Financial Responsibilities

Each organisation has significant financial responsibilities that must be taken seriously. These include:

  • Budgeting
  • Income generation
  • Risk analysis
  • Cash flow analysis
  • Book keeping and other record keeping
  • Dealing with cash
  • Financial reporting
  • Financial monitoring (are income and expenditure in line with the budget?)
  • Financial control (taking remedial action if they are not).
Your organisation must have appropriate financial systems in place to ensure that these responsibilities are carried out properly. A written finance policy is highly recommended. In terms of internal financial control, your procedures might include:
 
  • Using approval or requisition forms before incurring expenditure
  • Checking suppliers’ invoices for accuracy and reconciling them regularly
  • Sequentially numbering suppliers’ invoices on receipt
  • Paying suppliers on time
  • Only authorising payment if you have the original documentation to back up the expenditure
  • When authorising, marking originals as ‘paid’, together with the cheque number or details of any other payment method
  • Ensuring that expenses cheques are not approved/signed by the person receiving the money
  • Never signing blank cheques
  • Always having two signatories per cheque
  • Restrictively crossing all cheques ‘account payee only; not negotiable’
  • Safely storing unused cheques and cash
  • Keeping detailed records, on receipt, of all monies received
  • Using sealed, numbered boxes for public collections
  • Using numbered tickets for raffles and fundraising events
  • Opening the post by more than one person
  • Lodging receipts daily
  • Undertaking regular bank reconciliations that are approved by the treasurer.