MENTOR THE
TREASURER PROGRAM
TREASURER’S GUIDE
INTRODUCTION
The Mentor the Treasurer Program (the Program) is a service that matches a Treasurer (Mentee) with a Mentor.
The objective of the Program is to assist small not-for-profit organisations through guiding their Treasurer in the
maintenance of sound records and the preparation of sound financial statements, to enable the Organisation to be
financially well managed. This may in turn assist the Organisation in finding a suitable auditor.
The Mentor will not perform the work required: They will guide the Treasurer in fulfilling their role. The Mentor is not
a source of labour, only a source of information and guidance.
This guide has been prepared as both an overview of issues likely to be relevant to small not for profit
Organisations and a source of suggestions on best practice. It does not claim to provide answers to any particular
concern your Organisation may have. Requirements that relate to a particular state or territory may change from
time and time and may vary between atates and territories. You are responsible for checking that this information
is still current.
The information contained in this guide is provided as a guide only and is not a substitute for professional advice
and CPA Australia accepts no responsibility to you or your Organisation for any reliance you may place upon the
contents in this guide.
TREASURER GUIDE - Version 6.0. Released May 2014
Contents
INTRODUCTION ..........................................................................................................................................................1
1.
GOVERNANCE ....................................................................................................................................................3
2.
LEGISLATIVE REQUIREMENTS .........................................................................................................................4
3.
FINANCIAL REPORTING AND CONTROL .........................................................................................................4
3.1.
4.
Cashbook ......................................................................................................................................................4
PROCEDURES.....................................................................................................................................................5
4.1.
On-going .......................................................................................................................................................5
4.2.
Monthly .........................................................................................................................................................5
4.3
Annually ........................................................................................................................................................5
4.4.
As required through the year ........................................................................................................................6
5.
RECORD KEEPING .............................................................................................................................................6
6.
INSURANCE .........................................................................................................................................................6
7.
OTHER MATTERS ...............................................................................................................................................7
8.
7.1.
Wages ...........................................................................................................................................................7
7.2
Fixed assets included in your balance sheet ................................................................................................7
7.3
Commonwealth Taxation ..............................................................................................................................7
USEFUL DEFINITIONS ........................................................................................................................................7
APPENDIX 1 State and Territory Legislative Requirements ........................................................................................8
APPENDIX 2 How to set up and use the MS Excel™ Cashbook template ............................................................ 10
APPENDIX 3 - Useful References ............................................................................................................................. 12
TREASURER GUIDE - Version 6.0. Released May 2014
1.
GOVERNANCE
Getting this right for your Organisation is one of the most important aspects of ensuring it is well run without
inadvertently exposing yourself and other committee members to financial and other risks. Treasurers have a vital
role to play in this, even though some of the issues are not strictly financial. Good financial control and associated
record keeping are a very important aspect of governance, but only a part. Moreover, all committee members are
equally responsible for all aspects of the Organisation’s governance and no member can rely on the excuse that
they ‘didn’t know because that was someone else’s job’. If you don’t know, you are obliged to ask sufficient
questions to satisfy yourself that the situation is as it is represented.
Some of the issues that relate to governance are:

The conduct of Management Committee and Members’ meetings

The proper documentation of the outcome of committee and members’ meetings

Observance of the requirements of the Organisation’s constitution and, where relevant, the Associations
Act and Regulations in your State/Territory

The necessity of all committee members to fully understand their responsibilities, be aware of their
collegiate obligations and to understand that a valid decision of a committee meeting binds all committee
members, not just those present at the meeting at which a particular matter was agreed - or only those that
supported the decision

If you have charitable status and/or deductible gift recipient status, observance of the requirements of the
Australian Charities and Not-for- Profit Commission which took over these activities from the ATO in
December 2012

If you are not already incorporated should you become so? This has important implications. Being
incorporated adds a little more formality (and work) to the committee, but not being incorporated can
significantly affect the ability to enter into contracts. It also potentially exposes individual committee
members to personal liability for debts and/or claims for damages or compensation. (Unless the
Organisation is incorporated, it is unlikely to be able to insure against these risks.)

