treasurer resigns

If the treasurer was to resign suddenly from your committee of management, become ill or not be available for an extended period of time what would your committee of management do?

It is not unusual, especially with smaller organisations, that the treasurer is the only person with financial skills and an understanding of the requirements of the role of the treasurer.

As a member of the committee of management you have the legal responsibility to ensure the organisation remains solvent.

For example, in Victoria under the Associations Incorporation Act (2010) any board or committee member of an incorporated associations face penalties of up to $20,000 for allowing their organisation to trade while insolvent.

It is critical that you have a plan in place in the event the treasurer resigns or is not available for a period of time.  The following outlines some key points that your committee of management can implement to help you manage the stiuation:

  • Ensure all members of the committee of management receive financial training.
  • Identify at least one other person who is willing to be a deputy treasurer.
  • When recruiting committee of management members try to have more than one person who understands finances and accounting.
  • If your organisation has a Finance Sub Committee then try to ensure each member can act as the treasurer if needed.

There may be other issues that could be considered but the main point to emphasise is that your committee of management must have a plan in place in the event your treasurer does suddenly resign.

Part 2 discusses some practical steps that need to be undertaken when the treasurer resigns.