Financial Policy 12: Planning and Budgeting
12.1 Definition and Scope
ASEE annually determines the cost of its major activities and assigns overhead expenses to each activity's direct cost. The personnel time, income, and expenses in each activity area are isolated and identified.
12.2 Unrestricted Operating Budget
The unrestricted operating budget of ASEE consists of all accounts which are not restricted by external contract, grant, or contribution.
12.3 Restricted Operating Budget
The Restricted Operating Budget of ASEE shall consist of externally funded grant and contract funds and award or other endowment investments.
12.4 Surplus Fund Balances
A. Any unrestricted operating surplus remaining at the end of the fiscal year shall remain part of the general assets of ASEE and shall be managed by the Executive Director with the advice and consent of the Finance Committee.
B. Any restricted operating surplus must be handled pursuant to the original agreement, that may state that any balance must be refunded, reinvested, or become part of the general unrestricted assets of ASEE.
C. In the absence of any agreement or legal statute to the contrary, the Finance Committee may elect to place the unused balance of any previously restricted fund into the general unrestricted assets of ASEE, or designate that the funds be used for purposes congruent with those for which it was originally intended.
12.5 Budget Development Process and Schedule
A. During the month of October, prior to the fiscal year being planned, a call for input to the business plan and budget shall be issued to members of the Board of Directors, appropriate Field Unit Chairs, and members of the Headquarters senior staff.They will then prepare a detailed forecast of income and expenses for approved and planned activities for which the person has responsibility for the forthcoming fiscal year.
B. These submissions are consolidated at each successive level of responsibility up to the Executive Committee members, who forward their recommendations to the Executive Director for compilation by the first week of December.
C. These recommendations are prepared in budget format in time for review and action by the Finance Committee at its January meeting.At this meeting, modifications may be required to conform to the financial policies set forth in this manual and finalize the proposed budget for presentation to the Executive Committee at its next meeting.
12.6 Unbudgeted Expenditures
To give the Executive Director the flexibility to seize unforeseen opportunities or respond to unforseen expenditures, the total operating expenses may exceed the budget by up to 5% without approval of the Finance Committee.
12.7 Budget Amendments
A. Should the situation arise that the budget established for a particular fiscal year needs to be altered, the Board of Directors can amend the budget at any time or enact a contingency plan to protect the finances of ASEE. This situation could occur, for example, if there were a severe economic downturn.The Board of Directors may also authorize an overrun in a particular expense area in order to accomplish or extend the purposes of that activity.
B. Occasionally, one-time items of expense, unknown at the time of budget approval, may arise.To forego bringing these items to the Board of Directors, the item may be funded from a special "Contingency" budget. Funds can be used from this account only after the approval of the President, President-Elect, and Executive Director.
12.8 Limits and Controls
A. A financial summary shall be issued on a regular basis by the Headquarters staff and distributed to the Board of Directors.
B. If a volunteer officer projects a budget overrun for the year, the responsible Board member should be notified immediately.The volunteer officer may approve additional expenditures from other accounts his/her area of control.If the volunteer officer determines that this overrun will cause the unit to exceed its annual budget, he/she can either disapprove further expense reimbursements or request the Executive Committee and Board of Directors for permission to overrun the budget.
12.9 Chart of Accounts
To record properly the sources and application of ASEE funds, a Chart of Accounts reflecting all income and expense areas shall be established and maintained by the Executive Director.The Chart of Accounts shall also classify asset and liability accounts, and the various categories of restricted and unrestricted accounts for financial reporting purposes.
Financial Policy 13: Accounting and Reporting
13.1 Responsibilities
A. The accounting function is accomplished at ASEE Headquarters under the direction of the Executive Director.The Executive Director may delegate responsibility, but not accountability, for this function to the Business Manager or similar staff position.
B. The accounting function maintains records in conjunction with an approved Chart of Accounts.A report is prepared and distributed to the members of the Finance Committee at the end of each month and also distributed to the Board of Directors in preparation for each meeting.Such reports normally carry appended comments to explain significant areas of difference between actual and budget amounts (either income or expense), as well as approved expenditures from contingency funds.
13.2 Method of Accounting
A. The books of account and financial information of ASEE are maintained by the Headquarters staff under the direction of the Executive Director.
B. ASEE uses the fund accounting approach, through which ASEE funds are established for a variety of purposes and with a variety of designations.
C. Under ASEE's Purchase Authorization System, funds are "encumbered" when ASEE enters into a commitment.Encumbered funds must be available within an appropriate budget category prior to making a commitment.
D. Dues earnings are accrued monthly at the rate of 1/12 of the annual amount.For any dues that are paid late, ASEE will accrue all of the delayed earnings during the month of payment.