Do you have adequate risk management procedures covering, for instance, protection of committee
members against litigation and personal financial risk, theft or fraud by members or employee/s if any,
expenditure of funds, investment of surplus funds, alleged wrongful dismissal of an employee, proper
insurance of assets owned or leased by the Organisation and accurate records of them etc

If you have an employee/employees, including someone on hourly contract- employment, are all ATO,
superannuation guarantee, workers compensation and, if applicable, State payroll tax obligations being
met?

Conflicts of interest
Further information on governance can be found at www.ourcommunity.com.au under the heading Community
Resources.
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2.
LEGISLATIVE REQUIREMENTS
These vary between States and Territories
Details for each State and Territory can be found in appendices 1A to 1H and are current as at the date this guide
is issued. The relevant regulatory body in each State and Territory may update them from time to time. They
include reference to each State’s/Territory’s Associations Incorporation Acts and fund raising legislation and
requirements. Some States also have separate legislation concerning the sale or provision of alcohol and perhaps
other requirements. Check with your State/Territory liquor licensing authority or the Police for advice on these
matters.
Australian Capital Territory
Appendix 1A
New South Wales
Appendix 1B
Northern Territory
Appendix 1C
Queensland
Appendix 1D
South Australia
Appendix 1E
Tasmania
Appendix 1F
Victoria
Appendix 1G
Western Australia
Appendix 1H
3.
FINANCIAL REPORTING AND CONTROL
What needs to be done to set up a proper system depends heavily on whether you have an accounting package
such as MYOB™ or QuickBooks™. These packages are based on standard accounting practices. If you don’t have
a package such as the above, you’ll need to have an alternative system that can be either fully manual or partly
computerised.
3.1.
Cashbook
Your accounting system is the basis of generating reports to the members and the means of substantiating or
proving the transactions of the entity. The system used will depend on the volume of transactions and complexity of
the entities finances and can be a paper based cash journal or cash book, spreadsheet based worksheet or
workbook, or a commercial software program, either loaded on your computer or cloud based.
All accounting systems are based on the cashbook. It records all amounts of cash receipts and payments and is
the basis from which the receipts and payments statement and balance sheet is prepared.
If you only have a few transactions a month and you don’t have access to a computer, you may wish to use a
manual cashbook and write the receipt and payment details by hand into a paper cashbook.
Alternatively, if you have access to a computer, but do not have access to accounting software you may elect to
use the optional MS Excel™ workbook provided. This simple package will enable you to record all transactions,
reconcile your bank account/s and prepare regular reports for your management committee. An asset register is
also included.
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4.
PROCEDURES
4.1.
On-going
1.
On your appointment as Treasurer, or if you are not sure, check with your Organisation’s bank identify
current cheque signatories, ensure you are listed as a signatory and that all volunteers no longer involved
with the management of the Organisation are removed.
2.
For good governance, ensure that at least two members of the management committee have to sign all
cheques. Never sign a blank cheque or ask someone to sign a blank cheque for you as it defeats the
purpose of double signatories.
3.
To ensure consistent delivery of all mail, especially accounts payable, receipts, bank statements, etc., we
strongly suggest that your Organisation has a post office box.
4.
Issue receipts for all money received. The receipt book should be pre-numbered, in sequence and
cancelled receipts should be retained.
5.
Promptly bank all money received. Your volunteer insurance may define ‘prompt’ as within as little as two
business days of receiving the money. Check your policy for details. Prompt banking of money received is
essential to ensuring that your insurance against theft is valid.
6.
Pay accounts promptly, ensuring you have authority of the committee to pay any accounts. Urgent
payments that may be required or payments of specific types, e.g., rent, may be subject to standing
