Internal:Fiscal control policy

Status: Under Review

ARTICLE I - PURPOSE

1. Purpose. The purpose of this Fiscal Control Policy ("Policy") is to ensure that Wikimedia District of Columbia (the "Corporation") conducts financial affairs in a manner consistent with applicable laws and best practices for nonprofit organizations.

2. Definitions. As used in this Policy, the following terms have the indicated meaning:

(a) "Prohibited Activity" shall refer to any activity not permitted to be carried on by a corporation exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code; or not permitted to be carried on by a corporation, contributions to which are deductible under Sections 170(c)(2), 2055(a)(2) and 2522(a)(2) of the Internal Revenue Code.

(b) "Prohibited Expense" shall refer to any expense incurred in the course of carrying out a Prohibited Activity.

(c) "Self-Dealing Expense" shall refer to any expense claimed on the basis of a transaction in which the person claiming such expense has a financial interest, as defined in the Conflict of Interest Policy.

(d) "Charitable Purpose" shall refer to the purpose of Wikimedia District of Columbia, as defined in Article II of the Bylaws.

ARTICLE II - BUDGETING

1. Drafting and Initial Approval. Thirty days prior to the beginning of each fiscal year, the Treasurer shall prepare a draft Annual Budget, which shall contain a good-faith projection of the revenues, expenses, and cash balances for said fiscal year. No later than the first day of the new fiscal year, the Board of Directors shall review said draft Annual Budget and recommend it for the approval by the members of the Corporation.

2. Budgetary Gaps. In the event that a new fiscal year begins and no Annual Budget has been approved by the members of the Corporation, spending shall continue at the levels authorized by the Annual Budget for the prior fiscal year. Best efforts shall be made to reconcile such expenditures with the Annual Budget for the new fiscal year once one is approved.

ARTICLE III – FUNDS

1. Bank Accounts. The Corporation shall maintain a checking account at Wells Fargo Bank, constituting the general treasury of the Corporation. The President and the Treasurer may open or cause to be opened such additional accounts as may be necessary to comply with donation agreements the Corporation may enter into, provided that such accounts are reported to the Board of Directors. All bank accounts shall be held in the name of the Corporation, shall use the Corporation's Employer Identification Number, and shall list only the President and the Treasurer as account signers.

2. Payment Instruments. The President and the Treasurer shall each be granted a debit card and access to the Corporation's online banking and merchant services. The Treasurer shall additionally receive access to the Corporation's check stock. The President and the Treasurer shall keep payment instruments secure and prevent their misuse. Cash or other payment instruments shall not be used without the prior authorization of the Board of Directors.

ARTICLE IV - EXPENDITURES AND DISBURSEMENTS

1. Authorization of Expenditures. Expenditures shall only be authorized through a resolution of the Board of Directors, or by the President pursuant to the Delegation of Authority Policy.

2. Rationale for Approving Expenses. When determining whether to approve an expenditure, the person or persons responsible for approving it shall consider whether the expense described by the claim is consistent with the Charitable Purpose and is reasonable.

3. No Self-Approval. No person shall approve an expenditure incurred or claimed by that same person, notwithstanding any authority to approve expenses which said person may otherwise hold.

4. Unallowed Expenses. No Prohibited Expense or Self-Dealing Expense shall be approved.

5. Disbursement of Funds. Following the authorization of an expenditure, its disbursement shall take place through one of the following methods:

(a) Small Disbursements. The President may make disbursements of sums under $100 without the prior approval of the Treasurer, provided that such expenditures are authorized by the Annual Budget. All disbursements made directly by the President shall be reported promptly to the Treasurer with appropriate documentation.

(b) Disbursement by Treasurer. For disbursements of $100 or greater, the Treasurer shall carry out the disbursement, provide written or oral authorization to the President to carry out the disbursement, or object to the disbursement within seven business days of an expenditure having been authorized. The Treasurer may object to a disbursement if it would constitute an improper use of funds or would jeopardize the financial well-being of the Corporation; review of disbursements in accordance with these criteria shall satisfy the Treasurer's duty of due diligence.

(c) Disbursement in the Absence of the Treasurer. Should the Treasurer fail to take any action on a requested disbursement within seven business days of the request, the President shall be authorized to make the disbursement at his or her own discretion. All disbursements made pursuant to this provision shall be promptly reported to the Board of Directors with appropriate documentation, and the Treasurer shall be notified that such action was taken. If the Treasurer anticipates that he or she will be unavailable to render decisions regarding disbursements for an extended period of time, he or she is encouraged to inform the Board of Directors of such absence and to allow for the appointment of a temporary replacement.

6. Supporting Documentation. Fund disbursements shall be accompanied by receipts for any individual expense exceeding the sum of five dollars ($5). Should a receipt not be available, the claim shall be accompanied by a full explanation of the expense and an explanation as to why the receipt is unavailable. All receipts must include the name of the vendor, the location, the date, and the dollar amount. The following forms of receipts are considered acceptable:

(a) Original receipt completed by the vendor;

(b) Copy of credit card slip; or

(c) Credit card billing statement, when used for expense reimbursement as described in this Policy.

