Financial Policy

Philosophy

The purpose of our financial policy is to fulfill Shockwave’s mission in the most effective and efficient manner and to remain accountable to all stakeholders, including clients, partners, funders, employees, and to the community. In order to accomplish this, the directors of Shockwave commit to providing accurate and complete financial data for internal and external use agreed upon by all of the Board of Directors.

Authority

The Board of Directors is responsible for the financial management of all activities. All 3 directors will be authorized to act on the Board’s behalf on financial matters when action is required in advance of a meeting of the Board of Directors.

The Directors are responsible for the day-to day financial management of the organization. The Board authorizes all directors in conjunction with each other, to hire and supervise staff and independent consultants, pay bills, receive funds, and maintain bank accounts.
All Directors are authorized to sign checks up to $2,000. Checks for amounts greater than $2,000 shall require the signature of two of the three Directors.
All Directors are authorized to enter into contracts for activities that have been approved by the Board as a part of budgets or plans. The Directors must authorize any contracts outside of these parameters and all contracts with a financial value greater than $10,000.
The Directors are authorized to manage expenses within the parameters of the overall approved budget, reporting to all Directors on variances and the reason for these variances.
The Directors must approve any use of the board designated cash reserve fund.

Responsibilities

The Directors shall:

Account for donor restricted and board designated funds separately from general operating funds, and clearly define the restrictions applicable to these funds.
Report the financial results of operations quarterly.
Pay all obligations and file required reports in a timely manner.
Make no contractual commitment for bank loans, corporate credit cards, or for real estate leases or purchases without specific approval of all 3 Directors.
Record fixed assets with purchase prices greater than $500 as capital assets in accounting records.
Limit vendor credit accounts to prudent and necessary levels.
Obtain competitive bids for items or services. Selection will be based on cost, service, and other elements of the contract.

The Board of Directors shall:

Review financial reports at each board meeting.
Provide adequate training to members to enable each member to fulfill his or her financial oversight role.

Financial Transactions with Insiders

No advances or borrowing of funds to employees, or directors are authorized. Direct and necessary expenses including travel for meetings and other activities related to carrying out responsibilities shall be reimbursed.

Asset Protection

In order to ensure that the assets of Shockwave are adequately protected and maintained, the Directors shall:

Insure against theft and casualty losses to the organization and against liability losses to Board members, staff, or the organization itself to levels indicated in consultation with suitable professional resources.
Plan and carry out suitable protection and maintenance of property, building, and equipment.
Avoid actions that would expose the organization, its board, or its staff to claims of liability.
Protect intellectual property, information, and files from unauthorized access, tampering, loss, or significant damage.
Receive, process, and disburse funds under controls that are sufficient to maintain basic segregation of duties to protect bank accounts, income receipts, and payments.

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