Should Club Treasurers do a Monthly Audit, an Annual Audit, or Both?

Following is a transcript from this episode of MoneyMinder’s Two Minute Treasurer’s Tip Podcast.

Welcome to the Two-Minute Treasurer’s Tip Podcast. I’m Cyndi Meuchel, and today we’re talking about monthly versus annual audits. Do club treasurers need to do both?

You’re likely familiar with the idea of holding an annual audit – that’s where you have a committee review your books to check for accuracy, right? It’s annual, meaning it’s done once a year. But you may not be as familiar with the idea of monthly audits where just like the name says, it’s done monthly. And you’re probably thinking to yourself at this moment, “Why would I do that? It sounds like a lot of work.”

Well, monthly audits will allow you kind of keep an eye on things on a more regular basis. They can help you catch errors earlier and they can also help make the annual audit that much easier.

So, how do you do this? Gosh, I’m glad you asked.

We recommend that the Treasurer brings the Treasurer’s Report and the bank statement to your monthly meeting and calls on a different person each month to perform the review. I won’t go into detail right now about how you do that, but our free guide, The Treasurer’s Compass, includes instructions (page 35) and a mini-audit form (page 57).

It takes about 10 minutes and it allows everyone to take responsibility for the group’s finances and creates terrific transparency. After all, the finances are not just the Treasurer’s responsibility, you know that, right? Oversight of the books is the entire board’s responsibility.

That’s it for today! Thanks for listening! If you have a question you’d like answered, please email me at [email protected].

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