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RMCMI

Celebrating 96 Years 1912 - 2008
Rocky Mountain Coal Mining Institute

Financial Management Policies

October 2006

Accounting Method

The Rocky Mountain Coal Mining Institute (RMCMI) shall account for finances using the cash method of accounting. The Board of Directors may determine that an alternative method is better suited to the needs of RMCMI, at which time said alternative method shall be implemented.

  1. Daily Financial Operations

    1. The day-to-day financial operations of RMCMI are handled by the Executive Director or his/her designee.

    2. Cash revenue such as membership dues, donations, fund raising revenue, and any other monies that are received by RMCMI shall be kept in a locked cabinet or other safe area until deposited in a RMCMI account.  Monies shall be promptly deposited in RMCMI accounts in accordance with prudent cash management practices.

    3. Checks disbursed from the RMCMI operating accounts must contain the signature of at least one authorized person.  A minimum of two persons must be authorized to sign RMCMI checks at all times.  Authorized persons shall include the Executive Director, the President of RMCMI (or his/her) designee(s) and such other persons as may be authorized by the Board of Directors.

    4. All checks over $4,100 must have two signatures or have written authorization by the President of RMCMI or his/her designee.  Written authorization may be given by email or fax.

    5. To the extent possible, the assistant will open the mail.  The Executive Director will open the mail only when the assistant is not available, and will provide the assistant with documentation for monies received in the assistant’s absence.  The assistant shall keep a record of all checks/cash/credit card payments received.  The Executive Director will deposit the funds in the appropriate account in accordance with the policies herein.  On a regular basis, but no less than monthly, the assistant will compare his/her record to all deposits made by the executive director or her/his designee to verify that all funds received have been duly deposited.

    6. The Executive Director shall maintain appropriate communications with persons or companies who send funds in excess of $500 to the Institute to assure that such funds have been duly received and appropriately credited.  Where a question arises as to receipt and handling of such funds, the Executive Director shall diligently investigate and, if appropriate, correct the record.

    7. The Executive Director or her/his designee will keep a record of all deposits made and keep accurate documentation of all checks written.

    8. Employee payroll net pay shall be computed on a monthly basis.  Employees may receive a mid-month draw if requested.  Taxes, benefits, insurance and other employee related expenses shall be paid as appropriate.

    9. The Executive Director shall assure that all RMCMI expenditures are paid in a timely manner.

    10. The Executive Director, or any other individual with signing authority, may not issue a check in excess of $250 to herself/himself or any related party, without the written permission of the RMCMI President or his/her designee.  An independent accountant, who is not related to or affiliated with the Executive Director, may be designated by the RMCMI Board of Directors to issue and sign checks payable to the executive director.  The independent accountant shall be authorized only to sign checks drawn on the RMCMI general checking account, and any checks so written and signed may only be drawn on that account.  The independent accountant shall keep separate records of all such checks issued, and compare those to the bank statements and the books of the Institute on a monthly basis.  Such signing authority is subject to the limitations of item II-D above.

  2. Monthly Responsibilities

    1. The RMCMI Treasurer ensures that all financial duties, performed by the Executive Director or her/his designee, are completed in an accurate and timely manner.

    2. The RMCMI President ensures that all financial duties assigned to the Treasurer are completed in an accurate and timely manner.

    3. The independent accountant shall prepare bank reconciliations on a monthly basis for all accounts.  The reconciliations will be reviewed and compared to the Institutes financial statements on a monthly basis by the Executive Director, and on a quarterly basis (or such other interval as may be deemed appropriate) by the RMCMI Treasurer.

    4. The Executive Director shall prepare monthly financial statements that will be available for review by the RMCMI Treasurer and Board of Directors upon request.

  3. Annual Responsibilities

    1. The Executive Director shall consult with a contracted certified public accountant for tax report preparation and ensure the reports are submitted in a timely manner.

    2. Upon authorization by the Board of Directors, an annual financial audit may be completed by an independent certified public accountant.

  4. Petty Cash

    1. A petty cash fund of no more than $200 may be established for miscellaneous charges. All purchases using petty cash must be substantiated by a receipt.  The fund will be reimbursed on an as-needed basis.

  5. RMCMI Checking/Savings/Investment Accounts:

    1. All established checking/savings/investment accounts must be authorized by the Board of Directors.  The Executive Director and others as authorized by the board will be authorized to draw on these accounts as outlined above. Currently the following accounts are established:

      1. Patron Investment Account – RBC Dain Rauscher.  This account is used to invest any excess funds not immediately needed by the Patron/Scholarship Checking Account. The investment account is invested in the appropriate funds according to RMCMI’s Fiscal Policy, as established by the Board of Directors.

      2. Patron/Scholarship Checking Account – RBC Dain Rauscher.  This account is used for all funds designated for the Scholarship program. Income includes, but is not limited to, Patron donations, contributions from each of the eight states’ Vice Presidents share of scholar convention expenses and memorial gifts.  All expenses for Patron stationery, bars, and plaques, scholarship awards and expenses such as postage, applications, phone calls and convention expenses for the scholars are paid from this account.  Any amounts in excess of what the board deems appropriate at the time of the fall board meeting are transferred to the Patron Investment Account.

      3. General Checking Account – Chase, Littleton, CO, (Rich Bate co-signer) – Non-interest bearing.  This account is used for all operating expenses for the Institute.  Income is received from Membership dues, Convention and State meeting registrations, Sponsorships, refunds, and miscellaneous income.  All expenses for the Institute, other than Patrons/Scholarship, are paid from this account.  Public Education and Sponsorships is a sub-category of this account and income/expenses for Public Ed and Sponsorships are kept separate from the general fund.

      4. General Savings Account – Chase, Littleton, CO.  Cash that is not needed to meet the current financial obligations of the Institute is invested in a General Savings Account to earn interest.

      5. Investment CDs for the General Account – Countrywide Bank.  Amounts may be invested in CDs from time to time to earn a higher rate of return than what the General Savings Account provides.  Investments are made under the direction of the Board of Directors.

  6. Miscellaneous.

    1. If non-cash assets, such as stocks are received by RMCMI, the Board of Directors will determine the disposition of those assets.
    2. Accounts Receivable.  The Executive Director shall diligently pursue collection of accounts receivable, including membership dues, sponsorship monies, and other obligations to the Institute.

 

Approved by Rocky Mountain Coal Mining Institute Board of Directors.