Happy Holidays

Happy holidays!  You can take a break from the books for a little while.  I hope your year has been very successful.  2013 will bring with it all sorts of new challenges and opportunities. I hope you are ready for them.

We wish you a very merry Christmas and a happy New Year.  See you again after the break.
 

Handing Over To A New Treasurer

Taking over the role of a treasurer can at first appear a bit daunting and with many challenges but it is not as difficult as what you may think it is.  An important part of taking over the treasurer’s role is to make sure there is a proper handover as this allows you to start off in a positive way.  Arrange to meet with the previous treasurer to get an overview of the finances of the organisation as well as to discuss any other issues.  

At this meeting you should also:

• Get copies of the most recent financial reports that should include the financial statements, annual budgets as well as other supporting documents such as reconciliations and the previous audit report.
• Obtain copies of recent Finance Sub Committee minutes of meetings as well as the documents that are usually prepared and presented by the treasurer at these meetings.
• If you are already a board member you should have a policy and procedure manual that includes the Terms of Reference for the Finance Sub Committee but if you are new to the board then ensure you obtain copies of these documents.  
• If the organisation has accounting software such as Admin Bandit then arrange to receive training or support to use the software.  Also make sure you have your own password and for control and security purposes deleted any previous users.   
• Ideally the organisation will have a detailed financial management and procedures manual that outlines exactly what you need to do as the treasurer.  If so, then take the time to review it but if one doesn’t exist then once you are settled into the role you should prepare this manual.
• The previous treasurer should also hand over the cheque book, receipts book, purchase order books, bank statement, petty cash system and any other relevant information.  
• Make sure you receive any current outstanding accounts that need to be paid as well as details of any contracts such as maintenance agreements, cleaning contracts or any other contractual arrangements.
• Make sure you receive details that relates to income that you may expect to receive.  For example, this may relate to grants, subscription fees or enrolment fees.  
• If your organisation receives grants then make sure you receive the grant documentation so you know when funds will arrive, when acquittals need to be completed and when grant applications need to be made.
• Update the bank account records so you are registered as a signatory.  Also ensure that any old signatories who are no longer authorised are removed from the bank account records. 

Hopefully, once the handover occurs you should be well positioned to take you first steps as a treasurer.  If the previous treasurer is leaving the board then check whether they are willing to assist you if needed and if they are not available then other board members can assist. 

Once you are in the role of treasurer you will find it enjoyable and fulfilling and that you are genuinely making a difference.  

            

Volunteering Is Good For You – International Volunteer Day

Wednesday 5^th December is International Volunteer Day.  The idea is to celebrate and acknowledge the work of your volunteers because most not for profit organisations would not survive without their support.

With our busy schedules and lifestyles the thought of volunteering for a not for profit, charity or community based organisation may not appear to be such a great idea.  It can be tough to encourage people to take on a voluntary role, so in addition to showing that you appreciate your volunteers, why not show others that volunteering has a very positive side to it?

With that in mind I thought it was worth revisiting a Facebook post in October that discussed how volunteering can be good for you.  In the article titled "Confirmed – Volunteering Is Good for You" on the Pro Bono Australia website, it discussed how a US study has confirmed that volunteering"... not only helps others but helps volunteers to lead to a happier and healthier life". 

The article also stated a number of points that related to giving and health benefits that included:

 

·        Giving and even just thinking about giving in a spirit of generosity are linked to health and well-being.

·         People who think too much about themselves and their own desires – or their own troubles – are not very happy.

·         Helping is also a form of self-help when the giver has experienced the same problems as those receiving.

·         Volunteerism has positive impacts on happiness, mood, self-esteem, physical and mental health.

·         Giving can be a lifelong benefit for those who start young.

·         Altruism is associated with a substantial reduction in mortality rates and is linked to longevity.

