ChiefFinancialOfficerTrainingManual

Chief Financial Officer

Business Society Chief Financial Officer

Training Manual

Created by: Ivan HuertaCFO (2015-2016)

Table of Contents

Letter from CFO Ivan Huerta…………………………………………………………....3

Position Description…………………………………………………………………………….4

Introduction and Objectives………………………………………………………………….. 5

Executive Environment…………………………………………………………………………..6

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Department Environment………………………………………………………………………...7

How to… General Ledger………………………………………………………………………..8

How to… Forecast………………………………………………………………………………..9

How to… Quotes………………………………………………………………………………….10

How to… Submit a Purchase Request…………………………………………………………...11-13

How to… Order Polos, hotels, and pins…………………………………………………………..14

Reimbursements…………………………………………………………………………………...15

Fundraising and Sponsorships……………………………………………………………………...16-17

ASUCM……………………………………………………………………………………………..18

ASUCM Budget Call………………………………………………………………………………..19-23

Conclusion…………………………………………………………………………………………...24

Dear Future CFO of Business Society,

Congratulations! You are now the Chief Financial Officer of Business Society. It is indeed great news and I am really happy for you. You have reached this position in your college career through sheer hard work and dealing with new challenges. You have reached the pinnacle of success due to your determination and vision for this department and Business Society.

As the Chief Financial Officer it's important to know a few things. When it comes towards purchase requests, booking hotels, conferences/tours, etc, always go to Connie McBride. Connie is go to person

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for any questions involving your financial purchases for the Society. Always have your financial documents ready to go before the semester begins. That means creating forecast for the semester, general ledger, and calling for quotes. Be able to understand how position works so that you can alway aid your department in case of them requiring help.

Haunted House is an important event held once every year by the Society. It's important for finance to work very hard with the Operations department in order for the event to go successfully and smoothly. Fundraising is a must so plan to have at least one fundraiser every month. As for sponsorships, use the documents on how to obtain sponsorships from local vendors at Merced on the google doc. Lastly, make sure each of your members of the department have something to do for they came to learn a lot from their team leader and finance enthusiast.

You have to go long way and the organization will reach new heights under your leadership. I hope to see this happening in near future. Congrats again on your new position and Business Society wishes you the best for the upcoming year.

Best,Ivan HuertaBusiness SocietyChief Financial Officer 2015-2016

Title: Chief Financial Officer

Reports to: Chief Executive Officer

Summary of Position:

The Chief Financial Officer (CFO) is the fourth highest ranking representative of Business Society. The CFO shall lead the Finance Department Meetings. The CFO will also manage the budget of the Society and seek new revenue streams. The CFO is additionally responsible for

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keeping financial records, evaluating and approving expenditures, and increasing revenue for Business Society. In the event that the CFO disapproves of an expenditure, this decision can be overruled by a two-thirds vote of the Executive Board; in the case of a tie, the expenditure will remain disapproved.

Duties and Responsibilities

★ Lead Finance department meetings.★ Manage financial documents and seek new revenue streams.★ Manage a team of individuals★ in order to execute projects, tasks, and so forth.★ Make sure each member is fully aware of their position and trained.★ Create purchase request for orders, hotels, and so forth.★ Be fully aware of the Accounting, Purchasing, OSL Procedure and Policy Training

booklet.★ Evaluate and approve expenditures.★ Develop financial strategies.★ Participate in key decisions as a member of the finance and executive team.★ Supervise acquisition due diligence and negotiate acquisitions.★ Oversee the issuance of financial information.★ Report financial results and reports to the Business Society Executive team.★ Monitor cash balances and cash forecast.★ Maintain banking relationships.

Qualifications:

★ Be able to communicate and understand the financial state and financial procedures of Business Society.

★ Must have at least been one semester in Business Society.

Introduction

The purpose of this manual is to guide instructional Chief Financial Officers on how to run the position without confusions coming along the way. The benefit of learning this information is to create financial-looking educational tools that will serve your position and your members very well. It is important to implement the information within this manual in order to move your department members and yourself to optimal levels of performances.

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Objectives

At the end of this manual, you will be able to:★ Perform duties by the Chief Financial Officer★ Manage a team of financial members★ Plan, delegate, and executive financial projects and task done by the finance department.★ Increase Profit within the professional organization.

Executive EnvironmentAs an executive, it's important to understand that you will be working with six other executives

from Business Society, five of which hold their own department. Each executive will be requiring of help from the CFO in many ways. The list states:

I. Chief Executive Officer

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★ The CEO and CFO may approve expenditures and reimbursements. The CFO must clearly explain all financial decisions and reasoning behind any expenditure to the CEO. As for purchase request, the CEO must approve of the request after submission has occurred.

