POLICIES AND PROCEDURES The Board of Directors of the San Joaquin Valley Clean Energy Organization (SJVCEO) has adopted, and from time to time amended, the following policies and procedures. These policies and procedures are designed to insure that SJVCEO operates in a consistent and prudent manner year after year. Original Date of Adoption: December 1, 2009 Date of Subsequent Amendments: Finance and Accounting Policies and Procedures Accounting method
SJVCEO shall use the “accrual” system of accounting
Annual review of financial records
If finances permit, the SJVCEO Board shall arrange to have SJVCEO’s books reviewed by a Certified Public Accountant. If finances don’t permit such an outside audit, the SJVCEO Treasurer shall provide an annual internal review of SJVCEO’s books.
Assets, depreciation of
Assets will be expensed rather than depreciated whenever possible.
inventory of
The Board shall review a list of SJVCEO’s assets annually and make adjustments when warranted
Auditor, selection of
The SJVCEO Board shall approve the selection of, or change of, outside audit firms
Bank, selection of
The selection of, or change in, banks requires approval of the SJVCEO Board.
statement reconciliation
Bank statements shall be reconciled each month. Payees on any checks that remain outstanding after 60 days will be contacted to see about the status of the checks. If necessary, stop payments shall be placed on any outstanding checks that need to be reissued.
Books
SJVCEO Board members are entitled to review SJVCEO’s books after giving the Treasurer 5 business days’ notice
Budget
The SJVCEO Board shall adopt a budget for each fiscal year on or before June 30 Expenditures contained in an approved budget do not need to be approved again by the SJVCEO Board when the time comes to make those expenditures. Expenditures that are NOT contained in an approved budget require approval of the SJVCEO Board.
Checking account
To every extent possible, SJVCEO shall maintain approximately three months of average monthly operating expenses in SJVCEO’s checking account. If and when needed, the SJVCEO Treasurer is authorized to transfer funds out of reserves into the checking account to maintain a minimum level to cover an average of three months’ of operating expenses. If funds in the checking account exceed this minimum level, the Treasurer is authorized to transfer the excess in the general checking account into reserves.
Check requests
Requests for SJVCEO checks shall be submitted to the Executive Director on SJVCEO’s check requisition form. The submission should include all applicable backup documentation and every effort should be made to give the Executive Director ample time to process the check request.
POLICIES AND PROCEDURES Finance and Accounting Policies and Procedures Check signing authority
The signature of one SJVCEO officer is required on checks up to $20,000. The signatures of two SJVCEO officers are required on all checks that exceed $20,000. The President, Treasurer, Secretary, and Executive Director shall be signers on SJVCEO’s checking account. In addition, the Board may designate other signers on the account as appropriate.
Expense Reimbursements
1.
Reimbursement. SJVCEO pays expenses on a reimbursement basis only. Expense reimbursements must be authorized in advance in an approved budget or by the SJVCEO Board. Board members must complete a reimbursement form and attach receipts for all expenses. The reimbursement form must be turned into the SJVCEO Treasurer within 30 days. Reimbursement will not be made until all forms are completed and receipts are received by SJVCEO.
2.
Travel. It is the SJVCEO policy that expenses for transportation, lodging, subsistence and related items incurred when travel is for official business of the Organization will be reimbursed, as estimated on an approved travel request form. Prior to traveling, a travel request form must be processed and include estimated expenditures for the planned Organization travel. This form is to be approved by the Executive Director, President, Vice President, Treasurer, or Secretary and should be submitted to the SJVCEO offices a minimum of two (2) weeks prior to the conference or business travel date. Upon return, a reimbursement form shall be submitted for reimbursement of the actual trip lodging, meals, transportation and other incidental expenses within thirty (30) days of the activity, and must include original itemized receipts. The SJVCEO encourages use of the most cost effective means for air fare expenses.
3.
