MBA Financial Policy

MBA Financial Policy

 

Approved June 21, 2018

 

Click here for PDF version of the policy

 

Definitions

  1. The following terms have these meanings in this Policy:
  1. Organization” refers to: Manitoba Badminton Association
  2. Representative refers to individuals employed by, or engaged in activities on behalf of, the Organization including: coaches, convenors, officials, staff members, contract personnel, volunteers, managers, administrators, committee members, and directors and officers of the Organization.
  3. Board” refers to the elected or appointed members of the Board of Directors of the Manitoba Badminton Association.
  4. President” refers to the member of the board appointed to this position.
  5. Vice-President” refers to the member of the board appointed to this position
  6. Treasurer” refers to the member of the board appointed to this position.
  7. Director” refers to any member elected or appointed to the Board of Directors of the Manitoba Badminton Association.
  8. Executive Director” refers to the individual employed by the Organization to this position.

 

Purpose

  1. The Organization will function as a Not-For-Profit organization and all fundraising, fees, sponsorships, and grants will be used for the on-going development and growth of the sport of badminton and related activities approved by the board.

 

  1. The purpose of this Policy is to guide the financial management practices of the Organization.

 

Budget and Reports

  1. The Board will develop and approve an annual budget which will reflect the Organization’s total anticipated expenditures and revenues.  The budget will reflect the Organization’s chart of accounts and classification of programs which will be updated as required by the Board.

 

  1. The Treasurer (or designate) will, at each meeting of the Board or at minimum quarterly, present an interim comparative financial statement (which includes actual revenues and expenditures compared to budget) and a balance sheet to the Board for approval.

 

  1. The Treasurer (or designate) will, at the Annual Meeting, present unaudited Financial Statements as required by applicable legislation and any other report as determined by the Board.

 

  1. The financial statements of the Organization will be audited by an auditor appointed in accordance with the by-laws of the Organization and presented to the members at the next following Annual General Meeting of the Organization.

 

  1. The Organization will file a T2 Corporation Income Tax Return each fiscal year.

 

Fiscal Year

  1. The Organization’s fiscal year will be as prescribed in the Bylaws.

 

Banking - Revenue

  1. The Organization shall establish a bank account, known as the general fund, with an approved and accredited financial institution that may be a Chartered Bank or a Credit Union and to which all monies received by the Organization shall be deposited and from which all approved expenditures will be disbursed.  Further, the Board shall provide the financial institution a list of authorized signing officers approved by the Board and updated list of signing officers annually.

 

  1. Registration/membership fees shall be reviewed annually by the Board; which shall approve fees for each year well in advance of the start of the registration/membership year.

 

  1. The Board may approve the investment of reserve or short-term excess funds with an approved and accredited financial institution and draw on these funds as required.

 

Bank Reconciliation

 

  1. The Bank Statements will be reconciled to the general ledger on a monthly basis. On a quarterly basis, the Treasurer (or a person granted signing authority under section 10) will review and initial a copy of the Bank Reconciliation to indicate their review and approval.

 

Petty Cash

  1. A petty cash fund not exceeding $100 may be established for small incidental cash purchases not to exceed $30 for each occurrence. When the cheque request is submitted for replenishment of the petty cash fund, it should include all receipts and indicate the total amount needed to bring the fund back up to $100.

 

Signing Officers

  1. All financial commitments, contracts, documents, or any other instruments in writing that require the signature of the Organization, shall be signed by at least two of the following:
  1. President
  2. Vice-President
  3. Treasurer
  4. Executive Director
  5. Any staff or director designated by the Board as a signing officer

 

  1. Any financial commitments that have been approved in the Organization’s budget may be executed as follows:
    1. Under $3,000 may be initiated by any one of the individuals listed in section 17.
    2. $3,000 and over by any two of the individuals listed in section 17.

 

  1. All cheques and payments from the general fund must be signed by any two (2) of the officers identified in section 15.

 

  1. No signing officer will sign any cheque to which they are a payee.

 

Electronic Banking

  1. Internet banking has become a very common banking practice that provides several distinct advantages, the Organization will ensure internal controls related to online banking are in place to ensure all internet banking transactions are consistent and comply with the Organization’s financial procedures (such as the type of allowable uses for online banking transaction, number of signers).   No one person should handle all of the transaction; the proper segregation of duties at all times must be followed. Authorized users need to consider the safe, secure and confidential storage of information and data, including the storage of PIN’s and security tokens where applicable.  Proper retention of all supporting materials and print outs transactions receipts must be maintained.

 

Expenses

  1. Authority to purchase goods and/or services require the following:
  1. All purchases over $3,000 must be approved by either the President or Treasurer (or designate).
  2. Purchases or commitments not included in the annual budget require the prior approval of the Board.
  3. With the exception of Sole Suppliers, at least two (2) quotes will be obtained or verified through supplier advertising, catalogues or other forms of verification such as email, phone or in writing for all purchases or contracts for goods and services over $1,000.

