The Role of the Treasurer

A GUIDE FOR FIRST-TIMERS

Being a Treasurer is an important responsibility, especially in a rural water co-op where your neighbours (fellow members) are relying on you to keep finances in order.

Treasurers don’t need to have an accounting background, but they do need to be organized, attentive, and willing to ask questions. This bulletin will cover what a Treasurer does, explain common responsibilities, and offer a few practical tips to help new Treasurers succeed.

REGULATIONS SAY

Schedule 3, Section 10 of the Rural Utilities Regulation outlines the legal requirements for meetings of the Board, including the roles of a Secretary and Treasurer.

It says that water co-ops need to appoint a Treasurer (or a combined Secretary-Treasurer) and that the role may be filled by a member or the Board (or a member of the water co-op who is not elected to the Board). If there is no internally who can hold the position, then the Board will appoint someone externally to complete the Treasurer (and/or Secretary) duties.

[Rural Utilities Regulations, Dec. 2024]

WHAT DOES A TREASURER DO?

The Treasurer is the water co-op’s “financial shepherd.” They keep a watchful eye on the flow of money in and out. Their job is to help make sure the money coming in is tracked, the water co-op’s bills are paid on time, and the financial records are neat enough that the Board and members can trust the numbers.

The Board Treasurer will:

• Keep the books in check, recording payments and expenses in a ledger or through software, or making sure a bookkeeper is doing it accurately.
• Look at reports with a critical eye, checking bank balances, income, and expenses so the Board always knows where things stand.
• Guide the budget, helping plan for the year ahead, balancing what members can afford with what it takes to keep water flowing.
• Prepare for year-end, gathering records for the auditor (depending on your water co-op’s rules) and making sure everything is ready to present at the AGM.

In many rural water co-ops, the Treasurer’s role is very hands-on. Sometimes that means they’re the one tracking member payments, updating account records, or dealing directly with the bank. It can feel like a lot.

Treasurers shouldn’t do it all alone. Good internal controls and shared responsibilities (like having another signing officer) can keep one person from carrying the whole load while ensuring greater financial transparency.

THE ROLE OF A SECRETARY-TREASURER

Sometimes, the Treasurer’s role is bundled with the Secretary’s role. It can make sense in smaller volunteer organizations to have one person managing both the money and the paper trail. If this is the case in your water co-op, keep in mind this can mean wearing two hats at once.

When combined, the Secretary-Treasurer usually:

• Keeps the books and the minutes, recording not just the dollars and cents, but also the decisions the Board makes.
• Prepares reports, bringing both financial statements and meeting minutes to meeting so the Board and members can see the full picture of what’s been happening.
• Tracks member information, from payments and managing accounts in arrears to keeping the membership list up to date.

BEST PRACTICE

Set up a clear filing system (digital or paper) and make sure at least one other Director understands the basics of what you’re doing. That way, if you’re away or need help, the water co-op doesn’t grind to a halt.

Remember: The role is about stewardship and coordination, not doing every single task yourself. Put internal controls in place so no one person is holding all the keys.

BOOKKEEPING BASICS

Bookkeeping is simply the record of money coming in and money going out. Anyone looking at the books should be able to understand what the water co-op has in revenue, what it’s spent and what is left over.

If you’re a beginner, here’s an overview of the core pieces of bookkeeping:

Transactions: Every dollar that moves in or out should be recorded (member payments, bills paid, grants received, bank fees, etc.)

Receipts and Invoices: Keep copies in case anyone asks later.

Bank Reconciliation: Once a month, compare the water co-op’s bank statement to the water co-op’s internal records to make sure nothing is missing.

Chart of Accounts: A set of categories to record transactions (e.g. revenue, repairs, insurance, wages, etc.). Using the same categories consistently makes reports easy to follow.

Financial Statements: Accurate bookkeeping helps the Treasurer build reports like:

• Balance Sheet: what the water co-op owns (assets) and owes (liabilities) at a certain snapshot in time. Equity is the value the members have contributed.
• Income Statement (a.k.a. Profit and Loss): money earned vs. money spent over a certain period.
• Cash Flow: how money actually moves in and out. Reporting on cash flow will help the water co-op see if there are any times it may run short on funds.

The Treasurer/Board may delegate certain financial tasks to staff or contractors, however, the legal and ethical responsibility for strong financial governance stays with the Board as a whole.

TIPS FOR FIRST-TIME TREASURERS

Thanks for stepping into the important role of Treasurer!

In summary, here are some tips:

• Download the Checklist for Treasurers template and customize it for your water co-op. This will help you get orientated and stay organized on a monthly, quarterly and annual basis.
• Don’t reinvent the wheel, use a simple bookkeeping system or software.
• Reconcile regularly to ensure accuracy and keep things manageable.
• Always label entries with a date, description and category, and keep copies of everything. Future you and future Treasurers will thank you and it will make reporting easier.
• Monitor cash flow and plan ahead for big expenses and capital projects.
• Protect yourself with internal controls. Share the books with at least one other signing officer and/or the Board Chair so you’re not the only one with access or knowledge.
• Don’t hesitate to ask for help when you need it! Help can come from the Board, hired staff, or from people outside the water co-op, like an accountant, bookkeeper or auditor.
• Ask another Board member to review the books once in a while. A fresh set of eyes can help ensure accuracy and it’s a great cross-training opportunity for volunteers to learn other responsibilities.