North Pacific Yearly Meeting
Financial Procedures
Revised 6/15/2015
Financial Philosophy
NPYM intends to conduct its financial affairs in an open and transparent manner in accordance with generally accepted
accounting principles.
The Treasurer, under the oversight of the Finance & Legal Committee, has the primary responsibility for handling all cashrelated assets of the Meeting.
The Finance & Legal Committee is guided in its decisions primarily by the Investment Guidelines (see below). All cash funds
under the care of Finance Committee will be in demand deposit accounts, money market accounts, simple savings accounts or
Certificates of Deposits in FDIC-insured institutions. Funds in any one institution will be limited to a maximum of no higher
than the federal insurance maximum (currently $250,000).
Investment Guidelines
This statement defines conceptual guidelines for investing monies under the care of NPYM. Further, it outlines a philosophy
concerning fiduciary and social responsibilities. This investment philosophy may be broadly defined as "prudent investment in
the community and other socially responsible investments."
The monies invested are intended to finance NPYM activities that enrich and support the spiritual life and development of
members and attenders. Some monies are invested in funds that are designated for specific spiritual activities, these are the Youth
Opportunity Fund and the Annual Session Financial Aid Fund. The Finance & Legal Committee oversees the investment, and
allocation of these monies.
The Youth Committee authorizes the distributions of Youth Opportunity Fund. Distributions from the Annual Session Financial
Aid fund are authorized by individual meetings to cover the amount of need that they are unable to meet for their own members
to attend Annual Session. Also, a committee consisting of the Registrar, the Treasurer and the Clerk of Ministry and Oversight
authorizes the distribution of Financial Aid to Friends who do not currently have membership in one of the monthly meetings.
Each of these two funds has a principal component that is kept intact and a component for current use that includes ordinary
dividends and donations that is used for current needs. Capital gains are reinvested.
The primary objective for investing money is to preserve and support activities that are consistent with Friends' principles and
values. Once invested, the Committee seeks the preservation and growth of principle in excess of inflation. Consequently,
investments will be made in funds that demonstrate both a high value for socially responsible activities, as judged the Finance &
Legal Committee, and a high return with low to moderate risk.
The Committee will place a majority of investments (50% or more) with socially responsible money market and mutual funds.
The remaining investments will be divided between money market funds and CD's. In addition, the Committee may designate
some monies for investing in funds that are not income- or growth-driven but do represent compatible interest with NPYM—
e.g., Friends General Conference.
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Financial Procedures
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Annually, the Finance & Legal Committee will review all investments results to insure that investment goals are being achieved.
After such review, the Committee may reallocate or consolidate monies to different funds, based on performance and return. To
assist in their review, the Committee may from time to time call on the advice of professionals to assess investment timing or
options. Where possible, the Committee may seek the counsel of NPYM members or attenders for pro bono financial advising.
Deposits
Collecting and making deposits to the bank, and recording them in the bookkeeping system (currently QuickBooks) is the job of
the Treasurer. The Treasurer will stamp the back of every check in the endorsement area and make a copy of each check, will
total the amount of the deposit, then take deposit to the bank and deposit the checks and cash, if any. The copy of the checks will
be attached to the bank deposit receipt received from the bank and will be filed in the NPYM Deposits file.
Junior Friends deposit into their own account. The NPYM Treasurer has online access to view the Junior Friends accounts and
records the JF deposits in the NPYM books.
Expenses and Reimbursements
The reimbursement form is available on the website at: http://www.npym.org/NewWebsite/sites/default/files/Reim_2.pdf
Policy on reimbursement for travel is available on the website at:
http://www.npym.org/NewWebsite/sites/default/files/TravelReimbursementPolicies.pdf
The Treasurer pays the expenses of NPYM, ensuring that the expenses are authorized by the relevant committee (if needed) or
by the approved NPYM budget.
The Treasurer pays the contributions to affiliated organizations that are authorized by the NPYM budget. Currently the budgeted
donation to each affiliated organization (aside from Western Friend) increases by $10 annually.
The treasurer reviews reimbursement requests and invoices for completeness, reasonableness, and mathematical accuracy and
compares amounts with attached receipts. The treasurer determines where the expenses fit into the NPYM approved budget. If
needed, the Treasurer consults with others (committee members, NPYM Secretary) concerning the expenses before payment.
The treasurer preserves the backup documentation for all payments and files this in the NPYM Paid Bills file.
Junior Friends pay their own expenses from their accounts. The NPYM Treasurer has online access to view the Junior Friends
accounts and records the JF expenses in the NPYM books.
The report of the 2012 ad hoc Committee on Funding for Representatives to Organization's didn't specify one way or the other
whether reimbursement is available for activities beyond attendance at annual meetings, such as visits to local meetings.
However, the Finance & Legal Committee agreed that the treasurer may reimburse from the reps to orgs funding pool for a
reasonable level of expenses for activities within their job descriptions.
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Financial Procedures
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Transfers
The Treasurer transfers money between funds as authorized by the approved NPYM budget or Finance Committee. For example,
each year money is transferred from the General Fund to the Junior Friends Operating Fund, Youth Opportunity Fund and
FWCC World Plenary (formerly Triennial) Fund. Each year the Finance Committee and Treasurer determine the transfer needed
from the profit or loss from Annual Session.
Dedicated funds
NPYM currently maintains the following board-designated (temporarily restricted) funds:

Youth Opportunity Fund Operating

Annual Session Financial Aid Operating

Annual Session Reserve

Junior Friends Operating

FWCC World Plenary (formerly Triennial) Fund

OKIO Credit
NPYM currently maintains the following donor-designated (permanently restricted [TO BE CONFIRMED]) funds:

Youth Opportunity Fund Principal

Annual Session Financial Aid Principal

Junior Friends Service Project

Quaker Traveling Fund
Bank and Investment Accounts
NPYM has checking and savings accounts at:

OnPoint Community Credit Union

Wells Fargo (Junior Friends)
Investment accounts at:

Pax World Funds

Oiko Credit
Bookkeeping Procedures
NPYM contracts with a professional bookkeeper:
Phyllis Shelton
The Bookkeeping Collaborative
1002 SE 50th Ave
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Portland OR 97215
503-704-6298
phyllisshelton@cs.com
Weekly or as needed, all cash and checks are recorded and deposited at NPYM’s bank by the Treasurer.
Monthly all financial transactions from all cash accounts are entered into Quickbooks by the Treasurer. As needed the Treasurer
will gather information from Junior Friends or their advisors concerning the transactions in the Junior Friends accounts and enter
this information into Quickbooks. Quarterly Pax World statements are received and the Treasurer updates QuickBooks with the
information on the current market value of Pax World accounts.
Each month the Treasurer sends the Quickbooks file to the Bookkeeper who adds payroll data and reconciles the bank accounts.
The clerk of Finance & Legal or their designee will review the monthly bank reconciliation reports, balance sheet and to date
statement of income and expenses.
Payroll Procedures
NPYM has two part-time employees, the NPYM Secretary and the Annual Session Children’s Program Coordinator.
The NPYM Secretary submits a timesheet and expenses to the Associate Clerk of Coordinating Committee, who is the member
of the Executive Committee designated to supervise the Secretary. The Childrens’s Program Coordinator submits a timesheet
and expenses to the Clerk of the Youth Committee, who is designated to supervise the Children’s Program Coordinator.
Timesheets are due on the second of each month.
After approval, the Bookkeeper processes the payroll through Quickbooks and sends the treasurer a report. Payroll funds are
transferred directly from the NPYM bank account, whereas the Treasurer pays the expenses with a check.
Annual Session Procedures
The treasurer accounts for the money received for Annual Session and assists the Registrar as needed. The Treasurer accounts
for the money paid into the NPYM Paypal account and transfers it to the NPYM checking account after Annual Session.
Insurance
The NPYM secretary is the internal contact to our insurance carrier, Church Mutual. Most contacts are for insurance verification
for Friends events, such as Quarterly Meetings, Junior Friends gatherings, etc. The hosting site usually requires an insurance
certificate. Our church mutual contact is:
Molly C Wilson, CIC, LUTCF
Regional Representative
Church Mutual Insurance Company
Phone: (800) 554-2642, Option 1 for Customer Service
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Toll-Free Fax: (855) 264-2329
MWilson@churchmutual.com
Reserves
Per Finance & Legal Committee policy, NPYM seeks to maintain a general fund reserve of at least 25% of budgeted expenses.
Annual Review of Financial Records and Procedures
The purpose of the annual review is to provide NPYM with an informal internal audit of all income and expenses, as well as the
records of the dedicated funds held in the yearly meeting’s name. This review is to cover the past fiscal year and the time period
up to the month prior to the audit. A written report will be presented to the Finance & Legal Committee. Any discrepancies or
problems will be noted, along with recommendations for changes or improvements.
The financial review team will consist of two members or attenders of an NPYM MM/WG with at least some experience with
financial management and bookkeeping practices. It will be appointed by the Finance & Legal Committee.
The review team will meet with the clerk of the Finance & Legal Committee and the Treasurer to review written and oral
procedures including but not limited to:

written procedures for handling cash and checks (collection, deposit, and record keeping) received from individuals and
meetings

written procedures for writing checks and transferring money between accounts.

division of duties among the treasurer, assistant treasurer, bookkeeper and finance committee.

monthly and quarterly reports

Random selection of at least 30 checks and invoices or reimbursement requests for amounts over $100.00. (Match
invoices or reimbursement requests with checks; verify: timeliness of payments, authorization, receipts and other
documentation.) These checks can be reviewed from the monthly bank statements and/or from the electronic records
from the bank.

All bank statements and reconciliations. (The reviewers will ascertain the banks’ balances via direct communication or
computer access to the respective bank accounts.)

The timely filing and accurate payment of all payroll taxes (Form 941, quarterly reports, state and federal taxes)

Random selection and verification of monthly time sheets, matched to payroll payments

Bank signature cards

Filing system for financial records

Current version of the Financial Procedures (this document)
The reviewing team will prepare a written report using the attached template (see appendix).
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Website
Relevant financial policies, forms, and reports are posted on the NPYM website at http://npym.org/Structure/treasurers-page and
http://npym.org/Structure/policies and bylaws.
Current versions of the job descriptions for the Finance & Legal Committee and the Treasurer are available on the NPYM
website at http://npym.org/Structure/job-descriptions.
Annual Assessments
The assessments invoice is based on the number of members on the meeting's most recent statistical report. The statistical reports
are solicited by and submitted to the NPYM Secretary in the spring. If a meeting doesn't submit a report, then the previous year's
number is used. Regardless, the meeting is free to decide for itself how many members to pay for.
Here is the language from the NPYM bylaws:
"Assessments shall be solicited from the Monthly Meetings based upon the number of adults listed in each Meeting's Statistical
Report of June 1, for whom it will contribute an annual assessment. Each Meeting may decide for how many of its adult
members and active attenders it wishes to contribute to the annual assessment. Contributions and assessments to the Yearly
Meeting made by Preparative Meetings and Worship Groups should be sent to their parent Monthly Meetings or may be
forwarded directly to the Treasurer of the Yearly Meeting."
For reference, the PNQM handbook notes that it is one of the QM treasurer's responsibilities to:
"Notify Monthly and Preparative Meetings and Worship Groups, by the time of the Spring PNQM session, of the rate (currently
$2.50 per active adult participant) and due date (normally May 31) of their annual assessments for support of Quarterly
Meeting."
Similarly, the WQM handbook notes that the treasurer:
“Sends a timely reminder to Meetings that the annual assessment of $5.00 per recorded member is due in January.”
According to Cathy Weber:
“MGOF doesn’t request a regular assessment as long as their coffers are in good shape. Folks are pretty good about giving
without being asked. Everyone paid in this last go-around.” The 2014 appeal letter suggested a donation of $20-50 per person
“or whatever level you can afford.”
Legal Advice
Dan Clark of Walla Walla Preparative Meeting serves as the yearly meeting’s pro bono legal counsel.
717 Main St.
Walla Walla, WA 99362
509-522-0399
clarkdb@charter.net
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NPYM Financial Records Retention
Record
Citation
Recommendation
Application for recognition of Permanently
IRS Publication
Archivist
tax-exempt status
4221 PC 7-2014
Determination letter
Retention Duration
Permanently
recognizing tax-exempt status
Maintain records in written
IRS Publication
4221 PC 7-2014
