Financial Policy
Purpose
• The purpose of this St. Monica Dads’ Club Finance and Budget Policy (“Policy”) is to provide clear guidance and direction with respect to the Dads’ Club financial matters. If there are any discrepancies between this Policy and the Dads’ Club Constitution, the Constitution takes precedence.
Annual Budget Preparation
• The Dads’ Club Executive Board (“Executive Board”) is responsible for the preparation and submission for approval of its Annual Budget. In preparation for its Annual Budget, the Executive Board should obtain input from the Pastor, the School Principal, the Business Manager, the Athletic Director, Committee Chairs, and any others it may choose. The Dads’ Club Budget shall be on a cash basis. The fiscal year will be from August 1 to July 31 each year. The Annual Budget shall be divided into the following categories, at a minimum: Net Revenues from Major Fund-Raising Functions. Identify the projected sources and uses of cash for each major profit-making fund-raising activity planned for in the coming year, and the net profit from each activity. The Expense Budget shall include the following categories at a minimum: Items Included in the St. Monica Catholic School Advisory Council Budget, St. Monica School (SMS) Athletic Expenditures (not in school budget), Other Expenditures Paid for the benefit of SMS Dads’ Club, Expenses Past Year and Future Year Revenues, and Expenses Change in cash position, Beginning cash and investments, Ending cash and investments. The Annual Budget shall include comparisons to the prior year’s budget and the prior year’s actual. If additional funds are available at the end of a fiscal year, the funds shall be carried forward and made available for use in future years (see section on Retained Revenues and Investment of Dads’ Club Funds).
Annual Budget Presentation
• The Annual Budget will be approved by the Dads’ Club Executive Board before its presentation to and approval by the General Membership at the first General Membership meeting each fiscal year (normally scheduled in August). The Annual Budget will be presented to the St. Monica Catholic School Advisory Council in August each year.
Monthly Reporting
• A Financial Report, prepared by the Treasurer, shall be presented at each Dads’ Club General Membership meeting. The Financial Report shall include at a minimum, a comparison of actual year-to-date revenues and expenditures with the budgeted year-to-date revenues. Each month, the Treasurer shall provide to the President a detailed trial balance that provides the list of all deposits made and checks written in the past month. The President shall review the trial balance and have the Treasurer correct any classification errors or omissions.
Expenditure Authority
• Once the Annual Budget is approved by the General Membership, the
Executive Board may disburse funds up to the totals of each major Expense Category included in the approved Annual Budget. Expenditures beyond these levels require the approval of the Dads’ Club General Membership as described in the Constitution.
• Non-Executive Board members, making approved purchases on behalf of the Dads’ Club, are limited to a maximum expenditure of $1,000.00 using a personal form of payment (i.e. personal check, business credit card), unless specifically granted an exemption by the President, Vice-President or Treasurer. All expenditure’s over $1,000.00 will be paid by the Treasurer in a form that the Treasurer sees most fitting.
Non-Budgeted Funding Requests
• Non-Budgeted Funding Requests exceeding $250 must be presented in writing to an Executive Board member and must be received by the President no later than 10 days prior to a regularly scheduled General Membership meeting. The Executive Board will review all requests and ensure that input from the School Principal has been solicited relative to the inherent benefits of the proposed project. Incomplete requests will be returned to the individual submitting the request for revision or completion. The Executive Board will prioritize all properly submitted requests for presentation to the General Membership. Budgeted Funding Requests of $250 or less may be approved by the Executive Board and reported to the General Membership at the next regularly scheduled meeting. Funding requests must include: A detailed description of the project, the benefits to be received by St. Monica School or the Dads’ Club, the total cost of the project, the amount requested from the Dads' Club, and the date that the funds will be needed. All Non-Budgeted Funding Requests approved by the Executive Board will be presented at a General Membership meeting. The proposed budget amendment should be distributed to the Club at least seven days prior to the meeting. A reasonable discussion period will be allowed for each funding request. Upon completion of discussion of all Executive Board approved funding requests, a General Membership vote for approval on each individual request over $250 will be conducted. A simple majority of members in attendance is required for approval.
Independent Financial Review
• The Executive Board and Treasurer are responsible to ensure that adequate documentation is maintained such that an independent party could ascertain that all revenues were collected and properly reported, and all expenditures were made for valid invoices and properly reported. At the end of each fiscal year, the Dads’ Club books shall be reviewed by a party who is independent of the Treasurer and who has knowledge of accounting to determine the accuracy of reported revenues, expenditures, and the ending cash and investment position. A standard financial review checklist shall be developed and used for the review. Prior to the August meeting, the reviewer shall make a written report to the Executive Board and the School Principal stating his/her findings including any improvement recommendations. The report will be made available to any Dads’ Club member that requests it.
Annual Reporting
• The final Financial Report shall be presented to the General Membership at the first Dads’ Club meeting of the following fiscal year (normally held in August). A final Financial Report will be presented to the School Board summarizing actual revenues and expenditures and variances from the budgeted amounts.
Retained Revenues and Investment of Dads’ Club Funds
• Retained Revenues is the amount of cash and investments at the end of a fiscal year that is available to fund future Dads’ Club expenditures and activities. The Dads’ Club checking account should be maintained in an interest-bearing account, unless a non-interest-bearing account is less costly due to fees. If Retained Revenues are considered sufficient by the Executive Board, (i.e., more than necessary to fund the operations of the club through the major fund-raising events) a portion of the Retained Revenues may be invested, but only in certificates of deposit, subject to the signature authority described below. The Executive Board is responsible for determining the amount of cash necessary in the checking account and in the Investment Account each year based on the expected cash flow needs of the Club. Such decisions will be reported to the General Membership and recorded in the minutes of the Dads’ Club meetings.
Check and Investment Signatures
• The Dads’ Club Treasurer shall sign all checks. The St. Monica School principal or his/her designee, the Dads’ Club President, and the Dads’ Club Vice President shall be the only other authorized signers on all accounts of the Dads' Club. All handwritten checks and any Investment Account(s) shall require two authorized signatures. For electronic checks, where having two authorized signers is not technically possible, approval by two authorized signers shall be memorialized digitally in an appropriate manner (i.e. email chain). The checks should be completed by the Dads’ Club Treasurer in the name of the payee and in the correct amount of the applicable invoice prior to any signature. Both check signers shall review the invoices, then sign the checks or approve digitally for each such invoice. Under no circumstances may any one of the check signers sign blank checks.
Bank Statements, Bank Reconciliations, and Voided Checks
• Bank statements and Investment Account statements may be received online by the Treasurer; however at least one other check signer shall have access to and review the bank statements regularly. The President shall review the bank reconciliation prepared by the Treasurer each month and have on-line access to the account for periodic review. Voided checks shall be retained by the Treasurer.
Records of Dads’ Club
• The Treasurer shall keep the books and records of the Dads’ Club in good order. Copies of all bank reconciliations, invoices, deposits and supporting information shall be retained in a manner that facilitates easy independent review. Past Dads’ Club financial records shall be maintained by the current Treasurer for a minimum of three years.
Future Policy Changes Proposed
• Amendments will be reviewed by the Executive Board prior to submission to the general membership. Amendments will be made at a general membership meeting of the Dads’ Club when approved by two-thirds vote of the attending members in good standing. Any proposed changes to this Policy must be read aloud to the General Membership at the meeting immediately preceding the meeting on which the vote is taken. The reasons for proposed changes should be discussed and circulated via e-mail in red-line format to all active members through the normal Dads’ Club e-mail system at least two weeks prior to the meeting at which it is being discussed and read.
Effective Date August 16th, 2018