Kawaguchi O'Connor Initiative Wiki - User contributions [en]

Talk:KOI Wiki Best Practices

2026-08-28T20:32:10Z

JoshFreese:

== Idiomatic Location ==
The "correct" location if we were dotting all our Ts, crossing all of our eyes and following all previously existing Dewey decimal systems, would be something like <code>KOIWiki:Best Practices</code>.

Someone with Wiki admin privileges (hi, let me hand out promotions) can do the move and have an automatic redirect so nobody has to go back and update links right away. I'm leaving this comment here and waiting for objections before I do that later tomorrow. [[User:Origintopleft|Origintopleft]] ([[User talk:Origintopleft|talk]]) 18:38, 28 August 2026 (UTC)

No Objections from me! - Josh

Main Page

2026-08-27T01:46:05Z

JoshFreese: Added KOI Wiki Best Practices

{{Border box|<h3>Welcome to the Kawaguchi O'Connor Initiative Wiki</h3>}}

Consult the [https://www.mediawiki.org/wiki/Special:MyLanguage/Help:Contents User's Guide] for information on using the wiki software.

=== Element Directory ===

==== Volunteers ====

* [http://matrix.to/#/!qcxGRYWvmHUhwQLDdB:koinitiative.org?via=koinitiative.org All Team]
* [https://matrix.to/#/!NNiDobEqZqdeDkNhvu:koinitiative.org?via=koinitiative.org Finance Fun] (Finance Committee)
* [https://matrix.to/#/#committee-wiki:koinitiative.org Wiki Development Room]
* [https://matrix.to/#/!DVVGvXxgewfTRZIhSy:koinitiative.org?via=koinitiative.org Volunteer Mutual Aid]

==== Volunteers and Evacuees ====

* [https://matrix.to/#/!IwivGIzpSvygApSytT:koinitiative.org?via=koinitiative.org Vetted General]
* [https://matrix.to/#/#tunes:koinitiative.org Tunesville]

=== KOI Documentation ===
<b> Finances </b>

* [[KOI Financial Policies and Procedures]]
* HOLD FOR 990, TO BE PUBLISHED IN 2027

== Getting started ==
* [[KOI Wiki Best Practices]]
* [[mediawikiwiki:Special:MyLanguage/Manual:Configuration_settings|Configuration settings list]]
* [https://www.mediawiki.org/wiki/Special:MyLanguage/Manual:FAQ MediaWiki FAQ]
* [https://lists.wikimedia.org/postorius/lists/mediawiki-announce.lists.wikimedia.org/ MediaWiki release mailing list]
* [https://www.mediawiki.org/wiki/Special:MyLanguage/Localisation#Translation_resources Localise MediaWiki for your language]
* [https://www.mediawiki.org/wiki/Special:MyLanguage/Manual:Combating_spam Learn how to combat spam on your wiki]

KOI Financial Policies and Procedures

2026-08-20T18:40:31Z

JoshFreese: /* Fund Management */ Fixed typos, and added clarifications.

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with audits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===
'''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs

'''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month

'''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).

'''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)

'''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.

'''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.

'''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.

'''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.

'''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its name, it is a good thing to have a going concern.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Duties ===
Separation of Duites (sometimes called segregation of duties) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three duties in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
The most dangerous duty to have combined with another is authorization.

Finance Comrades forbidden from holding authorization duties. Bank Signatories are forbidden from holding record-keeping duties.

=== Materiality ===

==== Materiality for evacuee expenses ====
Materiality will determine the amount of scrutiny an evacuee expense incurs. A set amount will be determined and referable by the Finance Committee. There can be multiple scales of materiality for an evacuee expense.

The lowest on the materiality threshhold will involve the following:

* The least amount of authorizers needed.
* The least amount of documnetation
* The least amount of natural consequences in cases of misappropriation.

The highest amount of materiality will involve the following:

* Clearest enforcement of Internal Controls
* Concise recording of authorization, and authorizors.
* Contracts if needed.
* The clearest understanding of natural consequences when it comes to misappropriation and fraud.

If there is a prohibited transaction for an evacuee, there will be no materiality threshold and scrutiny will be in place.

==== Materiality for non-evacuee expenses ====
Materiality will determine the amount of scrutiny an non-expense incurs. A set amount will be determined and referable by the Finance Committee. There can be multiple scales of materiality for an evacuee expense.

The lowest on the materiality threshhold will involve the following:

* The least amount of authorizers needed.
* The least amount of documnetation
* The detail in a Journal Entry Workpaper
* The least amount of natural consequences in cases of misappropriation.

The highest amount of materiality will involve the following:

* Clearest enforcement of Internal Controls
* Concise recording of authorization, and authorizors.
* Contracts if needed.
* Highest detail required for a Journal Entry workpaper.
* The clearest understanding of natural consequences when it comes to misappropriation and fraud.

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using more appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
* Using funds from a restricted fund for expenses not allowed by said restricted fund.
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===
The accounting system used by KOI must contain the following functionalities:

* User and Audit Logs of Logins, and transaction modifications.
* Transaction Recording
* Financial Statement Reporting
*Journal Entry Logging
*Bank Reconciliation
*User Management
The Accounting system should only be completely accessible by KOI Volunteers who have record keeping privileges (Finance Comrades and the Board Treasurer). No one with signatory powers should be able to reconcile bank statements and record transactions in the accounting software. Read only accounts are highly suggested for those on the board and those with signatory powers.

Xero is the Accounting System used by KOI.

=== Fundraising Systems ===
Fundraising systems should be utilized to log the donor transactions for KOI. They should:

* Log the donor who donated
* Log the donation date
* Log the fund donated to.

Ideally, such systems should also accept donations easily and electronically.

Donation systems might contain donor information such as bank information and credit card numbers. It is important to protect this data and ensure only folks with need to know privileges have access to said systems.

Donations need to curated when received to ensure no fund restrictions are in place.

==== Zeffy ====
Zeffy is the primary donation platform for KOI. Individuals who wish to donate directly to KOI are referred to our Zeffy link.

Zeffy donations include the following, and more:

* The donor name
* The restriction of the donation (if any)
*The donation method
*The cadence of the donation
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account
Exports of donations can be done via the zeffy web portal. Such exports should be kept with KOI as backup documentation of the purpose of the donation,and the donor.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Zeffy system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

==== Benevity ====
Benevity is KOI's main workplace donation platform. Employees can ask their employer to have paycheck deductions

Benevity donations can include the following, and more:

*The donor name
* The restriction of the donation (if any)
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account

In addition, Benevity can also collect corporate matches for their employee's donations.

The matching donations can include:

*The matching organization
* The restriction of the donation (if any)
*The date of the donation
*The employee the donation is matching
*The date deposited in KOI's bank account

It is important to record such information for record keeping purposes.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Benevity system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

To access Benevity, the account must have a Mutli-Factor Authentication feature turned on. Currently, that MFA feature is SMS only.

=== Office Applications - Google Drive ===
Google Drive, sometimes called Google Docs, is a cloud based application that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)
* Presentation Slides (Called Slides)

In addition, the google drive can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for primary document retention, budgeting, and other finance tasks that are required.

Due to the current political climate, and the possible capitulation of Google with a hostile government, it is recommended only primary documents that do not contain volunteer/evacuee names be stored on Google Drive.

=== Office Applications - Cryptpad ===
Cryptpad is a cloud based application environment that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)

In addition, cryptpad can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for retention of documents that contain sensitive information such as Bank Statements, Evacuee names, payroll records, etc.

=== Communication - Element/Matrix ===
The Finance Committee communicates needs, issues, task delegations, meeting times, etc. via the KOI Matrix Server with the Client Element. There is a Finance Committee channel where all of the Finance Comrades and the Board Treasurer communicate. The channel is also open to any other KOI volunteer, and it is encouraged other KOI volunteers join to provide oversight on the KOI Finance Committee.

Expenses are brought to the entire KOI volunteer organization for review. Emoji reacts do not count as approval or veto'ing of an expense. Approval via Matrix does not count as approval of expenses for legal reasons.

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash account will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and collaborated.

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

If there is a new expenditure/program that materially effects the organization, then either:

* The budget must be amended, or
* An entire re-forecast of the budget must occur.

A Re-forecasted budget, or budget amendment, must be approved by majority vote in the Finance Committee. The Finance Committee must alert the rest of the organization about the changes in the budget.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets (equity) into dedicated funds. The IRS requires KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is the general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

==== Evacuee Expense Authorization ====
Expenses that require authorization must have:

* The name of the KOI volunteer that approved the expense.
* The name of the KOI Volunteer that proposed the expense
* The date of the approval

A KOI Volunteer cannot approve their own expense.

Expenses that do not require authorization are either budgeted to include documentation only, or are a re-occurring expense that has pre-authorization to occur.

Those with record-keeping, or custody, powers cannot authorize an expense.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary service such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses. These expenses need approval for the first instance. Afterwards, no further authorization is needed barring changes in the purpose of the transaction, amount, or timing.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card use cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, or the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the card.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
KOI will retain copies of every compliant, audit, and/or government filing and keep it organized in case there are any need to refer to past filings.

=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
The 990 is the annual filing with the IRS as a non-profit. The deadline for such filings is May 15th, or October 15th (if an extension was filed).

To file a 990, the prior year's financials must be completed and closed (meaning, no modifications allowed). Ideally, the financial statements would be audited if required for a grant.

To file a 990, the following pieces of information is required:

* List of Board of Directors
* Compensated Directors
* Major Donors
* An end of year Income Statement for the prior year.
* A end of year Balance sheet statement for the prior year.
* A list of expenses per Management, Programs, and Fundraising.

The 990-N is the annual filing KOI can file in place of the 990 if certain requirements are met. KOI currently doesn't meet those requirements, and it will unlikely be able to due to the financial obligations of supporting evacuees.

==== Payroll Filings 940 and 941 ====
If KOI were to ever have payroll, regular payroll filings would need to be filed. During payroll, employee deductions for Unemployment Insurance (UI or FUTA) would be held in a liability account. The 940 report would need to be filed before the end of the month following the end of the prior quarter.

During payroll, employee deductions for federal withholding, social security, and medicare would be held in a liability account. At the same time, employer contributions to social security and medicare will be expensed and held in a liability account. At the end of the month after the quarter ends KOI will pay the aggregate totals reported in a 941 form to the IRS.

If it works better for KOI, a deposit system can be used to keep on top of the payroll liabilities through the quarter.

==== Annual W-2's and W-3s ====
If there were payroll in a calendar year, the W-2s and W-3s are due at the end of January of the following year. The W-3 will contain the aggregate information for all of the boxes of the W-2s filed for the year. Ideally, this is filed electronically.

==== Annual 1099's and 1096's ====
If there are payments to Non-employee contractors (individuals, sole proprietorship) or Single member LLC's, KOI must collect a W-9 from said vendor if the aggregate amounts paid for the year meet, exceed, or will exceed $600.00. KOI will then file the 1099's by the end of January following the year, along with a 1096 that will consolidate all of the payments of the 1099s.

=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
Every Year, KOI will file the annual Excise tax by April 15th 2026 electronically via dor.wa.gov and the Secure Access Washington (SAW) Account.

=== Washington State – Payroll ===

==== ESD Filing ====
After payroll is calculated and Unemployment withholdings are withheld, KOI will file an electronic return with ESD via the SAW account for the fiscal quarter. Funds will be sent to ESD electronically, or by paper check. The due date for the filings is the last day after the last fiscal quarter. It is recommended a csv is prepared well before the filing to make the filing easier. Instructions can be found on esd.wa.gov.

==== LnI (Labor and Industries) Filing ====
Before KOI begins withholding LnI withholdings, a Business Type Class must be designated for all workers, and the appropriate rate written down. These rates can be found on lni.wa.gov (Most likely 5308 - Community Action). The rate is multiplied by the amount of hours worked in a payroll period, and withheld from pay to be allocated in a payroll liability account. At the end of the quarter, the LnI return is filed by multiplying the total amount of payroll hours for the prior fiscal quarter by the LnI rate chosen. The return is due by the last day of the month following the fiscal quarter. The return is filed on lni.wa.gov, and it is recommended a CSV of the hours of the prior quarter be prepared ahead of time.

==== PFMLA Filing ====
KOI will need to determine what amount of the premiums will be paid by KOI, and what amount will be paid by the employee. Once those rates have been decided, the employer withholdings are expensed and put into a payroll tax liability, and the employee deductions are put into a payroll tax liability. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and PFMLA withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

==== WA Cares Filing ====
KOI will need to request if any employee wants to exempt themselves from WA Cares. The employee deductions are put into a payroll tax liability during every payroll. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and WA Cares withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

=== King County ===
No report currently required by King County.

=== City of Seattle ===
To remain compliant with the City of Seattle, KOI will file a business tax return with the City digitally via [https://www.filelocal-wa.gov/ File Local] .This report is due at the end of April of every year.

KOI Financial Policies and Procedures

2026-08-20T18:30:16Z

JoshFreese: Resolved some comments in Credit Card Policy.

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with audits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===
'''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs

'''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month

'''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).

'''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)

'''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.

'''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.

'''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.

'''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.

'''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its name, it is a good thing to have a going concern.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Duties ===
Separation of Duites (sometimes called segregation of duties) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three duties in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
The most dangerous duty to have combined with another is authorization.

Finance Comrades forbidden from holding authorization duties. Bank Signatories are forbidden from holding record-keeping duties.

=== Materiality ===

==== Materiality for evacuee expenses ====
Materiality will determine the amount of scrutiny an evacuee expense incurs. A set amount will be determined and referable by the Finance Committee. There can be multiple scales of materiality for an evacuee expense.

The lowest on the materiality threshhold will involve the following:

* The least amount of authorizers needed.
* The least amount of documnetation
* The least amount of natural consequences in cases of misappropriation.

The highest amount of materiality will involve the following:

* Clearest enforcement of Internal Controls
* Concise recording of authorization, and authorizors.
* Contracts if needed.
* The clearest understanding of natural consequences when it comes to misappropriation and fraud.

If there is a prohibited transaction for an evacuee, there will be no materiality threshold and scrutiny will be in place.

==== Materiality for non-evacuee expenses ====
Materiality will determine the amount of scrutiny an non-expense incurs. A set amount will be determined and referable by the Finance Committee. There can be multiple scales of materiality for an evacuee expense.

The lowest on the materiality threshhold will involve the following:

* The least amount of authorizers needed.
* The least amount of documnetation
* The detail in a Journal Entry Workpaper
* The least amount of natural consequences in cases of misappropriation.

The highest amount of materiality will involve the following:

* Clearest enforcement of Internal Controls
* Concise recording of authorization, and authorizors.
* Contracts if needed.
* Highest detail required for a Journal Entry workpaper.
* The clearest understanding of natural consequences when it comes to misappropriation and fraud.

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using more appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
* Using funds from a restricted fund for expenses not allowed by said restricted fund.
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===
The accounting system used by KOI must contain the following functionalities:

* User and Audit Logs of Logins, and transaction modifications.
* Transaction Recording
* Financial Statement Reporting
*Journal Entry Logging
*Bank Reconciliation
*User Management
The Accounting system should only be completely accessible by KOI Volunteers who have record keeping privileges (Finance Comrades and the Board Treasurer). No one with signatory powers should be able to reconcile bank statements and record transactions in the accounting software. Read only accounts are highly suggested for those on the board and those with signatory powers.

Xero is the Accounting System used by KOI.

=== Fundraising Systems ===
Fundraising systems should be utilized to log the donor transactions for KOI. They should:

* Log the donor who donated
* Log the donation date
* Log the fund donated to.

Ideally, such systems should also accept donations easily and electronically.

Donation systems might contain donor information such as bank information and credit card numbers. It is important to protect this data and ensure only folks with need to know privileges have access to said systems.

Donations need to curated when received to ensure no fund restrictions are in place.

==== Zeffy ====
Zeffy is the primary donation platform for KOI. Individuals who wish to donate directly to KOI are referred to our Zeffy link.

Zeffy donations include the following, and more:

* The donor name
* The restriction of the donation (if any)
*The donation method
*The cadence of the donation
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account
Exports of donations can be done via the zeffy web portal. Such exports should be kept with KOI as backup documentation of the purpose of the donation,and the donor.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Zeffy system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

==== Benevity ====
Benevity is KOI's main workplace donation platform. Employees can ask their employer to have paycheck deductions

Benevity donations can include the following, and more:

*The donor name
* The restriction of the donation (if any)
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account

In addition, Benevity can also collect corporate matches for their employee's donations.

The matching donations can include:

*The matching organization
* The restriction of the donation (if any)
*The date of the donation
*The employee the donation is matching
*The date deposited in KOI's bank account

It is important to record such information for record keeping purposes.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Benevity system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

To access Benevity, the account must have a Mutli-Factor Authentication feature turned on. Currently, that MFA feature is SMS only.

=== Office Applications - Google Drive ===
Google Drive, sometimes called Google Docs, is a cloud based application that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)
* Presentation Slides (Called Slides)

In addition, the google drive can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for primary document retention, budgeting, and other finance tasks that are required.

Due to the current political climate, and the possible capitulation of Google with a hostile government, it is recommended only primary documents that do not contain volunteer/evacuee names be stored on Google Drive.

=== Office Applications - Cryptpad ===
Cryptpad is a cloud based application environment that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)

In addition, cryptpad can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for retention of documents that contain sensitive information such as Bank Statements, Evacuee names, payroll records, etc.

=== Communication - Element/Matrix ===
The Finance Committee communicates needs, issues, task delegations, meeting times, etc. via the KOI Matrix Server with the Client Element. There is a Finance Committee channel where all of the Finance Comrades and the Board Treasurer communicate. The channel is also open to any other KOI volunteer, and it is encouraged other KOI volunteers join to provide oversight on the KOI Finance Committee.

Expenses are brought to the entire KOI volunteer organization for review. Emoji reacts do not count as approval or veto'ing of an expense. Approval via Matrix does not count as approval of expenses for legal reasons.

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash account will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and collaborated.

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

If there is a new expenditure/program that materially effects the organization, then either:

* The budget must be amended, or
* An entire re-forecast of the budget must occur.

A Re-forecasted budget, or budget amendment, must be approved by majority vote in the Finance Committee. The Finance Committee must alert the rest of the organization about the changes in the budget.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

==== Evacuee Expense Authorization ====
Expenses that require authorization must have:

* The name of the KOI volunteer that approved the expense.
* The name of the KOI Volunteer that proposed the expense
* The date of the approval

A KOI Volunteer cannot approve their own expense.

Expenses that do not require authorization are either budgeted to include documentation only, or are a re-occurring expense that has pre-authorization to occur.

Those with record-keeping, or custody, powers cannot authorize an expense.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary service such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses. These expenses need approval for the first instance. Afterwards, no further authorization is needed barring changes in the purpose of the transaction, amount, or timing.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card use cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, or the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the card.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
KOI will retain copies of every compliant, audit, and/or government filing and keep it organized in case there are any need to refer to past filings.

=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
The 990 is the annual filing with the IRS as a non-profit. The deadline for such filings is May 15th, or October 15th (if an extension was filed).

To file a 990, the prior year's financials must be completed and closed (meaning, no modifications allowed). Ideally, the financial statements would be audited if required for a grant.

To file a 990, the following pieces of information is required:

* List of Board of Directors
* Compensated Directors
* Major Donors
* An end of year Income Statement for the prior year.
* A end of year Balance sheet statement for the prior year.
* A list of expenses per Management, Programs, and Fundraising.

The 990-N is the annual filing KOI can file in place of the 990 if certain requirements are met. KOI currently doesn't meet those requirements, and it will unlikely be able to due to the financial obligations of supporting evacuees.

==== Payroll Filings 940 and 941 ====
If KOI were to ever have payroll, regular payroll filings would need to be filed. During payroll, employee deductions for Unemployment Insurance (UI or FUTA) would be held in a liability account. The 940 report would need to be filed before the end of the month following the end of the prior quarter.

During payroll, employee deductions for federal withholding, social security, and medicare would be held in a liability account. At the same time, employer contributions to social security and medicare will be expensed and held in a liability account. At the end of the month after the quarter ends KOI will pay the aggregate totals reported in a 941 form to the IRS.

If it works better for KOI, a deposit system can be used to keep on top of the payroll liabilities through the quarter.

==== Annual W-2's and W-3s ====
If there were payroll in a calendar year, the W-2s and W-3s are due at the end of January of the following year. The W-3 will contain the aggregate information for all of the boxes of the W-2s filed for the year. Ideally, this is filed electronically.

==== Annual 1099's and 1096's ====
If there are payments to Non-employee contractors (individuals, sole proprietorship) or Single member LLC's, KOI must collect a W-9 from said vendor if the aggregate amounts paid for the year meet, exceed, or will exceed $600.00. KOI will then file the 1099's by the end of January following the year, along with a 1096 that will consolidate all of the payments of the 1099s.

=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
Every Year, KOI will file the annual Excise tax by April 15th 2026 electronically via dor.wa.gov and the Secure Access Washington (SAW) Account.

=== Washington State – Payroll ===

==== ESD Filing ====
After payroll is calculated and Unemployment withholdings are withheld, KOI will file an electronic return with ESD via the SAW account for the fiscal quarter. Funds will be sent to ESD electronically, or by paper check. The due date for the filings is the last day after the last fiscal quarter. It is recommended a csv is prepared well before the filing to make the filing easier. Instructions can be found on esd.wa.gov.

==== LnI (Labor and Industries) Filing ====
Before KOI begins withholding LnI withholdings, a Business Type Class must be designated for all workers, and the appropriate rate written down. These rates can be found on lni.wa.gov (Most likely 5308 - Community Action). The rate is multiplied by the amount of hours worked in a payroll period, and withheld from pay to be allocated in a payroll liability account. At the end of the quarter, the LnI return is filed by multiplying the total amount of payroll hours for the prior fiscal quarter by the LnI rate chosen. The return is due by the last day of the month following the fiscal quarter. The return is filed on lni.wa.gov, and it is recommended a CSV of the hours of the prior quarter be prepared ahead of time.

==== PFMLA Filing ====
KOI will need to determine what amount of the premiums will be paid by KOI, and what amount will be paid by the employee. Once those rates have been decided, the employer withholdings are expensed and put into a payroll tax liability, and the employee deductions are put into a payroll tax liability. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and PFMLA withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

==== WA Cares Filing ====
KOI will need to request if any employee wants to exempt themselves from WA Cares. The employee deductions are put into a payroll tax liability during every payroll. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and WA Cares withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

=== King County ===
No report currently required by King County.

=== City of Seattle ===
To remain compliant with the City of Seattle, KOI will file a business tax return with the City digitally via [https://www.filelocal-wa.gov/ File Local] .This report is due at the end of April of every year.

KOI Financial Policies and Procedures

2026-08-20T18:23:36Z

JoshFreese: /* Organization Budgeting */ Added extra language regarding budget amendments and re-forecasts.

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with audits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===
'''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs

'''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month

'''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).

'''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)

'''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.

'''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.

'''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.

'''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.

'''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its name, it is a good thing to have a going concern.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Duties ===
Separation of Duites (sometimes called segregation of duties) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three duties in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
The most dangerous duty to have combined with another is authorization.

Finance Comrades forbidden from holding authorization duties. Bank Signatories are forbidden from holding record-keeping duties.

=== Materiality ===

==== Materiality for evacuee expenses ====
Materiality will determine the amount of scrutiny an evacuee expense incurs. A set amount will be determined and referable by the Finance Committee. There can be multiple scales of materiality for an evacuee expense.

The lowest on the materiality threshhold will involve the following:

* The least amount of authorizers needed.
* The least amount of documnetation
* The least amount of natural consequences in cases of misappropriation.

The highest amount of materiality will involve the following:

* Clearest enforcement of Internal Controls
* Concise recording of authorization, and authorizors.
* Contracts if needed.
* The clearest understanding of natural consequences when it comes to misappropriation and fraud.

If there is a prohibited transaction for an evacuee, there will be no materiality threshold and scrutiny will be in place.

==== Materiality for non-evacuee expenses ====
Materiality will determine the amount of scrutiny an non-expense incurs. A set amount will be determined and referable by the Finance Committee. There can be multiple scales of materiality for an evacuee expense.

The lowest on the materiality threshhold will involve the following:

* The least amount of authorizers needed.
* The least amount of documnetation
* The detail in a Journal Entry Workpaper
* The least amount of natural consequences in cases of misappropriation.

The highest amount of materiality will involve the following:

* Clearest enforcement of Internal Controls
* Concise recording of authorization, and authorizors.
* Contracts if needed.
* Highest detail required for a Journal Entry workpaper.
* The clearest understanding of natural consequences when it comes to misappropriation and fraud.

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using more appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
* Using funds from a restricted fund for expenses not allowed by said restricted fund.
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===
The accounting system used by KOI must contain the following functionalities:

* User and Audit Logs of Logins, and transaction modifications.
* Transaction Recording
* Financial Statement Reporting
*Journal Entry Logging
*Bank Reconciliation
*User Management
The Accounting system should only be completely accessible by KOI Volunteers who have record keeping privileges (Finance Comrades and the Board Treasurer). No one with signatory powers should be able to reconcile bank statements and record transactions in the accounting software. Read only accounts are highly suggested for those on the board and those with signatory powers.

Xero is the Accounting System used by KOI.

=== Fundraising Systems ===
Fundraising systems should be utilized to log the donor transactions for KOI. They should:

* Log the donor who donated
* Log the donation date
* Log the fund donated to.

Ideally, such systems should also accept donations easily and electronically.

Donation systems might contain donor information such as bank information and credit card numbers. It is important to protect this data and ensure only folks with need to know privileges have access to said systems.

Donations need to curated when received to ensure no fund restrictions are in place.

==== Zeffy ====
Zeffy is the primary donation platform for KOI. Individuals who wish to donate directly to KOI are referred to our Zeffy link.

