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Honeywell Sportsman Club

Financial Policy Manual

Revision D
Revised December 6th, 2011


1. INTRODUCTION

This Financial Policy Manual defines the financial policies and financial control procedures of the Honeywell Sportsman Club. Where there is any conflict with the Bylaws of HSC, the Bylaws shall be considered as controlling. Questions of interpretation shall be settled by the Treasurer and/or the President.


2. DEFINITIONS

Entry Fee
A fee paid by an Event participant to the Event Sponsor for the privilege of participating in an Event.
Event
A planned activity in which members of HSC and our Sister Clubs participate.
Event Allocation
The sum of money allocated from the treasury for the purpose of defraying expenses associated with conducting an Event.
Event Reconciliation
A balance sheet detailing income and expenses associated with conducting an Event.
Event Sponsor
The individual responsible for conducting and controlling an Event. An Event Sponsor is always a member of HSC or one of our Sister Clubs.
Executive Committee
The five elected officers of HSC consisting of the President, the Vice President, the Treasurer, the Executive Officer, and the Secretary.
Fiscal Year
The Fiscal Year of the Honeywell Sportsman Club runs from January 1st to December 31st.
Funded Event
An Event in which funds have been disbursed from the HSC treasury, or the treasury of any Sister Club, to the Event Sponsor, for the purpose of helping to defray expenses associated with conducting the Event.
HSC
Abbreviation for Honeywell Sportsman Club.
Jointly-Funded
Refers to Events which are funded by more than one of the Sister Clubs.
Series
A number of related individual Events.
Sister Club(s)
Clubs with which HSC has organized a common calendar of Events, and shares the responsibility for Event funding through a process of apportionment.
Sponsor(ing) Club
HSC is the official sponsoring club for all events listed on the HSC calendar. Though HSC's sister clubs assist with funding some events, HSC is the official sponsoring organization.
Unfunded Event
An Event in which funds have NOT been disbursed from the HSC treasury, or the treasury of any sister club, to the Event Sponsor. Expenses associated with Unfunded Events are paid for strictly by Event Entry Fees.


3. GENERAL

The Honeywell Sportsman Club (HSC) is a non-profit organization. Therefore it is a financial goal of the organization to expend all non-allocated funds by the end of the Fiscal Year. This does not preclude holding over funds from one Fiscal Year to the next, if a specific allocation requiring a multi-year accumulation of funds has been approved by the membership. Also not precluded, funds from membership dues for the next Fiscal Year received in the current Fiscal Year, and held in the treasury as the current Fiscal Year ends.

It is a financial policy that HSC will not at any time enter into any loan agreements for the purpose of borrowing money.

HSC receives funds from membership dues as specified in the Bylaws, from financial grants from various Honeywell Employees Clubs, and from other fundraising activities. HSC disburses these funds by organizing and conducting Events related to the outdoor sports, and by the purchase of equipment or other property for the benefit and enjoyment of its members


3. 1 Budgeting Process

Prior to each Fiscal Year, the Treasurer shall create a statement of expected income and expenses (a budget). The income section shall project income from membership dues, employees club grants, and any other expected sources of income. The expenses section shall detail planned expenditures on an Event by Event basis (Event Allocations), insurance expenses, and any forecasted expenditures.


3. 2 Event Budgeting

Allocations of funds from the club treasury are made to help defray the expenses of conducting Events. Disbursement of these funds shall be made when convenient, prior to the date of the Event. The disbursement is made to the identified Event Sponsor. It is the responsibility of the Event Sponsor to create an Event budget, conduct the Event in a fiscally responsible manner, and at the conclusion of the Event, return any unused moneys to the Treasurer with an Event Reconciliation.

Event Entry Fees are determined by the Event Sponsor for all participants.

If the Event Sponsor incurs Event-related expenses greater than the sum of the Event Allocation plus Entry Fees, the Event Sponsor is entitled to an additional allocation of funds to an amount not to exceed 35% of the original Event Allocation.


3. 3 Insurance Costs

Club insurance costs shall be paid from the general fund.


3. 4 Discretionary Expenditures

The Executive Committee has authority to spend in any one quarter up to $50.00 or 10% of HSC funds, whichever is the greater amount, on any HSC item or Event without approval of the general membership. Allocations of larger sums can be made at any general meeting by a majority vote of the members present, given that attendance meets the minimum quorum requirement.

