I'm on a committee

Saw this funny poem in the Heart Support - Australia newsletter and thought you might enjoy it too.

Oh, give me some pity, I’m on a committee.
Which means that from morning to night,
We attend, and amend, and contend, and defend,
Without a conclusion in sight.

We confer and concur, we defer and demur,
And reiterate all of our thoughts.
We revise the agenda with frequent addenda,
And consider a load of reports.

We compose and propose, we suppose and oppose,
And the points of procedure are fun!
But though various notions are brought up as motions
There’s terribly little gets done.

We resolve and absolve, but we never dissolve,
Since it’s out of the question for us.
What a shattering pity to end our committee,
Where else could we make such a fuss?

Is this your experience of being on a committee. :-)

Why Good Financial Management is Essential

Not-for-profit refers to the fact that no individual will gain from the profits earned by an organisation, but any well run organisation should be achieving some level of profit so it can meet the needs of its members or beneficiaries and to stay solvent.

Good financial management of an NFP is as important as it is for any other organisation or company. They require sound budgeting, receipting and invoicing and cash flow practices and should be audited at least annually to maintain the accuracy of all financial records.

NFP is still a business so it is important to know the financial position at any time.  How else will you know which activities are profitable and which are costing you money?  The Board of Management is responsible for the financial health of the organisation and if it is mismanaged, its members are often liable.  Do you really want to risk your personal assets?  

Members of the NFP and other members of the community that have supported their cause need to be able to see how their money has been used and the financial records need to be open to question and accessible at all times to all members.  Technically, anyone who is a member can walk in and ask to see the books when they feel like it.  Your books must be maintained to professional standards.

Financial management of an NFP organisation is a responsibility that is taken on by usually one or a small group of people but no matter what your role, it is important that you have a basic understanding of accounting processes so that you know that everything is being done properly.

Finance, Administration and Back Office Awards (FABO) finalists announced

The Finance, Administration and Back Office Awards (the FABOs) are an opportunity to recognise the huge contribution that non-profit organisations make to the Australian community and to recognise the ‘quiet achievers’, the people who work tirelessly behind the scenes of our non-profit sector.

The 2010 finalists have been decided. Judges selected forty finalists in nine categories from well over 200 nominees, more than expected for the FABO’s inaugural year. And it was a tough decision!

The aim of the FABO Awards is to celebrate and publicly appreciate the contributions made by those people who spend their time working behind the scenes of our non-profit organisations and social enterprises, people in Finance, Administration, IT, Human Resources.

All nominees and finalists will be recognised at the FABO Gala Dinner Celebration, 18 October in Sydney.

For more information or to purchase tickets to the Gala dinner go to the FABO website.

Fraud in Not-for-Profit Organisations

Fraud in not-for-profit organisations is, sadly, not a rare event.  If you do an internet search you will find lots of reports of court cases where a committee member has stolen funds from a community group.  Often the group is something small like a volunteer fire brigade or kinder committee and they are the ones who can least afford the loss.

The problem with smaller not-for-profit groups is that they are often from small communities where it is hard to find someone who is willing to take on one of the roles.  Sometimes members hold roles on a couple of different committees so they tend to do their own jobs and not worry about the rest.   I'm sure you know people just like this.

This leaves the organisation open to misuse of funds.  Reading reports of some of the court cases will show you that people accept the roles in good faith but that, through unfortunate circumstances or a gambling addiction, they begin dipping into funds which they can never pay back.  It's sad for the organisation and the individual that usually this goes on for a long time before it is discovered.

What can you do to help reduce the risk of this happening in your organisation? 

1.  Identify the areas of potential risk. 

2.  Develop a plan to monitor the situation.

3.  Take action.

For smaller groups this means actively working with the treasurer to help record and monitor your invoices and payments.  It means not leaving the control to one person.  An accounting system like Admin Bandit can bring some control to your bookkeeping because it is harder to 'fudge' than manual accounts.

If you are the treasurer for your organisation you need to protect yourself from risk by having at least two signatures on each cheque and regularly having the cash tin counted and balanced against your books.  It means asking for help when risky or difficult work comes in.