 

  1. All expenses submitted for payment must be supported by proper receipts/invoices and must be detailed and reconciled to budget items, projects, or activities of the Organization.  In addition:
    1. All invoices must be certified that the goods/services have been received or provided.
    2. Honorariums must be submitted for payment in the form as provided with details that include the recipient, services related to the honorarium, dates and amount.

 

  1. Any expenditure not included in the annual budget must be approved by the Board prior to incurring any such expenditure. Without the Board’s approval, such expenditure will not be paid by the Organization unless determined otherwise by the Board.

 

Accounts Receivable/Payable

  1. Accounts receivable terms are net thirty (30) days from the date of invoice. A surcharge may be levied for late payments.

 

  1. Accounts payable will be paid within the terms of the supplier invoice. Where no terms are specified, accounts will be paid within thirty (30) days of receipt of the invoice.

 

Credit Card

  1. With the approval of the Board, the Organization may acquire credit cards for the use of designated staff members who are required to make purchases on a regular basis for travel, accommodation, and other expenses related to their duties on behalf of the Organization.

 

  1. Credit card holders will be responsible for all charges made on credit cards issued in their name.

 

  1. Credit cards must only be used for authorized expenditures that include:
  1. Payment of actual and reasonable expenses incurred on authorized Organization business, including travel and accommodation, where it is not feasible for these costs to have been paid in advance of the expense being incurred or for the costs to be invoiced to the Organization.
  2. Purchase of goods or budgeted items.

 

  1. For the purposes of this Policy, expenses included in the Organization’s budget as approved by the Board are considered to be authorized. Expenses that fall outside the approved budget require prior Board approval.

 

  1. Credit cards are not to be used for any cash advances or personal expenses and may not be used for meal purchases except with prior authorization.

 

  1. All expenses charged to a credit card should be supported by a credit card receipt issued by the merchant and/or a detailed supplier invoice to confirm that the expenses are properly incurred on Organization business.

 

  1. In addition, the following  credit card responsibilities must be adhered to:
  1. Cardholders must:
  1. not allow another person to use the card
  2. protect the pin number of the card
  3. only purchase within the credit limit of the card
  4. notify the credit card company if the card is lost or stolen
  5. keep the card with them at all times, or in a secure location
  6. forward to the Organization’s Treasurer, on a monthly basis, all receipts for expenses charged to the card in the previous month
  7. surrender the credit card upon the cardholder ceasing to perform the role for which the card was issued
  8. forward the monthly credit card statement to the Treasurer for payment before the due date
  1. The Organization’s Treasurer (or appointed administrative staff) must:
  1. ensure that each credit card issued to an individual is paid in full on a monthly basis
  2. review and reconcile each credit card statement on a monthly basis
  3. bring to the attention of the Board any credit card expense which does not appear to be authorized under this policy
  4. recover from the cardholder any funds owing for unauthorized expenses

 

Expense Claims

  1. Representatives must submit expense claims in the prescribed format to the Treasurer (or designate) for personal expenses incurred in performing their duties for the Organization within 30 days of the event and no later that three months of incurring the expense. Generally, only expenses included in the Organization’s budget or pre-approved by the Organization’s Treasurer (or designate) will be reimbursed. Expense claims must include:
    1. The exact amount of each itemized expense
    2. The date on which the expense occurred
    3. The place and location of the expense
    4. The purpose of the expense
    5. A receipt for the expense

 

  1. Organization Representatives may submit expense claims to the Organization’s Treasurer (or designate) for travel and/or accommodation expenses for conferences, tournaments, provincial meetings, or national meetings; provided the expected expense reimbursement amount is pre-approved by the Organization Treasurer (or designate).

 

  1. Generally, no cash advances will be provided. If there is a need for a cash advance, a request must be made to the Treasurer for approval of the advance.

 

  1. Travel expenses will be reimbursed in amounts outlined in the following table:

 

Expense

Rate

Notes

Travel – Personal Vehicle Mileage Rate

$0.40 per kilometre

Distance log required

Travel – Air

Lowest economy

Receipt required

Breakfast within Province

$7.00 

Receipts not required

Lunch within Province

$10.00 

Receipts not required

Dinner within Province

$16.00 

Receipts not required

Full Day within Province

$33.00 

Receipts not required

Breakfast out of Province

$10.00

Receipts not required

Lunch out of Province

$15.00

Receipts not required

Dinner out of Province

$25.00

Receipts not required

Full Day out of Province

$50.00

Receipts not required

Accommodation

Double occupancy

All personnel unless specified

Accommodation

Single occupancy

Only the President

Accommodation with Friends or Family

$40.00 / day

Receipts not required

Incidental expenses

Actual cost

Receipt required

 

  1. The Organization will not reimburse travel expenses exceeding the above-specified rates without prior approval of the Board.  Where costs above the specified rates are approved, receipts must be provided.

