Section 6.13A

Development Fund Process

Development Fund Process

1. PURPOSE AND SCOPE

  • Development Funds are Board Designated Funds from the Society's reserves intended for research and development of new programs and initiatives that once completed will benefit the Society as a whole. These funds are intended to provide short-term financial flexibility to fund unbudgeted opportunities.
  • Development Funds are approved for specific projects and if required may extend over more than one fiscal year to ensure project completion. 
  • Development Funds approved for a specific project cannot be used for any other purpose, e.g., no substitutes allowed. 
 

2. DEFINITIONS

  • Research Projects
    • Acquire new knowledge; investigate and discover new information, products, services, technology, methods or markets; 
    • Include but not limited to: literature searches, databases, surveys, engaging other organizations, agencies and persons, including consultants; 
    • Research results form the basis for decisions, action plans, and development of new or revised Society programs and activities. 
  • Development Projects: 
  • Produce new and revised programs or products; member or professional services; 
  • Include but not limited to: grant proposal writing, curriculum development, delivery/distribution system development, product or media design, packaging and production; 
  • Development results fulfill Society strategic goals and objectives; generate non-dues revenues. 
 

3. DEVELOPMENT FUND AVAILABILITY

  • Annually, money is designated from the Society's reserves up to 2% gross budgeted revenues for program research and development. (Reference Board Motion #2166: May 1996.) 
  • Funds allocated to a specific approved project will be available until the project is completed.    Funds not allocated to a specific project will be returned to unrestricted reserves.  There is no carryover of unallocated funds.   
  • Depending upon economic conditions, the Finance Committee may recommend to the Board of Directors a lower percentage or not to designate reserves at all for this purpose within a specific fiscal year. This does not affect development funds previously approved.
 
 

4. REQUEST AND APPROVAL PROCEDURE

  • Any member of the Board of Directors or appropriate staff liaison develops a written proposal for development funds. 
  • The Board approves requests for funds. The Board authorizes the Executive Committee to approve development requests of $25,000 or less.  
  • Approved development fund expenses shall not be charged against net income.  They will be reported in the financial statements as “Board Designated Expenditures”. 
  • Project submittal should include the following information:
    • Council or staff responsible 
    • Project description, purpose and scope – describe benefit to society/members and how aligned with the Society Strategic Plan. 
    • Reason for requesting reserve funds 
    • Detailed pro forma including key assumptions, projected revenues, and gross profits 
    • Timeline to completion 
    • Selection process for contracting vendors, if necessary 
    • Purchase requests/contracts 
  • The appropriate Staff Liaison reviews the request with the Society Controller for completeness and forwards it to the Vice President-Finance, Board of Directors, or Executive Committee as appropriate.
    • The Vice President of Finance schedules a meeting with the Finance Committee to review the request on its financial considerations and makes a recommendation to the Board or Executive Committee. 
    • The Staff Liaison and Society Controller forwards this recommendation with the request to the Executive Director who places the request on the next Board or Executive Committee agenda, or if it is an emergency, schedules a special meeting. 
    • The Board or Executive Committee approves/disapproves all development fund projects including their timing and disbursement.  Approval requires a simple majority vote. 
    • The Executive Director notifies the requestor of the committee's decision. 
    • The Controller disburses funds in accordance with current Society's financial policies.
 

5. ACCOUNTABILITY

  • The Project Manager or Staff Liaison provides updates to the Society Controller and/or Vice President-Finance who provides the Finance Committee and Board of Directors financial reports on the disbursement and balance of funds by project until completion.   
  • The Finance Committee shall review Development Fund spending and may recommend to the Board or Executive Committee that funds be withheld or discontinued for projects not performing to expectations. 
  • Completed projects are to be included in revenue and/or expense as part of the normal budgeting process.  
  • Projects/initiatives which require multiple fiscal years to complete will be approved on an incremental basis.
 

Approved By/Date:Board of Directors: 06/2017

Replaces Edition Dated:06/2014

Next Revision Due:06/2019

 

 
 

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