URBAN YOUTH WORKERS INSTITUTE
2011 Internal Monitoring Report
POLICY:
POLICY CATEGORY:
4.4 Financial Condition and Activities
Executive Limitations/Parameters
This is my monitoring report on your Executive Limitations policy Financial
Condition and Activities, presented in accordance with your monitoring schedule. I
certify that the information contained in this report is true.
CEO Signature: _____________________________________ Date: __________________
This report will monitor the above reference policy starting at its more detailed
provisions.
Policy Wording 4.4.1
The CEO shall not expend more funds than have been received in the fiscal year to
date, unless the debt guideline (to follow) is met.
CEO Interpretation: This policy is interpreted to mean that cash expenditures during
any year should be less than or equal to the amount of cash received during the year
plus cash surplus from the previous year that had been designated and set aside for
use in the pending year.
Data: UYWI cash flow has never reached zero. For the past year, it has not dipped
below the board’s minimum cash reserve requirement (20% of annual budget). The
board members will be notified when UYWI dips below the board’s minimum cash
reserve requirement. There are contingency plans and triggers set in place once the
UYWI cash reserve requirement dips to 20%-25%. UYWI does not carry any short
term or long term debt.
Therefore, I am reporting compliance.
Policy Wording 4.4.2
The CEO shall not indebt the organization in an amount greater than can be repaid
by certain, otherwise unencumbered revenues within sixty days.
CEO Interpretation: This policy is interpreted to mean that UYWI may not borrow
money from any source unless that loan can be repaid within 60 days from normal
projected receipts.
Data: UYWI has not entered into any borrowing agreements nor do they have any
previous existing debts that are unpaid.
Therefore, I am reporting compliance.
Policy Wording 4.4.3
The CEO will not use any long-term reserves.
URBAN YOUTH WORKERS INSTITUTE
2011 Internal Monitoring Report
CEO Interpretation: This policy is interpreted to mean that the balance of
permanently restricted funds will always remain invested under UYWI investment
policy and will not be expended.
Data: UYWI has no permanently restricted funds of this sort.
Therefore, I am reporting compliance.
Policy Wording 4.4.4
The CEO will not conduct interfund shifting in amounts greater than can be restored
to a condition of discrete fund balances by certain, otherwise unencumbered
revenue within thirty days.
CEO Interpretation: This policy is interpreted to mean that surplus balances in one
fund may not be shifted to another fund to cover shortfalls in the latter fund, unless
projected revenue over the next three months would allow for full repayment.
Data: UYWI does not conduct this sort of activity.
Therefore, I am reporting compliance.
Policy Wording 4.4.5
The CEO will not allow payroll and debts to be settled in an untimely manner.
CEO Interpretation: This policy is interpreted to mean that payroll and payroll taxes
should be paid promptly on a predetermined schedule. It is also interpreted to mean
that payroll taxes should be deposited within the IRS and to the States of California,
Ohio and Georgia within the allowable time periods without penalties.
Data: UYWI pays all employees on the 15th and 31st of each month or the last
working day prior to those dates. Payroll has been paid on-time each month and all
taxes deposited within 2 days after the pay date. The auditors also looked closely at
payroll and did not note any discrepancies.
Therefore, I am reporting compliance.
Policy Wording 4.4.6
The CEO will not allow tax payments or other government-ordered payments or
filings to be overdue or inaccurately filed.
CEO Interpretation: This policy is interpreted to mean that all IRS, States of
California, Ohio & Georgia tax withholdings and payments are not overdue or
inaccurately filed.
URBAN YOUTH WORKERS INSTITUTE
2011 Internal Monitoring Report
Data: All taxes withheld are deposited within two days of payroll and the quarterly
federal and state forms have all been filed on a timely basis. The Chief Financial
Officer maintains copies of all these filings which are available for review upon
request.
Therefore, I am reporting compliance.
Policy Wording 4.4.7
The CEO will not make unbudgeted purchases or commitments that collectively
total greater than 2% of current total budget.
CEO Interpretation: This policy is interpreted to mean that no purchase or
combination of purchases outside of the pre-approved budget can be made if it is
greater than 2% of the board approved general operating budget. The 2011 Budget
for UYWI is $1,300,000 (Expense) so this policy would apply to purchases of $26,000
or greater.
Data: No purchase of this amount or greater has been made during FY2009, FY2010
or FY2011YTD, either in or out of the budget.
Therefore, I am reporting compliance.
Policy Wording 4.4.8
The CEO will not acquire, encumber, or dispose of real property.
CEO Interpretation: This policy is interpreted to mean that UYWI must receive board
approval to purchase or dispose of any real estate that is part of the US or Canadian
office real estate holdings. Furthermore, it is interpreted to mean that the purchase,
sale or disposal of any UYWI-owned properties in foreign countries must receive
board approval if the aggregate or individual total exceeds $200,000 (US).
Data: No real properties of this amount or greater have been acquired or disposed
during FY2009, FY2010 or FY2011YTD.
Therefore, I am reporting compliance.
Policy Wording 4.4.9
The CEO shall not fail to diligently pursue receivables after a reasonable grace
period.
CEO Interpretation: This policy is interpreted to mean that any uncollected amounts
receivable will be pursued after a sixty day period of inactivity.
Data: UYWI has no vendor accounts receivable so there is nothing overdue. UYWI
does not consider donor pledges to be receivables so unfulfilled pledges are not
aggressively pursued.
URBAN YOUTH WORKERS INSTITUTE
2011 Internal Monitoring Report
Therefore, I am reporting compliance.
Policy Wording 4.4.10
The CEO shall not fail to have a written policy covering all purchases over $500 that
will assure prudent expenditure, adequate reporting, prevent conflicts of interest,
and have a stringent method of assuring the balance of long-term quality and cost.
CEO Interpretation: This policy is interpreted to mean that UYWI has a written policy
covering all purchases over $500 that will assure prudent expenditure, reporting,
prevent conflicts of interest and have stringent method of assuring the balance of
long term quality and cost.
Data: UYWI has a financial policy that enforces all purchases to be prudent,
reportable, prevent conflict of interest and follow strict financial & accounting internal
controls.
Therefore, I am reporting compliance.