Treasurer, credit committee, audit committee: who does what in a group fund

Most problems in group funds aren't caused by dishonesty but by too much power in one pair of hands. When the same person collects dues, keeps the only record, approves loans and moves money, even an honest mistake can go unnoticed for months. Clear roles fix that.

#The core officials

#Chairperson

Leads meetings, keeps the group focused on its purpose, and breaks deadlocks. Should not handle money day to day.

#Secretary

Keeps minutes, the membership register and correspondence. Records decisions, such as approved loans and constitution changes, so there's one version of what was agreed.

#Treasurer / fund manager

Runs the money: records contributions, disburses approved loans and welfare, reconciles the account, and prepares reports. It's the busiest role and the one that needs the most checks around it.

#The committees

#Credit committee

Reviews loan applications against the rules — standing, tenure, credit score, amount and purpose — and recommends approve or decline. Recommendations go to the fund manager for a final decision and disbursement.

Why split it? The committee judges the borrower; the manager checks the fund can afford it. Neither alone can push a loan through. And nobody reviews or decides their own application. More in how to run loans in a savings group.

#Audit committee

Two or three members who hold no other office. They have read-only access to everything: the books, loans, welfare decisions and the audit trail. They check the records against bank or mobile money statements, spot anomalies, and report to members. See the annual audit checklist.

#A simple separation-of-duties table

#Practical safeguards

• Two signatories for every withdrawal.
• Members can see their own records at any time — the most powerful fraud control there is.
• An audit trail that records who changed what and when, and can't be edited.
• Rotation of officials every few years.
• No self-dealing: officials can't approve their own loans or claims.

#Role descriptions you can adapt

Fund manager / treasurer — records contributions and repayments; disburses approved loans and welfare; reconciles the accounts monthly; prepares reports. About 2–4 hours a month for a 50-member fund with good software.

Credit committee member — reviews each loan application against the lending policy within an agreed time (e.g. five days); records a recommendation and reasons.

Audit committee member — checks the books against statements quarterly; runs the annual audit; reports to the AGM. Holds no other office.

Writing short descriptions like these helps candidates know what they're signing up for — and makes it easier to find volunteers at the AGM.

These controls are built into AwaFund: roles for owner, fund manager, credit committee, audit committee and members, where each person only sees and does what their role allows, and every action lands in an audit log. For more on protecting your fund, read preventing fraud in group funds.

Frequently asked questions

Can the treasurer also sit on the credit committee?

It's better not to. The person who holds the money shouldn't also decide who borrows it. Keeping them separate is one of the simplest fraud controls.

How often should officials rotate?

Two-year terms with a limit of two consecutive terms is common. Rotation spreads knowledge and reduces the risk of one person becoming indispensable.

This guide is general information to help groups organise themselves. It isn't financial, tax or legal advice — rules for savings groups differ by country, so check with a qualified adviser for your situation.