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One of the first things a treasurer should do is to set up a bank or building society account. Several of them offer a 'clubs and societies' account which is a low-cost way to run an account. It is worth asking your own bank manager for advice. If you have been with the bank for several years, she or he even be able to help sort you out a low or no charge account. You should stress that you will not be looking for any form of overdraft. Seek advice from other banks as well before agreeing anything. Group accounts will normally need more than one signature. It is sensible to have a system where any two out of four nominated signatories are able to sign a cheque. This means that money can be spent when one or two key people are away, but it also provides security for your group. Regular bank statements can be a valuable way of checking both how much money you have and whether your accounts are in order. Some banks supply monthly statements as a matter of course, while others may ask you to specify what you want The records for that account should link to the group's own accounts and as the group grows so the accounts should too. There will be a range of cost and expenditure headings, and you will need to know how much is being spent on each, especially if you have set a budget for that expenditure. It is also important that the rest of the group understand the role of the treasurer and the need for accurate accounts. If a small group gets a large grant for the first time then people may think 'we're in the money' and make some bad decisions or even try and spend the money without authorisation or agreement. If people are to spend money make sure it is agreed by the group or whatever body is co-ordinating the project you are running. Large sums should be specifically agreed, and you may wish to set a limit on how much the coordinator or worker may spend without consulting more widely. For small sums try and get people to spend the money first, get receipts and then claim it back. It is important that your treasurer is very prompt in meeting such claims, and equally important that everyone get receipts for expenditure. Keeping good records is not very exciting. Too often it ends up near the bottom of a list of priorities. Make sure this does not happen to your finances. Keep records of all income and expenditure as soon as it comes in or goes out. The treasurer and group leader should meet regularly to make sure that everything is up to date. At the end of the year you should look to produce an income and expenditure sheet for presentation to the rest of the group, so that people can be satisfied that their money has been put to good use. If you can get this audited by an independent but friendly accountant, it will show potential funders that you are a responsible and well-organised group. All content copyright © 1986-2008 BTCV Ltd. Registered charity No. 261009 |
