The week before last we discussed the Role of The Treasurer. This week we offer some more guidance on this.
Keeping Books.The Treasurer will also need a book to record the cash received and the payments made. In the case of payments this should include the following details: Date Payee Cheque No. Amount Analysis
In summary the Treasurer will require: a) Receipt Books with the name of the Organisation either printed or stamped on each page with each book and each page numbered sequentially. b) Petty Cash or Voucher Dockets c) Cash Book to record cash received and payments made.
Prepare a Financial Budget for the year ahead which ideally should be approved at the Executive Committee level. By having an approved budget targets will have been set for members to achieve. A typical budget will include: - Cash flow forecast of income from memberships, fund raising, government grants etc. - Cash flow forecast of expenses - Stationary - Postage - Equipment rental - Meeting cost - Bank fees - Advertising - Regional affiliation fees - Transport for events - Insurance
The budget should set difficult but achievable targets in terms of both costs and revenues. The budget should involve input from the individuals responsible for achieving the targets, i.e Membership Secretary, Fund Raiser, Social Events Organiser etc. so that by participation they feel part of the process of setting targets and they want to achieve them. This could be referred to as a ‘bottom up approach’,
The Treasurer should also review possible sources of finance and advise the committee on them. An important point to remember is that the Treasurer is not responsible for fund raising.
Practical Work Carried Out by the Treasurer
1. Present a list of creditor accounts for payment. 2. Present a report of the financial position of the organisation at the monthly meeting. This report should include: - Position at bank and cash in hand – bank reconciliation statement. - Income for the month - Expenditure for the month - Financial position in relation to budget - Expected income and expenditure for the next month.
Effectively the Treasurer should keep the Committee informed of the financial position and especially of any potential or actual problems encountered Present the Accounts for the Year at the AGM. Normally this will take up a considerable amount of time as a substantial amount of summaries of the books will have to be completed and usually within a short period. The Treasurer will be expected to present - Income and Expenditure Account for the Year Ended. - Balance Sheet The Treasurer must be in a position to answer questions on the accounts from the floor of the meeting. Once all queries are dealt with, the accounts are proposed and seconded for adoption by the meeting. Then the Treasurer can relax!
The Treasurer’s job will be made a lot easier if he/she follows these five simple rules: i. Give receipts and retain duplicates for all money received, however small the sum. ii. All money received must be lodged in Bank, lodgement slip receipted and lodgement recorded iii. All expenses, including drawings for Petty Cash, must be paid by cheque which will be recorded in the appropriate book. iv. Obtain a receipted Invoice or receipted voucher or Petty Cash docket for all cash paid out however small v. Never make cash payment from cash received; for example, do not pay the Secretary £10 expenses form £30 received from a raffle. Income must always be recorded and paid in, and expenses must be recorded and drawn out.