4th Degree Assembly Cash Flow Management

WHY IS THIS IMPORTANT?• Effectively facilitate the business of the

Assembly.– Ensure all the money goes where it is

intended, when it is intended.– Ensure that the Assembly is protected

from fraud (theft).– Ensure the members who handle money

on behalf of the Assembly are protected from suspicion.

Headlines• Bingo Boss Borrows Big

• No Trust for Trustees

• I Was Framed!

Guiding Principles

•Transparent

•Intentional

•Efficient

When it comes to cash flow….Assemblies must follow the Constitution, Rules of the Order.

the rules are the same for

4th Degree Assembly

and 3rd Degree Council(only the titles of the Officers differ)

Assembly Cash Flow(Income)

All Assembly money is given to Faithful Comptroller.

Faithful Comptroller accepts payment and issues a receipt.

Faithful Comptroller reports the transaction to Assembly during his report at next regular meeting.

Depositor retains receipt of the transaction.

Faithful Comptroller gives all money to Faithful Purser.

Faithful Purser accepts payment and issues a voucher of deposit to the Faithful Comptroller.

Faithful Navigator reads the vouchers to Assembly at the next subsequent meeting.

Faithful Navigator gives the vouchers to the Trustees for safekeeping.

Faithful Comptroller gives all vouchers to Faithful Navigator.

Faithful Purser deposits money in the bank or financial institute.

Bank or financial institute accepts payment, deposits into Assembly Bank Account and returns a receipt to the Faithful Purser.

Faithful Navigator reads the receipts to Assembly at the next subsequent meeting.

Faithful Navigator gives the receipts to the Trustees for safekeeping.

Faithful Purser gives all receipts to the Faithful Navigator

Assembly Cash Flow(Expenditures)

Assembly Orders

All Assembly expenditures can only be made by….

Assembly Orders

are those items brought to the floor of the assembly in the form of a motion, voted upon and approved by the Assembly.

The Assembly therefore “Orders”payment.

Section 122(b)

• No money in excess of $500 (except for current expenses), shall be paid unless first presented at a business meeting, written notice is given to the membership and a 2/3 majority vote of the membership at a subsequent business meeting is taken.

“Current Expenses”

of the Assembly is give a very broad meaning by Supreme and is not restricted to such items as rent, telephone, electricity, etc…but also extends to all regularly scheduled activities and projects of the Assembly, such as scholarship fund, relief fund, Assembly Picnic, New Year’s Eve Dance, etc…

Each “Current Expense” should be included as a line item in the Assemblybudget – once the Assembly hasapproved the budget, it hasachieved substantial compliancewith Section 122(b). Nonetheless,any expenditure of Assemblyfunds must receive the approvalof the Assembly.

KEY POINT

“The Trustees shall have supervision

of all the financial business of the

council…”

All Assembly Orders are Approved

by the Trustees

Except………

Except…Payment of …

1. Benefit Orders

2. Demands of Supreme/State

3. Usual Payments of Assembly

4. Notice of Motion & Vote

“Usual payments of the Assembly ”Require an Order of Assembly

to pay but do not require a “Notice of Motion” as other expenditures do – provided they are included as a line item in the Assembly budget.

Notices of Motion & Vote (Greater than $500)

• Notice of Motion is made.

• Next Meeting - 2/3 Majority Vote Required to pass the motion once it has been made.

AssemblyOrders<$500

Approval of Board of Trustees

•Benefit Orders •Demands of Supreme/State•Usual payments of Assembly•NM & Vote (2/3 Majority)

Approval of Faithful Navigator

RequiresRequires

Approval Required

• $500 +•Notice of Motion•2/3 Vote

•Simple Majority• Approval of Trustees

• $500 +• In the Budget•Simple Majority

Faithful Comptroller draws the Order

Faithful Navigator counter-signs the Order.

Faithful Purser draws a cheque and signs it as per the Order.

Faithful Navigator counter-signs the cheque.

Faithful Purser issues the cheque.

Then Who Does What ?

Faithful Navigator, Trustees and Faithful Purser report on what expenses they have approved or issued at next subsequent meeting.

Recap

Receipt is kept by depositor for records

Comptroller accepts

payment

Faithful Comptroller

pays money to Faithful Purser

Faithful Comptroller

gives all receipts to Faithful

Navigator

Faithful Purser accepts

payment

Faithful Purser deposits money in the bank or

financial institute

Faithful Purser gives all receipts

to the Faithful Navigator

Bank or financial institute accepts

payment and deposits into Assembly Bank

Account

Bank or financial institute issues a

receipt to the Faithful Purser.

Faithful Navigator reads the vouchers/receipts publicly at the next subsequent meeting

Faithful Navigator gives the vouchers/receiptsto the Trustees for safekeeping (& audits).

Faithful Comptroller

issues a Receipt to depositor

Faithful Purser Issues a Receipt to

Faithful Comptroller

Report is made to

Assembly on Events and Fundraisers

Assembly Income

All Assembly money is received by Faithful Comptroller

Assembly Orders

Benefit Orders

Approval of Board of Trustees

Faithful Comptroller draws the Order and signs it.

Faithful Navigator counter-signs the Order.Demands of

Supreme or Stateand

Usual payments of the Assembly.

andNotice of Motion & 2/3 Majority

The Order is drawn upon the Purser

who draws a cheque and

signs it.

Faithful Navigator

counter-signs the cheque.Approval of

Faithful Navigator

Faithful Purser

issues the cheque.

Assembly Expenditures

Do (Shall)• All income goes to the Faithful

Comptroller.• At least two signing authorities

for the bank.• All transactions are receipted.• All income and expenditures

are recorded by the Scribe and read each meeting.

• All receipts are kept by the Trustees for the audit.

• Trustees take an active role in the financial well-being of the Assembly.

• Develop & maintain an Assembly Budget

Do Not (Shall Not)• The Faithful Comptroller must

not have signing Authority on the Assembly Bank Accounts.

• Move money without a paper trail.

• Overcomplicate things

Guiding Principles• Transparent• Intentional• Efficient

Cash Flow Management

1. Is an Assembly Budget necessary?

2. Does the FN have discretion to spend up to $200 without Assembly approval?

What actions are required for expenditures:

• Up To $500 ?

• > $500?

Questions?

hmarcotte@rogers.com