ALIA office-bearer's guide

Group treasurer's guidelines

Purpose of the treasurer's guidelines

The following guidelines provide group treasurers' with the information they need to fulfil their responsibility for the financial administration of the group. Information included in these guidelines covers:

• Treasurers' responsibilities
• Overview group finances
• Financial statements
• Treasurer's kit (includes forms)
• Invoicing
• Receiving income
• Banking income
• Ordering and purchasing
• Payment and reimbursement of expenditure
• Petty cash

Treasurers' responsibilities

The group treasurer takes responsibility for the group's financial administration, and is the point of contact for ALIA National Office on these matters. The group treasurer's responsibilities include the following:

• In conjunction with the convenor, preparing the group plan and budget submissions to continue the group, and ensuring that deadlines are adhered to.
• Banking all income received into the ALIA bank account for groups, in a timely manner.
• Forwarding all creditors' invoices to ALIA National Office for payment, in a timely manner.
• Forwarding all debtor's details to ALIA National Office for recording, in a timely manner.
• Ensuring that all receipts and invoices clearly state the GST component - this is needed for the quarterly Business Activity Statement, which ALIA National Office submits quarterly to the Australian Taxation Office.
• Approving group expenditure, as one of the two required office-bearer signatories, and ensuring that funds are available.
• Maintaining records of expenditure paid by petty cash and forwarding these - together with the receipts - to ALIA National Office for reimbursement: this will ensure that the group's petty cash float is topped up.
• Monitoring expenditure and ensuring that group activity is within budget - this includes checking the financial statements for the group, provided each month by ALIA National Office.
• Communicating with ALIA National Office on financial administrative matters.
• Ensuring probity in all group financial administration, and alert to any conflicts of interest that may occur.
• Ensuring adherence by the group to ALIA's personal information-handling policy.
• If stepping down as group treasurer, ensuring that all paperwork is up-to-date and that the books are signed off, and undertaking a full hand-over with the succeeding convenor.
• Notifying ALIA National Office of any changes to contact details.

The Association aims to manage its finances effectively, maximising the income from interests while also honouring business transactions and reimbursement of outlays. It is therefore important that treasurers process invoices and income in a timely manner.

ALIA National Office is happy to provide any guidance required. Please contact the ALIA finance officer (please remove '.nospam' from address) with any queries regarding the financial administration and to request supplies of forms, or the membership (please remove '.nospam' from address), with queries regarding group plans and budgets.

Overview - group finances

Each group has the discretion over the funds allocated to it, but to ensure the necessary financial accountability by the Association, all funds are held in a centralised account administered by ALIA National Office.

No group has its own bank account - there is only the one for all groups administered by ALIA National Office.

When a new group has been approved, ALIA National Office provides the treasurer with an official Commonwealth Bank deposit book. Treasurers need to bank all income into this deposit account. Credit-card payments are an exception - they are to be forwarded to ALIA National Office for banking.

Groups cannot themselves draw money to pay bills. ALIA National Office is responsible for making all payments on behalf of groups. Payments are made by cheque. National Office will draw the funds from the relevant group's allocated budget. It will be shown as a debit on the monthly financial statement provided to the group.

It is possible for groups to pay for minor expenditure with petty cash. Treasurers need to request a float from ALIA National Office. The float must not be topped up by cash income received, but only through request for reimbursement of expenditure from ALIA National Office. Groups cannot establish a bank account for petty cash.

The paper trail is of vital importance: all income and expenditure needs to be documented for audit purposes. Payments and reimbursements will not be made without the correct documentation and group ID provided to ALIA National Office. All requests for payment must be authorised and signed by two of the three office-bearers.

After the close of each month, ALIA National Office sends a financial statement to treasurers to indicate the movement in the account and the balance of funds.

Treasurers should strive to process invoices and income in a timely manner to ensure the effective management of ALIA finances.

