Financial Controls Policy

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 treasurer (volunteer or staff) manages records and reports.

2. Bank and Financial Accounts

• All organizational funds must be deposited into a dedicated VONet account.
• Accounts will be held in the organization’s name or under the fiscal sponsor’s name, if applicable.
• No personal accounts may be used for storing or managing VONet funds.

3. Spending Authorization

• All expenses over $500 require dual approval by two unrelated individuals (e.g., the Director and one council member).
• Routine or budgeted purchases under $500 may be approved by the Director alone.
• Any spending outside the approved budget must be reviewed by the Advisory Council.

4. Receipts and Documentation

• Receipts must be submitted for all purchases, including reimbursements.
• Expense reports must be itemized and submitted within 30 days of purchase.
• All receipts and financial records will be stored digitally for at least 7 years.

5. Reimbursements

• Volunteers and staff may request reimbursement for approved expenses.
• A reimbursement form must be submitted with original receipts.
• Payments will be made within 14 days of approval.

6. Checks and Payments

• Checks over $500 must have two signatures or digital approvals.
• No blank checks will be signed.
• Online payments (e.g., PayPal, bank transfers) must be documented with matching receipts and authorization records.

7. Cash Handling

• VONet avoids handling cash whenever possible.
• If cash is collected (e.g., for donations or event sales), it must be counted by two people and deposited within 48 hours.
• A log will be kept for all cash transactions.

8. Financial Reporting

• Monthly financial summaries will be prepared and reviewed by the Advisory Council.
• An annual financial report will be shared publicly and submitted to the fiscal sponsor, if applicable.
• All funds and expenditures must align with VONet’s nonprofit mission.

9. Fiscal Sponsor Policies

If VONet operates under a fiscal sponsor, their financial policies and reporting requirements take precedence. All spending, fundraising, and documentation must comply with the sponsor’s rules and procedures.

10. Review and Updates

This policy will be reviewed annually and updated as needed to reflect changes in operations, regulations, or fiscal sponsor requirements.