E. Non-Dues earnings are accrued when ASEE generates an invoice, confirming that the commitment to purchase is made.All commitments are presumed collectible.
13.3 Standard Reports and Schedule
A. The records and report formats must conform to the stated needs and requirements of the government agencies and services having an authorized interest, the auditors retained by ASEE, and the general principles and practices of sound management.
B. Financial reporting shall include the following:
1. Comparative Balance Sheet - reflecting assets, liabilities and fund balance
2. Comparative Operating Statement - reflecting income, direct expense, indirect expense and net activity for each functional area
3. Detailed Functional Statement - reflecting full detail of income and direct expense for each functional area, with indirect expenses applied
4. Indirect Expense Statement - reflecting full detail of all indirect expenses
5. Officers, Directors, and Committees Expense Statement - reflecting full
detail for each volunteer leader, director and committee.
C. The financial statement, supplemented by the Executive Director's analysis and comments regarding performance to date and trends, shall be submitted to the Finance Committee.
D. A financial status report and year-end report shall be presented by the President-Elect to the Board of Directors at the Annual Conference.A year-end report shallbe included in the Annual Report printed in an ASEE publication.
E. Other reports dealing with financial matters shall be prepared from time to time by the Executive Director as the need arises or as directed by the President, the Finance Committee, the Executive Committee, or the Board of Directors. Examples of ongoing types of reporting follow.
1. Annual Tax Returns
It is a requirement of the United States government that all financial activities of ASEE be reported annually.Each year, ASEE files the necessary tax returns to maintain its tax exempt status, along with the necessary tax returns to report all unrelated business income.
2. Contract and Grant Reports
ASEE accepts contracts and grants from government agencies to develop or produce professional material or conduct professional activities that relate directly to engineering education.Each contract or grant has its own specific types of reports, both technical and financial, which must be submitted to the contracting officer on a timely basis.
F. Reports summarizing certain areas of activities are routinely prepared and distributed at the request of the Board of Directors.
G. Reports reflecting conference and seminar attendance, financial and programmatic outcomes shall be prepared after each event and reviewed by the Annual Conference Committee, Finance Committee, and the Board of Directors.The reports and review process shall be designed to gauge performance and assist the planning of future events.
H. An investment performance report shall be prepared on a regular basis and serves to report the long- and short-term investment holdings of ASEE.This report shall be sent to the Finance Committee prior to its scheduled meetings.The minutes of each Finance Committee meeting shall be presented to the Executive Committee and the Board of Directors, who review the proceedings and act upon any recommendations.
Financial Policy 14: Safeguards and Controls
14.1 Competitive Procurement
At least three bids from separate vendors shall be secured for all purchase in excess of $10,000.
To ensure that ASEE is not conducting business with vendors that have been debarred or suspended by the Federal government ASEE requires vendors to certify in writing that they have not been debarred or suspended by the Federal government. ASEE will further ensure this by checking the web site http://epls.gov where debarred or suspended vendors are listed.
14.2 Commitment of ASEE Funds
A. The Executive Director is authorized to commit budgeted ASEE funds and may delegate this authorization as appropriate.
B. The ultimate financial obligation of any unit activity rests with ASEE. ASEE will not be responsible for financial obligations to which it has not given prior approval. ASEE units should notify the Board of Directors before any commitments are made that imply financial responsibility and potential risk to ASEE.
C. In view of the ultimate responsibility of ASEE for the financial obligations of its units, all such arrangements should be brought to the attention of the Executive Director before being consummated by any unit of ASEE.
14.3 Authorized Signature
A. Checks may be drawn on the ASEE operating cash account bearing one authorized signature.
The following shall be authorized to sign checks:
1. Executive Director
2. Assistant to the Executive Director
3. Deputy Executive Director
In addition, one additional member of the senior management staff may be authorized by the Executive Director to sign checks as back-up to the three primary signatories. The manager of Meetings and Conferences can, at the discretion of the Executive Director, sign checks drawn on an account established at the site of ASEE's Annual Conference.
B. The Executive Director, or designee, is authorized to disburse ASEE funds through the use of a facsimile check-signing machine. Checks greater than $10,000 must be signed by two of the four people authorized.
14.4 Annual Audit of Financial Records
A. It is ASEE policy to retain a professional firm of certified public accountants to examine the annual financial statement and perform an annual audit of ASEE's financial records.Included in the scope of this activity is the examination of financial procedures and safeguards and the submission of appropriate recommendations in the form of a management letter. The auditor may also be requested to provide counsel on special matters that may arise from time to time.
B. The Executive Director shall arrange for an annual external audit of ASEE financial records. The audit should begin as soon as possible after the closing of the previous fiscal year and conclude with a written report to the Finance Committee on the financial condition of ASEE.