It is important to ensure that ALIA abides by accounting and government requirements:

• If ALIA National Office were to pay without adequate documentation, the auditors would address it as improper, with risk of the issue being referred to the Australian Securities and Investments Commission.
• Every quarter, ALIA National Office provides the Association's Business Activity Statement to the Australian Taxation Office. The statement covers all ALIA activities, with indication of GST already paid. Hence the requirement that group's invoices and receipts clearly state the GST paid.
• In accordance with tax regulations, ALIA National Office deducts 48.5 per cent of the invoiced amount in withholding tax for suppliers who do not quote an ABN (Australian Business Number) on their invoice. ALIA National Office forwards this withholding tax to the Australian Taxation Office.

Financial statements

Once a month, ALIA National Office provides the group treasurers with a financial statement so that they can check the details of income and expenditure. The amounts are less the GST, thereby matching the Association's ABS statement [see above]. At the end of each quarter treasurers will also receive a Job Activity (detail) statement.

If you find any discrepancy, or require any clarification, of either of these statements please contact finance@alia.org.au.nospam. (please remove '.nospam' from address)

Treasurer's kit

The treasurer's kit includes the following stationery:

• Tax invoice/receipt book
• Bank deposit book
• Cheque deposits - supplementary page form
• Deposit advice form
• EFT payment details form
• Request for payment form
• Statement by a supplier form
• Freepost envelopes
• Letterhead
• Envelopes
• With compliments slip

For any enquiries, contact
Finance officer
ALIA National Office
PO Box 6335
Kingston ACT 2604
freecall 1800 020 071
fx 02 6282 2249
E-mail finance@alia.org.au.nospam. (please remove '.nospam' from address)

Receiving income

You have been supplied with a 'tax invoice/receipt book' in your treasurers' kit. When receiving any income (cash, cheque, credit-card or bank drafts) you must issue a tax receipt and provide this to the payer. The receipt must detail the recipient of the goods/service, the goods/service rendered, and the price, including GST.

Each tax receipt/invoice consist of an original and two copies

• the original (white copy) goes to the payer;
• the yellow copy should be forwarded to National Office - one completed 'payment advice' form is required each time you make a deposit at the bank, regardless of the number of invoices covered. Once the money has been banked, forward the completed 'payment advice' form and attached receipt/s, in a freepost envelope, to the finance officer.
• the blue copy should be retained in the book and kept by the group for their own records.

Payment by credit card is acceptable only for the exact amount invoiced - no additional cash payout is allowed. All credit card payments must be processed by National Office, please forward these on as soon as possible, as some cards are presented close to their expiry date. A contact name and phone number should also be obtained in case the payment is declined - you would be surprised how often the incorrect card number or expiry date is quoted.

Payment by EFT is also possible, you have been supplied with a pad of 'EFT payment details' - one of these should be attached to any unpaid invoice at the time of issue and this invoice number should be used as a reference when making payment. With an ever-increasing number of businesses opting to use this method, it is very important that you make sure the payee notifies National Office when this payment is made.

Gold coin donations: some groups cover their meeting costs by a gold coin donation. There is no requirement to receipt gold coin donations, unless a receipt is requested. You will only need to bank gold coin donations if they accumulate and exceed $300.00. Gold coin donations cannot be used to top up petty cash. Please refer to the ALIA group budget guidelines for further details.

Registration of CPD events

National Office can assist a group organising a workshop/forum/seminar by taking registrations on the group's behalf. Further information is available in the ALIA group budget guidelines, or please contact, membership (please remove '.nospam' from address), member services and groups liaison, ph 02 6215 8229.

Invoicing

Group invoicing: there will be occasions when you will issue an invoice for an event, acquiring sponsorships, advertising in newsletters and newsletter subscriptions, etc. Using an invoice from your 'tax invoice/receipt' book, ensure that the word receipt has a line drawn through it, so as to avoid confusion. Attach a copy of 'EFT payment details' to the invoice, in case they opt to pay this way, as it provides all the details required.