ARTICLE V – EXPENSE REIMBURSEMENT

1. Approval Required. Wikimedia District of Columbia shall only reimburse expenses incurred by individuals or organizations other than the Corporation when they are made in the course of conducting official Corporation business and when they comply with the requirements of this Policy. No claimed expense shall be reimbursed unless and until such approval is granted.

2. Authority. The Board of Directors, or any person or committee authorized by the Board of Directors to make expenditures under this Policy, shall have authority to approve expense claims. In the event of a claim by the President, the Treasurer shall have the authority to approve the claim.

3. Submission of Claims. All claims for reimbursement of expenses shall be submitted to the President no later than thirty (30) calendar days following the date on which the associated expense was incurred. In the event that reimbursement for multiple expenses is requested in one submission, the deadline shall be calculated based on the earliest of the included expenses.

4. Form of Claim. An expense claim shall consist of a completed expense claim form or grant report form, together with such supporting documentation as necessary to verify the claimed expenses. Expense claims shall be submitted in writing. The President may, at his or her discretion, accept an electronic copy of of an expense claim in lieu of a physical copy, in which case such electronic copy shall be considered equivalent to the corresponding physical copy.

5. Incomplete Claims. All expense claims shall include all the details necessary to process the reimbursement and to comply with this Policy. Any expense claim that is incorrect, incomplete, or lacks acceptable supporting documentation shall be returned to the person submitting such claim.

6. Processed Claims. If a claim for reimbursement is approved, reimbursement shall be issued within thirty (30) calendar days, consistent with the Fiscal Control Policy. If a claim for reimbursement is not approved, the President shall return the claim to the person submitting it, together with an explanation for why approval was not granted, within thirty (30) calendar days.

ARTICLE VI - DONATIONS

1. Processing Receipts. The Treasurer shall be responsible for receiving cash and other payments, for depositing payments into the appropriate bank account, and for providing receipts for transactions. Officers other than the Treasurer who receive payments on behalf of the Corporation shall remit such payments to the Treasurer for processing.

2. Recognition of Donations. For donations in the amount of $25 or greater, the Treasurer shall prepare a letter acknowledging the donation as well as any restrictions or conditions placed on the donation. The letter may be sent electronically at the discretion of the Treasurer.

3. Restrictions. Restrictions or conditions placed on a donation shall be noted in the Corporation's financial records. In the event that the Corporation cannot adhere to a stipulated restriction, the donation shall be returned. In the event the donor's intent is unclear or communicated orally, the Treasurer shall request written confirmation regarding the donor's intent. The nature of the restriction, including its being lifted altogether, shall be altered only with the written permission of the donor.

4. Solicitations. All solicitation documents shall accurately report on the tax deductibility of donations made to the Corporation. Should a specific program of the Corporation be mentioned in such solicitations, donations resulting from these solicitations shall be restricted toward the use of the mentioned program unless the donor agrees to waive such restriction or if the solicitation includes an explicit disclaimer that donations will not be restricted.

5. Cash. Precise records shall be kept of cash received and disbursed in the course of operations. Cash received shall be promptly deposited into the Corporation's bank account.

ARTICLE VII - ACCOUNTING

1. Accounting Standards. The Treasurer shall maintain financial records that are consistent with United States Generally Accepted Accounting Principles (US GAAP), particularly with respects to FAS 116 and FAS 117.

2. Chart of Accounts. The Treasurer shall maintain a chart of accounts consistent with the line items designated in the Annual Budget.

3. Accrual Basis. The Treasurer shall recognize revenues upon their being pledged, regardless of the timing of the receipt of cash. The Treasurer shall recognize expenses upon their being incurred, regardless of the timing of the expenditure of cash. Invoices and similar documents shall be sufficient to demonstrate the accrual of revenues and expenses under this Policy.

4. Monthly Reporting. The Treasurer shall prepare and submit a report to the Board of Directors in advance of every regular meeting of said Board. The report shall include, at a minimum, the Corporation's revenues and expenses relative to the Annual Budget, as well as the balance sheet of the Corporation.

5. Capital Depreciation. At the end of each fiscal year, the Treasurer shall calculate depreciation for the Corporation's fixed assets. Depreciation for a fixed asset shall accrue over a five-year period and shall be calculated using the straight-line depreciation method unless the Treasurer determines in his or her discretion that an alternative period or calculation method is appropriate for a specific asset or category of assets. All depreciation calculations shall be documented in the Annual Financial Report of the Corporation.

6. Closing of Books. On the last day of each fiscal year, the Treasurer shall close the Corporation's books and report the revenue and expenses for the fiscal year.

7. Documentation. The Treasurer shall store documentation regarding the Corporation's finances on a secure server, such that the Board of Directors and the Audit Committee may access the documents as necessary. Physical documents shall be stored in locations known to the Board of Directors and shall be digitized.

8. Outside Accounting Services. The Treasurer may delegate accounting and bookkeeping duties to an outside accounting service as may be retained by the Board of Directors. Said delegation shall not relieve the Treasurer of his or her duty of care.