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Financial Management Policy

Operational & Administrative

St. Vincent Taekwondo Federation – Financial Management Policy

“Ensuring Transparency, Accountability, and Integrity in All Financial Matters”

1. Purpose

The purpose of this Financial Management Policy is to ensure that the St. Vincent Taekwondo Federation (STF) manages its financial resources responsibly, transparently, and in a manner that supports its mission and long-term sustainability.

This policy establishes standards for budgeting, accounting, reporting, internal controls, and financial decision-making, in compliance with:

  • National laws of St. Vincent and the Grenadines

  • Generally Accepted Accounting Principles (GAAP)

  • Best practices in non-profit sports organization governance

By adopting this policy, STF aims to protect the assets of the federation, build stakeholder trust, and ensure that every dollar is used to advance Taekwondo in the nation.

2. Scope

This policy applies to:

  • All STF Board members, officers, employees, coaches, and volunteers who handle federation funds.

  • All sources of STF income, including membership fees, competition entry fees, sponsorships, grants, fundraising, and donations.

  • All expenditures, regardless of amount.

3. Guiding Principles

The financial operations of STF will be guided by the following principles:

  1. Accountability – Every financial transaction must be recorded and traceable.

  2. Transparency – All members have the right to understand how STF funds are raised and spent.

  3. Stewardship – STF funds are to be used solely for purposes that advance the federation’s mission.

  4. Compliance – All financial practices will meet legal and tax requirements.

4. Roles & Responsibilities

Board of Directors

  • Approves the annual budget.

  • Reviews quarterly financial reports.

  • Approves all major expenditures above the pre-set spending limit.

Treasurer

  • Maintains accurate financial records.

  • Oversees banking arrangements and ensures dual signatories for withdrawals.

  • Prepares monthly, quarterly, and annual financial statements.

  • Ensures timely payment of obligations.

  • Coordinates the annual independent audit.

President

  • Co-signs payments and authorizes budgeted expenditures.

  • Ensures financial policy compliance across STF activities.

Finance Committee (if applicable)

  • Provides oversight for budget planning, investments, and major financial decisions.

5. Budgeting

  • An annual budget will be prepared by the Treasurer in consultation with the Board and Committee Chairs.

  • The budget must outline expected income and planned expenditures for the fiscal year.

  • No expenses shall be incurred that exceed the approved budget without Board approval.

6. Income Management

Sources of Income

  • Membership fees

  • Competition entry fees

  • Sponsorships & grants

  • Fundraising events

  • Merchandise sales

  • Donations

Procedures

  • All income must be deposited into the STF bank account within three (3) business days of receipt.

  • No cash payments will be made directly from collected income.

  • Official receipts will be issued for all payments received.

7. Expenditure Controls

  • All payments must be supported by original invoices or receipts.

  • The Treasurer and one additional authorized signatory must approve all payments.

  • Expenditures over a set threshold (e.g., XCD $2,500) require Board approval.

  • Petty cash (if used) must be reconciled monthly and never exceed XCD $500.

8. Banking & Signatories

  • STF will maintain its primary operating account with a reputable financial institution in St. Vincent and the Grenadines.

  • At least two Board members (including the Treasurer or President) must be listed as account signatories.

  • All payments require two signatures – no exceptions.

9. Financial Reporting

  • Monthly – Treasurer presents a financial activity report to the Board.

  • Quarterly – Treasurer provides a full income and expenditure statement, plus budget-to-actual comparison.

  • Annually – Treasurer prepares an audited annual financial statement for presentation at the AGM.

10. Record Keeping

  • All financial records (invoices, receipts, contracts, statements) will be kept for a minimum of 7 years.

  • Records must be stored securely, with access limited to authorized personnel.

11. Asset Management

  • STF assets (equipment, uniforms, electronics, etc.) must be inventoried annually.

  • Assets purchased with STF funds remain the property of STF and must be returned upon request.

12. Conflict of Interest

  • No Board member or officer may approve payments to themselves or entities in which they have a personal interest, without full disclosure and Board approval.

13. Audit & Review

  • An independent annual audit or financial review will be conducted by a qualified professional.

  • Audit results will be presented to the Board and membership.

14. Fraud Prevention

  • Any suspicion of financial misconduct will be investigated immediately.

  • Proven misconduct will result in disciplinary action, up to and including dismissal, repayment of funds, and legal prosecution.

15. Policy Review

This Financial Management Policy will be reviewed at least every two (2) years, or sooner if legal or operational changes require updates.

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