1.    PURPOSE 

1.01     The purpose of this Statement of Policy and Procedure is to provide guidance on the treatment of the cash balances and debt management of the organization as well as appropriate controls over handling of cash.

2.    SCOPE

2.01     This policy applies to the Board of Directors, the CEO, CFO, Controller and all employees involved in the handling of cash.

3.    POLICY

3.01     MakeWay will have a minimum of two signing officers for cash disbursements. In the normal course of events, these shall be the Chief Executive Officer (“CEO”), the Chief Financial Officer (“CFO”) or the Director Shared Platform.

3.02     All new bank accounts and investment accounts shall be approved by the CEO and CFO.

3.03     Investment firms / managers are recommended by the Finance & Investment Committee to the Board of Directors for approval.

3.04     Working capital requirements will be established and funds in excess of current and near term cash requirements shall be invested with the appropriate bank or investment manager as approved by the CEO and CFO. 

3.05    Investments of excess working capital must be in accordance with MakeWay’s Investment Policy.

3.06     A cash reserve of three months of normal expenses shall be maintained at all times. The cash reserve may be held in cash or low-risk, short-term investments such as provincial or federal treasury bills, GICs of a Schedule I chartered bank, or Investment Savings Accounts insured by CDIC.

3.07     The CFO will review investment performance on a quarterly basis.

3.08     The Investment Committee will review investment performance and portfolio balances at each Investment Committee meeting (generally 2 – 3 times per year).

3.09     Petty Cash fund shall be established to cover small expenses.  See “Petty Cash Policy” for more details.

3.10     Generally, MakeWay will not use debt to finance operations. MakeWay may use short-term debt to finance operations only in exceptional circumstances and as approved by the Board of Directors and the Senior Management Team.  

3.11     Long-term debt may not be used to finance operations.  Long-term debt may be used to finance capital improvements only.  Long-term debt repayment terms should generally not be longer than the estimated useful life of the related capital.  Long-term debt obligations must be approved by the Board of Directors and the Senior Management Team.

4.    RESPONSIBILITY

4.01     It is the responsibility of the Investment Committee, the CEO and the CFO to set guidelines for cash balances and investments, reflecting prudent stewardship of member/donor funds.   

4.02    It is the responsibility of the CFO and the Investment Committee to monitor investment performance on a regular basis and to ensure investments meet portfolio balance and Environmental, Sustainable and Governance (“ESG”) criteria as per the Investment Policy to ensure investments are being managed and controlled effectively.

4.03     It is the responsibility of the CEO, CFO and Controller to ensure that: 

(a)     Cash and investments are managed according to guidelines set out by this policy and the Investment Committee guidance.

(b)     Internal controls are established over the handling and access to cash.

(c)     Cash forecasts are performed on a periodic basis.

4.04    It is the responsibility of the Finance Department to:

(a)     Monitor overall cash flow management.

(b)     Perform regular reconciliations of bank balances.

(c)     Review investments and cash balances monthly.

(d)    Ensure that annual distributions meet CRA guidelines.

5.    DEFINITIONS 

5.01    “Petty cash” means a small amount of cash kept on hand to be used for necessary minor purchases.  The amount of cash on hand will depend on the specific office location or Project needs. 

5.02     “Bank reconciliation” is a comparison between the bank’s record of transactions and the records of the organization. After taking into account deposits not yet recorded and outstanding cheques the two records should be in agreement.

5.03     “Controls” are mechanisms such as reports, reviews and procedures that are designed to ensure policies are effectively adhered to and reduce the risk of fraud or error.

5.04     “Short-term debt” is debt that is due within one year.

5.05    “Long-term debt” is debt that is owed for a period exceeding one year.

6.    REFERENCES

Investment Policy

Petty Cash Policy