Financial Policy

Eat Local Grey Bruce Interim Financial Protocol

Operating Budget

It is the policy of Eat Local Grey Bruce to prepare a monthly operating budget outlining expenditure priorities in relation to the estimated revenues available from all sources for the upcoming month.

Roles & Responsibilities

The General Manager in conjunction with the Warehouse Manager and Administrative staff will draft an operating budget to be presented to the board. When possible this budget should be shared with the board 1 week prior to the monthly directors meeting. This is so that directors have time for questions and clarity before approving the budget at the monthly meeting.

Monitoring

The General Manager and Warehouse Manager will be responsible for ongoing monitoring and reporting to the Board.

Banking

Eat Local Grey Bruce bank account(s) can only be used for legitimate and allowable revenue and expense activities of the organization. Eat Local Grey Bruce may elect to place portions of its banking services requirements with more than one of the appropriate banking institutions if it is determined to be in the best interest of the organization. The Treasurer will review all accounts, services and fees annually.

Authority to Provide Instructions to the Bank

Proposals for new or changes to existing bank accounts must be approved by the Board of Directors. All accounts established will be with a Canadian Chartered Bank in accounts insured by the CDIC (Canadian Deposit Insurance Corporation). The Treasurer or General Manager/Designate will have the responsibility for providing instructions to the bank.

Authority to Obtain Corporate Credit / Debit Cards

Board approval is required for the issue of all credit and debit cards in the name of Eat Local Grey Bruce.

Signatures

The Directors and Officers of the Board, the General Manager and designated Warehouse Managers may be authorized by the Board of Directors as signatories on all accounts. Two signatures are required on all cheques, transfers and withdrawals. If and when two Employees are authorized signatories for the organization, they may not sign cheques with their own name listed as payee for total amounts exceeding $300.00 per month. All payments over $1,000.00 require at least one authorized board member to sign. All expenses except specific exceptions allowed by the General Manager or Treasurer shall be paid by cheque.

Deposits

All money received by or on behalf of Eat Local Grey Bruce shall be deposited within 10 business days of being received in the name of the organization in an approved bank account only. All cheques, cash, and equivalents will be stored in a fire-proof safe, which is kept in a locked filing cabinet managed by Admin staff until they are deposited.

Purchasing Policy

Goals and Objectives
  • To ensure service and product delivery, quality, efficiency and effectiveness
  • To encourage competition among suppliers
  • To ensure fairness among bidders
  • To avoid waste and duplication with respect to acquisition of goods and services
  • To ensure adherence to financial policies, administrative practices and budgets by Employees and Board Members
  • To follow good business practices and protect the financial best interest of Eat Local Grey Bruce while satisfying the public need for openness, efficiency, accountability and transparency

Restrictions

No contract for goods, services, or construction may be divided into two or more parts to avoid application of this policy. An Employee or Board Member who is involved in the award of a contract must declare any direct or indirect pecuniary interest including that where the Employee/Board Member’s spouse, partner, or relative is a shareholder in, or a director, senior officer, or Employee of a corporation, association, or partnership that has a pecuniary interest in the Contract.

Purchases Not Exceeding $500

Purchases not exceeding $500.00 shall be made using an approved invoice, purchase order, petty cash, or personal purchasing card.

Purchases Between $500 and $5,000

A minimum of three comparative quotes are required for purchases over $500.00. Online price listings from reputable North American suppliers are an acceptable form of quote. The General Manager (or the Treasurer in his absence) approves the criteria for the winning bid. In the event that there are not multiple suppliers of the item to be purchased, the General Manager (or the Treasurer in his absence) is authorized to approve purchases with fewer than 3 quotes. Documented rational must be presented to the board. i.e. not 3 suppliers in our area.

Contracts and operating/ capital purchases over $5,000

Despite any other provisions of this policy, the Board must approve any Contract or purchase where the Total Acquisition Cost is greater than $5,000.00.

Purchases Without Budgetary Approval including but not limited to emergency situations.

Where a requirement exists to purchase goods or services and funds are not contained within the approved operating budget or within an approved grant budget, the General Manager shall approve the purchase at their discretion depending on the availability of funding. All expenses outside of the approved budget for over $1,000.00 must have a board member as a signatory.

Petty Cash

  • In order to decrease the administrative costs and to expedite the process of handling minor purchases, a Petty Cash fund may be established or altered at the General Managers discretion. These funds should be used for expenditures where it is expedient and efficient to pay cash and where the cost is less than $500.00. The following are unacceptable uses for Petty Cash funds:
  • Accepting I.O.U. as a reimbursable expense.
  • Accepting personal cheques as a reimbursable expense.
  • Payment for wages, salaries, honorariums, or other similar payments that must be paid through Payroll or Accounts Payable.
  • Any reimbursement for an individual amount > $500.

Petty Cash expenses and reimbursements must be completed on the Petty Cash Report form detailing the nature of the expense, the total amount, and HST details, if applicable. All original receipts/signed vouchers are to be attached along with a completed Invoice Coding Tag for each. Statements from suppliers showing account balances and packing slips are not acceptable. The Petty Cash fund should be replenished when the balance reaches approximately $400.00 or quarterly, whichever occurs first. If it is determined that a Petty Cash fund is no longer required, all outstanding receipts and unused cash should be submitted to the Executive Director or designate, with instructions to close the Petty Cash “account”.

Co-op Member Farmer Payments

Payments by staff to co-op member farmers for goods pre-sold in the on-line store are exempt from these restrictions and do not have to be pre-approved within a budget.