1. business and industrial
2. company
3. annual report

NZU Treasurer’s Manual
October 2013
TREASURER’S MANUAL
CONTENTS
1. NZU Treasurer’s Job Description
2. Treasurer’s Guide
A. Contact and Email Details
B. Bank Accounts
i. NZU Policy
ii. Current bank account details and assignments
iii. Bank contacts
iv. Internet banking procedures
v. Visa debit card procedures
vi. Current NZU List of Signatories
C. Funds Held on Behalf of Others
i. NZU Policy
ii. Accounting issues
iii. Procedures for following up refunds and under-payments
D. Budgets and Approvals
i. NZU Policy
ii. Preparing the NZU budget
iii. Individual activity budgets
iv. Monitoring progress against budgets
E. Payments
i. NZU Policy
ii. Payment procedures
F. Financial Records
i. NZU Policy
ii. Reconciling bank statements
iii. Current record-keeping procedures
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G. Annual Financial Accounts
i. NZU Policy
ii. Current best practice
iii. Procedure for compiling annual financial statement
H. Taxation
i. Income tax exempt status
ii. GST
iii. Payments to Volunteers
iv. Employees
Appendix 1: NZU Financial Policy
Appendix 2: Rules of NZU
Appendix 3: Sample Annual Financial Statement
Appendix 4: Treasurer’s Report Template
Appendix 5: Tax Exemption Certificates
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1. JOB DESCRIPTION – NZU Treasurer
Responsible to:
NZU Board
Directly Supervising:
Functional Relationships With:
NZU Board, Players, Regional Bodies, Representative
Campaign/Team Managers
Main Objectives
1.
To ensure the effective management of NZU’s financial statements and accounts.
2.
To ensure correct recording and reporting of all NZU financial transactions.
3.
To ensure all financial documents are prepared and filed in accordance with applicable NZ law.
Key Tasks
Desired Outcomes
1.
Record all financial transactions including
receipts and payments of NZU.
Clear and accurate in all areas of Accounting.
2.
Issue receipts and invoices as appropriate
and ensure that outgoing invoices
(Authorised signatory to co-authorise) are
paid.
Accurate invoicing and payments made on time
and in accordance with authorised budget.
3.
Bank cheques/cash as soon as practicable,
reconcile monthly bank statements.
Clear and accurate records.
4.
Prepare an annual budget for the NZU.
Accurate Budget allowing Board to make
informed decisions.
5.
Prepare Annual Financial Statements
including Statement of Financial
Performance and Statement of Financial
Position to be presented at the AGM.
Accurate Financial Statements in a timely
manner.
6.
Apply for funding, complete funding
applications as directed by the NZU Board.
Correct procedure for funding applications
carried out in a timely manner.
Key Objectives
Desired Outcomes
1.
Provide the NZU Board with a clear picture
of the financial position of NZU.
Decisions able to be made effectively.
2.
Accurate financial recording.
Clear and accurate records, timely reports.
3.
Annual financial statements filed correctly
with the Companies Office.
Maintenance of Incorporated Society status in
accordance with NZ law.
Objectives Deadline
Objectives outlined above are due to be on track by each AGM. Quarterly updates should be given
to the board to make sure all objectives are on track to being completed or at the right stage.
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Intellectual Property
Any ideas, systems or processes that were created by the NZU Treasurer that are agreed to be used
by the NZU or used within NZU during and after the resignation of the NZU Treasurer is the
Intellectual property of NZU. Any ideas, systems or processes not used by the NZU but created by
the person is still the intellectual property of the person when they leave NZU. Any intellectual
property owned by others used within NZU that is not the creation of the NZU Treasurer is still
owned by their respective owners.
Essential Qualities





Regular E-mail and web access
Be extremely competent with multiple computer programs and resources.
Ability to meet deadlines.
Have enough free time to complete tasks and objectives. (approx 2 hours per week)
Accounting and finance skills
Desirable Qualities
 Knowledge of Accounting and Banking best practises
 Previous Treasurer experience
 Contacts with Regional Bodies, Ultimate Suppliers and National Tournament Organisers
Removal Process
 The NZU Treasurer can resign at any time with 6 weeks written notice.
 The NZU Board may remove the NZU Treasurer at any time with 6 weeks written notice.
 Notice of removal should include clear indications of the actions or omissions leading to
their removal and their repercussions.
 The notice to remove should be cancelled if the person addresses those issues to the
board's satisfaction.
 If notice of removal is given to the NZU Treasurer ownership of used intellectual property
must be discussed on future use and agreed with consent of both the person and the NZU
board.
Remuneration
The NZU Treasurer is not an employee of New Zealand Ultimate Inc. but a volunteer helping out to
carry out various tasks.
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2. Treasurer’s Guide
A.
Contact and Email Details
i. The NZU Treasurer gmail account, [email protected], can be used for all
incoming and outgoing mail relating to the treasurer role. The previous
treasurer or the board chair will provide you with the login details, and you
should immediately change the password.
ii. You can email all board members via [email protected].
iii. The board member currently responsible for the finance portfolio is Andrew Ivory
[email protected].
(Please update as required, for the benefit of the next treasurer).
iv. The current and immediate past treasurers are:
1. Helen Germann [email protected]
2. Mike Connolly [email protected]
(New treasurers: please update this with your details so they pass to the next treasurer in due course).
v. NZU financial information, including budgets, forms, electronic records etc. are
stored in the NZU DropBox. The board chair will provide you with details of
how to access the DropBox.
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B.
Bank Accounts
i. Extract from NZU Financial Control Policy:
1
Bank Accounts
1.1
NZU shall maintain at least one bank account, which shall be used for the operational finances
of NZU.
