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.
Friday, 29 June 2012
Thursday, 31 May 2012
How To Encourage People To Volunteer For 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.
Friday, 4 May 2012
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) -
- Sharing your story with images -
- Website & blogging - Wordpress
- Crowd funding (for a creative project) –
- Remote meeting tool – GoToMeeting
- Social Media Management –
- Collaboration Tool - ZohoProjects
- Online Accounting –
- Double entry book keeping -> xero or saasu
- Cash book -> Admin Bandit
- Payment Processing - Paypal
Wednesday, 25 April 2012
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.
• 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.
Thursday, 29 March 2012
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.
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.
Wednesday, 29 February 2012
Resources For Not for Profits
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.
Wednesday, 25 January 2012
Do Balance Sheets Matter?
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?
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