The End of the Financial Year for NFPs

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.  

Bookkeeping Mistakes To Look Out For

Being a volunteer treasurer for a community organisation can be a stressful post for some. The responsibility of the organisation's continued operations and growth depend on the financial side being steady and well accounted for. While it is an important job to get right, there is no need to lose sleep over it. Many possible mistakes are easy to avoid by looking out for problems that have plagued others in the past. Keeping this useful list of “do's and don'ts” in mind can help you avoid common problems with your bookkeeping. 

Don't let your records get behind.

The best way to maintain accuracy in bookkeeping is to keep it up to date. Even when expenses seem straightforward, letting things slide for a week or two can create a lot of extra work when trying to verify expenditure and earnings.

Don't throw away receipts

It is important to keep receipts for a few reasons. Of course, they are useful to maintain accuracy in the bookkeeping, and they can also speed up answering any queries about the bookkeeping that might arise.

Don't connect personal and organisational accounts

Sometimes, particularly when a group is just starting out, the desire to keep things 'simple' at the bank will entice someone to use an account connected to a personal one. It is simpler only for a very short time, and we strongly encourage that accounts begin and remain separate.

Do reconcile bank accounts

Allocate time regularly, perhaps weekly, to make sure your records and the bank's records match up. That way, any discrepancies can be caught early, and figured out before other problems result.

Do share responsibility with other members

For everyone's benefit, making sure the financial matters of an organisation are overseen by more than one person is critcal. Let at least two people bear witness to records and account activities, so there is never any shadow of suspicion, or outright loss of money within your organisation.

Do use up to date accounting software

A system like Admin Bandit can make keeping accurate books simpler and more time efficient. It is a small investment to make for big returns, and can make the treasurer's job a lot easier,  perfect for volunteer treasurers, who do not always have an accounting background.

When bookkeeping procedures are followed routinely, with appropriate technologies and safeguards in place to prevent errors, theft or accidental loss, mistakes become minimal, often non-existent. Then, a volunteer treasurer's role becomes simpler and much more enjoyable.

The Better Boards Conference 2016

For three days at the end of July, the Melbourne Convention and Exhibition Centre becomes home to the Better Boards Conference. As the website for the event states, it is “the premier governance and leadership conference for leaders of Australasia’s non-profit organisations.” This year's conference theme, “Game Changing Moves... Governing for Maximum Impact” and will especially address issues boards focus on as they adapt operations with newly developed game-plans.

There are early bird tickets available for the event until April 27th. It is consistently noted in the event promotional materials as well as in testimonials from previous attendees that not only office holders, but all board members can benefit from seminars and discussions held throughout the days of the conference. As well as attending seminars, the opportunity to meet with members of other organisations and share expertise and experiences can be invaluable to the effective running of non-profit organisations. Such meetings help foster the 'all-for-one and one-for-all' approach that community organisations are well known for. Board members meeting with others in similar positions in different organisations often creates bridges with benefits that run both ways.

The conference also features expert keynote speakers from a range of professional backgrounds. Leisa Prowse has been a board member of Lady Gowrie, Queensland, for nine years, and has served as Chair since 2010. Lady Gowrie is a leading early childcare provider, with a turnover in excess of $33 million. Prowse brings a background in strategy and operations experience, and has contributed to more than 160 projects in her time as a community leader.

Another speaker scheduled to attend is Om Dunghel, who is the director of Settlement Services International. Dunghel has over 25 years experience in government, private and non-profit-sectors, and was recently awarded a Lifetime Community Service Medal by the Premier of NSW for his significant contribution and commitment to refugee settlement and migrant advocacy in the state. As founding president of the Association of Bhutanese in Australia, and a current Director on the Board of Settlement Services, Dunghel brings a lot of insight and experience to the Better Boards Conference.

Attending the conference is an opportunity to access much valuable information, and ideas about implementing game-changing initiatives in your organisation. Also, as the website states, it is a chance to “escape the daily grind and focus on your governance.” Be sure to make the most of this opportunity.

National Volunteering Conference

Is your non-profit ready to come together with other volunteer groups and help Build the Future? Though early registration has now closed, it's not too late to attend!  You can still register for the 2016 National Volunteering Conference at the National Conference Centre in Canberra, Australia.

This year's 16^th annual event is hosted by Volunteering Australia and Beyond Bank Australia. If you volunteer, contribute to a non-profit's policies or are one of the leaders of a non-profit, you will not want to miss this opportunity to connect and network with others in the field and also learn new skills and get up-to-date on the latest developments and trends occurring in the volunteer sector today.

Don't Miss Out - Register Now

The event is currently scheduled for April 6-8, 2016. Registration under the Standard Fee is just $990, which includes GST. Registration includes conference materials, conference sessions attendance, and lunches as well as morning and afternoon tea on Wednesday and Thursday. Also included with the registration fee is Friday's closing lunch, Wednesday evening's reception and as well as the Gala Dinner on Thursday evening and transport to social events. If you would like, you can purchase also purchase extra tickets to the Gala Dinner for just $200 each.

When you register, you can either pay online, or choose to have an invoice sent to your non-profit for payment. If you choose to be billed, you will have 14 days to make payment, unless it is within 14 days of the conference date, in which case all accounts must be paid in full prior to the conference.

