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Original approval: Banking and Financial Policies [Date] Revised Policy: Approved by Governing Board -[ Oct 15, 1999 Background The International Business Aviation Council was incorporated in Washington in 1981 as a non-profit organization. The principal source of corporate revenue derives from member contributions. Additional revenue is obtained from donations and operational programs. Contributions are established based on agreement of the Governing Board. Donations may be obtained from time to time from organizations or companies that may wish to support international business aviation. Operational Revenues are derived from programs such as the International Aircrew Identification Card. The day to day administration of the IBAC affairs is vested with the Director General in accordance with Bylaw Article XVII, Section 2 and Policies 10 – 6 and 20 -3. This Policy provides the authority of the IBAC Governing Board for the administration of IBAC financial accounts and reporting of accounts to the Governing Board. Policy It is IBAC policy that: A. Annual Budget – An annual budget will be prepared by the Director General and approved by the Governing Board at an annual meeting. B. Balanced Budget – The planned expenditures will equal the planned revenue. The Director General will manage the accounts with the goal of avoiding a deficit. C. Expenditures – The Director General is authorized to make expenditures in accordance with the approved annual budget. Discretion is authorized in reallocating expenditures among accounts, providing each line item is not varied by more than 20%, up to a maximum of $10,000, and providing the total budget is not exceeded and the change is reported at the next Governing Board meeting. Two signatures are required on any cheque over $20,000. D. Currency – Financial Management and reporting will be in US dollars (USD). Principal accounts will be in US dollars. Subsidiary accounts in other currencies will be converted to US dollars for reporting purposes. E. Financial Basis – Reporting of accounts will be on an ‘accrual basis’. F. Signing Authority – Any one of the following personnel have cheque signing authority: Chairman Vice Chairman Treasurer Director General Corporate Secretary G. Accounts – A current account will be established with a recognized chartered bank. The Director General shall ensure funds are well invested and large sums are put into interest funds or accounts. H. Chart of Accounts – A ‘Chart of Accounts’ will be established consisting of ‘Asset and Liability’ and ‘Revenue and Expenditure Accounts’. Accounts will be established to correspond with revenues and expenditures approved in the budget. I. Reporting – An ‘Annual Financial Statement’ will be prepared and submitted for approval by the Governing Board. The Report is to include : Balance Sheet(these will be available at the May Board Meeting) Revenue and Expenses Budget vs. Actual A quarterly Financial Status Report will be provided to the Chairman. Contents of the Status Report will be the same as the Annual Financial Statement. An example is included as Attachment 2. The Director General will supply the Chairman with a Statement of Travel Expenditures on a monthly basis. J. Review - An accountant review will be conducted on the of the accounts will be completed on an annual basis. K. Audit – An audit will be conducted every three years only at the request of the Governing Board. L. Tax Reports – Tax reports will be filed with the US Revenue Department and Revenue Canada as required and prior to the appropriate deadline. M. Reserve – A reserve will be retained, the amount of which will be approved by the Governing Board at the time of approval of the annual budget. Expenditures against the reserve will be approved by the Governing Board. Source of Policy: Original Policy Governing Board Meeting – May 1999 By-Laws, Article IX, Section 3, September 14, 1981 By-Laws, Article XVI, September 14, 1981 Policy 50 –1, Job Descriptions Attachments: Chart
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Policy
40-8
