June 12, 2008

Weitzman to Youth Leagues:
‘Look for red flags on the financial field’

Comptroller offers advice to youth league organizations to keep tight controls on finances

Nassau County Comptroller Howard Weitzman is reaching out to advise youth sports leagues on how to keep a watchful eye on their finances, following the recent news of a Little league official pleading guilty to stealing from the Plainview Baseball Association. The Comptroller’s Office recently published an informative brochure entitled, “The How To’s of Youth League Finances” which gives advice to youth leagues on how to avoid financial pitfalls and help reduce the chances of any improprieties from occurring.

“Often there are dozens of red flags that show themselves long before a person is caught with their hand in the treasury of an organization,” Weitzman said, “but most boards are not lucky enough to have certified public accountants or auditors serving on their boards. Most board members and officers are just parents who are volunteering their time for their kid’s sakes. They don’t necessarily have any financial expertise, or experience in financial controls.”

“So many people contribute their time, money and effort to making these leagues the tremendous success that they are,” said Legislator Dave Denenberg (D-Merrick). “It makes sense to take easy steps to insure that our investment in our children is protected.”

The brochure explains the duties of a treasurer and tax laws for non-profit organizations, as well as a few key “red flags” that could signal financial trouble. Those red flags include:

• A lack of any recordkeeping, poor records or invoices without shipping documents.
• Conflict of Interest – Dealing with vendors related to any member of the organization.
• Access to only photocopied documents or missing documents.
• Payments to unusual vendors, high volume of purchases from new vendors or the same vendor.
• Vendors without physical addresses

"While a person doesn’t need to be an accountant to perform the duties of a league’s treasurer, a little education and awareness goes a long way,” Weitzman said"

There are also other financial tips included in the brochure. For copies of the brochure email nccomptroller@nassaucounty or call 516-571-2383 or click on the link below.

Youth League Financial Brochure