b) Cash Management Strategies

Clubs must have cash management strategies which protect both its cash and the club volunteers responsible.  Many clubs over their history have stories of having cash – often large amounts of cash stolen.  Don’t let your club be another victim.

The only way to protect the club’s funds and the people who handle the club’s cash is to have very strong cash management procedures which protect both the cash and the individuals handling it. Key features of strong cash management processes are:

Reconciliations

  • Bank statements should be received by the secretary, reviewed and then passed to the treasurer for reconciliation
  • Clubs should develop a budget and manage their operations within their budgets
  • Complementing the club budget should be a cash flow statement which projects when clubs are going to receive their revenues and when their expenses are due and payable

Receipts

  • It is important to minimise the amount of cash not physically located in the clubs bank account.
  • All funds received by the club must be receipted
  • As much as possible, have funds directed deposited into the clubs bank account, especially for large amounts like sponsorship
  • Ideally cash registers are to be used and balanced in the bar and canteen
  • For events, use online ticketing services for patrons to purchase tickets and make payments directly into the clubs bank account
  • Ensure that funds from separate activities are counted separately prior to being pooled with other club funds (e.g. match day entrance fees, raffles, bar takings and canteen takings should all be counted separately prior to being pooled together to calculate a total match day takings).
  • During activities which generate large amounts of cash, cash should be continually cleared from the cash registers and those taking in cash and it should be stored in a secure location such as a safe
  • Cash should always be counted with two people present and records kept of amounts collected.  At this time, banking slips should also be completed and amounts to be banked should be recorded.
  • Cash should be banked (after being counted and recorded) immediately and only very small amounts of petty cash should ever be left unattended (if ever) in the club rooms.
  • All receipts should be recorded accurately in the accounting system (regardless of whether this is a manual cash book, spread sheet or accounting system)

Payments

  • All payments must be supported by evidence to prove the authenticity of the payment such as a Tax Invoice or a payment slip
  • Only payments which have been approved by the club committee should be paid.  The club committee may delegate the payment approval process to a number of trusted individuals
  • All payments must be approved by a minimum of two people
  • Where possible, payments should be made using cheques or EFT payment directly from the club bank account (cheques should require two signatures and EFT payments require two people to authorise the payment)
  • All payments should be recorded accurately in the accounting system (regardless of whether this is a manual cash book, spread sheet or accounting system)

Further Risk Management Information

a) Risk Identification and Management
b) Cash Management Strategies
c) Asset Protection
d) Participation Health and Safety
e) Club Governance Risks

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