FINANCIAL POLICIES AND PROCEDURES FOR LWVNM
Adopted 2010, Revised 11/12/16; 1/28/17; 7/20/24; 1/17/26
These policy and procedural guidelines are designed to establish management systems that assure that fiscal responsibility is maintained when personnel changes and that support rather than hinder the work of the League.
Authorities and Responsibilities
1. The board of directors has the authority to execute any financial policies it deems to be in the best interest of the organization, within the parameters of the organization’s articles of incorporation, bylaws, and federal, state, and local law.
2. The president together with the board of directors has the responsibility to ensure compliance with these policies and procedures.
3. The board of directors is responsible for ensuring that all financial reports present its financial condition and results of operations fairly and completely.
4. The board of directors shall arrange for an annual review of LWVNM financial records. The review shall follow an adopted LWVNM Financial Review Procedure. See Appendix II.
5. The treasurer, in consultation with the Executive Committee, shall have the authority to manage LWVNM assets. The treasurer shall keep records in compliance with applicable laws and regulations and provide the documentation needed to perform the financial reviews.
6. A budget committee appointed following the LWVNM bylaws shall prepare the budget for the upcoming two years for the state Convention. The treasurer shall be an ex-officio member of this committee but not its chair. The budget proposed by the budget committee (for approval by the board and the state Convention) shall include the estimated carry forward of funds into the new fiscal year and any unfulfilled financial commitments made during the previous years. It shall also indicate plans for any funds beyond the amount committed already.
7. The board shall maintain a minimum cash balance of $10,000. Reductions below $10,000 must be approved by the board.
8. Contracts shall be reviewed and approved by the president and the treasurer. Short-term
contracts for special projects that are approved by the board can be approved by the person(s) assigned the responsibility for that project.
9. The budget committee shall review the LWVNM Financial Policies and Procedures and consider amendments at least once every two years. The committee will bring any proposed changes to the board for approval.
Financial Reporting
1. The fiscal year for LWVNM is from May 1 to April 30.
2. The two-year budget for the LWVNM General Fund is prepared by the budget committee during the winter preceding a state Convention (odd-numbered years), approved by the board, and ratified or amended by the LWVNM Convention.
3. The treasurer shall provide a financial report to the board at each of its meetings. A report against budget will be provided at least twice during the fiscal year. Significant deviations from budget should be addressed in the accompanying narrative.
Grant funding and the expenditures associated with individual grants should be included in the financial reporting to the board.
Commitments for future expenditures, such as when grant expenditures cross into a new fiscal year, should be included in reporting.
4. A preliminary annual report for the first year of the two-year budget cycle shall be presented to the Council meeting of LWVNM (even-numbered years), together with budget adjustments proposed by the board.
5. Budget adjustments approved by Council shall be documented in the annual financial report.
6. A two-year financial report (for the period of the concluding biennium)
shall be presented to the Convention of LWVNM.
7. The report of the biennial review committee shall be delivered to the board as expeditiously as possible.
Operating Procedures
1. The president and the treasurer shall have the authority to expend funds within the limits described by these policies and procedures. Expenses by the president shall be reported to the treasurer within two days and the required hard copy documentation should follow within seven days.
2. A reimbursement of expenses form system shall be used to document expenses incurred by members. See Appendix III.
3. The president may authorize up to $500 beyond budgeted amounts without prior approval of the board. Receipts and disbursements for non-budgeted items shall be evaluated by the board. Budget amendments, including new line items, may be proposed and approved by the Board if appropriate. Unbudgeted expenses above $500 must be reviewed and approved by the Board prior to disbursement. Written approval by two members of the executive committee is required for expenditure items in the budget exceeding $1000.
4. Electronic transfers out of the LWVNM account require the approval of the Executive Committee.
5. The treasurer shall maintain an accounting system that will assure consistency and availability of records over time, including regular backups of all data.
6. Acknowledgement of donations should be sent out by the treasurer within two weeks of receipt.
Safeguards and Controls
1. Invoices from unfamiliar or unusual vendors must be reported to and confirmed by the Executive Committee prior to payment.
2. No checks may be written to “cash” or “bearer.” No holder of the checkbook can write a check to her/himself. No checks shall be signed before both the recipient and the amount payable have been filled in.
APPENDIX I: THE EDUCATION FUND
1. LWVNM may also use the LWVNM ED Fund as the fiscal agent to receive eligible donations and grant funds on behalf of LWVNM.
APPENDIX II: FINANCIAL REVIEW PROCEDURE
1. CHECKING AND INVESTMENT ACCOUNTS
a. Obtain reconciliations at fiscal year-end for all accounts.
b. Verify that reconciliations agree with amounts on financial report.
c. Compare balance on reconciliations to the fiscal year end bank/brokerage statements.
d. Verify reconciling items (note-some of these can be verified by examining items in the following month bank/brokerage statements).
2. FUNDRAISING
a. Obtain from the treasurer the amount of revenue and expenses for each fundraising event.
b. Ask the individual in charge of each event if the amounts appear reasonable.
c. If the amount does not appear reasonable, ascertain what caused the differences.
3. INTEREST INCOME
Compare the amounts shown on the financial report to the bank/brokerage statements and ascertain reasons for any differences.
4. EXPENSES
Randomly select five disbursements from each month and determine that they have adequate supporting documentation and have been recorded in the proper expense account in the financial report.
5. BUDGET
Investigate any significant differences between actual and budgeted amounts.
6. FINDINGS
Review findings with the treasurer prior to presenting the report to the board.
APPENDIX III: BOARD EXPENSES
Reimbursement
Board members and other League members who incur expenditures on behalf of the League must complete a Reimbursement of Expenses form or a Reimbursement of Advocate Expenses Form and submit it to the treasurer along with supporting data (receipts, etc.) The originator of any expense is responsible for assigning it to the proper budget category on this form.
In-Kind Expenses: Donating expenses related to League work (in-kind donations) is
encouraged. Actual expenses should be reported in order that the League may have an accurate record of its expenses. Items 1 through 7 below apply. The appropriate form should be used and clearly marked “In-Kind Expenses.”
Reimbursement Forms may be found at: https://lwvnm.org/documents.php
Delegate Expenses
LWVNM will pay the registration fees for board members and local League presidents attending the LWVNM Convention and Council.
LWVNM delegates to the LWVUS Convention, Council, and workshops are chosen by the president and approved by the board. Their registration fees are paid by LWVNM.
State Board Business
In connection with all essential state board business, including attendance at a Convention or Council, allowable expenditures that may be reimbursed include the following:
1. Car travel at IRS charitable rate. Members are requested to car pool when
workable.
2. Night’s lodging at a reasonable rate for double occupancy.
3. Meals at a reasonable rate.
4. Meals considered as part of a program.
5. All duplicating, postage and telephone expenses necessary to carry out board
responsibilities.
6. Child care at a reasonable rate.
7. Per diem of $8 for each day when the lobbyist spends at least 4 hours on
lobbying business. Lobbyists must give the treasurer a list of days for which
they qualify.