authorities from the committee, but they should still be reported to the committee as soon as possible after
payment.
7.
Do not issue petty cash without receiving a receipt or voucher.
8.
Clearly record receipts and payments in the cashbook and prepare a bank reconciliation on a monthly
basis.
4.2.
Monthly
1.
Reconcile all bank accounts
2.
Prepare reports as required by your management committee. A simple form of monthly report includes:
•
Current bank balance
•
Payments made since the last meeting
•
Funds received and banked since the last meeting
•
Unpaid accounts requiring approval for payment (this should be minuted)
4.3
Annually
1.
Prepare annual financial statements as required by your Organisation and/or your State/Territory or
Commonwealth legislation.
2.
Ensure that any returns required by your State/Territory and/or Commonwealth regulator/s are submitted
on time and as required.
3.
If you are a charity registered with the Commonwealth Government, provide details as requested by the
Australian Charities and Not for Profit Commission. The commission will advise you of its requirements. (If
you are not sure whether you are a charity registered with the Commonwealth, you can ascertain this by
searching the details of your ABN at http://www.abr.business.gov.au/Index.aspx .
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If you decide to use the MS Excel™ Cashbook template, further information on how to set it up and use it to keep
track of non-financial assets and bank reconciliations and reports for your management committee can be found in
APPENDIX 2. This information is also relevant if you have a totally manual book-keeping system or are simply
unsure of what is generally required.
4.4.
As required through the year
Ensure that ATO, superannuation guarantee, workers compensation and, if applicable, State payroll tax obligations
are being meet and on time.
5.
RECORD KEEPING
We encourage you to set up a separate file (or sections in the file) for the following:
1.
Bank statements
2.
Receipts
3.
Payments
4.
Bank reconciliations
5.
Management committee reports
6.
Minutes of meetings (especially for approval of payments)
7.
Club constitution
It is recommended that the above are filed in date order with the oldest on the bottom and the newest on the top - it
makes it easier for you to file and find things if they are in date order. If you have many transactions per month you
may wish to have a separate tab for each month or each supplier depending on the volume to be filed.
6.
INSURANCE
Always ensure the Organisation has sufficient insurance on any property it owns and public liability insurance and
any other insurances, such as ‘volunteers insurance’ and indemnity for management committee members. If the
committee does not think it is necessary, always ensure you raise it at your first meeting as Treasurer and ensure
the decision made is minuted. If you have insurance then ensure you are aware of the renewal or expiry date, so
you are fully aware of when the next premium is due. You may also find it prudent to seek personal cover to
protect yourself in the event of any action against the committee or the Organisation.
An asset register is an important record where insurance is concerned. It provides the basis for providing evidence
that these items existed. It is also a way of recording where assets are located, e.g., the laptop used by the
minutes’ secretary.
Please note that if your Organisation is not incorporated, you may not be able to readily obtain suitable
insurances.
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7.
OTHER MATTERS
7.1.
Wages
If your Organisation has part time or full time employees please seek additional advice. At a minimum, you need to
obtain information about industrial awards and conditions, taxation, superannuation, workers compensation,
occupational health and safety and possibly payroll tax.
7.2
Fixed assets included in your balance sheet
This usually means all durable items costing over $300 per item. Please seek additional advice on how to account
for items you already have or are intending to purchase.
7.3
Commonwealth taxation
Generally, community Organisations are exempt from Commonwealth Government income and capital gains
taxation. You can check your Organisation’s status via the ABN website noted above. A number of ATO
publications that may be of assistance with various aspects of the operations of not for profit Organisations can be