1.2
Funds held by NZU on behalf of others (for example in trust for international campaigns) shall
be held in a bank account or bank accounts separate from the NZU operational bank
account/s.
1.3
All bank accounts used for NZU financial affairs, whether directly or on behalf of others, shall
be maintained at a single bank with NZU as master account holder.
1.4
The persons authorised to operate the bank accounts of NZU must be only those persons in
the NZU List of Signatories (see Rules of NZU, 10.4).
1.5
NZU may maintain a single Visa debit card (or equivalent) to facilitate purchases. The Visa
debit card must be issued to a person on the List of Signatories. The account to which the
Visa debit card is issued must be maintained at a balance not exceeding NZ$200 at all times,
unless a Visa debit purchase has been pre-approved by the board in which case the purchase
funds may be transferred into the Visa debit account with the appropriate authorisations.
1.6
All bank accounts used for NZU financial affairs shall require the authorisation of at least two
persons on the List of Signatories for all transactions, including but not limited to written
cheques, withdrawal slips, outgoing electronic transactions and transfers between NZU
accounts; with the sole exception of a single Visa debit card account set up under 1.5 above,
which shall require the authorisation of one person from the List of Signatories.
ii. Current bank accounts and assignments:
NZU currently banks with Kiwibank. The master account number is
xx-xxxx-xxxxxxxx-xx
The following suffixes are currently open:
NZU accounts:
-01 NZU operating account
-03 NZU savings account
-05 Visa debit account (see policy 1.5 above)
Funds held by NZU on behalf of others:
-02 Seniors operating account
-06 Seniors savings account
-07 U23 operating account
-08 U23 savings account
-09 U19 operating account
-10 U19 savings account
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iii. Bank contacts:
The current contact for NZU at Kiwibank is Kiwibank Business Banking on 0800 601 601 or
[email protected]
iv. Internet banking procedures:
NZU is set up for Kiwibank internet banking, with access to all the accounts above.
The Access Number is xxxxxxx and the board chair will advise you of the login details.
All members of the NZU List of Signatories should have full access to internet banking for
the accounts above, with the exception of the Visa debit (-05) account which can be
restricted to the Visa debit cardholder only. Generally the treasurer will be on the list of
signatories and will be the Visa debit card holder.
Other members of the board who are not on the list of signatories should have view-only
internet banking access to all accounts.
Other officers of NZU (for example campaign managers) may also be given view-only
access for internet banking, and if possible their viewing rights should be limited to the
accounts which are directly relevant to their campaign.
v. Visa debit card procedures:
The Visa debit card is linked to the -05 account and may be used for authorised purchases.
It was introduced to streamline online purchases and to facilitate expenditure on behalf of
volunteers.
In usual circumstances, the Visa debit card will be issued to the treasurer.
As per the policy above, funds for an approved purchase are transferred to the -05
account using two authorised signatories, and then the Visa debit card may be used with a
single authorisation.
As the -05 is the only account requiring a single authority, it should be maintained at a
small balance (less than $200) between authorised purchases.
vi. Current NZU List of Signatories:
The current NZU List of Signatories is as below. This list is selected and approved by the
board and is required to be maintained under the Rules of NZU. Note that this is a
separate list from the Kiwibank list of people authorised to operate the NZU accounts, but
that the two lists should consist of the same names.
That is to say, when someone is added to or removed from the authorised signatories, this
must happen in two places: one on the List of Signatories (a resolution from the board)
and one on the Kiwibank list (an application to the bank, signed by two of the remaining
signatories and supported by the board resolution).
Generally the treasurer will be a member of the List of Signatories.
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Current List of Signatories:
Helen Germann (Visa debit holder)
Iain Stewart
Sherif Ibrahim
(please update as required, for the benefit of the next treasurer)
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C.
Funds Held on Behalf of Others
i. Extract from NZU Financial Control Policy:
2
Funds Held on Behalf of Others
2.1
Funds held on behalf of others (for example in trust for international campaigns) remain the
property of the persons on whose behalf those funds are held.
2.2
Any benefits arising from the holding of funds on behalf of others (for example interest on
credit balances, foreign exchange gains etc.) shall accrue to the persons on whose behalf
those funds are held.
2.3
Any direct costs arising from the holding or management of funds on behalf of others (for
example bank fees, foreign exchange costs etc.) shall accrue against the persons on whose
behalf those funds are held.
2.4
When the purpose for which funds are held in trust is complete (for example when an
international campaign is finished and all external financial transactions are complete) NZU
shall make best endeavours to return any remaining funds held in trust to the persons on
whose behalf those funds are held.
2.5
If for any reason, after NZU having made all reasonable efforts to return funds to the persons
on whose behalf those funds are held, a credit balance should remain, that credit balance may
be applied by NZU to the next subsequent purpose of the same or equivalent nature, on the
basis that the funds should continue to be utilised for the benefit of the same or equivalent
persons in the future. (For example, unreturnable funds remaining after a WUGC campaign
should be applied to the next subsequent WUGC campaign)
ii. Accounting issues:
NZU provides assistance to our international team campaigns by handling funds on their
behalf through bank accounts set up under the NZU master account number, and with the
suffixes referred to in the list above.
It is important that these funds are handled and treated as completely separate from NZU
operating finances. If handled appropriately, they are not considered part of NZU income
and expenditure from an IRD point of view, and do not count towards our requirement for
GST registration for example.
