Authorized Expenses and Management Controls Policy

 

In order to clarify the authority of staff and volunteers to issue payment of Sigma Chi Fraternity funds, Sigma Chi Foundation funds, or any similar funds, the Executive Committee of Sigma Chi Fraternity have approved this policy. Whenever not specifically provided in this policy, the obligations described below must be in alignment with the Grand Quaestor’s Expense Policy & Finances Policy as provided in the Standard Operating Procedures Manual.

 

Definitions

Obligation - The term “obligation” will apply to contracts, debts, commitments, disbursement of funds, issuing of checks or similar. Any amounts referenced in connection with an obligation will be in consideration of the total aggregate obligation and not pertaining to the individual payments that comprise the obligation. All “obligations” referenced herein are those items previously approved in the course of the organization’s normal budgeting cycle.

 

Separation of Entities

The Sigma Chi Foundation and Sigma Chi Fraternity are legally separate entities. Therefore, no employee or volunteer of Sigma Chi Fraternity is authorized to incur any debt or disburse any funds of the Sigma Chi Foundation without specific written authorization from the Sigma Chi Foundation.  In addition, no member, employee or volunteer of Sigma Chi Fraternity shall act as an agent for Sigma Chi Foundation without specific authority granted by the Sigma Chi Foundation. 

 

Prohibition of Obligation by Unauthorized Agents

No member, employee or volunteer of Sigma Chi Fraternity is authorized to obligate the Sigma Chi Fraternity to expenses of any kind or to require funds to be disbursed on behalf of the Sigma Chi Fraternity in any manner except where specifically authorized in this policy. 

 

Obligations up to $2,500 Dollars.

The Executive Director will issue specific policies for obligations in the total amount of Two Thousand Five Hundred ($2,500.00) Dollars or less.  A copy of these policies is provided as a supplement to this parent policy and will be provided to the Executive Committee on an annual basis.

 

Obligations up to $25,000 Dollars

Either the Grand Consul or Executive Director may obligate the Fraternity to amounts not to exceed Twenty-Five Thousand ($25,000) Dollars. Either agent may act without the need for consent or approval of any other authorized agent or vote of the Executive Committee.

 

Obligations up to $50,000 Dollars

The Grand Consul and Executive Director acting together may obligate the Fraternity to amounts up to Fifty Thousand ($50,000) Dollars for the without the need for advance approval or consent of the Executive Committee.

 

Obligations Between $50,000 and $100,000 Dollars

Pursuant to the preceding paragraph, provided that the Grand Consul and the Executive Director are the first two signatories, the Grand Pro Consul or Grand Quaestor may each authorize an additional Twenty-Five Thousand ($25,000) in obligation. Therefore, the total combined obligation that may be authorized by the combination of Grand Consul, Grand Pro Consul, Grand Quaestor, and Executive Director without advance approval by the Executive Committee will be One Hundred Thousand ($100,000) Dollars. In any case, the Executive Director will obtain documentation from each authorizer and affix to the original copy of the obligation on file at the Headquarters.

 

Obligations Exceeding $100,000 Dollars

No agent, representative or combination of representatives may obligate the Fraternity to amounts exceeding One Hundred Thousand ($100,000) Dollars except for the Executive Committee as a whole. If the proposed obligation exceeds $100,000, the Executive Director will cause the contract and specific description of the obligation to be circulated to the Executive Committee whereupon an official vote will be taken and the results of which transcribed in official minutes of the meeting at which the vote took place. If such vote is conducted in an electronic manner (e.g., via email), the results of which will be published in the minutes of the next meeting.

 

Modification

The Management Controls Policy will be considered an ongoing policy and will not require regular review except where may be specifically required within this document. The Executive Committee may modify the Management Controls Policy by a majority vote at any time and the changes will become effective immediately.

 

Communication

The Management Controls Policy will be distributed by the Executive Director or his designee to all employees, volunteers and other individuals deemed necessary on at least an annual basis.

 

Provision for Emergency Action

In the event that any obligation must be established in a timeframe during which any of the previously described procedures for obligating the Sigma Chi Fraternity are not able to be acted upon, the Grand Consul or Executive Director will be allowed to act to enact such obligation. However, as soon as possible thereafter, the acting agent must present the entire obligation and the rationale for emergency action to the Executive Committee for review. If the Executive Committee deems the obligation was not reasonably of emergency nature, measures for cancelling the obligation as well as disciplinary action toward the authorizer may be pursued by the Executive Committee under reasonably acceptable procedures.

 

Exceptions

The Executive Director is specifically authorized to incur obligations exceeding $25,000 if the obligation involves routine processing of payroll, purchasing of inventory items necessary for normal business (jewelry, paraphernalia, etc) and similar matters under procedures as presented to and approved by the Sigma Chi Fraternity Executive Committee.

 

 

Approved by the Sigma Chi Fraternity Executive Committee March 20, 2014

 

 

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