The Treasurer
The Treasurer is the person with overall responsibility for the groups’ finances, and as such should be one of the signatories of the groups’ bank/building society account.
As the treasurer has a lot of responsibility within your group we have produced several tips and guidance notes for this role within the committee.
Tips on simple accounting procedures are available in these PDF downloadable documents:
It is important that members, especially committee members, know the groups’ financial position, as this allows the group to make informed decisions about future expenditure.
The Treasurer is NOT the person who decides what the groups’ money is spent on. This is the responsibility of all of the committee.
Main Responsibilities
1. Open and maintain a bank/building society account in the name of the group
2. Hold the groups’ petty cash
3. Keep proper accounts of all income / expenditure
4. Prepare regular financial reports for the committee
5. Allow any member of the group or its’ funding bodies to inspect the accounts
6. Prepare the accounts for annual audit
7. Present the accounts at the AGM
8. Pay members out of pocket expenses on receiving proper receipts
Treasurers Guidance Notes
The following tips are intended to guide the Treasurer through the sometimes complex process of keeping accurate financial records.
Why Should a Tenants/Residents Association keep Accounts?
1. The Council requires it as part of the recognition Criteria
2. It helps the committee to plan for future expenditure
3. It shows committee members if there is a need to raise funds
4. It shows that the Association is being run in an open, accountable and professional manner
5. Under the constitution, it may be a legal necessity
The financial responsibility of the Tenants/Residents Association Committee means that:
1. The whole committee is responsible for safeguarding the Associations' finances, not just the Treasurer
2. If funds are misused, or the Association cannot meet its' financial obligations, then some or all of the committee may find themselves personally liable
3. The whole committee should be aware of the financial situation of the Association, mainly through the Treasurers regular reports.
The Work of the Treasurer
The Treasurer’s main responsibilities are covered in "Committee Members Job Descriptions", but below are more specific guidelines.
The Treasurer should:
1. Open and maintain an account in a bank / building society in the name of the Association
2. Be one of the signatories on the account
3. Keep proper accounts of all financial transactions, backed up by bank statements, receipts etc.
It is recommended that the Treasurer keep three books:
One of the most common mistakes is getting petty cash money and money from the main account mixed up. By keeping separate books, such mix -ups can be minimised.
4) Prepare regular financial reports for the committee. Such reports should contain:
- How much money has been received and from where
- How much money has been spent and on what
- What interest has been earned on the bank/building society account
- The balance of the account(s)
- What future expenditure is expected?
5) Allow any member to inspect the account books (with reasonable notice)
6) Prepare the books for annual audit and arrange for an audit to be carried out
7) Present the audited accounts to the Annual General Meeting
8) Make sure that the bank mandate is kept up to date (the signatories details are correct)
9) Give impartial advice on any proposed expenditure within the aims of the constitution
10) Make sure that when the committee commits to spending money, that the money is available
If any member of the group whether committee or not, has any serious doubts about the expenditure of the group, they must make their views known at a committee or open meeting and have their views noted in the minutes.
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