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Date of Issue: 2 October 2002

Purpose of this Policy and Regulatory Directive

  1. The purpose of this General Financial Management & Control PRD is to provide general guidance to the HPAC/ACVL Board, and Management in terms of the handling and control of financial matters and/or those decisions and activities, which have impact on the resources of the HPAC/ACVL.
  2. The HPAC is a registered non-profit corporation, which exists to benefit the Canadian hang gliding and paragliding community. Because its operation is principally funded through solicitation of membership fees from the general community of foot launched pilots in Canada, it behooves the HPAC/ACVL Board and Management to manage its financial resources and account for the use of its funding base in a professional and transparent manner.

Assets and Liabilities

  1. It shall be the responsibility of each board member to be fully familiar and up-to-date with respect to the accrued assets and liabilities of the HPAC/ACVL. The board will maintain said knowledge by ensuring that:
    1. All assets of the HPAC/ACVL shall be accessible by either of the Treasurer or the President;
    2. Adequate information and control systems are established and utilized to monitor the assets and liabilities of the HPAC/ACVL; and
    3. Where assets are held beyond what are required for on-going daily business, investment of such assets shall be confined strictly to low risk investment vehicles.
    4. All office assets of 500$ of value or more should be listed as assets with depreciation

Planning

  1. The board is responsible for articulating, approving and guiding the implementation of the long term vision, goals and objectives of the HPAC/ACVL. Said objectives will inform and guide short-term planning, annual operations and budget. In this respect, the board shall ensure that adequate planning statements and guidelines are:
    1. Developed & published;
    2. periodically tested against membership opinion;
    3. monitored relative to actual operations;
    4. reviewed annually; and
    5. maintained and disseminated to relevant personnel.

Short-term Planning and Operations

  1. The principal vehicle for monitoring and reviewing operations within long term guidelines is an annual operations planning and review process combined with an annual budget review and development process. In this respect the board shall:
    1. Ensure that a process to facilitate a coordinated annual operations review with operating budget development is implemented and maintained;
    2. Allocate adequate board discussion time on an annual basis to review prior year's performance relative to short and long term goals;
    3. Co-ordinate short and long term goals and objectives with the annual allocation of operating and capital resources; and
    4. Approve resource allocations for the succeeding year's operating budget.

Annual Operating Budget (and Capital budget as necessary)

  1. The board shall ensure that annual operations of the association are conducted and controlled within financial parameters established by an annual operating budget . In this regard, the board will ensure that:
    1. The budget be developed, reviewed and approved prior to the start of each fiscal year;
    2. The Treasurer as principal financial officer of the HPAC/ACVL has the responsibility and authority to guide the development of and oversee the implementation of financial operating & reporting systems which will support the financial information, planning and general control needs of HPAC/ACVL governance;
    3. The Treasurer has the authority to direct, oversee and regulate the day-to-day management of the approved annual operating budget including designating data collection and/or control systems, reporting formats and schedules and assigning related tasks to any designated management/operational function. (Currently the Business Manager); and
    4. An appropriate schedule is established at least annually for the purposes of receiving reports and briefs on the sources and uses of HPAC/ACVL funds and resources in order to assure prudent and financially sound operation of the association in all of its activities.

Capital Budget

  1. The board shall develop policy with regard to capital expenditures and shall set an appropriate expenditure amount above which, acquired items are considered to be capital acquisitions as opposed to operating expenditures.
  2. In the case of planned acquisition of significant office equipment or other fixed assets the board will require the development and maintenance of a capital budget as necessary to ensure that significant capital equipment acquisitions are not hidden or buried within annual operating budgets thereby being lost to an annual inventory process and lost in terms of fixed asset accounting.

Financial Process and Procedures

  1. Pursuant to the above, the board shall require (whether though its own design or through delegation to the existing management structure) that appropriate financial processes, procedure and control mechanisms are established and maintained. In this regard, the Treasurer as chief financial officer of the board will ensure that financially related systems and procedures, once tested and deemed functional, are adequately described and documented in order to preserve financial continuity and control of operations from year to year. Such documentation will be integrated with overall HPAC/ACVL policy and procedural documentation.
  2. The board shall annually communicate an account of the association's financial state and operations along with a forecast for the coming fiscal year to the membership in the interests of maintaining financial transparency in all of its activities.
  3. Overpayments should be settled by immediate refund, preceded by a call of the B.M.
    1. NSF return charge of 10$ to be charged to the party at fault.
  4. Underpayments shouldnĺt be accepted until the right amount is sent, either by school or by member
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