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Treasurer's Records and Review


Guest Josie Sharp

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Posted

I am the new President of an organization. Our bylaws state that the treasurer's records should be reviewed (not a formal audit) before the annual meeting in April. For the past two years, this was not done. So upon taking office in May, I asked that the treasurer's records be reviewed before my board really started working. I had a feeling the records might be in some "disarray" because over the past two years checks were being held and not cashed for 3-4 months.

As suspected, the treasurer's records are a mess. We do not believe any funds have been misappropriated or stolen and the balance in the register seems to be in accord with what is in the bank, give or take maybe $50. The accounting practices utilized by this treasurer were sloppy and unclear. Therefore, the reviewing committee does not feel that it can state to the membership that the records are in order and should be approved. However, this former treasurer is a valued member of the organization and we do not want to alienate this person in any way. The reviewing committee has pointed out the problems in the accounting system and has suggested changes to the new treasurer so that going forward the records are in better order. What should we report to the membership? We want to be honest and yet not alienate this long-time member of the organization, who by the way, won't be handling money for the organization any longer.

Your thoughts?

Posted

Your question is more about how to not hurt someone's feelings rather than about proper procedure. However, you DO NOT want to mislead the Membership (that could get those people who knew the truth and said nothing into trouble). Why not just state the facts (without placing blame) that the books weren't in good shape but there is nothing that leads you to believe that anything untoward went on and procedures have been proposed to tighten things up. If you all answer people's questions honestly and don't appear to be trying to cover anything up you might be surprised how well people will deal with it as long as they know that the money is secure and the Treasurer isn't somewhere in the Caribbean using the organization's money to waste away in Margarita-ville.

Posted

Exactly! We want to do this correctly and honestly, and at the same time not cause a huge rift between the new board and the old board, and especially this particular person. We don't want a cover up of any sort. We will discuss this at our next board meeting and come up with an honest disclosure. Thanks for your thoughts!

  • 3 years later...

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