As the campaign funds are separate from NZU, any interest they earn or charges they
incur, or any foreign exchange gains or losses, should be passed on directly to the
campaigns, and not credited/debited to NZU.
iii. Procedures for following up refunds and under-payments:
Principal responsibility for ensuring all participants in a campaign or other event make
their payments in full lies with the campaign manager or event organiser. The treasurer
and board may assist when called upon to do so, and to ensure integrity of oversight.
The general principle is that payments should be made in full before participation is
allowed in the event or campaign (or at least payments should be up to date as per any
agreed payment schedule and event schedule).
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In practice, because of the complexity of calculating the exact costs in advance,
particularly with overseas campaigns involving fluctuating exchange rates and unknown
ground costs, there is often a wash-up required afterwards, with some participants being
due refunds and some participants owing final amounts.
The process for ensuring payments and refunds are made should follow the responsibility
line above: campaign manager / event organiser in the first instance, followed by
treasurer and board.
To maintain oversight throughout the process, the treasurer should monitor progress on
this issue (an extra pair of eyes) during and following an event/campaign, and raise any
perceived issues with the campaign manager/ event organiser either directly or through
the board.
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D.
Budgets and Approvals
i. Extract from NZU Financial Control Policy:
3
Budgets and Approvals
3.1
Prior to the start of each financial year, the treasurer and board of NZU shall prepare and
approve a budget which sets out the forecast income and expenditure for that financial year.
3.2
Specific budgets shall be completed, and approved by the board of NZU, for each major
activity of NZU (for example each national tournament, international campaign etc.). Budgets
should be completed and approved as early as possible prior to the activity and before any
expenses are incurred.
3.3
Financial expenditure which sits within approved budgets may be authorised by persons on
the List of Signatories in accordance with the Rules of NZU.
3.4
Any material alterations to approved budgets, and any expenditure outside approved budgets,
must be approved by the board of NZU.
3.5
The person responsible for the budget of each activity (and in the case of the NZU budget, the
treasurer of NZU) shall report the financial progress against budget on a regular basis to the
board of NZU, as and when requested.
ii. Preparing the NZU budget:
The treasurer and board should work together to prepare a budget for each financial year.
Currently the financial year of NZU is 1 January – 31 December, so the budget should be
prepared and presented for board approval in December of the previous year or earlier.
The treasurer should bring the board’s attention to the requirement to undertake the
budget process in November of each year at the latest, assuming it has not already been
raised.
Generally the budget will be a collaborative effort, with the treasurer and the board
member responsible for the finance portfolio laying out the figures, and other board
members contributing estimates for income and expenditure in their relevant portfolio
areas.
The starting point will be the current year’s budget. This can be circulated to the board
with a request to estimate income and expenditure in their relevant portfolio areas for
the upcoming year.
The completed budget should aim to forecast a net operating surplus for the year. If the
result of the initial estimates across portfolios is a net loss, the draft budget should be
returned to the board for review and re-costing.
Once the budget has been completed, it should be formally approved by the board prior to
1 January.
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iii. Individual activity budgets:
Each NZU activity (e.g. national tournament) and campaign should have its own budget
prepared. This responsibility lies with the event organiser or campaign manager.
The treasurer can assist the event organisers and campaign managers to prepare the
budget by providing the budget for the previous such event/s, or an example budget from
a similar event as a template. The treasurer can also assist further if the organiser is
struggling with the financial estimates required.
Each activity budget should be presented to the board and approved before any
expenditure is made for the event/campaign.
iv. Monitoring and reporting progress against budgets:
The approved NZU budget, and the individual activity budgets, are stored in the NZU
DropBox finance section.
It is the treasurer’s role to control, monitor, and report to the board on progress against
the NZU budget. This includes ensuring receipts and payments are allocated to the correct
budget categories, and ensuring they lie within approved budget figures.
Expenditure outside budgeted amounts requires board approval (see payment procedures
below). The cumulative effect of such extra-budget expenditure should also be measured
and the latest net budget outcome (overall forecast surplus or deficit) should be reported
to the board in the regular treasurer’s report.
The treasurer should complete a report for the board each time the board meets, and at
other times if requested by the board. A template for the treasurer’s report, with
guidelines on content, is in Appendix 4.
Monitoring progress against individual activity budgets is the responsibility of the
manager/organiser of the activity, who will report on this progress directly to the board.
The treasurer should keep an oversight of individual activity budgets (an extra pair of
eyes) and raise any perceived issues with the organiser or directly with the board.
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E.
Payments
i. Extract from NZU Financial Control Policy:
4
Payments
4.1
Outgoing payments made direct to suppliers of goods and services must be supported by full
supplier invoices matching the amount to be paid.
4.2
Outgoing payments made to officers of NZU for goods or services provided by others must be
supported by all of the following:
i.
an NZU expense claim form completed by the officer;
ii.
full supplier invoices matching the amount to be paid;
iii.
proof of payment to the supplier.
4.3
Where an officer is unable to pay a supplier before lodging an expense claim, NZU shall pay
the supplier directly. NZU may make advance payment to an office to cover approved small
expenses, subject to the terms of clause 4.4 below.
4.4
Advance payments made to an officer of NZU for on-payment to a supplier are limited to a
total of NZ$200 (or foreign currency equivalent) advanced to any one officer. Further
advances may be made only once receipts have been submitted covering the previous
advance (i.e. the total outstanding non-receipted advances to any officer must not exceed
NZ$200 or equivalent).
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ii. Payment procedures:
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F. Financial Records
i. Extract from NZU Financial Control Policy
5
Financial Records
5.1
Records shall be kept of all financial transactions undertaken by NZU whether on its own
behalf or others. Records including (but not restricted to) receipts, invoices, expense claims
bank statements and tax records (if any) shall be kept in their original form where possible.