Zeffy donations include the following, and more:

* The donor name
* The restriction of the donation (if any)
*The donation method
*The cadence of the donation
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account
Exports of donations can be done via the zeffy web portal. Such exports should be kept with KOI as backup documentation of the purpose of the donation,and the donor.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Zeffy system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

==== Benevity ====
Benevity is KOI's main workplace donation platform. Employees can ask their employer to have paycheck deductions

Benevity donations can include the following, and more:

*The donor name
* The restriction of the donation (if any)
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account

In addition, Benevity can also collect corporate matches for their employee's donations.

The matching donations can include:

*The matching organization
* The restriction of the donation (if any)
*The date of the donation
*The employee the donation is matching
*The date deposited in KOI's bank account

It is important to record such information for record keeping purposes.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Benevity system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

To access Benevity, the account must have a Mutli-Factor Authentication feature turned on. Currently, that MFA feature is SMS only.

=== Office Applications - Google Drive ===
Google Drive, sometimes called Google Docs, is a cloud based application that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)
* Presentation Slides (Called Slides)

In addition, the google drive can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for primary document retention, budgeting, and other finance tasks that are required.

Due to the current political climate, and the possible capitulation of Google with a hostile government, it is recommended only primary documents that do not contain volunteer/evacuee names be stored on Google Drive.

=== Office Applications - Cryptpad ===
Cryptpad is a cloud based application environment that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)

In addition, cryptpad can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for retention of documents that contain sensitive information such as Bank Statements, Evacuee names, payroll records, etc.

=== Communication - Element/Matrix ===
The Finance Committee communicates needs, issues, task delegations, meeting times, etc. via the KOI Matrix Server with the Client Element. There is a Finance Committee channel where all of the Finance Comrades and the Board Treasurer communicate. The channel is also open to any other KOI volunteer, and it is encouraged other KOI volunteers join to provide oversight on the KOI Finance Committee.

Expenses are brought to the entire KOI volunteer organization for review. Emoji reacts do not count as approval or veto'ing of an expense. Approval via Matrix does not count as approval of expenses for legal reasons.

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash account will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and collaborated.

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

If there is a new expenditure/program that materially effects the organization, then either:

* The budget must be amended, or
* An entire re-forecast of the budget must occur.

A Re-forecasted budget, or budget amendment, must be approved by majority vote in the Finance Committee. The Finance Committee must alert the rest of the organization about the changes in the budget.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

==== Evacuee Expense Authorization ====
Expenses that require authorization must have:

* The name of the KOI volunteer that approved the expense.
* The name of the KOI Volunteer that proposed the expense
* The date of the approval

A KOI Volunteer cannot approve their own expense.

Expenses that do not require authorization are either budgeted to include documentation only, or are a re-occurring expense that has pre-authorization to occur.

Those with record-keeping, or custody, powers cannot authorize an expense.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary service such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card use cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, or the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the card.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
KOI will retain copies of every compliant, audit, and/or government filing and keep it organized in case there are any need to refer to past filings.

=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
The 990 is the annual filing with the IRS as a non-profit. The deadline for such filings is May 15th, or October 15th (if an extension was filed).

To file a 990, the prior year's financials must be completed and closed (meaning, no modifications allowed). Ideally, the financial statements would be audited if required for a grant.

To file a 990, the following pieces of information is required:

* List of Board of Directors
* Compensated Directors
* Major Donors
* An end of year Income Statement for the prior year.
* A end of year Balance sheet statement for the prior year.
* A list of expenses per Management, Programs, and Fundraising.

The 990-N is the annual filing KOI can file in place of the 990 if certain requirements are met. KOI currently doesn't meet those requirements, and it will unlikely be able to due to the financial obligations of supporting evacuees.

==== Payroll Filings 940 and 941 ====
If KOI were to ever have payroll, regular payroll filings would need to be filed. During payroll, employee deductions for Unemployment Insurance (UI or FUTA) would be held in a liability account. The 940 report would need to be filed before the end of the month following the end of the prior quarter.

During payroll, employee deductions for federal withholding, social security, and medicare would be held in a liability account. At the same time, employer contributions to social security and medicare will be expensed and held in a liability account. At the end of the month after the quarter ends KOI will pay the aggregate totals reported in a 941 form to the IRS.

If it works better for KOI, a deposit system can be used to keep on top of the payroll liabilities through the quarter.

==== Annual W-2's and W-3s ====
If there were payroll in a calendar year, the W-2s and W-3s are due at the end of January of the following year. The W-3 will contain the aggregate information for all of the boxes of the W-2s filed for the year. Ideally, this is filed electronically.

==== Annual 1099's and 1096's ====
If there are payments to Non-employee contractors (individuals, sole proprietorship) or Single member LLC's, KOI must collect a W-9 from said vendor if the aggregate amounts paid for the year meet, exceed, or will exceed $600.00. KOI will then file the 1099's by the end of January following the year, along with a 1096 that will consolidate all of the payments of the 1099s.

=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
Every Year, KOI will file the annual Excise tax by April 15th 2026 electronically via dor.wa.gov and the Secure Access Washington (SAW) Account.

=== Washington State – Payroll ===

==== ESD Filing ====
After payroll is calculated and Unemployment withholdings are withheld, KOI will file an electronic return with ESD via the SAW account for the fiscal quarter. Funds will be sent to ESD electronically, or by paper check. The due date for the filings is the last day after the last fiscal quarter. It is recommended a csv is prepared well before the filing to make the filing easier. Instructions can be found on esd.wa.gov.

==== LnI (Labor and Industries) Filing ====
Before KOI begins withholding LnI withholdings, a Business Type Class must be designated for all workers, and the appropriate rate written down. These rates can be found on lni.wa.gov (Most likely 5308 - Community Action). The rate is multiplied by the amount of hours worked in a payroll period, and withheld from pay to be allocated in a payroll liability account. At the end of the quarter, the LnI return is filed by multiplying the total amount of payroll hours for the prior fiscal quarter by the LnI rate chosen. The return is due by the last day of the month following the fiscal quarter. The return is filed on lni.wa.gov, and it is recommended a CSV of the hours of the prior quarter be prepared ahead of time.

==== PFMLA Filing ====
KOI will need to determine what amount of the premiums will be paid by KOI, and what amount will be paid by the employee. Once those rates have been decided, the employer withholdings are expensed and put into a payroll tax liability, and the employee deductions are put into a payroll tax liability. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and PFMLA withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

==== WA Cares Filing ====
KOI will need to request if any employee wants to exempt themselves from WA Cares. The employee deductions are put into a payroll tax liability during every payroll. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and WA Cares withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

=== King County ===
No report currently required by King County.

=== City of Seattle ===
To remain compliant with the City of Seattle, KOI will file a business tax return with the City digitally via [https://www.filelocal-wa.gov/ File Local] .This report is due at the end of April of every year.

KOI Financial Policies and Procedures

2026-08-20T17:08:51Z

JoshFreese:

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with audits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===
'''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs

'''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month

'''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).

'''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)

'''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.

'''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.

'''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.

'''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.

'''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its name, it is a good thing to have a going concern.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Duties ===
Separation of Duites (sometimes called segregation of duties) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three duties in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
The most dangerous duty to have combined with another is authorization.

Finance Comrades forbidden from holding authorization duties. Bank Signatories are forbidden from holding record-keeping duties.

=== Materiality ===

==== Materiality for evacuee expenses ====
Materiality will determine the amount of scrutiny an evacuee expense incurs. A set amount will be determined and referable by the Finance Committee. There can be multiple scales of materiality for an evacuee expense.

The lowest on the materiality threshhold will involve the following:

* The least amount of authorizers needed.
* The least amount of documnetation
* The least amount of natural consequences in cases of misappropriation.

The highest amount of materiality will involve the following:

* Clearest enforcement of Internal Controls
* Concise recording of authorization, and authorizors.
* Contracts if needed.
* The clearest understanding of natural consequences when it comes to misappropriation and fraud.

If there is a prohibited transaction for an evacuee, there will be no materiality threshold and scrutiny will be in place.

==== Materiality for non-evacuee expenses ====
Materiality will determine the amount of scrutiny an non-expense incurs. A set amount will be determined and referable by the Finance Committee. There can be multiple scales of materiality for an evacuee expense.

The lowest on the materiality threshhold will involve the following:

* The least amount of authorizers needed.
* The least amount of documnetation
* The detail in a Journal Entry Workpaper
* The least amount of natural consequences in cases of misappropriation.

The highest amount of materiality will involve the following:

* Clearest enforcement of Internal Controls
* Concise recording of authorization, and authorizors.
* Contracts if needed.
* Highest detail required for a Journal Entry workpaper.
* The clearest understanding of natural consequences when it comes to misappropriation and fraud.

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using more appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
* Using funds from a restricted fund for expenses not allowed by said restricted fund.
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===
The accounting system used by KOI must contain the following functionalities:

* User and Audit Logs of Logins, and transaction modifications.
* Transaction Recording
* Financial Statement Reporting
*Journal Entry Logging
*Bank Reconciliation
*User Management
The Accounting system should only be completely accessible by KOI Volunteers who have record keeping privileges (Finance Comrades and the Board Treasurer). No one with signatory powers should be able to reconcile bank statements and record transactions in the accounting software. Read only accounts are highly suggested for those on the board and those with signatory powers.

Xero is the Accounting System used by KOI.

=== Fundraising Systems ===
Fundraising systems should be utilized to log the donor transactions for KOI. They should:

* Log the donor who donated
* Log the donation date
* Log the fund donated to.

Ideally, such systems should also accept donations easily and electronically.

Donation systems might contain donor information such as bank information and credit card numbers. It is important to protect this data and ensure only folks with need to know privileges have access to said systems.

Donations need to curated when received to ensure no fund restrictions are in place.

==== Zeffy ====
Zeffy is the primary donation platform for KOI. Individuals who wish to donate directly to KOI are referred to our Zeffy link.

Zeffy donations include the following, and more:

* The donor name
* The restriction of the donation (if any)
*The donation method
*The cadence of the donation
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account
Exports of donations can be done via the zeffy web portal. Such exports should be kept with KOI as backup documentation of the purpose of the donation,and the donor.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Zeffy system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

==== Benevity ====
Benevity is KOI's main workplace donation platform. Employees can ask their employer to have paycheck deductions

Benevity donations can include the following, and more:

*The donor name
* The restriction of the donation (if any)
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account

In addition, Benevity can also collect corporate matches for their employee's donations.

The matching donations can include:

*The matching organization
* The restriction of the donation (if any)
*The date of the donation
*The employee the donation is matching
*The date deposited in KOI's bank account

It is important to record such information for record keeping purposes.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Benevity system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

To access Benevity, the account must have a Mutli-Factor Authentication feature turned on. Currently, that MFA feature is SMS only.

=== Office Applications - Google Drive ===
Google Drive, sometimes called Google Docs, is a cloud based application that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)
* Presentation Slides (Called Slides)

In addition, the google drive can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for primary document retention, budgeting, and other finance tasks that are required.

Due to the current political climate, and the possible capitulation of Google with a hostile government, it is recommended only primary documents that do not contain volunteer/evacuee names be stored on Google Drive.

=== Office Applications - Cryptpad ===
Cryptpad is a cloud based application environment that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)

In addition, cryptpad can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for retention of documents that contain sensitive information such as Bank Statements, Evacuee names, payroll records, etc.

=== Communication - Element/Matrix ===
The Finance Committee communicates needs, issues, task delegations, meeting times, etc. via the KOI Matrix Server with the Client Element. There is a Finance Committee channel where all of the Finance Comrades and the Board Treasurer communicate. The channel is also open to any other KOI volunteer, and it is encouraged other KOI volunteers join to provide oversight on the KOI Finance Committee.

Expenses are brought to the entire KOI volunteer organization for review. Emoji reacts do not count as approval or veto'ing of an expense. Approval via Matrix does not count as approval of expenses for legal reasons.

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash account will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

==== Evacuee Expense Authorization ====
Expenses that require authorization must have:

* The name of the KOI volunteer that approved the expense.
* The name of the KOI Volunteer that proposed the expense
* The date of the approval

A KOI Volunteer cannot approve their own expense.

Expenses that do not require authorization are either budgeted to include documentation only, or are a re-occurring expense that has pre-authorization to occur.

Those with record-keeping, or custody, powers cannot authorize an expense.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary service such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card use cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, or the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the card.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
KOI will retain copies of every compliant, audit, and/or government filing and keep it organized in case there are any need to refer to past filings.

=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
The 990 is the annual filing with the IRS as a non-profit. The deadline for such filings is May 15th, or October 15th (if an extension was filed).

To file a 990, the prior year's financials must be completed and closed (meaning, no modifications allowed). Ideally, the financial statements would be audited if required for a grant.

To file a 990, the following pieces of information is required:

* List of Board of Directors
* Compensated Directors
* Major Donors
* An end of year Income Statement for the prior year.
* A end of year Balance sheet statement for the prior year.
* A list of expenses per Management, Programs, and Fundraising.

The 990-N is the annual filing KOI can file in place of the 990 if certain requirements are met. KOI currently doesn't meet those requirements, and it will unlikely be able to due to the financial obligations of supporting evacuees.

==== Payroll Filings 940 and 941 ====
If KOI were to ever have payroll, regular payroll filings would need to be filed. During payroll, employee deductions for Unemployment Insurance (UI or FUTA) would be held in a liability account. The 940 report would need to be filed before the end of the month following the end of the prior quarter.

During payroll, employee deductions for federal withholding, social security, and medicare would be held in a liability account. At the same time, employer contributions to social security and medicare will be expensed and held in a liability account. At the end of the month after the quarter ends KOI will pay the aggregate totals reported in a 941 form to the IRS.

If it works better for KOI, a deposit system can be used to keep on top of the payroll liabilities through the quarter.

==== Annual W-2's and W-3s ====
If there were payroll in a calendar year, the W-2s and W-3s are due at the end of January of the following year. The W-3 will contain the aggregate information for all of the boxes of the W-2s filed for the year. Ideally, this is filed electronically.

==== Annual 1099's and 1096's ====
If there are payments to Non-employee contractors (individuals, sole proprietorship) or Single member LLC's, KOI must collect a W-9 from said vendor if the aggregate amounts paid for the year meet, exceed, or will exceed $600.00. KOI will then file the 1099's by the end of January following the year, along with a 1096 that will consolidate all of the payments of the 1099s.

=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
Every Year, KOI will file the annual Excise tax by April 15th 2026 electronically via dor.wa.gov and the Secure Access Washington (SAW) Account.

=== Washington State – Payroll ===

==== ESD Filing ====
After payroll is calculated and Unemployment withholdings are withheld, KOI will file an electronic return with ESD via the SAW account for the fiscal quarter. Funds will be sent to ESD electronically, or by paper check. The due date for the filings is the last day after the last fiscal quarter. It is recommended a csv is prepared well before the filing to make the filing easier. Instructions can be found on esd.wa.gov.

==== LnI (Labor and Industries) Filing ====
Before KOI begins withholding LnI withholdings, a Business Type Class must be designated for all workers, and the appropriate rate written down. These rates can be found on lni.wa.gov (Most likely 5308 - Community Action). The rate is multiplied by the amount of hours worked in a payroll period, and withheld from pay to be allocated in a payroll liability account. At the end of the quarter, the LnI return is filed by multiplying the total amount of payroll hours for the prior fiscal quarter by the LnI rate chosen. The return is due by the last day of the month following the fiscal quarter. The return is filed on lni.wa.gov, and it is recommended a CSV of the hours of the prior quarter be prepared ahead of time.

==== PFMLA Filing ====
KOI will need to determine what amount of the premiums will be paid by KOI, and what amount will be paid by the employee. Once those rates have been decided, the employer withholdings are expensed and put into a payroll tax liability, and the employee deductions are put into a payroll tax liability. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and PFMLA withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

==== WA Cares Filing ====
KOI will need to request if any employee wants to exempt themselves from WA Cares. The employee deductions are put into a payroll tax liability during every payroll. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and WA Cares withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

=== King County ===
No report currently required by King County.

=== City of Seattle ===
To remain compliant with the City of Seattle, KOI will file a business tax return with the City digitally via [https://www.filelocal-wa.gov/ File Local] .This report is due at the end of April of every year.

KOI Financial Policies and Procedures

2026-08-20T15:19:28Z

JoshFreese: Resolved some comments.

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with audits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===
'''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs

'''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month

'''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).

'''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)

'''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.

'''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.

'''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.

'''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.

'''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its name, it is a good thing to have a going concern.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Duties ===
Separation of Duites (sometimes called segregation of duties) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three duties in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
The most dangerous duty to have combined with another is authorization.

Finance Comrades forbidden from holding authorization duties. Bank Signatories are forbidden from holding record-keeping duties.

=== Materiality ===

==== Materiality for evacuee expenses ====
Materiality will determine the amount of scrutiny an evacuee expense incurs. A set amount will be determined and referable by the Finance Committee. There can be multiple scales of materiality for an evacuee expense.

The lowest on the materiality threshhold will involve the following:

* The least amount of authorizers needed.
* The least amount of documnetation
* The least amount of natural consequences in cases of misappropriation.

The highest amount of materiality will involve the following:

* Clearest enforcement of Internal Controls
* Concise recording of authorization, and authorizors.
* Contracts if needed.
* The clearest understanding of natural consequences when it comes to misappropriation and fraud.

If there is a prohibited transaction for an evacuee, there will be no materiality threshold and scrutiny will be in place.

==== Materiality for non-evacuee expenses ====
Materiality will determine the amount of scrutiny an non-expense incurs. A set amount will be determined and referable by the Finance Committee. There can be multiple scales of materiality for an evacuee expense.

The lowest on the materiality threshhold will involve the following:

* The least amount of authorizers needed.
* The least amount of documnetation
* The detail in a Journal Entry Workpaper
* The least amount of natural consequences in cases of misappropriation.

The highest amount of materiality will involve the following:

* Clearest enforcement of Internal Controls
* Concise recording of authorization, and authorizors.
* Contracts if needed.
* Highest detail required for a Journal Entry workpaper.
* The clearest understanding of natural consequences when it comes to misappropriation and fraud.

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using more appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
* Using funds from a restricted fund for expenses not allowed by said restricted fund.
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===
The accounting system used by KOI must contain the following functionalities:

* User and Audit Logs of Logins, and transaction modifications.
* Transaction Recording
* Financial Statement Reporting
*Journal Entry Logging
*Bank Reconciliation
*User Management
The Accounting system should only be completely accessible by KOI Volunteers who have record keeping privileges (Finance Comrades and the Board Treasurer). No one with signatory powers should be able to reconcile bank statements and record transactions in the accounting software. Read only accounts are highly suggested for those on the board and those with signatory powers.

Xero is the Accounting System used by KOI.

=== Fundraising Systems ===
Fundraising systems should be utilized to log the donor transactions for KOI. They should:

* Log the donor who donated
* Log the donation date
* Log the fund donated to.

Ideally, such systems should also accept donations easily and electronically.

Donation systems might contain donor information such as bank information and credit card numbers. It is important to protect this data and ensure only folks with need to know privileges have access to said systems.

Donations need to curated when received to ensure no fund restrictions are in place.

==== Zeffy ====
Zeffy is the primary donation platform for KOI. Individuals who wish to donate directly to KOI are referred to our Zeffy link.

Zeffy donations include the following, and more:

* The donor name
* The restriction of the donation (if any)
*The donation method
*The cadence of the donation
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account
Exports of donations can be done via the zeffy web portal. Such exports should be kept with KOI as backup documentation of the purpose of the donation,and the donor.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Zeffy system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

==== Benevity ====
Benevity is KOI's main workplace donation platform. Employees can ask their employer to have paycheck deductions

Benevity donations can include the following, and more:

*The donor name
* The restriction of the donation (if any)
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account

In addition, Benevity can also collect corporate matches for their employee's donations.

The matching donations can include:

*The matching organization
* The restriction of the donation (if any)
*The date of the donation
*The employee the donation is matching
*The date deposited in KOI's bank account

It is important to record such information for record keeping purposes.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Benevity system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

To access Benevity, the account must have a Mutli-Factor Authentication feature turned on. Currently, that MFA feature is SMS only.

=== Office Applications - Google Drive ===
Google Drive, sometimes called Google Docs, is a cloud based application that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)
* Presentation Slides (Called Slides)

In addition, the google drive can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for primary document retention, budgeting, and other finance tasks that are required.

Due to the current political climate, and the possible capitulation of Google with a hostile government, it is recommended only primary documents that do not contain volunteer/evacuee names be stored on Google Drive.

=== Office Applications - Cryptpad ===
Cryptpad is a cloud based application environment that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)

In addition, cryptpad can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for retention of documents that contain sensitive information such as Bank Statements, Evacuee names, payroll records, etc.

=== Communication - Element/Matrix ===
The Finance Committee communicates needs, issues, task delegations, meeting times, etc. via the KOI Matrix Server with the Client Element. There is a Finance Committee channel where all of the Finance Comrades and the Board Treasurer communicate. The channel is also open to any other KOI volunteer, and it is encouraged other KOI volunteers join to provide oversight on the KOI Finance Committee.

Expenses are brought to the entire KOI volunteer organization for review. Emoji reacts do not count as approval or veto'ing of an expense. Approval via Matrix does not count as approval of expenses for legal reasons.

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash account will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

==== Evacuee Expense Authorization ====
Expenses that require authorization must have:

* The name of the KOI volunteer that approved the expense.
* The name of the KOI Volunteer that proposed the expense
* The date of the approval

A KOI Volunteer cannot approve their own expense.

Expenses that do not require authorization are either budgeted to include documentation only, or are a re-occurring expense that has pre-authorization to occur.

Those with record-keeping, or custody, powers cannot authorize an expense.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary service such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the card.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
KOI will retain copies of every compliant, audit, and/or government filing and keep it organized in case there are any need to refer to past filings.

=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
The 990 is the annual filing with the IRS as a non-profit. The deadline for such filings is May 15th, or October 15th (if an extension was filed).

To file a 990, the prior year's financials must be completed and closed (meaning, no modifications allowed). Ideally, the financial statements would be audited if required for a grant.

To file a 990, the following pieces of information is required:

* List of Board of Directors
* Compensated Directors
* Major Donors
* An end of year Income Statement for the prior year.
* A end of year Balance sheet statement for the prior year.
* A list of expenses per Management, Programs, and Fundraising.

The 990-N is the annual filing KOI can file in place of the 990 if certain requirements are met. KOI currently doesn't meet those requirements, and it will unlikely be able to due to the financial obligations of supporting evacuees.

==== Payroll Filings 940 and 941 ====
If KOI were to ever have payroll, regular payroll filings would need to be filed. During payroll, employee deductions for Unemployment Insurance (UI or FUTA) would be held in a liability account. The 940 report would need to be filed before the end of the month following the end of the prior quarter.

During payroll, employee deductions for federal withholding, social security, and medicare would be held in a liability account. At the same time, employer contributions to social security and medicare will be expensed and held in a liability account. At the end of the month after the quarter ends KOI will pay the aggregate totals reported in a 941 form to the IRS.

If it works better for KOI, a deposit system can be used to keep on top of the payroll liabilities through the quarter.

==== Annual W-2's and W-3s ====
If there were payroll in a calendar year, the W-2s and W-3s are due at the end of January of the following year. The W-3 will contain the aggregate information for all of the boxes of the W-2s filed for the year. Ideally, this is filed electronically.

==== Annual 1099's and 1096's ====
If there are payments to Non-employee contractors (individuals, sole proprietorship) or Single member LLC's, KOI must collect a W-9 from said vendor if the aggregate amounts paid for the year meet, exceed, or will exceed $600.00. KOI will then file the 1099's by the end of January following the year, along with a 1096 that will consolidate all of the payments of the 1099s.

=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
Every Year, KOI will file the annual Excise tax by April 15th 2026 electronically via dor.wa.gov and the Secure Access Washington (SAW) Account.

=== Washington State – Payroll ===

==== ESD Filing ====
After payroll is calculated and Unemployment withholdings are withheld, KOI will file an electronic return with ESD via the SAW account for the fiscal quarter. Funds will be sent to ESD electronically, or by paper check. The due date for the filings is the last day after the last fiscal quarter. It is recommended a csv is prepared well before the filing to make the filing easier. Instructions can be found on esd.wa.gov.

==== LnI (Labor and Industries) Filing ====
Before KOI begins withholding LnI withholdings, a Business Type Class must be designated for all workers, and the appropriate rate written down. These rates can be found on lni.wa.gov (Most likely 5308 - Community Action). The rate is multiplied by the amount of hours worked in a payroll period, and withheld from pay to be allocated in a payroll liability account. At the end of the quarter, the LnI return is filed by multiplying the total amount of payroll hours for the prior fiscal quarter by the LnI rate chosen. The return is due by the last day of the month following the fiscal quarter. The return is filed on lni.wa.gov, and it is recommended a CSV of the hours of the prior quarter be prepared ahead of time.

==== PFMLA Filing ====
KOI will need to determine what amount of the premiums will be paid by KOI, and what amount will be paid by the employee. Once those rates have been decided, the employer withholdings are expensed and put into a payroll tax liability, and the employee deductions are put into a payroll tax liability. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and PFMLA withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

==== WA Cares Filing ====
KOI will need to request if any employee wants to exempt themselves from WA Cares. The employee deductions are put into a payroll tax liability during every payroll. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and WA Cares withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

=== King County ===
No report currently required by King County.

=== City of Seattle ===
To remain compliant with the City of Seattle, KOI will file a business tax return with the City digitally via [https://www.filelocal-wa.gov/ File Local] .This report is due at the end of April of every year.

KOI Financial Policies and Procedures

2026-08-11T16:02:58Z

JoshFreese: /* Materiality */

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with audits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===
'''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs

'''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month

'''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).

'''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)

'''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.

'''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.

'''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.

'''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.

'''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its name, it is a good thing to have a going concern.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Duties ===
Separation of Duites (sometimes called segregation of duties) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three duties in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
The most dangerous duty to have combined with another is authorization.

Finance Comrades forbidden from holding authorization duties. Bank Signatories are forbidden from holding record-keeping duties.

=== Materiality ===

==== Materiality for evacuee expenses ====
Materiality will determine the amount of scrutiny an evacuee expense incurs. A set amount will be determined and referable by the Finance Committee. There can be multiple scales of materiality for an evacuee expense.

