The Bylaws of CES Finance Committee
August 1, 2003
The Finance Committee (FC hereafter) is a standing committee independent of the Board of Directors of CES. The responsibilities of FC are:
a). Enforcing the CES Accounting Regulations
b). Managing the accumulated assets of CES;
c). Supervising the financial transactions of the Board of Directors of CES;
d). Supervising other financial affairs of CES and maintaining financial records of CES activities.
The FC has five members. They are elected by CES members at the annual Meeting. The Chair of FC is elected by the FC members. The term limit is five years for the chair. There is no term limit for FC members. The FC chair automatically serves as the Treasurer of CES.
III. Recall provision.
If a simple majority of FC members vote against FC leadership, the FC Chair should resign from the post but would still keep his/her FC membership. FC would then re-elect a new Chair and issue a formal report to CES members within 30 days. The election of the new FC Chair will be supervised by the CES president. The ousted chair has the right to appeal at the CES annual meeting.
To facilitate communication and coordination, the President and the Board of Directors can be non office holding FC members without voting power.
IV. Criteria for office holders
A candidate of the Finance Committee should meet following qualifications:
a). Having a sound record in serving CES;
b). Having no history of financial wrongdoing (any member can challenge the record of a candidate if he or she has any relevant evidence);
c). Having no conflict of interest in CES. For example, current and preceding Directors cannot serve at FC until they complete their projects and close their CES accounts.
V. Accounting Regulations.
The CES Accounting Regulations are a guideline for CES financing activities and are enforced by FC. FC reviews the CES Accounting Regulations regularly and revises them as necessary. FC should send any suggested amendments to the CES Accounting Regulation to the President and the board of director for comments before making a final decision. FC has the final authority on any amendments to the CES Accounting Regulations. Amendments to the CES Accounting Regulation will be approved by a majority vote FC members.
VI. Asset Management
FC formulates the general policy regarding assets management. A conservative investment strategy is preferred. The daily management is carried out by the Chair or his/her representative. FC members receive no salary. Only operational costs can be covered by the FC. The compensation for the CES President and FC staff is decided by FC.
VII. Project Funding Criteria.
The CES fund will be used only for the following purposes:
a) Support of FC regular operations;
b) Support of projects when unexpected financing difficulty occurs;
c) Support of special tasks that aim to achieve CES’ long-term goals.
The operation guideline and major financial decisions should be approved by the majority of FC members. Any budget item of $3000 or more should be approved by the majority of FC members. Any budget item between $1000 and $3000 can be decided by the FC Chair under the condition that the chair should inform FC members within 60 days. The Chair can make a decision for items of $1000 or less.
VIII. Annual Report
The FC Chair should submit a financial report to CES annual meeting. FC should take timely action against any serious problems in financial management and inform the Board of Directors within three months.
This Amendment is approved by FC and passed by the CES members at the Annual Meeting at University of Michigan, Ann Arbor, on August 1, 2003.
CES Finance Committee:
Wei Yu (Chair)
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The CES Financial Regulations
1. The CES fiscal year.
The CES fiscal year is from November 1 through October 31 of the next year.
2. Operation Funds.
To initiate fundraising and normal operations, each President can obtain an operating fund from the Financial Committee (FC). The President should return the operation fund to the FC no later than the first day of the sixth month after the term ends (May 1).
3. Accounting method.
The CES accounting system contains two major parts: the CES assets managed by the Financial Committee and the operating accounts that are managed by the president and the executive board. Each president is responsible for all projects initiated during his or her term. A president can keep the CES accounts open for ongoing
projects for up to three years after his/her term ends. If a president cannot finish all the ongoing projects by the end of the three-year period, the president should close all CES accounts and transfer the remaining funds to FC. FC will pay for these unfinished activities.
The president should send copies of all CES bank statements and canceled checks and provide information for each transaction to the FC at the end of every fiscal year.
The FC is responsible to have all CES financial transactions recorded by an independent certified accountant.
An independent professional accountant will be hired by the FC to audit financial transactions when a president has completed all the activities initiated during his or her term. The accountant will submit a report to the FC.
5. Surplus or deficit.
After projects are completed, the president should close all CES operating accounts opened during his or her term and transfer the surplus to FC. If a deficit occurs, the president should submit a request to FC for financial support. FC has the right to cut the budget for unfinished projects in order to reduce the deficit.
7. Tax Returns.
FC is responsible for filing the CES tax return. Presidents with outstanding CES accounts are obligated to maintain and produce the documents that are requested for filing tax return to FC in time. Presidents are responsible for any errors and mistakes made in reporting financial transactions under his or her supervision to the FC.
8. The CES Annual Fiscal Report.
The FC should provide an annual fiscal report before August 1 each year and publish the report on the CES website. This annual report should detail all CES financial transactions during a fiscal year, including transactions for unfinished projects conducted by ex-presidents and CES assets managed by the FC.
9. FC fund.
The use of FC fund should follow the FC Bylaw. The Finance Committee can initiate and finance activities that are directly related to CES accounting and financing management. FC will report its assets and transactions each year on the CES fiscal report. The CES President has the right to audit the FC funds.
10. Appropriate use of CES fund.
The use of all CES funds should be consistent with the CES Bylaw and its non-profit academic status. No CES funds should be used for any political purposes or for member’s personal benefits. All CES-funded activities should be open to all members.
11. This accounting regulation is approved by FC and passed by the CES members at the Annual Meeting at University of Michigan, Ann Arbor, on August 1, 2003.