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Financial Controls Policy: Difference between revisions

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Created page with "== Purpose == This policy outlines how VONet manages its financial resources to ensure accountability, transparency, and legal compliance. It is designed to prevent misuse of funds, protect those handling money, and build trust with donors, volunteers, and the community. == 1. Roles and Responsibilities == * The Director oversees day-to-day financial operations. * The Advisory Council provides oversight and approves major expenditures. * A designated bookkeeper or treas..."
 
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== Purpose ==
__TOC__
This policy outlines how VONet manages its financial resources to ensure accountability, transparency, and legal compliance. It is designed to prevent misuse of funds, protect those handling money, and build trust with donors, volunteers, and the community.


== 1. Roles and Responsibilities ==
== Summary ==
* The Director oversees day-to-day financial operations.
We follow Raft’s financial rules. This page shows how we comply.
* The Advisory Council provides oversight and approves major expenditures.
VONet is a program of Raft, not a separate entity.
* A designated bookkeeper or treasurer (volunteer or staff) manages records and reports.
''Raft policy: [https://docs.raft.foundation/ Raft Handbook – Overview]''


== 2. Bank and Financial Accounts ==
== Who this is for ==
* All organizational funds must be deposited into a dedicated VONet account.
* Donors and volunteers: how funds are handled.
* Accounts will be held in the organization’s name or under the fiscal sponsor’s name, if applicable.
* Project Leads and Committee: steps before Raft review.
* No personal accounts may be used for storing or managing VONet funds.
* Raft admin team: our local steps and contacts.
''Raft policy: [https://docs.raft.foundation/ Raft Handbook – Audience]''


== 3. Spending Authorization ==
== Access ==
* All expenses over $500 require dual approval by two unrelated individuals (e.g., the Director and one council member).
Some Raft policy details live behind login. Where needed, we link to the Handbook and give local steps.
* Routine or budgeted purchases under $500 may be approved by the Director alone.
''Raft policy: [https://docs.raft.foundation/ Raft Handbook – Access]''
* Any spending outside the approved budget must be reviewed by the Advisory Council.


== 4. Receipts and Documentation ==
== Restricted Fund ==
* Receipts must be submitted for all purchases, including reimbursements.
* All gifts go to a Raft Restricted Fund for VONet.
* Expense reports must be itemized and submitted within 30 days of purchase.
* We never spend more than the fund balance.
* All receipts and financial records will be stored digitally for at least 7 years.
* Raft can redirect funds to meet the project purpose if needed.
* For accounting and tax, the fund is Raft’s asset.
''Raft policy: [https://docs.raft.foundation/ Raft Handbook – Restricted Funds]''


== 5. Reimbursements ==
== Disbursements ==
* Volunteers and staff may request reimbursement for approved expenses.
# Submit receipts or invoices as Raft directs.
* A reimbursement form must be submitted with original receipts.
# Raft staff review for project purpose and terms.
* Payments will be made within 14 days of approval.
# After approval, Raft pays or reimburses.
# Get Raft’s '''written''' OK before any foreign expense.
''Raft policy: [https://docs.raft.foundation/ Raft Handbook – Disbursements & Reimbursements]''


== 6. Checks and Payments ==
== Where money sits ==
* Checks over $500 must have two signatures or digital approvals.
* Keep all project money in Raft accounts.
* No blank checks will be signed.
* If money lands elsewhere, move it to Raft at once.
* Online payments (e.g., PayPal, bank transfers) must be documented with matching receipts and authorization records.
''Raft policy: [https://docs.raft.foundation/ Raft Handbook – Banking & Accounts]''


== 7. Cash Handling ==
== Contracts and purchasing ==
* VONet avoids handling cash whenever possible.
* Raft signs leases, contracts, and MOUs.
* If cash is collected (e.g., for donations or event sales), it must be counted by two people and deposited within 48 hours.
* AP/AR and disbursements run in Raft’s name.
* A log will be kept for all cash transactions.
* Items bought for the project are Raft property used for VONet.
''Raft policy: [https://docs.raft.foundation/ Raft Handbook – Contracts & Procurement]''


== 8. Financial Reporting ==
== Administrative allocations and costs ==
* Monthly financial summaries will be prepared and reviewed by the Advisory Council.
* Admin allocation on deposits:
* An annual financial report will be shared publicly and submitted to the fiscal sponsor, if applicable.
** 10% standard.
* All funds and expenditures must align with VONet’s nonprofit mission.
** 9.25% on gifts ≥ $250,000 and < $1,000,000.
** 8.5% on gifts ≥ $1,000,000.
* Project pays: insurance tied to our work.
* Project pays: card processing and merchant fees.
* Project pays: employment and benefits costs for project staff.
* Project may pay: project-specific legal (coordinate with Raft first).
* Raft keeps any interest earned.
''Raft policy: [https://docs.raft.foundation/ Raft Handbook – Fees, Insurance, and Costs]''


== 9. Fiscal Sponsor Policies ==
== 501(c)(3) compliance ==
If VONet operates under a fiscal sponsor, their financial policies and reporting requirements take precedence. 
* All spending must serve our charitable purpose.
All spending, fundraising, and documentation must comply with the sponsor’s rules and procedures.
* Lobbying is limited. Campaign activity is banned.
* Donors cannot control use of funds.
''Raft policy: [https://docs.raft.foundation/ Raft Handbook – Compliance & IRS Rules]''


== 10. Review and Updates ==
== VONet approval steps (local) ==
This policy will be reviewed annually and updated as needed to reflect changes in operations, regulations, or fiscal sponsor requirements.
These checks come '''before''' Raft review.
* Under $500: Project Lead approves in writing.
* $500–$5,000: Project Lead + one committee member approve.
* Over $5,000 or any contract: Project Lead + committee approve, then send to Raft.
These steps add transparency. They do not replace Raft approval.
''Raft policy: [https://docs.raft.foundation/ Raft Handbook – Project Approvals]''
 