The lowest on the materiality threshhold will involve the following:

* The least amount of authorizers needed.
* The least amount of documnetation
* The least amount of natural consequences in cases of misappropriation.

The highest amount of materiality will involve the following:

* Clearest enforcement of Internal Controls
* Concise recording of authorization, and authorizors.
* Contracts if needed.
* The clearest understanding of natural consequences when it comes to misappropriation and fraud.

If there is a prohibited transaction for an evacuee, there will be no materiality threshold and scrutiny will be in place.

==== Materiality for non-evacuee expenses ====
Materiality will determine the amount of scrutiny an non-expense incurs. A set amount will be determined and referable by the Finance Committee. There can be multiple scales of materiality for an evacuee expense.

The lowest on the materiality threshhold will involve the following:

* The least amount of authorizers needed.
* The least amount of documnetation
* The detail in a Journal Entry Workpaper
* The least amount of natural consequences in cases of misappropriation.

The highest amount of materiality will involve the following:

* Clearest enforcement of Internal Controls
* Concise recording of authorization, and authorizors.
* Contracts if needed.
* Highest detail required for a Journal Entry workpaper.
* The clearest understanding of natural consequences when it comes to misappropriation and fraud.

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using more appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
* Using funds from a restricted fund for expenses not allowed by said restricted fund.
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===
The accounting system used by KOI must contain the following functionalities:

* User and Audit Logs of Logins, and transaction modifications.
* Transaction Recording
* Financial Statement Reporting
*Journal Entry Logging
*Bank Reconciliation
*User Management
The Accounting system should only be completely accessible by KOI Volunteers who have record keeping privileges (Finance Comrades and the Board Treasurer). No one with signatory powers should be able to reconcile bank statements and record transactions in the accounting software. Read only accounts are highly suggested for those on the board and those with signatory powers.

Xero is the Accounting System used by KOI.

=== Fundraising Systems ===
Fundraising systems should be utilized to log the donor transactions for KOI. They should:

* Log the donor who donated
* Log the donation date
* Log the fund donated to.

Ideally, such systems should also accept donations easily and electronically.

Donation systems might contain donor information such as bank information and credit card numbers. It is important to protect this data and ensure only folks with need to know privileges have access to said systems.

Donations need to curated when received to ensure no fund restrictions are in place.

==== Zeffy ====
Zeffy is the primary donation platform for KOI. Individuals who wish to donate directly to KOI are referred to our Zeffy link.

Zeffy donations include the following, and more:

* The donor name
* The restriction of the donation (if any)
*The donation method
*The cadence of the donation
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account
Exports of donations can be done via the zeffy web portal. Such exports should be kept with KOI as backup documentation of the purpose of the donation,and the donor.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Zeffy system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

==== Benevity ====
Benevity is KOI's main workplace donation platform. Employees can ask their employer to have paycheck deductions

Benevity donations can include the following, and more:

*The donor name
* The restriction of the donation (if any)
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account

In addition, Benevity can also collect corporate matches for their employee's donations.

The matching donations can include:

*The matching organization
* The restriction of the donation (if any)
*The date of the donation
*The employee the donation is matching
*The date deposited in KOI's bank account

It is important to record such information for record keeping purposes.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Benevity system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

To access Benevity, the account must have a Mutli-Factor Authentication feature turned on. Currently, that MFA feature is SMS only.

=== Office Applications - Google Drive ===
Google Drive, sometimes called Google Docs, is a cloud based application that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)
* Presentation Slides (Called Slides)

In addition, the google drive can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for primary document retention, budgeting, and other finance tasks that are required.

Due to the current political climate, and the possible capitulation of Google with a hostile government, it is recommended only primary documents that do not contain volunteer/evacuee names be stored on Google Drive.

=== Office Applications - Cryptpad ===
Cryptpad is a cloud based application environment that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)

In addition, cryptpad can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for retention of documents that contain sensitive information such as Bank Statements, Evacuee names, payroll records, etc.

=== Communication - Element/Matrix ===
The Finance Committee communicates needs, issues, task delegations, meeting times, etc. via the KOI Matrix Server with the Client Element. There is a Finance Committee channel where all of the Finance Comrades and the Board Treasurer communicate. The channel is also open to any other KOI volunteer, and it is encouraged other KOI volunteers join to provide oversight on the KOI Finance Committee.

Expenses are brought to the entire KOI volunteer organization for review. Emoji reacts do not count as approval or veto'ing of an expense. Approval via Matrix does not count as approval of expenses for legal reasons.

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash account will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

==== Evacuee Expense Authorization ====
Expenses that require authorization must have:

* The name of the KOI volunteer that approved the expense.
* The name of the KOI Volunteer that proposed the expense
* The date of the approval

A KOI Volunteer cannot approve their own expense.

Expenses that do not require authorization are either budgeted to include documentation only, or are a re-occurring expense that has pre-authorization to occur.

Those with record-keeping, or custody, powers cannot authorize an expense.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary option such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the account.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
KOI will retain copies of every compliant, audit, and/or government filing and keep it organized in case there are any need to refer to past filings.

=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
The 990 is the annual filing with the IRS as a non-profit. The deadline for such filings is May 15th, or October 15th (if an extension was filed).

To file a 990, the prior year's financials must be completed and closed (meaning, no modifications allowed). Ideally, the financial statements would be audited if required for a grant.

To file a 990, the following pieces of information is required:

* List of Board of Directors
* Compensated Directors
* Major Donors
* An end of year Income Statement for the prior year.
* A end of year Balance sheet statement for the prior year.
* A list of expenses per Management, Programs, and Fundraising.

The 990-N is the annual filing KOI can file in place of the 990 if certain requirements are met. KOI currently doesn't meet those requirements, and it will unlikely be able to due to the financial obligations of supporting evacuees.

==== Payroll Filings 940 and 941 ====
If KOI were to ever have payroll, regular payroll filings would need to be filed. During payroll, employee deductions for Unemployment Insurance (UI or FUTA) would be held in a liability account. The 940 report would need to be filed before the end of the month following the end of the prior quarter.

During payroll, employee deductions for federal withholding, social security, and medicare would be held in a liability account. At the same time, employer contributions to social security and medicare will be expensed and held in a liability account. At the end of the month after the quarter ends KOI will pay the aggregate totals reported in a 941 form to the IRS.

If it works better for KOI, a deposit system can be used to keep on top of the payroll liabilities through the quarter.

==== Annual W-2's and W-3s ====
If there were payroll in a calendar year, the W-2s and W-3s are due at the end of January of the following year. The W-3 will contain the aggregate information for all of the boxes of the W-2s filed for the year. Ideally, this is filed electronically.

==== Annual 1099's and 1096's ====
If there are payments to Non-employee contractors (individuals, sole proprietorship) or Single member LLC's, KOI must collect a W-9 from said vendor if the aggregate amounts paid for the year meet, exceed, or will exceed $600.00. KOI will then file the 1099's by the end of January following the year, along with a 1096 that will consolidate all of the payments of the 1099s.

=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
Every Year, KOI will file the annual Excise tax by April 15th 2026 electronically via dor.wa.gov and the Secure Access Washington (SAW) Account.

=== Washington State – Payroll ===

==== ESD Filing ====
After payroll is calculated and Unemployment withholdings are withheld, KOI will file an electronic return with ESD via the SAW account for the fiscal quarter. Funds will be sent to ESD electronically, or by paper check. The due date for the filings is the last day after the last fiscal quarter. It is recommended a csv is prepared well before the filing to make the filing easier. Instructions can be found on esd.wa.gov.

==== LnI (Labor and Industries) Filing ====
Before KOI begins withholding LnI withholdings, a Business Type Class must be designated for all workers, and the appropriate rate written down. These rates can be found on lni.wa.gov (Most likely 5308 - Community Action). The rate is multiplied by the amount of hours worked in a payroll period, and withheld from pay to be allocated in a payroll liability account. At the end of the quarter, the LnI return is filed by multiplying the total amount of payroll hours for the prior fiscal quarter by the LnI rate chosen. The return is due by the last day of the month following the fiscal quarter. The return is filed on lni.wa.gov, and it is recommended a CSV of the hours of the prior quarter be prepared ahead of time.

==== PFMLA Filing ====
KOI will need to determine what amount of the premiums will be paid by KOI, and what amount will be paid by the employee. Once those rates have been decided, the employer withholdings are expensed and put into a payroll tax liability, and the employee deductions are put into a payroll tax liability. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and PFMLA withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

==== WA Cares Filing ====
KOI will need to request if any employee wants to exempt themselves from WA Cares. The employee deductions are put into a payroll tax liability during every payroll. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and WA Cares withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

=== King County ===
No report currently required by King County.

=== City of Seattle ===
To remain compliant with the City of Seattle, KOI will file a business tax return with the City digitally via [https://www.filelocal-wa.gov/ File Local] .This report is due at the end of April of every year.

KOI Financial Policies and Procedures

2026-08-10T04:09:18Z

JoshFreese: /* All Organization Financial Policy */ Added Materiality steps.

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with audits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===
'''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs

'''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month

'''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).

'''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)

'''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.

'''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.

'''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.

'''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.

'''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its name, it is a good thing to have a going concern.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Duties ===
Separation of Duites (sometimes called segregation of duties) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three duties in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
The most dangerous duty to have combined with another is authorization.

Finance Comrades forbidden from holding authorization duties. Bank Signatories are forbidden from holding record-keeping duties.

=== '''Materiality''' ===

==== Materiality for evacuee expenses ====
Materiality will determine the amount of scrutiny an evacuee expense incurs. A set amount will be determined and referable by the Finance Committee. There can be multiple scales of materiality for an evacuee expense.

The lowest on the materiality threshhold will involve the following:

* The least amount of authorizers needed.
* The least amount of documnetation
* The least amount of natural consequences in cases of misappropriation.

The highest amount of materiality will involve the following:

* Clearest enforcement of Internal Controls
* Concise recording of authorization, and authorizors.
* Contracts if needed.
* The clearest understanding of natural consequences when it comes to misappropriation and fraud.

If there is a prohibited transaction for an evacuee, there will be no materiality threshold and scrutiny will be in place.

==== Materiality for non-evacuee expenses ====
Materiality will determine the amount of scrutiny an non-expense incurs. A set amount will be determined and referable by the Finance Committee. There can be multiple scales of materiality for an evacuee expense.

The lowest on the materiality threshhold will involve the following:

* The least amount of authorizers needed.
* The least amount of documnetation
* The detail in a Journal Entry Workpaper
* The least amount of natural consequences in cases of misappropriation.

The highest amount of materiality will involve the following:

* Clearest enforcement of Internal Controls
* Concise recording of authorization, and authorizors.
* Contracts if needed.
* Highest detail required for a Journal Entry workpaper.
* The clearest understanding of natural consequences when it comes to misappropriation and fraud.

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using more appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
* Using funds from a restricted fund for expenses not allowed by said restricted fund.
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===
The accounting system used by KOI must contain the following functionalities:

* User and Audit Logs of Logins, and transaction modifications.
* Transaction Recording
* Financial Statement Reporting
*Journal Entry Logging
*Bank Reconciliation
*User Management
The Accounting system should only be completely accessible by KOI Volunteers who have record keeping privileges (Finance Comrades and the Board Treasurer). No one with signatory powers should be able to reconcile bank statements and record transactions in the accounting software. Read only accounts are highly suggested for those on the board and those with signatory powers.

Xero is the Accounting System used by KOI.

=== Fundraising Systems ===
Fundraising systems should be utilized to log the donor transactions for KOI. They should:

* Log the donor who donated
* Log the donation date
* Log the fund donated to.

Ideally, such systems should also accept donations easily and electronically.

Donation systems might contain donor information such as bank information and credit card numbers. It is important to protect this data and ensure only folks with need to know privileges have access to said systems.

Donations need to curated when received to ensure no fund restrictions are in place.

==== Zeffy ====
Zeffy is the primary donation platform for KOI. Individuals who wish to donate directly to KOI are referred to our Zeffy link.

Zeffy donations include the following, and more:

* The donor name
* The restriction of the donation (if any)
*The donation method
*The cadence of the donation
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account
Exports of donations can be done via the zeffy web portal. Such exports should be kept with KOI as backup documentation of the purpose of the donation,and the donor.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Zeffy system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

==== Benevity ====
Benevity is KOI's main workplace donation platform. Employees can ask their employer to have paycheck deductions

Benevity donations can include the following, and more:

*The donor name
* The restriction of the donation (if any)
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account

In addition, Benevity can also collect corporate matches for their employee's donations.

The matching donations can include:

*The matching organization
* The restriction of the donation (if any)
*The date of the donation
*The employee the donation is matching
*The date deposited in KOI's bank account

It is important to record such information for record keeping purposes.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Benevity system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

To access Benevity, the account must have a Mutli-Factor Authentication feature turned on. Currently, that MFA feature is SMS only.

=== Office Applications - Google Drive ===
Google Drive, sometimes called Google Docs, is a cloud based application that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)
* Presentation Slides (Called Slides)

In addition, the google drive can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for primary document retention, budgeting, and other finance tasks that are required.

Due to the current political climate, and the possible capitulation of Google with a hostile government, it is recommended only primary documents that do not contain volunteer/evacuee names be stored on Google Drive.

=== Office Applications - Cryptpad ===
Cryptpad is a cloud based application environment that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)

In addition, cryptpad can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for retention of documents that contain sensitive information such as Bank Statements, Evacuee names, payroll records, etc.

=== Communication - Element/Matrix ===
The Finance Committee communicates needs, issues, task delegations, meeting times, etc. via the KOI Matrix Server with the Client Element. There is a Finance Committee channel where all of the Finance Comrades and the Board Treasurer communicate. The channel is also open to any other KOI volunteer, and it is encouraged other KOI volunteers join to provide oversight on the KOI Finance Committee.

Expenses are brought to the entire KOI volunteer organization for review. Emoji reacts do not count as approval or veto'ing of an expense. Approval via Matrix does not count as approval of expenses for legal reasons.

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash account will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

==== Evacuee Expense Authorization ====
Expenses that require authorization must have:

* The name of the KOI volunteer that approved the expense.
* The name of the KOI Volunteer that proposed the expense
* The date of the approval

A KOI Volunteer cannot approve their own expense.

Expenses that do not require authorization are either budgeted to include documentation only, or are a re-occurring expense that has pre-authorization to occur.

Those with record-keeping, or custody, powers cannot authorize an expense.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary option such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the account.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
KOI will retain copies of every compliant, audit, and/or government filing and keep it organized in case there are any need to refer to past filings.

=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
The 990 is the annual filing with the IRS as a non-profit. The deadline for such filings is May 15th, or October 15th (if an extension was filed).

To file a 990, the prior year's financials must be completed and closed (meaning, no modifications allowed). Ideally, the financial statements would be audited if required for a grant.

To file a 990, the following pieces of information is required:

* List of Board of Directors
* Compensated Directors
* Major Donors
* An end of year Income Statement for the prior year.
* A end of year Balance sheet statement for the prior year.
* A list of expenses per Management, Programs, and Fundraising.

The 990-N is the annual filing KOI can file in place of the 990 if certain requirements are met. KOI currently doesn't meet those requirements, and it will unlikely be able to due to the financial obligations of supporting evacuees.

==== Payroll Filings 940 and 941 ====
If KOI were to ever have payroll, regular payroll filings would need to be filed. During payroll, employee deductions for Unemployment Insurance (UI or FUTA) would be held in a liability account. The 940 report would need to be filed before the end of the month following the end of the prior quarter.

During payroll, employee deductions for federal withholding, social security, and medicare would be held in a liability account. At the same time, employer contributions to social security and medicare will be expensed and held in a liability account. At the end of the month after the quarter ends KOI will pay the aggregate totals reported in a 941 form to the IRS.

If it works better for KOI, a deposit system can be used to keep on top of the payroll liabilities through the quarter.

==== Annual W-2's and W-3s ====
If there were payroll in a calendar year, the W-2s and W-3s are due at the end of January of the following year. The W-3 will contain the aggregate information for all of the boxes of the W-2s filed for the year. Ideally, this is filed electronically.

==== Annual 1099's and 1096's ====
If there are payments to Non-employee contractors (individuals, sole proprietorship) or Single member LLC's, KOI must collect a W-9 from said vendor if the aggregate amounts paid for the year meet, exceed, or will exceed $600.00. KOI will then file the 1099's by the end of January following the year, along with a 1096 that will consolidate all of the payments of the 1099s.

=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
Every Year, KOI will file the annual Excise tax by April 15th 2026 electronically via dor.wa.gov and the Secure Access Washington (SAW) Account.

=== Washington State – Payroll ===

==== ESD Filing ====
After payroll is calculated and Unemployment withholdings are withheld, KOI will file an electronic return with ESD via the SAW account for the fiscal quarter. Funds will be sent to ESD electronically, or by paper check. The due date for the filings is the last day after the last fiscal quarter. It is recommended a csv is prepared well before the filing to make the filing easier. Instructions can be found on esd.wa.gov.

==== LnI (Labor and Industries) Filing ====
Before KOI begins withholding LnI withholdings, a Business Type Class must be designated for all workers, and the appropriate rate written down. These rates can be found on lni.wa.gov (Most likely 5308 - Community Action). The rate is multiplied by the amount of hours worked in a payroll period, and withheld from pay to be allocated in a payroll liability account. At the end of the quarter, the LnI return is filed by multiplying the total amount of payroll hours for the prior fiscal quarter by the LnI rate chosen. The return is due by the last day of the month following the fiscal quarter. The return is filed on lni.wa.gov, and it is recommended a CSV of the hours of the prior quarter be prepared ahead of time.

==== PFMLA Filing ====
KOI will need to determine what amount of the premiums will be paid by KOI, and what amount will be paid by the employee. Once those rates have been decided, the employer withholdings are expensed and put into a payroll tax liability, and the employee deductions are put into a payroll tax liability. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and PFMLA withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

==== WA Cares Filing ====
KOI will need to request if any employee wants to exempt themselves from WA Cares. The employee deductions are put into a payroll tax liability during every payroll. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and WA Cares withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

=== King County ===
No report currently required by King County.

=== City of Seattle ===
To remain compliant with the City of Seattle, KOI will file a business tax return with the City digitally via [https://www.filelocal-wa.gov/ File Local] .This report is due at the end of April of every year.

KOI Financial Policies and Procedures

2026-08-10T03:40:56Z

JoshFreese: /* Evacuee Expenses */ Added in documentation for Evacuee Expense Authorization

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with audits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===
'''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs

'''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month

'''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).

'''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)

'''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.

'''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.

'''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.

'''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.

'''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its name, it is a good thing to have a going concern.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Powers ===
Separation of powers (sometimes called segregation of powers) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three powers in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
* '''Materiality'''
** Materiality for evacuee expenses
** Materiality for non-evacuee expenses

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using more appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
* Using funds from a restricted fund for expenses not allowed by said restricted fund.
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===
The accounting system used by KOI must contain the following functionalities:

* User and Audit Logs of Logins, and transaction modifications.
* Transaction Recording
* Financial Statement Reporting
*Journal Entry Logging
*Bank Reconciliation
*User Management
The Accounting system should only be completely accessible by KOI Volunteers who have record keeping privileges (Finance Comrades and the Board Treasurer). No one with signatory powers should be able to reconcile bank statements and record transactions in the accounting software. Read only accounts are highly suggested for those on the board and those with signatory powers.

Xero is the Accounting System used by KOI.

=== Fundraising Systems ===
Fundraising systems should be utilized to log the donor transactions for KOI. They should:

* Log the donor who donated
* Log the donation date
* Log the fund donated to.

Ideally, such systems should also accept donations easily and electronically.

Donation systems might contain donor information such as bank information and credit card numbers. It is important to protect this data and ensure only folks with need to know privileges have access to said systems.

Donations need to curated when received to ensure no fund restrictions are in place.

==== Zeffy ====
Zeffy is the primary donation platform for KOI. Individuals who wish to donate directly to KOI are referred to our Zeffy link.

Zeffy donations include the following, and more:

* The donor name
* The restriction of the donation (if any)
*The donation method
*The cadence of the donation
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account
Exports of donations can be done via the zeffy web portal. Such exports should be kept with KOI as backup documentation of the purpose of the donation,and the donor.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Zeffy system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

==== Benevity ====
Benevity is KOI's main workplace donation platform. Employees can ask their employer to have paycheck deductions

Benevity donations can include the following, and more:

*The donor name
* The restriction of the donation (if any)
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account

In addition, Benevity can also collect corporate matches for their employee's donations.

The matching donations can include:

*The matching organization
* The restriction of the donation (if any)
*The date of the donation
*The employee the donation is matching
*The date deposited in KOI's bank account

It is important to record such information for record keeping purposes.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Benevity system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

To access Benevity, the account must have a Mutli-Factor Authentication feature turned on. Currently, that MFA feature is SMS only.

=== Office Applications - Google Drive ===
Google Drive, sometimes called Google Docs, is a cloud based application that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)
* Presentation Slides (Called Slides)

In addition, the google drive can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for primary document retention, budgeting, and other finance tasks that are required.

Due to the current political climate, and the possible capitulation of Google with a hostile government, it is recommended only primary documents that do not contain volunteer/evacuee names be stored on Google Drive.

=== Office Applications - Cryptpad ===
Cryptpad is a cloud based application environment that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)

In addition, cryptpad can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for retention of documents that contain sensitive information such as Bank Statements, Evacuee names, payroll records, etc.

=== Communication - Element/Matrix ===
The Finance Committee communicates needs, issues, task delegations, meeting times, etc. via the KOI Matrix Server with the Client Element. There is a Finance Committee channel where all of the Finance Comrades and the Board Treasurer communicate. The channel is also open to any other KOI volunteer, and it is encouraged other KOI volunteers join to provide oversight on the KOI Finance Committee.

Expenses are brought to the entire KOI volunteer organization for review. Emoji reacts do not count as approval or veto'ing of an expense. Approval via Matrix does not count as approval of expenses for legal reasons.

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash account will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

==== Evacuee Expense Authorization ====
Expenses that require authorization must have:

* The name of the KOI volunteer that approved the expense.
* The name of the KOI Volunteer that proposed the expense
* The date of the approval

A KOI Volunteer cannot approve their own expense.

Expenses that do not require authorization are either budgeted to include documentation only, or are a re-occurring expense that has pre-authorization to occur.

Those with record-keeping, or custody, powers cannot authorize an expense.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary option such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the account.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
KOI will retain copies of every compliant, audit, and/or government filing and keep it organized in case there are any need to refer to past filings.

=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
The 990 is the annual filing with the IRS as a non-profit. The deadline for such filings is May 15th, or October 15th (if an extension was filed).

To file a 990, the prior year's financials must be completed and closed (meaning, no modifications allowed). Ideally, the financial statements would be audited if required for a grant.

To file a 990, the following pieces of information is required:

* List of Board of Directors
* Compensated Directors
* Major Donors
* An end of year Income Statement for the prior year.
* A end of year Balance sheet statement for the prior year.
* A list of expenses per Management, Programs, and Fundraising.

The 990-N is the annual filing KOI can file in place of the 990 if certain requirements are met. KOI currently doesn't meet those requirements, and it will unlikely be able to due to the financial obligations of supporting evacuees.

==== Payroll Filings 940 and 941 ====
If KOI were to ever have payroll, regular payroll filings would need to be filed. During payroll, employee deductions for Unemployment Insurance (UI or FUTA) would be held in a liability account. The 940 report would need to be filed before the end of the month following the end of the prior quarter.

During payroll, employee deductions for federal withholding, social security, and medicare would be held in a liability account. At the same time, employer contributions to social security and medicare will be expensed and held in a liability account. At the end of the month after the quarter ends KOI will pay the aggregate totals reported in a 941 form to the IRS.

If it works better for KOI, a deposit system can be used to keep on top of the payroll liabilities through the quarter.

==== Annual W-2's and W-3s ====
If there were payroll in a calendar year, the W-2s and W-3s are due at the end of January of the following year. The W-3 will contain the aggregate information for all of the boxes of the W-2s filed for the year. Ideally, this is filed electronically.

==== Annual 1099's and 1096's ====
If there are payments to Non-employee contractors (individuals, sole proprietorship) or Single member LLC's, KOI must collect a W-9 from said vendor if the aggregate amounts paid for the year meet, exceed, or will exceed $600.00. KOI will then file the 1099's by the end of January following the year, along with a 1096 that will consolidate all of the payments of the 1099s.

=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
Every Year, KOI will file the annual Excise tax by April 15th 2026 electronically via dor.wa.gov and the Secure Access Washington (SAW) Account.

=== Washington State – Payroll ===

==== ESD Filing ====
After payroll is calculated and Unemployment withholdings are withheld, KOI will file an electronic return with ESD via the SAW account for the fiscal quarter. Funds will be sent to ESD electronically, or by paper check. The due date for the filings is the last day after the last fiscal quarter. It is recommended a csv is prepared well before the filing to make the filing easier. Instructions can be found on esd.wa.gov.

==== LnI (Labor and Industries) Filing ====
Before KOI begins withholding LnI withholdings, a Business Type Class must be designated for all workers, and the appropriate rate written down. These rates can be found on lni.wa.gov (Most likely 5308 - Community Action). The rate is multiplied by the amount of hours worked in a payroll period, and withheld from pay to be allocated in a payroll liability account. At the end of the quarter, the LnI return is filed by multiplying the total amount of payroll hours for the prior fiscal quarter by the LnI rate chosen. The return is due by the last day of the month following the fiscal quarter. The return is filed on lni.wa.gov, and it is recommended a CSV of the hours of the prior quarter be prepared ahead of time.

==== PFMLA Filing ====
KOI will need to determine what amount of the premiums will be paid by KOI, and what amount will be paid by the employee. Once those rates have been decided, the employer withholdings are expensed and put into a payroll tax liability, and the employee deductions are put into a payroll tax liability. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and PFMLA withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

==== WA Cares Filing ====
KOI will need to request if any employee wants to exempt themselves from WA Cares. The employee deductions are put into a payroll tax liability during every payroll. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and WA Cares withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

=== King County ===
No report currently required by King County.

