction Summary Report for the full year
    • Check the "Subtotal Tax. Distrib's" option
    • Add all "Charges Paid by Company"
      • The Club's records must match the company reported total on Form 1099
• Verify all members' addresses and Social Security numbers
• Verify the Club's Tax Identification Number
• Run the Audit Utility (Place a check mark in the "Check distribution for tax preparation" box)
• Run the Distribution of Earnings Utility
• Print a copy of the Distribution of Earnings Report for all members
• Run the 1065/K-1 program (obtain the latest tax year version from NAIC)
• Print two Form 1065 reports (one for IRS and one for the club's permanent records)
• Print three Schedule K-1 forms for each member
  • Attach one copy of each member's K-1 form to Form 1065 for the IRS filing
  • Give each member their K-1 form
  • Keep one copy with the club's permanent records
• Mail Form 1065 tax filing to the IRS before April 15
  • Send form 1065 to the IRS "Return Receipt Requested"
    • Keep the Return Receipt with the Club's copy of Form 1065
• Non-filing and late-filing penalties are calculated per month & per member

  Note: Many states require the filing of an informational tax return. Refer to the February issue of Better Investing magazine or the listing of states on the web site.

• Arrange for the Club's Verification (Audit) Committee to review the club's books
  • This action may be performed at any convenient time, preferably after the year-end closing