January 7, 2009 - FINANCE COMMITTEE

The Lodge's Finance Committee is meeting for the first time this evening and it is chaired by our Senior Warden, W:.Ken Giesow, PM. I am fortunate to have Ken as my SW as his feet are planted firmly in the ground and I trust his judgment.

The first two tasks of the Finance Committee is to audit our finances, followed by a preparation of a budget for the operating year. I consider both of these activities extremely important. I have seen far too many Lodges operate without either an audit or a budget, and frankly it is embarrassingly sloppy to see any nonprofit group operate in this manner. Some people fear the audit will uncover some problems; Good! That is what they are intended to do, but more importantly I see the Finance Committee as a neutral party who can give us some insight as to what we can be doing better in managing the Lodge's finances. Not long ago, I wrote an article on this subject, "The Necessity of Lodge Audits" which I had the committee read prior to starting the audit.

As a past Secretary (one who is intimately involved with the handling of money) I see the audit as a way to validate my actions during the year. Only someone who has something to hide will voice opposition to an audit.

The budget is another area I have been battling people with over the years. There are those who somehow believe there are two budgets during the year: one for collecting the money for the current year (primarily dues), and one for collecting dues money for the next year. Baloney. As officers, we are charged with managing the affairs of the Lodge on a yearly cycle; in Florida, it is essentially from January to December. There is only one budget, regardless if dues money is collected from last year or the coming year. There is absolutely no rational reason for separating them. However, if it important to you to differentiate dues money received during the year, then adjust your Chart of Accounts accordingly (to earmark money received for last year, and for next year).

For more information on Chart of Accounts, see:
"Establishing a Chart of Accounts.

We require the audit and budget be presented at our first Stated Communications which is scheduled for January 19th. Following this, the Finance Committee is responsible for reviewing our investment portfolio and making recommendations to the Craft in terms of how to manage it.

Until next time.

All the Best,
Tim Bryce, PM, MPS, MMBBFMN
timb001@phmainstreet.com
Dunedin Lodge No. 192 F.& A.M.
http:/www.dunedin192.org/
Dunedin, FL, USA
"For the Good of the Order"