C. The Executive Director shall select the ASEE Auditor, subject to the approval by the Executive Committee of the Board of Directors.
14.5 Annual Conference Financial Transactions
The receipt and disbursement of funds for the Annual Conference shall be handled through ASEE Headquarters.
Financial Policy 15: Risk Management
15.1 Indemnification
The Indemnification policy of ASEE is cited in Article VII, Sections 10 and 11 of the ASEE Bylaws as follows:
Section 10. Each member of the Board, including each member of the Finance Committee of the Society, shall be indemnified by said Society against reasonable expenses actually and necessarily incurred by the member in connection with the defense of any action, suit, or proceeding in which the person is made a party by reason of being or having been a member of the Board or as a member of the Finance Committee except in relation to matters as to which the person shall be adjudged in such action, suit, or proceeding to be liable fornegligence, misfeasance, or misconduct in the performance of his or her duties as director or a member of the Finance Committee; such right of indemnification shall not be deemed exclusive of any other right to which the person may be entitled.
Section 11. No member of the Board or of the Finance Committee shall be liable either jointly or severally to the Society for any loss suffered by the Society as a result of any action of the Board or action of the Finance Committee or any of its members except in relation to matters as to which such members shall be adjudged in any action, suit, or proceeding to be liable for negligence, misfeasance, or misconduct in the performance of their duties as such member.
15.2 Insurance
A. ASEE shall maintain insurance up to limits established by the Finance Committee at expense, to support the indemnification of the previous section.
B. The Executive Director shall be responsible for arranging and maintaining such insurance in accordance with the laws of the Commonwealth of Pennsylvania or the District of Columbia, whichever holds jurisdiction.
Financial Policy 16: Conflict of Interest
16.1 General Policy
A. Conflict of interest is defined as any situation in which an individual's decisions, actions, or votes could materially affect that individual's financial, business, or professional interests.It is the responsibility of all ASEE staff, members, and officers to consider each item of business where they have a vote, action, responsibility, or decision authority to determine if a conflict of interest, or the appearance of such conflict of interest, may exist.Any such recognized potential conflict shall be made known immediately to the person in charge of the activity (or the next higher authority if that individual is in charge), who, after consultation with the Executive Director, will advise the member of the proper course of action and cause a notation of the action to be entered in the activity's record.
B. In the case of a director or other principle of the organization, a fulldisclosure of any actual or apparent conflict of interest will be made generally known, and the individual concerned will be recused from all involvement in the matter (which means that the individual will not be present when discussions of the subject are held, votes are cast, or business decisions are made).
16.2 Suppliers Holding Membership
Any individual member or representative or employee of an institutional member of ASEE who is a supplier or potential supplier of goods or services to ASEE is in a position of potential conflict of interest with respect to the provision of such goods or services.
Financial Policy 17: Travel Expenses
17.1 General Policy and Requirements for Reimbursement
A. As a professional society, the basic tenet of ASEE is that the members who participate in various activities will do so voluntarily as part of their professional growth and to contribute to the advancement of engineering education through the work of ASEE.It is expected that employers of ASEE members will participate in the growth of their employees.However, it is recognized that not all employers are so willing.Individuals may be unable to defray the total expenses for work related to the organization.Therefore, when no other source of funds is available, ASEE will accept an authorized claim for reimbursement. An exception to this is the Annual Conference, for which no reimbursement of expenses will be provided.
B. No expenses for travel will be reimbursed unless a pre-approved Travel Authorization (see 18.1 for sample Volunteer Travel Authorization Form) is issued by the ASEE Meetings and Conferences Department for that travel.
C. In order to optimize the use of ASEE funds, the Executive Director may establish an account with a travel agency to assist ASEE officers in arranging transportation and lodging for authorized travel.The use of the official travel agency is required for all ASEE related travel except when the Executive Director or the President determines that there is a financial advantage to ASEE to do otherwise.Failure to adhere to this policy will result in denial of a claim for reimbursement from ASEE.
D. ASEE will only reimburse the expenses of officers, directors, and staff when incurred on pre-approved official ASEE business.Other activities eligible for reimbursement must be authorized by the Finance Committee, Executive Committee, or the Board of Directors.The Executive Director is responsible for approving claims for reimbursement.The Board of Directors intends that judgment and discretion be used in approving any exception to general policy.
E. ASEE does not reimburse for the expenses of spouses who accompany volunteer officers on trips.Any exception must be pre-approved by the Board of Directors under special circumstances when a spouse or guest will necessarily and appropriately aid in serving as official host or hostess.
