COMMUNITY ACCOUNTANCY SERVICE

TREASURER INFORMATION SHEET

The Role of the Treasurer

The treasurer is one of the most important members of any organisation. If he/she fails to keep proper records of all income and expenditure, mistrust and misunderstanding will almost certainly arise at meetings. Often this can lead to conflict, which damages the work of the organisation and may even result in officers or members resigning and or funding being jeopardised.
The office of treasurer is a voluntary post, but it is becoming more commonplace for most of the treasurer’s work to be undertaken by a bookkeeper or finance officer, and the treasurer to simply have a supervisory role. Treasurers of small organisations may have to all the work themselves. Where there is a separate Treasurer and bookkeeper the general rule is that the treasurer is responsible for policy and reporting to meetings and the bookkeeper carries out the policy in the day to day transactions

Bookkeeping should be seen as a vitally important job within the organisation and not one left for a rainy day or a spare hour or two.
It should be done on a regular basis. Continuity is essential.
More than one person should know how to do the books in case of illness or the treasurer leaving.
Other committee members should give the treasurer support, as it can be a very isolating job.
The books should not be done under pressure and tiredness will obviously affect the concentration and care needed. Doing the work when fresh and alert can subsequently save hours of work latter looking for mistakes and errors, which could have been avoided?
Meetings should be structured to include financial reports and time should be allowed for preparing this information.
It should also be an aim to give time for training on financial matters so that all members of the organisation understand and are able to contribute equally to financial decisions. This can prevent bad feelings between the treasurer and other members.
Treasurer’s can find them
Have too much or too little responsibility Worry about the financial position Feel they do not have sufficient knowledge and struggle with the work
Emerge as a ‘Boss’ figure, which can cause resentment.
When electing a treasurer the committee should satisfy themselves that the candidate should be honest, competent, have confidence in handling money and be able to keep simple accounts.

The Responsibly of the Treasurer

To ensure that the finances of the organisation are properly handled in accordance with the organisation’s objectives.

To ensure that the organisation has written Financial Procedures and these procedures are adhered to in practice.
To ensure that there is an adequate financial recording and control system in use.
To keep up to date records of all the organisation’s finances.
To ensure that everyone in the organisation who handles money record all the transactions.
To report to the Management Committee regularly on the financial position of the organisation. It should be a written report, preferably monthly but at least once a quarter.
To prepare the year-end accounts or provide the necessary information for the accounts to be prepared.
To ensure that the accounts are audited or examined by an Independent Examiner and they have all the records that they require to carry out their inspection.
To present the year-end Financial Report at the Annual General Meeting.
To undertake financial planning, produce a budget for both income and expenditure and carefully monitor throughout the year the actual income and expenditure against that budget.

Treasurer’s Equipment List

Account Book/s or Computer Accounts Package
One or more cash analysis books with at least 7 cash columns to record all your cash and bank transactions.
You should have a book or page for each bank account, (current, deposit, savings etc) and one for petty cash.
You can use the same book if you wish working from the front for one account and from the back for another account (working your way to the middle)
You can find books, which have a large number of analysis columns over a double page, which means that you have to record your income at the front and expenditure at the back.
You can use loose-leaf sheets but there is the danger that you might loose a page and it is more open to fraud.
A computer accounts package suitable for your organisation. Quicken or Microsoft Money for small organisations, larger organisations might need a ledger based system provide by Quick Books or Sage.

Vouchers and forms

Petty cash vouchers
Expenses forms for staff and volunteers
Forms or a book for recording weekly income such as member’s subscriptions or refreshments.
A duplicate receipt book for acknowledging receipt of money especially cash.
Bank reconciliation forms
Report forms

File(s) for vouchers and receipts.

Remember that you have to keep your records for six years
A lever arch ring file. Either a section of one file or a separate file for cash receipts, cash payments, bills paid, money paid into the bank, unpaid bills)
Instead of a lever arch file you can use a box file, envelopes or wallets but there is more possibility of losing a bill or receipt.
File the receipts etc. in number order either by giving each transaction a unique number or by giving it the bank number such as the cheque number.
If the number is written in the top right hand corner it is easier to find the one you require than if the number is written in the middle of the document.

A secure place for the petty cash

A lockable petty cash tin
A hidden place for the cash tin

A secure place for the cheque book, paying in book etc.

A file for bank statements

A file for salary and wage records

A finance file to hold

The constitution
The registration details (Charity or Company)
List of sections and or affiliated user groups
Committee members names (Trustees)
A List of staff with job description
A list of volunteers
The finance procedures of your organisation
The cheque signatories
Committee minutes for the year
Property ownership information
Equipment list (major items)
Premises and equipment leases
Insurance (current schedule)
Funding information
Correspondence with the bank, Inland Revenue, Funders

Equipment

Hole punch
Stapler
Calculator
Computer if using accounts package.