Pitfalls in Money Management

Many club administrations spend enormous quantities of time in trying to raise money through gatetakings, sponsorship, fundraising, food and beverage sales, social functions and raffles, but all too often not enough time or emphasis is placed on monitoring where club funds go to from these activities. With correct controls in place, club profits will increase if stock and cash losses are minimised and less time is required from overworked club personnel.

Where does the money go? 

Unfortunately, in many cases, the fundraising areas are the areas where the major losses occur. It is in these areas that prudent controls and planning should be directed. 

Common faults in financial management at club level are:

  • Payment of accounts/players in cash
  • Coach and player payment agreements made without consultation with the full executive
  • Volunteer bar and canteen personnel are often unsure of prices, their responsibilities and feel that "one for all my work is not asking too much"
  • Unfair pressure placed on fill-in bar and canteen attendants, such as players manning the bar, to provide free goods to acquaintances
  • Gatekeepers allowing free admittance
  • Gatekeepers being paid a set amount regardless of gatetake
  • Stock for the bar and canteen ordered, sold and paid for by the one person
  • Raffle tickets bought and sold by the one person who then passes on the proceeds to treasurer
  • The terms and conditions of sponsorship agreements are not recorded in writing and tabled for the committee
  • "Contra" sponsorships are often not correctly reported or recorded
  • Lack of adequate planning in the social calendar such as communication and timing of events
  • Unclear responsibilities and the lack of adequate cash management in the running of social events
How can these faults be avoided? 

Through the implementation of correct financial procedures and stricter role allocations of club personnel many of the common faults can be avoided and a positive effect on club finances will result. 

Allocating receipts and payments to specific functional areas is of utmost importance. At the commencement of the year the full committee should meet to identify the functional "departments" within the club such as the bar, canteen, sponsorship, football operations, social events, etc. All income and payments that are made should be allocated to a specific department. 

While the treasurer accepts overall responsibility for the management of the finances of the club, with correct recording and checking procedures in place, the responsibility for the day to day operations of the various functional "departments" can be delegated to individuals or sub-committees. An example of these checking procedures are that no cash payments should be made and no cheque should be written without a valid receipt or invoice.

Go to Quality Club Program Assessment
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AFL 9s