5.2
Records may be stored electronically or physically. Where records are stored electronically,
they shall be saved in at least two distinctly separate locations, one of which should be
accessible by the Board of NZU.
5.3
As soon as practicable following the end of each financial year, all records for that financial
year should be converted to a single form whether electronic or physical (or ideally both). For
example physical records should be scanned and stored with electronic records, and/or
electronic records printed and stored with physical records.
ii. Reconciling bank transactions
At the end of each month print a list of all transactions for the month for each account.
Ensure you have invoices/expense claims for all outgoing funds and receipts/payment
advice for all incoming funds.
Against each transaction, record which budget line it relates to (e.g. “NZUC tournament
fees”, “Internet expenses” etc.). This will allow you to track each budget over time, and
will assist with the preparation of the annual financial statement at the end of the year..
iii. Record-keeping procedures:
File the reconciled bank statements, invoices, expense claims, receipts, payment advises
in the relevant NZU folder which is retained by the current treasurer.
Electronic records should be saved in the NZU DropBox Finance folder.
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G.
Annual Financial Accounts
i. Extract from NZU Financial Control Policy:
6
Annual Financial Accounts
6.1
As soon as practicable following the end of each financial year, a financial statement for that
financial year shall be prepared by the Board or by officers of NZU in accordance with the
Rules of NZU.
6.2
Accounts in the financial statement shall be prepared in accordance with accepted best
practice for an incorporated society in New Zealand of the size and scope of NZU.
6.3
The financial statement shall detail the basis on which accounts have been prepared.
Accounts may be prepared on a cash basis where this is permitted by accepted best practice.
6.4
If accounts are prepared on a cash basis, the financial statement shall draw attention to any
exceptional accounts due or exceptional accounts payable at year end.
ii. Current best practice:
As NZU has tax-exempt status (see Taxation section below), the annual accounts are
prepared for information-purposes only. The guiding principles are simplicity, clarity and
providing a fair and accurate picture of NZU finances for the members.
Accounting on a cash basis (basically just an allocation of the debits and credits from the
bank accounts to different income and expense categories, as per the “Financial Records”
section above) is the simplest method and is an accepted practice for this purpose,
provided this method provides a fair picture of the financial performance and position.
Issues may arise if there are large payments due (to be paid or received) after 31
December, which relate to the financial year but have not yet hit the bank accounts. In
that case, the reported financial performance and position may not be a fair reflection of
reality. The treasurer should make a written note of such transactions, to accompany the
annual accounts, and describe how these transactions affect the actual financial
performance and position.
The basis on which the accounts have been prepared (whether cash-basis or accrual-basis)
must be declared in the financial statement. (See example in Appendix 3)
Note also that the NZU annual accounts deal with actual NZU income and expenditure. All
transactions relating to funds held on behalf of others (e.g. international campaign
accounts) are not part of NZU income or expenditure. Where reference to these funds
appears in the financial statement, a note should be made to this effect.
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iii. Procedure for compiling annual financial statement:
An example annual financial statement is included in Appendix 3.
If you do not have specific accounting experience, it is recommended that you engage
assistance from an accountant or someone with accounting experience to prepare the
annual financial statement. It is very important that it is accurately prepared and
correctly recorded.
The board will assist in getting some experienced support, if you do not have any direct
contacts.
Currently board member Andrew Ivory is a partner in an accounting practice and can assist
with preparing the annual financial statement. [Please update as required for the benefit
of the next treasurer]
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H.
Taxation
i. Income Tax exempt status:
IRD allows income derived by approved amateur sports bodies to be exempt from income
tax. NZU holds an exemption on this basis (see Appendix 5), which also allows exemption
from Resident Withholding Tax (RWT) on interest and dividends earned by NZU.
The Certificate of Exemption from RWT (in Appendix 5) should be presented to banks or
other organisations when opening accounts or making term deposits etc., as it allows NZU
to earn untaxed interest.
ii. GST:
Regardless of NZU’s exemption from income tax, NZU is still required to register for GST if
annual income exceeds the GST threshold (currently $60,000 per annum). Note that the
threshold relates to operating income, and so funds held on behalf of others do not count
towards the threshold, provided NZU treat them as entirely separate (as discussed above).
Currently NZU operating income has not reached the threshold, and NZU is not registered
for GST.
As NZU is not registered for GST, GST should not be added to any invoices we issue.
NOTE: Once the income threshold is reached, NZU must contact IRD and register for GST,
from which point it will be necessary to charge GST on all invoices, and to file GST returns
regularly. If the new financial model being proposed by the board is adopted at the 2014
AGM, it is likely the threshold will be reached in the 2015 year, and so the treasurer
should apply for GST registration in the latter part of 2014.
iii. Payments to volunteers:
Payments to volunteers for reimbursement of “actual and reasonable” expenses do not
incur tax. The expenses must be supported by invoices and receipts (as per the procedures
above). Note that payment for a volunteer’s time is not considered an actual and
reasonable expense in most instances.
One-off or occasional payments to volunteers, over and above their actual expenses (e.g.
bonuses, honoraria) are treated by the IRD as “schedular payments”, equivalent to paying
a contractor. This does not necessarily imply an employment relationship, provided the
payments are one-off or occasional (as opposed to a regular weekly wage, for example).
