KOI Financial Policies and Procedures: Difference between revisions

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Adopted by Board of Directors of KOI on: TBD

Review cadence: Semi-~~annually~~

Review cadence: Semi-

== Purpose, scope, and definitions ==

=== Purpose ===

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* For compliance with grants

* For compliance with audits

* For reference by KOI ~~volunteers~~

* For reference by KOI

=== Recognition of Capitalism and Harm ===

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== 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).

* '''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

'''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.)

* '''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).

'''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.

* '''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.

* '''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.

'''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.

'''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 ===

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'''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.

'''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.

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

=== Separation of ~~Powers~~ ===

=== Separation of Duties ===

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.

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 ~~powers~~ in a transaction process:

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.

* '''Materiality~~'''~~

The most dangerous duty to have combined with another is authorization.

** Materiality for evacuee expenses

** Materiality for non-evacuee expenses

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 ===

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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:

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:

=== Office Applications - Google ~~Docs~~ ===

*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 ==

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* 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.

* Withdraws from the Petty Cash account will need two signatories.

== Organization Budgeting ==

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

The following committees are responsible for:

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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.

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.

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===== 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.

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.

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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 ===

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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 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.<!-- Recommend "only need approval for the first instance" or similar. Also perhaps add something about needing re-authorization if the cost of the recurring expense changes beyond a set percentage of the primary amount.

~~Credit card holders may use the credit card for recurring expenses, and may<!~~-~~- Recommend "only need approval for the first instance" or similar~~. ~~Also perhaps add something about needing re-authorization if the cost of the recurring expense changes beyond a set percentage of the primary amount~~. --> ~~only ask for approval once due to the consistent nature of the expense.~~

Josh - Good point. I rephrased it. -->

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.

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==== Cessation of Credit Card use ====

Credit card cessation is required when:

Credit card use cessation is required when:

* Violation, or violations, of policy threaten KOI’s sustainability and going concern

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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.

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 account~~.

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:

@@ Line 3: / Line 3: @@
 Adopted by Board of Directors of KOI on: TBD
-Review cadence: Semi-annually
+Review cadence: Semi-
 == Purpose, scope, and definitions ==
 === Purpose ===
@@ Line 13: / Line 12: @@
 * For compliance with grants
 * For compliance with audits
-* For reference by KOI volunteers
+* For reference by KOI
 === Recognition of Capitalism and Harm ===
@@ Line 72: / Line 71: @@
 == 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).
-* '''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
+'''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.)
-* '''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).
+'''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.
-* '''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.
-* '''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.
+'''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.
+'''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 ===
@@ Line 88: / Line 94: @@
 '''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.
+'''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.
@@ Line 162: / Line 168: @@
 Internal controls prevent fraud and ensure proper spending of the funds of KOI.
-=== Separation of Powers ===
+=== Separation of Duties ===
-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.
+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 powers in a transaction process:
+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.
-* '''Materiality'''
+The most dangerous duty to have combined with another is authorization.
-** Materiality for evacuee expenses
-** Materiality for non-evacuee expenses
+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 ===
@@ Line 360: / Line 404: @@
 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:
+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:
-=== Office Applications - Google Docs ===
+*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 ==
@@ Line 418: / Line 518: @@
 * 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.
+* Withdraws from the Petty Cash account will need two signatories.
 == Organization Budgeting ==
@@ Line 434: / Line 534: @@
 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 draft budget should be available on an accessible platform where changes can be tracked, and collaborated.
 The following committees are responsible for:
@@ Line 445: / Line 545: @@
 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.
+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.
@@ Line 486: / Line 593: @@
 ===== 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.
+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.
@@ Line 656: / Line 763: @@
 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 ===
@@ Line 726: / Line 846: @@
 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<!-- recommend "service" --> such as Venmo, Cash App, Paypal, etc.
+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.<!-- Recommend "only need approval for the first instance" or similar. Also perhaps add something about needing re-authorization if the cost of the recurring expense changes beyond a set percentage of the primary amount.
-Credit card holders may use the credit card for recurring expenses, and may<!-- Recommend "only need approval for the first instance" or similar. Also perhaps add something about needing re-authorization if the cost of the recurring expense changes beyond a set percentage of the primary amount. --> only ask for approval once due to the consistent nature of the expense.
+Josh - Good point. I rephrased it. -->
 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.
@@ Line 750: / Line 872: @@
 ==== Cessation of Credit Card use ====
-Credit card cessation is required when:
+Credit card use cessation is required when:
 * Violation, or violations, of policy threaten KOI’s sustainability and going concern
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 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<!-- Recommend noting more explicitly that all three are required. --> 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.
+Only the board treasurer, the board chair, or the executive director<!-- Recommend noting more explicitly that all three are required. - Clarifying that only one is needed to deny CC usage. --> 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<!-- Close the account, or just the card? -->.
+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:

KOI Financial Policies and Procedures: Difference between revisions

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