 

In addition to the above benefits, volunteering allows you to meet new people who you may not otherwise have come into contact with as well as develop new skills that you may not have the opportunity to utilise in your day job.  For example, as a volunteer treasurer you may be the Chair of the Finance Sub Committee, develop financial planning strategies as well as develop a risk management framework and oversee the annual audit and financial reports.  Furthermore, if you are trying to gain experience in a particular organisation that is hard to get into then volunteering can help you decide if that is an organisation you would like to work for.   

As can be seen, volunteering is good for you so try and consider helping out an organisation as your personal gain will be significant as well as the benefits to your health.

Are Your Public Speaking Skills Up To Scratch?

It is inevitable that at some stage you will be asked to present your treasurer’s report to the committee or at the Annual General Meeting. How would you cope?

Speaking in public is not easy to do, especially when you know that your message is not what people want to hear. Just in case you need a little help, here are the three top tips from ToastmastersToastmasters.

1. Know your message. Be clear on what you want to say. If you are very nervous, memorise your first few lines. That gives your brain time to kick start and catch up with your mouth!

2. Know your audience. Understand who you are speaking to and choose your terminology to suit. Not everyone will understand financial terms, nor will a formal audience be expecting jokes.

3. Practice! There is nothing better for calming your nerves than to have practiced your speech so often that you know it by heart. Learn where in your speech to pause for breath and to gather your thoughts. Practice and practice again.

Public speaking is a skill so the more you do it, the better you will get.

Besides, if this is the standard of treasurer’s speeches, you’ve got nothing to worry about.

 

New To The Role Of Volunteer Treasurer?

Admin Bandit is software designed specifically for volunteer treasurers, particularly in the not for profit sectors.  Along with the software, Admin Bandit offers support through the many articles posted to the blog.

If you are new to the role of volunteer treasurer or even just learning how to be a member of a committee of management, there is a lot of really useful content available for you.  There is a very useful series of posts beginning with "Now that I am the Treasurer, what do I do?"  These will help you get settled into the role.

Some of the most important information you need before you begin is how to read and understand the financial reports for your organisation.  Starting at the beginning, the post entitled "What is a Financial Report?" explains what it is, why it is important and what the report includes. 

If you find that the books are a mess and you need help to get them sorted out, read the post on how to fix community organisation accounts.

Finance reports are not just a series of figures.  They are accompanied by a written report which explains what the figures are actually telling the committee.  If you are not sure how to read one, let alone prepare the report, you will find out more at "The Written Finance Report".

Keep reading the blog and you will learn about the role of the committee of management, where the Finance Subcommittee fits in and how the policies and procedures of your community organisation affect your role.

Admin Bandit is there to support you with information as well as systems so that you can comfortably handle your role as Volunteer Treasurer.

Westpac Community Treasurers' Award

Being the volunteer treasurer of any organisation requires commitment and dedication.  The role of the treasurer can be very time consuming as often the financial expertise of the organisation comes only from the treasurer. 

The role of the volunteer treasurer can take up a lot of time and usually requires more commitment than just attendance at the regular board meetings.  At the same time the volunteer treasurer knows this and does not seek recognition; they are often more than happy to make the commitment and take pride in the achievements of the organisation. 

Westpac also understands this and has established the 2012 Westpac Community Treasurers' Award to recognise and acknowledge the valuable contribution made by volunteer treasurers to the community.

Awards will be given for treasurers in the three following categories:

·         Small organisations:   For organisations with an annual income of less than $100,000 per annum.

·         Medium organisations:   For organisations with an annual income of between $100,000 and $1 million per annum.

·         Large organisations:   For organisations with an annual income of more than $1 million per annum. 

The winner in each category will win $5,000 for their organisation and a trophy to recognise their achievements, plus $5000 worth of tools and training from Our Community.

Nominations are due by 26 October 2012 and can be made online by following the link to the Our Community website.

Take the time to prepare and send in a nomination for your volunteer treasurer as they are worth it.

The Role Of The Audit

Do you rely on your auditor to pick up every little error? You could be in for some problems. Many committees assume that once an audit has been completed and the auditor’s report indicates that everything appears to be in order, there is nothing to worry about. What if you were wrong?

