Financial Policy

Effective Date

Effective 25 July 2009

Purpose

VashonBePrepared maintains certain financial policies to ensure assets are properly safeguarded from theft or misappropriation and to ensure financial statements are accurate.

Definitions

Compensating controls – internal controls that are intended to reduce the risk of an existing or potential control weakness.

Policy

VashonBePrepared’s financial policies are as follows:

1.     Segregation of Accounting Duties – Responsibility for record-keeping duties and custody of VashonBePrepared’s assets must be properly segregated to ensure that no single individual is responsible for both of these functions. When duties cannot be separated, compensating controls must be in place.

With respect to VashonBePrepared’s bank account, the Board of Directors is responsible for appointing check signers and maintaining an up-to-date signature card with our bank.

VashonBePrepared’s Treasurer is responsible for issuing checks and reconciling the bank account each month. As a compensating control, VashonBePrepared’s Secretary will receive the monthly bank statement and review the activity (and any enclosures) to ensure that deposits, checks and bank charges are valid and reasonable.

2.     Expense Reimbursement – Individuals seeking reimbursement for budgeted out-of-pocket expenses must complete an Expense Reimbursement request which must be approved by a member of the Executive Committee prior to payment.

VashonBePrepared does not reimburse volunteers for travel-related expenses, including mileage – unless expressly approved by the Executive Committee prior to travel. All Expense Reimbursement requests must be submitted for reimbursement within 45 days of incurring the expense(s). Reimbursement requests submitted after 45 days will not be paid.

Expenses incurred which exceed budgeted amounts must be approved, as follows:

·        The Board President must approve all budgetary overruns up to ten percent of the budgeted amount (not exceeding $500.00).

·        The Executive Committee must approve all budgetary overruns which exceed ten percent of the budgeted amount, or are in excess of $500.00.

·        New, unbudgeted items of up to $2,000 can be approved by the Executive Committee if in keeping with VashonBePrepared’s mission and goals.

3.     Annual Budget Process – VashonBePrepared’s Executive Committee is responsible for developing an annual operating budget. The annual operating budget must be reviewed and approved by the Board of Directors.

4.     Grant Submission – All grant proposals must be approved by the Executive Committee prior to being submitted to grantors.

5.     Contracts – All contracts must be signed by two officers of VashonBePrepared.

Approved By

Approved by the Board, 25 July 2009

History

Related References

(none)

Applicable Legislation/Regulation

IRS 501(c)(3) Regulations

Washington State Corporate Law

Further Information

For further information please contact the VashonBePrepared Secretary or the VashonBePrepared Treasurer.