=== City of Seattle ===
To remain compliant with the City of Seattle, KOI will file a business tax return with the City digitally via [https://www.filelocal-wa.gov/ File Local] .This report is due at the end of April of every year.

KOI Financial Policies and Procedures

2026-08-10T03:05:17Z

JoshFreese: /* Petty Cash Handling */

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with audits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===
'''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs

'''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month

'''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).

'''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)

'''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.

'''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.

'''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.

'''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.

'''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its name, it is a good thing to have a going concern.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Powers ===
Separation of powers (sometimes called segregation of powers) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three powers in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
* '''Materiality'''
** Materiality for evacuee expenses
** Materiality for non-evacuee expenses

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using more appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
* Using funds from a restricted fund for expenses not allowed by said restricted fund.
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===
The accounting system used by KOI must contain the following functionalities:

* User and Audit Logs of Logins, and transaction modifications.
* Transaction Recording
* Financial Statement Reporting
*Journal Entry Logging
*Bank Reconciliation
*User Management
The Accounting system should only be completely accessible by KOI Volunteers who have record keeping privileges (Finance Comrades and the Board Treasurer). No one with signatory powers should be able to reconcile bank statements and record transactions in the accounting software. Read only accounts are highly suggested for those on the board and those with signatory powers.

Xero is the Accounting System used by KOI.

=== Fundraising Systems ===
Fundraising systems should be utilized to log the donor transactions for KOI. They should:

* Log the donor who donated
* Log the donation date
* Log the fund donated to.

Ideally, such systems should also accept donations easily and electronically.

Donation systems might contain donor information such as bank information and credit card numbers. It is important to protect this data and ensure only folks with need to know privileges have access to said systems.

Donations need to curated when received to ensure no fund restrictions are in place.

==== Zeffy ====
Zeffy is the primary donation platform for KOI. Individuals who wish to donate directly to KOI are referred to our Zeffy link.

Zeffy donations include the following, and more:

* The donor name
* The restriction of the donation (if any)
*The donation method
*The cadence of the donation
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account
Exports of donations can be done via the zeffy web portal. Such exports should be kept with KOI as backup documentation of the purpose of the donation,and the donor.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Zeffy system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

==== Benevity ====
Benevity is KOI's main workplace donation platform. Employees can ask their employer to have paycheck deductions

Benevity donations can include the following, and more:

*The donor name
* The restriction of the donation (if any)
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account

In addition, Benevity can also collect corporate matches for their employee's donations.

The matching donations can include:

*The matching organization
* The restriction of the donation (if any)
*The date of the donation
*The employee the donation is matching
*The date deposited in KOI's bank account

It is important to record such information for record keeping purposes.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Benevity system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

To access Benevity, the account must have a Mutli-Factor Authentication feature turned on. Currently, that MFA feature is SMS only.

=== Office Applications - Google Drive ===
Google Drive, sometimes called Google Docs, is a cloud based application that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)
* Presentation Slides (Called Slides)

In addition, the google drive can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for primary document retention, budgeting, and other finance tasks that are required.

Due to the current political climate, and the possible capitulation of Google with a hostile government, it is recommended only primary documents that do not contain volunteer/evacuee names be stored on Google Drive.

=== Office Applications - Cryptpad ===
Cryptpad is a cloud based application environment that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)

In addition, cryptpad can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for retention of documents that contain sensitive information such as Bank Statements, Evacuee names, payroll records, etc.

=== Communication - Element/Matrix ===
The Finance Committee communicates needs, issues, task delegations, meeting times, etc. via the KOI Matrix Server with the Client Element. There is a Finance Committee channel where all of the Finance Comrades and the Board Treasurer communicate. The channel is also open to any other KOI volunteer, and it is encouraged other KOI volunteers join to provide oversight on the KOI Finance Committee.

Expenses are brought to the entire KOI volunteer organization for review. Emoji reacts do not count as approval or veto'ing of an expense. Approval via Matrix does not count as approval of expenses for legal reasons.

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash account will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary option such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the account.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
KOI will retain copies of every compliant, audit, and/or government filing and keep it organized in case there are any need to refer to past filings.

=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
The 990 is the annual filing with the IRS as a non-profit. The deadline for such filings is May 15th, or October 15th (if an extension was filed).

To file a 990, the prior year's financials must be completed and closed (meaning, no modifications allowed). Ideally, the financial statements would be audited if required for a grant.

To file a 990, the following pieces of information is required:

* List of Board of Directors
* Compensated Directors
* Major Donors
* An end of year Income Statement for the prior year.
* A end of year Balance sheet statement for the prior year.
* A list of expenses per Management, Programs, and Fundraising.

The 990-N is the annual filing KOI can file in place of the 990 if certain requirements are met. KOI currently doesn't meet those requirements, and it will unlikely be able to due to the financial obligations of supporting evacuees.

==== Payroll Filings 940 and 941 ====
If KOI were to ever have payroll, regular payroll filings would need to be filed. During payroll, employee deductions for Unemployment Insurance (UI or FUTA) would be held in a liability account. The 940 report would need to be filed before the end of the month following the end of the prior quarter.

During payroll, employee deductions for federal withholding, social security, and medicare would be held in a liability account. At the same time, employer contributions to social security and medicare will be expensed and held in a liability account. At the end of the month after the quarter ends KOI will pay the aggregate totals reported in a 941 form to the IRS.

If it works better for KOI, a deposit system can be used to keep on top of the payroll liabilities through the quarter.

==== Annual W-2's and W-3s ====
If there were payroll in a calendar year, the W-2s and W-3s are due at the end of January of the following year. The W-3 will contain the aggregate information for all of the boxes of the W-2s filed for the year. Ideally, this is filed electronically.

==== Annual 1099's and 1096's ====
If there are payments to Non-employee contractors (individuals, sole proprietorship) or Single member LLC's, KOI must collect a W-9 from said vendor if the aggregate amounts paid for the year meet, exceed, or will exceed $600.00. KOI will then file the 1099's by the end of January following the year, along with a 1096 that will consolidate all of the payments of the 1099s.

=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
Every Year, KOI will file the annual Excise tax by April 15th 2026 electronically via dor.wa.gov and the Secure Access Washington (SAW) Account.

=== Washington State – Payroll ===

==== ESD Filing ====
After payroll is calculated and Unemployment withholdings are withheld, KOI will file an electronic return with ESD via the SAW account for the fiscal quarter. Funds will be sent to ESD electronically, or by paper check. The due date for the filings is the last day after the last fiscal quarter. It is recommended a csv is prepared well before the filing to make the filing easier. Instructions can be found on esd.wa.gov.

==== LnI (Labor and Industries) Filing ====
Before KOI begins withholding LnI withholdings, a Business Type Class must be designated for all workers, and the appropriate rate written down. These rates can be found on lni.wa.gov (Most likely 5308 - Community Action). The rate is multiplied by the amount of hours worked in a payroll period, and withheld from pay to be allocated in a payroll liability account. At the end of the quarter, the LnI return is filed by multiplying the total amount of payroll hours for the prior fiscal quarter by the LnI rate chosen. The return is due by the last day of the month following the fiscal quarter. The return is filed on lni.wa.gov, and it is recommended a CSV of the hours of the prior quarter be prepared ahead of time.

==== PFMLA Filing ====
KOI will need to determine what amount of the premiums will be paid by KOI, and what amount will be paid by the employee. Once those rates have been decided, the employer withholdings are expensed and put into a payroll tax liability, and the employee deductions are put into a payroll tax liability. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and PFMLA withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

==== WA Cares Filing ====
KOI will need to request if any employee wants to exempt themselves from WA Cares. The employee deductions are put into a payroll tax liability during every payroll. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and WA Cares withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

=== King County ===
No report currently required by King County.

=== City of Seattle ===
To remain compliant with the City of Seattle, KOI will file a business tax return with the City digitally via [https://www.filelocal-wa.gov/ File Local] .This report is due at the end of April of every year.

KOI Financial Policies and Procedures

2026-08-10T02:58:04Z

JoshFreese: /* Accounting/Finance Definitions */

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with audits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===
'''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs

'''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month

'''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).

'''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)

'''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.

'''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.

'''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.

'''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.

'''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its name, it is a good thing to have a going concern.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Powers ===
Separation of powers (sometimes called segregation of powers) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three powers in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
* '''Materiality'''
** Materiality for evacuee expenses
** Materiality for non-evacuee expenses

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using more appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
* Using funds from a restricted fund for expenses not allowed by said restricted fund.
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===
The accounting system used by KOI must contain the following functionalities:

* User and Audit Logs of Logins, and transaction modifications.
* Transaction Recording
* Financial Statement Reporting
*Journal Entry Logging
*Bank Reconciliation
*User Management
The Accounting system should only be completely accessible by KOI Volunteers who have record keeping privileges (Finance Comrades and the Board Treasurer). No one with signatory powers should be able to reconcile bank statements and record transactions in the accounting software. Read only accounts are highly suggested for those on the board and those with signatory powers.

Xero is the Accounting System used by KOI.

=== Fundraising Systems ===
Fundraising systems should be utilized to log the donor transactions for KOI. They should:

* Log the donor who donated
* Log the donation date
* Log the fund donated to.

Ideally, such systems should also accept donations easily and electronically.

Donation systems might contain donor information such as bank information and credit card numbers. It is important to protect this data and ensure only folks with need to know privileges have access to said systems.

Donations need to curated when received to ensure no fund restrictions are in place.

==== Zeffy ====
Zeffy is the primary donation platform for KOI. Individuals who wish to donate directly to KOI are referred to our Zeffy link.

Zeffy donations include the following, and more:

* The donor name
* The restriction of the donation (if any)
*The donation method
*The cadence of the donation
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account
Exports of donations can be done via the zeffy web portal. Such exports should be kept with KOI as backup documentation of the purpose of the donation,and the donor.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Zeffy system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

==== Benevity ====
Benevity is KOI's main workplace donation platform. Employees can ask their employer to have paycheck deductions

Benevity donations can include the following, and more:

*The donor name
* The restriction of the donation (if any)
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account

In addition, Benevity can also collect corporate matches for their employee's donations.

The matching donations can include:

*The matching organization
* The restriction of the donation (if any)
*The date of the donation
*The employee the donation is matching
*The date deposited in KOI's bank account

It is important to record such information for record keeping purposes.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Benevity system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

To access Benevity, the account must have a Mutli-Factor Authentication feature turned on. Currently, that MFA feature is SMS only.

=== Office Applications - Google Drive ===
Google Drive, sometimes called Google Docs, is a cloud based application that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)
* Presentation Slides (Called Slides)

In addition, the google drive can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for primary document retention, budgeting, and other finance tasks that are required.

Due to the current political climate, and the possible capitulation of Google with a hostile government, it is recommended only primary documents that do not contain volunteer/evacuee names be stored on Google Drive.

=== Office Applications - Cryptpad ===
Cryptpad is a cloud based application environment that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)

In addition, cryptpad can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for retention of documents that contain sensitive information such as Bank Statements, Evacuee names, payroll records, etc.

=== Communication - Element/Matrix ===
The Finance Committee communicates needs, issues, task delegations, meeting times, etc. via the KOI Matrix Server with the Client Element. There is a Finance Committee channel where all of the Finance Comrades and the Board Treasurer communicate. The channel is also open to any other KOI volunteer, and it is encouraged other KOI volunteers join to provide oversight on the KOI Finance Committee.

Expenses are brought to the entire KOI volunteer organization for review. Emoji reacts do not count as approval or veto'ing of an expense. Approval via Matrix does not count as approval of expenses for legal reasons.

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash fund will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary option such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the account.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
KOI will retain copies of every compliant, audit, and/or government filing and keep it organized in case there are any need to refer to past filings.

=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
The 990 is the annual filing with the IRS as a non-profit. The deadline for such filings is May 15th, or October 15th (if an extension was filed).

To file a 990, the prior year's financials must be completed and closed (meaning, no modifications allowed). Ideally, the financial statements would be audited if required for a grant.

To file a 990, the following pieces of information is required:

* List of Board of Directors
* Compensated Directors
* Major Donors
* An end of year Income Statement for the prior year.
* A end of year Balance sheet statement for the prior year.
* A list of expenses per Management, Programs, and Fundraising.

The 990-N is the annual filing KOI can file in place of the 990 if certain requirements are met. KOI currently doesn't meet those requirements, and it will unlikely be able to due to the financial obligations of supporting evacuees.

==== Payroll Filings 940 and 941 ====
If KOI were to ever have payroll, regular payroll filings would need to be filed. During payroll, employee deductions for Unemployment Insurance (UI or FUTA) would be held in a liability account. The 940 report would need to be filed before the end of the month following the end of the prior quarter.

During payroll, employee deductions for federal withholding, social security, and medicare would be held in a liability account. At the same time, employer contributions to social security and medicare will be expensed and held in a liability account. At the end of the month after the quarter ends KOI will pay the aggregate totals reported in a 941 form to the IRS.

If it works better for KOI, a deposit system can be used to keep on top of the payroll liabilities through the quarter.

==== Annual W-2's and W-3s ====
If there were payroll in a calendar year, the W-2s and W-3s are due at the end of January of the following year. The W-3 will contain the aggregate information for all of the boxes of the W-2s filed for the year. Ideally, this is filed electronically.

==== Annual 1099's and 1096's ====
If there are payments to Non-employee contractors (individuals, sole proprietorship) or Single member LLC's, KOI must collect a W-9 from said vendor if the aggregate amounts paid for the year meet, exceed, or will exceed $600.00. KOI will then file the 1099's by the end of January following the year, along with a 1096 that will consolidate all of the payments of the 1099s.

=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
Every Year, KOI will file the annual Excise tax by April 15th 2026 electronically via dor.wa.gov and the Secure Access Washington (SAW) Account.

=== Washington State – Payroll ===

==== ESD Filing ====
After payroll is calculated and Unemployment withholdings are withheld, KOI will file an electronic return with ESD via the SAW account for the fiscal quarter. Funds will be sent to ESD electronically, or by paper check. The due date for the filings is the last day after the last fiscal quarter. It is recommended a csv is prepared well before the filing to make the filing easier. Instructions can be found on esd.wa.gov.

==== LnI (Labor and Industries) Filing ====
Before KOI begins withholding LnI withholdings, a Business Type Class must be designated for all workers, and the appropriate rate written down. These rates can be found on lni.wa.gov (Most likely 5308 - Community Action). The rate is multiplied by the amount of hours worked in a payroll period, and withheld from pay to be allocated in a payroll liability account. At the end of the quarter, the LnI return is filed by multiplying the total amount of payroll hours for the prior fiscal quarter by the LnI rate chosen. The return is due by the last day of the month following the fiscal quarter. The return is filed on lni.wa.gov, and it is recommended a CSV of the hours of the prior quarter be prepared ahead of time.

==== PFMLA Filing ====
KOI will need to determine what amount of the premiums will be paid by KOI, and what amount will be paid by the employee. Once those rates have been decided, the employer withholdings are expensed and put into a payroll tax liability, and the employee deductions are put into a payroll tax liability. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and PFMLA withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

==== WA Cares Filing ====
KOI will need to request if any employee wants to exempt themselves from WA Cares. The employee deductions are put into a payroll tax liability during every payroll. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and WA Cares withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

=== King County ===
No report currently required by King County.

=== City of Seattle ===
To remain compliant with the City of Seattle, KOI will file a business tax return with the City digitally via [https://www.filelocal-wa.gov/ File Local] .This report is due at the end of April of every year.

KOI Financial Policies and Procedures

2026-08-10T02:55:26Z

JoshFreese: /* Actors */

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with audits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===
'''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs

'''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month

'''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).

'''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)

'''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.

'''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.

'''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.

'''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.

'''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its description, it is a good thing.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Powers ===
Separation of powers (sometimes called segregation of powers) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three powers in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
* '''Materiality'''
** Materiality for evacuee expenses
** Materiality for non-evacuee expenses

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using more appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
* Using funds from a restricted fund for expenses not allowed by said restricted fund.
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===
The accounting system used by KOI must contain the following functionalities:

* User and Audit Logs of Logins, and transaction modifications.
* Transaction Recording
* Financial Statement Reporting
*Journal Entry Logging
*Bank Reconciliation
*User Management
The Accounting system should only be completely accessible by KOI Volunteers who have record keeping privileges (Finance Comrades and the Board Treasurer). No one with signatory powers should be able to reconcile bank statements and record transactions in the accounting software. Read only accounts are highly suggested for those on the board and those with signatory powers.

Xero is the Accounting System used by KOI.

=== Fundraising Systems ===
Fundraising systems should be utilized to log the donor transactions for KOI. They should:

* Log the donor who donated
* Log the donation date
* Log the fund donated to.

Ideally, such systems should also accept donations easily and electronically.

Donation systems might contain donor information such as bank information and credit card numbers. It is important to protect this data and ensure only folks with need to know privileges have access to said systems.

Donations need to curated when received to ensure no fund restrictions are in place.

==== Zeffy ====
Zeffy is the primary donation platform for KOI. Individuals who wish to donate directly to KOI are referred to our Zeffy link.

Zeffy donations include the following, and more:

* The donor name
* The restriction of the donation (if any)
*The donation method
*The cadence of the donation
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account
Exports of donations can be done via the zeffy web portal. Such exports should be kept with KOI as backup documentation of the purpose of the donation,and the donor.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Zeffy system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

==== Benevity ====
Benevity is KOI's main workplace donation platform. Employees can ask their employer to have paycheck deductions

Benevity donations can include the following, and more:

*The donor name
* The restriction of the donation (if any)
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account

In addition, Benevity can also collect corporate matches for their employee's donations.

The matching donations can include:

*The matching organization
* The restriction of the donation (if any)
*The date of the donation
*The employee the donation is matching
*The date deposited in KOI's bank account

It is important to record such information for record keeping purposes.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Benevity system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

To access Benevity, the account must have a Mutli-Factor Authentication feature turned on. Currently, that MFA feature is SMS only.

=== Office Applications - Google Drive ===
Google Drive, sometimes called Google Docs, is a cloud based application that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)
* Presentation Slides (Called Slides)

In addition, the google drive can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for primary document retention, budgeting, and other finance tasks that are required.

Due to the current political climate, and the possible capitulation of Google with a hostile government, it is recommended only primary documents that do not contain volunteer/evacuee names be stored on Google Drive.

=== Office Applications - Cryptpad ===
Cryptpad is a cloud based application environment that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)

In addition, cryptpad can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for retention of documents that contain sensitive information such as Bank Statements, Evacuee names, payroll records, etc.

=== Communication - Element/Matrix ===
The Finance Committee communicates needs, issues, task delegations, meeting times, etc. via the KOI Matrix Server with the Client Element. There is a Finance Committee channel where all of the Finance Comrades and the Board Treasurer communicate. The channel is also open to any other KOI volunteer, and it is encouraged other KOI volunteers join to provide oversight on the KOI Finance Committee.

Expenses are brought to the entire KOI volunteer organization for review. Emoji reacts do not count as approval or veto'ing of an expense. Approval via Matrix does not count as approval of expenses for legal reasons.

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash fund will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary option such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the account.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
KOI will retain copies of every compliant, audit, and/or government filing and keep it organized in case there are any need to refer to past filings.

=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
The 990 is the annual filing with the IRS as a non-profit. The deadline for such filings is May 15th, or October 15th (if an extension was filed).

To file a 990, the prior year's financials must be completed and closed (meaning, no modifications allowed). Ideally, the financial statements would be audited if required for a grant.

To file a 990, the following pieces of information is required:

* List of Board of Directors
* Compensated Directors
* Major Donors
* An end of year Income Statement for the prior year.
* A end of year Balance sheet statement for the prior year.
* A list of expenses per Management, Programs, and Fundraising.

The 990-N is the annual filing KOI can file in place of the 990 if certain requirements are met. KOI currently doesn't meet those requirements, and it will unlikely be able to due to the financial obligations of supporting evacuees.

==== Payroll Filings 940 and 941 ====
If KOI were to ever have payroll, regular payroll filings would need to be filed. During payroll, employee deductions for Unemployment Insurance (UI or FUTA) would be held in a liability account. The 940 report would need to be filed before the end of the month following the end of the prior quarter.

During payroll, employee deductions for federal withholding, social security, and medicare would be held in a liability account. At the same time, employer contributions to social security and medicare will be expensed and held in a liability account. At the end of the month after the quarter ends KOI will pay the aggregate totals reported in a 941 form to the IRS.

If it works better for KOI, a deposit system can be used to keep on top of the payroll liabilities through the quarter.

==== Annual W-2's and W-3s ====
If there were payroll in a calendar year, the W-2s and W-3s are due at the end of January of the following year. The W-3 will contain the aggregate information for all of the boxes of the W-2s filed for the year. Ideally, this is filed electronically.

==== Annual 1099's and 1096's ====
If there are payments to Non-employee contractors (individuals, sole proprietorship) or Single member LLC's, KOI must collect a W-9 from said vendor if the aggregate amounts paid for the year meet, exceed, or will exceed $600.00. KOI will then file the 1099's by the end of January following the year, along with a 1096 that will consolidate all of the payments of the 1099s.

=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
Every Year, KOI will file the annual Excise tax by April 15th 2026 electronically via dor.wa.gov and the Secure Access Washington (SAW) Account.

=== Washington State – Payroll ===

==== ESD Filing ====
After payroll is calculated and Unemployment withholdings are withheld, KOI will file an electronic return with ESD via the SAW account for the fiscal quarter. Funds will be sent to ESD electronically, or by paper check. The due date for the filings is the last day after the last fiscal quarter. It is recommended a csv is prepared well before the filing to make the filing easier. Instructions can be found on esd.wa.gov.

==== LnI (Labor and Industries) Filing ====
Before KOI begins withholding LnI withholdings, a Business Type Class must be designated for all workers, and the appropriate rate written down. These rates can be found on lni.wa.gov (Most likely 5308 - Community Action). The rate is multiplied by the amount of hours worked in a payroll period, and withheld from pay to be allocated in a payroll liability account. At the end of the quarter, the LnI return is filed by multiplying the total amount of payroll hours for the prior fiscal quarter by the LnI rate chosen. The return is due by the last day of the month following the fiscal quarter. The return is filed on lni.wa.gov, and it is recommended a CSV of the hours of the prior quarter be prepared ahead of time.

==== PFMLA Filing ====
KOI will need to determine what amount of the premiums will be paid by KOI, and what amount will be paid by the employee. Once those rates have been decided, the employer withholdings are expensed and put into a payroll tax liability, and the employee deductions are put into a payroll tax liability. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and PFMLA withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

==== WA Cares Filing ====
KOI will need to request if any employee wants to exempt themselves from WA Cares. The employee deductions are put into a payroll tax liability during every payroll. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and WA Cares withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

=== King County ===
No report currently required by King County.

=== City of Seattle ===
To remain compliant with the City of Seattle, KOI will file a business tax return with the City digitally via [https://www.filelocal-wa.gov/ File Local] .This report is due at the end of April of every year.

KOI Financial Policies and Procedures

2026-08-10T02:46:02Z

JoshFreese: /* Communication - Element/Matrix */ Added some basic documentation for matrix.

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with audits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===

* '''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs
* '''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month
* '''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).
* '''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)
* '''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.
* '''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.
* '''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.
* '''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.
* '''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its description, it is a good thing.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Powers ===
Separation of powers (sometimes called segregation of powers) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three powers in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
* '''Materiality'''
** Materiality for evacuee expenses
** Materiality for non-evacuee expenses

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using more appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
* Using funds from a restricted fund for expenses not allowed by said restricted fund.
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===
The accounting system used by KOI must contain the following functionalities:

* User and Audit Logs of Logins, and transaction modifications.
* Transaction Recording
* Financial Statement Reporting
*Journal Entry Logging
*Bank Reconciliation
*User Management
The Accounting system should only be completely accessible by KOI Volunteers who have record keeping privileges (Finance Comrades and the Board Treasurer). No one with signatory powers should be able to reconcile bank statements and record transactions in the accounting software. Read only accounts are highly suggested for those on the board and those with signatory powers.

Xero is the Accounting System used by KOI.

=== Fundraising Systems ===
Fundraising systems should be utilized to log the donor transactions for KOI. They should:

* Log the donor who donated
* Log the donation date
* Log the fund donated to.

Ideally, such systems should also accept donations easily and electronically.

Donation systems might contain donor information such as bank information and credit card numbers. It is important to protect this data and ensure only folks with need to know privileges have access to said systems.

Donations need to curated when received to ensure no fund restrictions are in place.

==== Zeffy ====
Zeffy is the primary donation platform for KOI. Individuals who wish to donate directly to KOI are referred to our Zeffy link.

Zeffy donations include the following, and more:

* The donor name
* The restriction of the donation (if any)
*The donation method
*The cadence of the donation
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account
Exports of donations can be done via the zeffy web portal. Such exports should be kept with KOI as backup documentation of the purpose of the donation,and the donor.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Zeffy system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

==== Benevity ====
Benevity is KOI's main workplace donation platform. Employees can ask their employer to have paycheck deductions

Benevity donations can include the following, and more:

*The donor name
* The restriction of the donation (if any)
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account

In addition, Benevity can also collect corporate matches for their employee's donations.

The matching donations can include:

*The matching organization
* The restriction of the donation (if any)
*The date of the donation
*The employee the donation is matching
*The date deposited in KOI's bank account

It is important to record such information for record keeping purposes.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Benevity system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

To access Benevity, the account must have a Mutli-Factor Authentication feature turned on. Currently, that MFA feature is SMS only.

=== Office Applications - Google Drive ===
Google Drive, sometimes called Google Docs, is a cloud based application that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)
* Presentation Slides (Called Slides)

In addition, the google drive can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for primary document retention, budgeting, and other finance tasks that are required.

Due to the current political climate, and the possible capitulation of Google with a hostile government, it is recommended only primary documents that do not contain volunteer/evacuee names be stored on Google Drive.