Available for inspection
ORS 65.771
form
Minutes of all meetings of
Archivist
Need to learn if electronic
copies are acceptable
Available for inspection
Electronic copies on file with
members and records of all
Treasurer
actions approved by the
members for the last three
years
A corporation shall maintain
Available for inspection
ORS 65.771
appropriate accounting
QuickBooks and QB reports
meet FASB standards
records
Financial statements
3-years
ORS 65.771
QB reports
Employment tax records
4 years after the tax is due or paid,
IRS Publication
?As received from bookkeeper?
whichever is later
4221 PC 7-2014
Transaction documentation
3-years after the annual
IRS Publication
Paper documentation on file
including income, expense,
information return (Form 990
4221 PC 7-2014
with Treasurer
payroll expenses organized
series) is due or filed
by year and type
Annual Calendar
January
Finance & legal Committee meets by telephone conference call to review Q1 financial reports.
F&L finds audit review team
Treasurer contacts clerks of standing committees to begin gathering budget requests for next fiscal year.
Treasurer files and pays Federal and State payroll tax reports for the fourth quarter by January 30.
Treasurer works with Bookkeeper to make sure 1099 forms and W-2 forms are issued.
February
March
Treasurer prepares draft budget.
Finance & Legal Committee meets by telephone conference call to review draft budget.
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April
Coordinating Committee meets: Treasurer presents Q2 financial reports; treasurer presents draft budget for next fiscal year; clerk
of F&L presents written and/or oral report.
Treasurer files and pays Federal and State payroll tax reports for the first quarter by April 30.
Treasurer invoices second half of annual assessments to Monthly Meetings.
May
Treasurer enters check data into Annual Session on-line registration database.
June
Finance & Legal Committee meets by telephone conference call to finalize draft budget.
Treasurer submits draft budget to Presiding Clerk for documents in advance.
July
Annual Session: Treasurer presents Q3 financial reports to coordinating committee and the prior year financial statements to
Annual Session; clerk of F&L presents draft budget for approval. Treasurer pays Annual Session expenses to Friend in
Residence, Children’s Program clerk and others as needed during Annual Session.
Treasurer files and pays second quarter Federal and State payroll tax reports by July 30.
August
Treasurer gathers receipts, pays reimbursements, etc. from Annual Session
September
Fiscal year ends on September 30.
October
Fiscal year begins on October 1.
Treasurer sends assessments invoices to Monthly Meetings for first half of their assessment.
Treasurer makes transfers and pays contributions to Quaker organizations as authorized in the NPYM approved budget.
Treasurer files and pays third quarter Federal and State payroll tax reports by October 30.
November
Finance & Legal Committee meets by conference call to review the year-end financial reports.
Coordinating Committee meets: Treasurer presents the year-end financial report; clerk of F&L presents written and/or oral
report.
December
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Appendices
Annual Review Report
To:
NPYM Finance & Legal Committee
Subject:
Report of the Annual Review of Finances
Date:
_____________________
Names of Reviewers: ___________________________________________________________
____________________________________________________________
On mm/dd/yy, the we met with the Clerk of the Finance & Legal Committee and/or the Treasurer to examine the financial
records and accounting procedures of North Pacific Yearly Meeting.
We examined the following:
We noted the following exceptions:
We have the following recommendations:
In Summary:
Signed:
_________________________________________________
_________________________________________________
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