I have received this question from Stephanie in the Solomon Islands.

What are the roles for treasurer for clubs and societies?

The treasurer’s role is very important and often it is very hard to find someone who has the experience or the skill to be treasurer. Many organisations are now paying professional book keepers to manage their finances and treasurer becomes the person who directs the book keeper and reports to the board or committee.

In a club or society, the treasurer manages the money but does not decide how to spend it – the committee or board does that. And so the role is more a custodian role and a reporting role.

Here are some of the roles – the list could be very extensive, but here are the main roles:

  • Be the main  signatory or authority on the bank account/s or investments – there should NEVER be only one signatory. ( see my post about fradulent behaviour)
  • Set a budget to present to the board or committee
  • Report at every meeting the key information:
    • Bank balance
    • Money paid out
    • Money received
    • Expected money not yet received
    • Performance according to the budget
  • These reports should be in writing and not verbal. The treasurer is accountable for the accuracy of the reports which should then be included in the board or committee minutes
  • Be aware of any risks the organisation may face and report them to the board or committee – for example, a significant reduction in membership that may result in less future income.
  • Maintain a watchful eye on every person who uses/spends money on behalf of the organisation – make sure they are authorised.
  • It is wise for the treasurer not to have decision making authority about HOW money is spent – that should be done by the board or committee
  • The treasurer needs to pay all accounts, once approved by the board, on time.
  • The treasurer needs to present all accounts for payment to every meeting of the board or committee and not pay them until they have been approved.
  • The treasurer needs to keep meticulous records of all money that comes in and its source, and all money that goes out with the authority to pay it.
  • The treasurer should account for every transaction that appears on the bak statement and present the latest statement to the board or committee meeting every month

Treasurer is onerous and needs to be done by someone who knows what they are doing. It ios not the role to give to someone to learn on the job.

This list is not everything that a treasurer needs to do, but it the main functions.

It’s really important to read the post about fraud so you are aware of what to look out for.

Please Note: The author accepts no responsibility for anything which occurs directly or indirectly as a result of using any of the suggestions or procedures detailed in this blog. This is not, and should not be taken as legal advice. All suggestions and procedures are provided in good faith as general guidelines only and should be used in conjunction with appropriate advice relevant legislation, constitutions, rules, laws, by-laws, and with reasonable judgement. If you are in any doubt, seek appropriate advice.

 

 

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