=== Office Applications - Cryptpad ===
Cryptpad is a cloud based application environment that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)

In addition, cryptpad can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for retention of documents that contain sensitive information such as Bank Statements, Evacuee names, payroll records, etc.

=== Communication - Element/Matrix ===
The Finance Committee communicates needs, issues, task delegations, meeting times, etc. via the KOI Matrix Server with the Client Element. There is a Finance Committee channel where all of the Finance Comrades and the Board Treasurer communicate. The channel is also open to any other KOI volunteer, and it is encouraged other KOI volunteers join to provide oversight on the KOI Finance Committee.

Expenses are brought to the entire KOI volunteer organization for review. Emoji reacts do not count as approval or veto'ing of an expense. Approval via Matrix does not count as approval of expenses for legal reasons.

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash fund will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary option such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the account.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
KOI will retain copies of every compliant, audit, and/or government filing and keep it organized in case there are any need to refer to past filings.

=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
The 990 is the annual filing with the IRS as a non-profit. The deadline for such filings is May 15th, or October 15th (if an extension was filed).

To file a 990, the prior year's financials must be completed and closed (meaning, no modifications allowed). Ideally, the financial statements would be audited if required for a grant.

To file a 990, the following pieces of information is required:

* List of Board of Directors
* Compensated Directors
* Major Donors
* An end of year Income Statement for the prior year.
* A end of year Balance sheet statement for the prior year.
* A list of expenses per Management, Programs, and Fundraising.

The 990-N is the annual filing KOI can file in place of the 990 if certain requirements are met. KOI currently doesn't meet those requirements, and it will unlikely be able to due to the financial obligations of supporting evacuees.

==== Payroll Filings 940 and 941 ====
If KOI were to ever have payroll, regular payroll filings would need to be filed. During payroll, employee deductions for Unemployment Insurance (UI or FUTA) would be held in a liability account. The 940 report would need to be filed before the end of the month following the end of the prior quarter.

During payroll, employee deductions for federal withholding, social security, and medicare would be held in a liability account. At the same time, employer contributions to social security and medicare will be expensed and held in a liability account. At the end of the month after the quarter ends KOI will pay the aggregate totals reported in a 941 form to the IRS.

If it works better for KOI, a deposit system can be used to keep on top of the payroll liabilities through the quarter.

==== Annual W-2's and W-3s ====
If there were payroll in a calendar year, the W-2s and W-3s are due at the end of January of the following year. The W-3 will contain the aggregate information for all of the boxes of the W-2s filed for the year. Ideally, this is filed electronically.

==== Annual 1099's and 1096's ====
If there are payments to Non-employee contractors (individuals, sole proprietorship) or Single member LLC's, KOI must collect a W-9 from said vendor if the aggregate amounts paid for the year meet, exceed, or will exceed $600.00. KOI will then file the 1099's by the end of January following the year, along with a 1096 that will consolidate all of the payments of the 1099s.

=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
Every Year, KOI will file the annual Excise tax by April 15th 2026 electronically via dor.wa.gov and the Secure Access Washington (SAW) Account.

=== Washington State – Payroll ===

==== ESD Filing ====
After payroll is calculated and Unemployment withholdings are withheld, KOI will file an electronic return with ESD via the SAW account for the fiscal quarter. Funds will be sent to ESD electronically, or by paper check. The due date for the filings is the last day after the last fiscal quarter. It is recommended a csv is prepared well before the filing to make the filing easier. Instructions can be found on esd.wa.gov.

==== LnI (Labor and Industries) Filing ====
Before KOI begins withholding LnI withholdings, a Business Type Class must be designated for all workers, and the appropriate rate written down. These rates can be found on lni.wa.gov (Most likely 5308 - Community Action). The rate is multiplied by the amount of hours worked in a payroll period, and withheld from pay to be allocated in a payroll liability account. At the end of the quarter, the LnI return is filed by multiplying the total amount of payroll hours for the prior fiscal quarter by the LnI rate chosen. The return is due by the last day of the month following the fiscal quarter. The return is filed on lni.wa.gov, and it is recommended a CSV of the hours of the prior quarter be prepared ahead of time.

==== PFMLA Filing ====
KOI will need to determine what amount of the premiums will be paid by KOI, and what amount will be paid by the employee. Once those rates have been decided, the employer withholdings are expensed and put into a payroll tax liability, and the employee deductions are put into a payroll tax liability. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and PFMLA withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

==== WA Cares Filing ====
KOI will need to request if any employee wants to exempt themselves from WA Cares. The employee deductions are put into a payroll tax liability during every payroll. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and WA Cares withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

=== King County ===
No report currently required by King County.

=== City of Seattle ===
To remain compliant with the City of Seattle, KOI will file a business tax return with the City digitally via [https://www.filelocal-wa.gov/ File Local] .This report is due at the end of April of every year.

KOI Financial Policies and Procedures

2026-08-10T02:36:35Z

JoshFreese: /* Office Applications - Google Docs */ Added some basic context to the office applications.

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with audits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===

* '''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs
* '''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month
* '''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).
* '''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)
* '''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.
* '''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.
* '''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.
* '''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.
* '''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its description, it is a good thing.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Powers ===
Separation of powers (sometimes called segregation of powers) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three powers in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
* '''Materiality'''
** Materiality for evacuee expenses
** Materiality for non-evacuee expenses

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using more appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
* Using funds from a restricted fund for expenses not allowed by said restricted fund.
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===
The accounting system used by KOI must contain the following functionalities:

* User and Audit Logs of Logins, and transaction modifications.
* Transaction Recording
* Financial Statement Reporting
*Journal Entry Logging
*Bank Reconciliation
*User Management
The Accounting system should only be completely accessible by KOI Volunteers who have record keeping privileges (Finance Comrades and the Board Treasurer). No one with signatory powers should be able to reconcile bank statements and record transactions in the accounting software. Read only accounts are highly suggested for those on the board and those with signatory powers.

Xero is the Accounting System used by KOI.

=== Fundraising Systems ===
Fundraising systems should be utilized to log the donor transactions for KOI. They should:

* Log the donor who donated
* Log the donation date
* Log the fund donated to.

Ideally, such systems should also accept donations easily and electronically.

Donation systems might contain donor information such as bank information and credit card numbers. It is important to protect this data and ensure only folks with need to know privileges have access to said systems.

Donations need to curated when received to ensure no fund restrictions are in place.

==== Zeffy ====
Zeffy is the primary donation platform for KOI. Individuals who wish to donate directly to KOI are referred to our Zeffy link.

Zeffy donations include the following, and more:

* The donor name
* The restriction of the donation (if any)
*The donation method
*The cadence of the donation
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account
Exports of donations can be done via the zeffy web portal. Such exports should be kept with KOI as backup documentation of the purpose of the donation,and the donor.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Zeffy system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

==== Benevity ====
Benevity is KOI's main workplace donation platform. Employees can ask their employer to have paycheck deductions

Benevity donations can include the following, and more:

*The donor name
* The restriction of the donation (if any)
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account

In addition, Benevity can also collect corporate matches for their employee's donations.

The matching donations can include:

*The matching organization
* The restriction of the donation (if any)
*The date of the donation
*The employee the donation is matching
*The date deposited in KOI's bank account

It is important to record such information for record keeping purposes.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Benevity system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

To access Benevity, the account must have a Mutli-Factor Authentication feature turned on. Currently, that MFA feature is SMS only.

=== Office Applications - Google Drive ===
Google Drive, sometimes called Google Docs, is a cloud based application that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)
* Presentation Slides (Called Slides)

In addition, the google drive can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for primary document retention, budgeting, and other finance tasks that are required.

Due to the current political climate, and the possible capitulation of Google with a hostile government, it is recommended only primary documents that do not contain volunteer/evacuee names be stored on Google Drive.

=== Office Applications - Cryptpad ===
Cryptpad is a cloud based application environment that features the following office applications:

* Rich Text Editing (Sometimes called Word)
* Multi-cell spreadsheet (Called Sheets)

In addition, cryptpad can host pdfs and other documents in a cloud based environment. Documents can be shared with anybody who wants access, and they can be shared with only a few KOI members.

The Finance Committee will use Google Drive for retention of documents that contain sensitive information such as Bank Statements, Evacuee names, payroll records, etc.

=== Communication - Element/Matrix ===

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash fund will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary option such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the account.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
KOI will retain copies of every compliant, audit, and/or government filing and keep it organized in case there are any need to refer to past filings.

=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
The 990 is the annual filing with the IRS as a non-profit. The deadline for such filings is May 15th, or October 15th (if an extension was filed).

To file a 990, the prior year's financials must be completed and closed (meaning, no modifications allowed). Ideally, the financial statements would be audited if required for a grant.

To file a 990, the following pieces of information is required:

* List of Board of Directors
* Compensated Directors
* Major Donors
* An end of year Income Statement for the prior year.
* A end of year Balance sheet statement for the prior year.
* A list of expenses per Management, Programs, and Fundraising.

The 990-N is the annual filing KOI can file in place of the 990 if certain requirements are met. KOI currently doesn't meet those requirements, and it will unlikely be able to due to the financial obligations of supporting evacuees.

==== Payroll Filings 940 and 941 ====
If KOI were to ever have payroll, regular payroll filings would need to be filed. During payroll, employee deductions for Unemployment Insurance (UI or FUTA) would be held in a liability account. The 940 report would need to be filed before the end of the month following the end of the prior quarter.

During payroll, employee deductions for federal withholding, social security, and medicare would be held in a liability account. At the same time, employer contributions to social security and medicare will be expensed and held in a liability account. At the end of the month after the quarter ends KOI will pay the aggregate totals reported in a 941 form to the IRS.

If it works better for KOI, a deposit system can be used to keep on top of the payroll liabilities through the quarter.

==== Annual W-2's and W-3s ====
If there were payroll in a calendar year, the W-2s and W-3s are due at the end of January of the following year. The W-3 will contain the aggregate information for all of the boxes of the W-2s filed for the year. Ideally, this is filed electronically.

==== Annual 1099's and 1096's ====
If there are payments to Non-employee contractors (individuals, sole proprietorship) or Single member LLC's, KOI must collect a W-9 from said vendor if the aggregate amounts paid for the year meet, exceed, or will exceed $600.00. KOI will then file the 1099's by the end of January following the year, along with a 1096 that will consolidate all of the payments of the 1099s.

=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
Every Year, KOI will file the annual Excise tax by April 15th 2026 electronically via dor.wa.gov and the Secure Access Washington (SAW) Account.

=== Washington State – Payroll ===

==== ESD Filing ====
After payroll is calculated and Unemployment withholdings are withheld, KOI will file an electronic return with ESD via the SAW account for the fiscal quarter. Funds will be sent to ESD electronically, or by paper check. The due date for the filings is the last day after the last fiscal quarter. It is recommended a csv is prepared well before the filing to make the filing easier. Instructions can be found on esd.wa.gov.

==== LnI (Labor and Industries) Filing ====
Before KOI begins withholding LnI withholdings, a Business Type Class must be designated for all workers, and the appropriate rate written down. These rates can be found on lni.wa.gov (Most likely 5308 - Community Action). The rate is multiplied by the amount of hours worked in a payroll period, and withheld from pay to be allocated in a payroll liability account. At the end of the quarter, the LnI return is filed by multiplying the total amount of payroll hours for the prior fiscal quarter by the LnI rate chosen. The return is due by the last day of the month following the fiscal quarter. The return is filed on lni.wa.gov, and it is recommended a CSV of the hours of the prior quarter be prepared ahead of time.

==== PFMLA Filing ====
KOI will need to determine what amount of the premiums will be paid by KOI, and what amount will be paid by the employee. Once those rates have been decided, the employer withholdings are expensed and put into a payroll tax liability, and the employee deductions are put into a payroll tax liability. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and PFMLA withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

==== WA Cares Filing ====
KOI will need to request if any employee wants to exempt themselves from WA Cares. The employee deductions are put into a payroll tax liability during every payroll. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and WA Cares withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

=== King County ===
No report currently required by King County.

=== City of Seattle ===
To remain compliant with the City of Seattle, KOI will file a business tax return with the City digitally via [https://www.filelocal-wa.gov/ File Local] .This report is due at the end of April of every year.

KOI Financial Policies and Procedures

2026-08-10T02:06:00Z

JoshFreese: /* Systems, Application and Information Security */ Added details regarding the Zeffy and Benevity systems used.

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with audits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===

* '''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs
* '''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month
* '''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).
* '''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)
* '''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.
* '''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.
* '''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.
* '''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.
* '''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its description, it is a good thing.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Powers ===
Separation of powers (sometimes called segregation of powers) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three powers in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
* '''Materiality'''
** Materiality for evacuee expenses
** Materiality for non-evacuee expenses

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using more appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
* Using funds from a restricted fund for expenses not allowed by said restricted fund.
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===
The accounting system used by KOI must contain the following functionalities:

* User and Audit Logs of Logins, and transaction modifications.
* Transaction Recording
* Financial Statement Reporting
*Journal Entry Logging
*Bank Reconciliation
*User Management
The Accounting system should only be completely accessible by KOI Volunteers who have record keeping privileges (Finance Comrades and the Board Treasurer). No one with signatory powers should be able to reconcile bank statements and record transactions in the accounting software. Read only accounts are highly suggested for those on the board and those with signatory powers.

Xero is the Accounting System used by KOI.

=== Fundraising Systems ===
Fundraising systems should be utilized to log the donor transactions for KOI. They should:

* Log the donor who donated
* Log the donation date
* Log the fund donated to.

Ideally, such systems should also accept donations easily and electronically.

Donation systems might contain donor information such as bank information and credit card numbers. It is important to protect this data and ensure only folks with need to know privileges have access to said systems.

Donations need to curated when received to ensure no fund restrictions are in place.

==== Zeffy ====
Zeffy is the primary donation platform for KOI. Individuals who wish to donate directly to KOI are referred to our Zeffy link.

Zeffy donations include the following, and more:

* The donor name
* The restriction of the donation (if any)
*The donation method
*The cadence of the donation
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account
Exports of donations can be done via the zeffy web portal. Such exports should be kept with KOI as backup documentation of the purpose of the donation,and the donor.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Zeffy system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

==== Benevity ====
Benevity is KOI's main workplace donation platform. Employees can ask their employer to have paycheck deductions

Benevity donations can include the following, and more:

*The donor name
* The restriction of the donation (if any)
*The date of the donation
*The donation referral
*The date deposited in KOI's bank account

In addition, Benevity can also collect corporate matches for their employee's donations.

The matching donations can include:

*The matching organization
* The restriction of the donation (if any)
*The date of the donation
*The employee the donation is matching
*The date deposited in KOI's bank account

It is important to record such information for record keeping purposes.

Finance Comrades, the Board Treasurer, and anyone with development tasks are allowed to use the Benevity system and see exports. However, due to the confidential nature of the donations, only those with a completed background check can access zeffy. This requirement will always supersede general KOI policies.

To access Benevity, the account must have a Mutli-Factor Authentication feature turned on. Currently, that MFA feature is SMS only.

=== Office Applications - Google Docs ===

=== Office Applications - Cryptpad ===

=== Communication - Element/Matrix ===

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash fund will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary option such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the account.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
KOI will retain copies of every compliant, audit, and/or government filing and keep it organized in case there are any need to refer to past filings.

=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
The 990 is the annual filing with the IRS as a non-profit. The deadline for such filings is May 15th, or October 15th (if an extension was filed).

To file a 990, the prior year's financials must be completed and closed (meaning, no modifications allowed). Ideally, the financial statements would be audited if required for a grant.

To file a 990, the following pieces of information is required:

* List of Board of Directors
* Compensated Directors
* Major Donors
* An end of year Income Statement for the prior year.
* A end of year Balance sheet statement for the prior year.
* A list of expenses per Management, Programs, and Fundraising.

The 990-N is the annual filing KOI can file in place of the 990 if certain requirements are met. KOI currently doesn't meet those requirements, and it will unlikely be able to due to the financial obligations of supporting evacuees.

==== Payroll Filings 940 and 941 ====
If KOI were to ever have payroll, regular payroll filings would need to be filed. During payroll, employee deductions for Unemployment Insurance (UI or FUTA) would be held in a liability account. The 940 report would need to be filed before the end of the month following the end of the prior quarter.

During payroll, employee deductions for federal withholding, social security, and medicare would be held in a liability account. At the same time, employer contributions to social security and medicare will be expensed and held in a liability account. At the end of the month after the quarter ends KOI will pay the aggregate totals reported in a 941 form to the IRS.

If it works better for KOI, a deposit system can be used to keep on top of the payroll liabilities through the quarter.

==== Annual W-2's and W-3s ====
If there were payroll in a calendar year, the W-2s and W-3s are due at the end of January of the following year. The W-3 will contain the aggregate information for all of the boxes of the W-2s filed for the year. Ideally, this is filed electronically.

==== Annual 1099's and 1096's ====
If there are payments to Non-employee contractors (individuals, sole proprietorship) or Single member LLC's, KOI must collect a W-9 from said vendor if the aggregate amounts paid for the year meet, exceed, or will exceed $600.00. KOI will then file the 1099's by the end of January following the year, along with a 1096 that will consolidate all of the payments of the 1099s.

=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
Every Year, KOI will file the annual Excise tax by April 15th 2026 electronically via dor.wa.gov and the Secure Access Washington (SAW) Account.

=== Washington State – Payroll ===

==== ESD Filing ====
After payroll is calculated and Unemployment withholdings are withheld, KOI will file an electronic return with ESD via the SAW account for the fiscal quarter. Funds will be sent to ESD electronically, or by paper check. The due date for the filings is the last day after the last fiscal quarter. It is recommended a csv is prepared well before the filing to make the filing easier. Instructions can be found on esd.wa.gov.

==== LnI (Labor and Industries) Filing ====
Before KOI begins withholding LnI withholdings, a Business Type Class must be designated for all workers, and the appropriate rate written down. These rates can be found on lni.wa.gov (Most likely 5308 - Community Action). The rate is multiplied by the amount of hours worked in a payroll period, and withheld from pay to be allocated in a payroll liability account. At the end of the quarter, the LnI return is filed by multiplying the total amount of payroll hours for the prior fiscal quarter by the LnI rate chosen. The return is due by the last day of the month following the fiscal quarter. The return is filed on lni.wa.gov, and it is recommended a CSV of the hours of the prior quarter be prepared ahead of time.

==== PFMLA Filing ====
KOI will need to determine what amount of the premiums will be paid by KOI, and what amount will be paid by the employee. Once those rates have been decided, the employer withholdings are expensed and put into a payroll tax liability, and the employee deductions are put into a payroll tax liability. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and PFMLA withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

==== WA Cares Filing ====
KOI will need to request if any employee wants to exempt themselves from WA Cares. The employee deductions are put into a payroll tax liability during every payroll. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and WA Cares withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

=== King County ===
No report currently required by King County.

=== City of Seattle ===
To remain compliant with the City of Seattle, KOI will file a business tax return with the City digitally via [https://www.filelocal-wa.gov/ File Local] .This report is due at the end of April of every year.

KOI Financial Policies and Procedures

2026-08-07T19:55:16Z

JoshFreese: /* Accounting System - Xero */ Finished up xero stuff, then started working on Zeffy stuff.

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with audits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===

* '''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs
* '''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month
* '''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).
* '''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)
* '''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.
* '''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.
* '''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.
* '''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.
* '''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its description, it is a good thing.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Powers ===
Separation of powers (sometimes called segregation of powers) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three powers in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
* '''Materiality'''
** Materiality for evacuee expenses
** Materiality for non-evacuee expenses

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using more appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
* Using funds from a restricted fund for expenses not allowed by said restricted fund.
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===
The accounting system used by KOI must contain the following functionalities:

* User and Audit Logs of Logins, and transaction modifications.
* Transaction Recording
* Financial Statement Reporting
*Journal Entry Logging
*Bank Reconciliation
*User Management
The Accounting system should only be completely accessible by KOI Volunteers who have record keeping privileges (Finance Comrades and the Board Treasurer). No one with signatory powers should be able to reconcile bank statements and record transactions in the accounting software. Read only accounts are highly suggested for those on the board and those with signatory powers.

Xero is the Accounting System used by KOI.

=== Fundraising Systems ===
Fundraising systems should be utilized to log the donor transactions for KOI. They should:

* Log the donor who donated
* Log the donation date
* Log the fund donated to.

Ideally, such systems should also accept donations easily and electronically.

Donation systems might contain donor information such as bank information and credit card numbers. It is important to protect this data and ensure only folks with need to know privileges have access to said systems.

==== Zeffy ====
Zeffy is the primary donation platform for KOI. Individuals who wish to donate directly to KOI are referred to our Zeffy link.

Zeffy donations include:

* The donor name
* The restriction of the donation (if any)
*

==== Benevity ====

=== Office Applications - Google Docs ===

=== Office Applications - Cryptpad ===

=== Communication - Element/Matrix ===

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash fund will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary option such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the account.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
KOI will retain copies of every compliant, audit, and/or government filing and keep it organized in case there are any need to refer to past filings.

=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
The 990 is the annual filing with the IRS as a non-profit. The deadline for such filings is May 15th, or October 15th (if an extension was filed).

To file a 990, the prior year's financials must be completed and closed (meaning, no modifications allowed). Ideally, the financial statements would be audited if required for a grant.

To file a 990, the following pieces of information is required:

* List of Board of Directors
* Compensated Directors
* Major Donors
* An end of year Income Statement for the prior year.
* A end of year Balance sheet statement for the prior year.
* A list of expenses per Management, Programs, and Fundraising.

The 990-N is the annual filing KOI can file in place of the 990 if certain requirements are met. KOI currently doesn't meet those requirements, and it will unlikely be able to due to the financial obligations of supporting evacuees.

==== Payroll Filings 940 and 941 ====
If KOI were to ever have payroll, regular payroll filings would need to be filed. During payroll, employee deductions for Unemployment Insurance (UI or FUTA) would be held in a liability account. The 940 report would need to be filed before the end of the month following the end of the prior quarter.

During payroll, employee deductions for federal withholding, social security, and medicare would be held in a liability account. At the same time, employer contributions to social security and medicare will be expensed and held in a liability account. At the end of the month after the quarter ends KOI will pay the aggregate totals reported in a 941 form to the IRS.

If it works better for KOI, a deposit system can be used to keep on top of the payroll liabilities through the quarter.

==== Annual W-2's and W-3s ====
If there were payroll in a calendar year, the W-2s and W-3s are due at the end of January of the following year. The W-3 will contain the aggregate information for all of the boxes of the W-2s filed for the year. Ideally, this is filed electronically.

==== Annual 1099's and 1096's ====
If there are payments to Non-employee contractors (individuals, sole proprietorship) or Single member LLC's, KOI must collect a W-9 from said vendor if the aggregate amounts paid for the year meet, exceed, or will exceed $600.00. KOI will then file the 1099's by the end of January following the year, along with a 1096 that will consolidate all of the payments of the 1099s.

=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
Every Year, KOI will file the annual Excise tax by April 15th 2026 electronically via dor.wa.gov and the Secure Access Washington (SAW) Account.

=== Washington State – Payroll ===

==== ESD Filing ====
After payroll is calculated and Unemployment withholdings are withheld, KOI will file an electronic return with ESD via the SAW account for the fiscal quarter. Funds will be sent to ESD electronically, or by paper check. The due date for the filings is the last day after the last fiscal quarter. It is recommended a csv is prepared well before the filing to make the filing easier. Instructions can be found on esd.wa.gov.

==== LnI (Labor and Industries) Filing ====
Before KOI begins withholding LnI withholdings, a Business Type Class must be designated for all workers, and the appropriate rate written down. These rates can be found on lni.wa.gov (Most likely 5308 - Community Action). The rate is multiplied by the amount of hours worked in a payroll period, and withheld from pay to be allocated in a payroll liability account. At the end of the quarter, the LnI return is filed by multiplying the total amount of payroll hours for the prior fiscal quarter by the LnI rate chosen. The return is due by the last day of the month following the fiscal quarter. The return is filed on lni.wa.gov, and it is recommended a CSV of the hours of the prior quarter be prepared ahead of time.

==== PFMLA Filing ====
KOI will need to determine what amount of the premiums will be paid by KOI, and what amount will be paid by the employee. Once those rates have been decided, the employer withholdings are expensed and put into a payroll tax liability, and the employee deductions are put into a payroll tax liability. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and PFMLA withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

==== WA Cares Filing ====
KOI will need to request if any employee wants to exempt themselves from WA Cares. The employee deductions are put into a payroll tax liability during every payroll. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and WA Cares withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

=== King County ===
No report currently required by King County.

=== City of Seattle ===
To remain compliant with the City of Seattle, KOI will file a business tax return with the City digitally via [https://www.filelocal-wa.gov/ File Local] .This report is due at the end of April of every year.

KOI Financial Policies and Procedures

2026-08-07T18:48:59Z

JoshFreese: /* PFMLA Filing */ Added details to ESD filings, and started a bit on the accounting system.

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with audits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===

* '''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs
* '''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month
* '''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).
* '''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)
* '''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.
* '''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.
* '''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.
* '''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.
* '''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its description, it is a good thing.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Powers ===
Separation of powers (sometimes called segregation of powers) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three powers in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
* '''Materiality'''
** Materiality for evacuee expenses
** Materiality for non-evacuee expenses

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using more appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
* Using funds from a restricted fund for expenses not allowed by said restricted fund.
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===
The accounting system used by KOI must contain the following functionalities:

* User and Audit Logs of Logins, and transaction modifications.
* Transaction Recording
* Financial Statement Reporting
*

Xero is the Accounting System used by KOI.

=== Fundraising Systems ===

==== Zeffy ====

==== Benevity ====

=== Office Applications - Google Docs ===

=== Office Applications - Cryptpad ===

=== Communication - Element/Matrix ===

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash fund will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary option such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the account.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
KOI will retain copies of every compliant, audit, and/or government filing and keep it organized in case there are any need to refer to past filings.

=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
The 990 is the annual filing with the IRS as a non-profit. The deadline for such filings is May 15th, or October 15th (if an extension was filed).

