Finance Guidlines
Financial Planning and Budgeting
1.1. The Association shall engage in comprehensive financial planning and budgeting processes to effectively manage its financial resources. This includes:
a. Developing an annual budget that aligns with the Association's goals and objectives. The budget should consider projected income and expenses, funding sources, and any necessary contingencies.
b. Reviewing the budget periodically to assess its accuracy and relevance. Adjustments may be made as needed to ensure financial objectives are being met.
c. Monitoring the Association's financial performance against the budget on a regular basis. Any significant variances should be identified and addressed promptly.
d. A non-founder, independent treasurer will be allocated to the role of ‘finance officer’ with the duty to independently oversee the Research Ethics Association accounts transparently. In the of a Finance Officer, this may include other REA members with distinct roles.
Revenue and Income Management
2.1. The Association shall establish procedures for managing its sources of revenue and income. These procedures include:
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Maintaining accurate records of all revenue sources, such as membership fees, donations, grants, sponsorships, and event registrations.
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Implementing appropriate financial controls to ensure the integrity and security of revenue collection processes.
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Regularly reconciling revenue records with bank statements to ensure accuracy and identify any discrepancies.
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Considering diversification of revenue streams to mitigate financial risks and enhance financial stability.
Expenditure Authorization and Payment Procedures
3.1. The Association shall have clear guidelines for authorizing expenditures and making payments. These guidelines include:
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Establishing an approval process for expenditures, ensuring that expenses are necessary, reasonable, and aligned with the Association's goals.
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Designating individuals or positions responsible for reviewing and approving expenditures, such as the Co-founders, Treasurer, or authorized committee members.
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Requiring proper documentation for all expenses, including invoices, receipts, or expense forms.
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Using approved payment methods, such as checks, bank transfers, or electronic payments, for financial transactions.
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Maintaining accurate records of payments made, including the payee, amount, date, and purpose of the payment.
Financial Controls and Record-Keeping
4.1. The Association shall establish and maintain effective financial controls and record-keeping practices to ensure accountability and transparency. These include:
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Implementing internal controls, such as segregation of duties and dual authorization for financial transactions, to minimize the risk of fraud or mismanagement.
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Conducting periodic reviews of financial transactions to detect and prevent irregularities.
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Retaining financial records, including bank statements, invoices, receipts, payroll records, and general ledger entries, for the required period as mandated by applicable laws and regulations.
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Storing financial records securely and ensuring their confidentiality.
Compliance and Reporting
5.1. The Association shall comply with all relevant financial regulations, tax obligations, reporting requirements, and accounting standards. This includes:
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Staying informed about changes in financial regulations that may impact the Association's financial operations.
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Preparing and submitting accurate financial reports, tax filings, and any other required financial documentation in a timely manner to the relevant authorities.
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Conducting periodic internal or external audits to ensure compliance and identify areas for improvement.
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Cooperating with external auditors or regulatory bodies during audits or inspections, providing them with necessary financial records and information.
Roles and Responsibilities
6.1. The Co-founders, as the de facto Head of Finance, shall oversee the financial operations of the Association. Their responsibilities include:
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Providing leadership and guidance in financial matters.
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Ensuring adherence to the Finance Policy and related guidelines.
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Facilitating the communication and coordination of financial activities between staff, committee members, and other stakeholders.
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Promoting a culture of financial responsibility, accountability, and transparency within the Association.
Note: The above Finance Guidelines should be implemented in conjunction with the Finance Policy and tailored to the specific needs and requirements of the Research Ethics Association.