[16182] in APO-L
Re: Gotta Problem
daemon@ATHENA.MIT.EDU (Cheshire)
Wed Feb 5 20:25:11 1997
Date: Wed, 5 Feb 1997 20:23:15 -0500
Reply-To: Cheshire <derbob@RPI.EDU>
From: Cheshire <derbob@RPI.EDU>
To: Multiple recipients of list APO-L <APO-L@VM.CC.PURDUE.EDU>
As a past Chapter Treasurer, I have had some experience in this area. There
are several ways to keep track of funds and to prevent them from "walking
away
on their own". I'll list a few here, but keep in mind that my suggestions
are based on my experiences in my own Chapter, and these suggestions may not
necessarily apply to just any Chapter.
1) Authority to Withdraw Funds - At least two officers of the Chapter should
be needed to sign checks. The Treasurer and the President should be two
of the signers. In Epsilon Zeta, for instance, the signers are the
President, the Service Vice President, and the Treasurer. These officers
are given signing power by our Chapter bylaws, and there are no
exceptions
made for close friends, couples, etc. A certain level of trust is
assumed
and granted upon election.
2) Access to Checks - The checks should be stored away, so as to prevent any
theft or fraud. If everyone has access to the checks, one or more may
"disappear", and attempts may be made to forge checks. By restricting
access to the checks, this problem becomes less common. At my Chapter,
all checks are locked up, and there are only two keys to them. One is in
the possession of the Treasurer, and the other is in the possession of an
advisor. The advisor's key is used only if a checks needs to be written
immediately, and the Treasurer is nowhere to be found.
3) Fiduciary Responsibility - When officers are given signing power to the
Chapter's account(s), they are given fiduciary responsibility, which
means
they are entrusted with the Chapter's finances. It is their
responsibility to know where the Chapter's funds are, where they are
going, and that they are being spent appropriately. I regularly review
my
Chapter's ledgers, to make sure that everything is accounted for. After
all, I am one of the people responsible for the funds, so I should know
what's going on with them.
4) Reports to the Chapter - If the Treasurer has to make regular reports to
the Chapter, the Treasurer is forced to keep their ledgers in order and
up
to date. It also lets the Chapter in on what is going on with the
finances of the Chapter.
5) Audits - It's a good idea to get your Chapter's ledgers audited
regularly,
such as once a year. There is usually someone in your school who can
help
you do this. An outside audit will spot discrepancies and may even make
suggestions for improvements in your bookkeeping.
6) Receipts - Receipts should be kept for all transactions, so if questions
are raised at a later date, the transactions can be justified.
That's about all I can think of off the top of my head, except for this one
important fact to remember: you can never fully prevent the loss or theft of
funds from your Chapter, as someone who really wants to get to them will find
a way. However, by restricting access and regularly reviewing records you
can
deter such actions, and by creating paper trails and eliminating
possibilities
you can make it easier to track down such problems.
Bernard Derboven,
President, 1996-1997,
Treasurer, 1995-1996,
Epsilon Zeta Chapter
