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ARTICLE X -- FUNDS MANAGEMENT
(Adopted by Resolution at the May 1997 District Conference)
- All District funds shall be deposited in a bank account or accounts insured by the FDIC. Responsibility for the management of these funds will be as follows:
- The District General Fund will support the annual operating budget of the District Governor as approved by the incoming presidents at the District Assembly and will be under the direct control of the District Governor subject to the policies set forth in ARTICLE IX (FINANCE COMMITTEE) of this policy manual.
- The District Governor may, if desired, establish a separate account for support of the District Conference, such account to be under the direct control of the District Governor.
- The District Reserve Fund will be established to provide for unforeseen budgetary and emergency requirements and for advance funds for necessary budgetary expenditures by the incoming District Governor. The fund will be maintained and controlled in accordance with the following guidelines:
- The District Governor will deposit the Reserve Fund in a separate account from the District General Fund.
- The Rotary year beginning balance of the District Reserve Fund will be not less than twenty per cent nor more than forty percent of the District General Fund budgeted expenditures for the year.
- Movement of funds from the Reserve Funds to the District General Fund will be authorized only by the District Finance Committee upon petition by the District Governor to cover:
- necessary expenditures in excess of revenues in emergency and unforeseen circumstances, or
- advance budgetary expenditures by the incoming District Governor.
- The goal is to maintain the District Reserve Fund between twenty and forty percent of the District General fund budgeted expenditures at the beginning of the Rotary year. In the event the District Reserve Fund is predicted to be near or below the specified twenty percent minimum, the District Finance Committee will include budgetary plans for collection and movement of funds from the District General fund to the District Reserve Fund to bring it to a level deemed prudent by the District Finance Committee. At the end of the Rotary year, funds collected through the District General Fund for a specified purpose (i.e., by budget line item) of increasing the District Reserve Fund and other unexpended District General Funds will be transferred to the District Reserve Fund. District Reserve Funds in excess of the specified forty percent maximum may be transferred to the District General Fund to reduce per capita dues, for a pro rata distribution to the District Clubs, or to improve designated District wide programs.
- The District Finance Committee will not authorize any action which would result in expenditures exceeding the District Reserve Fund.
- The Committee funds for World Community Service, Rotary Youth Leadership Award and any special funds created during the fiscal year will support the committee programs approved by the District Governor and will be managed as prescribed below.
- All District 5110 committees which receive funds from sources other than the District Treasurer shall be subject to the following procedure:
- The District Governor, with the advice of the Chair of each affected committee, shall appoint for each affected committee a Rotarian to serve as Treasurer of the committee. The positions of Treasurer shall be in addition to any other committee personnel provided for in this Policy Manual, and the persons appointed need not have any other responsibilities on the committees. The Treasurer of the committee shall be responsible for receiving and disbursing committee funds in furtherance of the purpose of the committee. All operating funds received by the committee or individual members of the committee for support of officially sanctioned District Rotary events shall be deposited in a bank account or accounts insured by the FDIC. At the discretion of the Committee Treasurer and Chair, committee reserve funds may be deposited in commercial low risk/money market investments, defined as being 90 days or less to maturity, or short-term U.S. Government Treasury bills or notes, defined as being three years or less to maturity. The account or accounts shall be in the name of Rotary International District 5110 (insert committee name) Committee and shall use the Federal Tax Identification Number of District 5110.
- Following the close of the fiscal year, the committee Treasurer shall provide an accounting to the immediate Past District Governor in sufficient detail to enable the Governor to include the committee financial activity in his/her annual report to the Internal Revenue Service, to the District Finance Committee and to the clubs as required by Article XV, Section 15.060.4, of the Bylaws of Rotary International. The financial records of each such committee shall be subject to the same audit rules as are District 5110 funds.