internal controlsI have written about the importance of internal controls in the past and you only need to refer to my Facebook page for examples of fraud being committed by members of the committee of management, treasurers, staff and volunteers to highlight the need to ensure they are effective.

With the start of the financial year it is a good time to revisit this issue.  If you are a treasurer here are some key tips that should assist you.

  • Ensure reconciliations are prepared on a regular basis.  Furthermore, make sure you also check the reconciliation against a trial balance from the accounting system.
  • Review the financial reports and in particular examine any significant variations against budget.
  • On regular basis review a transaction listing from the accounting system and check for any transactions that don’t appear right.
  • Check that transactions are allocated in line with the Chart of Accounts.  Also, look for transactions that may be incorrectly allocated to a wrong account and ascertain why this has occurred.
  • Always make sure that source documentation such as invoices, accounts, contracts and funding agreements are properly maintained, approved and authorised.
  • Review delegations and spending limits are that they are being complied with.
  • Make sure to check petty cash transactions and that it is being used properly.  

These are just some of the financial internal controls that as a treasurer you should review.  In addition, the committee of management should also be engaged in this process as policies and procedures should be reviewed and updated if needed.

Remember that the Admin Bandit system can simplify many things for you and make your accounts “transparent” so the onus is not always on you.