Policies
For Committees
POLICIES FOR COMMITTEES
of the
Helena Area Chamber of Commerce
The activity of the Helena Area Chamber of Commerce’s Committees is generated by interest from the membership. The board of directors adopts a program of work annually. Implementation of the Program of Work is the goal of the committees.
PROGRAM OF WORK/PLAN OF ACTION
All committees are responsible for producing a plan for implementation and any costs associated with their programs. All committee projects should be planned on a zero-based budget. If a project is a fund generator for the committee, in order to support the committee’s other planned activities; the board of directors should approve the method used. The board of directors must approve any new project outside the original program of work.
The executive director will review proposed projects/methods of funding/plans prior to board approval in order to make suggestions/recommendations. The staff liaison (projects manager) will provide direction to the committee chairman as appropriate for this process.
APPROVAL PROCESS: Presentation to board at one meeting, possible action recommended. Final approval is at second meeting. Process may be accelerated by Executive Committee/Finance Committee recommendation. Committees should prepare proposals at least 6 months prior to projects and events to insure proper attention is given to the proposal in the entire chamber planning process.
STATEMENT OF POLICY
The Chamber Board of Directors is responsible for all the resources, finances and programs of the entire chamber. A financial loss on any one program can endanger the chamber’s program of work. Conversely, a financially strong chamber can be a major organizational strength for our community.
The enthusiasm of volunteers and committee members, coupled with fiscal safeguards, is a formula for success.
By approving of activities of committees, projects, events, the chamber becomes responsible and liable for any shortfalls that may occur due to unforeseen circumstances, weather, poor planning, etc. As the liability is assumed, it is also policy
that the chamber should be financially strengthened from any excess over expenses from these activities. The executive director has management authority over the resources, finances, and programs of the chamber.
To build toward covering program expenses (18-month cycle), a 10% contingency fund will be established for the committee and committed to the chamber reserve.
(Note: management studies of non-profit entities recommend a general contingency fund equal to 25-50% of the overall annual operating
budget)
As planning is done, committees for new projects may request commitment of these funds; special events support or provided for operations/programs of the chamber as approved by the board of directors.
In addition, a20% contingency (fee) for management by the chamber (based upon total income) will be assigned as deemed appropriate by the finance committee and approved by the board of directors.
1. All direct expenses will be assigned to the activity. The board may approve special methods of covering additional staff responsibilities through the planning/budget process for the project, event, etc., upon recommendation of the executive director and finance committee.
This 20% contingency (fee) will promote a healthier chamber, which will allow the organization to approach its goals with confidence.
For events or committees with possibly large revenue generation (and thus larger risk possibility), the Board may occasionally appoint either a sitting board member or a new board member to represent that committee. If this position was tied totally to the event/committee, it would be temporary and only for the duration of the event. This is totally at the discretion of the Board of Directors.
The Board of Directors, upon recommendation of the finance committee, may assign a minimum profitability level to special projects, events, as deemed as appropriate.
1. It is expected that expenses incurred prior to an event will be planned for in the budget and covered prior to the event, in order that there be no reliance in income the day of the event.
2. Should a shortfall occur, an annual review will assist in making recommendations to cover any shortfall in future budgets or in
continuing the activity.
Upon approval of an event, project plans, the board of directors is assuming the risk should the project, event, not come through as planned. They are normally committing staff time plus general fund resources to cover up-front expenses and any shortfall should it occur.
If an event, project will generate a profit and is proposed as doing so, the board of directors will make the decision as to where the profits will be used with the best interests of the chamber in mind.
Projects, events, designed to generate dollars for a committee and their program should be approved by the board through the normal planning/budget process in relation to the overall mission of the chamber and appropriateness. Opportunities for unplanned, new, unusual projects, events, activities may need to be approved by the board on a case-by-case basis as recommended by the executive director/finance committee.
Some committees will not have the ability to cover costs on all activities and will then be assumed by the general fund and/or from excess over expenses generated through other activities, events, and projects.
Committees, events, projects, may request special set-up funds, up-front funds, seed money for their plans, upon recommendation to the board from the executive director/finance committee.
BILLING/PAYMENT PROCEDURE
All charges to the Chamber for committees, special projects, events, office purchases must be signed by the authorized chamber rep (staff preferred, but chairman may need this privilege and are authorized with stall knowledge)
The designated account, project, event, must be included on the invoice. (Actual account number may be assigned by bookkeeper)
All charge slips must be reviewed by the executive director and initialed prior to being routed to the bookkeeper for payment. Any questions will be asked of staff liaison (programs manager) it there is a doubt as to what project, event, etc.
Any advance cash requests (such as cash box start-up, etc.) must be approved and signed for by the executive director.
All billing requests should be submitted to the bookkeeper with proper addresses, amounts, etc. in a prompt manner.
All payables should be presented for payment in the 1st and 3rd week of the month. Special requests can be made upon arrangements with the bookkeeper through staff.
Direct requests to the bookkeeper from committees, chairman, etc. are discouraged and cause disorganization and cost. Committee chairman and others are requested to route requests through the programs manager with knowledge by the executive director.
Reporting/updating will be done on a scheduled basis for the committees, events, etc. through the staff liaison (programs manager) and will be included as monthly financial statements for the chamber produced. Special requests can be accommodated but with pre-planning, this can be avoided. Costs are associated with special requests and there are limitations as to value of request vs. regular procedure being followed.
ACCOUNTING/REPORTING
Every committee, event, project is assigned a general ledger account for income and expense. General committee expenses as well as projects are included.
Costs of general committee activities are assigned by staff liaison and executive director approved. Project account direct expenses will be reviewed by staff liaison (programs manager) with chairperson prior to executive director approval for payment to assure proper documentation and accounting.
Budget planning for committees, projects, events should be proposed through the committee chairperson and staff liaison (programs manager) with input as necessary from the executive director especially for new events, projects, activities.
The executive director reviews all budget plans in order to coordinate with entire chamber program and planning. Chamber budget responsibility as a whole, lies with the executive director and accountability for final results rely upon the knowledge and confidence of the executive director of the proper planning by committee, events, projects.
Special circumstances (future obligations, amount of dollars, relation to event) may dictate that a separate account (savings/reserve) be requested for events, projects. This will be determined by the board of directors upon recommendation of the finance committee on a case-by-case basis based on the factors listed above.
Transfers from this special, separate fund would be made into the general ledger/income/expense for the project and event, and payments made through the existing chamber procedure.
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Revised 01/05