Treasurer’s Tools Overview Session 1 Role of the Treasurer Internal Controls Session 2 Budgets Financial Reporting 1

Role of the Treasurer A “Hands On” Role One of the most important Board positions Board depends on the Treasurer to be able to make decisions using solid, reliable financial information 2

Who is the Treasurer An officer on the Board Who is in charge of receiving and disbursing funds Reports on the Chapter’s finances Manages the Chapter’s finances Has custody of the valuable papers and documents of the Chapter 3

A Proactive Treasurer is the Best! The Treasurer needs to see her role as part - Information Officer Police Officer Mom 4

Characteristics of a Good Treasurer The following are important traits of a good Treasurer: Trustworthy, Impartial, Methodical Really likes and is comfortable working with numbers Understands Internal Controls Has the ability to translate financial information and concepts to the Chapter Has the ability to plan and strategize Is a really good sport 5

Internal Controls The most important legacy you can leave your Chapter are strong internal controls! Internal Controls are like seat belts What are the Components of Effective Internal Controls? Environment and Attitude Communication Control Activities 6

Segregation of Duties What are some important Chapter policies related to Internal Controls? Segregation of Duties Very difficult in a Chapter so must use other controls Books must be “open books” Board must be knowledgeable, objective and inquisitive - if no one ever asks questions of the Treasurer after you present a report you have a problem! 7

Internal Controls for Bank Accounts The bank statement and all bank correspondence should go to a Board Member (someone other than the Treasurer – let's call them the Second Eyes) and NOT directly to the Treasurer The Second Eyes Board member is looking at the bank account, reviewing the monthly bank reconciliation and the books Review payments (easy to do online) Review deposits for reasonableness 8

Internal Controls for Receipts Endorse checks “For Deposit Only and your account number” when received and deposit on a timely basis Keep copies (paper or scanned) of checks and lists that tie to deposits 9

Internal Controls for Credit Cards If you receive credit card numbers written down you must have a policy in place to destroy the numbers as soon as possible. Try and avoid this practice If your Chapter has members using a Chapter credit card the expenses should receive the same level of review and approval as other expenses. 10

Internal Control for Treasurer The Treasurer may never sign a check written to herself or pre-sign blank checks The Treasurer may not approve her own expenses on a Chapter credit card 11

Internal Controls for Expenditures Establish payment policies Require receipts…not a suggestion Online bill paying is convenient, but makes control more difficult Setup notifications to go to someone other than Treasurer Set up timely after the fact approvals Review documentation before signing checks - is vendor on an approved list? 12

Passwords are our Friends Use passwords to control access and to give permissions Remember to change passwords when Board members change Don’t use generic passwords like your Chapter name 13

Back Up Information All the controls won’t matter if your data is lost! Technology keeps improving, but we are still at risk of losing information so back up your data - ideally not at your home. Many sources of free cloud storage for data that is not high risk. 14

Limitations to Internal Controls Judgment Breakdowns Management Overrides Collusion Cost versus Benefit 15

Related Policies Conflict of Interest Policy Whistle Blower Protection Policy Records Retention and Destruction Policy 16

Establish a Finance Committee A Finance Committee can Provide financial oversight to the chapter Make the Treasurer’s job easier Help the Treasurer with many of her duties including budgets and policies 17

Things to Really Help the Treasurer Ideas on how to share the Treasurer’s duties and options when it is time to replace the Treasurer More Support 18

Things to Help the Treasurer The following Treasurer’s Tools Handout 1 includes: An Excel workbook that includes a Duties Check List By Month on page 1 and a Permanent File List of records that the Treasurer is responsible for on page 2 OMG Records Retention Policy is a very comprehensive list 19

Session 2 Budgets Financial Reporting Thursday May 2, 2013 at 11 a.m. and 8 p.m. eastern standard time 20