However, NZU must deduct tax from schedular payments at a fixed rate before paying the
volunteer the balance (the rate of deduction is currently 33%, unless the volunteer
provides NZU with a special tax code certificate in which case we can use the rate on that
certificate). NZU must register with IRD as an employer (even though the volunteer is not
an “employee”)and pay the deducted amount to IRD: instructions on how to do this are on
the IRD website:
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www.ird.govt.nz/payroll-employers/make-deductions/witholding-tax/emp-deductionssalaries-wt-deductions.html
iv. Employees:
NZU does not currently have any employees. The distinction between an employee and a
volunteer who is paid an honorarium is an important one, and is based around key
questions such as:
-
Does NZU instruct them regularly about what to do and how to do it
Are they paid a regular rate (e.g. per hour, week, month)
Do they work a set number of hours each week/month
Do they have to follow NZU rules and procedures etc.
Full details are on:
www.ird.govt.nz/payroll-employers/become-employer/ru-employer
If the answer to several of the above is yes, then the person will be considered an
employee, and we should:
-
Have an employment contract in place with the employee
Register with IRD as an employer, and deduct PAYE etc.
NOTE: If the current proposal for NZU to engage a paid executive officer goes ahead, it is
probable the person in that role will be considered an employee, and it will be necessary
to register with the IRD as an employer.
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Appendi
x1
Financial Control Policy
Name:
Approved by:
Date approved:
SECTION 1 – INTRODUCTION
PURPOSE
The purpose of the Financial Control Policy is to set out the principles, rules and procedures under
which New Zealand Ultimate Inc. (“NZU”) manages its financial affairs.
SCOPE
The Financial Control Policy applies to all management of money and other assets by NZU whether
under its own auspices or on behalf of other parties.
The Financial Control Policy is to be read in conjunction with the Rules of New Zealand Ultimate Inc.,
and in particular Section 10 (“Finances”) of those Rules.
In any circumstance where contradiction or ambiguity arises between interpretation of the Financial
Control Policy and the Rules of New Zealand Ultimate Inc., the Rules of New Zealand Ultimate Inc.
shall prevail.
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SECTION 2 – POLICY
PRINCIPLES
The Financial Control Policy is committed to and guided by the principles of:

Best ethical practice in the management of members’ financial assets;

Risk management through openness, visibility and cross-authorisation;

Best-practice principles of accounting and record-keeping;

Adherence to the Rules of New Zealand Ultimate Inc.
POLICY
1
Bank Accounts
1.1
NZU shall maintain at least one bank account, which shall be used for the operational finances
of NZU.
1.2
Funds held by NZU on behalf of others (for example in trust for international campaigns) shall
be held in a bank account or bank accounts separate from the NZU operational bank
account/s.
1.3
All bank accounts used for NZU financial affairs, whether directly or on behalf of others, shall
be maintained at a single bank with NZU as master account holder.
1.4
The persons authorised to operate the bank accounts of NZU must be only those persons in
the NZU List of Signatories (see Rules of NZU, 10.4).
1.5
NZU may maintain a single Visa debit card (or equivalent) to facilitate purchases. The Visa
debit card must be issued to a person on the List of Signatories. The account to which the
Visa debit card is issued must be maintained at a balance not exceeding NZ$200 at all times,
unless a Visa debit purchase has been pre-approved by the board in which case the purchase
funds may be transferred into the Visa debit account with the appropriate authorisations.
1.6
All bank accounts used for NZU financial affairs shall require the authorisation of at least two
persons on the List of Signatories for all transactions, including but not limited to written
cheques, withdrawal slips, outgoing electronic transactions and transfers between NZU
accounts; with the sole exception of a single Visa debit card account set up under 1.5 above,
which shall require the authorisation of one person from the List of Signatories.
2
Funds Held on Behalf of Others
2.1
Funds held on behalf of others (for example in trust for international campaigns) remain the
property of the persons on whose behalf those funds are held.
2.2
Any benefits arising from the holding of funds on behalf of others (for example interest on
credit balances, foreign exchange gains etc.) shall accrue to the persons on whose behalf
those funds are held.
2.3
Any direct costs arising from the holding or management of funds on behalf of others (for
example bank fees, foreign exchange costs etc.) shall accrue against the persons on whose
behalf those funds are held.
2.4
When the purpose for which funds are held in trust is complete (for example when an
international campaign is finished and all external financial transactions are complete) NZU
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shall make best endeavours to return any remaining funds held in trust to the persons on
whose behalf those funds are held.
2.5
If for any reason, after NZU having made all reasonable efforts to return funds to the persons
on whose behalf those funds are held, a credit balance should remain, that credit balance may
be applied by NZU to the next subsequent purpose of the same or equivalent nature, on the
basis that the funds should continue to be utilised for the benefit of the same or equivalent
persons in the future. (For example, unreturnable funds remaining after a WUGC campaign
should be applied to the next subsequent WUGC campaign)
3
Budgets and Approvals
3.1
Prior to the start of each financial year, the treasurer and board of NZU shall prepare and
approve a budget which sets out the forecast income and expenditure for that financial year.
3.2
Specific budgets shall be completed, and approved by the board of NZU, for each major
activity of NZU (for example each national tournament, international campaign etc.). Budgets
should be completed and approved as early as possible prior to the activity and before any
expenses are incurred.
3.3
Financial expenditure which sits within approved budgets may be authorised by persons on
the List of Signatories in accordance with the Rules of NZU.
3.4
Any material alterations to approved budgets, and any expenditure outside approved budgets,
must be approved by the board of NZU.
3.5
The person responsible for the budget of each activity (and in the case of the NZU budget, the
treasurer of NZU) shall report the financial progress against budget on a regular basis to the
board of NZU, as and when requested.
4
Payments
4.1
Outgoing payments made direct to suppliers of goods and services must be supported by full
supplier invoices matching the amount to be paid.
