ICC Financial Procedures

ICC Financial Procedures

ICC Financial Proceduresfinal draft

September 2011

1.0 Budgetary Controls

The ICC operates controls to ensure adequate scrutiny and transparency of all expenditure, appropriate to the size and complexity of the organisation. These are set out below.

1.1 Budget setting

The annual ICC budget is proposed by the ICC Chair and approved by the ICC Bureau, endorsed by the ICC general meeting. The ICC finance sub-committee provides comment on the proposed budget to assist decision making.

1.2 Budget management

The ICC Chair is responsible for managing expenditure against the approved budget. Controlsand scrutiny on expenditure are as follows:

  1. ICC Chair and ICC finance sub-committee Chair as signatories on the ICC bank account
  2. ICC Chair authorisation of all expenditure claims against the approved budget. Unless specifically exempted in accordance with these procedures, all expenditure claims must be authorised prior to reimbursement
  3. before reimbursement can be made, all claims must be supported by itemised receipts or invoices, and an explanation as to why they have been incurred
  4. the ICC finance sub-committee has access to all financial documentation of the ICC upon request
  5. a quarterly statement of accounts is presented to ICC finance sub-committee for review and comment in a report provided to the ICC Bureau
  6. anannual independent audit of ICC accounts is presented for approval to the ICC Bureau.

1.3 Changes to approved budget

The ICC Chair must make a request to the ICC Bureau, and take advice from the ICC finance sub-committee, for approval of any expenditure on items not approved in the annual budget.

1.4 Financial management

  1. Income and expenditure is monitored by the individual or individuals in the institution hosting the ICC Chair who are nominated by the ICC Chair as the ICC Secretariat, under the control of the ICC Chair.
  1. Quarterly financial reports and accruals accounts are prepared by the ICC financial services provider, produced after the ICC Secretariat has submitted appropriate data. These reports are provided to the ICC finance sub-committee by the ICC Secretariat.
  1. A quarterly report on membership fees and waiver requests is prepared by the ICC Chair Secretariat and submitted to the ICC finance sub-committee for comment in its report to the ICC Bureau. Regional information on membership fees paid and waiver requests is provided to each regional chair and regional coordinator.
  1. The financial services provider keeps all financial records and prepares the ICC annual accounts for audit.

2.0 Payments

Before any reimbursement for expenditure claims can be made, itemised receipts must be provided for expenses incurred by anyone authorised to undertake activities on behalf of the ICC, together with an explanation of the reason they have been incurred. The ICC Chair and ICC Geneva Representative should also provide the relevant ICC budget code in relation to each expense claim.

2.1 Travel and subsistence

  1. Subsistence, travel and miscellaneous expenses are paid for actual and reasonable expenses to anyone undertaking activities on behalf of the ICC authorised by the ICC Chair, where they are not covered by a third party.
  1. The ICC Chair must give prior approval for all travel arrangements for the ICC Geneva Representative outside of Geneva. The ICC Geneva Representative will receive a per diem at OHCHR rates for all approved overseas travel. For travel in mainland Europe,the expenses for the ICC Geneva Representative are covered by the use of an ICC approved credit card (see below) and by claiming actual and reasonable expenses for any receipted expenditure incurred.
  1. Reimbursement is made on a monthly basis, and all receipts for expenditure must be submitted to the ICC Secretariat by the end of the first week of the month following the time the expenses were incurred. Expenditure claims will be authorised by the ICC Chair prior to reimbursement.

2.2 Purchase of Goods and Services

  1. The ICC Chair may delegate to the ICC Geneva Representative authority to purchase certain goods and services without prior approval. These are:
  2. office supplies such as paper, printer ink and other stationary items up to 250CHF per item
  3. payment of interpreters for side events and other meetings up to 1000CHF.
  1. ICC Geneva Representative is provided with a Blackberry mobile phone, for use exclusively for ICC business. The ICC Chair authorises payment of the phone bill incurred. Only expenditure incurred in the course of ICC businesswill be reimbursed.
  1. Beyond the above, no purchases of goods or services or commitment to spend on goods or services can take place without the express permission of the ICC Chair, and all other orders for the purchase of goods or services must be approved in advance by the ICC Chair. Any exception to this must be outlined in the form of a written authorisation from the ICC Chair.
  1. The ICC Chair must authorise all procurement of services by a third party. Any procurement over USD $7,000 should obtain three quotes and the selected provider should be approved by the ICC finance sub-committee and reported to the ICC Bureau. There is a responsibility to ensure value for money is obtained in the procurement of goods and services. The cheapest quote is not necessarily the best value in terms of product or service offered; other factors such as quality, reliability, past performance and reputation should also be considered.
  1. Reimbursement is made on a monthly basis, and all receipts for expenditure must be submitted to the ICC Secretariat by the end of the first week of the month following the time when the expense was incurred. Expenditure claims must be authorised by the ICC Chair prior to reimbursement.

