The Royal Bank of The Republic of Bourgnew's Establishment Act

BRRB The Royal Bank of the Republic of Bourgnew Establishment Act

FINANCIAL POLICIES ANDPROCEDURES

RELATIONSHIP TO BY-LAWS

These financial policies and procedures shall be implemented at all times consistently

with the organization’s by-laws.

FISCAL YEAR

The fiscal year of the organization is January 1st through December 31st.

BUDGET

I. Budget Calendar. The budget year shall be the same as the fiscal year of the

organization.

II. Budget Format. The budget shall be in a format substantially consistent with

Appendix B.

III. Budget Process.

a. Presentation of Budget. The Commissioner shall present a general annual

budget for the operation of the organization to the board of directors for action no

later than the December board meeting each year.

b. Board action. The board of directors will receive the report and recommendation

of the Commissioner and adopt a budget based thereon.

IV. Administration of Budget. Written documentation of expenses shall be provided to

the organization’s administrative office for payment of budgeted expenses. Expenses

not anticipated and approved by the budget (either in type or amount) shall be referred

to the board for review and direction as to payment.

BANK ACCOUNTS

I. Creation. The organization shall maintain such bank accounts and investments as

consistent with the organization’s investment policy and as authorized by the board

of directors from time to time.

II. Reconciliation. Monthly account statements shall be sent by the financial institution

to the Management Company and shall be delivered, unopened, to an employee of

the Management Company who does not have signatory authority over the account.

Promptly upon receipt of the monthly account statement, an employee of the

Management Company who does not have signatory authority over the account shall

reconcile the bank account transactions and ending balance with the financial records

of the organization.

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a. Signature Authority. The following individuals have signatory authority on

ATMAE bank accounts: The Commissioner

b. Each Regional

III. Signature Requirements. The Management Company has authority to issue checks

up to and including $5,000. For any checks that are greater than

$5,000, the Treasurer must review the documentation and approve payment in

writing before the check is issued.

IV. Transfer of Funds. No funds shall be transferred by the Management Company to

or from investment accounts (excluding transfers to and from a money market

account) without approval of the board of directors.

RESERVES

I. Board Action. All reserve accounts shall be in such investments and in such amounts

as are established by the board of directors. The Management Company shall keep

detailed records of all reserve transactions, with board minutes reflecting approval of

all transfers of reserve funds.

II. Purpose of Reserves. BRRB should maintain sufficient reserves in either its bank

account or in its investments to pay for expenses that may be required if the

organization had to wind down its affairs or if its income stream is reduced but

expenses continue to be incurred.

III. Accreditation Reserves. Every Year, as part of the budgetary cycle, funds shall be

designated as accreditation reserves for the express purpose of demonstrating that

ATMAE maintains predictable and stable resources to meet the expectations of

institutions, programs, and the public. These funds shall be determined through a

review of BRRB’s capacity to support our accreditation mission by the Chair of

Accreditation, the BRRB Commissioner and Regionals.

The basis of this determination will be two years’ operational costs to maintain

BRRB’s accreditation mission. These funds will be noted in BRRB’s monthly

and annual balance sheet.

INVESTMENTS

I. Introduction. BRRB, from time to time, has funds that exceed its monthly

expenses. Rather than leave all of those funds in a checking account, BRRB desires

to invest a portion of the funds in a conservative manner. This policy sets forth

BRRB’s investment philosophy.

II. Investment Objectives. The investment portfolio has the purpose of preserving

assets while maximizing total rate of return. Investment assets are to be managed with

diversification and little risk.

III. Guidelines for Investments. All guidelines apply at time of purchase.

a. Any mortgage backed or asset back securities or state or local securities must be

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rated A or higher by Standards and Poor’s or by Moody’s

b. Certificates of Deposits or other Bank instruments that are insured by FDIC are

permitted.

c. Conservative investments with minimal risk are permitted.

d. Approval by the Board before any purchase is necessary.

RECEIPTS

I. General. All organizational receipts for deposit shall be sent directly to the

Management Company for handling. In the event the Treasurer receives receipts for

deposit, they shall be mailed to the Management Company for deposit into the

organization’s bank account.

