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.
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:
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.