FINANCIAL POLICIES AND PROCEDURES

1. Introduction
These rules are set up by the Board of Directors to ensure the protection and security of the Club finances, and minimize financial risk. They can be modified or changed by a vote of the Board of Directors. Any amendments or other changes must be recorded in the minutes of that Board meeting, and a revised copy of the financial policies and procedures must be furnished to each Director, Club Manager and the Club Accountant within 21 days of such a decision.

A finance committee shall be set up with the treasurer as chairperson to oversee Club finance matters and policies.

2. Banking
The Club shall maintain a minimum of three bank accounts, to provide for club savings deposits and/or other money investments, current peso account (s), and for the receipt of dollar remittances.

3. Signatories
Two signatories are mandatory for all Club checks. Authorized signatories for all bank checking and other accounts shall be decided by the Board of Directors, and this decision shall be noted in the minutes of that board meeting. In general, signatories on checks for covering day-to-day Club expenditures will be the Club Manager and the Treasurer. In absence of the Treasurer, the President or two other directors designated shall have the authority to be a second signatory.

4. Authority Levels
The levels of authority for Club Officers, Directors, staff to commit Club funds for either current expenditure, for maintenance, minor capital expenditure or to cover emergencies must be approved by the Board annually and duly minuted. Authorities at present are as follows:

Club Treasurer PhP100,000.00
Club Manager PhP20,000.00
Club Accountant PhP2,000.00

It is to be noted that authority to spend and commit money on behalf of the Club still requires consultation, and for payment by check to be signed by two signatories as defined in clause 3.

5. Annual Budgets
At the start of each financial year, The Club Manager in liaison with the Treasurer and Club Accountant, shall submit a budget proposal for approval by the Board of Directors, which shall cover capital expenditure, and a monthly income/ expenditure estimate, and any other forecasts related to tournaments, parties, celebrations and other Club activity.

6. Approvals for Capital Expenditure
All expenditure related to capital projects, and services and supply agreements with outside contractors with a duration longer than 6 months and for a contract value in excess of PhP30,000 must be supported by three quotations, and be approved by the Board of Directors. All such approvals shall be duly noted in the minutes of that board meeting.

7. Investments
Notwithstanding that the Club is a non-profit organization, the Board with prudent regard to building investments and/or acquisitions needed for the future viability of the Club may elect to place all or a pro[portion of the Development Fund or any other accumulated savings made by the Club in some form of legal investment other than the Club’s Bank accounts. Such transactions shall be restricted to Treasury Bills, Government Bonds or the like (but excluding stocks and shares) expressed in Pesos, US dollars or Euros. Such decisions must be approved by the Board of Directors and recorded in the minutes of that meeting prior to making a commitment to invest or divest any of such funds.

8. Petty Cash
It is the responsibility of the Club manager to advice the Treasurer and the Board of Directors what appropriate level of petty cash is required for the efficient running of the Club. At present this is set at PhP35,000.00 but may be changed by Board resolution.

9. Purchases
It is the responsibility of the Club Manager to maintain control over all purchases made on behalf of the Club and issue purchase orders (Pos), which can be subsequently correlated with suppliers’ invoices. At the same time the Club Manager must maintain an inventory control system in order to identify what purchases have to be made and when.

10. Cash Receipts
Only designated office staff reporting to the Club manager may receive cash or checks from members settling their Club dues against the official Club receipt. Employees are not permitted to receive cash from Club members except for the sale of coupon booklets or for the purchase of items from the sports shop. Members may now purchase coupon booklets by credit card. Any other monies or funds for tournaments, parties, celebrations etc must be received by the Treasurer, Club Manager, or Accountant against the issue of a Nomad’s official receipts and credited to the appropriate (Sports Section) account.

11. Financial Reports

11.1. Account reports
Within 21 days of the end of each calendar month, a full financial report for the month shall be submitted to the Board of Directors by the Treasurer in liaison with the Club manager and Club accountant. This should include:

Cash Balance
State of Membership and dues
Capital expenditure
Outstanding liabilities
Income and expenditure statement
Trial Balance sheet
Sports Sections’ account position

11.2. Management Reports
Monthly Actual against Budget for Current year showing variances
Capital expenditure for budget year by month
Charges in Bank balances month by month for budget year
Comparison of current year month with previous year

12. Sports Accounting
The Club Manager and Club Accountants shall keep records of each approved sports section accounts under the following guidelines:

Only the elected Captain, Vice-Captain or Treasurer of each Section shall be permitted to authorize expenses payable from the section’s accounts.
As section may refuse to accept expense claims unless such claims are supported by written authorization, invoices and cost details.
The Club Manager and Club Account shall produce a section account Statement monthly to be agreed by the sports section.
Account will be considered agreed if no comment is received within 14 days of the statement date.
For major events the Section must submit an event budget to the Board of Directors at least 30 days before the event.
No Section may enter into any financial or contractual commitment which would expose the Club to any liability without prior written approval of the Treasurer.
Any liability greater than PhP100,000 proposed by a Sports Section requires Board approval and a duly minuted note.

12.1. Sharing Special Event Revenues

F&B sales 100% to club
Entrance Fees 100% to Section
Sponsorship 50/50 split Club/section

13. Club Celebrations/Anniversaries/Parties
All plans for celebrations, anniversaries, parties and similar held by the Board of Directors. A Club Director shall be appointed by the Board to head a committee and manage the event. The director and Committee thus appointed shall submit a budget to the Treasurer for approval. All revenues generated from these events belong to the Club.

14. Club Insurances
It is responsibility of the Treasurer and Finance Committee to ensure that all Club insurances against various risks are kept up-to-date and renewed at the appropriate time. The following insurances are normally renewed at the end of each fiscal year (September):