II. Chief Operations Officer★ The COO must complete an inventory list in order for purchasing to occur. An inventory list is a

list of item that are required for an event to occur. Once the list completed, the CFO must find the best possible price for each item and proceed for the purchase request.

III. Chief Communications Officer★ The Chief Communications Officer must have a list of advertisement material so that the CFO

can create a purchase request. This includes flyers, posters, and etcetera.IV. Chief Research and Development Officer

★ The CRDO shall work with the CFO in seeing what new improvements can be done in event held by Business Society, such as Haunted House. The CRDO and CFO shall also see what new events can be executed, if there is available funding from the society.

V. Chief Technology Officer★ The CTO will need to see if any technology can be purchased for use within the society. As for

the website, a monthly subscription must be needed for the website to be up and running.VI. Executive Vice President

★ The EVP will ensure safety and comfortability within the executive team. Any situation or problem that occurs within the executive team or department team shall be reported confidentially to the EVP. The EVP will ensure that the CFO is performing the position right.

Department EnvironmentAs the Chief Financial Officer of Business Society, you will be managing a team of finance

enthusiast. The objective of this department is to increase the financial security of the Society. This department is also responsible for budgeting all expenses of the Society and developing new revenue streams for the Society. There are three teams in the finance department: financial reporters, account

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managers, and the financial strategists. The Senior Vice President of Finance/Finance Controller will be also responsible managing these teams. The list states:

I. Senior Vice President/Finance Controller★ The CFO and Senior VP/FC shall work together in order to executive the objectives and goals of

the finance department. The Senior VP/FC will be the right-hand man of the CFO. In other words, in the case that the CFO is absent, the Senior VP/FC must take over department meetings, as well as any other tasks that the CFO cannot complete.

II. Financial Reporter★ The financial reporters shall prepare and present a presentation, showing the overall financial

progress of the society. The CFO must make sure that the financial reporters complete their presentations on time.

III. Account Managers ★ The Account Managers shall validate all account transactions of the budget for the society. The

Account Manger is responsible for managing the financial ledger of the Society. The CFO must ensure that the AM records and update the general ledgers every time a transactions is completed.

IV. Financial Strategists★ The Financial Strategists is responsible for financial projection of the society. The CFO must

ensure that the financial strategists complete forecast for at least two weeks prior before an upcoming event.

How to…Read and Create Financial Documents

General LedgerA General Ledger is a complete record of financial transactions over the life of a company. The ledger holds account information that is needed to help see how much is left from the Society.

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After you create the general ledger, it should look like this:

ForecastA forecast is a financial projection of what materials/price will be present in an event. It's important to create forecasts in order to see what materials are to be considered or thrown away from the forecast. It’s

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similar towards a general ledger, only that this is a financial projection. Forecast should be made two weeks or more prior towards an event.

Steps:I. Open up an excel file.

II. Follow same format as the General Ledger.Once steps are completed, the forecast should look like this:

QuotesA quote is a estimated price of a job or service given by a local vendor or company. Quotes are used to predict how much an item will costs.

Steps:I. Call a local vendor.

II. Ask for quote for a specific job or service.Here is a scenario/example we can use:

“Business society needs a new table cloth so that we can reuse it again and again instead of the poster. You proceed to call Image Masters, a registered vendor at UC Merced, in order to order it. Knowing how much it will costs, you instead tell them to send you a quote to see how much the product would be.” Here is the quote:

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How to…Submit Purchase Request

A Purchase Request is an IOU, stating the need for goods and services. A purchase request is done through CATLIFE. CATLIFE is a website used by all organizations at UC Merced to submit purchase request, check accounts, and request funding. Here are the steps in order to submit a purchase request.

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I. Log onto Catlife: https://catlife.ucmerced.edu/ II. Under “My Organizations”, click the icon “Business Society”.

III. Click on the “Finance” tabIV. Click on blue square that say “Create Purchase Request”V. Fill out the information as intended.

Here is how the purchase request should look like:

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Whether it's purchasing food, hotels, or ect, there are so many uses for what the Purchase Request can offer. Just make sure to send in the PR 5 days prior to an event.

How to…I. Order Polos

○ Steps:1. Create Excel sheet of new member’s names and shirt sizes.2. Have another member approve it (CEO or Finance member).3. Call Image Masters-Order more polos.4. Submit artwork to Image Masters.5. Create a purchase order after quote6. Submit a purchase request, inserting the quote from Image Masters.