2.3 Credit Card

  1. The ICC operates one credit card for use by the ICC Geneva Representative, exclusively for ICC purposes.
  2. The credit limit for the card is determined by the ICC Chair, in consultation with the ICC finance sub-committee.
  1. The ICC Geneva Representative may only use the credit card for payments within the authorisations required by these financial procedures.
  1. On receipt of the monthly credit card statement, the ICC Geneva Representative is required to provide a copy to the ICC Chair, with an ICC budget code against each item. This should be supported by scanned copies of receipts, and an explanation of the reason for the expenditure if necessary. The statement is approved by the ICC Chair, and is paid through the bank by automatic payment. The ICC Geneva Representative should send the original receipt to the ICC financial services provider.

3. Banking

  1. The ICC operates one current account in three currencies (CHF, USD and EU). The ICC Chair is the account holder, and the Chair of the ICC finance sub-committee has full access to the account.
  1. The UBS bank on-line banking system is used to process all payments.
  1. The ICC Geneva Representative monthly salary and disbursements are paid by automatic payment from the bank.
  1. Invoices for payment are authorised by the ICC Chair. Payments should where possible only be made on the basis of original invoices, as opposed to copy invoices, quotations and suppliers’ statements. All invoices will be cancelled following payment by means of a ‘date paid’ stamp. The Geneva Representative provides scans of all receipts and invoices to the ICC Chair and send the originals to the ICC financial services provider for the file.
  1. Bank transfers must first be authorised by the ICC Chair through an electronic UBS e-banking access card and card reader, operated by the ICC Chair or the Chair of the ICC finance sub-committee as a secondary authorisation. The ICC Secretariat administratesthese payments.
  1. The ICC does not hold a cheque book.

4. Membership fees

  1. An invoice for annual membership fees is issued to all ‘A’ status institutions in December each year, along with the Guidelines for Fee Waiver Requests. Members are asked to pay their membership fee by the end of the following month (January) or to request a waiver in writing with supporting documentation.
  1. Waiver requests are passed to the ICC finance sub-committee to consider and make a recommendation to the next ICC Bureau meeting in accordance with the Guidelines for Fee Waiver Requests.
  1. Reminders for payment of membership fees or waiver requests are issued mid- year.
  1. An updated record of membership fees is produced quarterly by the ICC Secretariat, and submitted to the ICC finance sub-committee and the ICC financial services provider. Regional records are also circulated to Regional Chairs and Coordinators with a request that they contact NHRIs who have not responded to request payment or submission of a request for a waiver, in order to encourage action.

5. OHCHR grant

The ICC applies each year for a grant from the OHCHR grants committee. This application is prepared by the ICC Secretariat with the support of OHCHR NIRMS, and approval by the ICC Chair. The OHCHR grants committee requires a mid-term report on activities for which the grant has been provided, and an end of year report with an independent audit statement. These reports are prepared by the ICC Secretariat, with approval by the ICC Chair. They are sent to the ICC finance sub-committee for information.

6. Budget

The ICC financial year runs from January to December each year. The ICC Secretariat develops a draft budget on behalf of the ICC Chair and presents it to the ICC finance sub-committee for comment. The ICC finance sub-committee presents the final proposed budget for the forthcoming financial year to the October ICC Bureau meeting for approval. The budget is presented to the ICC General Meeting in March each year for endorsement.