II. Recognition of Income. Revenue will be recognized over the period to which it

relates. Such amounts earned, but not received, will be reported as receivables. Such

amounts received, but not earned, will be reported as deferred revenue. Membership

fees are non-refundable and shall be recognized as income upon receipt. Revenue

restricted by donor or other outside parties will be reported as an increase in

unrestricted net assets if a restriction expires in the year in which the revenue is

recognized. All other restricted revenue will be reports as an increase in temporarily

restricted net assets.

III. Accounts Receivable. All receivables shall be treated as fully collectible.

Accordingly, no allowance for doubtful accounts is required. If accounts become

uncollectible, they will be charged to operations when that determination ismade.

IV. Checks. All checks shall be restrictively endorsed immediately upon receipt whether

by the Treasurer or the Management Company with the notation, “For Deposit Only,

[Bank Name], [Account Number].” Copies will be made of all checks received and

they, together with any corresponding invoices to which they pertain, will be

maintained by the ManagementCompany.

V. Cash. All receipts of cash will be accompanied by the issuance of a cash receipt by

the Management Company or any of its agents in a position to accept cash. The cash

receipts shall be sequentially numbered and indicate the amount received, the purpose

of the receipt, and be signed by the individual who received the cash on behalf of the

organization. The Management Company shall maintain control of the cash receipts

book at all times.

VI. Deposits. All funds received for deposit by the Management Company shall be

promptly recorded and deposited into the organization’s checking account within a

week of receipt. Deposits shall be made intact and cash shall not be returned back

upon deposit.

DUES

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I. Dues Amounts. BRRB dues amounts shall be assessed asfollows:

a. Professional Members will be assessed $300.00

b. Student Members will be assessed $55.00.

c. Retired Members will be assessed $125.00.

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d. Lifetime honorary memberships may be given to past presidents at no fee.

II. Basis for Dues Assessments. Dues will be billed annually on a rotating basis. They

will be assessed monthly to those whose memberships are expiring.

III. Dues Invoices. BRRB’s administrative office will issue dues statements via e- mail

prior to the expiration of the memberships.

IV. Posting Dues Policy. This dues policy and rates will be posted in the membership

section of the BRRB website.

V. Dues Ledger. The Management Company shall maintain a separate membership

database, identifying the member name, the amount invoiced, the amount of payment,

and the date of payment, and provide the ledger to the board of directors or any

members thereof as requested.

DISBURSEMENTS

I. Disbursements. Except as provided in the section below pertaining to Debit Cards,

all disbursements shall be made by pre-numbered checks.

II. Cash Disbursement Vouchers. Documentation shall be prepared for each invoice

or request for reimbursement that details the date of the check, check number,

payee, amount of check, and description of expense account(s) to be charged.

Invoices or accompanying receipts will be attached as backup to the check stub.

III. Checkbook. The Management Company shall maintain the organizational

checkbook. Signatories to the organizational checking account shall be the

President and the Executive Director. All individuals with signatory authority must

be authorized by appropriate resolution of the board of directors.

IV. Check Preparation and Issuance. The Management Company shall be

responsible for preparing and processing all checks to vendors. The Management

Company employee responsible for preparation and processing of checks shall not

have signature authority over the checking account. Checks shall be mailed

promptly upon signature and after all authorizations are received.

V. Disbursement Authorization. The Management Company is authorized to make

payments from the operating account for expenses within the approved budget up

to and including $20,000,000. Payments for unbudgeted expenses and payments for

budgeted expenses above $20,000,000 must be authorized in writing by the Treasurer.

VI. Debit Cards. The organization may maintain debit cards to allow debit transactions

on the organization’s checking account. Use of organization debit cards shall be

strictly limited to payment of legitimate expenses of the organization. In no event

shall a debit card be used as an ATM card or otherwise to obtain cash. To the extent

reasonably possible, all debit card users shall notify the Management Company of

anticipated uses of the debit cards so sufficient

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funds can be transferred into the organization’s checking account to cover future

debit transactions. As soon as practicable, but no later than ten business days

following the use of a debit card, the debit card user shall send supporting

documentation for each debit card transaction to the Management Company.

