Financial Accounting Policy and Procedure

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 establishes standards for recording transactions and closing financial books monthly, quarterly, and annually. It ensures compliance with applicable federal, state, and local laws, Generally Accepted Accounting Principles (GAAP), and internal operational requirements.

3. Compliance and Filings

A. Accounting operations shall comply with all applicable laws and GAAP standards. B. The Corporation is exempt under IRC Section 501(c)(3) and California Revenue and Taxation Code Section 23701(d) and maintains books accordingly. C. All required corporate, tax, and sales returns shall be timely filed.

4. Accounting Policies

A. Basis of Accounting

Financial records and reports are maintained on the accrual basis of accounting in accordance with GAAP:

1. Revenues are recognized when measurable and available; and
2. Expenditures are recognized when obligations are incurred.

B. Net Asset Classifications

Financial activity is presented across established net asset classifications:

1. Unrestricted Net Assets: Discretionary resources for operational programs;
2. Temporarily Restricted Net Assets: Donor-restricted contributions for specific purposes or timeframes; and
3. Permanently Restricted Net Assets: Endowments or donor-restricted principal assets.

C. Cash and Equivalents

Highly liquid investments with maturities of three (3) months or less are classified as cash equivalents.

D. Property and Equipment

Equipment purchases exceeding $1,000 are capitalized and depreciated straight-line over useful lives of three (3) to five (5) years. Donated assets are recorded at fair market value when received.

E. Trademarks and Intangibles

Registration costs for organizational intellectual property, copyrights, and trademarks are capitalized.

F. Revenue Recognition

1. Contributions are recognized upon receipt or unconditional commitment. Donor-restricted contributions are released to unrestricted net assets as conditions are met.
2. Event and celebration revenues from concessions and merchandise are reconciled and audited upon deposit to guard against loss or shrinkage.
3. Contributed professional services and donated goods/advertising are recorded at fair value when meeting GAAP criteria.

G. Functional Allocation

Operating expenses are classified across Program, Management, and Fundraising functions.

H. Fiscal Year and Calendar

The fiscal year runs from October 1 through September 30. An accounting calendar documents all filing and reporting deadlines.

5. Reporting Specifications

The Corporation issues regular financial reports according to the following schedule:

Report Name	Description	Frequency	Due Date	Distribution
P&L Budget to Actual FYE Projection	Actuals to date, remaining budget allocations, full-year variance by account.	Monthly	3 days prior to BFC/Board meetings	BFC Members
Profit & Loss Statement	Monthly actuals and fiscal year-to-date totals.	Monthly	3 days prior to BFC/Board meetings	BFC Members
Balance Sheet	Current and long-term assets, liabilities, accounts receivable/payable, and net assets.	Monthly	3 days prior to BFC/Board meetings	BFC Members
Statement of Cash Flows	Inflows and outflows affecting cash balances.	Monthly	3 days prior to BFC/Board meetings	BFC Members
Budget Adjustment Record	Log of all budget reallocations, authorizations, and dates.	Monthly	3 days prior to BFC/Board meetings	BFC Members
Treasurer’s Report	Compilation of financial statements plus narrative analysis of variances and cash flow.	Monthly	3 days prior to Board meetings	Board of Directors
Annual Audit Report	Audited financial statements and auditor’s opinion.	Annually	Within 3 months of fiscal year-end	Board of Directors

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Adopted by the Board: 2012