4.2
Outgoing payments made to officers of NZU for goods or services provided by others must be
supported by all of the following:
iv.
an NZU expense claim form completed by the officer;
v.
full supplier invoices matching the amount to be paid;
vi.
proof of payment to the supplier.
4.3
Where an officer is unable to pay a supplier before lodging an expense claim, NZU shall pay
the supplier directly. NZU may make advance payment to an office to cover approved small
expenses, subject to the terms of clause 4.4 below.
4.4
Advance payments made to an officer of NZU for on-payment to a supplier are limited to a
total of NZ$200 (or foreign currency equivalent) advanced to any one officer. Further
advances may be made only once receipts have been submitted covering the previous
advance (i.e. the total outstanding non-receipted advances to any officer must not exceed
NZ$200 or equivalent).
5
Financial Records
5.1
Records shall be kept of all financial transactions undertaken by NZU whether on its own
behalf or others. Records including (but not restricted to) receipts, invoices, expense claims
bank statements and tax records (if any) shall be kept in their original form where possible.
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5.2
Records may be stored electronically or physically. Where records are stored electronically,
they shall be saved in at least two distinctly separate locations, one of which should be
accessible by the Board of NZU.
5.3
As soon as practicable following the end of each financial year, all records for that financial
year should be converted to a single form whether electronic or physical (or ideally both). For
example physical records should be scanned and stored with electronic records, and/or
electronic records printed and stored with physical records.
6
Annual Financial Accounts
6.1
As soon as practicable following the end of each financial year, a financial statement for that
financial year shall be prepared by the Board or by officers of NZU in accordance with the
Rules of NZU.
6.2
Accounts in the financial statement shall be prepared in accordance with accepted best
practice for an incorporated society in New Zealand of the size and scope of NZU.
6.3
The financial statement shall detail the basis on which accounts have been prepared.
Accounts may be prepared on a cash basis where this is permitted by accepted best practice.
6.4
If accounts are prepared on a cash basis, the financial statement shall draw attention to any
exceptional accounts due or exceptional accounts payable at year end.
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SECTION 4 – REFERENCE AND SUPPORTING INFORMATION
DEFINITIONS
Word/Term
Definition
NZU
New Zealand Ultimate Inc.
Board
The Board of New Zealand Ultimate Inc.
ADDITIONAL INFORMATION
Document/Site
Location
Rules of New Zealand Ultimate Inc.
www.ultimate.org.nz
SECTION 5 – GOVERNANCE
RESPONSIBILITY
Responsible manager(s)
NZU Board and Treasurer
Policy administrator
NZU Board
Approving body
NZU Board
CHANGE HISTORY
Version
Approval date
Approved by
Change
1.0
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Appendix 2
Rules of the New Zealand Ultimate Inc.
1.
NAME
The organization shall be called New Zealand Ultimate Incorporated, hereafter
referred to as NZU.
2.
OBJECTS
New Zealand Ultimate is a non-profit organisation established as a focal point for the sport of
Ultimate in New Zealand. The objects of NZU shall be :
a)
to foster, control, administer and regulate the sport of Ultimate in New Zealand;
b)
to create opportunities for all participants(e.g. Administrators, competitors,
coaches etc) to reach their potential;
c)
to encourage and develop elite performance;
d)
to encourage and enable mass participation;
d)
to act as the governing body in New Zealand in relation to the Rules of Ultimate;
e)
to promote and support development programmes to further:
i Youth Ultimate for children through the school years,
ii Coaching of Ultimate at all levels,
iii Recruitment, training and retention of administrators and volunteers
iv Modified forms of Ultimate;
f)
to initiate and control national leagues, tournament and competitions for club
and representative teams in New Zealand;
g)
to arrange games in New Zealand and overseas between teams representing
New Zealand and teams representing other countries or states and to select,
control and administer teams representing New Zealand in such matches;
h)
to arrange, control and administer tours overseas by teams representing New
Zealand and tours in New Zealand by teams representing other countries or
states;
i)
to arrange for teams from and/or representing New Zealand to attend
international competitions sanctioned by the World Flying Disc Federation and if
necessary to select, control and administer those teams;
j)
to protect the safety of all participants in Ultimate and to uphold the principles of fair
play, including in relation to ensuring that Ultimate participants within New Zealand
are free from performance enhancing drugs, in concord with policies set by NZU.
3.
POWERS
3.1
NZU, by and through its Board, has power to do all things necessary, desirable or
convenient for the promotion of its objects and in particular may:
a)
purchase, or lease, or acquire any other interests in, real or personal
property;
b)
raise money by subscriptions, levies or otherwise and grant to subscribers or
contributors such rights and privileges as the Association considers
necessary;
c)
borrow or secure the payment of money in whatever manner NZU thinks fit
and mortgage or otherwise charge any property or interest of NZU;
d)
enter into any contract or arrangements with any person or body;
e)
invest, lend or deal with money not immediately required for the purposes of
NZU as the Board may determine from time to time;
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f)
g)
h)
i)
k)
l)
m)
3.2
4.
5.
lend money to a member or affiliated body with or without security on such
terms and conditions as NZU may determine;
employ and remunerate officers and employees of NZU as the Board sees fit;
give rulings as to the application and interpretation of the Rules of Ultimate;
exercise discipline over persons involved in the sport of Ultimate as decided
by the Board;
encourage the playing of Ultimate free from the use of drugs, implement
drug sampling and testing measures, and apply penalties for doping
infractions, in accordance with the Sports Anti-Doping Rules made by Drug
Free Sport New Zealand (DFS) under the provisions of the Sports AntiDoping Act 2006;
affiliate to other organisations in furtherance of the objects of NZU, in
particular the World Flying Disc Federation;
make/alter or rescind bylaws and regulations as a separate document to
these rules.
