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2.7 Financial Condition and Activities: UUA Governance Manual

The President shall not cause or allow conditions that would jeopardize the Association’s fiscal health.

Further, without limiting the scope of the foregoing by this enumeration, the President shall not:

  1. Fail to cooperate fully with the annual audit of the Association’s financial statements, or to sign the financial statements and certify that they fairly represent the financial condition and operations of the Association. Subject to the limitation that the audit does not provide absolute assurance because not all transactions are tested and because audit procedures are determined based on our risk assessments, the audit shall address whether:
    1. the financial statements have been prepared in compliance with Generally Accepted Accounting Principles (GAAP),
    2. financial procedures and staff responsibilities have been documented,
    3. any secured debt over $50,000 has been issued without prior Board approval,
    4. Association resources, including staff time, have been used in such way as to be of primary benefit to a private purpose rather than to the Association and its mission,
    5. Association funds, funds received by the Association in connection with charitable gift annuities and similar instruments, and funds held in trust by the Association for the benefit of member congregations and other entities have been received, held, and disbursed in accord with applicable law, trust documents, and prudent financial management practices,
    6. Board-restricted funds have been used for purposes other than those specified by the Board,
    7. financial obligations have been met in a timely manner, and
    8. financial operations have been carried out in a way that complies with the requirements for maintaining the Association’s nonprofit, charitable tax status under federal and state laws.
  2. Use donor-restricted funds, including all income and appreciation therefrom, in a manner inconsistent with the terms of the donation, except that, to offset the costs of providing administrative services that support programs funded with restricted gift and endowment income, the President may charge an overhead fee of not more than 15% on all spending from restricted gift and endowment funds.
  3. Fail to provide timely and transparent financial reporting at an appropriate level for the audience, including:
    1. reports on the use of any budget surplus, including one due to unrestricted gifts and bequests that exceed the budgeted level,
    2. reports on the number of employees on the Association’s payroll, and
    3. reports on income, expenses, and balances in restricted gift funds.
  4. Fail to monitor revenues and expenses against the Board-approved budget, or fail to make timely reports on significant variances.
    1. In the current operations budget segment, the President shall make every reasonable effort to avoid an operating deficit.
    2. In the Beacon Press budget segment, the President shall follow the Beacon Press Financial Policy (Appendix 2.F).
    3. In the General Assembly budget segment, the President shall make every reasonable effort to avoid an operating deficit (after taking into account the surplus or deficit carried forward from the prior year).
    4. In the UU [Unitarian Universalist] Common Endowment Fund budget segment, the President shall follow the Investment Policy (Appendix 2.B) and the Endowment Spending Policy (Appendix 2.H)
      Pending Changes Concerning Investment Policy
    5. In the Congregational Properties and Loan Fund budget segment, the President shall make every reasonable effort to avoid an operating deficit, and shall follow the Congregational Loan Policy (Appendix 2.A).
  5. Permit the Association to accept gifts of tangible or intangible property (including financial assets) which expose the Association to financial, legal, or other risk; that are inconsistent with the Shared Vision (ENDS); or that violate the Association’s Gift Acceptance Guidelines.
  6. Acquire, encumber, make significant renovations to, or dispose of real property, or lease significant amounts of space, without prior Board approval, except that the President may accept and promptly dispose of real property donated to the Association. Before requesting Board approval for any such action, the President shall not fail to provide to the Board a detailed proposal, including an assessment that compares proposed and current facilities, and a plan for communicating the rationale for property decisions to congregations. In preparing such an assessment, the President shall not fail to:
    1. Explain how facilities support the Association’s Shared Vision, including the benefits and impacts of facilities on stakeholders, and including but not limited to historically marginalized voices.
    2. Evaluate facilities needs within a long term strategic plan (at least 10-15 years).
    3. Analyze the financial impact of facilities, including any savings or costs associated with changes.
    4. Assess potential liabilities, including environmental remediation costs.
    5. Ensure that facilities meet defined standards of accessibility, ease of logistics, and welcome.
    6. Consider the symbolic and historic value of facilities in balance with future needs.
    7. Assess the environmental impact of facilities.
  7. Receive, hold, or disburse any funds that are not reported in the consolidated financial statements of the Association or the UUA Employee Benefits Trust.
  8. Make payments for travel or other reimbursable expenses incurred by staff members or volunteers (including board, committee, or commission members), except as authorized by a travel and expense reimbursement policy.

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Last updated on Tuesday, January 21, 2014.

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