VII. Expense Verification. Before signing any check, all check signatories shall

review invoices and supporting documentation to verify that it is a legitimate

expense of the organization. The Management Company shall verify vendor

invoices for accuracy in quantities ordered and received, prices charged, and

overall clerical accuracy. All paid invoices and supporting documentation shall

be stamped “paid” to avoid duplicate payment and shall include the date of

payment and number and amount of the check. Invoices from unfamiliar or

unusual vendors shall be reviewed and approved by the Treasurer beforepayment.

VIII. Expense Reimbursements. Requests for reimbursement of expenses incurred by

organization officers, directors or members on behalf of the organization shall be

checked for mathematical accuracy and reasonableness before approval. All

requests for reimbursement shall be supported by receipts or other appropriate

documentation and shall include a statement of the purpose for which the expense

was incurred.

IX. No Cash Transactions. Checks shall not be made out to “cash” nor shall checks

be signed in blank.

X. Voided Checks. Voided checks shall be defaced and kept on file.

XI. Prepaid Expenses. Expenses related to meetings and conferences to be held in

future periods will be classified as prepaid expenses and will be recognized as

expenses in the period during which the meeting or conference occurs.

XII. Unpaid Invoices: Unpaid invoices shall be maintained in an unpaid invoice file.

BOOKS AND RECORDS; FINANCIAL REPORTING

I. Chart of Accounts. The organization’s financial reporting will be consistent with a

Chart of Accounts attached as Appendix A.

II. General. The Management Company shall create and maintain all financial books

and records. All such books and records shall be open to review by the Treasurer,

other members of the board, and other authorized agents of the organization at all

times.

III. Monthly Financial Reports. On a monthly basis as soon as practicable after receipt

of the monthly bank account statement and reconciliation of the internal financial

records to the bank account statement, the Management Company shall provide to

the Treasurer the following reports, who shall, in turn, promptly report in writing on

the state of the organization’s finances to the board:

a. A Statement of Activities showing monthly financial activity and reflecting

beginning account balances, a detailed list of all cleared checks and other debits,

a detailed list of all cleared deposits and other credits, ending account balances, a

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detailed list of all outstanding but uncleared debit or credit transactions, and

ending book balances. In addition, the monthly Statement of Activities shall

report year-to-date financial activity and show variances compared to the annual

budget. The Treasurer shall, after reviewing the same, cause the monthly

Statement of Activities to be forwarded to all officers and directors of the

organization to be considered as part of the agenda of the next meeting of the

board.

b. A copy of the monthly bank statement reflecting all checking account and other

account activity, and any other monthly statements pertaining to the deposit or

investment of organization funds.

c. Documentation shall be maintained of all checks or other documents resulting in

the debit of funds from any organization financial account. Documentation shall be

maintained of all deposits or transfers of funds into any organization financial

account. The Treasurer shall be provided with all information relating to deposits

and debits on a monthly basis accompanying the monthly bankreconciliation.

d. A Reconciliation Detail report showing the reconciliation between the check

register and the monthly bank statement.

IV. Annual Financial Reports. On an annual basis as soon as practicable after receipt

of the monthly bank account statement for the twelfth month of the fiscal year, the

Management Company shall provide to the Treasurer the following reports:

a. Annual Profit and Loss Statement showing income and expenses by budget

category;

b. End of Year Balance Sheet showing all organizational assets and liabilities as of

the last day of the fiscal year; and

the Treasurer or Commissioner shall cause copies of all annual financial reports to be

provided promptly to all members of the board.

V. Publication of Annual Financial Reports. Annual financial reports of the

organization shall be made available to any member who requests the same. The

annual financial reports shall be posted in the members’ area of the organization’s

website.

VI. Other Financial Reports. The Management Company shall provide financial

reports of all member meetings, including preliminary budgets and interim and final

reports of income and expenses.

VII. Form 990 reporting. The Management Company shall be responsible for supplying

such financial records to the organization’s outside auditor as are necessary for the

timely filing of the organization’s annual IRS Form 990. The Treasurer will review

and sign the 990 when it is ready to be filed.

