Managing the Association funds
The treasury function involves managing the organisation's finances to ensure its financial health and enable it to achieve its mission. This includes financial record keeping, budgeting, reporting, and overseeing income and expenses. The treasurer plays a vital role in safeguarding BVRA's financial stability and making sure it complies with relevant regulations.
In the Bella Vista Residents Association the Treasurer is the person who - organises and manages the bank accounts, ensures payments made to the Association are deposited to the correct account, paying the bills, keeping the books, drawing up the budgets, and keeping track of the outgoings and incomings so that the organisation knows how they are tracking in relation to the budget.
The Treasurer is also responsible for filing the annual accounts with the Registrar of Incorporated Societies as well as completing and filing the income tax returns with the Inland Revenue Department.
Treasury includes the management of money and financial risks for Bella Vista members. Its priority is to ensure the business has the money it needs to manage its day-to-day business obligations, while also helping develop its long term financial strategy and policies. The insurance policy is managed by the Treasurer to ensure that there is sufficient cover for unexpected events that could cost the Association.
In the Bella Vista Residents Association the Treasurer is the person who - organises and manages the bank accounts, ensures payments made to the Association are deposited to the correct account, paying the bills, keeping the books, drawing up the budgets, and keeping track of the outgoings and incomings so that the organisation knows how they are tracking in relation to the budget.
The Treasurer is also responsible for filing the annual accounts with the Registrar of Incorporated Societies as well as completing and filing the income tax returns with the Inland Revenue Department.
Treasury includes the management of money and financial risks for Bella Vista members. Its priority is to ensure the business has the money it needs to manage its day-to-day business obligations, while also helping develop its long term financial strategy and policies. The insurance policy is managed by the Treasurer to ensure that there is sufficient cover for unexpected events that could cost the Association.
Financial Processes
To provide governance over the Association's liquidity and strategise the use of funds, a number of processes have been put in place.
Chart of Accounts
The Chart of Accounts is a comprehensive list of all the accounts used to record financial transactions within our general ledger. It acts as a structured system for categorizing and tracking financial data, ensuring accurate bookkeeping, accounting, and reporting. Essentially, it's a foundational tool for managing BVRA's finances, providing a clear overview of where money comes from and where it goes.
Chart of Accounts
The Chart of Accounts is a comprehensive list of all the accounts used to record financial transactions within our general ledger. It acts as a structured system for categorizing and tracking financial data, ensuring accurate bookkeeping, accounting, and reporting. Essentially, it's a foundational tool for managing BVRA's finances, providing a clear overview of where money comes from and where it goes.
Banking
Our Bank accounts are held by ASB Bank and have been established with multiple signatories so that no payment can be authorised by any one person. Signatories must be elected officers who have been validated by the Bank.
Those organisations or individuals who regularly provide goods or services to the Association are maintained as payees in the ASB system. When invoices are received the Treasurer is able to select the billing organisation from the list of payees and allocate the payment to an account in the Chart of Accounts.
All receipts from members or anybody else paying money to the Association are automatically credited to the Society account at ASB. No cash is handled by the Treasurer - all transactions are electronic and are linked to our Xero accounting system.
Our Bank accounts are held by ASB Bank and have been established with multiple signatories so that no payment can be authorised by any one person. Signatories must be elected officers who have been validated by the Bank.
Those organisations or individuals who regularly provide goods or services to the Association are maintained as payees in the ASB system. When invoices are received the Treasurer is able to select the billing organisation from the list of payees and allocate the payment to an account in the Chart of Accounts.
All receipts from members or anybody else paying money to the Association are automatically credited to the Society account at ASB. No cash is handled by the Treasurer - all transactions are electronic and are linked to our Xero accounting system.
Accounting System
The Xero system has been implemented to provide a fully functional system that enables all transactions to be accounted within our Chart of Accounts. Since it is integrated with our bank accounts there is no need to enter transactions manually - when payments are initiated by the Treasurer they are assigned to existing accounts that follow double entry accounting standards.
