Warrantti ry's financial regiulations

Note: The official version is in Finnish, this is just a translation.

1 § General

In addition to the provisions set forth in the Associations Act, the association’s rules, and other regulations and rules of procedure, the financial management of Warrantti ry shall comply with the provisions of these financial regulations.

2 § Section 2 Overall Finances of Warrantti

The overall finances of Warrantti ry comprise all of the association’s financial resources, including all income received by the association, all expenses incurred by or attributable to the association, as well as securities and other assets owned by the association. The association’s ordinary finances include all financial activities conducted in the name of the association.

3 § NESU-Waasa
The finances of NESU-Waasa shall be managed by NESU-Waasa’s Treasurer. The duties of Warrantti ry’s Treasurer include maintaining NESU-Waasa’s accounting together with Warrantti’s accounting. Warrantti’s Treasurer shall determine the general framework of NESU-Waasa’s budget. NESU-Waasa’s income and expenses must be itemized separately in the association’s financial statements.

4 § Responsibility for Financial Management

The association’s financial management is primarily the responsibility of the Board’s Treasurer. The Chairperson of the Board shall remain informed of financial matters. The Treasurer must regularly report to the Board on revenues, expenses, and changes in asset values at least twice per academic term.

5 § Internal Control

The association’s Treasurer and Chairperson share joint responsibility for the proper execution of financial management duties.

CASH FLOW

6 § Use of Funds

The use of the association’s funds shall be based on the annual budget approved by the Board. The Treasurer determines how much of the association’s funds each Board member may use for organizing association events. In making this decision, the Treasurer must consider the association’s financial situation, the budget for the financial year, and any meeting resolutions. The Treasurer shall actively participate in the financial planning of member events organized by other Board members.

7 § Rights to Use Accounts

The association’s Treasurer and Chairperson shall have full access rights, viewing rights, and modification rights to all association bank accounts. In addition, association bank cards shall be issued to the Treasurer, Chairperson, and any Board members for whom such access is deemed reasonably necessary. Each club shall designate a person with viewing rights to the club’s bank account. Subject to approval by a Board meeting, the Treasurer may alter account viewing rights and issue bank cards when necessary to other entities operating under Warrantti where justified.

8 § Approval of Invoices

Invoices and payment obligations of the association shall be approved by the Treasurer or Chairperson. Invoices or payment obligations concerning oneself shall always be approved by another person. The approver must verify that the payment relates to association activities, complies with agreements, and is appropriate and acceptable. Payments must be based on approved invoices or decisions made by the association or Board.

9 § Payment of Expenses

The association’s payments shall be made from bank accounts or the cash register. Receipts received shall be attached to the original invoice or other supporting documents, such as expense reimbursement applications. If payment is based on a decision made by the association or Board, an appropriate reference to that decision shall be included with the payment receipt if the invoice is significant from a financial perspective.

10 § Receipt of Payments

Payments made to the association shall be directed to bank accounts or the cash register. Appropriate documentation regarding the source of the income must accompany each payment received.

11 § Retention of Receipts and Documents

Receipts, bank statements, and other supporting documents shall be collected annually and retained in accordance with applicable legislation.

CASH REGISTER

12 § Storage of Cash Register

The cash register must be stored and locked so that unauthorized persons outside the board cannot access it.

13 § Management of Cash Register

All sales shall generate an appropriate receipt showing the item sold, quantity, price, date, and seller’s name.

14 § Cash Register Accounting

The Treasurer shall count the cash register after the month during which it has been used, and at least twice during each calendar year, and maintain cash register records.

INVESTMENTS

15 § Investment Decisions

The association may invest its funds when justified by its financial situation. Investment decisions up to 50 000 € per financial year shall be made by the Board. If investment amounts exceed 50 000 € during a financial year, amounts exceeding that threshold require approval by a 2/3 majority at a general assembly. Warrantti’s Board may determine investment targets without a General Assembly. Once a decision has been made, the Treasurer and Chairperson or their authorized representative(s) shall execute the investments. The Treasurer shall monitor investments at least monthly.

