Best Practices for Financial Management and Control
Click on "related links" for any statement below to see the most relevant Resources.
| 1. | To ensure proper control of funds and reasonable, consistent, and clear direction to staff and volunteers in the management of the society’s money, develop and apply prudent and complete financial policies and procedures approved by or developed in conjunction with a professional accountant that include:
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| 2. | To ensure proper control of funds and that records and reports are acceptable to funding authorities and meaningful to the Board of Directors, use an accounting system (internal or external) approved by or developed in conjunction with a professional accountant. Related Links >> |
| 3. | To meet statutory requirements, facilitate efficient administration, and demonstrate diligence, accountability, and respect for suppliers, staff, and tenants, maintain financial records (e.g. invoices, tenant ledgers, employee files) that are:
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| 4. | To avoid overlooking required filings, fees, or reports that could result in fines or other liabilities against management and/or directors, develop and use a comprehensive annual schedule for complying with all requirements (e.g. tax remittances). Related Links >> |
| 5. | So the society can make necessary adjustments to discretionary expenses and avoid year-end deficits, report financial results (revenue and expenses, cash flow) to the Board on a monthly basis and take quick action on any problems. Related Links >> |
| 6. | To ensure the financial statements accurately report the society’s financial position, to comply with statutory requirements and operating agreements, and to benefit from professional advice on financial practices, arrange for an annual external audit and report the results to the Board. Related Links >> |
| 7. | To enhance the society’s accountability and fulfill the Board’s fiduciary responsibility, assess and implement audit recommendations regarding policies, procedures, and the accounting system. Related Links >> |
| 8. | To protect the society’s assets and its directors against financial losses, carry adequate building and liability insurance. Related Links >> |
