CLAY STUDIO FINANCE COMMITTEE - PROCEDURES

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1. COMMITTEE FUNCTIONS
1. The President appoints the Committee Chair. The Treasurer, at the direction of the Board, also hires a bookkeeper to perform the day-to-day functions associated with managing the financial business of the studio.
2. The Finance Committee meets monthly, or as needed, to perform the following functions.
1. Review and discuss the financial statements. Review financial trends and prepare any recommendations for the Board.
2. Review requests for capital expenditures that are not in the current budget and make recommendations to the Board.
3. Review expenditures against established budgets for each committee to assure compliance.
4. May appoint other individuals, such as Money Handlers, to help with the day-to-day management of studio financial processes.
3. In the Fall of the year, the Finance Committee undertakes a budgeting process and works with the Chairs of other committees, requesting their budget needs for the subsequent year. A draft budget should be ready for Board presentation at the November meeting.
4. A recommendation for the upcoming year’s Board Mandated Reserve will also be submitted at the same time as the budget. The reserve amount will approximate three months’ cash requirements based on the most recent fiscal year. The Finance Committee will monitor studio reserves and if the mandated reserve is reached, the Treasurer will immediately notify the President to determine action to be taken.
5. The Finance Committee reviews pricing for clay, tools, firings, and Membership Dues to be certain such pricing is at appropriate levels to meet the Studio’s financial requirements. Appropriate adjustments are recommended to the Board as part of the following year’s budget proposal.
2. CLAY PRICES
1. A. Clay prices are reviewed with each invoice, as well as annually as part of the budgeting process. Whenever clay price increases are received from Marjon those increases are run through the pricing model and, if warranted, pricing is changed in the POS system. Clay prices are determined as follows:
1. 1. Determine Marjon’s price per 25 lbs., based on a one-ton purchase.
2. 2. Add 20% to the Marjon price, plus two dollars to cover shipping and TPT tax and round to nearest $0.25 to determine Studio price.
3. FIRING FEES
1. Firing fees are reviewed quarterly as well as annually as part of the budgeting process. By policy, Firing Revenue (fees) should exceed the sum of Firings-Glaze and Firings-Other, Kiln Maintenance expenses by a minimum of 25 percent.
2. The Finance Committee will determine a firing fee increase from size to size using the current measuring grid and maintaining the regularity of intervals in the structure.
4. TOOLS
1. Tool prices are reviewed by the Supplies Committee as they are purchased.
2. If the invoiced price has increased by more than $.05, the Studio price will be changed and rounded up to the nearest $.05.
3. Tools Revenue should exceed tool expenses by 1% to 3 %.
5. MEMBER DUES
1. Membership Dues are reviewed annually as part of the budgeting process. If the Clay Studio’s annual revenue is not supporting Studio expenses, the Finance Committee will consider an increase in Membership Dues and make such a recommendation to the Board as part of the proposed annual budget.
6. FINANCIAL OPERATIONS PROCEDURES
1. The President of the Board, Treasurer, Assistant Treasurer and one other designated Board member are authorized by the Board of Directors to expend Clay Studio monies. They are also authorized to write and sign checks. Checks over the amount of $500 or more require two authorized signatures.
2. The Board-appointed Chairperson of each Standing Committee is authorized to expend monies within their budgets. These Committees are detailed in the Policy Manual.
3. Committee members may also spend their own money on budgeted committee expenses and request reimbursement. The procedure for member reimbursement is as follows.
4. Procedure for Member Reimbursements
1. Blank checks and the check registry are kept in the lockbox in the Clay Room. All check signers have a key to the box.
2. Reimbursement Request forms are kept in the top drawer at the Monitor station.
3. The purchaser fills out the Reimbursement Request form, attaches receipts and gives it to the appropriate committee chair for signature and approval.
4. All reimbursement requests must be signed by the committee chair.
5. Once signed, the request form is placed in the marked reimbursement envelope in the top drawer at the monitor station.
6. Upon receipt of the approved Reimbursement Request form with its supporting documentation, the Treasurer, Assistant Treasurer, other Board designee or President of the Board:
1. Makes out the check for reimbursement, places it in an envelope with the individual’s name on it, then places it in the large reimbursement envelope in the top drawer of the Monitor station.
2. Records the date and check number on the Request for Reimbursement form and puts it in the Bookkeeper mail slot.
3. Completes the Check Registry
5. Procedure for Vendor Payments
1. The responsible committee chair reviews vendor invoices for accuracy, signs them as evidence of that review and submits them to the Bookkeeper for payment.
2. The Bookkeeper determines when invoices are to be paid and notifies the treasurer for payment.
3. One of the designated signers:
1. Prepares and signs the check and mails the payment to the vendor.
2. Completes the Check Registry.
3. Notes check number, date of payment, initials the invoice and returns it to the Bookkeepers file.
4. Two signers are required if the invoice is over $500.00.
5. Unbudgeted expenditures over $500.00 need to be approved by the Finance Committee and the President or Treasurer.
6. Receipt Collection
1. Receipts for the day are tabulated (per Monitor procedures) at the end of each day, but no later than 4:00 P.M. No transactions are to take place after 4:00 P.M.
2. At the direction of the Treasurer, the designated Money Handler(s) collect the daily receipts from the deposit box in the Clay Room. It is expected that this task will be completed every 7 to 14 days and at the end of the month.
3. Money Handler(s) complete deposit slips and deposit the funds directly into the designated bank.
4. If there is a discrepancy it is noted on the envelope.
5. Deposit slips, POS reports and daily receipts forms are placed in the Bookkeeper file in the Sculpture Room for pick-up by the Bookkeeper.
7. Credit Cards
1. A credit card is issued to the following:
1. Supplies Committee Chair
2. Kiln Committee Chair
3. Facility Maintenance and Safety Chair
4. Treasurer
2. The current limit is $2,000.00 for designated credit card holders.
3. Unbudgeted expenditures over $500.00 need to be approved by the Finance Committee and the President or Treasurer.
4. Copies of all invoices related to credit card usage are placed in the Bookkeeper’s mail slot. The card holder must indicate on the invoice the account to be charged for the expenditure.
5. The Bookkeeper reconciles the credit card statement with invoices and notifies the Treasurer or Assistant Treasurer if there are discrepancies.
6. Credit card payment in full is automatically drafted each month from the Studio checking account.
7. The Treasurer electronically pays the TPT tax when due.
8. Transfer of Funds

The Treasurer is to maintain a balance in the checking account between $10,000 and $15,000. Transfer of funds between bank accounts will be monitored by the Finance Committee and carried out by the Treasurer or Assistant Treasurer with notification given to the Bookkeeper.

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Finance Committee Procedures Revised 1-09-2024.docx

updated: 1/9/2024 - jdo