Duties of a Treasurer

A treasurer, as a generic term, refers to a person who is in charge of the treasure (read funds). Treasury is a term used to convey a pool of money from which funds are allotted or granted for an organization to run. It could be a church, bank, housing society, educational society, and so on.

Therefore, a treasurer is someone who manages the money and makes plans as to how to add to the kitty as well. This was however a general overview of his/her duties. Let's take a look at the responsibilities of a treasurer in some more detail.

First and foremost, a treasurer is accountable for handling of funds, ensuring their safety and providing approval of funds as and when required. He also makes sure that the expenditure is according to the budget approved by the concerned organization. Basically, the origin and utilization of funds and custody supervision of funds is what a treasurer does.

A treasurer has to keep a vigil on the funds and see to it that the treasury is in a positive mode when it comes to balance. A preparation and presentation of periodical financial reports on the basis of expenditure and the addition to the funds (savings) is also an essential part of his job description.

The checking and maintenance of a savings account in a bank or any other savings institution as authorized by the concerned organization, is looked after by the treasurer. A part of the duty also involves investing money as laid down by the organization in question.

For example, a state treasurer in USA invests money in US government securities, commercial papers, and mutual funds.

Clearly defining and stating who is authorized to allocate and withdraw funds besides himself, also comes under his duties. Preparing an annual budget too comes under his portfolio. All this is done through accounting controls and procedures.

A string of credible reports and analysis is used by him for integration of the currency, for instance dollars, volume of sales or number of employees or production, and financial costs into a series of percentages and ratios. These help in aiding the management in the evaluation of progress and profitability.

In case of any organization, a very important duty of the treasure is investigation of fraud, and loss or theft of the funds. It is all a part of the financial management carried out by him.

Maintenance of detailed records of profit, disposing and discharging all liabilities emanating from debt, taxation, credit, and keeping a close eye on the management risk policy, is done by a treasurer.

Collection and keeping a track of cash receipts, management of secured credit, debt financing and repayment, and anticipation of future needs are important tasks he needs to carry out. Ultimately, it leads to keeping the treasury equipped well enough in case if an unprecedented expenditure is incurred.

He needs to have complete knowledge of the fiscal status of the organization. Especially in case of a bank, the treasurer plays a key role if there is a merger or an acquisition.

All these duties need the person to have a degree in accounting, finance, or a related field. Sometimes, an individual having an MBA degree in accounting or finance is preferred. The individual needs to be of spotless character and ethical, as he is handling a large amount of money. An eye for detail and good communication skills are necessary too.