Treasurer

Reprinted from Starting Point (Appendix II.B.4)

 

Tips for the Treasurer

Role

Serves as the chief financial officer of the League.

General

  • For a new League group, establishes management systems that assure fiscal responsibility is maintained when personnel changes.
  • Manages money and keeps records in compliance with all applicable laws and regulations and in keeping with generally accepted accounting procedures.
  • Is aware of the League's liability and assures that fiscal management procedures can pass the "prudent person" test.
  • Collects and disburses all League funds as directed by the board, allocating funds to budget categories.
  • Oversees all League financial records. Assists board members with financial information as needed.
  • Makes periodic reports to the board and membership on the League's financial status (at least quarterly).
  • Keeps books that provide a systematic record of all income and expenditures.
  • Closes books at the end of the fiscal year.
  • Provides complete records for audit or review.
  • Prepares a report for the annual meeting.
  • Prepares required reports for state LWV and state and federal government.
  • Keeps financial records for at least five years.
  • Serves as an ex-officio member of the budget committee.
  • With the membership chair, maintains an up-to-date membership list and sends out dues notices.
  • Submits membership reports to the LWVUS and state League unless this responsibility is assigned to the membership chair.
  • Forwards PMP to the LWVUS and state League in a timely manner.
  • Deposits tax-deductible funds with the state League Education Fund or with the national-level Education Fund.

 

Techniques

 

  • Obtain all materials from the previous treasurer and review them together.
  • When you take office, register signatures, yours and the president's, at financial institutions where the League has accounts.
  • Promptly deposit receipts (dues, contributions, sales) and pay bills to keep your League's credit good. Keep up with the paperwork.
  • Anticipate large expenses to avoid cash flow problems.

 

Annual Audit or Review of Financial Records

 

The financial records of the League should be reviewed at the close of each fiscal year. Such a review assures that the League's books and records are being properly kept.

The treasurer can help with the audit or review but should not be responsible for its report. If the League does not have a member who is a professional who will do so, a small committee of members, including off-board personnel, can do an informal review.

An informal review consists of the following procedures.

Start with bank statements. . .

    • Check the cash receipts journal against the deposits on bank statements and investigate discrepancies. Are all interest payments recorded?
    • Verify bank reconciliations throughout the year. Account for all checks by number. Total all checks for the year; compare with amount on statements.

Then review dues. . .

    • Check dues collected during the year against the current membership total. Understand reasons for discrepancies (transfers, life members, scholarship members, deaths).

         Vouchers. . .

    • Check journals against vouchers and investigate discrepancies. Are all expenses backed by an invoice or voucher? Are items being debited to the proper account?

      Taxes. . .

    • If applicable, recalculate sales/use tax owed state; compare with amount paid.

      Budget. . .

    • Compare income and expenses with budgeted amounts.

  Deposits of tax-deductible funds with the state (or national) League Education Fund. . .

    • Check transactions with the state League. What amount is available to the local League? Is the fund being used? If not, why not?

  Then do some math. . .

    • Recalculate a sample month and verify totals overall and for individual categories of income and expenditures. Check beginning balance, receipts and expenditures, and balance. Make necessary adjustments (corrections).

  Return to the bank statements. . .

    • Verify amounts in checking and savings accounts at the beginning of the year and the end of the year. 

The goal of the review is to assure accuracy. Discrepancies should be understood and adjustments made before an auditing report is made. The signed report may be worded as follows:

We have reviewed the books of the League of Women Voters of [NAME] as of [last date of fiscal year], examined the records of revenue and expenditures and traced beginning and ending cash balances to bank statements. The books are an accurate reflection of the financial condition of the League of Women Voters of [NAME] as of [last date of fiscal year] and the results of its operations and cash flows for the year then ended.

 

Reprinted from Starting Point (Appendix II.B.4)