== Budget, tracking, and records ==
* We plan an annual budget and update it quarterly.
* Open Collective is our public dashboard for budgets and payouts: [https://opencollective.com/vonet Open Collective].
* Raft’s systems are the official books and records.
* Keep working copies here; Raft holds the official record.
* See also: [[Document Retention Policy]].
''Raft policy: [https://docs.raft.foundation/ Raft Handbook – Recordkeeping & Reporting]''
 
== Separation of duties (local) ==
* Requester ≠ Approver.
* Approver ≠ Payer.
* Reconciler ≠ Requester or Approver.
''Raft policy: [https://docs.raft.foundation/ Raft Handbook – Internal Controls]''
 
== Documentation required ==
Every expense must include:
* Business purpose tied to project goals.
* Itemized receipt or invoice.
* Approval trail (see “VONet approval steps”).
* Proof of delivery or completion when relevant.
''Raft policy: [https://docs.raft.foundation/ Raft Handbook – Documentation Standards]''
 
== Updates ==
Raft updates its docs regularly. We review monthly and adjust this page.
Last reviewed: 2025-08-30.
''Raft policy: [https://docs.raft.foundation/ Raft Handbook – Updates & Changelog]''
 
== Contacts ==
* Project Lead: see [[Team]].
* Raft Operations: team@raft.foundation (see the Raft Handbook).
''Raft policy: [https://docs.raft.foundation/ Raft Handbook – Who to Contact]''
 
== Links ==
* Raft Handbook: [https://docs.raft.foundation/ Raft Handbook]
* Open Collective (VONet): [https://opencollective.com/vonet Open Collective]

Latest revision as of 19:50, 30 August 2025

Summary

We follow Raft’s financial rules. This page shows how we comply. VONet is a program of Raft, not a separate entity. Raft policy: Raft Handbook – Overview

Who this is for

  • Donors and volunteers: how funds are handled.
  • Project Leads and Committee: steps before Raft review.
  • Raft admin team: our local steps and contacts.

Raft policy: Raft Handbook – Audience

Access

Some Raft policy details live behind login. Where needed, we link to the Handbook and give local steps. Raft policy: Raft Handbook – Access

Restricted Fund

  • All gifts go to a Raft Restricted Fund for VONet.
  • We never spend more than the fund balance.
  • Raft can redirect funds to meet the project purpose if needed.
  • For accounting and tax, the fund is Raft’s asset.

Raft policy: Raft Handbook – Restricted Funds

Disbursements

  1. Submit receipts or invoices as Raft directs.
  2. Raft staff review for project purpose and terms.
  3. After approval, Raft pays or reimburses.
  4. Get Raft’s written OK before any foreign expense.

Raft policy: Raft Handbook – Disbursements & Reimbursements

Where money sits

  • Keep all project money in Raft accounts.
  • If money lands elsewhere, move it to Raft at once.

Raft policy: Raft Handbook – Banking & Accounts

Contracts and purchasing

  • Raft signs leases, contracts, and MOUs.
  • AP/AR and disbursements run in Raft’s name.
  • Items bought for the project are Raft property used for VONet.

Raft policy: Raft Handbook – Contracts & Procurement

Administrative allocations and costs

  • Admin allocation on deposits:
    • 10% standard.
    • 9.25% on gifts ≥ $250,000 and < $1,000,000.
    • 8.5% on gifts ≥ $1,000,000.
  • Project pays: insurance tied to our work.
  • Project pays: card processing and merchant fees.
  • Project pays: employment and benefits costs for project staff.
  • Project may pay: project-specific legal (coordinate with Raft first).
  • Raft keeps any interest earned.

Raft policy: Raft Handbook – Fees, Insurance, and Costs

501(c)(3) compliance

  • All spending must serve our charitable purpose.
  • Lobbying is limited. Campaign activity is banned.
  • Donors cannot control use of funds.

Raft policy: Raft Handbook – Compliance & IRS Rules

VONet approval steps (local)

These checks come before Raft review.

  • Under $500: Project Lead approves in writing.
  • $500–$5,000: Project Lead + one committee member approve.
  • Over $5,000 or any contract: Project Lead + committee approve, then send to Raft.

These steps add transparency. They do not replace Raft approval. Raft policy: Raft Handbook – Project Approvals

Budget, tracking, and records

  • We plan an annual budget and update it quarterly.
  • Open Collective is our public dashboard for budgets and payouts: Open Collective.
  • Raft’s systems are the official books and records.
  • Keep working copies here; Raft holds the official record.
  • See also: Document Retention Policy.

Raft policy: Raft Handbook – Recordkeeping & Reporting

Separation of duties (local)

  • Requester ≠ Approver.
  • Approver ≠ Payer.
  • Reconciler ≠ Requester or Approver.

Raft policy: Raft Handbook – Internal Controls

Documentation required

Every expense must include:

  • Business purpose tied to project goals.
  • Itemized receipt or invoice.
  • Approval trail (see “VONet approval steps”).
  • Proof of delivery or completion when relevant.

Raft policy: Raft Handbook – Documentation Standards

Updates

Raft updates its docs regularly. We review monthly and adjust this page. Last reviewed: 2025-08-30. Raft policy: Raft Handbook – Updates & Changelog

Contacts

  • Project Lead: see Team.
  • Raft Operations: team@raft.foundation (see the Raft Handbook).

Raft policy: Raft Handbook – Who to Contact

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