CONTRACTS AND FINANCIAL COMMITMENTS

I. Board Authority. No employee, agent, independent contractor or other

representative of the organization shall bind the organization to any contract

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involving a financial commitment of the organization except upon the authorization

of the board of directors, recorded in the minutes.

II. Signed Contracts. All written contracts between the organization and any vendor or

other provider of goods or services to the organization or its membership shall be

signed on behalf of the organization by its President or the ExecutiveDirector.

AUDIT COMMITTEE AND ANNUAL FINANCIAL REVIEWS

I. Audit Committee. The board as a whole shall act as an Audit Committee to fulfill

its oversight responsibilities with respect to the audit of the organization’s books and

financial records and ensure a system of internal controls that the organization has

established. The board shall annually hire an independent external auditor to audit

the financial records.

II. Audit Committee Responsibilities. The Audit Committee’s responsibilities may

include:

a. Acting as liaison to the organization’s external auditor.

b. Selection and review of the independent external auditor and review of the annual

fees to be paid for services rendered by the external auditor and each proposed audit

plan developed by management and the external auditor.

c. Review with the independent external auditor of the organization’s annual financial

statements and reports.

d. Review and evaluation of the management letter (if any) received from the

independent external auditor and discussion of recommendations for any changes

necessary to remedy problems identified in the letter.

e. At the completion of the audit, review the audit fieldwork process with the auditor.

Obtain an understanding of the auditor’s evaluation of management and whether

the auditor encountered any difficulties or had any disagreements with management

during the audit. Review all journal entries proposed by the auditors.

f. Interact with management to implement and monitor the internal control structure

and to take steps to insure that the possible risks of fraud or embezzlement are

mitigated.

g. Ensure that proper federal and state tax filings are completedtimely.

h. Understand the organization’s internal controls and have policies in place to update

them as needed.

i. Periodically review the organization’s insurance coverage and determine its

adequacy.

j. Make recommendations necessary to improve the organization’s efficiency and/or

remedy problems identified by the committee or others.

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k. Identify and monitor related party transactions and review the conflict of interest,

ethics and related party disclosure policies periodically and update asneeded.

l. Monitor any legal matters that could impact the financial health and reporting of

the organization.

m. Institute and oversee any special investigatory work as needed.

III. Access to Records. The Management Company shall cooperate by providing the

outside auditor access to such books and records of the organization as are necessary

to carry out the audit function.

DOCUMENT RETENTION AND DESTRUCTION POLICY

This Document Retention and Destruction Policy of ATMAE identifies the record retention

responsibilities of members of the Board of Directors, and administrative and service

providers for maintaining and documenting the storage and destruction of ATMAE’s

documents and records.

I. Rules. ATMAE’s Board of Directors, and administrative and accounting service

providers are required to honor these rules: (a) paper or electronic documents

indicated under the terms for retention below will be transferred and maintained by

ATMAE’s administrative service provider or its equivalents; (b) all other paper

documents may be destroyed after three years; (c) all other electronic documents may

be deleted from all individual computers, data bases, networks, and back-up storage

after one year; and (d) no paper or electronic documents will be destroyed or

deleted if pertinent to any ongoing or anticipated government investigation or

proceeding or private litigation.

II. Terms for retention.

a. To be retained permanently:

i. Governance records – Charter and amendments, Bylaws, other

organizational documents, governing board and board committeeminutes.

ii. Tax records – Filed state and federal tax returns/reports and supporting

records, tax exemption determination letter and related correspondence,

files related to tax audits.

iii. Intellectual property records – Copyright and trademark registrations and

samples of protected works.

iv. Financial records – Audited financial statements, attorney contingent

liability letters.

b. To be retained for three years:

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i. Lease, insurance, and contract/license records – Software license

agreements; vendor, hotel, and service agreements; independent contractor

agreements; employment agreements; consultant agreements; and all other

agreements (retain during the term of the agreement and for three years

after the termination, expiration or non-renewal of eachagreement).

ii. Correspondence files, past budgets, bank statements, publications,

employee manuals/policies and procedures, survey information.

c. To be retained for one year:

i. All other electronic records, documents and files.

