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2001-04: Financial Procedures

The board recommends that the Membership adopt the financial procedures for financial record keeping in the organization.

Provincial or Territorial Affiliates, Chapters and Divisions

a) Provincial or Territorial Affiliates, Chapters and Divisions must maintain accurate financial records as per Bylaws 23D, 27D and 30D.

i) Provincial or Territorial Affiliates, Chapters and Divisions must record all financial transactions on an electronic or manual spreadsheet or AccPac Simply Accounting software program.

ii) All Expense and Revenue transactions must be posted using the categories provided in the chart of accounts attached as Appendix 1.

b) Expense Transactions:

i) All expenses must be paid by cheque drawn on the account of the Provincial or Territorial Affiliate, Chapter or Division. NO expenses shall be paid in cash except through the use of a Petty Cash account.

ii) All expense transactions must be recorded with the correct date of the transaction, payee, net amount, gst amount, total amount, cheque number used, category and memo clearly explaining the expense.

Sample:

03/05/00 ABC Supplies 10.00 .70 10.70 Office Expenses
Memo: Purchased printer paper

iii) Where an expense category is not listed in the chart of accounts, or is uncertain, this entry shall be posted to the Miscellaneous category.

iv) Invoices received must be paid by the vendor due date, or net/30 where no due date is apparent.

c) Use of Petty Cash;

i) Petty cash account shall be used for small consumable purchases only, i.e.Postage stamps, courier costs, pens, paper, etc.

ii) Where a petty cash account is used, the cash amount held should not exceed $100.00.

iii) All petty cash funds shall be held and disbursed by the elected treasurer of the Provincial or Territorial affiliate, Chapter or Division.

iv) Petty cash disbursements must be recorded on a petty cash disbursement slip, all receipts for purchases from petty cash should be kept in an identified envelope in the petty cash box.

v) The petty cash slip must be completed prior to replenishing the petty cash amount.

Sample:

Petty Cash Fund: $100.00
Total Receipts: $95.00
Balance: $5.00
Replenish PC: $95.00 CHQ # 1234

vi) All petty cash receipts must be posted to the correct accounts as per the chart of accounts attached as Appendix "A".

d) Revenue Transactions:

i) All revenue received must be made payable to the Provincial or Chapter Affiliate, Chapter or Division.

ii) Funds received must be deposited to the bank account of the Provincial or Chapter Affiliate, Chapter or Division in a timely manner.

iii) Funds received shall be posted using the revenue accounts in the chart of accounts attached as Appendix "A".

iv) Cash revenue received may not be used to reimburse expenses or for expense purchases, cash revenue must be deposited to the bank account of the Provincial or Territorial Affiliate, Chapter or Division in a timely manner.

e) Donations Received

i) Donations received by Provincial or Territorial Affiliate, Chapters or Divisions that require tax receipts to be issued must ensure that the donation is made payable to the National Federation of the Blind: Advocates for Equality (NFB:AE) and forwarded to the National Office for processing. National Office will issue a cheque for the amount of the donation less 10% processing fee.

ii) Donations received that do not require receipts for tax purposes may be deposited in the account in the name of the Provincial or Territorial Affiliate, Chapter or Division and recorded as per item "iv" above.

iii) All receipts for taxation purposes must be issued by National Office only. Provincial or Territorial Affiliates, Chapters or Divisions my provide the organization’s charitable taxation number to potential donors solely for the purpose of verifying charitable status.

f) Fundraising:

i) Provincial or Territorial Affiliate, Chapter or Division must notify National Office when commencing any fundraising activity. National Office must be informed PRIOR to the submission of any proposal for funding from foundations or corporate donors in order to assure that there is not a duplication of requests to the funding agency.

ii) Where a Provincial or Territorial Affiliate, Chapter or Division wishes to fundraise for a specific event or purpose, an event budget and revenue plan must be submitted to head office prior to commencing fundraising.

g) Reporting;

i) Appointed treasurers for each Provincial or Territorial Affiliate, Chapter or Division must provide quarterly financial reports to head office. These reports shall include a current Year to Date Income Statement and Balance Sheet.

ii) On a quarterly basis, Provincial or Territorial Affiliates, Chapters and Divisions shall supply copies of bank statements, transaction receipts (invoices, funds received, etc.) and general ledger.