7. Financial accounting, reports and audit

  1. All bank statements are checked on a quarterly basis by the ICC Secretariat against expense and income receipts and invoices provided. The ICC Secretariat assigns a budget code to each item in the bank statement and scans this to the ICC financial services provider. The ICC financial services provider then produces a financial statement and a set of accruals accounts against the ICC budget from this information.
  1. All original receipts and invoices are sent to the ICC financial services provider by the ICC Secretariat or the ICC Geneva Representative.
  1. Mr Gabriel Revaz has been engaged to provide financial services to the ICC. MrRevaz produces a quarterly statement and accruals accounts, and prepares the file ready for the annual audit within two months of the end of the financial year. The contract for services is attached at Appendix Two.
  1. GestalovSociete has been engaged by the ICC to conduct an annual independent audit, and to provide audit information to the OHCHR grants committee regarding expenditure against the OHCHR grant. The contract for audit services is attached at Appendix Three.
  1. Appointments for the financial services provider and the independent auditor are made in accordance with the procedures for procurement in 2.2v above. Given these are ongoing services, even if the cost each year is for less than USD$7,000, three quotes should be obtained, and a recommendation made by the ICC Chair,approved by the ICC finance sub-committee, to the ICC Bureau. The ICC Bureau approves the appointment of the provider.
  1. Quarterly financial statements and the annual audit are all considered by the ICC finance sub-committee, who prepare a report on finances and membership fees for each ICC Bureau meetings. The report of the committee, and any decisions by the ICC Bureau concerning the report, are presented to the ICC General meeting each year.
  1. The full terms of reference for the ICC finance sub-committee are attached at Appendix One.

Appendix one

Terms of reference for the ICC finance sub-committee

ICC Finance sub-Committee

TERMS OF REFERENCE

  1. Composition

The ICC Finance sub-Committee (hereinafter “the Committee”) shall comprise 4 members from A Status Institutions or Regional Secretariats; being one member to be appointed by each of the four ICC regional groups.

Members of the Committee shall serve a term of 3 years, renewable once.

The Members of the Committee shall select from amongst their membership a Chair, to be appointed on a rotational basis by region. The Chair shall serve a term of 2 years from date of appointment.

The ICC Treasurer, appointed pursuant to Article 46 of the ICC Statute shall be an ex-officio member of the Committee.

  1. Decision Making

Decision making of the Committee shall be by consensus wherever possible. Where a decision cannot be reached by reason of a 50/50 vote split, the Chair shall report to the ICC Bureau that no decision could be reached on the matter.

3. Duties

To oversee and manage the ICC finances in accordance with such regulations as may be set, in addition to best practice in the area;

To consider and propose for approval budgets;

To consider requests from the ICC Chair for expenditure and to receive reports from the ICC Chair in relation to expenditure;

To review controls and procedures in place and to recommend to the ICC Chair and ICC Bureau any changes and improvements that can be made thereon, as appropriate;

To report to the ICC Chair and ICC Bureau on income and expenditure at least once a year and at such additional intervals as may be laid down from time to time;

To report to the ICC chair and ICC Bureau on ICC finances, including, financial implications of requests from the ICC membership, and alternative funding sources;

To report to the ICC Chair and ICC Bureau on any pertinent financial matter throughout the year which the Committee Chair considers require the urgent attention of the ICC Chair and ICC Bureau.

To provide a written report to the ICC Annual Meeting;

4. Access to Financial Documents

The Committee shall have access to all financial documentation of the ICC upon request, including, but not limited to; Bank Account Records, Auditors Reports and any other document relating to the finances of the ICC, which the Committee Chair shall request.

5.Meetings

The Committee shall meet, either in person or via teleconference or electronic mail, at least twice per year and at such other times as shall be determined by the Committee Chair, or at the request of the ICC Chair or ICC Bureau.

6. Review of Terms of Reference

The Committee shall review its terms of reference one-year following their adoption, and thereafter as required. A review shall take place not less than once every four years.

Proposals for amendments may be made by a member of the Committee, by the ICC Chair or any other member of the ICC. Proposals for amendments to the Terms of Reference shall be made firstly to the Chair of the Committee, wherein after they shall be transmitted by the Committee to the ICC Chair and ICC Bureau with the recommendation of the Committee.

Amendments to the Finance Committee Terms of Reference shall be approved by the ICC.

Appendix Two

Contract for services, financial services to the ICC

Attached.

Appendix Three

Contract for services, audit services to the ICC

Attached.

Appendix Three

Contract for services, independent audit.

Attached

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