Financial Policy

RESIDENTS FOR AN ENGAGED COMMUNITY

Fund Utilization, Disbursement, and Reconciliation Policy Effective February 18th, 2015 (amended)

Purpose:  The purpose of this policy is to establish clear guidelines for the utilization, disbursement, and reconciliation of funds. It is noted that one hundred percent (100%) of the funds come from generous donations and this policy is intended to maintain the utmost integrity and transparency to the group’s donors. Furthermore, it is noted that each Executive Committee member is otherwise gainfully employed and has donated his/her time to the group of their own free will and without any sort of financial remuneration.

Definitions: Executive Committee (EC) will always consist of no less than five (5) and no more than nine (9) members.

Simple Majority is defined as more than 50%.

Supermajority is defined as at least two-thirds (2/3) of the EC members.

The approval and implementation of this policy requires unanimous consent of the EC. Any future changes to this policy require a Supermajority of the EC.

Utilization: A Supermajority is required to determine utilization of funds. The only intended utilization of the funds collected are for legal and other operational expenses to accomplish our objectives.

In the event any EC member is unavailable for any reason a Supermajority of the EC will still be required to determine utilization of funds.

Disbursement: Disbursement of funds can only occur with EC approval of intended utilization and requires written approval of EC members as follows:

$0 – $50: Any EC member

$50.01 – $200: Any two (2) EC members

$200.01 and up:  Any three (3) EC members

To ease the administrative burden, electronic communication will be considered an acceptable form of written communication. However, the EC will record all disbursements of funds in the official minutes of its next regularly scheduled committee meeting.

PLEASE NOTE THAT ALL PAYMENTS MUST BE MADE AND APPROVED BASED ON AND IN ACCORDANCE WITH PROPERLY APPROVED AND EXECUTED CONTRACTS, AGREEMENTS, AND INVOICES.

Any conflicts regarding the disbursement of funds will be resolved by the EC.

Reconciliation: Periodic reconciliation of the approved utilization and disbursement of funds will be performed by the appointed EC member no less frequently than once per month. All reconciliation documents will be provided to the EC and approved by a Simple Majority of its members.

In addition, the EC will have its books and records independently audited no less frequently than quarterly. This independent audit function will be performed by a Certified Public Accountant (CPA). It should be noted that this independent audit function will be performed free of charge.

All approved utilization, disbursement, and reconciliation of funds will be provided to named donors upon their express written request.