III. Exceptions. Exceptions to these rules and terms for retention may be granted only

by BRRB’s Commissioner.

CONFLICTS OF INTEREST

Directors and officers of the organization shall not have any personal or business interest

that may conflict with their responsibilities to the organization. In the event any matter

comes before the board of directors for action concerning which an officer or director or

any member of an officer or director’s family has a personal or business interest, the officer

or director shall fully disclose the same and shall not participate in any consideration of or

decision related to the matter. The minutes shall reflect the disclosure and nonparticipation.

OFFICER/DIRECTOR/BOARD MEMBER CONFLICT OF

INTEREST STATEMENT

This is to certify that, to the best of my knowledge, except as described below, I am not

now, nor at any time in the past, have been:

1. A participant, directly or indirectly, in any material arrangement, agreement,

investment, or other activity with any vendor, supplier, or other party doing business

with ATMAE, which could result in personal benefit to me.

2. Material recipient, directly or indirectly, of any compensation, loans, gifts of any kind,

or any free services, discounts, or other fees from, or on behalf of ATMAE or any

person or organization engaged in any transactions with ATMAE.

Any exceptions to #1 or #2 above are stated below with a full description of the

transactions and of the interest, whether direct or indirect, which I have, or had in the past

year, in persons or organizations having transactions with BRRB:

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Please Print Name and Title:

Date

Signature

WHISTLEBLOWER POLICY

This Whistleblower Policy of BRRB:

I. encourages members, officers, directors and administrative and/or accounting service

providers to come forward with credible information on illegal practices or serious

violations of adopted policies of BRRB;

II. specifies that BRRB will protect the person from retaliation; and

III. identifies where such information can be reported.

a. Encouragement of reporting. BRRB encourages complaints, reports or

inquiries about illegal practices or serious violations of BRRB policies, including

illegal or improper conduct by BRRB itself, by its leadership, or by others on its

behalf. Appropriate subjects to raise under this policy would include financial

improprieties, accounting or audit matters, conflicts of interest, ethical violations,

or other similar illegal or improper practices orpolicies.

b. Protection from retaliation. BRRB prohibits retaliation by or on behalf of

ATMAE against members, officers, directors and administrative and/or accounting

service providers making good faith complaints, reports or inquiries under this

policy or for participating in a review or investigation under this policy. This

protection extends to those whose allegations are made in good faith but prove to

be mistaken. BRRB reserves the right to take appropriate action against persons

who make bad faith, knowingly false, or vexatious complaints, reports or inquiries

or who otherwise abuse this policy.

c. Where to report. Complaints, reports or inquiries may be made under this policy

on a confidential or anonymous basis. They should describe in detail the specific

facts demonstrating the bases for the complaints, reports or inquiries. They should

be directed to the BRRB Commisssioner. If this person is implicated in the complaint,

report or inquiry, it should be directed to the BRRB Secretary. BRRB will

conduct a prompt, discreet, and objective review or investigation. BRRB may be

unable to fully evaluate a vague or general complaint, report or inquiry that is made

anonymously.

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INSURANCE POLICIES

I. Board Notice. The Management Company shall calendar when renewals are due for

all insurance policies and shall provide those dates to the Board. Forty-five days

before renewal, the Management Company shall inform the Board that the renewal

is due and, unless otherwise directed by the Board, ensure that the payment is timely

made.

II. Directors and Officers Insurance. BRRB shall maintain directors and officers

insurance in the minimum amount of $1,000,000 with a $1000.00 deductible,

assuming that it is not cost prohibitive.

III. Liability Insurance. BRRB shall have a general liability insurance policy,

including a provision for defamation. If the Board believes additional coverage is

necessary, BRRB shall also purchase for the annual meeting liabilityinsurance.

IV. Meeting Cancellation Insurance. The Board may decide to purchase cancellation

insurance policy for a particular meeting, depending on the cost and the provisions in

the hotel contract.

V. Annual Insurance Review. On an annual basis, the Management Company shall

provide a review of the insurance policies BRRB has, and make recommendations

whether there should be any changes to the policies. The Board shall make the

determination as to which policies shall be maintained