The end of the financial year is literally just around the
corner, is your NFP ready? As a volunteer treasurer, there are a host of duties
that you must fulfill at the end of the year.
End of Year Duties for Treasurers
End of year functions for the treasurer include getting your
NFP's accounts in order, compiling and filing various reports, making sure your
paperwork is in up to date before any independent reviews or audits, calculating
GST, as well as preparing for the start of the new fiscal year. The volunteer
treasurer isn't the only board member, however, with duties and
responsibilities at the end of the financial year.
Directors and Board Members Also Have a Role to Play at the
End of the Financial Year
As part of their oversight and fiduciary duties, directors
and other board members also have certain responsibilities at the end of the
financial year. For example, board
members have a responsibility to ensure that they have a solid understanding of
their NFP's finances and that they have the knowledge necessary to be able to understand
financial reports, and question the accounting methods and information used to
compile reports and statements, including the various NFP budgets.
Even though board members are not involved in the day to day
management and operation of the NFP, they are still responsible for seeing that
the books are kept properly, and reports and other documents are filed on time
with the ASIC. Directors and board
members should also take steps to ensure that adequate controls have been put
in place to ensure the fair and transparent handling of cash and other assets
and that accepted accounting standards are used by the treasurer. They must also take steps to ensure that any
audits are conducted by professionals who are impartial, unbiased and avoid any
potential conflicts of interest.
Don't Wait Until the Last Minute to Compile End of Year
Financials
There are many duties that must be fulfilled to get your
NFP's finances and filings completed in a timely manner. Delays can occur
nearly anywhere in the process, and can result in the loss of time and funds
for your NFP. For example, if your accounts and other paperwork are not in
order before your audit begins, it will take the auditor more time to complete
the audit, which can result in the auditor charging a higher rate. Delays can
lead to late filings, which can result in fees and other penalties for your
NFP.
Treasurers should already be working on preparing for the
end of the financial year now in to avoid the extra cost and hassle that can
result from unforeseen delays and complications.
As a board member, you can help keep your NFP on track by
checking in with the treasurer to make certain that they have all of the
resources that they need to get ready for the end of the financial year. If there are newer members of the board that
have less financial experience, consider offering a short class or training
now, before the end of the financial year, to help bring them up to speed on
the ins and outs of your NFPs finances and their responsibilities as board
members.
