2. 4 th Degree Assembly Cash Flow Management

3. 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.

4. Headlines Bingo Boss Borrows Big No Trust for Trustees I Was Framed!

5. Guiding Principles T ransparent I ntentional E fficient

6. When it comes to cash flow…. Assemblies must follow the Constitution, Rules of the Order. the rules are the same for 4 th Degree Assembly and 3 rd Degree Council (only the titles of the Officers differ)

7. Assembly Cash Flow (Income)

8. 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.

9. 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.

10. 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

11. Assembly Cash Flow (Expenditures)

12. Assembly Orders All Assembly expenditures can only be made by….

13. 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.

14. 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.

15. “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…

16. Each “Current Expense” should be included as a line item in the Assembly budget – once the Assembly has approved the budget, it has achieved substantial compliance with Section 122(b). Nonetheless, any expenditure of Assembly funds must receive the approval of the Assembly.

17. KEY POINT “The Trustees shall have supervision of all the financial business of the council…”

18. All Assembly Orders are Approved by the Trustees Except………

19. Except…Payment of … 1. Benefit Orders 2. Demands of Supreme/State 3. Usual Payments of Assembly 4. Notice of Motion & Vote

20. “ 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.

21. 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.

22. Assembly Orders <$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 Requires Approval Required

23. $500 + Notice of Motion 2/3 Vote Simple Majority Approval of Trustees $500 + In the Budget Simple Majority

24. 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.

25. Recap

26. 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/receipts to 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

27. 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 State and Usual payments of the Assembly. and Notice 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

28. 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

29. 1. Is an Assembly Budget necessary? 2. Does the FN have discretion to spend up to $200 without Assembly approval?

30. What actions are required for expenditures: Up To $500 ? > $500?

31. Questions? hmarcotte@rogers.com