PREAMBLE

It is the Board's responsibility to oversee the financial management of the Foundation, exercise due diligence to protect charitable property and ensure that controls remain appropriate to the Foundation's staffing, systems and risk profile.

POLICY STATEMENT:

Signing Officers - The signing officers of the  ________________ Community Foundation are any two of the Executive Director/CEO, Board Chair, Board Vice-Chair, Secretary, Board Past-Chair and Treasurer.

Changing Signing Officers - When the Board authorizes a change in signing officers, the Board secretary prepares, signs and seals a copy of the motion authorizing the change. This copy is endorsed by two of the previous signing officers. A copy of the document is filed with the Foundation's financial institution(s).

Accounts Payable - Accounts will be paid within 30 days of the invoice date.

Payments - For consistency in information and control, two authorizations are required on payments.

Monthly Accounting - The monthly accounting will be completed by the end of the following month. Cheques, deposits and journal entries will be posted monthly to the General Ledger.

Quarterly Financial Statements - The most recent quarterly financial statements (unaudited) will be presented to the Board as part of the Consent Agenda at each meeting.

Government Remittances - A statement signed by the Executive Director will be included on the monthly financial statements confirming that government payroll remittances for the previous month have been remitted and that payroll is current. Remittances will be accrued to the appropriate month.

Banking - Cheques will be restrictively endorsed for deposit to the Foundation's account and deposited promptly. Remotely deposited items will be retained only for the period required by the financial institution and this policy, then securely destroyed after deposit is verified. Images and supporting records will be stored in an approved system.

Petty Cash - Petty cash reimbursement will be made on a monthly basis. All receipts must be itemized and allocated to the relevant general ledger account. Receipts must be stamped with the date reimbursed.

Authorization Limit - The Executive Director/CEO has the authorization to purchase or order items within the Foundation's approved annual budget for any individual amount under $10,000. Non-budgeted items in excess of

$5,000 must be submitted to the Board for approval.

Staff and Volunteer Travel Reimbursement - Travel will be reimbursed on a monthly basis upon submission of documentation outlining destination, kilometers traveled and reason for travel. The Executive Director/CEO will be responsible to annually review the mileage reimbursement and make recommendations to the board for any changes. Travel advances will be given with appropriate supporting documentation and must be approved by a signing officer. For attendance at conferences, a report to the Board must be prepared itemizing costs and rationale for attending conference as part of the annual budget process. Board approval must be given before incurring any conference expense.

Year-End Financial Reporting - The Foundation's fiscal year-end is [insert fiscal year-end]. Materials required for the applicable audit, review engagement or other year-end financial reporting will be completed according to a Board-approved timetable. Draft financial statements and the public accountant's report, where applicable, will be presented to the Finance or Audit Committee and Board for review.

Donation Receipts - Official donation receipts will be issued under the Donation Recording and Receipting Policy and will contain the prescribed information. Donor restrictions will be recorded in the gift, fund and accounting records rather than treated as required receipt content. Deposit reports will cross-reference the applicable receipt or donor record.

Budget - A budget should be prepared on an annual basis and approved by the board. The draft budget will be presented to the Board no later than the first board meeting of the fiscal year

Annual Meeting - The financial statements and the report from the public accountant, where applicable, will be presented to the members as required by the governing statute. Members will appoint the public accountant or approve a legally available waiver or level of engagement in the manner required by that statute.

Flow-through donations - All flow through donations are to be recorded on the fund income statement.

Grants - All grants made by the foundation are to be recorded on the endowment or flow-through fund expense statement. Grants for the following year which come from flow-through funds received in the current year are to be recorded as Grant Commitments and Deferred Revenue on the balance sheet.

Investment Income - Investment income includes all income from cash, interest, dividends, coupons, investments, realized and unrealized capital gains net of capital losses, personal property or real property.

Investment Fees - Investment fees will be recognized monthly on the endowment or flow-through fund expense statement and on the balance sheet.

Fund Balances - Endowment and Flow-through funds will be reconciled on a monthly basis.

Capital Items - Capital items valued at more than $250 will be capitalized and depreciated on a declining balance method at rates designed to amortize the cost of fixed assets as follows: equipment and furnishings at 20%, computer equipment at 30%. Additions are depreciated until the month of disposition. Gains or losses on assets sold or otherwise disposed of are included in the statement of operations. Fixed assets are recorded at cost.

Expenditures for maintenance and repairs are charged to operating expenses.

Funds available for grants - Adequate cash must be available in the foundation bank accounts to ensure that the grant commitments can be paid in a timely fashion.

Monthly Cheque Register: A report listing all cheques issued on each bank account will be prepared and vetted by a signing officer who is not the Executive Director/CEO. The Executive Director/CEO will provide the Finance Committee with assurance annually that this report is being produced and vetted as per the policy.

Endowment Bank Charges - Bank charges on the endowment fund will be shared by the pool of funds.

Reviewing Accumulated Operating Surplus - After the annual financial results are approved, the Finance Committee will review current and future operating needs, reserves, restricted funds and the disbursement quota and, where warranted, recommend a lawful allocation or transfer to the Board.

Per Diem - When employees and volunteers are doing foundation business, the following per diem applies: Breakfast - $12; Lunch - $20; Dinner - $30, and if gone the entire day, the daily per diem will be $60.

Receipts (non-donation): The Foundation issues, by request, non-charitable receipts for revenue that does not meet the definition of a donation, whether in cash or in kind.

Insurance - The Executive Director/CEO will prepare a report for the board annually on the Foundation's insurance coverage. The report will include information on substantive changes to the Foundation's operations that could impact coverage. The Foundation will seek comparative quotes every five years.

Investment Acquisition Costs: When the Foundation acquires new investment assets, the acquisition costs are expensed in the year in which the asset is acquired.

Gifts in Kind: Gifts-in-kind are recognized when fair value can be reasonably be estimated, the materials are used in the normal course of operations and the organization would have purchased the materials or services if they had not been contributed.

Revenue Recognition: Contributions are recognized as revenue of the appropriate Fund as received, except for certain contributions that are held in trust for the Foundation. Flow-through donations are treated as deferred revenue until disbursed.

Canadian Law and Regulatory Compliance

The Foundation will maintain adequate books and records, a documented chart of accounts, monthly bank and investment reconciliations, controls over journal entries and restricted funds, and Board-approved signing and spending authorities. Financial records must support the T3010, official receipts, payroll, fundraising allocations, qualifying disbursements and the disbursement-quota calculation.

The financial statements and public-accountant engagement will comply with the Foundation's governing statute, articles, bylaws, revenue thresholds and valid member resolutions. The policy's reference to an audit applies only where an audit is legally required or properly chosen; where a review engagement, compilation or waiver is legally permitted and validly approved, the applicable level of assurance will be used.

A donor restriction is recorded in the accounting and fund records and acknowledged in appropriate donor documentation; it is not treated as a required statement on the official donation receipt. Official receipts will contain the prescribed information and eligible amount required by the Income Tax Act and Regulations.

Application note: This template must be read with the Foundation's articles, bylaws, gift terms and the federal, provincial or territorial laws that apply to its incorporation, activities and operating jurisdictions. Organization-specific facts and provincial requirements require lawyer confirmation before adoption.

Monitoring: This policy will be reviewed annually during the meeting with the auditor.

Board Acceptance: This policy was approved/reaffirmed at the _______________ Board meeting.