Good Financial Practices
Develop a Budget
- Budgeting is an important planning tool and an integral part of program planning.
- Prepare a budget for the organization with expected income and expenses for the year.
- Income revenue can include membership dues, fundraising events such as ticket sales or donations and any funding grants.
- Expenses could include advertising, printing and duplicating, equipment etc. Examples of expenses for events can include speaker/entertainment fees, food, space rental etc.
Keep a Financial Journal
- Chartered student organization are required to maintain accurate and complete financial records of all receipts and expenditures. These records must available to any member of the organization. A journal is a useful way for the treasurer to keep track of detailed expenses and deposits, earnings, and interest.
- All expenses paid by an organization should be substantiated by an original receipt from the vendor. If this is not possible, the individual requesting reimbursement should be required to furnish a signed statement that explains the purpose of the expense. Such an expense should also be approved by the officer/committee person responsible for the activity/event for which the expense was incurred.
- The treasurer should reconcile the books with the bank and any investment account(s) and, at least monthly, prepare a financial statement for the organization’s board/officers.
- The financial statements and records of the organization should be reviewed/audited annually by an independent group/individual. This can be a separate committee of the incoming treasurer as long as it is done before the individual(s) have authorization to expend funds.
Use a bank account responsibly
- If the organization has an outside bank account, require at least 2 signers to be on the account(s) to the account is monitored by more than one person.
- Don’t use ATM/Debit card services. If an organization chooses to get a debit card, do not use it for cash withdrawals and ensure that only the financial officer has access to the card.
- Talk with the organizations banking/financial representative to work out the details of the bank account.
- It is advisable that all banking transactions are handled through checks and deposit slips so there is a written record of all transactions so as to minimize any risk of misappropriation or misuse of student organization funds.
- In the event that withdrawing cash from the account is necessary, fill out a withdrawal ticket for the account, document on the copy of the withdrawal ticket what the cash is to be used for and attach receipts paid for with cash to clearly show what the cash was used for.