Treasurer’s Tools

OverviewSession 1 • Role of the Treasurer• Internal ControlsSession 2• Budgets• Financial Reporting

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Role of the TreasurerA “Hands On” Role

• One of the most important Board positions

• Board depends on the Treasurer to be able to make decisions using solid, reliable financial information

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Who is the Treasurer

An officer on the Board

• Who is in charge of receiving and disbursing funds

• Reports on the Chapter’s finances• Manages the Chapter’s finances• Has custody of the valuable papers and

documents of the Chapter3

A Proactive Treasurer is the Best!

The Treasurer needs to see her role as part -

• Information Officer

• Police Officer

• Mom

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Characteristics of a Good Treasurer

The following are important traits of a good Treasurer:

• Trustworthy, Impartial, Methodical• Really likes and is comfortable working with numbers• Understands Internal Controls• Has the ability to translate financial information and

concepts to the Chapter• Has the ability to plan and strategize• Is a really good sport

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Internal ControlsThe most important legacy you can leave your Chapter are strong internal controls!

•Internal Controls are like seat belts

•What are the Components of Effective Internal Controls?•Environment and Attitude•Communication•Control Activities 6

Segregation of DutiesWhat are some important Chapter policies related to Internal Controls?

Segregation of Duties• Very difficult in a Chapter so must use other controls

• Books must be “open books”

Board must be knowledgeable, objective and inquisitive - if no one ever asks questions of the Treasurer after you present a report you have a problem!

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Internal Controls for Bank Accounts

• The bank statement and all bank correspondence should go to a Board Member (someone other than the Treasurer – let's call them the Second Eyes) and NOT directly to the Treasurer

• The Second Eyes Board member is looking at the bank account, reviewing the monthly bank reconciliation and the books•Review payments (easy to do online)•Review deposits for reasonableness

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Internal Controls for Receipts

• Endorse checks “For Deposit Only and your account number” when received and deposit on a timely basis

• Keep copies (paper or scanned) of checks and lists that tie to deposits

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Internal Controls for Credit Cards

• If you receive credit card numbers written down you must have a policy in place to destroy the numbers as soon as possible.

• Try and avoid this practice• If your Chapter has members using a Chapter

credit card the expenses should receive the same level of review and approval as other expenses.

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Internal Control for Treasurer

• The Treasurer may never sign a check written

to herself or pre-sign blank checks

• The Treasurer may not approve her own expenses on a Chapter credit card

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Internal Controls for Expenditures

• Establish payment policies • Require receipts…not a suggestion• Online bill paying is convenient, but makes control

more difficult• Setup email notifications to go to someone other

than Treasurer• Set up timely after the fact approvals

• Review documentation before signing checks - is vendor on an approved list?

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Passwords are our Friends

• Use passwords to control access and to give permissions

• Remember to change passwords when Board members change

• Don’t use generic passwords like your Chapter name

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Back Up Information

• All the controls won’t matter if your data is lost!

• Technology keeps improving, but we are still at risk of losing information so back up your data - ideally not at your home.

• Many sources of free cloud storage for data that is not high risk.

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Limitations to Internal Controls

• Judgment

• Breakdowns

• Management Overrides

• Collusion

• Cost versus Benefit15

Related Policies

• Conflict of Interest Policy

• Whistle Blower Protection Policy

• Records Retention and Destruction Policy

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Establish a Finance Committee

A Finance Committee can

• Provide financial oversight to the chapter• Make the Treasurer’s job easier• Help the Treasurer with many of her duties

including budgets and policies

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Things to Really Help the Treasurer

•Ideas on how to share the Treasurer’s duties and options when it is time to replace the Treasurer•More Support

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Things to Help the Treasurer

The following Treasurer’s Tools Handout 1 includes:

• An Excel workbook that includes a Duties Check List By Month on page 1 and a Permanent File List of records that the Treasurer is responsible for on page 2

• OMG Records Retention Policy is a very comprehensive list

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Session 2

Session 2• Budgets• Financial Reporting

Thursday May 2, 2013 at 11 a.m. and 8 p.m. eastern standard time

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