To file a 990, the prior year's financials must be completed and closed (meaning, no modifications allowed). Ideally, the financial statements would be audited if required for a grant.

To file a 990, the following pieces of information is required:

* List of Board of Directors
* Compensated Directors
* Major Donors
* An end of year Income Statement for the prior year.
* A end of year Balance sheet statement for the prior year.
* A list of expenses per Management, Programs, and Fundraising.

The 990-N is the annual filing KOI can file in place of the 990 if certain requirements are met. KOI currently doesn't meet those requirements, and it will unlikely be able to due to the financial obligations of supporting evacuees.

==== Payroll Filings 940 and 941 ====
If KOI were to ever have payroll, regular payroll filings would need to be filed. During payroll, employee deductions for Unemployment Insurance (UI or FUTA) would be held in a liability account. The 940 report would need to be filed before the end of the month following the end of the prior quarter.

During payroll, employee deductions for federal withholding, social security, and medicare would be held in a liability account. At the same time, employer contributions to social security and medicare will be expensed and held in a liability account. At the end of the month after the quarter ends KOI will pay the aggregate totals reported in a 941 form to the IRS.

If it works better for KOI, a deposit system can be used to keep on top of the payroll liabilities through the quarter.

==== Annual W-2's and W-3s ====
If there were payroll in a calendar year, the W-2s and W-3s are due at the end of January of the following year. The W-3 will contain the aggregate information for all of the boxes of the W-2s filed for the year. Ideally, this is filed electronically.

==== Annual 1099's and 1096's ====
If there are payments to Non-employee contractors (individuals, sole proprietorship) or Single member LLC's, KOI must collect a W-9 from said vendor if the aggregate amounts paid for the year meet, exceed, or will exceed $600.00. KOI will then file the 1099's by the end of January following the year, along with a 1096 that will consolidate all of the payments of the 1099s.

=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
Every Year, KOI will file the annual Excise tax by April 15th 2026 electronically via dor.wa.gov and the Secure Access Washington (SAW) Account.

=== Washington State – Payroll ===

==== ESD Filing ====
After payroll is calculated and Unemployment withholdings are withheld, KOI will file an electronic return with ESD via the SAW account for the fiscal quarter. Funds will be sent to ESD electronically, or by paper check. The due date for the filings is the last day after the last fiscal quarter. It is recommended a csv is prepared well before the filing to make the filing easier. Instructions can be found on esd.wa.gov.

==== LnI (Labor and Industries) Filing ====
Before KOI begins withholding LnI withholdings, a Business Type Class must be designated for all workers, and the appropriate rate written down. These rates can be found on lni.wa.gov (Most likely 5308 - Community Action). The rate is multiplied by the amount of hours worked in a payroll period, and withheld from pay to be allocated in a payroll liability account. At the end of the quarter, the LnI return is filed by multiplying the total amount of payroll hours for the prior fiscal quarter by the LnI rate chosen. The return is due by the last day of the month following the fiscal quarter. The return is filed on lni.wa.gov, and it is recommended a CSV of the hours of the prior quarter be prepared ahead of time.

==== PFMLA Filing ====
KOI will need to determine what amount of the premiums will be paid by KOI, and what amount will be paid by the employee. Once those rates have been decided, the employer withholdings are expensed and put into a payroll tax liability, and the employee deductions are put into a payroll tax liability. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and PFMLA withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

==== WA Cares Filing ====
KOI will need to request if any employee wants to exempt themselves from WA Cares. The employee deductions are put into a payroll tax liability during every payroll. At the end of the month following the end of a fiscal quarter, a summary of hours, payroll wages, and WA Cares withholdings is submitted to ESD electronically through a SAW account. A payment is sent to ESD by check or ACH option on the SAW Account.

=== King County ===
No report currently required by King County.

=== City of Seattle ===
To remain compliant with the City of Seattle, KOI will file a business tax return with the City digitally via [https://www.filelocal-wa.gov/ File Local] .This report is due at the end of April of every year.

KOI Financial Policies and Procedures

2026-08-05T18:28:52Z

JoshFreese: /* Washington State – Department of Revenue B&O */ Added details for ESD and LNI Filings.

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with audits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===

* '''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs
* '''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month
* '''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).
* '''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)
* '''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.
* '''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.
* '''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.
* '''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.
* '''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its description, it is a good thing.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Powers ===
Separation of powers (sometimes called segregation of powers) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three powers in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
* '''Materiality'''
** Materiality for evacuee expenses
** Materiality for non-evacuee expenses

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using more appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
* Using funds from a restricted fund for expenses not allowed by said restricted fund.
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===

=== Fundraising Systems ===

==== Zeffy ====

==== Benevity ====

=== Office Applications - Google Docs ===

=== Office Applications - Cryptpad ===

=== Communication - Element/Matrix ===

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash fund will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary option such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the account.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
KOI will retain copies of every compliant, audit, and/or government filing and keep it organized in case there are any need to refer to past filings.

=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
The 990 is the annual filing with the IRS as a non-profit. The deadline for such filings is May 15th, or October 15th (if an extension was filed).

To file a 990, the prior year's financials must be completed and closed (meaning, no modifications allowed). Ideally, the financial statements would be audited if required for a grant.

To file a 990, the following pieces of information is required:

* List of Board of Directors
* Compensated Directors
* Major Donors
* An end of year Income Statement for the prior year.
* A end of year Balance sheet statement for the prior year.
* A list of expenses per Management, Programs, and Fundraising.

The 990-N is the annual filing KOI can file in place of the 990 if certain requirements are met. KOI currently doesn't meet those requirements, and it will unlikely be able to due to the financial obligations of supporting evacuees.

==== Payroll Filings 940 and 941 ====
If KOI were to ever have payroll, regular payroll filings would need to be filed. During payroll, employee deductions for Unemployment Insurance (UI or FUTA) would be held in a liability account. The 940 report would need to be filed before the end of the month following the end of the prior quarter.

During payroll, employee deductions for federal withholding, social security, and medicare would be held in a liability account. At the same time, employer contributions to social security and medicare will be expensed and held in a liability account. At the end of the month after the quarter ends KOI will pay the aggregate totals reported in a 941 form to the IRS.

If it works better for KOI, a deposit system can be used to keep on top of the payroll liabilities through the quarter.

==== Annual W-2's and W-3s ====
If there were payroll in a calendar year, the W-2s and W-3s are due at the end of January of the following year. The W-3 will contain the aggregate information for all of the boxes of the W-2s filed for the year. Ideally, this is filed electronically.

==== Annual 1099's and 1096's ====
If there are payments to Non-employee contractors (individuals, sole proprietorship) or Single member LLC's, KOI must collect a W-9 from said vendor if the aggregate amounts paid for the year meet, exceed, or will exceed $600.00. KOI will then file the 1099's by the end of January following the year, along with a 1096 that will consolidate all of the payments of the 1099s.

=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
Every Year, KOI will file the annual Excise tax by April 15th 2026 electronically via dor.wa.gov and the Secure Access Washington (SAW) Account.

=== Washington State – Payroll ===

==== ESD Filing ====
After payroll is calculated and Unemployment withholdings are withheld, KOI will file an electronic return with ESD via the SAW account for the fiscal quarter. Funds will be sent to ESD electronically, or by paper check. The due date for the filings is the last day after the last fiscal quarter. It is recommended a csv is prepared well before the filing to make the filing easier. Instructions can be found on esd.wa.gov.

==== LnI (Labor and Industries) Filing ====
Before KOI begins withholding LnI withholdings, a Business Type Class must be designated for all workers, and the appropriate rate written down. These rates can be found on lni.wa.gov (Most likely 5308 - Community Action). The rate is multiplied by the amount of hours worked in a payroll period, and withheld from pay to be allocated in a payroll liability account. At the end of the quarter, the LnI return is filed by multiplying the total amount of payroll hours for the prior fiscal quarter by the LnI rate chosen. The return is due by the last day of the month following the fiscal quarter. The return is filed on lni.wa.gov, and it is recommended a CSV of the hours of the prior quarter be prepared ahead of time.

==== PFMLA Filing ====

==== WA Cares Filing ====

=== King County ===
=== City of Seattle ===

Main Page

2026-08-04T19:38:01Z

JoshFreese: Removed duplicate link.

{{Border box|<h3>Welcome to the Kawaguchi O'Connor Initiative Wiki</h3>}}

Consult the [https://www.mediawiki.org/wiki/Special:MyLanguage/Help:Contents User's Guide] for information on using the wiki software.

=== Element Directory ===

==== Volunteers ====

* [http://matrix.to/#/!qcxGRYWvmHUhwQLDdB:koinitiative.org?via=koinitiative.org All Team]
* [https://matrix.to/#/!NNiDobEqZqdeDkNhvu:koinitiative.org?via=koinitiative.org Finance Fun] (Finance Committee)
* [https://matrix.to/#/#committee-wiki:koinitiative.org Wiki Development Room]
* [https://matrix.to/#/!DVVGvXxgewfTRZIhSy:koinitiative.org?via=koinitiative.org Volunteer Mutual Aid]

==== Volunteers and Evacuees ====

* [https://matrix.to/#/!IwivGIzpSvygApSytT:koinitiative.org?via=koinitiative.org Vetted General]
* [https://matrix.to/#/#tunes:koinitiative.org Tunesville]

=== KOI Documentation ===
<b> Finances </b>

* [[KOI Financial Policies and Procedures]]
* HOLD FOR 990, TO BE PUBLISHED IN 2027

== Getting started ==
* [https://www.mediawiki.org/wiki/Special:MyLanguage/Manual:Configuration_settings Configuration settings list]
* [https://www.mediawiki.org/wiki/Special:MyLanguage/Manual:FAQ MediaWiki FAQ]
* [https://lists.wikimedia.org/postorius/lists/mediawiki-announce.lists.wikimedia.org/ MediaWiki release mailing list]
* [https://www.mediawiki.org/wiki/Special:MyLanguage/Localisation#Translation_resources Localise MediaWiki for your language]
* [https://www.mediawiki.org/wiki/Special:MyLanguage/Manual:Combating_spam Learn how to combat spam on your wiki]

Main Page

2026-08-04T19:35:57Z

JoshFreese: Added in Element Directory and some basic channels.

{{Border box|<h3>Welcome to the Kawaguchi O'Connor Initiative Wiki</h3>}}

Consult the [https://www.mediawiki.org/wiki/Special:MyLanguage/Help:Contents User's Guide] for information on using the wiki software.

=== Element Directory ===

==== Volunteers ====

* [http://matrix.to/#/!qcxGRYWvmHUhwQLDdB:koinitiative.org?via=koinitiative.org All Team]
* [https://matrix.to/#/!NNiDobEqZqdeDkNhvu:koinitiative.org?via=koinitiative.org Finance Fun] (Finance Committee)
* [https://matrix.to/#/#committee-wiki:koinitiative.org Wiki Development Room]
* [https://matrix.to/#/!DVVGvXxgewfTRZIhSy:koinitiative.org?via=koinitiative.org Volunteer Mutual Aid]

==== Volunteers and Evacuees ====

* [https://matrix.to/#/!IwivGIzpSvygApSytT:koinitiative.org?via=koinitiative.org Vetted General]
* [https://matrix.to/#/#tunes:koinitiative.org Tunesville]

=== KOI Documentation ===
<b> Finances </b>

* [[KOI Financial Policies and Procedures]]
* HOLD FOR 990, TO BE PUBLISHED IN 2027
* https://matrix.to/#/!NNiDobEqZqdeDkNhvu:koinitiative.org?via=koinitiative.org

== Getting started ==
* [https://www.mediawiki.org/wiki/Special:MyLanguage/Manual:Configuration_settings Configuration settings list]
* [https://www.mediawiki.org/wiki/Special:MyLanguage/Manual:FAQ MediaWiki FAQ]
* [https://lists.wikimedia.org/postorius/lists/mediawiki-announce.lists.wikimedia.org/ MediaWiki release mailing list]
* [https://www.mediawiki.org/wiki/Special:MyLanguage/Localisation#Translation_resources Localise MediaWiki for your language]
* [https://www.mediawiki.org/wiki/Special:MyLanguage/Manual:Combating_spam Learn how to combat spam on your wiki]

Main Page

2026-08-04T15:43:00Z

JoshFreese: Added in test link for Finance Room invite.

{{Border box|<h3>Welcome to the Kawaguchi O'Connor Initiative Wiki</h3>}}

Consult the [https://www.mediawiki.org/wiki/Special:MyLanguage/Help:Contents User's Guide] for information on using the wiki software.

<b> Finances </b>

* [[KOI Financial Policies and Procedures]]
* HOLD FOR 990, TO BE PUBLISHED IN 2027
* https://matrix.to/#/!NNiDobEqZqdeDkNhvu:koinitiative.org?via=koinitiative.org

== Getting started ==
* [https://www.mediawiki.org/wiki/Special:MyLanguage/Manual:Configuration_settings Configuration settings list]
* [https://www.mediawiki.org/wiki/Special:MyLanguage/Manual:FAQ MediaWiki FAQ]
* [https://lists.wikimedia.org/postorius/lists/mediawiki-announce.lists.wikimedia.org/ MediaWiki release mailing list]
* [https://www.mediawiki.org/wiki/Special:MyLanguage/Localisation#Translation_resources Localise MediaWiki for your language]
* [https://www.mediawiki.org/wiki/Special:MyLanguage/Manual:Combating_spam Learn how to combat spam on your wiki]

Volunteer Mutual Aid Fund

2026-08-04T15:34:07Z

JoshFreese: /* Procedure */ Fixed number format on the Procedure.

Effective date: 2026 July 1st

Adopted by Board of Directors of KOI on: 2026 June 13th

Review cadence: Annually

= Plain Language Summary =
''This section describes in plain language what is otherwise a fairly technical document. It is important to note that this section is provided for easy understanding but '''shall not be used''' in place of the below detailed and specific policy.''

This policy creates a '''Volunteer Mutual Aid Fund''' to support active volunteers and help prevent burnout.

The fund is meant to provide '''cash support to volunteers based on their expressed needs''', not based on income or financial status. Volunteers are '''not required''' to request or to accept money, and the organization '''cannot use means testing''' to decide who qualifies.

To qualify, a volunteer must be:

* An active volunteer in good standing
* Someone who volunteered at least '''10 hours in the previous month'''
* Someone who completed '''Direct Service work''' that month
* Not a member of the governing Board of Directors

The fund is calculated monthly. After each month closes, the organization totals expenses related to '''Evacuee Support''', then sets aside '''10% of that amount''' for the Volunteer Mutual Aid Fund. The fund is based on expenses, '''not revenue'''.

Volunteers request support through the normal expense reimbursement process. They must include a short summary of their volunteer activities and hours. Payments are usually calculated and distributed in the '''second week of each month'''.

Each volunteer can receive up to '''$1,000 per month''', but payments may not happen if the fund has no money or if the organization’s cash flow can’t support it.

Recipients will be told that these payments do '''not''' make them employees or contractors. The organization views the payments as partial reimbursement for donated time, money, and resources, but the IRS may treat them as taxable income. Volunteers may need to provide a '''W-9''' if payments reach reporting thresholds.

The policy also includes safeguards: the Treasurer can stop suspected abuse, such as volunteers inflating Evacuee Support expenses to increase the fund. The fund is restricted to only this use, tracked in the accounting system, and cannot grow beyond certain limits. Donors cannot donate directly to it.

= Purpose, scope, and definitions =

== Purpose ==
In accordance with the Mission of the Kawaguchi O’Connor Initiative (KOI), Mutual Aid is one of the core tenants to ensure the sustainability of KOI and the Trans/GNC Community. From KOI’s inception, Volunteers have been the driving force, life blood, and sole reason for KOI’s existence. Their contributions are to be honored.

To prevent burnout and over-utilization of our volunteers, a Volunteer Mutual Aid is to be established. On June 13th 2026, during the budgeting meeting (“The Budget Meeting”), KOI budgeted, and approved the Volunteer Mutual Aid Fund.

== Who and what this policy covers ==
This policy applies to all Active KOI Volunteers, regardless of their age, ancestry, color, disability, ethnicity, sex, gender identity or expression, genetic information, HIV/AIDS status, military status, national origin, pregnancy, race, religion, sex, sexual orientation, veteran status, access to wealth, criminal convictions past or pending, access to banking, relationship past or current to KOI members or volunteers past or current, or housing status past or current.

This policy is limited in scope to the establishment, maintenance, and distribution of The Mutual Aid Fund. Any other funds, financial or otherwise, are excluded from the scope of this document.

Acceptance of disbursements from The Mutual Aid Fund is not mandatory for any volunteer.

This policy expressly forbids means testing for eligibility.

== Definitions ==
'''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and whom donates labor toward the furtherance of KOI’s goals and programs

'''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month

'''Director''' - A Director is a volunteer who, for purposes of governmental and interorganizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the Board of Directors (e.g. Chair, Secretary, Treasurer).

'''Governing Board Director -''' A Volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by Government entities (Secretary of State, Internal Revenue Service, etc.)

'''Direct Service -''' Direct Service is defined as work conducted with individual evacuees. This can include Hosting, Driving, Emotional Labor, Care Coordination, Speaking with Evacuees on Element, etc. These can also include admin tasks to support Direct Service such as Volunteer Intake, Recruitment, Community Engagement, etc. Finance and Fundraising are not considered a Direct Service.

'''Volunteer Mutual Aid Fund''' - The fund established by this policy for the sole purpose of facilitating mutual aid via cash disbursements

'''Mutual Aid Fund Disbursement''' - Cash in an approved amount paid out to an individual volunteer as to the volunteer’s expressed needs.

'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help

= Governance, fiduciary alignment, and legal =
Directors of Washington nonprofits have statutory duties to act in good faith, with ordinary prudence, and in the nonprofit’s best interests.

== Volunteer Disclosures ==
Recipients of the Mutual Aid Stipend will be notified of the following:

* They are recognized as volunteers, and not as independent contractors, employees, or any other legally binding agreement that would be outside of the scope of a volunteer with KOI.
* KOI views recipients of the Mutual Aid Stipend as protected by the Volunteer Protection Act. However, there could be oppositional views in the legal system that would set up recipients to possible legal liability. KOI has no capacity, and will provide none, for legal support should such a situation arise.
* KOI views the disbursements a partial reimbursement of donated time, money, and resources. However, the IRS may view such reimbursements as taxable unearned income, or as Non Employee income. KOI will never provide tax advice, and it is up to the recipient to decide how to reconcile their disbursements with the IRS.
* Mutual Aid recipients may be required to provide a completed W-9 if their disbursements reach applicable reporting thresholds. This information may be needed if KOI is required to file Forms 1099-NEC, 1099-MISC, and/or Form 1096 to comply with nonprofit reporting requirements.
* Volunteers should not rely on the disbursements as a stable source of income due to possible volatility of the fund balance.

== Financial ==
Due to the labor of calculating the time and energy dedicated to Evacuee Support, the Volunteer Mutual Aid fund will be calculated on a periodic basis based upon expenses for the Evacuees.

The Volunteer Mutual Aid fund may never be calculated based upon revenue.

The Volunteer Mutual Aid Fund may be capped - with justification - per volunteer, even if there are excess funds left over.

Mutual Aid recipients may be required to provide a completed W-9 if their disbursements reach applicable reporting thresholds. This information may be needed if KOI is required to file Forms 1099-NEC, 1099-MISC, and/or Form 1096 to comply with nonprofit reporting requirements.

The Volunteer Mutual Aid Fund will be a restricted fund in the organization. After a period, such funds will be released back into the general fund.

Donors may not donate to the Volunteer Mutual Aid Fund.

Currently, KOI uses Cash Based Accounting. Should KOI’s accounting methods change, This Policy and Procedure may change.

Due to the direct support of the programs of KOI’s activities, Volunteer Mutual Aid disbursements will be classified as “Programs” for the 990.

== Cadence ==
Only volunteers who have completed any number of Direct Service Activity hours for the month can receive such disbursements due to the mental/emotional workload.

In light of the possibility that Volunteers could artificially inflate expenses for Evacuees to increase the Volunteer Mutual Aid Fund, KOI will be vigilant against such a possible fraud scheme, and the Treasurer can veto such schemes. Volunteers who are found to be increasing expenditures to increase the Volunteer Mutual Aid fund will be held accountable and possibly removed from the program.

The governing Board of Directors cannot be recipients of the Mutual Aid Fund.

A recipient must be an active volunteer in good standing with KOI at the time of disbursement in order to receive disbursements from the fund.

Volunteer Mutual Aid Fund Disbursements are calculated, and disbursed in the second week of each month.

Funds may not be disbursed if:

* The fund balance is Zero, or negative.
* Current Cash flows prevent such a disbursement, even if the fund balance is positive.

If Cash flows are anticipated to prevent disbursements, it is the duty of the Treasurer to flag this adequately far ahead that the organization may discuss and vote on how to proceed.

= Procedure =

# After month close, the total of all GL Accounts with the phrase “Evacuee Support” will be calculated. The total of Evacuee Support will be multiplied by 10%. The result of the equation will be entered in a month's closing Journal Entry to transfer the total from uncategorized Equity to Equity categorized as “Programs – Volunteer Mutual Aid”.
# The working paper to back up the calculation will be retained by KOI, and attached to the Journal Entry in the accounting software used by KOI (currently Xero).
# Volunteer Mutual Aid disbursements will be requested and approved by the standard Expense approval process.
# When Volunteer Mutual Aid disbursements are entered into the Accounting software, the transaction must include
## The Volunteer Alias as the vendor/contact.
## The Account 6414 Volunteer Mutual Aid
## The Volunteer Mutual Aid as the Fund.
# Disbursements are requested by volunteers each month to an amount they feel appropriate via the Expense Reimbursement form, including a summary of activities and hours volunteered for the applicable month.
# Disbursements are capped per volunteer at $1000 per month. Volunteers must have provided 10 hours of labor for the month to qualify.
# If disbursement requests for a given month exceed available funds, all individuals requesting reimbursement will receive an equal percentage of the available funds.
# If a volunteer receives more than $550 for the tax year (Jan – Dec), or the disbursement is above $600, a W-9 must be filled out by the volunteer and provided to KOI in a secure manner before further disbursements.
# The running balance of the fund may never be more than the aggregate additions of the past 6 months to the fund. Such a calculation will be regularly calculated in the Workpaper attached to the Journal Entry. If said occurrence happens, the fund will be reduced, or possibly, transferred back to general to match the constraint.

KOI Financial Policies and Procedures

2026-08-04T01:54:05Z

JoshFreese: /* Federal – Internal Revenue Service */ Added in extra content regarding w2s and 1099s.

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with gudits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===

* '''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs
* '''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month
* '''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).
* '''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)
* '''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.
* '''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.
* '''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.
* '''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.
* '''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its description, it is a good thing.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Powers ===
Separation of powers (sometimes called segregation of powers) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three powers in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
* '''Materiality'''
** Materiality for evacuee expenses
** Materiality for non-evacuee expenses

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.
* Using funds from a restricted fund for expenses not allowed by said restricted fund.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===

=== Fundraising Systems ===

==== Zeffy ====

==== Benevity ====

=== Office Applications - Google Docs ===

=== Office Applications - Cryptpad ===

=== Communication - Element/Matrix ===

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash fund will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary option such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the account.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
KOI will retain copies of every compliant, audit, and/or government filing and keep it organized in case there are any need to refer to past filings.

=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
The 990 is the annual filing with the IRS as a non-profit. The deadline for such filings is May 15th, or October 15th (if an extension was filed).

To file a 990, the prior year's financials must be completed and closed (meaning, no modifications allowed). Ideally, the financial statements would be audited if required for a grant.

To file a 990, the following pieces of information is required:

* List of Board of Directors
* Compensated Directors
* Major Donors
* An end of year Income Statement for the prior year.
* A end of year Balance sheet statement for the prior year.
* A list of expenses per Management, Programs, and Fundraising.

The 990-N is the annual filing KOI can file in place of the 990 if certain requirements are met. KOI currently doesn't meet those requirements, and it will unlikely be able to due to the financial obligations of supporting evacuees.

==== Payroll Filings 940 and 941 ====
If KOI were to ever have payroll, regular payroll filings would need to be filed. During payroll, employee deductions for Unemployment Insurance (UI or FUTA) would be held in a liability account. The 940 report would need to be filed before the end of the month following the end of the prior quarter.

During payroll, employee deductions for federal withholding, social security, and medicare would be held in a liability account. At the same time, employer contributions to social security and medicare will be expensed and held in a liability account. At the end of the month after the quarter ends KOI will pay the aggregate totals reported in a 941 form to the IRS.

If it works better for KOI, a deposit system can be used to keep on top of the payroll liabilities through the quarter.

==== Annual W-2's and W-3s ====
If there were payroll in a calendar year, the W-2s and W-3s are due at the end of January of the following year. The W-3 will contain the aggregate information for all of the boxes of the W-2s filed for the year. Ideally, this is filed electronically.

==== Annual 1099's and 1096's ====
If there are payments to Non-employee contractors (individuals, sole proprietorship) or Single member LLC's, KOI must collect a W-9 from said vendor if the aggregate amounts paid for the year meet, exceed, or will exceed $600.00. KOI will then file the 1099's by the end of January following the year, along with a 1096 that will consolidate all of the payments of the 1099s.

=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
=== Washington State – Payroll ===

==== ESD Filing ====

==== LnI Filing ====

==== PFMLA Filing ====

==== WA Cares Filing ====

=== King County ===
=== City of Seattle ===

KOI Financial Policies and Procedures

2026-08-04T01:46:55Z

JoshFreese: /* Payroll Filings 940 and 941 */ Added in substance to the 940 and 941 filing sections.

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with gudits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===

* '''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs
* '''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month
* '''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).
* '''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)
* '''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.
* '''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.
* '''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.
* '''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.
* '''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its description, it is a good thing.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Powers ===
Separation of powers (sometimes called segregation of powers) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three powers in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
* '''Materiality'''
** Materiality for evacuee expenses
** Materiality for non-evacuee expenses

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.
* Using funds from a restricted fund for expenses not allowed by said restricted fund.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===

=== Fundraising Systems ===

==== Zeffy ====

==== Benevity ====

=== Office Applications - Google Docs ===

=== Office Applications - Cryptpad ===

=== Communication - Element/Matrix ===

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash fund will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary option such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the account.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
The 990 is the annual filing with the IRS as a non-profit. The deadline for such filings is May 15th, or October 15th (if an extension was filed).