ACCOUNTING

16 § Organization of Accounting

The association’s accounting shall be maintained as double-entry bookkeeping in accordance with the accounting act, accounting degree, and all applicable legal requirements, while also considering these financial regulations, other regulations arising from association decisions, and recommendations issued by the accounting board where necessary. Cash registers shall be maintained separately on a cash basis and incorporated monthly into the association’s accrual-based accounting.

17 § Asset Records

Asset records shall, where necessary, be maintained separately for liabilities, movable property, securities, insurance, and inventories. Lists of movable property shall indicate storage locations, asset categories, identifiers, acquisition dates, and acquisition values. Removed assets due to loss, wear, or other reasons shall be documented appropriately. Securities records shall include details concerning type, acquisition value, and accounting information. Securities shall be stored in securities custody whenever possible; otherwise, they must be securely stored separately from personal and other assets. Insurance records shall identify policy types, insured items, policy numbers, insured values, and other relevant information. Any inventory or operating assets of the association shall be recorded appropriately.

18 § Accounting and Account System

Ongoing accounting shall record expenses, revenues, payment transactions, and adjustment entries. The account system shall be based on the budget so that each budgeted revenue and expenditure category has a corresponding account. Additional accounts shall be established for other profit-affecting and payment transactions.

19 § Entries

Accounting entries shall be based on dated and numbered supporting documents verifying the transaction. Expense documents must indicate goods or services received; income documents must indicate what was provided. Documentation of payments must be issued by the recipient or the financial institution handling the transaction. Supporting documents for adjustments and transfer entries shall be properly verified.

20 § Receivables

Records, ledgers, or separate files shall be maintained for receivables, liabilities, and loans so that their amounts can easily be verified.

FINANCIAL STATEMENTS

21 § Financial Statements and Interim Statements

The association’s accounts shall be closed annually. The Board shall submit financial statements and supporting documentation in accordance with applicable accounting legislation to auditors no later than four (4) weeks before the association’s Spring General Assembly. Auditors must submit their audit report no later than fourteen (14) days before the Spring General Assembly.

An interim financial statement shall be prepared during the summer and include activities and events from January through June.

22 § Approval of Financial Statements

At the Spring General Assembly, in accordance with section 8 of the association’s rules, the annual report for the previous calendar year and the auditors’ report shall be presented, and the previous financial year’s financial statements shall be confirmed. In accordance with the association’s rules, the Spring General Assembly shall decide whether to grant discharge from liability to the previous Board.

AUDIT

23 § Auditors

According to section 5 of the association’s rules, Warrantti ry shall elect two auditors or non-authorized auditors and their deputies at the Fall General Assembly. Audits shall be performed in accordance with the auditing act and other legal provisions. Auditors must be impartial and qualified. Hereafter, the term “auditor” includes both authorized and non-authorized auditors.

24 § Audit Materials

The Board must provide auditors with all materials deemed necessary for auditing purposes, including accounting records, supporting documents, insurance and loan documents, minutes, membership lists, annual reports, rules, correspondence, agreements, and other relevant documents.

25 § Duties of Auditors

Auditors shall:

1. Verify compliance with the associations act, association’s rules, and other regulations;
2. Review minutes of association’s meetings, Board meetings, and committees, and verify that decisions have been followed and minutes properly signed;
3. Confirm that finances have been managed carefully and according to these regulations;
4. Confirm compliance with accounting legislation and that accounting entries are based on approved documentation; and
5. Verify that all required persons have signed the financial statements included in the balance book.

Auditors shall also make an audit notation in the financial statements.

26 § Audit Report

Auditors shall submit their report to the board no later than two (2) weeks before the Spring General Assembly. The report shall include the auditors’ view of the association’s administration, accounts, and financial position, as well as their opinion on approval of the financial statements and discharge from liability.

MISCELLANEOUS PROVISIONS

27§ Chairperson’s Representation Account

The Chairperson shall have access to a representation account. The Chairperson may use this account in good taste for personal expenses directly or indirectly related to the association’s activities and helpful in carrying out their duties. The annual amount available shall be 500€.

28 § Amendments

Additions and amendments to these financial regulations shall be decided at a general assembly by a simple majority of votes cast.

29 § Entry Into Effect

These Financial Regulations were approved at the association’s Spring General Assembly  on 16 April 2010 and updated at a Fall General Assembly on 19 September 2023.