A Message From The AMHA Treasurer
Submitted By DirMarket on Sunday, May 12, 2013
As you may be aware, there have been some not-for-profit organizations in the news recently as a result of questionable financial accounting and reporting controls.
We wish to assure our members that the Ajax Minor Hockey Association has a number of key controls in place to prevent and detect fraud, and has so for a number of years.
For example, the AMHA financial records are computerized, financial reports are prepared for the Board on a monthly basis for their review, and financial records are reviewed annually by a certified accountant.
In addition, all AMHA expenditure requests must be submitted to the AMHA Administrator, who is a paid contract employee of the AMHA, who reports to the President. She reviews and recommends all requests. All payments must be approved (by virtue of cheque signing) by at least two signing officers (AMHA Administrator, AMHA President, AMHA Secretary, or the AMHA Treasurer). In addition, the President or the Treasurer must be a signatory to all expenditures exceeding $1,000, and where not possible (due to travel or time constraints), approval may be obtained via email, and either of the other signatories may sign on behalf of the AMHA. No one may approve payments/reimbursements to, or for the benefit of, oneself or a related party, and related parties may never be the two signing officers. These controls mitigate the risk of fraudulent cheques to fictitious suppliers. The use of cash within the Association is limited, and only occurs when necessary (for example the receipt of tryout fees).
The AMHA Treasurer role is an appointed position, determined by the AMHA Executive Board of Directors. This is to ensure the Treasurer role is filled by a candidate with appropriate financial reporting and internal control expertise.
Consistent with good business practices, and to ensure the long-term viability of the Association, we maintain an appropriate reserve, reflected in our member’s equity, of approximately 19% of operating expenses. This is consistent with practices at other organizations of our size, and necessary to protect the AMHA against declining revenue flows or unexpected increases in expenses in a given year.
We continuously evaluate our controls in place to ensure the long-term financial strength of the AMHA.
If you have any questions about the AMHA financial processes, or would like to learn more, please contact the AMHA Treasurer at [email protected]This article has been viewed 4767 times.