Bob Armstrong
04-08-2010, 08:17 AM
In this thread, we will debate this motion. But we will not vote on it at this meeting, since in the GL it is only up now for “ first discussion “. The voting on it will take place at the July AGM. But we should debate it now, as the first discussion.
Here is the motion/commentary ( without notes ):
Motion # 2010-10 – Amending Section 8 of Bylaw 3 – Treasurer
Revision # 3, Dec. 22, 2009
Moved: Robert Armstrong Seconded: Paul Leblanc
That Bylaw 3, Duties of Officers, Section 8 – Treasurer - be deleted and that the following replace it:
“ Treasurer
8. ( a ) The Treasurer will be responsible for reviewing the financial records maintained by the Executive Director, or his/her equivalent, who shall:
i) keep the general books of the account of the Federation, in which shall be recorded all receipts and disbursements. He shall have the custody of such books of account and all bank books, cancelled cheques, vouchers, statements, and other documents pertaining to the general bank account or bank accounts of the Federation, other than banking resolutions touching the authority of signing officers, which shall be entered in the Minute Book, and retained by the Secretary.
ii ) from time to time, as may be requested by the President, furnish him with such information as to the financial affairs of the Federation, as he may desire.
iii ) Annually, as of the last day of the fiscal year, shall close the accounts, and shall prepare a Financial Statement of the Affairs of the Federation as at that date, showing all receipts and disbursements, under such groupings and classifications as he may deem desirable, together with a Balance Sheet showing the assets and liabilities of the Federation as of that date, and shall file a copy of these statements with the Secretary, over his signature.
iv ) file a copy of these statements also with the Auditor to the Federation, and shall submit for his examination, such books and records as the Auditor may require to effect an appropriate examination, and issue a Certificate in connection therewith.
( b ) The Treasurer will also be responsible for developing, in conjunction with the President, an annual budget, to be presented by the President for approval to the Assembly of Governors within 1 month of the start of a new CFC administration. ”
Commentary:
The section proposed in Motion 2010-01 telescoped the financial duties so much, that the specifics of what records are to be kept, as set out in the current section, is being lost. There needs to be a statement somewhere of what financial records must be kept, and this section is the place to do that. For this reason we wish to keep the current section, in a slightly amended form. The amendment is that for years the Treasurer has not prepared and maintained the financial records of the corporation – this has been done by the Executive Director. The duty of the Treasurer has been merely to oversee this process. So we have amended the section to make this clear.
Also, the CFC has never operated on a formal budget system. The reason for a budget is to guide spending during the fiscal year, to make certain that spending does not exceed revenue, and the Corporation end up with a deficit. The CFC has just come off 5 consecutive years of deficits averaging $ 30,000 per year. If any corporation is in need of a budget, it is the CFC. We have decided that such budget should be prepared by the new Executive. The proposed motion states that it is to be prepared 1 month before the end of the fiscal year, but this leads to the problem we have seen this year. The old administration prepares a budget for the coming fiscal year, by the end of March, but then the new administration is elected in July, and they have different priorities, and so they then go and “ revise “ the budget. We think it is better to delay the budget to the end of July or start of August, so that a budget with new administration priorities will be presented. As well, it may be that in future, the CFC AGM may be advanced to earlier than July, in which case this would assist in the budget coming in earlier in the new fiscal year. Finally, we have made it clear that the budget by the President, prepared in consultation with the Treasurer, is presented for the approval of the Assembly of Governors.
Here is the motion/commentary ( without notes ):
Motion # 2010-10 – Amending Section 8 of Bylaw 3 – Treasurer
Revision # 3, Dec. 22, 2009
Moved: Robert Armstrong Seconded: Paul Leblanc
That Bylaw 3, Duties of Officers, Section 8 – Treasurer - be deleted and that the following replace it:
“ Treasurer
8. ( a ) The Treasurer will be responsible for reviewing the financial records maintained by the Executive Director, or his/her equivalent, who shall:
i) keep the general books of the account of the Federation, in which shall be recorded all receipts and disbursements. He shall have the custody of such books of account and all bank books, cancelled cheques, vouchers, statements, and other documents pertaining to the general bank account or bank accounts of the Federation, other than banking resolutions touching the authority of signing officers, which shall be entered in the Minute Book, and retained by the Secretary.
ii ) from time to time, as may be requested by the President, furnish him with such information as to the financial affairs of the Federation, as he may desire.
iii ) Annually, as of the last day of the fiscal year, shall close the accounts, and shall prepare a Financial Statement of the Affairs of the Federation as at that date, showing all receipts and disbursements, under such groupings and classifications as he may deem desirable, together with a Balance Sheet showing the assets and liabilities of the Federation as of that date, and shall file a copy of these statements with the Secretary, over his signature.
iv ) file a copy of these statements also with the Auditor to the Federation, and shall submit for his examination, such books and records as the Auditor may require to effect an appropriate examination, and issue a Certificate in connection therewith.
( b ) The Treasurer will also be responsible for developing, in conjunction with the President, an annual budget, to be presented by the President for approval to the Assembly of Governors within 1 month of the start of a new CFC administration. ”
Commentary:
The section proposed in Motion 2010-01 telescoped the financial duties so much, that the specifics of what records are to be kept, as set out in the current section, is being lost. There needs to be a statement somewhere of what financial records must be kept, and this section is the place to do that. For this reason we wish to keep the current section, in a slightly amended form. The amendment is that for years the Treasurer has not prepared and maintained the financial records of the corporation – this has been done by the Executive Director. The duty of the Treasurer has been merely to oversee this process. So we have amended the section to make this clear.
Also, the CFC has never operated on a formal budget system. The reason for a budget is to guide spending during the fiscal year, to make certain that spending does not exceed revenue, and the Corporation end up with a deficit. The CFC has just come off 5 consecutive years of deficits averaging $ 30,000 per year. If any corporation is in need of a budget, it is the CFC. We have decided that such budget should be prepared by the new Executive. The proposed motion states that it is to be prepared 1 month before the end of the fiscal year, but this leads to the problem we have seen this year. The old administration prepares a budget for the coming fiscal year, by the end of March, but then the new administration is elected in July, and they have different priorities, and so they then go and “ revise “ the budget. We think it is better to delay the budget to the end of July or start of August, so that a budget with new administration priorities will be presented. As well, it may be that in future, the CFC AGM may be advanced to earlier than July, in which case this would assist in the budget coming in earlier in the new fiscal year. Finally, we have made it clear that the budget by the President, prepared in consultation with the Treasurer, is presented for the approval of the Assembly of Governors.