THERE IS NO QUESTION, clubs continue to spend money on capital projects at record rates. Country clubs are spending almost 36 percent more than they were eight years ago, but that was also a result of clubs curbing spending after The Great Recession of 2008. Today,
A negative pledge is an arrangement made between the club (borrower) and the bank (lender) whereby the club will pledge not to encumber or sell the club or refinance the loan without the approval of the bank. It gives the bank more control over the
The Internal Revenue Service (IRS) is increasing its focus on good corporate governance for tax-exempt organizations, including tax-exempt social clubs. As of 2008, Part VI of Form 990 requests information regarding an organization’s governing body and management (Section A), policies (Section B) and disclosure (Section
In reviewing financing for proposed capital expenditure projects, clubs consider the following alternatives: Finance from operations. Those fortunate clubs that have funds available from operations for capital expenditure projects can use this most favorable option. Usually, this is not the case. Assess the membership. The
Q: What are some of the best practices for hiring club employees? Are background checks necessary? A: From a financial perspective, the cost of a bad hire can be considerable, from the amount of time and money spent on hiring the individual to the unnecessary disruption
Q: What are best practices that both the club Audit/Finance Committee and club employees should follow to make sure internal controls are protecting against cyber attacks? A: It almost seems commonplace when reading or listening to the news that some major corporation has fallen victim
Q: What are the most common issues addressed in the management letter following a club audit? How should management respond? A: Club operations have garnered increased attention from club boards during the recent economic downtown. Pressure to cut costs inevitably results in internal controls suffering—specifically
Q How can I prevent expense reimbursement fraud at my club? A Expense reimbursement is just one of many areas in a club environment where fraud can occur. Although no system is foolproof, sufficient controls can be put into place so that the opportunities to commit
Clubs strive to be the best they can in providing the highest quality of services to their members. In this pursuit of perfection, club leadership is generally interested in what other well-run clubs do. In certain cases, it may be just as instructive to know
Q. What does it take to be a “well-governed” club in the eyes of the IRS? A: Tax-exempt clubs that file Form 990 (Federal Return of Organization Exempt from Income Tax) annually with the Internal Revenue Service (IRS) Part VI, Section B questions 12, 13 and 14