Show Notes
The assumption that the Treasurer carries the financial responsibility so everyone else can relax is one of the most persistent and damaging myths in committee governance. It’s wrong, and it costs organisations. This episode covers the myth of not-for-profit, what financial responsibility actually looks like for every committee member, what the Treasurer’s role really is, the difference between a bookkeeper and an accountant, and the five governance structures that make financial management work properly — whoever is doing it.
In This Episode
- The myth of ‘not-for-profit means no surplus’ — why it’s wrong, what it actually costs organisations, and what not-for-profit actually means
- Why ‘we budget to break even’ is just budgeting to fail — and why three months of operating costs in reserve is the absolute minimum
- Every committee member is financially responsible — not just the Treasurer — and why approving a report you haven’t read is not a defence
- The Treasurer’s actual job: oversight, not bookkeeping — and the difference between a bookkeeper and an accountant
- What happens when you don’t have either — the no-one-person rule and why two or three committee members need bank access
- The best Treasurer Kate H ever worked with — and why she was a primary school teacher, not an accountant
- The five governance structures that protect the organisation’s money: Finance Subcommittee, Financial Management Policy, Delegations Register, Procurement Policy and Assets Register
- Where to start if you don’t have most of them — and why the Finance Subcommittee and Delegations Register are the most critical
Free Download
We’ve included a Treasurer’s Role Description Card and an overview of the Five Financial Structures. Download them and share with your treasurer, or use it to brief whoever’s thinking about taking the role on.
Coming Soon — The Committee Room WhatsApp Community
The Kates are setting up a WhatsApp Community where you can ask your questions by voice note, connect with other committee members, and get updates on new episodes. Details in Episode 24!
Want to Go Further?
The Committee Companion has practical financial templates and tools you can use straight away. And if you’d like a closer look at how your committee manages its money, the Good Governance Health Check through Fresh Allsorts is designed exactly for that. Details at freshallsorts.com.au.
This Week’s Challenges
Two this week — you had one off last episode so the Kates are making up for it:
First — look at those five governance structures. How many does your committee have? Finance Subcommittee, Financial Management Policy, Delegations Register, Procurement Policy, Assets Register. If there’s a gap, pick the one you need most and put it on the next agenda.
Second — have a look at the Treasurer’s Role Description Card in the show notes. Does what your Treasurer is actually doing match what the role should involve? If not, that’s a useful conversation to have before the next AGM.
Got a Question for the Kates?
Use the contact form at thecommitteeroom.com.au. And watch out for details of the new WhatsApp Community in Episode 24 — you’ll be able to send your questions as voice notes.
About Your Hosts
Kate Hartwig has spent forty years working in and around not-for-profit and membership organisations — as a CEO, director, and independent consultant. Her Committee Companion is a head start on good governance with checklists, frameworks and exemplars for committee members. katehartwig.com.au
Kate McPhee has three decades of hands-on experience helping small clubs and associations get more done with less stress. She is the author of Just a Tick, a plain-English governance guide for committees and boards. liquoriceallsorts.com.au
Together they offer governance health checks, the Constitution Composer, and other practical support through Fresh Allsorts.
This podcast provides general information on best practice governance for small to medium not-for-profit associations. It is not legal or financial advice.
Timestamps
00:03 — Who wants to be Treasurer?
01:17 — Introducing the Kates and this episode on finance
02:14 — The myth of “not for profit”
03:00 — What does “not for profit” actually mean?
05:00 — Finances are every committee member’s responsibility
05:54 — Committee participation in practice
06:33 — Don’t get put off by vague answers
06:46 — What does the Treasurer do?
07:17 — Bookkeeper/Accountant — what’s the difference?
07:47 — What happens when you don’t have a bookkeeper or accountant?
10:16 — Nuts and bolts
10:40 — It’s a big role — choose carefully
11:11 — Good financial management means having the right structures
11:27 — 1. Finance subcommittee
11:51 — 2. Financial management policy
12:08 — 3. Delegations register
12:45 — 4. Procurement policy
13:47 — 5. Assets register
14:15 — Where do we start?
15:09 — Recap
15:47 — This week’s challenges and next episode on reading the numbers
Next Episode
The three financial reports every committee member needs to understand — the Balance Sheet, the Profit and Loss, and the Cash Flow — in plain English, with the red flags that tell you something needs attention. Especially for people who, when handed a page full of columns, suddenly remember something urgent in the oven.
Resources & Links
🎙️ The Committee Room thecommitteeroom.com.au — episode archive, show notes, downloads and contact form
🍬 Fresh Allsorts freshallsorts.com.au — Governance Health Checks, the Constitution Composer and practical support from both Kates
Kate Hartwig Consulting katehartwig.com.au — including the Committee Companion, a head start on good governance with checklists, frameworks and exemplars
Liquorice Allsorts Consulting liquoriceallsorts.com.au — including Just a Tick, Kate McPhee’s plain-English governance guide
Facebook: The Committee Room
LinkedIn: The Committee Room
You don’t need good luck if you’ve got good governance.
The Committee Room | thecommitteeroom.com.au