The role of the audit is to provide an independent review of the financial reports of the organisation. This usually includes the income statement, balance sheet, statement of changes in equity, cash flow statement, notes relating to the accounting policies and other additional information to help explain the figures. From all this information the auditor’s form an opinion as to whether the financial reports reflect the financial position of the organisation at the date the report was prepared.

An audit does not check every figure and it doesn’t check every transaction. Only samples of the transactions are reviewed. An audit does not review all of the internal and risk management controls. So while an audit may pick up on fraudulent activity it is not the responsibility of the auditor to hunt for it.

The visit of the auditor can be very valuable to your organisation if you use it strategically. The committee of management may ask to auditors to have a more detailed look into certain aspects of the operations of the organisation. This may occur as part of the end of year audit or during the year as part of the half year or interim audit. For example, you might ask the auditors have a more detailed look into the payroll and salary packaging arrangement to check that the correct pay rates are being paid and that you are in compliance with the FBT and PAYG taxation laws. The following year you may focus on the management of grants, unspent funds and compliance with funding agreements. The intention is that over several years the key parts of the operations are examined in more detail.

Remember, it is the responsibility of all the members of the committee of management to ensure financial viability of the organisation so at the completion of the audit you should ask the auditor attend your meeting to discuss the audit and its findings.

Prepare For The End Of The Financial Year

With the end of financial year already here there are a number of issues you need to focus on in relation to your accounts, the audit, and preparation for the new financial year. Listed below are some important issues you may want to address as part of the end of year process. As Treasurer you may not do all of these but it is important you track that these are completed as part of the end of year process. They will form part of the Board reporting process.

• Obtain from your auditors a schedule of requirements that they need to complete the audit. By knowing exactly what the auditors require for their audit you can save time and cut costs. If you are not prepared and you delay the auditors, they may charge additional fees. If you lodge certain documents late with ASIC you can be fined. It’s important to know that everything that should be done is actually being done.

• Ensure reconciliations are completed for all accounts and that they match balances in the Annual Reports. Also, with any balances in the accounts, understand why they exist and what they are for. For example, you may reconcile the Accounts Receivable and have a $9,000 balance which represents amounts still owed to you. It is critical you have a list of the debtors that makes up this balance as well as how long the debts have been outstanding for. If you have a debtor greater than 6 months then they may be a bad debtor and you are not likely to recover the amount. If you can’t or don’t do this then you need to tighten up your controls.

• Ensure your GST has been calculated up to 30 June and that any end of year adjustments have been included.

• If Group Certificates need to be prepared, make sure the payroll accounts have been reconciled. Also, as Group Certificates require reportable fringe benefits to be included make sure salary packaging details have been reconciled and included correctly.

• Identify and prepare end of year adjusting entries and make sure they are reversed in the new year. Failure to manage these correctly can result in an over or under statement of accounts and can have a significant impact if incorrectly left in the accounts.

• Prepare relevant reports and grant acquittals for any organisations you may have received funds or grants from. Also, review whether new or recurring funding submissions have been prepared and submitted.

• Prepare for the Annual General Meeting as often you are required to advertise the date well in advance of the meeting and also be clear about the procedures for the appointed or election of Board members.

• Always double check that the amounts in the Financial Reports are correct by checking the additions as well as amounts referred to in the notes and ensure they add up to the totals in the reports. Mistakes can happen and as you are signing off on the reports you must be sure they are accurate and correct. Do not just assume the auditors have got it right as they make mistakes too.

• Often at the end of the audit the auditors will prepare an Audit Closing Report that covers issues associated with their audit. Ideally, try and get the auditor to attend a Board meeting to discuss the report as well as cover any other issues the Board may discuss.

While there are many other issues you may need to address it is important you plan out what needs to be done and give yourself realistic timelines to get everything completed.

How To Encourage People To Volunteer For The Role Of Treasurer

For some committees the end of financial year means that it’s time to find new volunteer members. That isn’t easy but it is even harder when the vacancy is the role of treasurer.

You still have a few weeks up your sleeve so we want to give you a few ideas that you might be able to use to help you in tracking down and gaining your new committee members.

