Maintain knowledge of the organization and personal commitment to its goals and objectives; Understand financial accounting for nonprofit organizations; Serve as financial officer of the organization and as chairperson of the finance committee; Manage, with the finance committee, the board's review of and action related to the board's financial responsibilities; Work with the chief executive and the chief financial officer to ensure that appropriate financial reports are made available to the board on a timely basis; Assist the chief executive or the chief financial officer in preparing the annual budget and presenting the budget to the board for approval; Review the annual audit and answers board members' questions about the audit.
Treasurer Job Description
The treasurer, as the financial officer and advisor, is entrusted with the tasks of maintaining the organization’s financial records, and with the receiving, holding and disbursing of funds. The treasurer's job is extremely important. The treasurer's records leave permanent, legible documentation for future treasurers to follow, and his or her diligent financial management improves the earnings and savings habits of fellow members simultaneously maximizing the organization's financial resources.
Reports for which Treasurer is responsible:
Monthly Financial Report
The monthly financial report is completed on an SESCI generated form and includes a summary of income, expenses, accounts payable, accounts receivable and assets.
Monthly, no later than 2 -3 weeks into the following month.
Annual Financial Report
The annual financial report includes detailed information reflecting all organization income, expenses and assets January 1 through December 31. Income and expense accounts should be broken down into categories that offer reviewers a comprehensive glimpse at the year's financial activities. The report's accuracy is critical to establishing budgets for future years. Unless your organization prefers to file its own tax return, this report is used by SESCI Headquarters to create a consolidated tax return for the whole organization.
January 31, annually
Annual Organization Budget
Submitted to the Executive Committee for approval each year, the budget assists in ensuring the efficiency of organization operations.
Updated annually, or more frequently as needed
Getting the Job Done as the Treasurer: Tips and Details
How to Get Money
Organizations such as SESCI have a number of funding sources, from sales of advertising space in the newsletter, to attendance fees at their events, to fundraising activities, to supplemental per-member funding from SESCI Offices.
SESCI Headquarters supplements organization income by issuing funding authorization (check or wire transfers) to the treasurer quarterly. Included with second quarter funding is a base payment, which should be described in a SESCI Governance document.
Funding from SESCI Headquarters is contingent upon the organization's fulfillment of a number of requirements, including:
Please place these funds - and any received at organization meetings or events, or from advertising - in the organization bank account immediately, always recording the income and its source.
Where to Keep Money
The organization should have a checking account and it is incumbent upon the treasurer to maintain a balance large enough to operate the organization for at least six months. All excess funds should be deposited in a money market or savings account. Both of these bank accounts should be held within the same bank, making the transfer of funds from one account to the other - or from the old to the new treasurer - easy and convenient.
When to Spend Money
You should, as a rule, collect and file receipts and invoices for all purchases. If, for some reason, receipts are unavailable, be sure to record all transactions and note their purposes and amounts.
When disbursing money, be sure you have proper documentation (invoices) and that you have all necessary approvals. Issue checks whenever possible, using the organization's petty cash reserves only for incidental expenses.
All check cashing and bank account transactions should require two signatures - the treasurer's and the chair's (or chair-elect's).
When recording organization expenditures, be very specific. For example, if you receive cash at a SESCI event X, record it as "event X income." If you use that cash to pay the facility where the event was held, obtain a receipt and record the expenditure as a "event expense." These specific details will help you prepare your monthly reports and future budgets.
Always create a "paper trail." This is easy if you use a "Request for Payment" or expense form that must be filled out each time a check is written. The form should include the person/organization to whom the payment is being made, the reason for the disbursement, the date of the expense, and the amount. There should be a place for three signatures: the person requesting the payment, the chair (or chair-elect) and the treasurer.
As a rule, original receipts should be attached to the "Request For Payment" before it is presented to the treasurer for disbursement of funds. This method makes record-keeping and monthly and annual reporting easier for the treasurer.