Discretionary expenditures are not intended to offset Event-related expenses. If a purchase can be considered expended at the conclusion of its use in one event, the purchase shall not be made out of general treasury funds. The Event Sponsor shall pay for such equipment (which should be considered as event-related supplies) out of the Event budget.

An equipment purchase may primarily be used in only one type of Event, but if the equipment is durable (the same equipment may be used to run the Event a multiple number of times, with minimum maintenance), then the equipment purchase may be made with general treasury funds.


4. EVENT FINANCING

Each Event is an independent financial entity. Any Event may require a number of individuals from several of the Sister Clubs to conduct the Event. In all cases however, only one individual shall be assigned the financial responsibility for an Event.

Funds associated with one Event are not to be co-mingled with funds associated with another, unrelated Event. The only exception to this general rule, is when an event is part of a Series. In that case, the Series may be considered the independent financial entity.


4. 1 Event Apportionment

When the Event calendar is set for a Fiscal Year, the Events are apportioned among HSC and its Sister Clubs. This apportioning of Events to clubs should be done with thought to the historical proportional participation of the members of the clubs in the common Event calendar. For example, if HSC members comprise 60% of all Event participants over the course of a year, then HSC should be responsible for approximately 60% of the Event calendar funding.


4. 2 Series Events

When a number of Events is designated as a Series, overall financial responsibility may be vested in one Event Sponsor. The Series may be considered as one financial entity. In this case, only one Event Allocation shall be made for the entire Series. Funds may be carried forward from one Event to the next within the Series, and only one Event Reconciliation is made after the conclusion of the final Event in the Series by the designated Event Sponsor.

A Series may also be funded as separate events, in which case, multiple Event Sponsors may be used.


4. 3 Jointly-Funded Events

Events or Series may be Jointly-Funded. In a Jointly-Funded Event, funds are disbursed to the Event Sponsor by multiple Sister Clubs. There is no requirement that each of the Sister Clubs contribute a like amount. At the conclusion of the Jointly-Funded Event, reconciliation per sections 3.2 and 4.5 is made with each club in proportion to each club's funding percentage.


4. 4 Sample Event Budget

Shown below is a sample budget for a shooting Event. It is in the form of a balance sheet with income shown on the left side and expenses shown on the right.

(Click on the spreadsheet to download an Excel copy)


SampleBudgetC.xls

When planning an Event Budget, the Event Sponsor should strive for a budget underrun, so that he does not have to go back and ask for an additional allocation. The trick is in accurately estimating participation. It is understood that no one can perfectly predict the actual participation level at an Event, and it is for that reason that provision is made for an additional allocation in the event of a budget over-run (see Section 3.2). The best way to build conservatism into an Event budget is to lean toward the low side when estimating participation. If more participants show up than planned for, that tends to boost the income-side of the balance sheet.


4. 5 Event Reconciliation

At the conclusion of the event, the balance sheet is re-worked to reflect actual, rather than estimated quantities, to arrive at the Event Reconciliation. The actual number of participants and the actual quantities of items expended during the event are plugged into the balance sheet.

Any prizes or supplies which the Event Sponsor purchased for the event, but were not distributed or used during the conduct of the Event should not be charged as expenses of the Event. Such leftover prizes or supplies revert to the ownership of the Event Sponsor. Such prizes or supplies may be used by the Event Sponsor for the conduct of another shoot in the future or sold to another Event Sponsor.

Because prizes or supplies used during the conduct of an Event may have been leftovers purchased prior to another Event months before, Event sponsors are not required to turn in purchase receipts. However, whenever possible, Event Sponsors are strongly encouraged to turn in receipts.

Also because prizes or supplies used during the conduct of an Event have been considered part of the Event Sponsor's personal property up to the moment of their use in an Event, in the absence of receipts, the Event Sponsor must use fair market value when valuing those items on the Event Reconciliation balance sheet.

For all Events, whether Funded, Unfunded, or Jointly-Funded, the Event Reconciliation balance sheet and any receipts shall be submitted to the Sponsoring Clubs' Treasurer within 21 days after the conclusion of the Event.


4. 6 Event Cancellation

In the event of a cancellation, the entire Event Allocation shall be returned to the Sponsoring Club. If the Event must be canceled on the day of the Event, any Entry Fees collected must be returned to the participants. However, the Event Sponsor may collect or retain a portion of the Entry Fee from participants if supplies were used prior to the announcement of Event cancellation.

Any prizes and supplies purchased but not used for the Event remain the property of the Event Sponsor. The Event Sponsor may dispose of the leftover prizes and supplies purchased as he wishes.


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