(Approved by the Board of Directors February 16, 1994)
- INTRODUCTION
- Ultimate control of corporate spending rests with the Board of
Directors who approve the annual budget presented to them by the
Financial Committee each Winter Term. This policy describes how the
Board of Directors delegates authority for the various aspects of
corporate spending, and how spending control is to be achieved.
- The basic premise of any corporate spending is that it should
be done when it benefits SCA in both the long and short runs, and that
it should not be done when it does not benefit SCA, especially if it
does not benefit in the long run or will create financial problems in
the future.
- THE ANNUAL BUDGET
- In Winter Term of each year, an annual budget shall be
presented to the Board of Directors by the SCA Corporate Treasurer on
behalf of the Financial Committee. The Board of Directors reserves the
right to question, and if necessary, alter the budget as presented. The
budget shall be categorized into areas of corporate and house revenue
and expense.
- Once the annual budget is approved, the Board of Directors,
SCA staff, committees, and houses may incur expenses according to the
provisions which follow.
- During the course of the fiscal year, the Treasurer and the
Financial Committee will review the budget as necessary. Any revisions
and reallocation over $200.00 must be presented to the Board of
Directors for their approval.
- TYPES OF EXPENSES AND THEIR APPROVAL
- SCA Corporate Expenses
- Non-discretionary corporate expenses are those which are
incurred by the Co-op on an automatic and recurring basis, and are not
the result of a specific purchase. Examples of non-discretionary
expenses are property taxes, utilities, mortgage payments, approved
contracts, and staff salaries, benefits, and payroll taxes (as long as
the position, salary, and benefits have been previously approved by the
Board of Directors.) These expenses do not need individual approval;
however, at least two corporate check signers (preferably one being the
Corporate Treasurer) must review each one.
- Discretionary corporate expenses are those which are incurred
by option, such as office supplies, professional or consulting
services, and collective education. A budgeted discretionary expense of
up to $200.00 may be approved by the SCA Business Manager or committees
providing such expense does not exceed the total budgeted for the term.
All unbudgeted discretionary expenses, or discretionary expenses which
exceed $200.00 or the total amount budgeted for the term, must be
approved by the Board of Directors.
- All contracts into which SCA enters (including individual
houses) must be first approved by the Board of Directors upon
recommendation by the appropriate committee, and then signed by two (2)
corporate check signers on behalf of SCA.
- House Expenses
- House Expenses are for house education and discretionary
purchases, and are incurred at the option of the house. Houses may
spend up to the total amounts budgeted for each term for their
education and social purchases at any time.
- House education expenses must be approved at a house meeting, or by an officer designated by the house at a house meeting.
- House discretionary expenses must be approved at a house meeting, or by a officer designated by the house at a house meeting.
- Food Expenses
- Food expenses are incurred at the option of the house, and
include household cleaning supplies, toilet paper, pots and pans,
plates and silverware, and small kitchen appliances (such as toasters)
in addition to actual food purchases. Van driver mileage and meal
refunds are also included in this category.
- All house food expenses must be approved by the individual
houses' kitchen coordinators, or by an officer designated by the house.
- Meal refunds are approved by the kitchen coordinators in
accordance with the Meal Refund Policy. Meal refunds are paid by check
out of the house food account or credited to a member's account by
submitting a Meal Refund Request form to the Business Office. For more
details, see the Meal Refund Policy.
- Van driver mileage is approved by the kitchen coordinators in
accordance with the Van Driver Mileage Reimbursement Policy. Van driver
mileage is paid by check out of the house food account or credited to a
member's account by submitting a Van Driver Mileage Reimbursement Form
to the Business Office. For more details, see the Van Driver Mileage
Reimbursement Policy.
- Checks for meal refunds or van driver mileage may not be
written for less than $5.00 unless it is the end of the term. In
addition, checks may only be written to members whose fee payments are
current: if the member requesting a meal refund or van driver mileage
is delinquent in payment of his/her membership fees, the meal refund
must be credited to his/her account.
- Building Expenses
- Maintenance (non-discretionary building expenses) are those
that are incurred through the normal deterioration of SCA's assets.
Like other non-discretionary expenses, they are automatic in nature,
but they are not fixed in price. Building Supervisors may approve
expenditures up to $200.00 to repair or replace assets of SCA to their
original condition, providing there are sufficient funds remaining in
the budget. Any expenditure over $200.00, or those that exceed the
amount available in the budget, must be approved by the Board upon the
recommendation of the Maintenance Committee.
- Discretionary Building Expenses are those which serve to
change the building or upgrade its contents, and include all capital
expenditures. Building Supervisors are responsible for approving
expenditures up to $50.00, and amounts between $50.01 and $200.00 must
be approved by the Maintenance Committee. These expenditures may be
approved providing there are sufficient funds remaining in the budget.
Any expenditure over $200.00, or those that exceed the amount available
in the budget, must be approved by the Board upon the recommendation of
the Maintenance Committee.
- Maintenance Contingency Budget: This is a corporate
maintenance "reserve fund" that may be use by any house, with Board
approval, for non-discretionary building expenses upon recommendation
by the maintenance committee. This fund may only be used if there are
not enough funds left in the given house's maintenance budget.
