Section 6.3: ASSP Operating Funds
I. Purpose and Scope
Under the ASSP bylaws, the Board of Directors is responsible for ASSP's broad fiscal policy and managing the affairs of ASSP. This Society Operating Guideline is intended to provide guidelines for the Finance Committee and staff to effectively manage ASSP operating funds.
II. Operating Funds
Operating funds are defined as those funds needed for the effective management of ASSP's day-to-day operations. Sources of these funds include:
- Membership dues, registration fees and other revenue from ASSP operations;
- Drawdowns from ASSP's investment accounts;
- Short-term debt.
With oversight from the Finance Committee, staff will work to optimize the use of these funds.
III. Commercial Bank Accounts
Staff will establish commercial bank accounts necessary for the effective collection of cash and payment of expenses. These may include checking, savings, money market or other such commercial bank accounts. Staff will periodically review such arrangements with the Finance Committee.
IV. Drawdowns From Investment Accounts
ASSP maintains its financial reserves in one or more investment accounts. From time to time, staff may recommend the drawdown of these reserves to fund ASSP operations. Both the Chief Executive Officer and the Director, Finance shall approve any drawdown.
These funds shall be deposited in appropriate commercial bank accounts as noted above. The Vice President, Finance, will be notified and approve any drawdown before any action is taken. The Finance Committee and Board of Directors will be updated at least quarterly regarding financial reserves.
V. Short-Term Debt
Short-term debt is defined as debt with a maturity of one year or less and shall be limited to lines of credit or similar instruments available through commercial banks or other major financial institution.
Staff may drawdown on a line of credit as it deems necessary to fund day-to-day ASSP operations.
The line is to be used to provide a short-term source of funds to manage cash flow, if needed. As such, it should be used sparingly to minimize interest expense and P&L impact. These funds shall be deposited in appropriate commercial bank accounts as noted above.
To maintain controls over the line, any drawdowns will require the approval of both the Chief Executive Officer and the Director, Finance. The Vice President, Finance, will be notified and approve any drawdown before any action is taken. The Finance Committee and Board will be updated at least quarterly regarding the line.
The Vice President, Finance, will promptly inform the Finance Committee and Board of Directors of any significant financial shortfall or issue.
Approved By | Date: Board of Directors | 1/2023
Replaces Edition Dated: 05/2022
Next Revision Due: 1/2026