Without a doubt, every treasurer of a society reserve fund should have the answer to the following question: Are you meeting all fiduciary responsibilities in order to minimize or eliminate liability issues for BOD members?
  • How do you separate the accounts with different purposes? (operating, reserve, etc.)
  • Do you maintain a reserve fund in addition to your operating fund? Who suggested you handle it like that?
    • Is the portfolio professionally managed or handled internally by the treasurer?– Is your Treasurer aware of the potential liability when the account is handled internally?


  • How does your internal staff work with the monitoring & reporting of your accounts?
  • Does the executive director get involved with the advisor decision making process or is that handled at the board level?
  • How do you evaluate expenses associated with your accounts?– Fees, commissions, internal expense factors.
  • How often are investment results (returns) reported to your organization?– How often are they evaluated against appropriate benchmarks?
  • How does the organization determine how funds should be invested?– Do you have a written Investment Policy Statement (IPS)? If so, when was it last reviewed? If not, who suggested you operate without a policy statement?
  • How do you evaluate the amount of risk you are currently taking with the accounts?
  • How do your board members determine the amount of risk they are willing to take?
    – How often have they taken more risk than is appropriate?
  • How do you provide consistency to your investment program given the transition of your Treasurers?
  • Is there continuity with your advisor or does the advisor change with the treasurer?
  • How is your advisor compensated?– Commission…fee?
  • How does the advisor communicate to you?– Is there a regular and predictable form of contact from the advisor?
  • How well does your advisor respond to the needs of your staff? (supplemental information requests, providing information for staff reports, etc.)
  • How often does your advisor participate in finance committee or board phone conferences?
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