found in Appendix 3 - Useful References. These can be downloaded from the ATO’s website as detailed in the
appendix. The ATO recommends that your exemption status should be self-assessed (a tool is on the ATO
website) at least once a year or when your purposes or activities change – and the record of this should be
reviewed and signed by at least two committee members, preferably all of them, each year.
8.
USEFUL DEFINITIONS
The following is an explanation for some terms you may be exposed to as Treasurer:
Receipts/income –all funds received by the Organisation.
Payments/expenses – any expenses or outgoings paid by the Organisation.
Capital expenditure – money that you will spend on significant items that will last longer than one year, such as
equipment like computers, furniture, etc. It doesn’t refer to such minor things as a kettle for making coffee/tea, etc.
These are normally expensed immediately (however, they should be recorded in your asset register.)
Asset register – a record of all items of equipment and furnishings that the association owns, leases or has on
loan. Even if you only have a few minor items of little value, it is worth recording them, particularly where you share
premises with other bodies.
Equity – your net assets (total assets less liabilities)
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APPENDIX 1 STATE AND TERRITORY LEGISLATIVE REQUIREMENTS
Appendix 1A
Australian Capital Territory
Associations Incorporations Act 1991 www.legislation.act.gov.au/a/1991-46/current/pdf/1991-46.pdf
Fund raising
Lotteries Act 1964 www.gamblingandracing.act.gov.au
Appendix 1B
New South Wales
Associations Incorporation Act 2009 and Associations Incorporation Regulation 2010
www.fairtrading.nsw.gov.au/ftw/Cooperatives_and_associations/About_associations.page
Fund raising
Contact the NSW Office of Liquor, Gaming and Racing, Department of the Trade and Investment
www.olgr.nsw.gov.au
Appendix 1C
Northern Territory
Associations Act
2012 dcm.nt.gov.au/strong_service_delivery/supporting_government/current_northern_territory_legislation_databa
se
Fund raising
Contact the Licensing and Regulation Division, NT Department of Justice.
www.dob.nt.gov.au/gambling-licensing/Pages/default.aspx
Appendix 1D
Queensland
Associations Incorporation Act 1981 (as amended by the Associations Incorporation and Other Legislation
Amendment Act 2007
www.legislation.qld.gov.au/Acts_SLs/Acts_SL_A.htm
Fund raising
Contact Office of Liquor and Gaming Legislation, Department of Justice and Attorney-General
www.fairtrading.qld.gov.au/associations-nonprofits.htm and
Queensland Office of Gaming Regulation www.olgr.qld.gov.au/
Appendix 1E
South Australia
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Associations Incorporation Act 1985 www.legislation.sa.gov.au
Fund raising
Consumer Business and Services
www.cbs.sa.gov.au/wcm/?s=fund+raising
Appendix 1F
Tasmania
Associations Incorporation Act 1964:
www.consumer.tas.gov.au/registrations/incorporated_associations
Fund raising
Liquor and Gaming Branch, representing the Tasmanian Gaming Commission
www.treasury.tas.gov.au/domino/dtf/dtf.nsf/main-v/divhome?opendocument
Appendix 1G
Victoria
Associations Incorporation Reform Act 2012
www.consumer.vic.gov.au/clubs-and-not-for-profits/incorporated-associations
Fund raising
Consumer Affairs Victoria, Department of Justice
www.consumer.vic.gov.au/clubs-and-not-for-profits/fundraisers and
Victorian Commission for Gambling Regulation, Department of Justice: www.vcglr.vic.gov.au/
Appendix 1H
Western Australia
Associations Incorporations Act
www.slp.wa.gov.au/legislation/statutes.nsf/main_mrtitle_61_homepage.html
Fund raising
Department of Commerce, Charitable Collections Section.
www.commerce.wa.gov.au/consumer-protection/charities/ and
Department of Racing, Gaming and Liquor www.rgl.wa.gov.au/
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APPENDIX 2 HOW TO SET UP AND USE THE MICROSOFT EXCEL™
CASHBOOK TEMPLATE
The template consists of 8 worksheets that allow for easy compilation of monthly and annual data, bank
reconciliation, sample committee reporting and monitoring of non-financial assets.
The summary page lists all receipts and payments for the month and provides the information needed to complete
the Monthly Report. It also allows for the bank reconciliation to be included.
All of the information is drawn from the receipts, payments and bank reconciliation worksheets.
These latter worksheets are only needed if you have many transactions that could not fit on one page.
The receipts-payments account is a cumulative summary of each month’s receipts and payments and provides
