Financial Controls

Policy

Financial Policies

AMAPCEO has numerous financial policies in place to ensure a strategic, long-term approach to financial management.  Most familiar to Board members are the financial policies within the Board Policies and Procedures manual which covers multiple fiduciary areas including:

• Budgetary Policies
• Donations and Sponsorship Policies
• Expense and Delegation of Authority Policies
• Reserve and Investment Policies

The policies within these categories are used regularly to control the allocation and usage of our financial resources.

Fiduciary Oversite Practices

In addition to policies, AMAPCEO enacts other mechanisms that further delineates fiduciary oversite.  Found within the overarching duties of the Board Policy Manual, these fiduciary actions, which provide oversite, are outlined as follows:

1. Monthly financial statements are submitted and reported to Directors at each Board meeting with prior year financial comparators.
2. Year to date investment performance along with holding summaries and prior year performances are submitted and reported to Directors at each Board meeting.
3. Regular meetings/telephone discussions/emails are held with AMAPCEO’s investment advisor, the AMAPCEO Treasurer, and financial staff with reports back to the Executive Committee and the Board on changes to portfolio holdings.
4. AMAPCEO’s investment advisor attends a Board meeting annually providing updates on investment performance and market trends.
5. AMAPCEO’s investment advisor and external auditors are available at every Annual Delegates’ Conference to answer questions from Delegates.
6. Directors review and approve a draft annual budget based on strategic initiatives and operational requirements. The budget approval process spans two Board meetings (June and September) to ensure Directors have adequate time for comments, questions, and deliberation.
7. AMAPCEO undergoes an annual external audit which reviews financial processes and financial stability. Audit findings, including internal control weaknesses are reported to Directors annually along with audited financial statements.
8. AMAPCEO engages an internal Audit Committee comprised of general members to separately review audit findings and report to the Board of Directors on identified internal control issues.
9. AMAPCEO engages a Finance Committee comprised of general members to cyclically review financial policies and provide comments/recommendations to Directors on various financial initiatives that support the Union’s strategic plan.
10. Reports from the Chief Operating Officer are submitted to all Directors at every Board meeting which provide detailed updates on events and activities authorized by the Board
11. Reports from the Chief Operating Officer are submitted at every Board meeting outlining initiatives delegated by Directors to the Chief Operating Officer and their progress/timeline for completion.

Internal Controls

AMAPCEO also maintains internal controls to protect financial assets and to ensure staff and signing authorities are complying with policy, procedure and the law.  Internal controls are step by step procedures that detail the authorized and responsible staff and signing authorities to carry out financial actions. These internal controls are updated annually and are reviewed and used by external auditors during the audit process as a framework for auditing financial transactions, cash flow, allocating resources via budgeting and to guard against potential threats such as fraud and theft.  AMAPCEO’s internal controls include:

• Purchases
• Payables
• Payments
• Financial Statements
• Revenue
• Receivables
• Invoice Batch Approvals
• IT
• Database
• Document Management
• Petty Cash
• Depreciation
• Bank Reconciliation
• G/L Posting
• Payroll & Benefit Administration

AMAPCEO has developed numerous financial policies, procedures and controls to ensure proper financial management and risk management is observed.