‘Corporate governance’ is a term used to describe the way in which associations conduct their business, understanding all their legal, financial and ethical obligations.
This includes:
• being aware of the legislative framework that sets out and defines the powers of the Association
• understanding the processes and accountabilities that must be followed when exercising powers of the Association
• having supporting documentation and a paper trail to support any decisions made by the Association.
What practical methods do the P&C adopt to ensure governance conditions are met?
- Ensure financial reporting is accurate and correct processes are adopted
- Read legal documents - do not just sign them
- Never sign blank cheques
- Ensure cheques have a supporting invoice, account and meeting resolution
- Ensure you have good communication with other executive members
- Do not engage in discussions where you may have a financial or personal interest
- Do not promote secret meetings; be open, transparent and accountable
- Always have two or more persons oversee the collection of cash
- Ensure accurate recording of minutes with motions noted in full
- Ensure P&C actions are in line with the Constitution’s objectives and functions
- Ensure your P&C abides by your governing legislative requirements, i.e. your Constitution, Accounting Manual, Education Act/regulations, etc.
- Ensure thorough and effective handover practices
Keeping records
- All association financial records should be kept for the following periods:
- Minutes forever Cashbook 20 years
- Financial Reports 5 years
- Audit Reports 7 years
- Receipt books, 5 years
- Order books, invoices 2 years
- Events paperwork (see taxation) 5 years
- Pay sheets and acquittal sheets 7 years
- Cash register strips 3 years
- Stock counting sheets 3 years
- Bank deposit slips 3 years
- Bank statements 2 years
- Petty cash and postage books 2 years
- Cheque butts/payment vouchers/invoices 5 years
- Volunteer and Membership Registers 20 years
- Letters, Contracts, Agreements forever
- Other correspondence, junk mail 1 year or less