essential information for annual reporting to members and regulators. The monthly report and balance sheet are
mentioned below. The asset register also allows for calculating depreciation on assets of significant value e.g. $500
and more that are expected to last for more than one year.
Monthly
Bank reconciliation
1. Total all columns in the cashbook and record the total receipts and payments for each month in the bank
reconciliation.
2. Record the previous month cashbook balance on the bank reconciliation and add the total receipts and
subtract the total payments, don’t forget to add the bank fees to the payments and the bank interest to the
receipts. The total of these amounts is the ‘cashbook balance at the end of the month’.
3. When the bank statement arrives, tick each payment on the bank statement with the cashbook, any unticked payments are un-presented cheques and should be recorded on the bank reconciliation. Tick each
deposit on the bank statement off with the receipts section of the cashbook, any un-ticked deposits are
outstanding deposits and should be recorded in the bank reconciliation. The total of these amounts should
agree with the ‘closing cashbook balance’ in (see point 2. above). If these two agree then the bank account
is reconciled.
4. The totals of each column in the cashbook can be transferred to the ‘receipts and payments
and check the totals in the report.
account”
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Management committee reports
1. A “monthly report” template is provided with basic information that should be reported to the committee for
each meeting, these are basically
•
Current bank balance
•
Payments made since the last meeting
•
Funds received and banked since the last meeting
•
Unpaid accounts requiring approval for payment (this should be minuted)
2. Your committee may also require a progressive statement of income and expenditure and balance sheet to
be submitted from time to time. The receipts and payments account worksheet is basically an income and
expense statement. Simply set the print area that will be needed. The balance sheet requires you to input a
few simple items such as bank balances, cash on hand, and the current total book value of all items listed
in the “items being depreciated” section of the asset register.
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APPENDIX 3 - USEFUL REFERENCES
“Guide for Community Treasurers” is a very useful 45 page guide that was produced by ‘Our Community’ and
Westpac, we recommend you download a copy from www.ourcommunity.com.au under the heading Community
Resources
“Understanding Finances: A Guide for Community Group Board Members” can also be downloaded from this
site
“A Guide for the Club Treasurer” a guide for the treasurer produced by the West Australian Department of Sport
and Recreation, visit clubsonline.dsr.wa.gov.au/a-guide-for-the-club-treasurer
Connecting Up Australia This Organisation works to strengthen the nonprofit and community sector by providing a
variety of information, products, resources and programs, visit www.connectingup.org/
AUSTRALIAN TAX OFFICE PUBLICATIONS. Visit www.ato.gov.au/nonprofit
•
“Induction Package for Non Profit Administrators” it provides an overview an overview of non-profit tax
issues and provides links to non-profit information on our website
•
“Tax Basics for Non-Profit Organisations ( NAT 7966)” it provides an overview of Commonwealth,
State and territory tax issues relating to non-profit organisations
•
“Non-profit Organisations and Fund Raising (NAT 13095)” provides information on state, territory and
local government requirements in relation to fund raising
•
“Volunteers and Tax (NAT 4612)” contains information concerning the tax treatment of commonly
occurring transactions between non-profit organisations and volunteers
Australian Charities and Not for Profit Commission
Provides information on organisations that have, or wish to have, charitable and/or deductible gift recipient status.
Visit www.acnc.gov.au/ACNC/Register_my_charity/ACNC/Reg/Reg_charity.aspx.
Philanthropy Australia (Trustee Handbook)
The handbook provides an oversight of issues that are relevant to trustees, particularly those of charitable trusts.
Go to the following website for a useful handbook designed to assist trustees with prudent investment. Search for
Trustee Handbook at: www.philanthropy.org.au/
General advice on running associations in you state can be found via Google search “running
associations”