- Emergency Expenses
- Emergency expenses are those which must be incurred immediately
because a delay will risk property damage or endanger personal safety.
Emergency expenses are not those outlined in sections (1) and (2) above
that simply did not receive the appropriate approval prior to incurring
the expense.
- An emergency expenditure may be approved by two corporate
check signers (preferably the Corporate Treasurer and SCA Chairperson)
along with the SCA Maintenance Coordinator up to a maximum of $500.00.
In their absence, any two corporate check signers may approve an
emergency expenditure up to a maximum of $250.00.
- All emergency expenditures must be paid out of the SCA
General Account and reported to the Board of Directors at its next
meeting.
- OBTAINING BOARD APPROVAL
- All expenses requiring Board approval must be submitted to the
Chairperson in writing at least 48 hours prior to the Board Meeting in
order to be placed on the agenda for that week's meeting. For more
information on submitting proposals, see the "PROPOSAL POLICY."
- In all cases in which approval is required, approval must be received before the expense may be incurred.
- DISBURSEMENTS AND CHECKS
- All co-op funds shall be disbursed by check, and a receipt or
other form of written documentation must be provided for each
disbursement. All SCA checks require two (2) signatures.
- For house food expenses, checks shall be drawn on the house
food account and signed by two (2) of the approved signers for that
account. Signers on house food accounts are both kitchen coordinators,
a menu planner, the van driver, and the SCA Corporate Treasurer.
- For house maintenance, discretionary, and education expenses,
checks shall be drawn on the house checking account and signed by two
(2) of the approved signers for that account. Signers on the house
checking accounts are the house president, building supervisor, social
coordinator, house treasurer, and SCA Corporate Treasurer.
- For all corporate expenses other than the Business Manager
payroll and benefit checks, checks shall be drawn on the general
checking account and signed by two (2) of the approved signers for that
account. Signers on the general checking account are the SCA
Chairperson, Corporate Treasurer, SCA Speaker, and the Business
Manager.
- The Business Manager payroll and benefit checks shall be
drawn on the general account and signed by the SCA Chairperson and
Corporate Treasurer. In the event that either the Chair or the
Corporate Treasurer is not available, any two corporate check signers
(other than the Business Manager) may sign these checks.
IMPORTANT: No person may approve a purchase or payment which will
directly benefit that person: signing officers and/or employees may not
sign checks which are payable to them, nor may they approve any amounts
that will be directly credited towards their member fees.
- REIMBURSEMENT POLICY
- Should it be necessary to reimburse a member or employee for personal funds used for co-op expenses, the following apply:
- All reimbursement requests must be documented using the SCA reimbursement form, with receipts attached.
- All reimbursement requests must be turned in within two weeks
after purchase, but no later than one week after the end of the term in
which the expense was incurred.
- All reimbursement requests must be approved and disbursed as outlined in parts (3), (4) and (5) above.
- Violation of the above reimbursement policy shall result in
the revocation of the member's right to receive a reimbursement. In
cases in which the member has already been reimbursed, the amount of
the reimbursement will be charged to the member's account.
- Reimbursement checks may only be written to members whose fee
payments are current: if the member requesting the reimbursement is
delinquent in payment of his/her membership fees, the reimbursement
must be credited to his/her account.
- OPERATING AND INVESTMENT ACCOUNTS
- At no time shall SCA keep more than $90,000.00 (ninety thousand
dollars) in one financial institution to ensure that the invested
monies are federally insured. The Board of Directors must approve any
transfers of money between institutions, and all funds must be kept in
federally insured institutions.
- Corporate Operating Accounts - In order to disburse funds
according to the above policies, SCA shall maintain the following
corporate bank accounts:
- General Account: This is a checking account used to pay bills,
buy equipment, transfer money to other operating and investment
accounts, and for other financial uses as needed. The Business Manager
disburses checks.
- Savings Account: This is an interest-bearing money market
account. It is a temporary investment account used to earn a higher
rate of interest than is earned by the checking account, while keeping
the funds completely liquid at all times. The Financial Committee
oversees deposits to and withdrawals from this account.
- House Operating Accounts - In order to disburse house funds
according to the above policies, SCA shall maintain the following house
bank accounts:
- General House Accounts: These are three (3) checking accounts
(one for each house) used to pay for house-specific maintenance,
discretionary, and educational expenses. The house treasurers are
responsible for these accounts.
- House Food Accounts: These are three (3) checking accounts
(one for each house) used to pay for house food and related
expenditures. The Purchasing Accountant is responsible for these
accounts.
- Reserve and Investment Accounts
- In addition to the above daily operating accounts, SCA Shall
maintain reserve accounts in which to accrue funds for long-term
capital improvements and to cover large unforeseen (unbudgeted)
expenses.
- Funds from these accounts can only be disbursed upon approval
by the Board of Directors. The signers on these accounts are the SCA
Chairperson, the SCA Corporate Treasurer, the SCA Speaker, and the
Business Manager.
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