To file a 990, the prior year's financials must be completed and closed (meaning, no modifications allowed). Ideally, the financial statements would be audited if required for a grant.

To file a 990, the following pieces of information is required:

* List of Board of Directors
* Compensated Directors
* Major Donors
* An end of year Income Statement for the prior year.
* A end of year Balance sheet statement for the prior year.
* A list of expenses per Management, Programs, and Fundraising.

The 990-N is the annual filing KOI can file in place of the 990 if certain requirements are met. KOI currently doesn't meet those requirements, and it will unlikely be able to due to the financial obligations of supporting evacuees.

==== Payroll Filings 940 and 941 ====
If KOI were to ever have payroll, regular payroll filings would need to be filed. During payroll, employee deductions for Unemployment Insurance (UI or FUTA) would be held in a liability account. The 940 report would need to be filed before the end of the month following the end of the prior quarter.

During payroll, employee deductions for federal withholding, social security, and medicare would be held in a liability account. At the same time, employer contributions to social security and medicare will be expensed and held in a liability account. At the end of the month after the quarter ends KOI will pay the aggregate totals reported in a 941 form to the IRS.

If it works better for KOI, a deposit system can be used to keep on top of the payroll liabilities through the quarter.

=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
=== Washington State – Payroll ===

==== ESD Filing ====

==== LnI Filing ====

==== PFMLA Filing ====

==== WA Cares Filing ====

=== King County ===
=== City of Seattle ===

KOI Financial Policies and Procedures

2026-08-04T01:38:52Z

JoshFreese: /* Annual Filings - 990 */ Added in info on how to file a 990.

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with gudits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===

* '''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs
* '''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month
* '''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).
* '''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)
* '''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.
* '''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.
* '''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.
* '''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.
* '''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its description, it is a good thing.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Powers ===
Separation of powers (sometimes called segregation of powers) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three powers in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
* '''Materiality'''
** Materiality for evacuee expenses
** Materiality for non-evacuee expenses

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.
* Using funds from a restricted fund for expenses not allowed by said restricted fund.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===

=== Fundraising Systems ===

==== Zeffy ====

==== Benevity ====

=== Office Applications - Google Docs ===

=== Office Applications - Cryptpad ===

=== Communication - Element/Matrix ===

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash fund will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary option such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the account.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
The 990 is the annual filing with the IRS as a non-profit. The deadline for such filings is May 15th, or October 15th (if an extension was filed).

To file a 990, the prior year's financials must be completed and closed (meaning, no modifications allowed). Ideally, the financial statements would be audited if required for a grant.

To file a 990, the following pieces of information is required:

* List of Board of Directors
* Compensated Directors
* Major Donors
* An end of year Income Statement for the prior year.
* A end of year Balance sheet statement for the prior year.
* A list of expenses per Management, Programs, and Fundraising.

The 990-N is the annual filing KOI can file in place of the 990 if certain requirements are met. KOI currently doesn't meet those requirements, and it will unlikely be able to due to the financial obligations of supporting evacuees.

==== Payroll Filings 940 and 941 ====
=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
=== Washington State – Payroll ===

==== ESD Filing ====

==== LnI Filing ====

==== PFMLA Filing ====

==== WA Cares Filing ====

=== King County ===
=== City of Seattle ===

KOI Financial Policies and Procedures

2026-08-04T01:27:56Z

JoshFreese: /* How to use this Document */ Added in extra context regarding policies and procedures.

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with gudits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy. Policy should be drafted before procedures, and should (ideally) change very little. Procedures are expected to change often due to systems changing, and the evolving nature of the non-profit space.
== Definitions ==
=== Actors ===

* '''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs
* '''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month
* '''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).
* '''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)
* '''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.
* '''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.
* '''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.
* '''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.
* '''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its description, it is a good thing.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Powers ===
Separation of powers (sometimes called segregation of powers) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three powers in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
* '''Materiality'''
** Materiality for evacuee expenses
** Materiality for non-evacuee expenses

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.
* Using funds from a restricted fund for expenses not allowed by said restricted fund.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===

=== Fundraising Systems ===

==== Zeffy ====

==== Benevity ====

=== Office Applications - Google Docs ===

=== Office Applications - Cryptpad ===

=== Communication - Element/Matrix ===

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash fund will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary option such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the account.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
==== Payroll Filings 940 and 941 ====
=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
=== Washington State – Payroll ===

==== ESD Filing ====

==== LnI Filing ====

==== PFMLA Filing ====

==== WA Cares Filing ====

=== King County ===
=== City of Seattle ===

KOI Financial Policies and Procedures

2026-08-04T01:24:31Z

JoshFreese: /* Managing Cash Flow */ Added in fleshed out policies for cash management. Included what a cash report would look like, bank account balances and controls, and a petty cash policy (or why we shouldn't have petty cash).

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with gudits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy.
== Definitions ==
=== Actors ===

* '''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs
* '''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month
* '''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).
* '''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)
* '''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.
* '''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.
* '''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.
* '''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.
* '''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its description, it is a good thing.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Powers ===
Separation of powers (sometimes called segregation of powers) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three powers in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
* '''Materiality'''
** Materiality for evacuee expenses
** Materiality for non-evacuee expenses

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.
* Using funds from a restricted fund for expenses not allowed by said restricted fund.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===

=== Fundraising Systems ===

==== Zeffy ====

==== Benevity ====

=== Office Applications - Google Docs ===

=== Office Applications - Cryptpad ===

=== Communication - Element/Matrix ===

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a cash report listing:

* End of Month Bank Account Balances
* End of Month Credit Card Balances
* End of Month Line of Credit Balances
* Budgeted Evacuee Expenses for the Month
* Budgeted Payroll Expenses for the Month (If Any)
* Budgeted Payables for the month.
* Budgeted Receivables (if any) for the month

Ideally, this should be a spreadsheet allowing the Finance Committee to easily determine and report the next steps the organization can take.

If expenses, and operations, are large enough, then the Finance Committee must issue this report monthly regardless to provide transparent status of the finances to the organization.

==== Bank Account Balances ====
Bank Account Balances should have set minimum balances. At the beginning of the month, the main checking account should be replenished to the the budgeted amount of expenses for evacuees for the month. The Bank account should never be below a set amount to ensure there are funds to be spent on the evacuees. The bank account shouldn't be above the replenish balance to ensure only a certain amount of funds would be vulnerable to a rogue actor who would wish to empty the bank account.

Any funds not currently in the checking account should be in the savings account.

Only those with authorization powers can transfer funds between bank accounts. Those with record keeping powers must have access to bank information in some channel, including a read-only method of the bank accounts.

==== Petty Cash Handling ====
The organization will not work with cash as much as possible. Cash will not be disbursed to evacuees. Cash will not be a mode of payment with vendors. Cash donations will be immediately deposited and not held by the organization outside of a depository institute.

If there ever is a petty cash fund within the organization outside of a depository institute, there a few requirements.

* Cash has to be counted on a periodic basis.
* The Petty Cash account will have to go through reconciliation on a set periodic basis.
* Separation of controls will be held (Authorizor, vs. Record Keeper vs. Custodian) with no exceptions.
* Withdraws from the Petty Cash fund will need two signatories.

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary option such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the account.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
==== Payroll Filings 940 and 941 ====
=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
=== Washington State – Payroll ===

==== ESD Filing ====

==== LnI Filing ====

==== PFMLA Filing ====

==== WA Cares Filing ====

=== King County ===
=== City of Seattle ===

KOI Financial Policies and Procedures

2026-08-04T01:02:15Z

JoshFreese: /* Cash Management */

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with gudits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy.
== Definitions ==
=== Actors ===

* '''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs
* '''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month
* '''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).
* '''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)
* '''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.
* '''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.
* '''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.
* '''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.
* '''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its description, it is a good thing.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Powers ===
Separation of powers (sometimes called segregation of powers) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three powers in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
* '''Materiality'''
** Materiality for evacuee expenses
** Materiality for non-evacuee expenses

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.
* Using funds from a restricted fund for expenses not allowed by said restricted fund.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===

=== Fundraising Systems ===

==== Zeffy ====

==== Benevity ====

=== Office Applications - Google Docs ===

=== Office Applications - Cryptpad ===

=== Communication - Element/Matrix ===

== Cash Management ==

=== Cash Management Policy ===

==== Managing Cash Flow ====
The cash in and out is an important factor for the sustainability of the organization. In order for KOI to continue on as an organization, the organization needs to be able to meet the following obligations (by priority):

# Budgeted Monthly Evacuee Expenses
# Budgeted Monthly Payroll Expenses (if it exists)
# Budgeted Monthly Rent Expenses (if renting a building)

If there is ever a low cash balance for the organization, the Finance Committee must create a

==== Bank Account Balances ====

==== Petty Cash Handling ====

== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary option such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the account.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
==== Payroll Filings 940 and 941 ====
=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
=== Washington State – Payroll ===

==== ESD Filing ====

==== LnI Filing ====

==== PFMLA Filing ====

==== WA Cares Filing ====

=== King County ===
=== City of Seattle ===

KOI Financial Policies and Procedures

2026-08-02T01:16:01Z

JoshFreese:

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with gudits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy.
== Definitions ==
=== Actors ===

* '''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs
* '''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month
* '''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).
* '''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)
* '''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.
* '''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.
* '''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.
* '''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.
* '''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its description, it is a good thing.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Powers ===
Separation of powers (sometimes called segregation of powers) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three powers in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
* '''Materiality'''
** Materiality for evacuee expenses
** Materiality for non-evacuee expenses

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.
* Using funds from a restricted fund for expenses not allowed by said restricted fund.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===

=== Fundraising Systems ===

==== Zeffy ====

==== Benevity ====

=== Office Applications - Google Docs ===

=== Office Applications - Cryptpad ===

=== Communication - Element/Matrix ===

== Cash Management ==
== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary option such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the account.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
==== Payroll Filings 940 and 941 ====
=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
=== Washington State – Payroll ===

==== ESD Filing ====

==== LnI Filing ====

==== PFMLA Filing ====

==== WA Cares Filing ====

=== King County ===
=== City of Seattle ===

KOI Financial Policies and Procedures

2026-08-02T01:12:00Z

JoshFreese: /* Payroll Policies */ Added in payroll policies!

Effective date: TBD

Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-annually

== Purpose, scope, and definitions ==
=== Purpose ===
A KOI financial procedures and policies document is needed:

* To prevent fraudulent use of donor funds
* To ensure the fiscal health and safety of the organization
* For compliance with grants
* For compliance with gudits
* For reference by KOI volunteers

=== Recognition of Capitalism and Harm ===

The finance committee of KOI recognizes the harm capitalism and colonialism have inflicted upon folks, especially queer and BIPOC individuals. Because of this harm, accounting, and finances, have rightfully gained a distrust from the public of their labor and values.

To fulfill the duties of KOI, the finance committee of KOI will use the professional duties, expertise, and labor of the accounting and finance fields for the sole purpose of the evacuees, and the mission of KOI. The finance committee may not engage in harm via financial trauma, fraud, gatekeeping, and bureaucracy. We believe this is all possible and we can fulfill the obligations put upon us by the US Generally Accepted Accounting Principles (GAAP) at the same time.

KOI is a non-profit organization (501(c)(3) that is recognized by the Internal Revenue Service (IRS), and therefore, has no owner equity. That does not mean KOI is immune from capitalistic goals and means. While non-profit organizations are accountable to the public/community via regular government reporting (The 990, SoS filings, etc.), that does not mean the organization is immune from seeking out power, control, and the accumulation of wealth at the expense of others.

Therefore, the finance committee chooses to adopt the following values, in addition to the values of KOI, to ensure the integrity of the KOI, and the mission:

==== KOI Finance Values ====

* '''Transparency''' – All financial information should be shared with as many of the KOI volunteers as possible while maintaining privacy and confidentiality. No terms should be gatekept, and all curiosity regarding the finances should be met with well-thought of answers, and knowledge sharing.
* '''Accountability''' – KOI defined accountability includes a cessation of harm, and collective restoration. Shame and guilt are counterproductive to accountability. The finance committee will ensure accountability is expected of them and of all KOI volunteers.
* '''Accuracy''' – The finance committee will ensure all financial information is as accurate as possible to ensure sound decisions can be made with the information provided by the committee
* '''Collaboration''' – All financial tasks shall be able to be delegated to anyone on the finance committee, regardless of past expertise with accounting. All finance committee members will collaborate, and delegate tasks to ensure an equity of labor and energy.
* '''Trust''' – The finance committee will garner trust in our systems/procedures, and will reciprocate the trust back onto the rest of the organization, and community, without suspicion of intent.
* '''Confidentiality''' – The finance committee will ensure the safety and security of our community is guaranteed by keeping personal information private.
* '''Natural Consequences''' – KOI will rely upon natural consequences for misappropriation and fraud instead of artificial punitive actions. Escalation to authorities will only be involved if there is immediate danger to the fiscal health of the organization.
* '''Non-punitive Restoration''' – KOI will rely upon all parties (the harmed, and the harming) in cases of fiscal harm done to KOI, or by KOI to repair the harm.

== How to use this Document ==
The following stakeholders may need this document:

* KOI board treasurer
* Finance comrades
* KOI volunteers
* Auditors

The document should be readily available online for ALL volunteers and have all changes tracked.

=== How to Update the Document ===
All changes should be tracked to ensure:

* What is removed and added
* Who produced the changes
* What time did they make such changes.

Changes that do not need oversight include:

* Typo and formatting corrections

Changes that need explicit oversight from the finance committee include:

* Changes in procedure

Changes that need explicit approval from the finance committee include:

* Changes in policy
* Changes in internal controls

=== Structure ===
Headings should be used to create a table of contents and easy navigation of the reader. Any images should have alt text with them. Headings should be nested appropriately for the ease of navigation of the user.

Each section should ideally come with a dedicated section for the policy of the financial operation and with the procedure of the financial operation. A Policy is a malleable set of guidelines to ensure any procedure properly follows sound and compliant decisions by KOI. A procedure is the steps to enact the policy.
== Definitions ==
=== Actors ===

* '''Volunteer''' - An individual who has been onboarded into KOI, including alias and chat platform access, and who donates labor toward the furtherance of KOI’s goals and programs
* '''Active KOI Volunteer''' - An individual volunteer who has contributed no fewer than 10 hours the previous calendar month
* '''Director''' - A director is a volunteer who, for purposes of governmental and inter-organizational interfacing, holds a titled position within the organization but does not have authority for governance - which remains restricted only to the board of directors (e.g. chair, secretary, treasurer).
* '''Governing Board Director''' - A volunteer who has a titled governance position within the organization as laid out in the organization’s bylaws and is registered as such by government entities (secretary of state, Internal Revenue Service, etc.)
* '''Board Treasurer''' - The volunteer board member who is listed as the treasurer to the Internal Revenue Service and the secretary of state of Washington State.
* '''Finance Comrade''' - A finance comrade is a KOI volunteer who has explicit, and approved, access to our accounting system and/or our bank portal. They are also tasked to record financial transactions and to compose budgets.
* '''Evacuee''' - A member of the trans community that is being advocated for by KOI to acquire freedom of movement, self-determination and autonomy to create a new life in Washington State.
* '''Authorizer''' - A volunteer who holds the power to initiate a transaction of funds from, and to, KOI.
* '''Signatory''' - A signatory is a KOI volunteer who has authorization powers, and can sign checks for the bank account.

=== Accounting/Finance Definitions ===
'''Accounts Receivable''' - A general ledger ("GL") account that holds all of the promised, and earned, revenue for the organization. Accounts receivable is also a collection of processes to intake revenue, and track revenue.

'''Accounts Payable''' - A GL account that holds all of the expenses owed by the organization, yet not paid. Accounts payable is also a collection of processes to track expenses and disburse funds for expenses.

'''Going Concern''' - A going concern means the organization can meet all of its liabilities, and is no danger of losing liquidity. Despite its description, it is a good thing.

'''Liabilities''' - Liabilities are legal obligations for future disbursements, or services. The most common of these are loans, accounts payable, and unearned revenue.

'''Assets -''' Assets are a tangible, or intangible, thing owned by the organization that posseesses financial value, or can produce financial value. Cash, buildings, patents, and goodwill are examples of such.

'''Equity -''' Equity is the remaining interest owned by the owners, and the organization of an entity after liabilities. As a non-profit, the equity is referred to as "Net Assets" and there are no capital owners.

'''Fund -''' A fund is an appropriated portion of Net Assets for specific purpose or program.

'''Restricted Fund -''' A Restricted Fund is a Fund that is set aside for a specific purpose and/or program, and cannot be re-appropriated to another fund or released without oversight.

'''GL Account -''' A GL (General Ledger) Account is a classification of a transaction category that is tracked by those responsible of the financials.

'''Misappropriation -''' Misappropriation is the disbursement, and spending, of funds in a method that wasn't the original intention of the disbursement.

'''Fraud -''' Fraud is the misappropration of funds/disbursements that intentionally violate the internal controls of the organization with the intention of misrepresentation and non-disclosure.

=== Other Definitions ===
'''In Good Standing''' - The default state for active KOI volunteers who have not been censured, disavowed, or asked to leave the organization and are otherwise meeting all requirements outlined in the organization’s bylaws and rules.

'''Means testing''' - A determination of whether an individual is eligible for assistance based upon whether the individual possesses the means to do with less or none of that help.

== Finance Committee Meetings ==
=== Finance Committee Meeting Policy ===
The goal of the finance committee meeting is to:

* Ensure the going concern of the organization
* Provide transparency of the finances to the rest of the organization, and stakeholders.
* Provide an impetus to close the books of the prior month.

Finance committee meetings will consist of the following volunteers of KOI:

* KOI board treasurer
* Finance comrades
* Non-finance KOI volunteers

KOI board treasurer will need to be a part of the finance committee meeting for oversight of the financial health of the organization. Finance comrades will attend to ensure tasks are delegated correctly and well within the capacity of the organization.

Non-finance KOI Volunteers should be recruited to attend the meeting to ensure expertise, knowledge, and fiscal power are held to account with the rest of the organization.

A quorum must be established. If there is no quorum, no meeting will be held. Instead, the KOI board treasurer will provide a report to the organization that no meeting was held, a short qualitative summary of the financials, and the financial statements themselves.

A quorum will consist of:

* The KOI board treasurer
* One finance comrade
* One non-finance comrade

The finance committee will have two standing agenda items:

* Review of the prior month’s financial statements
* Review of outstanding action items from prior finance committee meeting.

The financial statements will consist of the following:

* Balance sheet (financial position) for the prior month.
* Income statement (financial performance) for the prior month.
* Expenditures per fund for the prior month.

The financial statements can include comparisons to prior months. Other regular reports can also be requested.

Agenda Items will be notated in the meeting notes at least two days prior to the committee meeting. Each agenda item should list who is the sponsor, discussion notes, and action items.

Once the meeting is concluded, the meeting notes are shared with the organization

=== Finance Committee Procedures ===
The KOI board treasurer will post the agenda document for the rest of the finance team in the Finance room in element.

== All Organization Financial Policy ==

=== Internal Controls ===
Internal controls prevent fraud and ensure proper spending of the funds of KOI.

=== Separation of Powers ===
Separation of powers (sometimes called segregation of powers) is an internal control that prevents misuse of funds by ensuring every transaction has at least two eyes on it. Ideally, each transaction would have at least three KOI volunteers involved with it.

KOI recognizes the following three powers in a transaction process:

* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc.
* '''Custody –''' Custody is the physical holding of the funds of KOI. This can include physical checks, P2P transaction app access, credit cards, and cash
* '''Record Keeping''' - Record keeping is the logging, and documentation of transactions. Examples include paper files, journal entries, employee records, billing, and payables, financial statement preparation, etc.
* '''Materiality'''
** Materiality for evacuee expenses
** Materiality for non-evacuee expenses

=== General Ledger Account Control ===

A General Ledger Account (GL Account) is a category for an expense, revenue item, or a balance sheet item (such as a liability, asset, or equity). Every financial transaction with KOI (Cash or not) must be tracked in an account.

A GL Account should have:

* A balance
* A descriptive name
* A description for external, and internal, use.
* A Unique GL Numerical Code
* A GL Account Category (Expense, Revenue, Assets, etc.)

GL Accounts can only be approved before they are added to the Accounting System by a KOI volunteer with Authorization powers. The only exception is new/retired GL Accounts can be approved during the budgeting process with the entire organization. Only members of the Finance Committee can add GL Accounts into the Accounting System.

==== GL Account Numbering ====
GL Account Codes are numbered numerically in a consistent manner according to the category. For example, all payroll liabilities always begins with the number 21. If there are to be more sub accounts than four numbers would allow, then the number of digits in a GL Account Code can be extended. For example, Evacuee Support: Medical Support: Emergencies code is 650502, which is 6 digits long.

The current system is as follows:
{| class="wikitable"
|+
!Account
!Sub Account
!Sub Account (Level 2)
!Numerical Prefix
|-
|Asset
|
|
|1
|-
|Asset
|Bank Accounts
|
|10
|-
|Liabilities
|
|
|2
|-
|Liabilities
|Payroll Liabilities
|
|21
|-
|Net Assets (Equity)
|
|
|3
|-
|Revenue
|
|
|4
|-
|Revenue
|Fundraising
|
|43
|-
|Expenses
|
|
|6
|-
|Expenses
|Evacuee Support
|
|65
|-
|Expenses
|Evacuee Support
|Transport
|6501
|-
|Expenses
|Evacuee Support
|Medical Support
|6505
|-
|Expenses
|Payroll Taxes
|
|6720
|}

== Misappropriation and Fraud Control ==

=== Restorative Steps for Misappropriation ===
Misappropriation of funds is when funds are disbursed in a way that violates internal controls, but does not consist of personal enrichment. Misappropriation of funds can also include transactions that are for the mission of KOI, but still violate the internal controls.

Examples of fund misappropriation include:

* Using appropriated funds for an evacuee for another documented expense purpose than initially reported
* Using appropriated funds for one evacuee than initially stated
* Unauthorized transactions for sundries for KOI
Accountability involves all sides knowing where errors and harm has been done. Acknowledgement of the misappropriation will be communicated by the Finance Committee to the KOI Volunteer. If the misappropriate was initiated by and Evacuee, the Finance Committee will notify the Evacuee's Care Coordinator.

There will be no set consequence or reprisal for misappropriation. However, there will be natural consequences in order to protect the internal controls of KOI, and the sustainability of the organization.

These consequences can involved one, or more, of the following:

* Written acknowledgement of the misappropriation.
* Written next steps by the individual who misappropriated on how to prevent future misappropriation.
* Additional authorizers for transactions for future transactions from the person who misappropriated funds.
* Additional authorization steps for all transactions involving the person who misappropriated funds.
* Additional documentation requirements for transactions involving the person who misappropriated funds.
* Removal from the transaction process entirely for the person who misappropriated funds.
* Redelegation of tasks for a volunteer who misappropriated funds.
* Using funds from a restricted fund for expenses not allowed by said restricted fund.

The priority for deciding which consequence to enact upon the person who misappropriated funds should always be based upon the internal controls, and sustainability, of KOI. Never should shame/guilt be used when deciding next steps after misappropriation of funds.

=== Restorative Steps for Suspected, and/or confirmed Fraud ===

Fraud is a severe threat to any non-profit, including KOI. KOI kindly acknowledges the by-and-for nature of the organization brings volunteers from all walks of life that have lived experiences that can sometimes justify fraudulent behavior.

The fraud triangle consists of

* Perceived opportunity
* Perceived pressure
* Rationalization

KOI can only control the perceived opportunity, and can influence the rationalization.

Fraud can consist of:

* Removing funds from KOI for one’s personal enrichment
* Removing funds from KOI’s bank account without disclosure
* Removing funds from KOI for a transaction that violates the mission of KOI
* Obscuring transactions, or hiding them.
* Intentional misstatement of financial statements
* Using KOI's funds for purchase of illegal goods.
* Using funds from a restricted fund for another purpose.
* Using restricted funds for inappropriate purposes, and not disclosing it.

All actors, from evacuees to directors, are capable of creating harm via fraud. No actor external, or internal, should have any heightened suspicion unless the roles they hold within the organization might cause such a suspicion.

It is important to know that fraudulent activities can still be for the mission of the organization, but still count as fraudulent activity (example, emptying the bank account to gamble to hopefully increase the funds of the organization).

KOI strives to have a sober and delicate approach to preventing fraud that is not based upon any societal biases. Not only does this approach prevent micro/macro-aggressions on marginalized folks, it is also more likely to prevent fraud as folks who do have nefarious ends will depend upon societal prejudices to prevent being caught.

To preserve the checks and balances, KOI will ensure the finance committee is also staffed by a non-finance KOI Volunteer (A volunteer who isn’t a treasurer or finance comrade).

If fraud were to knowingly occur, the priority is to secure the lost funds if possible, or as much as it as possible. The next step is to prevent it from happening again by finding immediate steps to be taken to secure the funds in the channel the fraud occurred in.

Afterwards, an internal control audit needs to occur to prevent the fraud from happening not only in the channel it occurred in, but in all other aspects of the organization.

Unless the fraudulent activity is a threat to the going concern of the organization, KOI will not pursue the repayment of stolen funds from a volunteer, employee, director, evacuee, or an external party. Escalation will possibly cause issues of clout with the community, extra legal expenses, and organizational culture repercussions. A cheaper option would be to find out how the fraud occurred, and modify the internal controls accordingly.

Any KOI volunteer, evacuee, director, or staff, that has been confirmed to have committed a fraudulent activity with KOI will face consequences such as:

* Re-delegation of tasks and resource access
* For volunteers, lose the good standing status and be removed from the volunteer mutual aid
* Removal from transaction process
* Removal from KOI
* Additional record-keeping to indicate to possible reference inquiries about a history of fraud.

