- The District’s fiscal year is July 1 through June 30.
- The basis for District Accounting is modified cash receipts and disbursements. The timing of certain receipts and disbursements may be adjusted to provide more-accurate matching of revenue and expenses with programs that span between two fiscal years.
The Pacific Central District has an objective of maintaining its unrestricted reserves equal to at least 25% of the expense budget. This gives the District coverage for approximately three months expenses at a time when income is low.
The adequacy of the reserves shall be evaluated at the end of the calendar year in preparation for the coming year’s budget or at other times when the District’s financial situation changes significantly.
When the reserves exceed the objective, they are available for use in the programs of the District with the following limitations:
- Funds drawn from reserves shall be used primarily to fund one-time or limited obligation expenses.
- If funds from reserves are needed to support continuing programs, that application of funds must be approved by the District Board and noted in the budget that is presented to District Assembly Delegates.
Principles for management of the District’s financial assets
- Ten percent (10%) of the District’s expense budget for the current year shall be held in cash or cash equivalents (checking account or money market fund). This amount will be listed as part of the annual budget. If any month-end balance is less than this amount transfers from savings/investments will be made to adjust the balance by the end of the following month.
- Any reserve funds which are expected to be spent during the coming fiscal year shall be held as cash or cash equivalents.
- Funds held for other organizations shall be held in money market funds or certificates of deposit (CDs) with maturity commensurate with the anticipated use of the funds.
- If the expected date of use of funds is unknown, and, if it is possible that the funds may be required in the current fiscal year, then funds should be held in money market funds.
- Other reserve funds may be invested in securities, mutual funds, bonds or similar financial instruments.
Income from, and change in market value of, District financial assets
All income from financial assets managed by the District accrues to the District as unrestricted income. This includes interest, dividends and distributions from invested funds managed by the UUA. None of this income is passed to organizations for which the District is holding funds, unless otherwise authorized by the PCD Finance Committee.
Changes in market value of investments shall be treated as increases or decreases of the District’s financial assets. These assets will be marked to market on the District’s Balance Sheet. These increases or decreases will not affect the balance of the assets held by the District for other organizations.
Management of the District’s financial assets
Regular management of the financial assets is the responsibility of the District Administrator.
The District Finance Committee shall review the investments of the District at least annually and shall recommend an investment strategy to the District Board after that review.
Budgeting and Banking
It is the Goal of the Pacific Central District to have a balanced budget each year.
- The Finance Committee will issue program and budget requests to all District committees in the third (3rd) quarter of the calendar year along with a due date. Committee requests will be due to the Finance Committee by December 31, unless other arrangements have been made.
- The budget proposal submitted to the Board by the Finance Committee will not include funds for committee activities if none have been requested. That is, the Finance Committee will not propose funds for an activity where no responsible group is apparent.
- If the Finance Committee makes a significant change in the request made by a Committee, the Treasurer will notify the Chair.
- Any activity which will result in a committee exceeding its budget for the current fiscal year must have prior approval from the District Treasurer.
- Committees receiving support from the District budget are not to maintain separate bank accounts.
- No budget or cash balances may be carried over from one year to the next except for specific items as authorized by the Board.
- Cash advances to committee members must be requested via an expense voucher. All advances must be accounted for in the committee’s subsequent reporting.
Conferences and Workshops
- Conferences and Workshops are expected to be self-funded. Conference budget planning should be conservative: under-estimate attendance and revenue, over-estimate expenses. Conference income must cover expenses, within the context of the total committee budget for the year. Where a danger of significant loss is likely, planners should anticipate a decision date for cancellation if registrations are too low.
- Committees are given wide latitude in establishing their own fee structure, including policies on fee reductions. It is anticipated that “free registration” policies will apply to the minimum number required to staff the conference.
- If registration fees are non-refundable, registrants must be told prior to the time of registration.
- Cash advances for conference costs, including deposits for conference sites, may be obtained from the District office by submitting a completed expense voucher. Cash advances may be used however the meeting committee requires. Receipts must accompany the conference report to account for all advanced funds. If the meeting committee uses advance money as petty cash, full accounting with receipts is required.
- All requests for advances, bill payment, honoraria, etc. must be authorized and signed by the committee chair. If the committee chair’s signature cannot be secured on the voucher, the chair may fax or email their authorization to the district office.
- Committees should advertise that checks are to be made payable to PCDUUA. No third party checks will be accepted. Registrants should note on the check’s memo line the name of the conference for which they are registering.
- Cash should not be sent through the mail.
- A final financial statement for each conference or workshop must be completed and mailed to the District office within two (2) months after the conference. The balance of unexpected funds must be sent in with the Conference/Workshop Financial Report. Any unspent conference proceeds are added to the committee budget for the balance of the current fiscal year.