Key Xero Accounting Reports:
The Xero system has been implemented to provide a fully functional system that enables all transactions to be accounted within our Chart of Accounts. Since it is integrated with our bank accounts there is no need to enter transactions manually - when payments are initiated by the Treasurer they are assigned to existing accounts that follow double entry accounting standards.
Key Xero Accounting Reports:
- Balance Sheet:
Provides a snapshot of a company's assets, liabilities, and equity at a specific point in time. - Profit and Loss (Income Statement):
Shows a company's financial performance over a period of time, detailing revenues, expenses, and net income or loss. - Cash Flow Statement:
Tracks the movement of cash both into and out of a business over a period, categorized into operating, investing, and financing activities. - Aged Receivables:
Shows outstanding invoices owed by members, helping to manage and collect payments. - Aged Payables:
Shows outstanding bills owed to suppliers, helping to manage and pay obligations.
New Projects Process
Objective
This process ensures that Association funds are spent with due diligence after considering expenditure on proposed new projects that the Committee considers will enhance the Bella Vista experience. A new project is one that arises from an idea that has been put to the committee, or by a member of the committee, that requires expenditure that is outside the bounds of normal operation or has not been included in the operational budget. These projects are funded from the Contingency account.
The process flow depicts three “swim lanes”:
The Decision Gate exists in the Committee lane and provides the opportunity to proceed, rework or kill the idea.
Goals
New projects need to be considered by the committee as a whole and decided on the following criteria:
Process Definition
There are three work streams:
The decision gate is the opportunity to consider all aspects of the Brief and discuss options. Each committee member is required to carry out a review, preferably prior to the Committee meeting, and present that at the relevant meeting and agree on the way ahead. There are two outcomes:
Objective
This process ensures that Association funds are spent with due diligence after considering expenditure on proposed new projects that the Committee considers will enhance the Bella Vista experience. A new project is one that arises from an idea that has been put to the committee, or by a member of the committee, that requires expenditure that is outside the bounds of normal operation or has not been included in the operational budget. These projects are funded from the Contingency account.
The process flow depicts three “swim lanes”:
- Idea Sponsor activities
- Committee activities
- Treasurer activities
The Decision Gate exists in the Committee lane and provides the opportunity to proceed, rework or kill the idea.
Goals
New projects need to be considered by the committee as a whole and decided on the following criteria:
- Is there a requirement that the residents would benefit from?
- Does the design of the solution present the most economical outcome?
- Have all costs been included?
- Does it comply with the Bella Vista Design Guidelines?
- Has the scope been clearly defined?
- Is the statement of work able to be delivered?
- Can it be funded?
Process Definition
There are three work streams:
- Develop the idea - performed by the idea sponsor and described in a Project Brief that includes:
- Objective
- Requirements
- Proposed Solution
- Design specification
- Budget and Funding
- Scope of Work
- Committee evaluation - the Decision Gate
- Execution - Sponsor creates the Project Plan, Treasurer creates Purchase Orders, Statement of Work is created & named resources engaged
The decision gate is the opportunity to consider all aspects of the Brief and discuss options. Each committee member is required to carry out a review, preferably prior to the Committee meeting, and present that at the relevant meeting and agree on the way ahead. There are two outcomes:
- No - the idea needs a rework or is killed because it can’t be justified or the committee is not convinced that it is in the best interests of the members.
- Yes - It is agreed to proceed and the new project is created and an account established in Xero for the project. The Project may be modified at this stage and those will be embodied in the Project Plan.
Annual Accounts
To provide an additional layer of accountability the Treasurer submits the Xero accounts to Jodi Wyatt, one of our members who is a Chartered Accountant. Jodi reviews the accounts to ensure they comply with the statutory accounting standards and then prepares the Annual Financial Statements.
To provide an additional layer of accountability the Treasurer submits the Xero accounts to Jodi Wyatt, one of our members who is a Chartered Accountant. Jodi reviews the accounts to ensure they comply with the statutory accounting standards and then prepares the Annual Financial Statements.