Role of Treasurer - Community Action Derby

Role of the Treasurer
 pays the bills promptly;
 ensures that funds are being spent in accordance with the group’s aims and objectives and
that money given for a specific purpose can be seen to have been used correctly;
 deposits cash and cheques;
 keeps accurate up-to-date financial records;
 keeps receipts for money in and money out (this shows that the group is able to handle money
which is important to possible funders);
 works closely with the Chair and other committee members – report feedback to committee at
each meeting;
 all income is banked on a regular basis;
 pays some small expenses in cash;
 communicates with the bank, ensuring that bank statements are regularly received and kept
safely and that cheque signatory mandates are kept up-to-date;
 checks bank statements and reconciles them with the cash book on a regular basis; and
 keeps an inventory of equipment.
Not the Treasurer’s job
Although the Treasurer is responsible for preparing a draft budget and reporting regularly to the
committee about the state of finances it is the responsibility of the committee to:
agree the budget;
make decisions about allocating money;
fundraise; and
make grant applications
Useful rules for dealing with money
There should be a separate bank account for the group – money should never be paid into a
personal account. Cheque books, petty cash and account books should be kept in a secure
Be methodical – keep clear and accurate records at the time of receiving or paying out
money. Don’t rely on memory to write it up later.
Keep all paperwork for any money you take in or pay out.
Always record the full amount of cash you receive or pay out.
Keep the group’s cash separate from your own.
Don’t hold onto large amounts of cash - bank it as soon as possible.
Check regularly that the cash in the tin equals the balance in the cash book.
Make sure that two people are required to sign cheques or withdrawal forms.
Check bank statements carefully.
How to record money coming in
Use a receipt book and record the date, what the cash is for and the person giving the money.
Hand over the top copy and keep the copy in the receipt book.
Bank the money by filling in the paying in book.
Record this transaction in the cash book (see example on the next page).
If cash is collected, for example from a fundraising event, at least two people should be there
when the money is counted and they should sign a slip certifying the total amount.
 Check that the paperwork is relevant to the amount on the cheque.
 Record in the paying in book the cheque amount and who it has been received from.
 Bank the cheque. If there is more than one cheque pay those all on the same paying in slip
but on the cheque stub you must record each cheque individually.
 Write on any supporting paperwork the date you received the cheque.
 Record this transaction in the cash book
How to record money going out
Paying by cheque
 All cheques should be signed by at least two people. Cheques shouldn’t be
signed by the person the cheque is for.
 When cheques are signed, the person signing should see the appropriate
 No-one should ever sign blank or partly completed cheques.
 Wherever possible, payments should be made by cheque rather than cash
 Before paying out any money make sure that there is an invoice to support the
payment. Each bill paid should be filed, with the date and cheque number written
on it.
 Write out a cheque. Record on the cheque stubs the date, which the payment is
for and the amount.
 Record the payment in the cash book
Paying out expenses from the petty cash tin
 The petty cash tin is used for paying out for small items, for example, postage,
sundries and stationery,
 Agree on a maximum figure for the petty cash float. All cash payments should be
made from this float, which should be regularly replenished from the bank
 No petty cash should be given out without a petty cash voucher being completed.
Receipts should be produced wherever possible.
 The petty cash voucher should be signed by the person receiving the money and
the person authorising the payment.
 Petty cash should be handled by only one or two people.
End of month procedure
 When the bank statement arrives, this gives you the opportunity to check that you
have written everything correctly in the cash book and that the bank hasn’t made
any mistakes with your money.
 Tick off each cheque in your book that appears on the bank statement. If there
are some cheques in the cash book which haven’t been included in the statement
take these amounts off the balance on the statement.
 Tick off all income that has been received by the bank. Again, if any income
hasn’t been included in the bank statement add these amounts onto the balance
on the statement.
 At the end of each month the cash book balance should match the bank
statement balance once any income has been added or uncleared cheques taken
We recommend that your group attends the Group Finances (Role
of Treasurer) training session. For further details or to book a
place please look at the training section on the website