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Financial Management Policy

Index

Article I

Purpose of Document

Article II

Overview

Article III

Fiscal Year

Article IV

Income

Article V

Expenses

Article VI

Roles and Responsibilities

Article VII

Contract Signing

Article VIII

Cheque Signing Authority

Article IX

Financial Statement

Article X

Management of Excess Funds on Behalf of Members

Article XI

Amendments
 

Article I - Purpose of Document

The purpose of this document is to outline the CIU’s policies on custodial management of membership funds under administration.  The Treasurer of the Executive Council is responsible for maintaining the content of this document.   

Article II - Overview

The CIU is a non-profit organization which exists for the benefit of its members.  The mandate of the CIU Executive is to support the education and professionalism of the underwriting occupation in Canada.

Article III - Fiscal Year

The CIU Fiscal year runs from April 1 to March 31.

Article IV - Income

The CIU’s annual operating income is derived from three principal sources:

  • Annual membership dues for each member
  • Registration fees from attendees at each of our meetings
  • Sponsorship donations from supporting companies
  • A small amount of interest income may be derived from investments held on behalf of the membership.

Article V - Expenses

The CIU currently has the following principal expenses each year:

  • Purchasing of On The Risk subscriptions on behalf of members
  • Staging of educational meetings.  At present there are three annual meetings:
    • Annual General Meeting (usually held in June)
    • Autumn Educational Seminar (usually held in September or October)
    • January Educational Seminar (usually held in late January)
  • Consulting fees through our supporting vendors for a variety of work done:
    • Membership drive services
    • Managing registration and various logistics for each of our educational meetings
    • Managing and upgrading our website
  • Other - includes annual accounting fees, gifts for the outgoing executive, expenses for executive members serving on the ALU board, etc.

Article VI - Roles and Responsibilities

The CIU Treasurer has the following responsibilities:

  • Overseeing the Financial Management Policy and suggesting changes where warranted
  • Managing day to day CIU finances including writing and receiving cheques, maintaining the general ledger in Quicken, etc.
  • Setting the annual CIU budget
  • Liaising with the accountant retained to provide an annual financial statement, including periodic audits as authorized by the Executive Council (at no less than 5 year intervals).

Article VII – Contract Signing Authority

The Constitution states that the Executive Council should authorize any Executive Council member to enter into any contract in the name and on behalf of the CIU. 

In support of our Financial Management Policy, the signature of two Executive Council members is required when entering into contracts over $2,500.  An Executive Council member can, with approval by affirmative vote of two-thirds of the Executive Council, sign contracts of $2,500 and under.      

Article VIII - Cheque Signing Authority

Any outgoing cheques from the CIU will require two authorized signatures.   The following three members of the CIU Executive Council will arrange to have signing authority on behalf of the CIU:

  • Treasurer
  • Chair
  • Vice-Chair
  • Past Chair

For ease of logistics, a substitute can be appointed on behalf of a Chair or Vice-chair who are in remote locations.

Article IX - Financial Statement

The Treasurer will work with the CIU’s accounting firm to prepare an annual financial statement for the membership.  This financial statement should be prepared in April, after the previous fiscal year has ended, with the intention of releasing to the CIU membership as part of the business session of the CIU Annual General Meeting.  

Upon a majority vote by the CIU Executive Council or at least once in every five years, a full Audited Financial Statement is to be completed.  Otherwise, an unaudited report (Review Engagement Report) can be completed by the CIU’s accounting firm.    

Article X - Management of Excess Funds on Behalf of Members

The CIU Executive policy is to retain a sufficient balance of funds to enable operation for a minimum of one year with no source of income.  The funds need to stay sufficiently liquid to enable any foreseeable bills to be paid promptly.  Excess amounts will be invested in short term GICs or such other safe investments that are approved by the Executive.

Article XI – Amendments

These policies may be amended at any Executive Council meeting by the affirmative vote of two-thirds of the entire Executive Council provided that any proposed amendment shall have been sent to each member of the Council in advance of the meeting. 

CIU Financial Management Policy – April 7 2010 update

 

 

 

 

 

Copyright Canadian Institute of Underwriters (CIU)