Financial Responsibilities Policy

  1. Authority
    1. This policy is in all respects subordinate to the articles of incorporation, by laws and standing rules of the corporation.
  2. General
    1. This policy is designed to facilitate sound fiscal responsibility within the organization and clarify the relative responsibilities of the Board, the Treasurer, the Executive Director and the Bookkeeper. In short, the job of the Board is to set policy and provide oversight, the Treasurer’s is to provide detailed oversight and ensure the board has the information they need to fulfill their fiduciary responsibility, the Executive Director’s is to manage the Finance and Accounting personnel and ensure corporate and legal compliance and the Bookkeeper’s is to carry out day to day accounting functions. Particularly, the Treasurer and Executive Director will work as a team. The Executive Director will be responsive to the input and feedback of the Treasurer and the Treasurer will recognize that his/her duties do not extend to the micromanagement of the accounting function or specific budgets or any “veto” power over expenditures authorized by the Executive Director within the budget(s) set by the Board. All Board of directors shall receive annual training in the reading and understanding of financial documents of SF Pride, including but not limited to, profit and loss statements, budgets, and cash flow projections/projections. The training shall be documented and tracked in Board Director files. The Board Treasurer and the Executive Director will be responsible for arranging the training.
  3. Responsibilities & Duties
    1. The Board has a fiduciary responsibility, jointly, for the fiscal health and sustainability of the organization as a whole. Specifically the board shall:
      1. Work with the Treasurer and the Budget and Finance Committee (“BFC”) as needed to review, adjust and approve a sound, balanced income and expense budget.
      2. Approve or reject amendments to the budget from time to time before or during the fiscal year as may be requested by the ED, reviewed by the BFC and submitted by the treasurer.
      3. Promptly review submitted financial reports and audits and pose reasonable questions and information requests of the Treasurer and ED to gain the clarity needed to uphold fiduciary responsibility to the corporation.
      4. Appoint a Treasurer with appropriate knowledge of accounting and fiscal controls.
      5. Adjust and approve community partner grant totals prior to announcement of the check granting party each year.
    2. The Treasurer’s principal responsibility in the area of Finance shall be one of strategy and oversight. Specifically the Treasurer shall:
      1. Supervise, through the Executive Director where possible, the charge, custody and deposit of all funds and the maintenance of the corporation’s financial records.
      2. Submit a report to each meeting of the Board and the General Membership containing a profit and loss statement, balance sheet, statement of cash flows FYE budget to actual projection (See Reporting Below)
      3. Monitor financial performance to budget and draw to the attention of the board any deviations from budget, irregularities or patterns of expenditure which indicate a budget overrun or which the Treasurer feels should be brought to the attention of the Board.
      4. Convene the Budget and Finance Committee, which shall meet on dates and times as directed by Treasurer..
        1) Budget and Finance Committee shall meet at least one month prior to new fiscal year to review proposed new fiscal year budget.
        2) Budget and Finance Committee shall meet a minimum of 6 times per year and as often as necessary to ensure the smooth operation of the Finance and Accounting function of the corporation.
      5. Interface with the CPA assigned to perform the yearly audit, review the audit and submit it to the board for review and approval at the earliest opportunity, but no later than 3 months after the close of the fiscal year.
      6. Periodically review financial procedures and controls and propose updates as needed to maintain compliance with other policy changes, and changes to the bylaws, Generally Accepted Accounting Principles (GAAP) and federal, state and local regulations,etc.
    3. The ED’s principal responsibility shall be to manage the accounting staff and contractors and ensure that sound day-to-day fiscal management of the corporation is properly administered in compliance with applicable law, and in accordance with generally accepted accounting principles, this policy, and the SF Pride Financial Accounting Policies and Procedures. Specifically the ED shall:
      1. Make decisions regarding expenditures within each line item on the budget ensuring that no expenditures are made in a new fiscal year prior to having a ratified balanced budget in hand, and that no line item or the overall budget is overspent at the end of the fiscal year.
        1) Executive Director must seek approval for any new fiscal year expenditure that must be paid prior to board approval of new fiscal year budget.
        2) Ensure that all contracts (excluding sponsorship) are negotiated and presented to the Treasurer prior to new fiscal year for Board approval.
        3) ED must seek approval for any reallocation of budgets from one line item to another prior to incurring expenditures against those reallocations.
      2. Supervise the Bookkeeper and ensure compliance with all corporate, federal, state and local reporting procedures, requirements, regulations, Generally Accepted Accounting Principles and the SF Pride Financial Accounting Policy.
        1) Ensure the books are closed and balanced monthly within one week of the last day of the each month.
        2) Seek board approval for any changes to a closed accounting period.
        3) Ensure the proper creation of monthly, quarterly and FYE financial statements.
      3. Meet with the Treasurer on a quarterly basis and prior to any Budget and Finance Committee Meeting to review the budget and any other financial matters requiring attention.
      4. Make recommendation to the board for community partner grant totals in advance of the announcement of the check granting event along with documentation clearly describing how those totals were calculated, including donation totals, a full beverage P\&L, and an explanation of how expenses may have been allocated from or shared with the main P\&L.
      5. Promptly answer any and all finance and accounting questions, reporting and information requests posed by any Board or BFC member that would not otherwise violate SF Pride policy and procedures or federal, state, or local laws.
      6. Make reasonable efforts to utilize the governing Board, Community Advisory Board, and other volunteer or pro-bono services and resources that may be available in the SF Pride community at large in lieu of paid resources.
    4. Under the direction of the ED and also the Treasurer, the Bookkeeper shall carry out the bookkeeping and financial administrative functions such as cutting checks, keeping the books of account, filing returns, maintaining the corporate accounting calendar, depositing funds, processing invoices and generating all administrative/board financial reports cited herein or that which may be requested from time-to-time by the ED or the Treasurer.
  4. Check Signing
    1. All checks will require two signatures. The Executive Director, Board President and Treasurer shall be the recognized signatories on the bank mandate. All checks shall be signed by the Executive Director and, wherever possible the Treasurer. In the event that the Treasurer shall not be available the Executive Director may ask the president to sign a check. The Treasurer should be notified within 48 hours of any checks not bearing his/her signature. No one may sign a check made payable to herself/himself.
  5. 5. Emergency Procedures
  6. President’s Spending Authority.
    1. It is recognized that due to the nature of the corporation’s business there may be occasions on which an unbudgeted expense arises. The help facilitate the work of the corporation the Board President shall have discretion to spend up to $5,000 on an emergency basis. To qualify as an emergency the expenditure must meet three tests:
      1) It shall be deemed necessary by the Board President.
      2) Item must be unbudgeted.
      3) The item must be time sensitive, i.e., there must be no time to bring the matter before the Executive Committee prior to the expenditure needing to be incurred.
  7. The Board President shall, if possible, seek the advice and counsel of both the Treasurer and Executive Director before doing so.
  8. Bookkeeper Safeguards

  9. The bookkeeper shall maintain open access and confidential communication at all times with the Board President and Treasurer and, in an emergency, may be asked by either to address the entire board.

    Approved: at Board Meeting 09.07.99

    Amended at Board Meeting 10.05.99
    Amended at Board Meeting 06.05.12
    Amended at Board Meeting 10.02.12
    Amended 02.04.14
    Amended 06.03.14
    Amended 09.08.15

San Francisco Pride Celebration Committee, Inc.

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