F. Where possible, the expenses of a volunteer leader or Headquarters staff member visiting the Section should be partially or fully funded by the Section.When volunteer leaders and/or key staff members attend section or Division conferences, their registration fee should be absorbed or paid for by the conference.
17.2 Air Travel
A. Coach class commercial air transportation will be reimbursed only when travel by a discount class is not available or would impose undue hardship on the traveler. In the case where the traveler elects to fly coach or a more premium class, ASEE will reimburse only that portion of the cost comparable to the lowest available discount fare.
B. Where the traveler elects and is pre-approved to use a private automobile to make airline connections, ASEE will reimburse both the mileage and the airport parking during the trip.
C. Travel insurance will not be reimbursed.
17.3 Automobile Travel
A. When travel by private automobile is elected and pre-approved, reimbursement will be made at the rate authorized by the I.R.S., not to exceed the cost of the most economical class commercial air transportation reasonably available.The approved mileage rate is all inclusive.No additional claims will be honored for tolls, parking fees, en route meals, or lodging, or other expenses incident to automobile travel which would not have been incurred if the trip had been by air or other public carrier.
B. Reimbursement for cost of a rental automobile will only be made in those pre-approved cases justified by the nature of the business of the traveler at the destination, or where other means of reaching the ultimate destination are not feasible.
17.4 Out-of-Pocket and Other Expenses
A. Payment of a fixed daily allowance for lodging, meals, incidental expenses (including local transportation), and gratuities shall be made according to a per diem rate for the locality.The Executive Director shall develop and maintain a locality-based per diem rate structure.This structure must be approved by the Finance Committee and should be based on relevant IRS allowances.
B. Registration fees, if pre-approved, will be separately reimbursed upon itemization.C. ASEE does not pay for entertainment expenses (e.g., theater tickets, cocktails, reading matter) or for expenses normally incurred in one's home location (such as valet services and laundry) unless the trip is seven consecutive days or more.
D. Long distance telephone calls should be billed to home or hotel room and circled on the statement submitted.If reimbursement by ASEE is expected, the party called and the ASEE-related purpose of the call should be specified.
E. Rental of formal clothing may be claimed provided such rental was pre-approved as necessary to fulfill an approved function as ASEE representative.
17.5 Board of Directors Travel
A. The Board of Directors will budget for and reimburse its members for related and reasonable travel expenses incurred when attending Board and Executive Committee meetings, except for the Board meetings held at the Annual Conference, the expenses of which are part of the commitment made when accepting a Board position.
B. When attending conferences other than the Annual Conference at which a Board of Directors meeting is being held, members of the Board of Directors will be reimbursed for their air travel and expenses for the period of the Board meeting only.Conference registration and expenses relating to staying beyond the actual days of the Board of Directors meeting will not be reimbursed.
C. Board members who have exhausted all other sources of financial support to attend Board meetings at the Annual Conference can be reimbursed by submitting a request letter to the Vice President for Finance for approval prior to the meeting. Reimbursement will follow current travel policies.
D. With the prior authorization by the President described in Section 17.1.B above, ASEE may reimburse expenses for persons not members of the Board, who, by virtue of their association with a related organization or special expertise, have been invited or requested to participate in a Board meeting, planning session or other formal Board function.Such compensation must come from funds allocated in the budget for such purpose.
E. On occasions such as Board meetings, when expenses such as meal functions are billed directly to Headquarters on a master bill, individuals responsible for ASEE units will be advised as to the amount charged to their accounts.
17.6 Personal/Employer Travel Incentive Benefits
It is incumbent on all ASEE Officers to schedule meetings as far in advance as possible and for all members to arrange their travel in a manner most economical to ASEE, taking advantage of all available discount fares and without regard to personal and/or employer travel incentive benefits.
17.7 Reimbursement
A. A Request for Reimbursement of Travel Expenses Form (see 18.2 for sample) shall be submitted to the individuals who signed the relevant Volunteer Travel Authorization Form and then to the Executive Director within 30 days after travel has been completed.In the event of extenuating circumstances, a 30 day extension can be authorized by the Executive Director.All disbursements must be accounted for in the fiscal year in which they are incurred.A copy of the form should be retained by the individual submitting for reimbursement.
B. A check for reimbursement of travel expenses shall be drafted and mailed within 30 days of receipt of an approved reimbursement form by Headquarters.
C. Expenses are to be carried by the individual and not charged to his/her firm for subsequent billing to ASEE.
D. Exceptions can be made to ASEE travel policies by submitting a written request, in advance of the expenditure, to the Vice President, Finance outlining the requested exception.The Vice President, Finance has the authority to approve exceptions for all reporting areas, except his/her own.An exception for the Vice President, Finance, must be approved by the President.Approval must be in advance and in writing and must state the budget or BASS account to which charges would be applied.