1. Ask people you know.

Have you ever gone up to someone after a meeting and asked why they didn’t put their hand up for the job? “Nobody asked me” is the usual reply, isn’t it? Don’t assume that people know you want them. Tell them. Ask them to join you.

2. Have clear instructions and processes in place.

If you’ve never volunteered before it can be daunting, especially in a role that is as responsible as treasurer. The more organised you are as a committee and the more processes and guidelines you have in place, the better. If you can show the potential volunteer that they will have all the support they need (in writing and from you and the other committee members) it’s more likely that they will take up the role.

3. Campaign and show off!

You’ve worked hard and you’ve had success throughout the year. Not everyone will see what you’ve done. You’re the magic behind the scenes. When you are starting to look for new volunteers, tell people what you’ve achieved and how good it makes you feel. Tell them how rewarding it has been for you. Show the difference that you’ve made. Being able to see the impact of the work often encourages people to get in and help. They can SEE the goal.

You’re probably looking at these tips and thinking that they are too simple and too obvious. Let me ask you, though, when was the last time you actually did any of these things?

They ARE simple techniques which is what makes them easy to overlook, but never underestimate the power of simplicity.

17 Top Technology Tools for Not for Profits

This list of top technology tools for not for profits is not comprehensive, however these are our current favourites.

• Member/Donation/Event Management/Communication – Wild Apricot
• Engaging with community (social media) -
• Facebook
• Twitter
• Sharing your story with images -
• Youtube
• Pinterest
• Website & blogging - Wordpress
• Crowd funding (for a creative project) –
• Pozible
• Kickstarter
• Remote meeting tool – GoToMeeting
• Social Media Management –
• Hootsuite
• Tweetdeck
• Buffer.
• Collaboration Tool - ZohoProjects
• Online Accounting –
• Double entry book keeping -> xero or saasu
• Cash book -> Admin Bandit
• Payment Processing - Paypal

Responsibilities Of A Director For A Not For Profit Organisation

Prior to accepting any position as a Director for a Not for Profit organisation there are a number of issues that you need to be aware of. Being a Director for a Not for Profit organisation has many rewards as often these organisations are community based, a charity or focus on a cause or activity that may not normally be possible for a For Profit organisation. Some of the issues that you should consider are detailed and summarised below:

• Legal Compliance: ASIC provides an extensive amount of information on duties as a Director such as:
o Duty to act in good faith and with care and diligence;
o Duty to act in the best interest of the organisation as a whole;
o Duty not to misuse information or misuse your position; and
o Duty to not trade while insolvent.

• Governance Framework: You must have a set of policies and procedures that provide a framework as to how the organisation operates. These will usually provide limitations and criteria about key aspects of the organisation.

• Financial Accountability: As a Director it is your responsibility to ensure your organisation keeps accurate and up to date financial records and that they comply with a number of legal obligations that include taxation laws, accounting and audit standards, OH&S laws and ASIC reporting requirements. In addition, as a Director you must understand the Finance Reports presented at Board Meetings and be able to satisfy yourself that they are an accurate representation of the organisation including being able to pay debts when they are due.

• Strategic Plan: One of the key responsibilities of a Board and therefore the Directors is to ensure the organisation has a Strategic Plan that will incorporate a Vision and Mission. The Strategic Plan sets out the main objectives for the organisation and how they will be achieved. In addition, the Strategic Plan is also linked to a budget that determines how resources are to be used as well as provide a framework to determine how the organisation has performed.

• Fundraising: Most Not for Profit organisations rely on government funding through grants, sponsorships from other organisations and donations. As a Director it is important that:
o Any grants are used as detailed in the funding agreement and that an acquittal is submitted.
o Sponsorship agreements are complied with as detailed in the contract.
o Any fundraising activities complies with both State and Commonwealth laws, they are used for the reason they have been raised and you can justify costs that may have been incurred to obtain the donations.

• Board Meetings: As a Director you need to ensure that Board meetings provide you with all relevant information that helps you make informed decisions and allows you to discharge your responsibilities as a Director.

