This document provides guidelines and best practices for managing finances in 4-H clubs. It discusses setting up bank accounts with two signatures from different families, keeping detailed financial records, reconciling accounts monthly, and having annual financial reviews. It also addresses debit cards, cash withdrawals, and the roles of county agents in overseeing club finances.

1. Managing Finances and
Cash in the 4-H
Program
Chris Boleman
cboleman@ag.tamu.edu | @ctboleman

2. Changes / Updates for 2014-15
 Annual $5 Volunteer Fee
 Age / Grade Changes (15-16)
 2014 Texas 4-H Summit – Who needs to attend
 4-H Happenings will continue
 Possible changes in 4-H year for program planning
(Sept – Aug)
 Validation
 More Marketing
◉ TEAM Texas 4-H
◉ Signs
◉ Membership Cards
◉ Web Marketing

3. Volunteer Management Items
 $5 Fee
 Through Connect
 Individually or via club check
 No change for Master Gardener
 Goes live 8/15

4. Validation
 Steer
 Heifer
◉Yes, it will be different
◉There WILL be a physical validation
◉Hair samples
◉Heifers are unique
◉ Multi-year
◉ Breeding
Education
• Use it as a teaching
moment
• Code of Conduct
• Make sure people know
what is going on.

5. Chartering
 Protects the name and emblem of 4-H in Texas and
America.
 Grants permission to local clubs/groups to operate
in the name of 4-H.
 Allows 4-H clubs/groups to operate under the 501c3
not for profit organization Texas 4-H Inc.
 All clubs should charter

6. Sections of Charter a 4-H
Club/Group
Charter Application
Bylaws
Employee Identification Number,
or EIN
Budget
Bank Accounts/Information

7. Charter Application
 Completed and submitted annually using the current
years form.
 Application includes basic information pertaining to the
club, such as:
◉ Name
◉ Leadership (Club manager(s) and officer team
◉ Contact and Meeting Information
◉ Financial Information such as name of bank(s), names
on signature cards, EIN
◉ Additional question related to membership and
makeup of club

8. Bylaws
 A complete and club/group approved set of
bylaws must be provided
 Bylaws include a financial dissolution clause
indicating residual dollars and resources will
become property of county 4-H Program
should the club/group dissolve.
 Bylaws do not have to be uploaded annually,
only when the club/group has amended or
revised them.

9. Employee Identification Number
(EIN)
 Upon a club/group being established, clubs apply,
and receive, an Employee Identification Number
(EIN) from the Internal Revenue Service (IRS).
 Clubs can not be chartered without an EIN, however
there are a few exceptions such as military 4-H
clubs, or clubs/groups operating under another
parent organization.
 Clubs chartered under another parent organization
will be not be under the group of Texas 4-H Inc. and
will be legal and fiscally responsible to the IRS
separately.

10. Budget
Any club/group who has a bank account
or accepts, disburses, and/or manages
any monies during the 4-H year will
provide an annual budget for review and
approval by club membership.
A club/group can determine the
complexity and detail of their budget.

11. Budget and Finances
 We have to be in the GAME!
 Any club/group who has a bank account or accepts,
disburses, and/or manages any monies during the 4-H
year will provide an annual budget for review by club.
 Annually, the club/group will provide a copy of the most
current bank statement for each of the accounts the
club/group manages.
 Bank accounts require a minimum of two (2) signatures
and those two signatures have to be from more than one
family.
 Verification of account activity and/or signature card may
be requested at any time by the Texas A&M AgriLife
Extension Service.

12. Timeline
 April – May - County Extension Agents meet with club
managers and distribute information for annual
chartering process
 May 15 – July 15 - Club Managers complete charter
application on all existing clubs/groups, and provide
application, bank statement(s), and budget to County
Extension Office
 July 16 - All 4-H clubs/groups in Texas will go to an
“INACTIVE” status in order for the review process to start.
 July 16 – Aug 14 - Texas 4-H Office review conducted of all
clubs. Clubs having all chartering information complete
and correct will have status change to “ACTIVE.”
 Aug 15 - 4-H enrollments opens for new 4-H year and
youth can sign up for 4-H only in clubs which have been
chartered and have an ACTIVE status

13. Aug 15th to Oct 1st
Chartering letters uploaded to the 4-
H club/group in 4-H CONNECT.
What do these letters mean?
◉Club can use name and emblem
◉Liability
◉Proof of 501c3

14. Texas 4-H Club Finances
Updates from the 4-H Club Finances
Committee

15. Account Set-Up
 All accounts must be associated with an EIN
◉ No more social security numbers
 There must be two signatures on the account
◉ The club manager and the treasurer or another registered
adult volunteer
◉ Cannot be a married couple
 If signatures on the account need to be changed
◉ must notify the bank in writing

16. Best Management Practices
 Receiving Funds
◉ Record cash transmittals immediately
◉ Prepare a list of all remittances received to compare to
bank deposits and statements
 Requesting Funds
◉ Utilize check requests
 Reimbursements
◉ Claims should be supported by receipts or paid invoices

17. Best Management Practices Cont.
 Retaining Financial Records
◉ Retain records for current year plus six years prior
 Detailed records including the items listed below need
to be kept:
◉ Original invoices or receipts
◉ From whom
◉ Amount collected
◉ Purpose of expense
◉ When it was spent
◉ Who was paid and the amount
◉ Purpose of purchase

18. Best Management Practices Cont.
 Club manger and club treasurer are responsible for
coming up with a plan to keep track of all records
 Reconciling Accounts
◉ Should be reconciled monthly
◉ If there are problems with the account they need to be
taken care of immediately

19. Annual Financial Review
 Will be a part of the chartering process and must be
uploaded to 4-H Connect
 County offices should receive a monthly treasurers
report from each club
 Agents will be required to review the account and sign it
before uploading to connect
 Account needs to be reviewed by people not directly
associated with the club
 Will require a list of club assets

20. Debit Cards
 Due the liability and risk we DO NOT recommend the
use of Debit Cards
 However, if you chosen to utilize the guideline are listed
below:
◉ Only one (1) debit card is allowed for each club
◉ Clubs should not tie a PIN to the account. It should be
utilized as a “credit card” only.
◉ If cash is needed for an event, withdrawals must be
completed with a teller at the bank
◉ Original receipts must be kept for all purchases
◉ There are to be absolutely NO personal purchases
◉ If it occurs it the agent, 4-H Specialist and DEA need to be
notified

21. Cash Withdrawals
 If a club withdrawals money, the following MUST be
done:
◉ Reason for withdrawal must be documented (i.e.
concession stand)
◉ Withdrawal can be made with a bank teller ONLY
◉ Items purchased with the cash must have a receipt
submitted
◉ NO checks should EVER be written to “Cash”
 This action needs to be very minimal

22. Agent Roles & Responsibilities
 Review all club charters
 Oversee all accounts
 Actively participate in reviewing and signing the
financial review submitted by clubs
 If a discrepancy is reported on account:
◉ Immediately inform the DEA and 4-H Specialist

23. 4-H Club Finances Committee
Members
 Ms. Megan Logan – Committee Chair
 Dr. Toby Lepley
 Dr. Kevin Chilek
 Mr. Derrick Bruton
 Mrs. Sue Ferguson