Financial Responsibilities Policy

1. Authority

This policy is in all respects subordinate to the Articles of Incorporation, Bylaws, and Standing Rules of the corporation.

2. General

This policy facilitates sound fiscal responsibility within the organization and clarifies the respective roles of the Board, the Treasurer, the Executive Director, and the Bookkeeper:

A. The Board sets policy, approves budgets, and provides fiduciary oversight; B. The Treasurer provides detailed strategic financial oversight and ensures the Board has accurate reporting to fulfill its fiduciary responsibilities; C. The Executive Director manages finance personnel/contractors, oversees day-to-day operations, and ensures corporate compliance; and D. The Bookkeeper executes daily accounting and recording functions.

The Treasurer and Executive Director work collaboratively. The Executive Director remains responsive to Treasurer oversight, while the Treasurer’s role focuses on governance rather than operational micromanagement. All Board Directors shall receive annual training in reading and understanding financial statements, tracked in Director records.

3. Responsibilities and Duties

A. The Board of Directors

The Board holds joint fiduciary responsibility for the fiscal health and sustainability of the organization. Specifically, the Board shall:

1. Work with the Treasurer and Budget & Finance Committee (BFC) to review, adjust, and approve a balanced annual budget;
2. Approve or reject budget amendments requested during the fiscal year;
3. Promptly review financial reports and audits, posing questions to maintain accountability;
4. Appoint a qualified Treasurer with financial acumen; and
5. Review and approve community partner grant allocations prior to announcement.

B. The Treasurer

The Treasurer’s primary focus is financial strategy and oversight. Specifically, the Treasurer shall:

1. Supervise custody of all funds and maintenance of financial records through the Executive Director;
2. Submit monthly reports to the Board containing profit and loss statements, balance sheets, cash flow statements, and budget-to-actual projections;
3. Monitor performance against budget and report variances or concerns to the Board;
4. Convene the Budget & Finance Committee at least six (6) times per year, including a budget review meeting at least one month prior to the new fiscal year;
5. Coordinate with the independent auditor to deliver the annual audit to the Board within three (3) months of fiscal year-end; and
6. Periodically review financial controls and recommend updates to ensure GAAP and regulatory compliance.

C. The Executive Director

The Executive Director administers day-to-day fiscal operations in compliance with law, GAAP, and corporate policy. Specifically, the Executive Director shall:

1. Manage expenditures within approved budget line items, ensuring no new fiscal year funds are expended without an approved budget and no budget line item is overspent without authorization;
2. Supervise the Bookkeeper and ensure books are closed and balanced monthly within one week of month-end;
3. Meet quarterly with the Treasurer prior to BFC meetings to review budget status;
4. Present community partner grant recommendations with clear calculation documentation to the Board;
5. Promptly respond to financial reporting inquiries from the Board or BFC; and
6. Strive to utilize community and volunteer resources where practicable to maximize organizational efficiency.

D. The Bookkeeper

Under the direction of the Executive Director and Treasurer, the Bookkeeper executes bookkeeping, check processing, ledger maintenance, payroll preparation, tax filings, and financial report generation.

4. Check Signing

All checks require two signatures. The Executive Director, Board President, and Treasurer are authorized bank signatories. Checks shall be signed by the Executive Director and, wherever possible, the Treasurer (or the President when the Treasurer is unavailable). The Treasurer must be notified within 48 hours of any check issued without their signature. No individual may sign a check made payable to themselves.

5. Emergency Procedures

A. President’s Emergency Spending Authority

The Board President has discretionary authority to authorize up to $5,000 for emergency, unbudgeted, and time-sensitive expenditures where immediate action is required before the Executive Committee can convene. The President shall confer with the Treasurer and Executive Director whenever feasible.

B. Bookkeeper Safeguards

The Bookkeeper maintains direct, confidential communication access to the Board President and Treasurer at all times and may be invited to address the full Board regarding financial concerns.

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Approved by the Board: September 7, 1999
Amended: October 5, 1999; June 5, 2012; October 2, 2012; February 4, 2014; June 3, 2014; September 8, 2015