The main aim is not punishment, shame, or guilt. It should be to protect KOI, those harmed, and the harmer as well.
== Systems, Application and Information Security ==

=== Accounting System - Xero ===

=== Fundraising Systems ===

==== Zeffy ====

==== Benevity ====

=== Office Applications - Google Docs ===

=== Office Applications - Cryptpad ===

=== Communication - Element/Matrix ===

== Cash Management ==
== Organization Budgeting ==
To have a functioning Non-profit, a composed budget is required every year for KOI. A budget must be composed also for Grant applications, and to strengthen the internal controls of the organization.

=== Budgeting Policy ===
The budget will be composed every fiscal year for KOI. The budget will include forecasted monthly amounts for every active GL accounts, or soon to be active GL Accounts. Added GL Accounts can be approved during the budgeting process. The budget can be composed and reviewed by the Finance Committee. However, the budget must be approved in an all-organization meeting.

The timeline of the budget should be as such:

* Two months before the beginning of the fiscal year, the other committees are informed of their obligations, and a template is created.
* One month before the beginning of the fiscal year, the Finance committee reviews a finished budget and submits it for review by the organization.
* During the last meeting before for the new fiscal year, the budget is submitted for approval by the organization.

If the budget is not approved by the organization, then there is no operational budget. The budget has to be recomposed, and re-submitted.

The draft budget should be available on an accessible platform where changes can be tracked, and colloborated

The following committees are responsible for:

* Development Committee is responsible for the Fundraising revenue forecasts, and the fundraising expenses.
* Evacuee Care Committee (to be established) is responsible for the forecasted evacuee expenses.
* The Finance Committee is responsible for forecasting all administrative and sundry expenses.

In the scenario where KOI secures programmatic grants, the Program Managers will compose the budgets for their individual programs (with assistance from the Finance Committee), and use said budgets for the organization budget.

In the scenario where KOI secures the funds to hire paid staff, the Wage Schedule will be composed by the Finance Committee based upon the inputs of the Board.

=== Budgeting Procedure ===
== Fund Management ==
=== Fund Policy ===
As a 501(c)(3), KOI is responsible in dividing the net assets into dedicated funds. The IRS required KOI to track expenses by funds, and to report expenses per funds in a statement of functional expenses on the tax return document the 990. The spending of expenses per fund is made transparent to the public on the 990 and on Washington State's Secretary of State's website.

KOI is required to keep track of only three Funds: Management, Fundraising, and Programs. However, to properly operate KOI keeps track of additional funds as need be.

Until restricted revenue is received by KOI, only expense transactions need a fund classification. If KOI is to ever receive restricted revenue, then all revenue should be assigned a Fund category when recorded.

Donors are never allowed to donate to a designated fund, restricted or not.

Expenses cannot be moved from fund to fund without justification. Expenses that are reimbursed for a restricted fund cannot be moved to another fund to be reimbursed again (double-dipping).

In a similar manner to the General Ledger Accounts, Funds can only be added by the Finance Committee, and they can only be approved by authorizers.

==== Unrestricted Fund Policy ====
Unrestricted funds have no set micro-budget, no set grantor/funder, and fewer stakeholders. No check-in, or approval, has to be done to spend from these funds.

===== Management Fund =====
Management is an unrestricted fund for expenses that are not for the mission of KOI, but are meant to ensure the going concern of the organization.

Common Examples include:

* Server Hosting expenses.
* HR expenditures
* Accounting and Finance expenditures
* Compliance expenditures

===== Fundraising Fund =====
Fundraising Fund is an unrestricted fund meant for raising more funds for KOI as an organization.

Common Examples include:

* Expenditures for a donation drive.
* Payments made to independent artists for a fundraiser
* Printing of pamphlets soliciting donations
* Payment to a Grant Writer to apply for Grants
* Revenue received by a sponsor for a fundraiser.

===== Programs (undesignated) Fund =====
Programs is our general fund that allows KOI to do the work for the mission. Unless otherwise stated, these funds are unrestricted. There can be restricted funds that are sub-funds of the Programs Fund.

All Evacuee Expenses come from the programs fund. Any other expense that is for the mission of KOI also comes from the Programs Fund.

==== Restricted Fund Policy ====
Restricted funds are avoided when possible. However, specific grants/contracts may require some funds to be set aside and restricted. When a fund is restricted, all expenses from said fund must be approved by an authorizer who is designated to be a steward of said funds. Restricted Funds require a budget, or a line item in the organization budget. When expenses are spent from a restricted fund, the Board must be updated in terms of the status of the budget of the fund.

Expenses spent from a restricted fund cannot be used for another restricted fund, or for expenses that should be used for Fundraising, Management, and/or Undesignated Program expenditures.

Restricted funds may be granted in two ways:

===== Reimbursement =====
A restricted fund may require expenditures from KOI for a certain purpose with the expectation of reimbursement of said expenses later. Budgets must be kept of the status of expenditures to provide the funder for reimbursement. Expenses cannot be moved to another fund to be reimbursed again, or multiple times. Expenses cannot be moved to an unrestricted fund after reimbursement.

===== Spend-down =====
A restricted fund may involve a designated donation, or grant, that requires the funds be spent in a specific manner. When this occurs, KOI tracks the expenses and produces a budget at the end of a reporting period indicating how much has been spent. Such funds may require unspent funds to be returned to the grantor if they aren't spent for the specific purpose of the fund. These funds cannot be used for other restricted funds, or unrestricted purposes. A budget must be composed for such funds and stewards of said funds must be aware of the status of such funds.

===== Volunteer Mutual Aid Fund =====
Currently, KOI only has one restricted fund. The Volunteer Mutual Aid fund was created to prevent burnout of volunteers. These funds may not be used for other purposes besides aiding the Volunteer. Unspent funds after a set amount of months will be returned to the unrestricted program funds. For more information, please see [[Volunteer Mutual Aid Fund|the page on the Volunteer Mutual Aid Fund.]]

=== Fund Procedure ===
== Evacuee Expenses ==
Expenses to support Evacuees from hostile states is the main mission of the Kawaguchi O'Connor Initiative.

===== Evacuee Expenses Policy =====
KOI must construct a per-evacuee budget of support expenses. The budget is presented to the organization in an all-organization meeting independent of the all-organization budget. The meeting will discuss, vote, and approve (or veto) the composed budget. The date and attendees must be noted.

The budget must consist of:

* The Category (Analogous to the GL Account)
* Estimated Frequency (Monthly, Weekly, etc)
* Preferred method of disbursement
* Max cap per disbursement
* Max disbursement per category per evacuee
* Anticipated spending per evacuee
* Authorization requirements.

The Finance Committee then is responsible for inputting, and reconciling, the approved budget into the all-organization budget.

==== Expense Authorization for Evacuee Expenses ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, the evacuee, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

The following table lists the Evacuee Support expenses and their authorization requirements.
{| class="wikitable"
|+
!Expense Category
!Pre-Authorization
!Post-Authorization
!Documentation Only
!No Authorization or Documentation
|-
|SNAP Supplement
|
|
|X
|
|-
|Clothing
|X
|
|
|
|-
|Non-emergency Medical Visits
|X
|
|
|
|-
|Emergency Medical Visits
|
|
|X
|
|-
|Public Transportation
|
|
|
|X
|-
|Rideshare
|X
|
|
|
|-
|Evacuee Vehicles
|X
|
|
|
|-
|Legal Documentation
|X
|
|
|
|-
|Evacuation
|X
|
|
|
|-
|Housing
|X
|
|
|
|-
|Furnishments
|X
|
|
|
|-
|Medical Sundries
|
|
|X
|
|-
|Living Sundries
|
|
|X
|
|-
|Miscellaneous Gender Affirming Care
|
|
|X
|
|}

==== Evacuee Support Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s) if not an evacuee being reimbursed
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee.

===== Prohibited Evacuee Expenses =====
Evacuees, and Care Coordinators, are prohibited from purchasing the following as "Evacuee Support Expenses":

* Purchase of illegal items or illegal services.
* Purchase of Nicotine, Cannabis, and Alcohol for anyone under 21.
* Gambling.
* Purchase of firearms.
* Political campaigning.

If such expenses were to occur, then a misappropriation of funds (at the minimum) is considered to have occurred.

=== Evacuee Expenses Procedures ===
== Non-Evacuee Accounts Payable ==
=== Non-Evacuee Accounts Payable Policy ===
==== Expense Authorization options ====

===== Documentation Only =====
Expenses that require only documentation must be disclosed to the organization. No Authorization is needed.

===== Pre-Authorization =====
Authorization is sought from the organization before the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction should move forward, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. The disbursement then can move forward. A consensus can be veto'd by one or two folks.

===== Post-Authorization =====
Authorization is sought from the organization after the disbursement is initiated. The nature of the expense, and justification is presented. If there is a general consensus the transaction was appropriate, the expense request must be recorded. A signatory, or someone with authorization powers, will then record their approval. A consensus can be veto'd by one or two folks. If no authorization is provided, then the Finance Committee will initiate the next steps listed in the policy for the Misappropriation of funds.

===== Authorization Not required =====
No authorization or documentation is required for expenses that are so marginal the extra labor would not be worth it. No misappropriation or fraud should be possible with such expenses, or if possible, for it not to be worth it. Only rarely should such an expense skip authorization.

===== Reoccurring Expense Authorization =====
Occasional expenses require one authorization for a budgeted set disbursement that continues on a reoccurring basis. The authorization process is the same as when an Expense requires pre-authorization, but the transaction is disclosed to be reoccurring, and not to change.

==== Expense Documentation ====
Each expense should have a corresponding primary document that includes:

* Amount of the expense
* Date of the Expense
* Vendor(s)
* Primary Unique ID (If Available)

Expenses Documentation should be stored in a digital space that is accessible to the Finance Committee. In addition, the disbursement should be designated to come out of a specific fund.

=== Non-Evacuee Accounts Payable Procedure ===
== Credit Cards ==
=== Credit Card Policy ===
Credit cards are a liability for the organization, and spending must be done so in a cautious manner. Therefore, the policies are going to be generally verbose.

==== Credit Card Policy - Accessible Language Summary ====

To be accessible, the following section is for general use, but is not considered legally binding. Please use this section for clarification and guidance, but the following section for substantiation and procedure formulation

==== Credit Card Policy Detailed ====
The credit cards are there to make transactions easier to initiate for care coordinators while also maintaining the internal controls of the organization.

The most important internal control to maintain is the separation of powers. Credit card holders will have custody, therefore, they can never authorize their own transactions, and they can never record their own transactions in the accounting software.

A notable transaction that can skip authorization are the specific evacuee expenses that were pre-approved in a budget to require no authorization, and just documentation as detailed in the evacuee expense policy.

Credit card holders must be a volunteer in good standing with KOI. Currently, KOI volunteers are required to pass a background check to be in good standing. If the background check requirement is ever waived for a volunteer to be in good standing, credit card holders will still be required to to submit to a background check.

Credit card holders are accountable for ensuring:

* Transactions meet the mission statement of the organization
* Transactions are not misappropriated.
* Suspected fraud is reported to signatories.
* Unknown, or unauthorized, transactions are reported to signatories.
* Transactions are completed once authorized.
* Transactions are within the budget of the organization.
* Transactions that are over/under variance of the budget have a narrative.
* Credit cards are spent within the monthly limit.
* Documentation for the transaction is provided to KOI and the finance committee
* Answer questions from the finance committee regarding transactions on their card.

No credit card may have a cash advance available.

Unknown, and unauthorized transactions, may cause the credit card to be shut down and a replacement card to be issued. This is not a policy of KOI, but of our bank.

Each card has a spending limit. These limits are decided based upon 1) The aggregate spending limit allowed by our bank for all of our cards and 2) The budget per evacuee as approved by the organization all volunteer meetings.

If a card is approaching the spending limit, the card holder may request a signatory to complete an early payment. The board treasurer can confirm if there are cash reserves available for such a payment.

Credit card holders may attach the credit card to a peer-to-peer (P2P) monetary option such as Venmo, Cash App, Paypal, etc.

Credit card holders may use the credit card for recurring expenses, and may only ask for approval once due to the consistent nature of the expense.

If there is an unknown, and/or unauthorized, transaction on the card, the card holder must notify the signatories within 24 hours of the posting date.

If there is suspected fraud (with substantial evidence), the card holder needs to alert the finance committee or a signatory immediately.

When the month ends, the finance committee will reconcile the credit card statement(s) in the accounting software in a similar manner to how the bank account is reconciled.
==== Natural Consequences of violation of Credit Card Policy ====

If a credit card holder has repeatedly violated the policy regarding the credit card they hold, then the finance committee will report it to the organization at large.

Accountability will then be established. To avoid a punitive action, KOI will rely upon natural consequences to re-establish trust with the credit card holder and hold the organization to the internal controls that have been established. The consequence chosen will depend upon the violation of the policy to ensure proper re-alignment to the policy.

These natural consequences can include one or more of the following:

* One-on-one discussion with the credit card holder regarding the policy.
* A signed acknowledgment of the policy violation, and what the card holder thinks is the next step.
* Temporary suspension of the credit card for that credit card holder.
* Re-assignment, or reduction, of delegated tasks if case workload is too much.
* Authorization required on transactions where previously none were required.

==== Cessation of Credit Card use ====
Credit card cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern
* Violations of policy have been a repeated pattern with no properly implemented address of the violations.
* Violation, or violations, of the credit card policy goes against the mission of KOI
* Use of the credit card creates harm for KOI, KOI volunteers, KOI evacuees, and/or the credit card holder
* No violation has occurred, but there is an impending violation that mandates cessation of the card for the credit card holder
* Fraudulent use of the credit card by the credit card holder.

The immediate next step is to close the credit card. No further credit card can be issued to the credit card holder unless it was determined there was an error in the decision of cessation.

Only the board treasurer, the board chair, and the executive director can make the decision to cease use of a credit card for a credit card holder. No vote is required out of the three, but disclosure must be made. No veto regarding such a decision can be made.

Once there is a decision to remove the credit card from the credit card holder, the decision must be disclosed to the credit card holder, the evacuees depending on the credit card, the finance committee, and to the bank. A bank signatory will then close the account.

Further consequences can include:

* Prohibition of any role in transaction processing for KOI
* Removal from care coordination
* Removal from KOI
* Recordkeeping of violation to be reported in case any reference inquiry were to be made of the former credit card holder.

If there are any fraudulent transactions, no repayment is necessary to KOI if the fraudulent transaction does not impact the going concern of KOI. This is to reduce the workload of the KOI volunteers.

All of the consequences are entirely dependent on the nature of the violations, restoration from harm, and the boundaries of KOI to protect itself.

=== Credit Card Procedure ===
== Volunteer Mutual Aid Fund ==
The policy regarding the [[Volunteer Mutual Aid Fund]] is a separate policy that has to be separately approved.

== Accounts Receivable - Donations ==
=== Donations - Policy ===
KOI accepts donations as a form of community support. The donations should be logged appropriately as revenue.

Almost all methods of donations are accepted such as cash, checks, ACH. In-kind donations are accepted on a case by case basis.

Restricted donations, or advised donations, are not accepted.

Workplace donations that are accepted must track the employee that donated, the organization that matches the donation (if there are matching donations).

Documents should be kept that showcase the fund destination requested by the donor, the donor themself, the amount of the donation, and the date of the donation.

Ideally, there is a donation CRM that keeps track of the donors and the donations. End of year donation receipts should be provided by KOI for all non-anonymous donors.

If there is a transaction fee for the donation, the transaction fee should be recorded separately, and the donation should be recorded at gross value.

If there is an organization that conflicts with the values of KOI, or the mission of KOI, KOI has every right to reject the donation and refund the donor.

=== Donations - Procedure ===
== Accounts Receivable - Grants ==
=== Grant Curation and Tracking - Policy ===
Government, or Foundation Grants, can be accepted by KOI if there is a capacity determined to be available for such opportunities.

To accept such grants, they must be approved by a KOI Volunteer with Authorization powers. Any contracts, Memorandum of Understandings, Documentations, etc. must be kept accessible for those who are managing the Grant's funds, and the Finance Committee.

A Grant must have:

* A designated purpose if not unrestricted.
* A set time to spend funds.
* A set budget to spend said funds.
* A delegated KOI Volunteer to manage said funds.

The Finance Committee will designate a new fund for the Grant while the Grant is active. The fund can only be marked as inactive once the audit of the last year the grant was active has been completed.

All received monies for the grant must be classified under the appropriate fund in the Accounting software. All expenses for the grant must be allocated from the dedicated fund for the Grant.

===== Grant Curation =====
KOI will accept any Grant offered by a Government entity as long as it is for the mission of KOI.

KOI will not accept Grants/Funds from organizations that:

* Participate in systemic Transphobia/Queerphobia.
* Participate in Genocide of Indigenous Peoples.
* Participate in the oppression of BIPOC individuals.

=== Grant Curation and Tracking - Procedure ===
== Bank, and Credit Card, Reconciliation ==

=== Account Reconciliation Policy ===
Account reconciliation is an important internal control to ensure proper record keeping, transparent records, and an accountable finance staff. Accounts are reconciled within 15 days of the statement being received. Each transaction on the statement must have a matching transaction recorded in the accounting software.

Accounts that require regular reconciliation include:

* Bank Statements
* Credit Card Statements
* Line of Credit Statements (If Any)
External Account statements must include:

* Statement beginning date
* Statement ending date
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Account Reconciliation must ensure the following matches between the accounting system and the account statement:
* Account beginning balance
* Account ending balance
* Account aggregate outflows
* Account aggregate inflows

Copies of the statement and a Reconciliation report must be made available to all who inquire within a certain amount of days. Only volunteers with Recordkeeping privileges (The Finance Committee) may reconcile an account. The Accounting software must track who did the reconciliation, when, and if an account reconciliation is ever undone. An audit log must be available for Account Reconciliation.

If there is an unsolvable issue when it comes to reconciliation, the unaccountable amount may be put into a GL Account for Account Reconciliation issues. The board must be notified if an account reconciliation fails, and the GL Account had to be used.

Account reconciliations should ideally be completed after all transactions are accounted for. If there are any logistical issues in meeting such a deadline, an account can be reconciled as long as holding GL accounts for revenue and expenses are used.

=== Account Reconciliation Procedure ===
== Payroll ==
=== Payroll Policies ===
KOI will prepare Payroll when funds are available for sustainable employment to assist our community. The Finance Committee will own the responsibility of budgeting for the organization to be able sustainable to pay employees.

The Organization's ultimate goal is to value the labor of the individuals and to pay payroll. There will be no value judgment in regards to valuing that labor via the Volunteer Mutual Aid Fund, Non Employee Contracting, and/or a paycheck. The decision to provide a wage to individuals will solely be based on logistics, finances, and legality.

KOI's Payroll will only be based upon a hourly wage, and not on a based salary.

==== TImesheets ====
A substantiation of labor will be provided to the person responsible for implementing payroll. Most likely, this will be a timesheet.

The document will list:

* The Pay Period
* The Employee
* The timesheet approver
* The funds used to pay for the wages
* The days worked
* The aggregate hours worked.
* Any Paid time Off

The employee will be responsible for all components of the timesheet. The employee and the approving individual are responsible for a timely submission of the timesheet.

Pay may not be withheld for an un-submitted timesheet. However, timesheets are required for legal compliance. Accountability will be implemented in case of timesheet tardiness. Natural consequences will be implemented, including separation of the employee and the organization.

==== Part- Time vs. Full Time ====
An employee can be considered Part-time or Full-time. An employee is considered full time if they work over 30 hours per week for KOI, and work every week for KOI. Part-time employees can work on their own time, but they will not receive certain benefits. The benefits Part-time employees will not be eligible for will be explicitly stated.

==== Paid Time Off ====
Paid Time off must be provided in the following methods

====== Sick/ Medical Time ======
Sick/Medical Time is a yearly allocation of Medical time that is immediately accessible by the employee upon hire. Sick time is not accrued. Sick time will not roll over to next year. Employees are encouraged to look at PFMLA options in situations where medical situations are acutely catastrophic to the continued work of the employee. Sick time must comply with the local laws of the City of Seattle. Sick time does not need to be communicated ahead of time before being utilized. Proper intentional communication is required between all parities to ensure sick time is correctly recorded to ensure all parties remain compliant with local laws.

====== Vacation Time ======
Vacation Time is accrued based upon a fixed rate decided beforehand based upon the hours, or days, worked. A probationary period will prevent usage of Vacation time, but not accrual, when an employee is onboarded. A cap on the amount of accrued vacation time will be pre-decided and communicated to the employee. Vacation time will also have a roll-over limit between years. Vacation time must be requested a set time period beforehand to ensure proper delegation of tasks.

====== Holiday Time ======
KOI will decide upon Holidays that all employees can partake in throughout the year. There will be a set amount of days provided to the employee to take time off to celebrate holidays that appeal to the employee's cultural values and heritage.

====== Bereavement ======
In the event of a death in the immediate family, family two connections away, and/or death of a chosen family member, the employee can request bereavement. Bereavement can be used for the immediate day of learning of said passing, possible administrative burdens in regards to the death, and/or funerals. Bereavement is unlimited for employees.

===== Other Time Off =====

====== FMLA ======
Family and Medical Leave is unpaid time the employee can take off to take care of themselves, or of a family member. The FMLA must be requested a set period of time before being utilized. There must be a set return date, and a set check in date.

====== PFMLA ======
Paid Family and Medical Leave is provided by Washington State. Employees cannot be required to, but are highly encouraged to create a PFMLA web profile with the Employee Security Department (ESD) of Washington State. PFMLA can be used for taking care of a loved one, or self, when going through an acutely catastrophic medical issue that prevents the employee from working for KOI. The employee must communicate the need to be on PFMLA, along with supporting documentation, as required by ESD. The employer will also abide by the responsibilities listed by ESD.

The Employee will provide a proposed date of return, or a check in date, to KOI.

====== Unpaid Time Off ======
If an employee needs to take time off work without pay, they can reasonably request in a way that is similar in requested vacation time. KOI will communicate a max amount of time a full-time employee can take off before considering their job abandoned.

==== Overtime ====
Overtime is classified as either over 40 hours per work week, and over the total hours for the pay period. If an employee works overtime, they will be paid 1.5 their hourly rate. Exempt salaried employees are exempt from Overtime.

Overtime must have written, and referable, documentation from the approver of the timesheet '''BEFORE''' overtime is worked. Overtime worked with authorization sought after the overtime is worked is considered unauthorized.

Unauthorized overtime brings natural consequences, including legal/compliance issues for KOI. If there are repeated instances of unauthorized overtime, all parties will reach a restoration of expectations.

===== Moonlighting =====
Employees may work other non-employee gigs, or hold other jobs with other organizations. Employees may NOT submit timesheets requesting payment for work done, or for paid time off, that they are requesting payment from another organization. An example could be an employee requests vacation for May 26th 2026, but also work those same 8 hours for another organization. This is considered a form of fraud, and natural consequences can follow including a possible separation between KOI and the employee.

==== Payroll Processing ====
Timesheets are aggregated and multiplied by the hourly rate assigned for said employee for the pay period. The disbursement from the organization to the employees will be done on the pay check day. The pay check day should be after the pay period to provide sufficient time to correct timesheets, plan fund disbursements, and budget accordingly.

Once the disbursements are completed, the total Payroll Wage expenses should be logged in the Accounting System.

Payroll Tax Liabilities must be calculated and logged in the Accounting System. Deposits, payroll tax returns, and disbursements must be done on a timely manner to ensure KOI is compliant with payroll laws of all levels of government.

Payroll non-tax liabilities must also be calculated which can include:

* Retirement Account Contributions
* Garnishments
* Charitable Contributions
* Health Insurance Contributions
* Union Dues (If Applicable)

=== Separation or resignation ===
If an employee will cease employment with KOI, the Employee deserves severance to maintain a life of stability in a hostile capitalist society. However, KOI would be very fortunate to provide severance to every employee. KOI will provide such severance only if the cash budgeting can afford it, and if such severance can stabilize the employee's financial life post-separation.

If vacation time is promised to be paid off to an employee who separated with KOI, then the vacation time should be paid out. There should also be a balance sheet account to hold the balance of unpaid vacation time.

=== Payroll Procedures ===
== Compliance, Audits, and Government Filings ==
=== Federal – Internal Revenue Service ===
==== Annual Filings - 990 ====
==== Payroll Filings 940 and 941 ====
=== Washington State – Secretary of State ===

==== Corporation Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of State. The report is due by the end of the month of July.

Information disclosed must include:

* Current Business Address
* Current Registered Agent
* Total Revenue of the organization for the last fiscal year.

==== Charity Annual Filing ====
Every year, KOI is required to file an annual report with the State of Washington's Secretary of state for the Charity Profile. The report is due by the end of the month of November.

Information disclosed must include:

* Current Business Address
* Current Board of Directors
* Beginning and Ending Asset Balance
* Revenue from Donor Solicitations
* Non-Donor Revenue
* Total Program Expenditures
* Total Expenditures

=== Washington State – Department of Revenue B&O ===
=== Washington State – Payroll ===

==== ESD Filing ====

==== LnI Filing ====

==== PFMLA Filing ====

==== WA Cares Filing ====

=== King County ===
=== City of Seattle ===

KOI Financial Policies and Procedures

2026-08-02T00:06:02Z

JoshFreese: /* Washington State – Secretary of State */ Added in SoS filing deadlines and requirements.

KOI Financial Policies and Procedures

2026-08-01T23:55:18Z

JoshFreese: /* Definitions */ Added accounting definitions.

KOI Financial Policies and Procedures

2026-07-31T23:19:40Z

JoshFreese: Added in prohibited Evacuee Expenses. Fleshed out non-evacuee expenses policy. Fleshed out Grant Curation and Tracking.

KOI Financial Policies and Procedures

2026-07-30T21:38:33Z

JoshFreese: /* Evacuee Expenses */

KOI Financial Policies and Procedures

2026-07-30T18:53:23Z

JoshFreese: Minor formatting correction.