Revised: 11/29/05

Financial Policy

Background and Purpose
The financial policies of The American Society for Engineering Education (ASEE) have evolved by the actions of successive Boards of Directors and their Executive and Finance Committees.These actions have been recorded in the minutes of the meetings of these bodies.The various policies have been compiled into this Financial Policy Manual, to serve as a ready reference for:

• Volunteer officers and others who need to understand ASEE financial policy;
• The Board of Directors, which, on behalf of ASEE members, establishes and modifies financial policy, as may be appropriate;
• The Finance Committee, which is responsible for oversight of fiscal management in accordance with policy, review of financial policy, and for recommendations to the Board of Directors to modify financial policy; and,
• The Executive Director, who is responsible for the financial management of ASEE.

Note: Unless otherwise stated, reference to ASEE Divisions in this manual should be taken to include Councils and Constituent Committees

Contents

Financial Policy 1: Overall Financial Policy
1.1 Financial Aims of ASEE
1.2 ASEE Tax Exemption Status
1.3 Fiscal Responsibility of the Board of Directors
1.4 Generation and Application of ASEE Funds
1.5 Cost and Overhead Recovery
1.6 Cash Management

Financial Policy 2: Restricted Funds
2.1 Definition and Scope

Financial Policy 3: Unrestricted Funds
3.1 Definition and Scope
3.2 Banking and Accounting Services System (BASS)
3.3 Board-Designated Funds

Financial Policy 4: Investments
4.1 Organization and Responsibility
4.2 Short-term Investments
4.3 Long-term Investments
4.4 Limits and Controls

Financial Policy 5: Capital Assets
5.1 Equipment Assets
5.2 Depreciation of Capital Equipment

Financial Policy 6: ASEE Reserve Fund
6.1 Definition and Scope
6.2 Goal

Financial Policy 7: Dues Revenue
7.1 Status of Dues Income
7.2 Dues Billing Cycle

Financial Policy 8: Non-Dues Income
8.1 Publication Sales, Subscriptions, Advertising, and Mailing Labels
8.2 Conference, Workshop, and Seminar Fees
8.3 Revenue Sharing with Field Units
8.4 Investment Income
8.5 Grants and Contracts
8.6 Charitable Contributions

Financial Policy 9: Endowments
9.1 General Policy
9.2 Corpus of an Endowment
9.3 Endowment of National Awards
9.4 Direct Award Expenses and Administration Fees
9.5 Limits and Controls

Financial Policy 10: Externally Sponsored Award and Activity Funds
10.1 Definition and Scope
10.2 Sponsor Commitments
10.3 Limits and Controls

Financial Policy 11: Field Unit Finances
11.1 Zone Operating Budgets
11.2 Section Operating Budgets
11.3 Institutional Council/Division Operating Budgets
11.4 BASS Accounts
11.5 External Bank Accounts
11.6 Dues Income
11.7 Non-Dues Income

Financial Policy 12: Planning and Budgeting
12.1 Definition and Scope
12.2 Unrestricted Operating Budget
12.3 Restricted Operating Budget
12.4 Surplus Fund Balances
12.5 Budget Development Process and Schedule
12.6 Unbudgeted Expenditures
12.7 Budget Amendments
12.8 Limits and Controls
12.9 Chart of Accounts

Financial Policy 13: Accounting and Reporting
13.1 Responsibility
13.2 Method of Accounting
13.3 Standard Reports and Schedule

Financial Policy 14: Safeguards and Controls
14.1 Competitive Procurement
14.2 Commitment of ASEE Funds
14.3 Authorized Signature
14.4 Annual Audit of Financial Records
14.5 Annual Conference Financial Transactions

Financial Policy 15: Risk Management
15.1 Indemnification
15.2 Insurance

Financial Policy 16: Conflict of Interest
16.1 General Policy
16.2 Suppliers Holding Membership

Financial Policy 17: Travel Expenses
17.1 General Policy
17.2 Air Travel
17.3 Automobile Travel
17.4 Out-of-Pocket and Other Expenses
17.5 Board of Directors Travel
17.6 Personal/Employer Travel Incentive Programs
17.7 Reimbursement