treasurer resigns

If your treasurer resigns there are some practical steps you should undertake to ensure a smooth transition.

Ideally, when the treasurer resigns there is plenty of notice so the handover to the new treasurer goes smoothly but you also need to be prepared if the treasurer leaves suddenly and there is no opportunity for a handover.

The following points are intended to highlight the main issues to give priority to if the treasurer does leave suddenly.

  • Contact the bank and update details and signatories on all bank accounts associated with the organisation.
  • If the treasurer had access to a credit card then ensure it is cancelled.
  • If your organisation had any online facilities then make sure passwords are changed and the authorised users are updated.
  • If your organisation has any loans, leases or any other financial contracts then locate copies of the documentation.
  • Review the latest set of financial reports that have been prepared and match them against any account reconciliations that have been completed.  If no reconciliations have been completed then try to complete them as soon as possible.  Completing these reconciliations is an important step to ensure the financial reports and accounts are in order.
  • Review the bank reconciliation as this confirms the bank balance after allowing for any unpresented cheques or deposits.
  • From the completed reconciliations confirm the amounts for account receivables and accounts payable.
  • If you make any tax payments such as for GST, PAYG, Superannuation or even FBT make sure these have been reconciled so you can identify any outstanding payments.
  • If you receive grants make sure you can reconcile between how much has been spent and how much should be available.       

Undertaking these steps will help you gain an understanding of the financial position of the organisation and importantly the liquidity of the organisation.  Furthermore, if you are not able to complete some of these steps then get your auditor to help you.

What happens if your treasurer resigns suddenly? If you follow these tips you will cope quite well and there will be no need to panic.