Expenditure Policy

Introductory Statement

The approved annual Budget is a guidance document for expenditures only and does not constitute approval for any specific expenditure. This Expenditure Policy is meant to detail how BAYS expenditures are approved and documented. Monies shall be spent only in the interest of BAYS. All bills shall be paid either on or before the due date. 

Authorization Requirements

  • Only current members of the BAYS BOD can request an expenditure of BAYS monies.
  • The BAYS Treasurer and the BAYS President are the two elected officers authorized to approve expenditures per the limits listed below. Authorization from a majority of the Board present and voting at a Regular Board Meeting is required for all contracts and all single or recurring expenditures $2,500 and over. The person making the expenditure request cannot provide the authorized approval. 

Documentation

  • All expenses must be documented with submitted bills or receipts with the initials of the authorized approver noted either on the physical bill/receipt or electronically. Expense requests that go beyond the approved budget limits require approval by the BAYS Board. 
  • All validated receipts/bills must be attached to the record of the disbursement in QuickBooks or other accounting software used by BAYS to keep the official books. This includes:
    • Detailed bills (e.g. for computer development work, referee payments, contract services, etc.)
    • Itemized receipts are required for cash or credit card expenses.
    • Self-reported Referee Assignor payment requests must be submitted to the BAYS Treasurer with a copy to the involved Club President.
  • Treasurer at each regular meeting will provide a financial report to include, but not limited to the following:
    • Year to date Profit and Loss statement which shows approved budget vs actuals
    • An income and expense report on the previous full month
    • A Balance sheet showing assets and liabilities  
    • Any potential or actual expense overages over $500 beyond the approved budgeted amount.   

Expenditure Approval Limits

  • Board approved BOD contracts, proposals, salaries, referee, and referee assignor payments that have “monthly” contractual payments can be authorized for payment by the Treasurer after receiving authorization to pay from the expense owner.
  • Single expenditures 
    • Up to $1,000 require the Treasurer’s or President’s authorized approval.
    • $1,000 up to $2,500 shall require the Treasurer’s and President’s documented authorized approvals.  
    • $2,500 and over shall require approval by a majority of the Regular Board present.
  • Single Expenditures with Recurring Vendor (no written contract i.e. lawyers, consultants)
    • Up to $1,000 require the Treasurer’s or President’s authorized approval.
    • $1,000 up to $2,500 shall require the Treasurer’s and President’s documented authorized approvals on a written proposal.
    • $2,500 and over shall require approval on a written proposal by a majority of the Regular Board present and voting.
  • Contracts
    • Up to $1,000 require the Treasurer’s or President’s authorized approval.
    • From $1,000 up to $2,500 must have a written proposal presented to the Board of Directors for review and discussion and then be approved by a majority of the Board present and voting. 
    • $2,500 and over must have a Statement of Work presented to the Board of Directors at a Regular Board Meeting for review and discussion and then be approved by a majority of the Board present and voting.  
    • Subsequent contract renewals must also be approved by a majority of the Board present and voting at a Regular Board Meeting. Contracts should be evaluated and benchmarked to market rates upon renewals where appropriate. If found to be noncompetitive, then the contract should be rebid. 
    • Any new contracts exceeding $10,000 in annual value must be competitively bid. 
  • Overages 
    • Any expense overages over $500 beyond the approved budgeted amounts need to be presented and approved by a majority of the Board present and voting. 

 

 

Revision Log

6/10/2020 New BAYS Expenditure Policy BOD
7/15/2020 Revised to clarify recurring expenditures and limit amounts BOD