II. Hotels ○ Steps:

1. Send Connie a list of people going to hotels.

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2. Have an agenda of the conference.3. Create a quote sheet with:

a) Room with 2 double bedsb) Send in the quote to conniec) For Hotels: ICC Funds

4. Once Connie approves the Purchase Request, send in the Credit Authorization Form.

5. Credit Authorization Forma) Call hotel and email CAF to Connieb) Note: In case that you cannot go, Have somebody else have a credit

card, but has to go, book the hotel. The costs will not be incurred into the holder of the credit card.

6. Collect the invoice sheet when you leave the hotel→ Give to Connie.

III. Pins→ Company: Crown Awards ○ Steps:

1. Call Eddie Tensaca→ 1-800-542-6044 Ext. 639/ Email: [email protected]

a) 1 inch soft enamel pins, circular pin (use photodome design)b) Customer ID needed (94684755)c) Logo- send him logo in white background

2. Get a quote before ordering them3. Submit a PR with the quote attached.4. Order a minimum of 50 if needed for 2015-2016 year.5. Artwork-Same as before

IV. ReimbursementsWhen somebody has used their own personal funds in order to purchase something for the Society, a reimbursement is made so that funds can be returned by that person. There are two types of reimbursements you will encounter. They are:

○ Types of Reimbursements: Simple and Gas1. Simple

I. For every person that has used their own money to purchase something, a Purchase Request must be made for each person because the check will be sent out to that person’s physical address.

2. GasI. Every driver that has used their funds to purchase gas, parking permits,

etc will be reimbursed.II. The people who were present in that driver's vehicle shall pay a part of

the overall total price of what the driver payed with their own money.

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III. For example, if the driver payed $100 overall from a trip, then the amount is divided how many people in the vehicle. Which means $100/5people in each care=$20 each person has to pay to the driver.

FundraisingFundraising are used by the Society in order to acquire more funds, aside from

membership dues. When it comes towards fundraising, there are either fundraisers done inside the university and outside the university. The fundraiser depends on what the executive and finance department decide it’s best to have it. After the decision has been decided, say for example a restaurant, all it then takes is tabling and advertising in order to get a whole bunch of people in the restaurant.

SponsorshipsThroughout huge events that Business Society's holds, we have sponsors who support the

event and the organization. There are various ways of communication between sponsors. Here is how you can contact sponsors:

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ASUCMOther than the club account and the fundraising money that Business Society has, there are other sources of funding that every Registered Club Organization can use. ASUCM funds and ICC funding are other funding resources that other clubs/organizations can use to hold huge events that are open to the campus. Business Society holds two account from ASUCM. They are the ASUCM RCO TRAVELS FUND and the ASUCM RCO BUDGET LINE. You can always look up how much money is in each account using CATLIFE.

If there are any more questions/comments/concerns pertaining towards ASUCM funds, such as what you can/cannot purchase, please contact the ASUCM treasurer.

By the end of November, the ASUCM treasurer request a Mid-Year Progress Report. This report states what the ASUCM funding was used for, how it will be used, when will be used, and the description of the event. It’s important to fill out the Report in order to keep the funding from ASUCM. If the report is not completed by then, then the funding will be strictly prohibited from use from the Society. Here is the format of the report:

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How does the Society acquire the funding from ASUCM? It's done through a Budget Call. A Budget Call is a document that states how much money an organization will be needing for the upcoming year. To put it simply we are asking ASUCM for this amount and here are the reasons why. Here is the original format of the Budget Call:

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For more information on the Budget Call, please look at the ASUCM website:http://asucm.ucmerced.edu/form/budget-call-proposal-formThis website will provide you with the necessary materials to complete the Budget Call.

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ConclusionThe Chief Financial Officer of Business Society acquires a huge certain amount of tasks that pertain towards financial stability of the society. Whoever is elected of this position must remember these points:

● The finance department stands as one of the highest main pillars of the society.● Events and other activities that the society runs cannot happen without the help of the

finance department and its knowledge of finance.● You are in charge of the finances, which means you must understand how much funds we

place into our events as well as not underestimating costs.● Your finance team is here to help, so that means not a huge amount of work is put upon

you.● Plan and execute tasks early, it really helps in case something unexpectedly does happen

in an event/program.Training and development is extremely important to the growth of the society and your department. They not only increase your member’s abilities and knowledge but also strengthen the relationship that exists between the workforce and the members of the leadership within the society. Training begins when it is determined there is a need. The need helps to determine how the training will be designed and implemented, which is where this training guide comes in. Employee training is a process that requires planning. The success of training is measured over time and is based upon whether or not the employee’s knowledge or skills increased as a result of the training.

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