Financial Policy 12: Planning and Budgeting
12.1 Definition and Scope
ASEE annually determines the cost of its major activities and assigns overhead expenses to each activity's direct cost. The personnel time, income, and expenses in each activity area are isolated and identified.
12.2 Unrestricted Operating Budget
The unrestricted operating budget of ASEE consists of all accounts which are not restricted by external contract, grant, or contribution.
12.3 Restricted Operating Budget
The Restricted Operating Budget of ASEE shall consist of externally funded grant and contract funds and award or other endowment investments.
12.4 Surplus Fund Balances
A. Any unrestricted operating surplus remaining at the end of the fiscal year shall remain part of the general assets of ASEE and shall be managed by the Executive Director with the advice and consent of the Finance Committee.
B. Any restricted operating surplus must be handled pursuant to the original agreement, that may state that any balance must be refunded, reinvested, or become part of the general unrestricted assets of ASEE.
C. In the absence of any agreement or legal statute to the contrary, the Finance Committee may elect to place the unused balance of any previously restricted fund into the general unrestricted assets of ASEE, or designate that the funds be used for purposes congruent with those for which it was originally intended.
12.5 Budget Development Process and Schedule
A. During the month of October, prior to the fiscal year being planned, a call for input to the business plan and budget shall be issued to members of the Board of Directors, appropriate Field Unit Chairs, and members of the Headquarters senior staff.They will then prepare a detailed forecast of income and expenses for approved and planned activities for which the person has responsibility for the forthcoming fiscal year.
B. These submissions are consolidated at each successive level of responsibility up to the Executive Committee members, who forward their recommendations to the Executive Director for compilation by the first week of December.
C. These recommendations are prepared in budget format in time for review and action by the Finance Committee at its January meeting.At this meeting, modifications may be required to conform to the financial policies set forth in this manual and finalize the proposed budget for presentation to the Executive Committee at its next meeting.
12.6 Unbudgeted Expenditures
To give the Executive Director the flexibility to seize unforeseen opportunities or respond to unforseen expenditures, the total operating expenses may exceed the budget by up to 5% without approval of the Finance Committee.
12.7 Budget Amendments
A. Should the situation arise that the budget established for a particular fiscal year needs to be altered, the Board of Directors can amend the budget at any time or enact a contingency plan to protect the finances of ASEE. This situation could occur, for example, if there were a severe economic downturn.The Board of Directors may also authorize an overrun in a particular expense area in order to accomplish or extend the purposes of that activity.
B. Occasionally, one-time items of expense, unknown at the time of budget approval, may arise.To forego bringing these items to the Board of Directors, the item may be funded from a special "Contingency" budget. Funds can be used from this account only after the approval of the President, President-Elect, and Executive Director.
12.8 Limits and Controls
A. A financial summary shall be issued on a regular basis by the Headquarters staff and distributed to the Board of Directors.
B. If a volunteer officer projects a budget overrun for the year, the responsible Board member should be notified immediately.The volunteer officer may approve additional expenditures from other accounts his/her area of control.If the volunteer officer determines that this overrun will cause the unit to exceed its annual budget, he/she can either disapprove further expense reimbursements or request the Executive Committee and Board of Directors for permission to overrun the budget.
12.9 Chart of Accounts
To record properly the sources and application of ASEE funds, a Chart of Accounts reflecting all income and expense areas shall be established and maintained by the Executive Director.The Chart of Accounts shall also classify asset and liability accounts, and the various categories of restricted and unrestricted accounts for financial reporting purposes.
Financial Policy 13: Accounting and Reporting
13.1 Responsibilities
A. The accounting function is accomplished at ASEE Headquarters under the direction of the Executive Director.The Executive Director may delegate responsibility, but not accountability, for this function to the Business Manager or similar staff position.
B. The accounting function maintains records in conjunction with an approved Chart of Accounts.A report is prepared and distributed to the members of the Finance Committee at the end of each month and also distributed to the Board of Directors in preparation for each meeting.Such reports normally carry appended comments to explain significant areas of difference between actual and budget amounts (either income or expense), as well as approved expenditures from contingency funds.
13.2 Method of Accounting
A. The books of account and financial information of ASEE are maintained by the Headquarters staff under the direction of the Executive Director.
B. ASEE uses the fund accounting approach, through which ASEE funds are established for a variety of purposes and with a variety of designations.
C. Under ASEE's Purchase Authorization System, funds are "encumbered" when ASEE enters into a commitment.Encumbered funds must be available within an appropriate budget category prior to making a commitment.
D. Dues earnings are accrued monthly at the rate of 1/12 of the annual amount.For any dues that are paid late, ASEE will accrue all of the delayed earnings during the month of payment.
