RAMED Financial Policy

June 20, 2005

This policy provides guidelines to assist board members of the Regina Association of Middle Eastern Dance (RAMED) with making appropriate and ethical decisions about financial matters. 

I.       Signing Authorities

·        The Treasurer will normally be the individual who signs cheques and makes deposits or withdrawals to or from the RAMED bank account.

·        A second board member (normally the President) will be authorized to sign cheques and make deposits or withdrawals to or from the RAMED bank account, in case the Treasurer is not available. 

II.  Responsibilities of the Treasurer

·        The Treasurer is responsible for:

o       Maintaining financial records;

o       Keeping the board informed of RAMED’s financial situation;

o       Signing cheques;

o       Making deposits;

o       Preparing monthly financial reports;

o       Preparing the annual financial report;

o       Preparing the annual paperwork for Corporations Branch, Saskatchewan Justice; and

o       Any other duties necessary to maintain RAMED’s financial affairs.

·        The Treasurer will keep receipts from all payments or purchases made on behalf of RAMED.

·        The Treasurer will give receipts for floats or cash given to members or directors for any purpose. 

·        The Treasurer will record all revenue and expenses in the RAMED general ledger.

·        The Treasurer will deposit all revenue (including cash and cheques) within one month of receiving them. 

III.  Board Authorization Required for Payments and Purchases

·        Except in exceptional circumstances, or in the case of reimbursing board members for bursaries or out-of-pocket expenses as discussed in Section IV, any matter involving payments, purchases or the use of RAMED funds must be discussed at a RAMED board meeting prior to making the purchase or payment. 

·        Some examples of exceptional circumstances in which board members might make a payment or purchase without advance authorization from the board include:

o       The batteries for the stereo system run out of power during a public performance, so a board member must purchase more batteries.

o       A payment must be made immediately to the guest artist for a RAMED show or workshop, or a deposit or purchase must be made immediately for a show or workshop, but the Treasurer and the alternate signing authority on the RAMED bank account are unavailable.

·        Any decision about making a payment or purchase on behalf of RAMED must be recorded as a motion in the minutes of the RAMED board meeting, and put to a vote by the directors.  The results of the vote must be recorded.

·        If a board member makes a purchase or payment on behalf of RAMED, or uses RAMED funds in any way without a motion approving this at a prior board meeting, the board member must bring the matter to the board’s attention by or during the next board meeting.  At that time, the matter will be discussed and put to a vote.

IV.  Reimbursing Board Members

·        There may be times when a board member is required to make an out-of-pocket payment on behalf of RAMED.  For example, this situation may occur when a board member books a flight for a guest artist on his/her personal credit card.  If the payment has been authorized by a vote of the board of directors, the Treasurer will reimburse the director as soon as possible.  If the payment was not authorized by a vote of the board of directors, the board must vote about whether to authorize the payment as discussed in Section III. 

·        If the board does not vote to authorize the payment, the board member who made the payment will not be reimbursed.  This would normally only happen if the board member made a major purchase without good reason and without attempting to consult other board members in advance.

·        Board members may have out-of-pocket expenses relating to their duties on the board.  For example, the Secretary or Newsletter Editor may need stamps for mailing agendas or newsletters, the Librarian may need to purchase labels and blank videotapes, and so on.  Board members may submit claims for the reimbursement of out-of-pocket expenses to the Treasurer, who may reimburse them before the next board meeting.  Such transactions must be recorded in the minutes of the board meeting and be the subject of a vote as outlined in Section III.

·        Board members are eligible to receive a bursary once per calendar year.  Board members may submit claims for the bursary to the Treasurer, who may reimburse them before the next board meeting.  Such transactions must be recorded in the minutes of the board meeting and be the subject of a vote as outlined in Section III.

·        The Treasurer will not reimburse any claim unless the board member provides a receipt for the claim. 

·        Neither the Treasurer nor the second signing authority on the RAMED bank account may reimburse himself or herself.  For example, if the Treasurer needs to be reimbursed, (s)he must ask the other signing authority to sign the cheque.  This is meant to ensure that there is always some scrutiny over payments made to the signing authority.

V.  Acceptable and Unacceptable Uses of RAMED Funds

·        Income from membership fees, RAMED events, honorariums, and other sources are to be used for the benefit of RAMED and its members. 

·        Some examples of acceptable use include: holding haflas, organizing shows and workshops; printing posters and other documents; mailing the newsletter; purchasing merchandise that will be sold to RAMED members; and purchasing videos, books, stereos, and other equipment that will be used by RAMED and its members.

·        It is never acceptable for RAMED board members to use RAMED funds for their personal use or gain.  For example, board members should not use the float for an event for personal purchases or make personal payments out of the RAMED account.

·        RAMED does not make personal loans to its members or directors.

VI.  Removing a Director for Unacceptable Use of RAMED Funds

·        If a board member uses RAMED funds for personal use or gain in any way, the board may hold a vote about whether the director should be asked to resign. 

·        If the board votes in favor of asking the director to resign, and the director refuses to resign, the board may call a special meeting of RAMED members to discuss the issue. 

o       In accordance with RAMED’s bylaws, advance notice of the meeting and its purpose must be provided to the members not less than 15 days and not more than 30 days before the meeting.

o       In accordance with RAMED’s bylaw, the meeting must have a quorum of at least ten enhanced members or members plus two directors personally present for a vote to be held.

o       In accordance with The Non-Profits Corporations Act, a simple majority is required at the special meeting to pass a motion regarding the removal of a director from the RAMED board.

VII. Annual Review of Financial Records

·        RAMED’s annual financial statement and financial records will be reviewed every year.  At minimum, this review will be conducted by a RAMED member, and will consist of going through the annual financial statement with the Treasurer and checking the bank statements.

·        The Treasurer will be responsible for providing the board with a report on the financial statement by the time of the board meeting held prior to the Annual General Meeting. 

·        The Treasurer will be responsible for providing the board and the members with the annual financial statement at least two weeks prior to the Annual General Meeting so that they will have time to review it.