2.6 Financial Management Policy
Purpose
The purpose of this policy is to promote sound financial stewardship, accountability, and transparency within Fencing-Escrime New Brunswick (FENB). It establishes controls to ensure that funds are managed responsibly, budgets are aligned with organizational goals, and reporting meets applicable standards.
This policy ensures that the organization’s financial resources are used efficiently to support fencing development, athlete programs, and sustainable operations.
Scope
This policy applies to all financial activities of FENB — including budgeting, revenue, expenditures, banking, grants, fundraising, and audit processes. It covers the Board of Directors, Executive Director, staff, and committees involved in financial decision-making.
It complements governance, risk, and ethical standards contained in the Risk Management Policy (Section 2.2) and the Conflict of Interest and Ethics Policy (Section 2.14).
Policy
Financial Planning and Budgeting
FENB will operate under an annual budget approved by the Board of Directors before the start of each fiscal year.
The Executive Director and Treasurer are responsible for preparing a draft budget based on program priorities and anticipated revenues.
Any reallocation of funds exceeding 10 percent of an approved line item requires prior Board approval.
Revenue and Fund Management
FENB will maintain accurate records of all sources of revenue, including membership fees, grants, donations, sponsorships, and event income.
All funds shall be deposited into designated organizational bank accounts and recorded in accordance with accepted accounting principles for not-for-profit organizations.
Fundraising and sponsorship activities must align with the organization’s mission and values, as outlined in the Safe Sport, Conduct, and Athlete Protection Policy (Section 2.1).
Expenditures and Approvals
All expenditures must be approved in advance and supported by original receipts or documentation.
The Executive Director and one Board member must jointly authorize all payments and cheques (dual-signature requirement).
Cash advances and reimbursements are permitted only for legitimate FENB business expenses and must be reconciled within 30 days.
Financial Reporting and Audit
The Treasurer will present quarterly financial statements to the Board of Directors and an annual financial report to the membership at the AGM.
FENB’s accounts will be subject to an annual external review or audit as determined by the Board.
The audit report and any recommendations will be retained for a minimum of seven years and used to improve internal controls.
Financial Controls and Accountability
FENB will implement internal controls to prevent fraud, errors, and unauthorized use of funds.
The Treasurer is responsible for monitoring cash flow, reconciling bank statements, and reporting irregularities immediately to the Board.
Financial records must be accurate, complete, and accessible to authorized individuals for inspection.
Conflict of Interest and Ethical Compliance
All Board members and staff involved in financial decisions must comply with the Conflict of Interest and Ethics Policy (Section 2.14).
Individuals must declare any real or perceived conflicts prior to participating in financial discussions or votes.
Review
This policy will be reviewed every two years or as required to comply with funding agreements, audit recommendations, and changes to legislation.
Related Policies
• Risk Management Policy (Section 2.2)
• Safe Sport, Conduct, and Athlete Protection Policy (Section 2.1)
Approved April 2026