Local Little League® Financial Transparency Checklist

Each year, local Little League programs rely on the thousands of dollars within their operating budget to ensure they can provide the best resources and experience to all of its members. As with any organization, this also creates a fiscal responsibility to each of the members of the local league Board of Directors to ensure the funds are properly accounted for, efficiently used, and transparently communicated to the members of the league. To assist local leagues with creating a financial transparency for its members, Little League International has created the following checklist:

1. Define and understand the responsibilities of the League Treasurer

• Financial Planning / Budget
• Maintaining accurate records
• Monitoring financial activities
• Filing reports (Little League, local, state, and federal agencies, including IRS)

2. Monthly financial report – Presented by Treasurer to the Board of Directors

• Make Financial Report a standard agenda item for each Board of Directors meeting
• Reviewed by Audit Committee before delivering to BOD
• Provide a high-level of transparency
• Share league’s financial performance
• Financial report should include copies/original bank card and statements
• Make public through league/district website

3. Submit an annual financial report to Little League International

• An electronic and hard copy financial report shows the league expenses and income per category for the fiscal year
• Submit to respective regional office
• Required to be submitted annually by November 1.

4. Maintain documentation of all significant revenue sources

• Registration
• Fundraising/Concessions
• Sponsorship
• Special events – opening day, special games, tournament
• Donations

5. Maintain documentation of all expenses

• Include all debit/credit card expenses
• Set spending limits that require Board approval
• Require two signatures on checks

6. Establish protocol for considering and approving purchases

• Itemize annual purchases and list them in annual budget
• Require all proposed purchases, above a pre-established amount, to be discussed in “new business” at monthly Board meeting and be approved by the Board of Directors
• All authorized purchases are to be recorded in the minutes of each monthly meeting
• Require the Board member suggesting the purchase to present a one-minute “necessity/usage” overview
• Establish a culture of accountability
• List/publicize cost(s) for all tournament-related purchases

7. Limit and monitor use of credit and debit cards; checks, and bank accounts

• Publicly identify who has access to league’s debit/credit account(s)
• Define what areas of purchase are permitted
• Limit number of individuals who can access/use accounts
• Do not share pin number with unauthorized individuals
• Set spending limits that on cards
• Require receipts for every purchase
• When possible, establish accounts with preferred vendors
• Do NOT allow cash advances on cards

8. Concession stand checks and balances

• Create detailed concession stand money/cash-handling procedures.
• Establish a Concession Stand Oversight Committee to manage income, expenditures, purchasing, inventory, and staffing.
• Restrict cash purchases
• Require purchase receipts

9. Restrict relatives from serving as both League President and Treasurer

• Should also apply to closely related individuals.

10. Have additional members review financial documents frequently

• Audit Committee – Ways and Means Chairman.

11. File appropriate 990 form with the Internal Revenue Service (IRS) as well as all required state forms

• Questions: Contact Becky Bassett at Little League International – [email protected]; 570-326-1921; ext. 2228.

12. File applicable local and state income and sales/use tax reports

• File annual/bi-annual updates; and specific licenses

13. Don’t only rely on Treasurer

• All leagues have a fiduciary responsibility to the league membership
• Have multiple league members be responsible for overseeing league finances

14. Accounting for employees and general contractors

• Be sure to use appropriate IRS forms for all contracted services and employees
• Track all issued payments and disbursements