Never underestimate the implications and responsibilities of being a Director because if you do not discharge your responsibilities there can be significant ramifications. If your organisation trades while insolvent there are significant civil and criminal penalties including the exposure to your own personal assets. Furthermore, as a Director you must ensure compliance occurs. Therefore, you need to ask yourself two questions:

1. Is the organisation compliant with all the requirements? While it may be easy to assume the organisation is compliant because you get the required reports at each Board meeting, how do you know if they are correct and accurately reflect the operations of the organisation. Hence the second question.

2. As a Director can you prove that your organisation is compliant? If you cannot provide an affirmative answer to that question then you need to ask yourself why and immediately rectify that situation.

If you are not sure how to do that then contact us so we can assist.

When Did They Invent Accounting?

Have you ever wondered how and when accounting systems were invented? You might not know that people were using accounting systems in civilisations as old as Ancient Egypt and Mesopotamia.

It fascinates me that people in such ancient times spent their days doing what we do, but doing it without our modern conveniences.

I found this video on YouTube. It’s a brief history of accounting and it’s interesting, not dull and dry - really. Oh, it is told by a computerised voice but that is quite interesting too.

Next time you pick up your calculator or work on your spreadsheet, think about the Ancient Egyptians. You have something in common.

Resources For Not for Profits

Anyone that has worked in or managed a not for profit organisation will be all too familiar with the difficulties and restraints surrounding resources. From staff to stationery, it’s a simple fact that any organisation needs a certain amount of resources in order to run effectively and efficiently to produce the results they need.

The good news is that there is a huge amount of support for not for profit organisations available from other groups, companies or institutions that recognise the work they do and help they need.

If you’re a not for profit struggling for resources, here are a few links and tips that can really help you to help others.

Community TechKnowledge

These guys provide software solutions to not for profits but they also have some great educational videos, webinars and software overviews which you can view for free. Try the Godsey Collection for a five part interview series of expert NFP trainer Gary Godsey. You’ll hear about things like leadership in NFP, remaining relevant, being competitive and fundraising.

Our Community

There is a huge amount of readily available and easy to find information at Our Community. With an extensive list of community resources to search through, this site provides easy navigation and very useful links and information.

Not for Profit Network

This Australian-based site will provide lots of good tips, insight and tell you about upcoming events for NFP’s. Sign up to their newsletter to get the latest updates and find an array of free non-profit publications and resources. Also helpful for putting you in touch with suppliers with resources and services specifically designed to assist NFP organisations, plus the chance to promote your own NFP.

Good luck with your resourcing and your not for profit organisation – remember, help is out there for you, too.

Do Balance Sheets Matter?

The end of financial year is a stressful time. Balancing the accounts on time and correctly can be very difficult if your records are even slightly disorganised. Add to that the production of the Annual Report and the Treasurer’s Report and you’ve got a big job on your hands.

One of the most important parts of the Treasurer’s Report is the balance sheet.

The Small Business Development Corporation of WA says,”The balance sheet is a statement of what a business owns (assets) and owes (liabilities) at a specific point in time. It lists the assets that the business owns, the liabilities owed by the business, and the value of the owner's equity (or net worth of the business).”

The balance sheet is a statement showing the financial health of the business and is a legal requirement for most organisations.

But how useful is a balance sheet? To most people who read it, all they see is a blur of numbers that mean very little. Indeed, even the full length balance sheet, usually compared to the previous year’s figures, means absolutely nothing to the layman so is there any real point in putting it in?

1. They are costly to prepare.

2. They take up time that the Treasurer could better use.

3. No one reads them anyway.

4. Very few people actually understand what they are reading.

5. The report is probably out of date by the time it is published so it doesn’t accurately reflect the financial position anymore.

6. One tiny mistake in the calculation of assets or liabilities can make the report invalid.

7. If you were debt free on 30th June but took out a huge loan on 1 July the balance sheet becomes irrelevant in your financial planning.

With all those negatives, I ask you for your opinion. Do you think that balance sheets matter?