What does your Board Treasurer do?
Unless your organization is very small, with no or very few staff, it’s unlikely that your board Treasurer is directly managing the finances of your organization. In staffed organizations, day to day financial management is done by a chief financial officer, a business manager, the Executive Director, a bookkeeper, or some combination of all of those positions.
So what does a Treasurer do?
It’s pretty common practice for the Treasurer to chair the Finance Committee and present a report of the financial condition at the Board meeting, usually taking the statements that have already been prepared by the staff financial officer and reporting them to the Board. Treasurers tend to focus on the issues that matter to them most. For some, that’s cash position or year-to-date to budget. For others, it’s how the organization is doing compared to last year. Sometimes corrective action is recommended.
While monitoring the financial condition is a basic role, I have higher aspirations for the ideal Board Treasurer. I see this individual as the facilitator of a financial brain trust within the Board (through the Finance Committee) that can help the organization think very strategically about the relationship of mission to money, both short and long term.
So here are a few items I’d like to add to the Treasurer’s job description:
- facilitate strategic thinking within the Board about short- and long-term financial vitality
- develop financial literacy among all the directors
- establish a dashboard or set of key performance indicators that tells the Board at a glance how the organization is doing on critical measures (after facilitating a discussion with the Board on what those critical measures are)
- regularly report to the Board on that dashboard
Along with these basic duties:
- ensure prudent asset management in accordance with financial objectives and Board-approved policy
- ensure that staff implement strong internal controls
- oversee development of and monitor compliance with Board-approved financial policies
- chair the Finance Committee and ensure that it achieves annual goals and objectives
- ensure that staff properly receive and give receipts for all moneys due and payable and deposit all moneys in the name of the organization in authorized financial institutions
What’s in your Treasurer’s job description? I’d love to have you share.