Financial Management Policy
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:
Article V - Expenses
The CIU currently has the following principal expenses each year:
Article VI - Roles and Responsibilities
The CIU Treasurer has the following responsibilities:
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:
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)