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CASH

MANAGEMENT
POLICY

PHILADELPHIA IIA
CHAPTER

Page 1

TABLE OF CONTENTS
SECTION

PAGE

I. PURPOSE

II. BACKGROUND

III. CASH MANAGEMENT POLICIES

2-4

IV. AREAS OF REPSONSIBILITY

Effective: 11/20/2012

Revised: N/A

Approved: Board Approved

CASH
MANAGEMENT
POLICY
I.

PHILADELPHIA IIA
CHAPTER

Page 2

PURPOSE
The purpose of the Cash Management Policy is to provide written guidelines
regarding the management of the Chapters assets and deposit accounts. The
policy is also established to ensure appropriate asset levels are maintained and
assets remain accessible and retain liquidity to be used for Chapter expenses
and initiatives.

II.

BACKGROUND
The Chapters sole asset consists of cash. Effective cash management is
needed to maintain an adequate asset levels to support the Chapter needs and
Board approved initiatives.

III.

For information regarding the approval of Chapter initiatives, see the


General Accounting & Finance Policy.

CASH MANAGEMENT POLICIES


Cash Position Limits
1) The Finance Committee will recommend minimum and maximum limits
of assets or cash position to be maintained by the Chapter on an annual
basis.
2) The Board will review and approve the recommendation of minimum and
maximum dollar limits for Chapter assets and the review and approval will
be documented in the Board minutes.
3) Chapter assets should not exceed the maximum level set by the Board.
A. In the event assets exceed the maximum threshold and not deemed to
be temporary, the President will convene a committee of the Board
to research, identify, and recommend to the full Board opportunities
to utilize Chapter assets commensurate with Chapter goals that will
result in a reduction of assets to the appropriate level.
B. In the event assets fall below the minimum threshold and not deemed
to be temporary, the President will convene a Committee of the
Board to research, identify, and recommend to the full Board
opportunities to increase Chapter revenue to the appropriate level.
Asset Types
1) Chapter assets will remain liquid and are authorized to be placed in the
following types of deposit accounts:
a. Checking accounts
b. Savings accounts
c. Money market accounts

Effective: 11/20/2012

Revised: N/A

Approved: Board Approved

CASH
MANAGEMENT
POLICY

PHILADELPHIA IIA
CHAPTER

Page 3

d. Certificates of Deposit
e. Paypal
2) Chapter assets may not be placed in any account or product not expressly
stated above.
Asset Uses
1) Chapter assets may be used to:
a. Purchase property and equipment for Chapter use (i.e.
technology equipment and software, cameras, banners, signs,
etc.)
b. Support Board approved initiatives and expenses
c. Support Committee budgets within authorized limits
d. Support Chapter events
e. Support the administrative needs of the Chapter
2) Chapter assets may not be used to:
a. Purchase investment securities and investment related
vehicles such as derivatives
b. Purchase real property (real estate)
c. Purchase automobiles
d. To collateralize a debt obligation
e. Purchase property for personal use
f. Loan Chapter funds for any reason
Deposit Account Balances
1) The Treasurer will ensure balances maintained in the Chapters deposit
accounts are appropriate. Consideration shall be given to forecasts of
Chapter expenses, interest rates of deposit accounts, and the incurrence of
banking fees related to maintaining balance levels.
2) The transfer of assets between deposit accounts to will be performed at the
discretion of the Treasurer.
Deposit Accounts Access and Authorizations
1) The Treasurer and one Vice President will be the only authorized signers on the
Chapters accounts.
2) The Treasurer and Assistant Treasurer will be authorized to make deposits on
behalf of the Chapter.
3) The Treasurer will be the only individuals authorized to initiate withdrawals or
transfers to and from the Chapters accounts.
4) One Vice President will be only authorized to conduct transactions in the absence
or unavailability of the Treasurer and Assistant Treasurer.
5) The Finance Committee will approve the addition or removal of an authorized
signer and this will be documented in Finance Committee minutes.
6) The Finance Committee will approve the opening or closing of a deposit account
and this will be documented in the Finance Committee minutes.
7) The President, the Board, and other Chapter Officers will not be authorized to
conduct financial transactions within the Chapters deposit accounts.

Effective: 11/20/2012

Revised: N/A

Approved: Board Approved

CASH
MANAGEMENT
POLICY

PHILADELPHIA IIA
CHAPTER

Page 4

Receipt of Deposits
1) Checks made out to the Chapter will be required to be sent to the
Treasurers P.O. box.
2) The Treasurer will access the P.O. box and deposit any checks received in
a timely manner.
3) The Assistant Treasurer will reconcile the checks received against
registration records provided by the events management vendor.
IV.

AREAS OF RESPONSIBILITY
1) The Treasurer and Assistant Treasurer are responsible for the overall
implementation of this policy, processes, and prescribed controls.
2) On an annual basis, the Finance Committee will review this policy, revise
(if necessary), and submit any material changes in the policy to the Board
for review and approval.

Effective: 11/20/2012

Revised: N/A

Approved: Board Approved