Mode of travel. Commercial Air Travel. When travel is required by commercial air carrier, claims for reimbursement should not be in excess of the lowest available commercials discount airfare or customary standard (coach or equivalent) airfare at the 21-day advance rate. Exceptions will be made when notice of the meeting is given less than 21 days in advance. The only exceptions permitted would be if such accommodations would require circuitous routing; require travel during unreasonable hours; excessively prolong travel; greatly increase the duration of the flight; result in increased costs that would offset transportation savings; or offer accommodations not adequate for the medical needs of the traveler. Travel by Automobile. Board members who opt to drive will be compensated at the st rate allowed by the IRS for mileage effective January 1 of each year. On occasion the IRS may change the rate during the calendar year to reflect special adjustments due to increases or declines in gas prices, vehicles, and/or insurance. If the IRS changes the rte, that new rate will be effective for the specified period of time during the year. Mileage will be based upon a direct route to and from the meeting site. When travel for one person by private automobile is authorized between points having air service, the amount claimed shall not be in excess of the lowest available discount coach airfare plus necessary parking and/or airport shuttle/bus service.
4.
Lodging. SJVCEO reimburses the actual cost of a single room at the conference/meeting host hotel. Other lodging will be paid at an actual and reasonable rate. When requesting reimbursement, expenses must be verified and submitted by the original hotel billing.
5.
Items not allowed. SJVCEO does not pay for the following: items purchased in the mini-bars in hotel rooms, movies, massages, gyms, and other extraneous luxuries.
POLICIES AND PROCEDURES SJVCEO will not reimburse Board members for any airline tickets or hotel rooms if the Board member registers but fails to attend the event for any reason. 6.
Incidentals. SJVCEO will reimburse for business-related incidental expenses such as meals, cabs, and tips. SJVCEO expects Board members to be prudent. For example, do not select the most expensive hotel or restaurant when reasonable alternatives are available.
7.
Mandatory attendance. When SJVCEO pays for Board members to attend certain events, it is with the expectation that the Board members will represent SJVCEO by attending the important meetings. If Board members fail to attend these important functions, SJVCEO will not reimburse members for any expenses.
Timing. Reimbursement requests must be submitted with accompanying receipts within 30 days after the event or reimbursements could be denied. Investments
The selection of investment advisors and/or investment products requires approval of the SJVCEO Board. The SJVCEO Board shall not make any risky or speculative investments. The SJVCEO Board shall deposit SJVCEO reserves in safe and conservative vehicles such as bank Certificates of Deposit or money market accounts. To insure adequate liquidity, Certificates of Deposit (CDs) shall be opened for 3 months, then 6 months, then 9 months, and 12 months. This will insure that CDs come up for renewal every 3 months and can be liquidated if SJVCEO needs funds to operate. To insure that funds are protected by FDIC insurance, SJVCEO shall not maintain more than $100,000 on deposit at a single bank.
Finance and Accounting Policies and Procedures Money management
SJVCEO shall maintain a checking account and one or more savings accounts to maximize the return on SJVCEO revenues.
Write-off of accounts receivable
Accounts receivable that are more than 12 months shall be written off; if funds are collected subsequent to the write-off, the funds shall be deposited and credited to the line item in the budget that gave rise to the accounts receivable.
Operational Policies and Procedures Contracts
The SJVCEO Board shall review all contracts annually to insure satisfactory performance and adherence to contractual terms.
Endorsements
SJVCEO shall not endorse specific vendors or products without approval of the entire SJVCEO Board.
Insurance
SJVCEO is a non-profit corporation with special protections under State law that protects Board members against lawsuits if (1) Board members are not involved in self-dealing transactions and (2) Board members are not engaging in illegal activities.
Letters of Support
SJVCEO shall obtain approval of the Executive Committee before issuing letters of support for proposals, programs, or legislative initiatives. The Executive Committee shall be given a minimum of three working days to review request for letters of support. Letters of support issued by SJVCEO shall be presented at the next Board meeting to keep Board members informed.
POLICIES AND PROCEDURES Official SJVCEO Positions
Any official positions that are taken by SJVCEO shall require an affirmative vote of the Board of Directors.
SJVCEO logo and stationery
SJVCEO’s logo and stationery shall be used for association business only.
Website
The SJVCEO Board shall insure that it maintains ownership of and access to the association’s domain name and Website.