Financial Policy Statements - Revised 2006

1. General
   1. Authorized signatories: All cheques issued by the association shall be signed by two executive members or any one of the executive and either the bookkeeper or the administrator. The bookkeeper can pay approved invoices and government remittances using Internet banking but must present information on those payments to those attending the next cheque signing.
   2. Establishing Lines of Credit: All lines of credit applications are to be forwarded to the HIRRA treasurer for approval and must be signed by HIRRA’s authorized signatories and approved by the general assembly.
   3. Annual Audit: The audit shall be commenced in the fall each year and shall be completed with a report to the annual general meeting of the association held no later than March. The executive shall recommend a qualified auditor for approval by the members at the annual general meeting.
   4. HIRRA committee treasurers or chairs are required to inform the executive immediately if the service area is forecast to be over budget and the associated reasons.
      
   5. The executive treasurer will be available to guide any committee, at their request, through the budgeting, five-year planning process for their service area.
      
   6. The executive is responsible for the orientation and training of new committee members and managers to ensure they are aware of and understand HIRRA policies and procedures.
      
      
2. Committee Invoice Approval

   It is the policy of the association that no invoices will be paid unless approved for payment by an authorized committee member or employee.

   Procedure

   1. Each year, committees must pass a motion delegating invoice approval authority to one or more of its members or to one or more management employees. A record of that motion together with sample signature(s) must be given to the bookkeeper.
   2. Approved invoices will have been stamped with the approval stamp of the committee. The approval stamp will include space for signature of the authorized signer, the approval date and the budget line item to which the invoice is to be posted.
   3. All expenditures approved for payment must have been budgeted. Prior to committing to a non-budgeted expenditure, committees or delegated management personnel will first take the appropriate steps to amend the budget. Approval for payment of such expenditure must include, in addition to the approval stamp, a copy of the approved amended budget.
   4. Budget changes involving tax-funded expenditures must be approved by the funding agency. Budget changes involving expenditure of funds from present or past local fund-raising or donations must be approved by the HIRRA executive. The executive may, at its discretion, refer the proposed budget change to the general assembly
3. Core Services & Reserves
   1. HIRRA’s core administration and bookkeeping services, including the annual audit, bank charges, director’s liability insurance, administrator and bookkeeper wages, publicity, meetings, executive development, mediation, office supplies, phone, and office equipment are funded through a cost sharing system applied to all HIRRA operating revenue sources.
   2. The executive committee shall conduct an annual review of all services to determine allocations to core services and shall inform committees of their core service allocations during annual budget preparations in the fall of each year.
   3. Rental revenues from the RCMP are allocated to the general fund; Clinic rental revenues are allocated to the Clinic reserve fund. HIRRA shall seek to maintain as a general fund, an amount equal to 10% of the association’s total annual revenues for the latest year. To the extent that the general fund exceeds this, the balance shall be allocated to a capital reserve fund.
4. Grant Funding

   In order to fund activities, committees may choose to seek grant funding.Prior to making applications for such funding, committees shall submit project proposals to the executive for review. The executive shall assure that a summary of the project proposal be presented to the HIRRA assembly for approval. Executive members, signatories for the association, shall sign applications and agreements associated with any grant funding.

5. Management of Discretionary Funds
   From time to time HIRRA committees raise funds through local community initiatives, for example, the community quilt raffle and the sale of T-shirts and videos at the recycling depot.

   It shall be the policy of HIRRA that such funds are deposited into designated sub accounts of HIRRA’s Union Bay Credit Union account,
   # 37390, and that the expenditure of these funds are subject to the usual financial controls.

6. Capital Acquisitions Management
   
   New Policy
   
   1. All capital acquisitions, whether new or replacement equipment or improvement projects must have written budget approval, both by the HIRRA assembly and by the funding agency, generally the Regional District of Comox Strathcona.
   2. . Equipment having a purchase price greater than $1000 must be accompanied by three quotes and supporting documentation for the selected quote.
   3. Improvement projects, whether renovations or new construction, that are forecast to cost more than $5000.00, must be offered through public notice in local publications, and more broadly advertised, if no local response.
   4. At the conclusion of the proposal evaluations, the executive committee, after consultation and on recommendation of the management committee, will authorize contracts or work agreements detailing the work of the project. Regional district staff will be consulted throughout, for all capital projects within their purview.
   5. Project management will include a project specific budget. The bookkeeper will track costs and, at least monthly, will prepare a report on those costs for review by the executive, management committees and staff.

JLeB/November 7, 2006

In the event of a conflict between the wording of the Policy on this page and the wording of the paper copy kept in the central HIRRA file, the wording of the paper copy shall prevail.

 

Contact Us
Mail:	Free Post at the Co-op on Hornby Island or PO Box 16, Hornby Island, BC, V0R 1Z0
E-mail	Janet LeBlancq (Administrator)