E. Non-Dues earnings are accrued when ASEE generates an invoice, confirming that the commitment to purchase is made.All commitments are presumed collectible.
13.3 Standard Reports and Schedule
A. The records and report formats must conform to the stated needs and requirements of the government agencies and services having an authorized interest, the auditors retained by ASEE, and the general principles and practices of sound management.
B. Financial reporting shall include the following:
1. Comparative Balance Sheet - reflecting assets, liabilities and fund balance
2. Comparative Operating Statement - reflecting income, direct expense, indirect expense and net activity for each functional area
3. Detailed Functional Statement - reflecting full detail of income and direct expense for each functional area, with indirect expenses applied
4. Indirect Expense Statement - reflecting full detail of all indirect expenses
5. Officers, Directors, and Committees Expense Statement - reflecting full
detail for each volunteer leader, director and committee.
C. The financial statement, supplemented by the Executive Director's analysis and comments regarding performance to date and trends, shall be submitted to the Finance Committee.
D. A financial status report and year-end report shall be presented by the President-Elect to the Board of Directors at the Annual Conference.A year-end report shallbe included in the Annual Report printed in an ASEE publication.
E. Other reports dealing with financial matters shall be prepared from time to time by the Executive Director as the need arises or as directed by the President, the Finance Committee, the Executive Committee, or the Board of Directors. Examples of ongoing types of reporting follow.
1. Annual Tax Returns
It is a requirement of the United States government that all financial activities of ASEE be reported annually.Each year, ASEE files the necessary tax returns to maintain its tax exempt status, along with the necessary tax returns to report all unrelated business income.
2. Contract and Grant Reports
ASEE accepts contracts and grants from government agencies to develop or produce professional material or conduct professional activities that relate directly to engineering education.Each contract or grant has its own specific types of reports, both technical and financial, which must be submitted to the contracting officer on a timely basis.
F. Reports summarizing certain areas of activities are routinely prepared and distributed at the request of the Board of Directors.
G. Reports reflecting conference and seminar attendance, financial and programmatic outcomes shall be prepared after each event and reviewed by the Annual Conference Committee, Finance Committee, and the Board of Directors.The reports and review process shall be designed to gauge performance and assist the planning of future events.
H. An investment performance report shall be prepared on a regular basis and serves to report the long- and short-term investment holdings of ASEE.This report shall be sent to the Finance Committee prior to its scheduled meetings.The minutes of each Finance Committee meeting shall be presented to the Executive Committee and the Board of Directors, who review the proceedings and act upon any recommendations.
Financial Policy 14: Safeguards and Controls
14.1 Competitive Procurement
At least three bids from separate vendors shall be secured for all purchase in excess of $10,000.
To ensure that ASEE is not conducting business with vendors that have been debarred or suspended by the Federal government ASEE requires vendors to certify in writing that they have not been debarred or suspended by the Federal government. ASEE will further ensure this by checking the web site http://epls.gov where debarred or suspended vendors are listed.
14.2 Commitment of ASEE Funds
A. The Executive Director is authorized to commit budgeted ASEE funds and may delegate this authorization as appropriate.
B. The ultimate financial obligation of any unit activity rests with ASEE. ASEE will not be responsible for financial obligations to which it has not given prior approval. ASEE units should notify the Board of Directors before any commitments are made that imply financial responsibility and potential risk to ASEE.
C. In view of the ultimate responsibility of ASEE for the financial obligations of its units, all such arrangements should be brought to the attention of the Executive Director before being consummated by any unit of ASEE.
14.3 Authorized Signature
A. Checks may be drawn on the ASEE operating cash account bearing one authorized signature.
The following shall be authorized to sign checks:
1. Executive Director
2. Assistant to the Executive Director
3. Deputy Executive Director
In addition, one additional member of the senior management staff may be authorized by the Executive Director to sign checks as back-up to the three primary signatories. The manager of Meetings and Conferences can, at the discretion of the Executive Director, sign checks drawn on an account established at the site of ASEE's Annual Conference.
B. The Executive Director, or designee, is authorized to disburse ASEE funds through the use of a facsimile check-signing machine. Checks greater than $10,000 must be signed by two of the four people authorized.
14.4 Annual Audit of Financial Records
A. It is ASEE policy to retain a professional firm of certified public accountants to examine the annual financial statement and perform an annual audit of ASEE's financial records.Included in the scope of this activity is the examination of financial procedures and safeguards and the submission of appropriate recommendations in the form of a management letter. The auditor may also be requested to provide counsel on special matters that may arise from time to time.
B. The Executive Director shall arrange for an annual external audit of ASEE financial records. The audit should begin as soon as possible after the closing of the previous fiscal year and conclude with a written report to the Finance Committee on the financial condition of ASEE.
