Difference between revisions of "Fiscal control policy"

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{{header title|title=Fiscal control policy|status=review}}
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{{header title|title=Fiscal Control Policy|toc=yes|status=review}}
 
 
==ARTICLE I - PURPOSE==
 
==ARTICLE I - PURPOSE==
1. <u>Purpose</u>. The purpose of this policy is to ensure that Wikimedia District of Columbia manages its financial resources in a manner consistent with law and best practices for U.S. nonprofit organizations.
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1. <u>Purpose</u>. 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.
   
 
==ARTICLE II - BUDGETING==
 
==ARTICLE II - BUDGETING==
1. <u>Drafting and Initial Approval</u>. Thirty days prior to the beginning of a fiscal year, the Treasurer shall prepare a draft budget. The budget represents a good faith projection of the revenues, expenses, and cash balances for the fiscal year. At or before the beginning of the new fiscal year, the Board of Directors shall review the draft and recommend a budget for the approval by the members.
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1. <u>Drafting and Initial Approval</u>. 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. <u>Budgetary Gaps</u>. In the event a new fiscal year begins and no budget has been approved by the members, spending shall continue at levels authorized by the last approved budget. Best efforts shall be made to reconcile such expenditures with the new budget once one is adopted.
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2. <u>Budgetary Gaps</u>. 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 AND EXPENDITURES==
 
==ARTICLE III - FUNDS AND EXPENDITURES==
1. <u>Bank Accounts</u>. Wikimedia District of Columbia 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, using the Corporation's Employer Identification Number, and shall list only the President and the Treasurer as account signers.
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1. <u>Bank Accounts</u>. 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. <u>Authorization of Expenditures</u>. Expenditures shall only be authorized by the President or through a resolution of the Board of Directors, subject to the restrictions established by the [[Bylaws]] and the [[Delegation of authority policy|Delegation of Authority Policy]].
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2. <u>Authorization of Expenditures</u>. Expenditures shall only be authorized through a resolution of the Board of Directors, or by the President pursuant to the [[Delegation of authority policy|Delegation of Authority Policy]].
   
3. <u>Disbursement of Expenditures</u>. Following the authorization of an expenditure, its disbursement shall take place through one of the following ways:
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3. <u>Disbursement of Funds</u>. Following the authorization of an expenditure, its disbursement shall take place through one of the following methods:
: (a) <u>Small Disbursements</u>. The President may carry out disbursements of under $100 without approval of the Treasurer, provided that such expenditure is authorized by the budget. All disbursements made directly by the President shall be reported promptly to the Treasurer with appropriate documentation.
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: (a) <u>Small Disbursements</u>. 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) <u>Disbursement by Treasurer</u>. For disbursements of $100 or greater, the Treasurer shall within seven business days carry out the disbursement, provide written or oral authorization to the President to carry out the disbursement at his or her own discretion, or object to the disbursement. 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.
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: (b) <u>Disbursement by Treasurer</u>. 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.
: (c) <u>Disbursement in the Absence of the Treasurer</u>. Should the Treasurer fail to take any action in seven business days, the President is authorized to carry out the disbursement at his or her own discretion. Disbursements carried out under this authority shall be promptly reported to the Board of Directors with appropriate documentation. 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.
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: (c) <u>Disbursement in the Absence of the Treasurer</u>. 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. 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.
   
4. <u>Payment Instruments</u>. 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 except where subsequently authorized by the Board of Directors.
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4. <u>Payment Instruments</u>. 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.
   
5. <u>Related Policies</u>. The procedures for expense reimbursement and grant disbursement are documented in the [[Expense reimbursement policy|Expense Reimbursement Policy]] and the [[Grants policy|Grants Policy]] respectively.
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5. <u>Related Policies</u>. Expense reimbursement and grant disbursement shall be carried out in accordance with the [[Expense reimbursement policy|Expense Reimbursement Policy]] and the [[Grants policy|Grants Policy]], respectively.
   
 
==ARTICLE IV - DONATIONS==
 
==ARTICLE IV - DONATIONS==
1. <u>Processing Receipts</u>. The Treasurer shall be responsible for processing the receipt of cash and other payments, for depositing payments and gifts 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 payment to the Treasurer for processing.
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1. <u>Processing Receipts</u>. 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. <u>Recognition of Donations</u>. For donations of $25 or above, 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.
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2. <u>Recognition of Donations</u>. 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. <u>Restrictions</u>. 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, may be altered only with the donor's written permission.
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3. <u>Restrictions</u>. 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. <u>Solicitations</u>. All solicitation documents shall accurately report on the tax deductibility status 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.
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4. <u>Solicitations</u>. 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. <u>Cash</u>. 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.
 
5. <u>Cash</u>. 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 V - ACCOUNTING==
 
==ARTICLE V - ACCOUNTING==
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1. <u>Accounting Standards</u>. The Treasurer shall maintain financial records that are consistent with United States Generally Accepted Accounting Principles (US GAAP), particularly with respects to FASB 116 and 117.
   
1. <u>Accounting Standards</u>. The Treasurer shall maintain financial records that are consistent with the United States Generally Accepted Accounting Principles (U.S. GAAP), particularly with respects to FASB 116 and 117.
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2. <u>Chart of Accounts</u>. The Treasurer shall maintain a chart of accounts consistent with the line items designated in the Annual Budget.
 
2. <u>Chart of Accounts</u>. The Treasurer shall maintain a chart of accounts consistent with the line items designated in the budget.
 
   
3. <u>Accrual Basis</u>. 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 are sufficient to demonstrate the accrual of revenues and expenses under this policy.
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3. <u>Accrual Basis</u>. 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. <u>Monthly Reporting</u>. Each month, the Treasurer shall submit a report to the Board of Directors. This report shall include revenues and expenses relative to the budget, as well as the balance sheet of the Corporation.
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4. <u>Monthly Reporting</u>. 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. <u>Capital Depreciation</u>. 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 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 included in the annual financial report of the Corporation.
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5. <u>Capital Depreciation</u>. 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. <u>Closing of Books</u>. On the last day of the fiscal year, the Treasurer shall close the books and report the revenue and expenses for the fiscal year.
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6. <u>Closing of Books</u>. 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. <u>Documentation</u>. 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 a location known to the Board of Directors and be digitized promptly.
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7. <u>Documentation</u>. 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 a location known to the Board of Directors and shall be digitized promptly.

Revision as of 19:26, 5 December 2013

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.

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 AND EXPENDITURES

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. 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.

3. 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.
(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. 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.

4. 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.

5. Related Policies. Expense reimbursement and grant disbursement shall be carried out in accordance with the Expense Reimbursement Policy and the Grants Policy, respectively.

ARTICLE IV - 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 V - 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 FASB 116 and 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 a location known to the Board of Directors and shall be digitized promptly.