Fiscal policy of the Woodlands Swim Team (TWST) is guided by the following principles:

1. We are a non-profit corporation as defined by the Texas Non-Profit Corporation Act and Section 501(c)(3) of the Internal Revenue Service code

2. All financial activities shall be conducted in accordance with applicable Texas law, IRS regulations, TWST By-Laws, and USA Swimming guidelines

3. We require annual operating funds to support normal operations

4. We maintain an operating reserve to provide for unexpected and emergency operating expenses

5. We will build a capital fund to provide for long term capital expenditures necessary for future growth and development of the team

Since its inception, TWST has had use of the swimming pools, related facilities, and a professional coaching staff provided by the Woodlands Athletic Center (WAC) at no cost to the team. Policies associated with these facilities and personnel are the responsibility of the WAC and are outside the scope of this document.

Financial Reporting

Annual financial reporting will include a balance sheet, income/expense statement, and a cash flow report. Summaries of these reports will be sent to members each year, with the details available on request. All reports will conform to Financial Accounting Standards Board rules and regulations.

Cash flow activity reports and an updated budget forecast will be compiled and reviewed with the board of directors each month.

Independent financial audits will be conducted on a regular basis. These audits will be conducted by a qualified accountant selected by the board. The auditor may be a TWST member, but must not have been a board member during the time period covered by the audit. Audits will cover all financial transactions handled by the board and treasurer and will verify conformance to applicable provisions of the Texas Non-Profit Corporation Act, IRS regulations, TWST By-Laws, and this fiscal policy.

Sources of Revenue

The main sources of revenue are family assessments and income from hosted meets. Other sources include travel reimbursements from Gulf Swimming, volunteer grants from member’s employers, fund raising activities, and participation fees for specific activities. TWST also submits requests to USA Swimming for grants consistent with their Club Excellence program.

Expenses

Expenses incurred by the team include USA Swimming registration for all athletes, coaches, and board members, meet operations (including computer and timing equipment), coach travel, social activities including the annual team banquet, coach training and incentives, team t-shirts, team relay entry fees, training equipment, swimmer education activities, and office/administrative costs.

Annual Budget

The annual budget is developed by the Fiscal/Treasury committee based primarily on input from the meet operations committee, the head coach, and the social/spirit coordinator. This annual budget is approved by the board and then communicated to the entire membership. Monthly figures for income and expenditure are developed to a level of detail appropriate to facilitate review at regular board of directors meetings. The fiscal year for team finance purposes is September 1 – August 31, as set by the by-laws.

Financial Controls

It is a fundamental expectation of the membership that the board of directors will manage income and expenditures according to the approved budget. To enable the board of directors to actively manage expenditures to the budget, the following procedures shall be adhered to.

Each request to the treasurer for a payment to be made on behalf of TWST shall be accompanied by a standard request for payment form (Attachment 1) that identifies the recipient, amount, purpose of expenditure, and budget line item covering the expense. It is the responsibility of the TWST member requesting a payment to verify that the amount requested was included in and/or covered by the original budget estimate. The treasurer is then authorized to approve and make such payments up to $1,000. All payments over $1,000 require a second approval from an officer.

Any payment that would cause actual expenditures for a line item to exceed the approved budget for that amount by more than 10% requires approval by the president. The treasurer shall discuss all such overruns, as well as highlight any potential or expected future overruns, at the next board of directors meeting.

Only the board president has authority to approve a payment that is not explicitly covered by the approved budget, and that authority is limited to $200 or the funds remaining in the budget contingency, whichever is smaller. Any payment from contingency exceeding $200 must be pre-approved by a board vote. All such payments are to be allocated to the budget contingency and reviewed at the next regular board meeting.

Use of TWST Credit Card

The TWST credit card shall only be used for budgeted team expenses. For each transaction, the card holder shall ensure sufficient money remains under the specific budget line item prior to using the card.

Personal use of the card for any reason, even if subsequently reimbursed, is a violation of the Texas Non-Profit Corporation Act and is strictly prohibited.

Expenses Paid for Local Meets

TWST will provide reimbursement to swim coaches at the prevailing IRS business mileage rate when a coach drives their personal vehicle to coach TWST swimmers at a meet. TWST will also provide a $20 per diem payment for each day of the meet that the coach attends. Hotel and other expenses are not normally covered except for certain meets more than 40 miles from the WAC, and with specific advance approval of the board of directors.

Expenses Paid for Non-Local Meets

For attending meets requiring travel outside of the Houston area, coaches will have the option of a $25 per diem and auto mileage or payment of actual expenses. For payment of actual expenses, approval must be obtained in advance from the board of directors based on a list of coaches and a travel expense estimate submitted by the head coach and discussed at the board meeting preceding the trip.

Actual expenses to be covered by TWST are limited to vehicle expense or airfare, lodging, and meals. Vehicle expense includes auto mileage at the prevailing IRS rate, tolls and parking. All other expenses including incidentals are for the coach’s personal account. Receipts are required for all individual expenses of $25 or more. The expenses paid by TWST will be net of any reimbursement received from Gulf or USA Swimming.

Travel expenses for swimmers are the personal responsibility of each athlete except for those expenses reimbursed by Gulf Swimming for national team travel, select camp travel, etc. In this case, the athlete is responsible for the net difference unless specific approval is granted by the board to cover additional expenses on behalf of the athlete.

Reimbursement of Expenses

All requests for reimbursement of auto mileage, per diem, and/or actual expenses shall be filed with the Treasurer using the TWST Coach Travel Expense form (Attachment II).

Equipment, Maintenance and Repairs Fund

Income will be allocated each year towards the purchase of new equipment and maintenance and repair of existing assets. The treasurer will manage this fund as a part of the overall cash balance of the team with the goal of maintaining a sufficient balance to replace key assets when the need arises. Annual allocations to the fund will be made at the beginning of the fiscal year and included within the budget. The target balance for this fund will be set by the board during the budget process, based on known maintenance and replacement needs plus a reserve to cover unplanned events (e.g. failure of a computer). Charges against the equipment account will be made whenever necessary, with board approval necessary for any expenditure over $500. Any remaining balance at the end of the fiscal year shall be held in savings and carried over to the following year‘s budget.

The intent of maintaining this fund is to ensure that money budgeted for equipment gets set aside to be used for that purpose when the need arises, rather than being spent on other (unbudgeted) expenditures as an additional source of contingency.

Adopted by the TWST Board of Directors on January 10, 2006.