Suggested Financial Procedures
It is strongly recommended that organization establish a financial account upon forming.
Establishing an Off-Campus Account
Should your organization choose to establish an account with an entity off-campus, it is required that the organization advisor is added as an account manager, in addition to the treasurer.
Dues + Membership List
If dues are assessed, a list of paid members (including payment date) should be kept. Encourage members to pay for dues with a check in order to help establish a paper trail.
If members pay by cash, write a receipt for every transaction.
Receipts + Expenditures
Receipt books should be used to record appropriate transactions. Organization officers should establish a receipt policy in writing. Receipts should be pre-numbered with a copy remaining in the receipt book as a permanent record. An expenditure policy should also be established describing approval procedures for organization expenses.
Receipt + Expenditure Records
Detailed records of transactions involving receiving or spending of organization’s funds should be kept. These should contain information showing the source or purpose as well as dates, receipts and amounts. All funds received should be deposited in the organization’s checking account and all expenses should be paid by check. This allows checking account records to serve as a double-check on other receipt/expense records.
Cancelled checks and bank statements should be retained at least five years.
Revenue-generating events should be reconciled; that is, reports in your ledger should be checked against monthly financial statements provided through your bank account. Significant shortages or overages should be investigated by organization officers. BluSync offers file storage to assist you with records management.
Treasurer Reports to Members
Written reports of the organization’s financial affairs should be made by the treasurer at least quarterly (perhaps at each meeting). These reports should summarize the transactions which have occurred since the previous report.
Audit of Records
Each organization should elect an audit committee from the membership to review organizational records and procedures. At least annually, the committee should review and sample all records for accuracy and completeness. They should examine bank statements and cancelled checks, review expenses paid for appropriateness, and determine the adequacy of organization procedures to control expenses and revenues. A report of the committee’s findings should be made to the membership. Changes in procedures should be recommended when appropriate.