A Smooth Landing Starts With Solid Records

As I mentioned in previous "Money Matters" articles, club recordkeeping can be a challenge for club members who have volunteered to take over as new club officers. I have often heard firsthand that club records have not been accessible, current, complete, accurate, or relevant.

Accessibility challenges arise when the prior record custodian disappears or abandons their position. I often recommend that small organizations keep financial and other important records on the premises when possible. Most RC clubs have a local flying field that contains a storage shed for yard tools and hardware. A fireproof safe can be used to store important club record retentions.

Important club financial records and organization documents that someone maintains somewhere away from the flying site are often not current. Late record filings and scattered documents occur too often, and prior club leaders sometimes move on with important club records in their possession. Club officers should at least meet annually to determine where current important records are located and check that core documents— Articles of Incorporation, bylaws, IRS determination letters, and financial statements—are complete. These files might have missing pages, so it’s important for club officers to take an annual inventory to ensure that all pages and sub-parts are included.

Accuracy of financial records and reporting is important. Someone should periodically check that tax ID numbers, contact information, and the club’s name are stated correctly on any bank statements, utility bills, IRS filings, and other local business/tax filings. Making sure that current contact information is correct will prevent utility service interruptions, property tax liens, or the loss of IRS non-profit determination.

Relevance challenges occur when recordkeeping, important business activities, financial transactions, and other club operations are comingled with non-club entities or individuals. Oftentimes, I have seen club banking activities under a particular member’s name and tax ID. There might also be banking activities comingled with someone’s personal bank account. Websites and social media for the club might also be established with an individual club member. It is important to establish all and any club business under its own span of control, authority, and ownership.

Some of you with an information technology background might recognize the above concepts as data integrity, which is defined as accuracy, completeness, timeliness, and relevance. These concepts are fundamental internal control measures that will assist future club officers and ensure future club viability. If you are a new club officer who has encountered data integrity challenges in the club’s record or business management, now could be an opportunity to, over the course of a year, pick away at any gaps and help make certain that any future club officer handoffs have a smooth landing.

A little bit of ongoing housekeeping in the records management area does not require a lot of effort, and in the long run, it is very beneficial for new club officers who are taking over operations. Club officer handoffs will be easier and less intimidating for those younger members who are looking to pursue some leadership experience.