Treasurer's report to the board: a template
A one-page treasurer's report template for a nonprofit board: cash, budget against actual, what changed, and what the board needs to decide.
A treasurer's report to the board should fit on one page and answer four questions: how much cash do we have, how are we doing against the budget, what changed since last time, and what does the board need to decide. The financial statements go behind it as attachments.
The template
Treasurer's report for the period ending [date]
Cash. We have $[amount] in the bank, which covers about [number] months of expenses. Last report it was $[amount].
Budget against actual, year to date. Revenue is $[amount] against a budget of $[amount]. Expenses are $[amount] against a budget of $[amount].
What changed. [Two or three lines. For example, the spring grant arrived a month late, and payroll rose in August when we filled the open position.]
What to watch. [One or two risks, with a date. For example, the state contract renews in March and makes up a third of revenue.]
For the board to decide. [Any motion the board is being asked to pass, or "Nothing this meeting."]
Attached. Statement of financial position, statement of activities, and budget against actual.
Writing it
Lead with cash. Directors can follow it without a finance background.
Explain variances in words. "Expenses are 8% over budget" raises a question. "Expenses are 8% over budget because we paid the annual insurance premium in one installment" answers it.
Use the same format every meeting, so directors learn where to look. If you change how something is counted, say so in the report.
Presenting it
Don't read the numbers aloud. Directors have the page. Spend two minutes on what changed and what to watch, then take questions.
BoardSource advises keeping financial statements off the consent agenda, so the board looks at them together.
In the minutes
Under Robert's Rules, a treasurer's report isn't approved by a vote. The minutes note that it was presented, and it is filed. An audit report is different, and the board does vote to accept that. The minutes guide has an example of how to record a financial report in one sentence.
If you aren't an accountant
Ask whoever keeps the books to produce the three attachments in the same layout every month, and to walk you through them before the packet goes out. Your job is to understand them well enough to explain them, and to notice when something looks wrong.
How Karma Compass helps
Customers have told us they find their QuickBooks numbers in Compass helpful. On the Organization plan, Karma Compass shows QuickBooks revenue, expenses and cash on the home screen. On every plan, Goals lets you set a target, such as "Raise $50,000 by December 31," and shows the board actual against pace as a chart.
Source
- Consent Agendas: BoardSource on keeping financial statements off the consent agenda.
Questions this post answers
What should a treasurer's report to the board include?
Cash on hand, revenue and expenses against budget for the year to date, a few lines on what changed, risks to watch, and any decision the board needs to make. Attach the financial statements.
How long should a treasurer's report be?
One page, with the financial statements attached behind it.
Does the board vote to approve the treasurer's report?
Under Robert's Rules it doesn't. The report is presented and filed, and the minutes note that. The board does vote on an audit report.
How often should the treasurer report to the board?
At every regular board meeting, in the same format each time.
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