Keeping your Playcentre safe financially

It is the responsibility of all members to be informed about the financial affairs of your Playcentre and ensure good financial decisions are being made.  It is members who authorise spending and business meeting minutes should clearly show how much has been authorised and for what purpose.  Several Playcentres have been left in a difficult financial position due to high levels of spend which were not properly authorised.  Although this high expenditure went on for a prolonged period, members were unaware of it as they had not demanded financial reports at business meetings.  Here is a reminder of some good practises:

  • No-one should approve a bank payment to themselves.
  • Have more than 2 bank signatories, so payments can be made to a signatory, and to avoid losing access to the bank if one leaves.
  • Set up accounts with regular vendors and pay on invoice, rather than being paid by a member and reimbursed.
  • Attach the invoice to all payments in Xero.
  • Treasurer sets a budget at the start of the financial year and this is approved at the AGM or business meeting.
  • Treasurer reports on income and expenditure compared to budget at each business meeting. Members feel comfortable requesting more details when things don’t seem to make sense.
  • Treasurer requests approval for all expenditure at a business meeting (regular payments can be preapproved without a specific amount e.g. power bills).
  • Meeting considers bank balance and budget before approving payments, to ensure affordability.
  • Check out the Finance Policy for more detail

In the event that anyone has any concerns or suspicion of serious wrongdoing (including poor financial management, theft or inappropriate behaviour relating to Playcentre financial matters such as not fulfilling our financial management undertakings stated within the Finance policy) – they are encouraged to raise their concerns as soon as possible to an appropriate Playcentre position of authority, which if not otherwise implicated may be the Chief Financial Officer or a Regional Manager.