EFFECTIVE SEPTEMBER 1, 2023
Introduction
The purpose of this policy is to ensure the proper management of financial resources at 1000 Generations, a nonprofit organization. The following financial controls are put in place to ensure that funds are used in accordance with the stated purpose of 1000 Generations, and that financial activities are conducted in an ethical and transparent manner.
Roles and Responsibilities
The Director of Finance shall be responsible for overseeing the implementation of this policy and ensuring that all financial activities comply with relevant laws and regulations. The Director of Finance shall also be responsible for communicating this policy to all employees and stakeholders.
Budgetary Controls
- The Director of Finance shall prepare an annual budget for approval by the Board of Directors.
- The Director of Finance shall monitor actual expenses against the budget on a monthly basis and report any significant variances to the Board of Directors.
- By approving an annual budget, the Board of Directors authorizes staff to incur qualifying expenditures.
Revenue Controls
- All donations and grants shall be recorded in the accounting system promptly upon receipt.
- Donations and grants shall be deposited or sent for deposit within three business days of receipt.
- The Director of Finance shall reconcile bank deposits with accounting records on a monthly basis.
Hiring and Wages
- All new hires must be approved by the State Director.
- Wage increases and bonuses affecting more than one employee must be approved by the Board of Directors, either as a part of annual budget approval, or via special vote.
- The Director is authorized to give raises to individual employees, with the following provisions:
- Raise shall not exceed 2% or $1,000 annually.
- Notification shall be given to the Board of Directors.
Expenditure Controls
- The Director of Finance shall reconcile accounting records with bank statements on a monthly basis.
- The Director of Finance shall ensure that all expenditures are within the approved budget and comply with relevant policies and procedures.
- All expenditures shall be supported by appropriate documentation, such as receipts or invoices.
- Expense reimbursements exceeding $150 for any of the following must be approved by the Director of Finance or the State Director before reimbursement is processed.
- Meal and Travel
- Continuing Education
- Staff Care
- All of the following expenses must be approved by the Finance Director or State Director before incurring expense or entering a contractual agreement to do so:
- Non-payroll expenses exceeding $5,000
- Extra-budgetary expenditures exceeding $1,000
- Any single purchase exceeding $500 in the following categories: Meals and Travel, Continuing Education, and Staff Care.
- All of the following expenses must be approved by the Finance Committee before incurring expense or entering a contractual agreement to do so:
- All non-payroll expenses exceeding $10,000.
- All expenditures exceeding $5,000 not already approved via the annual budget.
Check Signing
- Checks under $5,000 require the signature of one authorized signer.
- Checks over $5,000 require the signature of two authorized signers.
Authorized Signers
Authorized signers are recorded in the most recent Authorized Signer Resolution, which should be reviewed annually and updated accordingly.
Responsible Party
The Director of Finance is responsible for the administration of this policy, at the direction of the Treasurer and Board of Directors.
Conclusion
This financial controls policy is an essential part of 1000 Generations' commitment to responsible fiscal management. All stakeholders are expected to comply with this policy to ensure that the organization's financial resources are used effectively and efficiently.