C. The Executive Director shall select the ASEE Auditor, subject to the approval by the Executive Committee of the Board of Directors.
14.5 Annual Conference Financial Transactions
The receipt and disbursement of funds for the Annual Conference shall be handled through ASEE Headquarters.
Financial Policy 15: Risk Management
15.1 Indemnification
The Indemnification policy of ASEE is cited in Article VII, Sections 10 and 11 of the ASEE Bylaws as follows:
Section 10. Each member of the Board, including each member of the Finance Committee of the Society, shall be indemnified by said Society against reasonable expenses actually and necessarily incurred by the member in connection with the defense of any action, suit, or proceeding in which the person is made a party by reason of being or having been a member of the Board or as a member of the Finance Committee except in relation to matters as to which the person shall be adjudged in such action, suit, or proceeding to be liable fornegligence, misfeasance, or misconduct in the performance of his or her duties as director or a member of the Finance Committee; such right of indemnification shall not be deemed exclusive of any other right to which the person may be entitled.
Section 11. No member of the Board or of the Finance Committee shall be liable either jointly or severally to the Society for any loss suffered by the Society as a result of any action of the Board or action of the Finance Committee or any of its members except in relation to matters as to which such members shall be adjudged in any action, suit, or proceeding to be liable for negligence, misfeasance, or misconduct in the performance of their duties as such member.
15.2 Insurance
A. ASEE shall maintain insurance up to limits established by the Finance Committee at expense, to support the indemnification of the previous section.
B. The Executive Director shall be responsible for arranging and maintaining such insurance in accordance with the laws of the Commonwealth of Pennsylvania or the District of Columbia, whichever holds jurisdiction.
Financial Policy 16: Conflict of Interest
16.1 General Policy
A. Conflict of interest is defined as any situation in which an individual's decisions, actions, or votes could materially affect that individual's financial, business, or professional interests.It is the responsibility of all ASEE staff, members, and officers to consider each item of business where they have a vote, action, responsibility, or decision authority to determine if a conflict of interest, or the appearance of such conflict of interest, may exist.Any such recognized potential conflict shall be made known immediately to the person in charge of the activity (or the next higher authority if that individual is in charge), who, after consultation with the Executive Director, will advise the member of the proper course of action and cause a notation of the action to be entered in the activity's record.
B. In the case of a director or other principle of the organization, a fulldisclosure of any actual or apparent conflict of interest will be made generally known, and the individual concerned will be recused from all involvement in the matter (which means that the individual will not be present when discussions of the subject are held, votes are cast, or business decisions are made).
16.2 Suppliers Holding Membership
Any individual member or representative or employee of an institutional member of ASEE who is a supplier or potential supplier of goods or services to ASEE is in a position of potential conflict of interest with respect to the provision of such goods or services.
Financial Policy 17: Travel Expenses
17.1 General Policy and Requirements for Reimbursement
A. As a professional society, the basic tenet of ASEE is that the members who participate in various activities will do so voluntarily as part of their professional growth and to contribute to the advancement of engineering education through the work of ASEE.It is expected that employers of ASEE members will participate in the growth of their employees.However, it is recognized that not all employers are so willing.Individuals may be unable to defray the total expenses for work related to the organization.Therefore, when no other source of funds is available, ASEE will accept an authorized claim for reimbursement. An exception to this is the Annual Conference, for which no reimbursement of expenses will be provided.
B. No expenses for travel will be reimbursed unless a pre-approved Travel Authorization (see 18.1 for sample Volunteer Travel Authorization Form) is issued by the ASEE Meetings and Conferences Department for that travel.
C. In order to optimize the use of ASEE funds, the Executive Director may establish an account with a travel agency to assist ASEE officers in arranging transportation and lodging for authorized travel.The use of the official travel agency is required for all ASEE related travel except when the Executive Director or the President determines that there is a financial advantage to ASEE to do otherwise.Failure to adhere to this policy will result in denial of a claim for reimbursement from ASEE.
D. ASEE will only reimburse the expenses of officers, directors, and staff when incurred on pre-approved official ASEE business.Other activities eligible for reimbursement must be authorized by the Finance Committee, Executive Committee, or the Board of Directors.The Executive Director is responsible for approving claims for reimbursement.The Board of Directors intends that judgment and discretion be used in approving any exception to general policy.
E. ASEE does not reimburse for the expenses of spouses who accompany volunteer officers on trips.Any exception must be pre-approved by the Board of Directors under special circumstances when a spouse or guest will necessarily and appropriately aid in serving as official host or hostess.
F. Where possible, the expenses of a volunteer leader or Headquarters staff member visiting the Section should be partially or fully funded by the Section.When volunteer leaders and/or key staff members attend section or Division conferences, their registration fee should be absorbed or paid for by the conference.
17.2 Air Travel
A. Coach class commercial air transportation will be reimbursed only when travel by a discount class is not available or would impose undue hardship on the traveler. In the case where the traveler elects to fly coach or a more premium class, ASEE will reimburse only that portion of the cost comparable to the lowest available discount fare.
B. Where the traveler elects and is pre-approved to use a private automobile to make airline connections, ASEE will reimburse both the mileage and the airport parking during the trip.
C. Travel insurance will not be reimbursed.
17.3 Automobile Travel
A. When travel by private automobile is elected and pre-approved, reimbursement will be made at the rate authorized by the I.R.S., not to exceed the cost of the most economical class commercial air transportation reasonably available.The approved mileage rate is all inclusive.No additional claims will be honored for tolls, parking fees, en route meals, or lodging, or other expenses incident to automobile travel which would not have been incurred if the trip had been by air or other public carrier.
B. Reimbursement for cost of a rental automobile will only be made in those pre-approved cases justified by the nature of the business of the traveler at the destination, or where other means of reaching the ultimate destination are not feasible.
17.4 Out-of-Pocket and Other Expenses
A. Payment of a fixed daily allowance for lodging, meals, incidental expenses (including local transportation), and gratuities shall be made according to a per diem rate for the locality.The Executive Director shall develop and maintain a locality-based per diem rate structure.This structure must be approved by the Finance Committee and should be based on relevant IRS allowances.
B. Registration fees, if pre-approved, will be separately reimbursed upon itemization.C. ASEE does not pay for entertainment expenses (e.g., theater tickets, cocktails, reading matter) or for expenses normally incurred in one's home location (such as valet services and laundry) unless the trip is seven consecutive days or more.
D. Long distance telephone calls should be billed to home or hotel room and circled on the statement submitted.If reimbursement by ASEE is expected, the party called and the ASEE-related purpose of the call should be specified.
E. Rental of formal clothing may be claimed provided such rental was pre-approved as necessary to fulfill an approved function as ASEE representative.
17.5 Board of Directors Travel
A. The Board of Directors will budget for and reimburse its members for related and reasonable travel expenses incurred when attending Board and Executive Committee meetings, except for the Board meetings held at the Annual Conference, the expenses of which are part of the commitment made when accepting a Board position.
B. When attending conferences other than the Annual Conference at which a Board of Directors meeting is being held, members of the Board of Directors will be reimbursed for their air travel and expenses for the period of the Board meeting only.Conference registration and expenses relating to staying beyond the actual days of the Board of Directors meeting will not be reimbursed.
C. Board members who have exhausted all other sources of financial support to attend Board meetings at the Annual Conference can be reimbursed by submitting a request letter to the Vice President for Finance for approval prior to the meeting. Reimbursement will follow current travel policies.
D. With the prior authorization by the President described in Section 17.1.B above, ASEE may reimburse expenses for persons not members of the Board, who, by virtue of their association with a related organization or special expertise, have been invited or requested to participate in a Board meeting, planning session or other formal Board function.Such compensation must come from funds allocated in the budget for such purpose.
E. On occasions such as Board meetings, when expenses such as meal functions are billed directly to Headquarters on a master bill, individuals responsible for ASEE units will be advised as to the amount charged to their accounts.
17.6 Personal/Employer Travel Incentive Benefits
It is incumbent on all ASEE Officers to schedule meetings as far in advance as possible and for all members to arrange their travel in a manner most economical to ASEE, taking advantage of all available discount fares and without regard to personal and/or employer travel incentive benefits.
17.7 Reimbursement
A. A Request for Reimbursement of Travel Expenses Form (see 18.2 for sample) shall be submitted to the individuals who signed the relevant Volunteer Travel Authorization Form and then to the Executive Director within 30 days after travel has been completed.In the event of extenuating circumstances, a 30 day extension can be authorized by the Executive Director.All disbursements must be accounted for in the fiscal year in which they are incurred.A copy of the form should be retained by the individual submitting for reimbursement.
B. A check for reimbursement of travel expenses shall be drafted and mailed within 30 days of receipt of an approved reimbursement form by Headquarters.
C. Expenses are to be carried by the individual and not charged to his/her firm for subsequent billing to ASEE.
D. Exceptions can be made to ASEE travel policies by submitting a written request, in advance of the expenditure, to the Vice President, Finance outlining the requested exception.The Vice President, Finance has the authority to approve exceptions for all reporting areas, except his/her own.An exception for the Vice President, Finance, must be approved by the President.Approval must be in advance and in writing and must state the budget or BASS account to which charges would be applied.
