New treasurer mid year how do you do audit?

kiwigirl

Hi all

I'm with an organisation and the last treasurer walked off committee after throwing his teddy out of the pram, so they've asked me to step in.

I don't mind the treasurer part but am wondering how do you audit the books when it comes to AGM etc when you've had 2 treasurer's during the year?

Any one come across this before?

KG

LittleVoice

The charity could have had 20 treasurers - it's the books/records which are audited. You just need to have the records for the auditor to see and as long as they are in order there is no problem. Just go through the books yourself now so that you are comfortable with what has been done so far.

Savvy_Sue

Agree with LittleVoice. Also, if you're NOT happy with the state the books are in, and can't find all receipts etc or explain all payments, then I'd say all YOU have to do is write a note to that effect to the auditor and let them pass judgment. If you think there's been any improper use of funds, then it's ALL the trustees who are responsible for letting it happen, certainly not JUST you, especially as you've only just taken over! But all you can do at this stage is point it out to them.

Of course if you think there's been deliberate fraud then the trustees need to do more than that. Post again if you do!

kiwigirl

Thanks to you both for responding.

I return to the committee this week after being bullied off a few years ago - by the ones who resigned a few weeks ago. So basically in my view, I wasn't involved with the previous on going's of the committee so won't be included in that.

I will try and find some receipts which have been paid for, a bit puzzled why 2 of the resigning officers have been reimbursed for things... but that's not the only thing that I have been concerned about but one was with the previous year so I'm not going to get involved as the audit's gone through that already.

Thanks again

KG

fraoch

I don't know if this will help but I found that stapling receipts to pages of A4 in daily order helped me find things easily. I then put them in plastic sheets in month order, for any missing receipts I put a note of explanation, but better not to have any missing at all.

Any concerns should be notified in writing to the committee just to safeguard yourself.

eryn_kathleen

Our new treasurer is having this problem at the moment. Unfortunately, our auditors are being less than helpful, so I would suggest contacting your auditors as early as possible to warn them that you might need a bit of extra help because you're new and because the previous person left so quickly.

You should also tell your committee/board that your auditing bill is likely to increase due to these problems.

As others have said, it will all be fine! It's just that everyone should be aware that you're operating under less than ideal circumstances, and that things might take a little longer and costs a little more.

Good luck!

longforgotten

Do you actually have a high enough turnover to have an 'audit' ?

Lots of people think that sending in their accounts to an accountant mean they are audited but that is not always the case.

Savvy_Sue

That's a good point. Might be worth contacting the Independent Examiners for some advice, they also issue a useful monthly (roughly) newsletter.

BTW have you found the stickies on the Small Biz & Charity Organisers Board? There might be some useful stuff over there for you.

kiwigirl

Hi all

Thanks for all your responses.

Frauch - I put all the receipts together and keep them in month order (and keep the previous treasurers item in a box!).

A colleague is the treasurer for another organisation so I was going to ask her if she'd mind checking our books when we needed to audit and buy her a bottle or two to say thanks. We certainly don't get enough through the books to warrant anything of an accountant - don't get me worried!

Savvy_Sue I very rarely frequent this board so I hadn't noticed the stickies - thanks for mentioning them, I will have a look now.

We had our first meeting since I've been treasurer the other day, and they were happy to see me - I personally think we'll have a better committee now as the others were dreadful but I didn't have any support when I tried to stand up to the bullies. I can't say I agree with everything which was said but at least they see that I'm doing my best and I've got my own way with a couple of things but with committee's agreement.

I've spoken with 1 of the new ones which I hadn't really done much with before and she's been made aware of the sitation well before I went back on committee and the bully who made life difficult for me is now my "best friend" which I am more than wary of the woman and her best friend.

I will check the previous treasurer's account and receipts and ask for the invoice for his "travelling expenses" now, rather than leaving it until audit time.

Savvy_Sue

kiwigirl wrote: »

I will check the previous treasurer's account and receipts and ask for the invoice for his "travelling expenses" now, rather than leaving it until audit time.

Good plan: it's entirely right and proper that the committee should be reimbursed for any reasonable expenses incurred in carrying out their duties, but also right and proper that there is a proper record kept so that it can be demonstrated that the expenses were justifiably incurred and reasonably reimbursed.

DH is on the committee for our voluntary services council, and they will always reimburse him for any mileage for attending meetings, or for taking a taxi if I need the car. However he has to submit a proper expenses form, just the same as their employees do, listing his journeys and their purpose. We both work for charities (different ones), and neither set of trustees habitually claim travel expenses, but if they cared to, we'd pay them willingly.

So be prepared for your former committee members to justify their claim: it would be wrong to exclude anyone from serving on your committee because they couldn't afford to be out of pocket attending meetings etc. The point is, they should be able to justify it rather than just plucking a figure from the air ...

Errata

I agree with everything in Sue's post, having been a very, very reluctant treasurer for several community groups. Put things on a business like footing and that includes out of pocket expenses - no proof, no pay ! Some people are reluctant to claim expenses but encourage them to and donate the cash back to the group, this way you know exactly what expenses it takes to keep the thing going which is useful when it comes to working up a new funding bid.
One thing I learned the hard way is to have FOUR co-signatories for a bank account, with any two to sign a cheque. Then you can manage having one off sick and one on holiday at cheque signing time. HTH