What to Expect

This year's event features addresses by several keynote speakers that will update attendees on the state of volunteering and provide insight into the challenges that all non-profits face today.   These speakers come from a variety of backgrounds that span a diverse range of volunteer organisations and associations, including John Brogden, the Chairman of Lifeline, Austalia’s leading suicide prevention service as well as author Susan J. Ellis, the founder and president of Energize, Inc., which offers training and consulting to help volunteer organisers from around the world to begin or expand their volunteer activities. 

In addition to keynote speeches, each day of the conference features several breakout sessions where attendees will have the opportunity to attend trainings and workshops that are specifically designed to help them learn new skills to empower them to be able to better lead their organisations and increase their ability to meet the needs of their community and their organisation's goals.

You can learn more about this year's specific keynote speakers, breakout sessions and other scheduled conference activities by consulting the 2016 National Volunteering Conference Build the Future Conference Program.

NFP Treasurers' Awards 2016

If you are reading this, there is a good chance you know full well how much time and energy goes into being a treasurer for a volunteer organisation. No one does it for the glory, but instead to offer service and energy to a worthwhile cause or group in their community.

As a token of appreciation for the endless hours and ongoing sacrifices treasurers make to keep organisations 'in business', Our Community and the Commonwealth Bank established the Not-for-Profit Treasurers' Awards.

These awards honour and highlight the work of three treasurers each year who have gone above and beyond the call of duty to ensure “good financial management, good financial governance and good financial outcomes.”

If you or somebody in your team deserves to be recognised for their contribution, be sure to nominate them when the competition opens in February. Consider signing up for the Our Community newsletter, Our Community Matters, to keep up with the initiative.

Celebrating 2015

Well, what a year it has been. It has been choc-o-block full of successes, triumphs and steep learning curves. And dare I say it, we know our charities and ourselves a little bit better than we did at the start.

Were you successful in securing funding for your NFP this year? It is a hard subject to tackle, but when working together with your local community, it can be very rewarding, not to mention beneficial in the long term. Or perhaps you had more luck with one of the available grants valid in your service area?

Many of our treasurers saw an increase in sponsorship which is a great move forward for NFPs and their awareness in the community.

Some of our working volunteer treasurers even had the chance to do some volunteer work outside of their usual treasury role. There are plenty of opportunities for volunteering, particularly around the December period when charities and NFPs are looking for additional hands to help with their Christmas-related projects.

Did you get a chance to look into the Fundraising Management Diploma at all? MTo recap, The Diploma in Fundraising Management is available to both home and international students as a distance learning course and enables participants to develop the knowledge and skills they need to advance in the area of professional fundraising – either working for an NFP or starting their own charity. Perhaps 2016 will finally be the year to take the plunge?

Whatever you will be doing, we hope that next year is, even more, eventful and successful than the last. So from Volunteer Treasurer to you, merry Christmas and a happy new year.

Are Cheques Still Relevant?

After peaking in the mid-80s, cheque use has been steadily declining. According to a report by the Australian Payments Clearing Association (APCA), the use of cheques has declined over 70% in the last decade.

With so many voluntarily adopting the use of debit and credit cards, as well as other means of electronic transfer for payment, some have begun to wonder if cheques are destined to share the same fate as Australia's Holey Dollars and one and two cent coins.

Disadvantages of Cheque Payments

Opponents of cheques cite the relative security of electronic transfers, and their speed and ease of use as reasons to stop accepting cheques as a form of payment. Most electronic debits and credits happen instantly, whereas it can take 3 or more days for a physical cheque to clear one's bank. It also costs banks about three and a half times more to process a physical cheque than an electronic transfer. The recipient also often has to go to the time and trouble of physically visiting their bank to deposit the cheque.

Even though less than 5% of all the payments made by individuals and businesses each day are made by cheque, this percentage still amounts to a large number of transactions. Almost one million of the payments that are made each day in Australia are made by cheque. As long as there is a need for cheques, it is unlikely that governing bodies will take legal action that would officially end their use.

Groups Still Clinging to Their Cheques

Even though it's unlikely that there will be an official "hard stop" for accepting cheques as a payment method, time itself may make the question a moot point. Most cheque users tend to be older in age, with less than 7% of those under the age of 30 using them.  As the population naturally ages, cheque use will continue to decline.

While older folks prefer to continue using cheques for nostalgia's sake, insurance proceeds, real estate sales, superannuation payments, and even property settlements are often paid by cheque for legal reasons.  Charities, sporting clubs and other non-profits also often prefer to use cheques since they believe it allows the group's treasurer greater control over the organisation's funds.

Why it's a Good Idea to Expand Payment Methods

While it's unlikely that cheques will be outlawed in the near future, many vendors, suppliers and customers may stop accepting them on their own. This fact alone makes it a good idea for the treasurer and other board members to investigate what steps are needed to start making and accepting electronic payments.

While it's likely that cheque use will still exist for some time to come, expanding the types of payment methods that your non-profit makes and accepts  will give your group greater flexibility with vendors and suppliers as well as decrease the time that it takes for funds to be processed and available for use.