Finance in a non-profit is substantially different than in a standard business operation. Each member of the DEC has a legal, ethical and moral fiduciary and stewardship responsibility to the organization. Below is a summary of best management practices. More explanation at https://member.legion-aux.org/member/guides/department-operations-guide

A fiduciary responsibility includes trust, loyalty and dedication to the organization over personal benefit or desires.

Stewardship is the responsibility to safeguard and care and properly account for the money, other assets, name, emblem, goodwill and reputation of the Auxiliary.

EXECUTIVE Committee Oversees management and finance, establishes policy and procedures, approves the budget,

FINANCE Committee: is accountable to the Governing Board and ensures that internal and financial reporting controls are appropriate. It oversees the Investment and spending policies for Investments and establishes policies and procedures for cash management. The committee prepares & reviews the budget and prepares a proposal to be voted on by the Department Executive Committee (DEC). They present the budget to DEC for adoption and present it to the convention body. The Finance Committee reviews, approves and communicates monthly financial statements and comments on variances from budget.

AUDIT Committee: is appointed by the President when needed and approved by and accountable to the DEC. They are responsible for ongoing Risk Assessment and Whistleblower resolution and focus their efforts on internal controls, compliance matters and monitoring. They work alongside the Finance Committee in financial reporting and compliance matters. These positions require expertise in auditing and compliance, not just accounting and finance.

The Audit Committee can be as few as 3 members and in very small organizations, there may be only one qualified member. Members should be as “independent” of the organization as possible and not hold any other current leadership position.

The IRS looks favorably on organizations with an audit committee, and they help to establish internal controls.

INTERNAL CONTROLS: are often lacking because of insufficient funding.

Necessary controls should include: