Financial Reports

The financial reports necessary from the Crysophylos are simple versions of basic accounting reports. If you have an accounting background and understand cash- and accrual-basis, or are comfortable using software like QuickBooks, you can implement that in your chapter too. But in the meantime, leave the Balance Sheet and Statement of Cash Flows to the professionals.

The Income Statement, sometimes called Profit and Loss (P&L), shows your Revenue and Expenses for a period. That period is usually Year-To-Date, which means the period starting on the first day of the fiscal year and ending on the date of the report. Most chapters begin their fiscal year on June 1 and end on May 31.

Often, the Income Statement compares actual-to-budget for the same period or actual-to-budget for the fiscal year. The latter is preferred for TKE chapters. Here's how to complete an Income Statement:

  1. Date the Income Statement with the date of the accounting period. Since the Income Statement is reported Year-To-Date, use the period from the beginning of the Fiscal Year to the end of the current month.
     
  2. You should have a list of everyone who has paid their chapter dues. Total the amounts paid, and record it as Chapter Dues Revenue. Only record revenue for the actual cash that you have received. So, for example, if chapter dues are $450, and Frater Joe pays $150, you would increase Chapter Dues Revenue by $150.
     
  3. New Member Fees are recorded as revenue if collected by the chapter. When the chapter pays the Candidate and/or Initiation Fee, record that amount as an expense. It is recommended that the candidates pay directly using the TKE Maintenance Module, rather than the chapter collecting the fees.
     
  4. Report all other revenue on the appropriate lines. Remember that this report is Year-To-Date, so each revenue line should represent the total amount your chapter has received all year.
     
  5. Add up all the revenue and enter the total.
     
  6. Each time you make a payment, it needs to be recorded as an expense in the correct category. So, for example, if the chapter paid $400 to dry-clean the officer robes, the transaction adds an expense of $400 to Officer Funds Expense. If the starting balance for this expense account was $200, the new total would be $200 + $400 = $600.
     
  7. Add up all the expenses and enter the total.
     
  8. Total Revenue minus Total Expense is your Net Income - the gain or loss on operations.
     

The second financial report that you should complete is the Chapter Assets and Liabilities. On this report, you list assets, which are things that have value that a chapter owns, and liabilities, which are the debts that your chapter owes. Here's how to complete the Chapter Assets and Liabilities, which is really just a modified version of a Balance Sheet:

  1. Use the balance of your checkbook and enter it as Cash in Bank Account. When the bank statement comes each month, you should reconcile the bank statement to your checkbook.
     
  2. Cash on Hand is any money that you haven't deposited.
     
  3. Accounts Receivable is the sum of all money owed to your chapter. Get this total by summing the balances from the Individual Ledgers of each Frater.
     
  4. The total due to the Offices of the Grand Chapter should match the balance on your chapter statement.
     
  5. The total due to HRH/Kirklin & Company should match the outstanding balance of your Risk Management Fees, even if these fees are not yet due.
     
  6. The total due to ACP Resources should match the outstanding balance of your Annual Membership Fees, even if these fees are not yet due.