The borrowing of money (otherwise than by temporary bank overdraft) or charging
any property or interest of NZU, shall be made only pursuant to a resolution of a
General Meeting.
MEMBERSHIP
4.1
NZU shall maintain a Membership Policy at all times.
4.2
Membership shall be either subscription-based or events-based for a period defined
in the NZU membership policy.
4.3
Membership is open to all individuals, as well as legally recognised organisation,
including, but not limited to, educational institutes, commercial businesses, clubs,
societies and trusts, provided that the individual or organisation does not have aims
or agendas that conflict with the objects of NZU.
4.4
Categories of membership are defined below:
a)
Individual – Any individual interested in becoming involved in the sport of
Ultimate is eligible to become an individual member subject to the NZU
Membership Policy;
b)
Organisational – Any legally-recognised organisation interested in
becoming involved in the sport of Ultimate is eligible to apply to become an
organisational member subject to the Membership Policy.
4.5
Matters relating to membership conditions, duration, fees, rights, obligations and
terminations shall be included in the NZU Membership Policy.
4.6
Any changes to the NZU Membership Policy shall be approved by the Board.
4.7
Members of NZU are prohibited from deriving any pecuniary gain, excluding prizes,
from any of NZU’s properties or activities, except to the extent that such Member
may be remunerated by NZU for services rendered to NZU as a full-time or part-time
employee, contractor or reimbursed for money paid on behalf on NZU or as
otherwise specifically provided for in these rules
OFFICERS/BOARD MEMBERS OF NZU
5.1
The Board of NZU shall comprise of 5 elected Board Members.
5.2
At the Annual General Meeting of NZU all of the Board Members shall retire from
office, but shall be eligible upon nomination for re-election.
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6.
5.3
The election of Board Members shall take place in the following manner:
a)
Anyone wishing to stand for election to the NZU Board, shall notify the
current Board in writing at least 14 days prior to the Annual General Meeting
at which the election is to take place.
b)
A list of the candidates’ names in alphabetical order shall be circulated to
members, via the Ultimate and Regional email lists and via the NZU website,
at least 10 days preceding the Annual General Meeting.
c)
If, at the commencement of the meeting, there be an insufficient number of
candidates nominated, those nominated shall be automatically elected, and
nominations for the remaining vacancies may be taken from the floor of the
meeting.
d)
If, at the commencement of the meeting, there be exactly the same number
of nominations as vacancies, those nominated shall be automatically elected
to the Board. No further election needs to take place.
e)
If, at the commencement of the meeting, there be more nominations than
vacancies, a vote shall be taken to elect the Board as outlined in 5.3 f.
f)
Voting at the Annual General Meeting shall be done by a show of hands or by
ballot as the Chairperson sees fits. Each Playing Member or Non-Playing
Member shall have one vote to cast on their choice of nominee. The 5
nominees with the highest number of votes shall be elected to the Board.
th
Where there is an equal number of votes for the 5 position on the Board, a
new election shall take place between the nominees who gained an equal
number of votes with each Member or Non-Playing Member having one vote
to cast.
5.4
A Board member may resign from the Board by giving fourteen (14) days notice of
this resignation. The Board member must ensure that all remaining Board members
are fully aware of any responsibilities that Board member might have left unfinished.
5.5
The Board shall have the power at any time to co-opt any person to fill a vacancy in
the Board until the next AGM.
MEETINGS OF NZU
6.1
Annual General Meetings
The Annual General Meeting shall be open to all Members, Non-Playing Members
and members of Affiliated and Recognised Regional Bodies and shall, where
possible, be held during a National Tournament prior to May each year.
a)
Notice of a General Meeting
i
The Board, or a person nominated by the Board, shall convene all
general meetings of NZU by giving not less than 1 months notice of
such a meeting to all Members, Non-Playing Members and Affiliated
and Recognised Regional Bodies of NZU;
ii
An agenda, including all nominations for the Board and motions to be
put to a vote shall be included in the notice.
iii
The manner by which such notice shall be given shall be determined
by the Board;
b)
Chairperson at General Meetings
i
The Chairperson shall be the Board Chair who shall preside. If the
Board Chair is unavailable then another member of the Board shall
preside. If no Board Member is available, then those present shall
elect one of their number to be Chairperson of the meeting.
ii
The Chairperson shall maintain order and conduct the meeting in a
proper and orderly manner.
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iii
6.2
c)
Voting at General Meetings
Unless otherwise provided by these Rules, at every General Meeting
i
except for votes to alter these Rules, as provided for in Clause 8,
every question, matter or resolution shall be decided by a majority of
votes of the Members and Non-Playing Members present;
ii
every Member present and entitled to vote shall be entitled to one
vote and in the case of an equality of votes, the Chairperson shall
have a casting vote;
iii
voting shall be by show of hands.
d)
Quorum for General Meetings
i
At any General Meeting the number required to constitute quorum
shall be 15 Members.
ii
No business shall be transacted at any general meeting unless a
quorum of members is present at the time when the meeting
proceeds to business.
iii
If, within 30 minutes of the time appointed for the commencement of
a general meeting, a quorum is not present, the meeting, if convened
at the requisition of the Board or the members shall lapse. In any
other case it shall stand adjourned to such other day and at such
other time and place as may be determined.
e)
Business of the Annual General Meeting
The business to be transacted at every annual general meeting shall be:
i
the approval of the minutes of the previous AGM;
ii
the receiving of the Board’s report;
iii
the receiving of the Financial Accounts;
iv
the Election of the Members of the Board;
v
the approval of the levies and subscriptions;
vi
the acknowledging any amendments to the Rules of Ultimate;
vii
amendments to these Rules.
