Financial Management Policy
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The Executive Director is accountable to the board for the day-to-day financial management of the organisation. Board approval is required whenever the following practices are, or must be changed or set aside.
Bookkeeping and Internal Controls
The Executive Director is responsible for:
- Maintaining a complete and up-to-date set of financial records in a manner consistent with CICA accounting and bookkeeping standards
- Insuring proper account reconciliations and closings
- Maintaining segregated accounts for tracking of project finances, where required by funders, to enable timely and accurate financial reporting to them
- Insuring that all expenditures made are ones within the budget
- Reasonable allowance to move funds between project budgets adhoc with an explanation to the Treasurer after the fact
- Seeking approval for unbudgeted expenditure over $1000.
- Submitting payroll and other taxes as required by law in collaboration with the bookkeeper
- Settling payroll and other liabilities in a timely manner in collaboration with the bookkeeper
- Preparing cheques for signature along with invoices and explanation in collaboration with the bookkeeper
- Issuing income tax receipts for donations received consistent with the fundraising policy and charitable designation rules
- Insuring adequate oversight of signing authority for all financial transactions
Budgeting
The budget is the primary mechanism enabling the board and staff to keep track of, and measure financial performance. The Executive Director is responsible for:
- The preparation and presentation of a draft annual budget for board approval at least one month prior to the beginning of every fiscal year in collaboration with the treasurer, accountant and executive.
- Ensuring that the budget is developed with sufficient information to judge the accuracy of the projections of revenues and expenditures.
- Ensuring that the basis of the budget in any one year is consistent with previous years.
- Identifying, within the budget, revenues and expenditures for different program areas.
- Updating the Treasurer board regularly on the performance of the organization in relation to budget.
- Preparing and presenting changes to the budget for amendment by the board.
Contracts and Loans
The Executive Director cannot, without board approval:
- Enter into new contractual arrangements with vendors that involve annual commitments by the organisation.
- Enter into contractual relations with funders that involve commitments for services
- Substantially change the organization’s banking arrangements or financial institutions
- Enter into a loan agreement with a bank or financial institution.
Financial Reporting
The Executive Director is responsible for:
- Reporting financial results to the Board in collaboration with the Treasurer in a meaning way including performance to budget
- Reporting extraordinary changes to assets and liabilities
- Reporting on any other financial issues that jeopardize the ability of the organization to meet its short and long term financial obligations
- Responding to the advice from auditors on needed improvements to financial management practices
- Presenting particular financial reports as requested by the board from time-to-time
Purchasing and the Protection of Assets
The Executive Director is responsible for:
- Ensuring that where an expense for particular goods or services purchased is significant that there is an assessment of the quality and price offered by different vendors
- Not purchasing or enter into contracts in situations where he/she, members of board or staff have an undeclared conflict of interest
- Operating with adequate fire, theft and liability insurance in effect
- Maintaining an asset listing for the building and contents
- Working with the guilds to include assets stored onsite but not owned by FDAC
- Operating with effective procedures for the safekeeping of key legal and contractual documents
- Operating with procedures for backing up and off site safekeeping of financial and other key computer records
General Policies
- Payroll is submitted to the bookkeeper in a timely manner, and direct deposit is used for payments, approved by the Board as budgeted. Anything over this would need Board approval.
- Cheques must be signed by two signing authorities.
- Personal credit cards may be used for all FDAC purchases up to $5000 and reimbursement will be made within 2 weeks for budgeted items such as alcohol for Wednesday Socials.
- On-site cash will be kept secured and dropped into the safe each evening, or when the amounts exceed $1000.