Financial Procedures: National Office

1) NFB:AE National Office must maintain accurate financial records as per Bylaw 46 and its subsections.

a) All transactions must be recorded in the AccPac Simply accounting program per GAAP guide.

b) All Expense and Revenue transactions must be posted using the categories provided in the chart of accounts attached as Appendix 2.

c) Expense Transactions:

i) All expenses must be paid by cheque drawn on the account of the National Office. NO expenses shall be paid in cash except through the use of a Petty Cash account.

(1) All cheques issued in the name of the NFB:AE through National Office must contain two (2) signatures of authorized signing personnel.

(2) All expense source documents must clearly show the initials of the authorizing board member and date authorized.

(3) Exception to 1b above where the expense cheque generated is made payable to a signer, where an authorized signature is required for a payroll or expense reimbursement cheque, the cheque must be signed by any two signors other than the recipient unless expressly authorized by the President of the organization.

ii) All expense transactions must be recorded with the correct date of the transaction, payee, net amount, GST amount, total amount, cheque number used, category and memo clearly explaining the expense.

Sample:

03/05/00 ABC Supplies 10.00 .70 10.70 Office Expenses
Memo: Purchased printer paper

iii) Where an expense category is not listed in the chart of accounts, or is a unique transaction that occurs rarely, this entry shall be posted to the Miscellaneous category.

(1) Where an expense category does not exist for a transaction that is anticipated to appear regularly, a new category may be created in the chart of accounts to reflect the new expense.

iv) Invoices received must be paid by the vendor due date, or net/30 where no due date is apparent.

(1) Where there is a discrepancy between the invoice received and NFB:AE records of transaction, the vendor must be contacted and asked to provide supporting documentation of the transaction. This contact must occur prior to the vendor due date.

v) Use of Petty Cash;

(a) Petty cash account shall be used for small consumable purchases only, I.e. Postage stamps, courier costs, pens, paper, etc.

(b) Where a petty cash account is used, the cash amount held should not exceed $150.00.

(c) All petty cash funds shall be held and disbursed by the elected treasurer or the contractor or employee as delegated by the elected Treasurer.

(d) Petty cash disbursements must be recorded on a petty cash disbursement slip, all receipts for purchases from petty cash should be kept in an identified envelope in the petty cash box.

(e) The petty cash slip must be completed prior to replenishing the petty cash amount.

Sample:

Petty Cash Fund: $100.00
Total Receipts: $95.00
Balance: $5.00
Replenish PC: $95.00 CHQ # 1234

(f) All petty cash receipts must be posted to the correct accounts as per the chart of accounts attached as Appendix "B".

vi) All expense transactions must be allocated to their corresponding project where applicable.

vii) All expenses must be authorized by the appropriate board member;

(1) expense amounts not exceeding $200.00 may be authorized by the Treasurer only prior to issuing payment;

(2) expense amounts exceeding $200.00 must have the approval of the President prior to issuing payment.

(3) expense amounts exceeding $1000.00 must have the approval of the entire board of directors.

d) Revenue Transactions:

i) All revenue received must be made payable to the National Office of the National Federation of the Blind: Advocates for Equality.

ii) Funds received must be deposited to the bank account of the organization on a weekly basis.

iii) Funds received shall be posted using the revenue accounts in the chart of accounts attached as Appendix "B".

iv) Revenue amounts received must be allocated to their corresponding project where applicable.

v) Cash revenue received may not be used to reimburse expenses or for expense purchases, cash revenue must be deposited to the bank account of the National Office in a timely manner.

e) Donations Received

i) Donations received directly at National Office shall be issued a receipt in a timely manner. Donations received exceeding $20.00 may be issued a tax receipt and a recent copy of the "Canadian Blind Monitor"

ii) Donations received directly by National Office that have been designated to a Provincial or Territorial Affiliate, Chapter or Division shall be deposited into the chequing account of the organization. A cheque shall be written on this account to be payable to the designated recipient for the amount of the donation less a 10% fee for receipt preparation and administration.

f) Fundraising:

i) Board approval must be received prior to commencing any fundraising activity.

ii) Fundraising for a specific event or activity must include a budget for the event or activity.

iii) Proposals for operational funding may be prepared and submitted at the discretion of the fundraising consultant. These proposals shall be included in a quarterly fundraising report to the Board of Directors.

iv) Proposals prepared for a specific event or activity must receive prior approval from the Board of Directors or applicable committee members prior to being submitted for consideration.