Special General Meetings
a)
Requisition
i
The Board, or a person nominated by the Board, shall convene a
special general meeting:

when directed to do so by the Management Committee;

on the requisition in writing signed by not less than 3
members of the Board or not less than two thirds of the
members of NZU. Such requisition shall clearly state the
reasons why such meeting is being convened and the nature
of the business to be transacted thereat.
ii
6.3
The Chairperson shall count the votes as necessary at the general
meeting.
Such meetings shall be called within 60 days of receipt of requisition.
b)
Chairperson, voting, quorum and notice of meeting and agenda at special
general meetings shall be as defined for annual general meetings.
c)
The business of a special general meeting shall be in the requisition notice
and no other business may be transacted.
Board Meetings
a)
Board meetings shall be held as required in order to conduct the business of
NZU and to decide on any motions put to the Board.
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7
b)
Board meetings may take place in person, over conference call, via email or
over the internet as the Board sees fit.
c)
At all Board meetings, a quorum will compromise at least half of the Board
members.
d)
At the first Board meeting after the Annual General Meeting, the Board shall
elect a Chairperson who shall be known as the Board Chair.
e)
Every motion put to a vote shall be decided by a simple majority of votes,
with each Board member receiving one vote. If there is a tie in the voting,
the Board Chair shall have a casting vote.
f)
Minutes of Board meetings must be made available to all members of the
Society.
BYLAWS
The Board may from time to time make, amend or repeal by-laws and regulations, not
inconsistent with these Rules, for the internal management of NZU and any by-law or
regulation may be set aside by a general meeting of members.
8
9
10.
ALTERATIONS TO THESE RULES
8.1
No additions to or alteration or recession of these Rules relating to the non-profit aims
of NZU or the winding up of NZU shall be approved without the consent of Inland
Revenue. The provisions and effect of this clause shall not be removed from this
constitution and shall be included and implied into any document replacing this
constitution.
8.2
But for any clauses referred to in Sections 4a, these rules may be altered, added to or
rescinded by a resolution passed by at least a two-thirds (2:1) majority of votes at a
General Meeting.
8.3
Meeting notifications must contain details of the proposed changes.
COMMON SEAL
9.1
NZU shall have a Common Seal and it shall be kept by a Board member.
9.2
Whenever the Common Seal is required to be affixed to a document, a resolution
shall first be passed by the Board to that effect.
9.3
The Board member authorised to use the seal must at the same time sign the
document involved.
FINANCES
10.1
As soon as practicable after the end of the financial year the Board shall cause to be
prepared a statement containing particulars of
a)
the income and expenditure of NZU for the past financial year;
b)
the assets and liabilities of the organisation at the close of the financial year;
c)
all mortgages, charges and securities of any description affecting any of the
property of NZU at the close of the financial year.
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11
12
10.2
The NZU shall maintain at least one current bank account.
10.3
The financial year for New Zealand Ultimate shall be 1 January to 31 December of the
same year
10.4
The Board shall cause a list of appropriate people able to sign cheques and
withdrawal slips and approve electronic banking transactions and this shall be called
the List of Signatories.
The names on the List of Signatories shall be:
a)
Delegated Board Members
b)
Any other person nominated by the Board
10.5
Cheques and withdrawal slips shall be signed by at least two (2) people who are on
the List of Signatories.
10.6
All out-going electronic banking transactions must be approved through NZU’s online
banking system by two (2) people who are on the List of Signatories.
AFFILIATION
11.1
NZU shall maintain an Affiliated Organisations Policy at all times.
11.2
NZU shall be affiliated to the World Flying Disc Association for as long as they are in
existence.
11.3
Any organisation that does not wish to or is unable to become an organisational
member of NZU can apply for recognition as an Affiliated Organisation as set down in
the NZU Affiliated Organisations Policy.
WINDING UP
12.1
The Society may be wound up by a resolution passed in accordance with the
provisions on the Incorporated Societies Act 1908 or any subsequent amendments
thereof, or if it has been ordered to do so by the High Court.
12.2
If upon liquidation of NZU there remains, after the satisfaction of all its debts and
liabilities, any property it shall not be paid or distributed among members of the
organisation but shall be given or transferred to some other charitable organisation or
body having objects similar to the objects of NZU, or for some other charitable
purpose within New Zealand.
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Appendix 3: Sample Financial Statement
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Appendix 4: Treasurer’s Report Template
To: NZU Board
From: [name and role]
Date:
Subject: Treasurer’s Report for [period covered: month, quarter, etc]
Purpose: Information Only / Action Required / Decision Required
Executive Summary: [why report is presented, what are the significant
conclusions and learnings, what requires immediate attention, what decisions or
actions are required by the board]
Financial Position: [table of current assets and liabilities]
Financial Performance: [table of income and expenditure versus budget, with notes
about budget issues requiring attention]
Cash Flow Issues: [indicate if any significant payments are known to be coming up which
may cause issues, or significant outstanding amounts are owed to us which are giving us
concern]
Correspondence: [summary of correspondence received or sent which requires
board attention or information]
Strategic Issues: [what progress has been made against our strategic plan, or other
strategic initiatives involving the Treasury role]
Practical Issues: [are there any general issues affecting the role which the board can
assist with]
Other: [anything else you want to bring to the board’s attention]
Opportunities for Improvement: [identify any other ways in which our financial
management could be improved: what should change, what should stop, what new
features could we implement, etc.]
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Appendix 5: Tax Exemption Certificates
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