 

Travel and Accommodation Expenses

  1. Air travel is to be booked through the Organization whenever possible. Air travel not included in the Organization’s budget is to be approved in advance by the Board. In no circumstance will fares above the economy fare be reimbursed. Car travel will be reimbursed at the mileage rate specified in this Policy and will not exceed cost of available economy airfare or vehicle rental.

 

  1. Car rentals when appropriate, will be limited to compact size cars (or mini-vans for group travel) through an authorized agency at the most economical rate possible. Individuals are expected to travel as foot-passengers where possible. Advance booking fees will be reimbursed where required by the nature and purpose of the travel.  For car rentals, it is the responsibility of the renter to ensure that adequate Collision, Comprehensive and Third Party Liability Insurance properly covers the vehicle.  Whether insurance is purchased through the rental agency, MPI, or by way of credit card, the renter must ensure that the type of vehicle rented and/or its intended use does not conflict with the rental company or credit card provided insurance guidelines.

 

  1. Whenever possible, the Representatives who are attending the same event should travel together and stay with friends or event organizers where possible. However, only the driver may submit car-related expenses.

 

  1. Accommodation costs will be reimbursed based on single occupancy for the Organization’s President. All other accommodation will be reimbursed based on double occupancy. Reimbursement for accommodation will be limited to reasonable amounts in the particular circumstances with consideration given for proximity to business events and for location of events. Hotel receipts will be required for reimbursement, as a charge card slip does not provide sufficient information.

 

  1. The Organization will not provide reimbursement for parking tickets, speeding tickets or fines for any other violations.

 

  1. A Representative attending an event where meals are not provided may request a per-diem allowance before attending the event. Per-diem rates are listed in the above table and do not require receipts. Individuals will not be reimbursed where meals are provided as part of an event or where meals are included in the accommodation rate.

 

Entertainment Expense

  1. Entertainment expenses are reimbursable when the expense is directly related to business.  These expenses include the purchase of a meal for a business associate or associates while conducting business.  A senior employee shall pay the bill and submit it on his/her expense report.  Original receipts must support all claims and include names of attendees and purpose of the expense.  Maximum allowable tip amount shall not exceed 15%

 

Other Expenses

  1. Organization Representatives may be reimbursed for long distance telephone calls related to the Organization’s activities. Expense claims for telephone expenses must include the name of the person called, their connection to the Organization, and the purpose of the call. Telephone expenses in excess of $80.00 will not be reimbursed.

 

 

  1. Actual and reasonable expenses for items such as parking, telephones and copying may be reimbursed. Receipts must be provided for all such expenses.

 

Signing Authority – Other Documents

  1. In the absence of any resolution to the contrary passed by the Board, the deeds, contracts, securities, bonds and other document(s) require the signature of two signing officers. The Board may authorize other persons to sign on behalf of the Organization.

 

  1. Copies of all deeds, contracts, securities, bonds and other document(s) requiring the signature of the Organization will be made available for review by the Board if requested.

 

NSF Charges

  1. The Organization will levy a twenty-five dollar ($25.00) fee on NSF Cheques. This penalty will be waived if the cheque was returned in error from the Bank (written confirmation required).  Waiver of penalty for reasons other than bank error shall be considered on a case-by-case basis.  An individual who has a repeat occurrence of a returned cheque will not be allowed to pay with a cheque in the future.  Accepted methods of repayment will be cash, certified cheque or money order

 

Replacement Cheques

  1. Requests for the replacement of lost or missing cheques will not be processed until after the next applicable month-end reconciliation has taken place.

 

  1. Replacement of lost cheques will be assessed a five dollar ($5.00) administration fee.

 

  1. Lost or missing cheques that have not been claimed within six months from date of issue will not be reissued.

 

Equity/Operating Reserve

  1. The target for the minimum operating reserve fund or minimum equity level is three (3) months of the Association’s average operating costs.  The calculation of average monthly operating costs includes all ongoing committed expenses, for example salaries & benefits, rent, storage, office administration costs such as phones, internet, and established programming costs. The amount of the equity/operating reserve will be reviewed annually after the fiscal budget is approved.
  2. The Board may maintain an Endowment fund to be managed by the Winnipeg Foundation and may draw on the proceeds from the Endowment funds:
    1. to provide assistance in the form of grants to support the goals of members of the association
    2. to sustain the activities of the Organization.

 

Name of PSO: Manitoba Badminton Association

 

Board Approval Date:__________________