The risk of fraud is always present but if you can minimise the opportunity you will be protecting your organisation's future.

Canberra accounting software rewarded for helping community

Senator Kate Lundy presents ACS award to Nerida Gill

Admin Bandit online accounting software continues to sweep the awards pool with its eighth major accolade in four years, receiving the ACS Canberra ICT Community Award at the awards ceremony on 16 September 2010.

“Our software is fast developing a reputation as the premier financial management tool for Australia’s grass roots community and non-profit groups,” said Admin Bandit Director, Nerida Gill.

“The ACS is the peak body for ICT professionals, so to have our peers recognise our commitment to supporting community life in this country is a terrific endorsement,” she continued.

Admin Bandit has produced the only accounting software tailored to the unique needs of organisations at the grass roots of the community sector. It solves the many problems faced by volunteer treasures by providing users with the exact tools for meeting their legal responsibilities, including BAS, audits and monthly committee reports.

Award presenter Senator Kate Lundy MP said, “I am thrilled to present this award to Admin Bandit Online because it is a fantastic financial management software that supports hard-working volunteers who are contributing to their community”.

The award is another feather in Admin Bandit’s cap for what is turning out to be an exceptional year. In the last 12-months, the company has continued to upgrade its web-based software application, secured an internationally-renowned investor, won the nation’s most prestigious ICT award and represented Australia at the Asia Pacific ICT awards. Meanwhile, Ms Gill was crowned the Women in Information and Communication’s woman of the year for her contribution and role as mentor in the ICT industry.

“These successes are a great boost for our morale and credibility,” Ms Gill said. “However, as a former volunteer treasurer, the biggest reward is giving community and non-profit organisations a tailor-made product to modernise their financial management. Ultimately, that results in an enriched community life for us all.”

Photo by Emily White Photography

Settling in as a Volunteer Treasurer.

Are you new to the role of Treasurer? Sometimes when you agree to take on a new role the other committee members forget to tell you what the job entails. If you haven't been a treasurer before it can be a bit overwhelming.

Some time ago at Admin Bandit we put together this clip to help people start off on the right foot. I hope it helps you to get settled into the role.

Coming to a Consensus

Over at the Admin Bandit blog we have been talking about decision making by consensus.  In a 2 part series we looked at what consensus really is and then the steps committees need to go through when using the consensus model.

It pays to have a consensus when making decisions about finances so we thought we should bring you a summary of the consensus process and why it works so well.  For a more detailed explanation you can drop into the Admin Bandit blog.

Consensus means ‘by general agreement’. It doesn’t mean that everyone agrees with the decision but it does mean that everyone can accept it.  The power of consensus is that the decision is supported by the group.  No member disagrees to such an extent that he or she will undermine the result.

There is a fairly firm procedure to go through in this model of decision making.  The steps are:

1. Present the proposal to the group.

Be as clear as you can about what the proposal covers. The more work you can put into this proposal the more likely it is that the next stages will go smoothly.

2. Question time.

Let committee members get the clarification they need. People need to be sure that they understand the proposal and some need more information than others.

3. Open Discussion

The committee is encouraged to talk it through. You may find that you need to make some alterations to the original proposal – clarify, rephrase or even remove bits.

4. Call for consensus.

Ask you committee for their agreement.  Find out who is not yet satisfied and identify the issues.  Once you know the objections you can usually redraft the proposal to suit.

5. Present rephrased/rewritten proposal and call for consensus.

This is usually a formality by this stage. All concerns have been addressed and your proposal modified so you should reach consensus now.

6. Work out objections.

If there are still objections at this point you will have 2 options.  Firstly, you can guage the extent of the objection.  It might be that the member can 'live with it' and will agree with the others.  The other option is for when the objection cannot be overcome and that is to scrap the proposal and start again.

Consensus is a powerful thing and it is worth the time it takes to reach it.  Just imagine how strong and united your committee would be if they could reach consensus on all of the decisions?