KOI Financial Policies and Procedures: Difference between revisions
Removed capitalization of non-proper nouns, updated formatting of lists here and there, made some minor technical fixes ("International Revenue Service" to "Internal Revenue Service"). |
JoshFreese (talk | contribs) →Separation of Powers: Added the record keeping section. →Budgeting: Added in some content regarding the budget policy and a timeline. |
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* '''Authorization''' – Authorization is the power to approve a transaction. These can include expense approvals, check signatory powers, contract signatory powers, payroll initiation, etc. | * '''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, | * '''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''' | ||
** Materiality for evacuee expenses | ** Materiality for evacuee expenses | ||
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== Cash Management == | == Cash Management == | ||
== Organization Budgeting == | == 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 === | === 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. | |||
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 === | === Budgeting Procedure === | ||
== Fund Management == | == Fund Management == | ||