Date of Issue: 2 October 2002
Purpose of this Policy and Regulatory Directive
- 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.
- 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
- 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:
- All assets of the HPAC/ACVL shall be accessible by either of the
Treasurer or the President;
- Adequate information and control systems are established and utilized
to monitor the assets and liabilities of the HPAC/ACVL; and
- 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.
- All office assets of 500$ of value or more should be listed as assets with depreciation
- 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:
- Developed & published;
- periodically tested against membership opinion;
- monitored relative to actual operations;
- reviewed annually; and
- maintained and disseminated to relevant personnel.
Short-term Planning and Operations
- 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:
- Ensure that a process to facilitate a coordinated annual operations
review with operating budget development is implemented and maintained;
- Allocate adequate board discussion time on an annual basis to review
prior year's performance relative to short and long term goals;
- Co-ordinate short and long term goals and objectives with the annual
allocation of operating and capital resources; and
- Approve resource allocations for the succeeding year's operating
Annual Operating Budget (and Capital budget as necessary)
- 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:
- The budget be developed, reviewed and approved prior to the start
of each fiscal year;
- 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;
- 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
- 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.
- 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.
- 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
- 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.
- 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.
- Overpayments should be settled by immediate refund, preceded by a call of the B.M.
- NSF return charge of 10$ to be charged to the party at fault.
- Underpayments shouldnĺt be accepted until the right amount is sent, either by school or by member