National Office invoicing: on occasion a more formal invoice is required, in such cases ALIA National Office undertakes the invoicing, and relies on you to provide the necessary information for the invoice. This includes:

• debtor's name and mailing address / fax number (if preferred)
• contact name and phone number (for use if follow-up is needed)
• debtor's ABN, if applicable; and
• the amount to be charged (inclusive of GST)

ALIA National Office then forwards this invoice to the supplier, and follows up on collecting payment where required. Once an invoice has been created your statement will show the amount as a 'credit' whether or not it has been paid.

Banking income

Treasurers must bank all income received by cash or cheque into the ALIA group bank account - a deposit book has been provided with your group number quoted as the 'agent'. This should ensure that funds deposited go to the right account. Sometimes the system fails so please notify National Office of all deposits.

At the time of your deposit to the bank, treasures should fill in 'deposit advice' form detailing income in the appropriate column/s, attach the yellow copy/ies of 'tax invoice/receipt' together with a copy of the bank deposit slip (where possible) and forward these documents to the finance officer, ALIA National Office, using a freepost envelope.

Payments received by credit-cards must receipted and the yellow copy sent to ALIA National Office for banking, together with a completed 'deposit advice' form in the same manner as described in the paragraph above. Please ensure that credit-card details are accurate and complete to avoid rejection by the bank. On receipt, ALIA National Office processes and banks credit-card payments into the collective group account. ALIA National Office credits all group income to the group's budget.

Please note that groups are not allowed to set up their own separate bank accounts. Only the Board of Directors has the powers to establish an ALIA bank account.

Ordering and purchasing

Groups can order and purchase goods and services, including the booking of venues and catering. ALIA National Office will organise and book internet airfares and accommodation for guest speakers at group CPD events, provided funds are available in the group budget. If your group needs to organise travel and accommodation for speakers please contact membership, member services and groups liaison, ph 02 6215 8229.

When ordering and purchasing, groups must ensure that they receive an invoice or receipt, which can be sent to ALIA National Office for payment or reimbursement.

Payment and reimbursement of expenditure

The treasurer's kit provided includes a request for payment form. All payments by groups need to go through ALIA National Office. Treasurers must send a completed 'request for payment' form signed by the treasurer and one other of the two authorised office-bearers. Payments and reimbursements will only take place if documented by an official invoice or receipt. Please note that the invoices/receipts must:

• show the GST component to be paid;
• show the supplier's Australian Business Number (ABN);
• indicate the type of expense; and
• be clearly marked with the group's ID.

The original invoices should be attached to the request for payment form and mailed to the finance officer, ALIA National Office, using the supplied freepost envelopes. In cases of urgency, the treasurer may initially fax through the documentation, ensuring that both signatures are clearly shown. The original copies are still required and should be mailed at your earliest convenience.

As required by the Australian Taxation Office, if a supplier does not have an Australian Business Number (ABN) they will need to complete a 'statement by a supplier' form. You have been provided with a couple of these in your kit - for further copies contact the finance officer, ALIA National Office.

Petty cash

If groups want a petty cash float to pay for minor expenditure (under $50.00), they can establish one by sending a 'request for payment' to the finance officer, ALIA National Office, specifying the amount required for the float and signed by the treasurer and one of the other two office-bearers'. A maximum of $300.00 may be requested as an initial petty cash float.

ALIA National Office sends petty cash by way of cheque or where requested, money order.

A group cannot establish a bank account for petty cash - a cash box is an acceptable alternative.

Treasurers can keep the petty cash float topped up by claiming reimbursement for petty cash expenditure in the same way as any 'request for payment'. The same principles apply to use of petty cash as for other expenditure. Receipts need to be obtained [showing GST component] and forwarded to ALIA National Office when claiming reimbursement or 'topping-up' the petty cash float. As the average cost of a cheque is around $5.00 and the cost of a money order is $2.50, groups should avoid reimbursement for small amounts of money.

All income received by groups must be banked, therefore groups cannot top up their float by cash income received.

If you have any questions, or feedback, on these guidelines please contact membership, (please remove '.nospam' from address), member services and groups liaison, ph 02 6215 8229.