"Treasurer responsibilities in Cooperative Housing Society"

 

Treasurer responsibilities in the Cooperative Housing Society

on in Society Information

WHO IS A TREASURER? 

What are the Treasurer's responsibilities in a cooperative housing society?

A treasurer is the elected office bearer in a co-op housing society who is responsible for all financial transactions, assets, and liabilities and whose primary job is accurate management of a society’s financial transactions and presenting the balance sheet & income & expenses report on time. 
A society should elect a person for the treasurer who is financially literate has some knowledge in accounting is highly qualified and can manage the banking transactions and cash transactions as per the bye-law.
As we know all committee members work for society free, as a social work, so no one can give their time full time for society. Also, accounting is the most important thing that society should keep up to date monthly all receipts and payments. So society can hire an accountant to work professionally, and they can provide all reports to society timely.
Below is the responsibility of the treasurer, but no need to worry about seeing the long list as most work is done by the accountant.

Responsibilities of the treasurer 

1. A Treasurer is responsible to provide and maintain all financial transactions relating to the Society.

2. To maintain all the account books and other records, if the secretary fails to do the same or if the committee so decides, to sign & issue a cheque as & when required. To sign, approve & maintain the payment vouchers of the society.

3. Deposit all the cash/cheques received by the society to the bank and issue receipts to the payers also.

4. To keep a record of members’ contributions towards maintenance, common funds, fixed deposits, etc, to bring to the committee.

5. Notice any late payments or defaulted payments, and implement a functional due collection procedure that the Secretary/committee members can follow.

6. Pay all the vendors' payments, and utilities payments like water and electricity charges through cheques.

7. Reconcile income and expenses monthly basis, so at year-end, no suspense account will be there.

8. Calculate maintenance charges, parking charges, and premiums payable by the transferor, compute the contribution amount of the members in any other charges, verify dues by members, and interest payable by defaulters.

9. Before giving NOC to members need to verify if any dues on the member.

10. Create a financial transaction policy when paying the vendors and creditors petty cash policy for internal expenses, cash withdrawal policy, etc, and discuss in committee for same.

11. To prepare an annual budget for the society, check income and expenses carefully if the society is at a loss discuss in MC and present the same in the AGM to increase the maintenance charges.

12. Prepare the budget for an ongoing or future activity, such as repair and renovation activities, etc

13. To open and manage the society’s bank account.

14. To follow up with the accounting firm to check, make timely entries in all account books, and manage cash flow, securities, vouchers, receipts, invoices counterfoils, and bank statements.

15. To ensure that petty cash amount should not go over Rs 5000 and any amount over Rs 1500 is paid by cheque.

16. To produce the balance sheet before the AGM date, and pass it to the committee, after that ask the Auditor to Audit the final account.

17. To prepare monthly, and annual account statements and the society’s profit loss balance sheet.

18. To make available any financial records that members want to check and to also produce the same for the Registrar, Managing Committee, or other government authorities.

19. To advise the Managing Committee for investing the profits and surplus and alternatively create investment guidelines/policies keeping in mind the suitability of the investment concerning the society’s needs.

20. Recommend and create fundraising planning for the society for any new projects.

21. To set rules and regulations on how the funds should be utilized as per the bylaws.

22. Ensure compliance of fund utilization as per by-law, observe, and report any wrongdoing to the Managing Committee.

23. To ensure that the society is compliant with the guidelines of the financial institutions such as cooperative, nationalized banks as well as RBI. Also, check audit remarks by the auditor and plan to short out the remark in a current financial year.