1 Background:
- As the governing body of the Club, the Executive Committee is responsible for determining the manner in which income received, is expended – refer Clause 26.1 of the Constitution.
- The Executive Committee may as it sees fit, delegate responsibility to a sub-committee and/or a Club officer to undertake specific functions – refer Clause 22.1(a) of the Constitution.
- These Policies record delegations relating to the approval of expenditure, and procedures for the procurement of goods and services.
2 Policies
(a) Expenditure Policy
The Executive Committee is required to approve all expenditure and payment of accounts - refer Clause 18.4(d)(iii) of the Constitution. Prior approval of the Committee is required before any commitment is made to expend more than $500 (including GST) for any purpose.
(b) Procurement Policy
Competitive quotes should be obtained for any procurement of more than $1,000 (incl GST) to ensure best value for money is obtained.
3 Application of policies
(a) Obtain a firm quote from known suppliers
If the value is more than $1,000 but less than $5,000 obtain at least two quotes; for items over $5,000 obtain three quotes if possible.
(b) Users to determine best option
It is not essential the lowest quote be recommended for acceptance; Club officers/members who will be the “asset owner” and/or user should initially consider obtaining products and services that meet Club requirements in regard to performance, compatibility with intended use, on-going costs for operation, repair and maintenance issues, and life span, and with the benefit of quotes determine the supplier with the lowest overall cost.
(c) Seek information about funding and cash flow
Contact the Club Treasurer with details of the proposed expenditure and time frame for spending, to enable budget issues and cash flow to be assessed.
(d) Refer to Executive Committee Meeting for decision
Provide brief details of the proposed expenditure, need for equipment/service, comment about suitability of a particular brand, model, supplier, etc, costs and how to be funded.
Note: if placement of an order and/or payment of an account is urgent and/or is not covered by the Expenditure and Procurement Policy, the relevant Executive Committee representative should refer the request to the President in the first instance. If it is determined a decision is essential prior to the next scheduled meeting, the President will refer the request to the Executive Committee members by email or other means for consideration.
(e) Executive Committee decision.
Determined based on need for the item, available funds in the Club/section budget and cash flow.
(f) Club order issued to supplier
Once approved by the Executive Committee, the Club Treasurer will if required issue a Purchase Order to the supplier. No commitment to proceed or purchase should be given to a supplier until Executive Committee approval has been given.
Flow charts attached explain the procedures to gain approvals.
4 Delegations associated with the Expenditure Policy
(a) Delegation to approve expenditure up to $500 without prior approval of the Executive Committee.
To facilitate on-going Club operations, the Executive Committee delegates to each of the Executive Committee members, the power to approve purchases for an amount not exceeding $500 (including GST). The delegation relates solely to the area of operations controlled by individual Committee members.
(b) Delegation to approve expenditure of a recurrent nature for purchases up to $1,000 without prior approval of the Executive Committee.
To facilitate on-going Club operations, the Executive Committee delegates to each of the Executive Committee members, the power to approve without prior Executive Committee approval, the procurement of goods or services of a recurrent nature for an amount not exceeding $1,000 (including GST) for any one purchase. This delegation relates solely to the area of operations controlled by individual Committee members, and applies to the following scenarios:
(i) consumable items and services essential for lifesaving and patrol operations, such as IRB fuel, first aid supplies, repair and maintenance of existing assets.
(ii) consumable items and services associated with education and training activities including repair and maintenance of existing assets.
(iii) consumable items and services associated with surf sports activities including repair and maintenance of existing assets.
(iv) consumable items and services associated with Junior Activities point score and educational activities, including repair and maintenance of existing assets.
(v) consumable items and services associated with cleaning, repair and maintenance of the upstairs areas of the Club building, and the lower level including first aid room, amenities, boat shed and IRB area.
(vi) products for re-sale at a profit such as food and beverage items, clothing, training manuals, etc, but only within the range of products and services already endorsed by the Executive Committee.
(vii) consumable items and services to facilitate food and beverage sales, such as BBQ gas, cleaning products, rubbish disposal, and services to repair and maintain equipment.
(viii) stationery and consumable items for office use.
(c) Delegation to Club Treasurer and the Junior Activities Treasurer to pay accounts for items of a recurrent nature up to $1,000 (with authorisation by a second bank signatory).
To facilitate on-going Club operations, the Executive Committee delegates to the Treasurer and the Junior Activities Treasurer the power to pay utility and other accounts not exceeding $1,000 (including GST) as detailed below, without prior approval of the Executive Committee:
(i) utility accounts, including electricity, telephone and broadband, building rent and other service accounts provided the amount payable has not increased by more than 10% on the previous account.
(ii) carnival entry fees for members to attend SLSA carnivals authorised by the Surf Sports Manager or the Junior Activities Manager.
(iii) procurement of goods and services detailed in 4(a) and 4(b) above.
(iv) re-imbursement of members for expenses incurred on behalf of the Club that are included in 4(a) and 4(b) above.
(v) payment of GST collected and due to the ATO.
(vi) transfer income from the Operating Bank Account to the Visa Debit Card Account, to maintain a maximum amount of $2,000 in the Visa Debit Card Account at any one time.
- d) Delegation to holders of Club issued Bank Debit Cards
To facilitate on-going Club operations, the Executive Committee delegates to the holders for the time being of Club Debit Cards, the power to pay by Debit Card for purchases up to $500 as detailed in 4(a) and 4(b) above, subject to prior approval of an Executive Committee member.
5 Procedures to gain approval to expend Club Funds
Diagram 1: General Expenditure
Diagram 2: Replenishment of saleable stock and consumable items
April 2019 - President: Steven McDonald - Treasurer: Harley Dreghorn (Approved by Executive Committee 14-12-2017, updated 06-09-2018)