v) Proposals prepared on behalf of a Provincial or Territorial Affiliate, Chapter or Division must have prior authorization from the board of directors.

g) Reporting;

i) The board of directors will be provided with a weekly financial "reconciliation" report. This report shall detail:

(1) Revenue received in the prior week;

(2) Expenses disbursed in the prior week;

(3) Revenue and expense amounts from the previous week;

(4) Current cash position

ii) On a monthly basis, the board of directors will be provided with an income statement to date and an income statement for the previous month. This report shall be disbursed via e-mail no later than the 10th day of the following month.

iii) Receipting

(1) All receipts must be issued by head office, except where a third party fundraiser has been provided with receipt books for the express purpose of providing receipts during an authorized canvassing period. Electronic receipts may be issued by third party fundraisers as well.

(2) Where possible, receipts issued shall reflect their originating source documents.

(3) Receipt requests received by donors who issued payment of donation to a third party fundraiser shall be issued a receipt in a timely manner and the third party fundraiser notified of receipt number and recipient name.

(4) Where a donation received is the result of an expense reimbursement not claimed by a member or board member, the full amount of the expense shall be issued to the donor, then the donor will write a cheque in the same amount to be deposited to the general operating account and entered as a cash donation received.

iv) Receipts issued for goods received by donation shall be done so only following consultation and specific with the contracted accountant or auditor.

v) Receipts issued for donations received in a previous fiscal year must clearly indicate the date that the donation was received.

vi) Unless otherwise requested, receipts shall be issued for all donations exceeding $10.00, donations received by head office that exceed $20.00 shall receive a complimentary copy of the most recent Canadian Blind Monitor.

h) GST Reporting

i) GST reporting shall be conducted twice annually, at the end of June and December of each year;

ii) GST reports shall be completed per Ministry of Finance instructions and submitted for refund payment in a timely manner.

iii) A copy of the submitted GST report must remain on file for audit purposes;

(1) File copy of the GST submission for must be accompanied by supporting documentation;

(a) Detailed listing of GST paid to fundraiser

(b) Detailed listing of GST paid on purchases

(c) Detailed listing of additional GST not claimed in prior report

iv) GST refund amount is calculated at 50% of total GST paid out.

(1) GST Paid on Purchase account must be calculated at 50%

(2) GST Receivable from fundraisers is recorded at 50% therefore the total amount of this account is reported on GST rebate form;

(3) Additional GST not claimed in prior period shall be calculated at 50% of the total amount.

i) Acquisition of Assets

i) Assets acquired shall be entered into the Simply Accounting program per auditor instructions.

j) Other annual procedures;

i) Preparations shall be made in July of each year for renewal of insurance policy for director's liability insurance. Preparations include contacting providing vendor to verify policy and notification to the board of directors for approval of expense.

ii) Preparations shall be made in January of each year for renewal of insurance policy for office and general liability insurance. Preparations include contacting providing vendor to verify policy and notification to the board of directors for approval of expense.

iii) Post dated cheques issued to property management company for monthly lease payments as approved by the board of directors;

iv) Membership dues reminder issued in November of each year;

v) Corporate filing - Annual summary report form received from retained lawyer, form completed at head office in consultation with President to ensure accurate information, returned to lawyer for filing.

vi) Worker's compensation board - forms should be received late December or early January, complete assessment and payment , due date is end of February

k) Annual audit procedures;

i) All financial documentation must be submitted to assigned auditors following the organization fiscal year. This documentation shall include;

(1) All receipts for disbursements issued through the previous year

(2) All source documents received for revenue amounts received;

(3) Inventory listing, including acquisitions listed separately

(4) All fundraiser invoices, proof of payment and contracts;

(5) Copies of all lease agreements;

(6) Cheque stubs and deposit book;

(7) Hard copies of Income Statement, Balance sheet, Bank Reconciliation and project allocations;

(8) Chapter financial documentation;

(9) Diskette copy of organization financial records;

(10) Copies of all board meeting minutes;

(11) Copies of all monthly presidential reports

(12) Copy of constitution and by-laws

(13) Copies of all contracts, (fundraisers and employees);

(14) Summary of funds raised by each fundraiser;

(15) Copy of employee T4 (s) and scholarship T4A

2) Where a financial procedure is unclear, the Treasurer or President of the organization or the contracted auditors must be contacted for clarification.

History: