Financial Management Guidelines

The Clubs and SIG’s financial policies and procedures should: (1) adhere to requirements of local statutory bodies; and (2) support strong management practices. Experts have suggested the following principles: consistency, accountability, transparency, viability, integrity, oversight, and accounting standards. Clubs and SIGs are encouraged to open a separate bank account for Club/SIG purposes.

Clubs and SIGs should always exercise sound financial management. Some recommended policies are:

1.   Preparation of a budget.

2.   Fund management transactions (i.e. checks, petty cash etc.) must require:

   1.   Two or more signatories to approve payments and to have online access, preferably the President and Treasurer with authorized limits set by the Board.

   2.   All cash inflows and receipts must be deposited to the bank. 

   3.   All cash outflows and payments must be documented with official receipts.

3.  Financial statements (income statement, balance sheet, and cash flows) should be prepared periodically with strict adherence to maintenance of book of accounts.

4.   Major acquisitions over the limit set by the Board should be approved by the Board.

5.   Clubs and SIG’s should request proposals for purchases/services whenever possible from at least three (3) suppliers.

6.   Clubs and SIGs should comply with legal requirements in their jurisdiction including filling for taxes appropriate (where applicable).

7.   Consider insurance needs for the organization and/or its events.