Budgets: Total Income/Total Expense
Budgeting allows you and other organization officials to determine what you want to accomplish - and what you can accomplish - in the coming year. Prepare your budget with input from all organization officials. It is generally expected that you will begin with the previous year's budget, making changes and adjustments as needed. If your organization has never had a formal annual budget, begin by listing all of your expected income. Include projected advertising revenue and event/conference income, money you expect to collect during fundraising events, etc., and anticipated payments from SESCI Headquarters. Next, go through the checkbook or previous treasurer's reports and list each expense in an appropriate category (Membership, Recruitment, Newsletter/Bulletin, etc.). Your list should be comprehensive and include:
- Newsletter: A major organization expense, the major portions of which are printing and postage costs Miscellaneous postage: Generally, this remains the same from year to year
- Estimated travel expenses: Generally, both airfare and automobile travel expenses increase each year to allow for a contingency
- Organization business and social activities: Include the costs of dinners, audio-visual rentals, speaker fees, speaker travel, meeting room rental, ticket printing, outing fees, etc.
It's also a good idea to ask other officers for estimates of their committee expenses.
A good budget will show total income and total expenses as equal, with a cushion for some contingency savings.
Charitable Donations: Documenting, Recording And Reporting Per Revenue Canada Requirements
Organizations making cash or in-kind donations are guided by the Member Unit Donations rules per the Bylaws or Revenue Canada Requirements.
Nonprofit organizations must provide donors of $250 or more with an acknowledgement that will enable them to receive a charitable contribution deduction when calculating their tax payments.
The acknowledgement must include:
- The amount of cash and a description (but not the value) of any property other than cash contributed,
- Whether the organization provided any goods or services in exchange for the property donated,
- A description and good-faith estimate of the value of any goods or services provided by the organization in exchange for the contribution, if applicable (see Quid Pro Quo contributions, below).
Quid Pro Quo Contributions: SESCI must provide a written disclosure statement to each donor of a quid pro quo contribution in excess of $75. A quid pro quo contribution is a payment made to a charity by a donor partly as a contribution and partly for goods or services provided by the charity.
For example, if a member donates $100 for a fund-raising dinner dance, and receives a dinner valued at $40, the member has made a quid pro quo contribution.
In this example, the charitable contribution portion of the payment is $60. Even though the part of the payment available for deduction does not exceed $75, a disclosure statement must be filed because the donor's actual payment (quid pro quo contribution) exceeds $75.
In this case, the required written disclosure statement must:
Inform the donor that the amount of the contribution that is deductible for federal income tax purposes is limited to the excess of any money (and the value of any property other than money) contributed by the donor over the value of goods or services provided by the charity, and
Provide the donor with a good -faith estimate of the value of the goods or services that the donor received.
If the organization includes this information when it solicits the donation, it will not be necessary to provide another statement when the contribution is actually received.
Exercise care in preparing and issuing these statements. Knowingly providing a false written substantiation to a donor may be subject to Revenue Canada penalties. It may be considered aiding and abetting an understatement of tax liability.
Auditing: Procedures, Practices And Tips
The purpose of an audit is to examine and verify the accounting of the organization's funds and to make certain that the books are in good order for the incoming treasurer. While SESCI Headquarters may periodically audit organization financial records, audits are generally the responsibility of each organization and/or its agents.
SESCI urges the treasurer to audit its own financial records at least once a year; quarterly audits are recommended. If SESCI has established and followed procedures for the receipt and disbursement of funds - and documentation of such - the process will be relatively simple.
If, in the course of your audit, you find that documentation is missing or that proper care has not been taken to minimize the potential misuse of organization funds, your Audit Committee should recommend procedures to correct any deficiencies in the system.
Conducting an Audit:
Reviewing general cash, cash disbursements & cash receipts is easy if you (and the Organization Audit Committee) follow this checklist.
1. General Cash–
2. Cash Disbursements
3. Cash Receipts
Specific SESCI Responsibilities
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