Commissions and Reports

• Finance

International Union of Toxicology (IUTOX) Financial Policy

The International Union of Toxicology is a not-for-profit, 501(c)3 corporation, incorporated in the District of Columbia.

The purpose of the Union shall be to foster international scientific cooperation among toxicologists and promote global acquisition, dissemination, and utilization of knowledge in the science of toxicology and ensure continued training and development of toxicologists worldwide.

No part of the net earnings of the corporation shall inure to the benefit of or be distributable to its members, trustees, officers, or other private persons, except that the corporation shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes herein-above set forth.

This policy is intended to provide guidance to the IUTOX Treasurer, Finance Commission and Executive Committee on the Financial Policies used by IUTOX, and is intended to be updated and modified as needed by the Treasurer, Finance Commission and Executive Committee to reflect current practices.

Fiscal year

The International Union of Toxicology’s fiscal year will begin on the first day of January and will end the last day of December.

Financial management

Responsibility for the general management of the affairs of the Union rests with the board of directors, referred to as the Executive Committee.

The Executive Committee will:

• Have the authority and responsibility for establishing all governing financial policies.
• Monitor and evaluate the financial plans and guidelines of IUTOX to ensure the financial integrity of IUTOX.

The Treasurer will:

• Continuously review the financial status of the Union report at each Executive Committee meeting.
• When first elected, review accounts and statements for the current year and the preceding three-year period.
• Appoint a Finance Commission, which will provide financial reports and make financial recommendations.
• Develop a Finance Commission plan for the coming three-year period.
• Develop a budget for the three-year period, including requests from the Commissions.
• Maintain general oversight as to and over the Union’s financial affairs and the report at each Executive Committee meeting.
• Establish routines for approvals and payments, preferably electronic.
• Following review and discussion of current and projected future status of IUTOX finances:
• Make recommendations to Executive Committee concerning financial operations or actions.
  • Make recommendations to Executive Committee concerning authorizations and internal control limits.
  • Make recommendations to the Executive Committee concerning reimbursement guidelines.
  • Make recommendations to Executive Committee concerning dues and fees.
  • Make recommendations to Executive Committee concerning the fiscal and investment policies and current investments.
  • Ensure that the policies and procedures listed within this document are carried out, and may, from time-to-time, recommend revisions.
  • Perform other duties listed in the statutes and bylaws and as determined by the Executive Committee.

The Headquarters Office will:

• Manage the day-to-day financial operations of the Union.
• Issue income and expense statements to the Treasurer and Finance Commission, and Executive Committee as requested.
• Perform other duties as directed by the Treasurer and Executive Committee.

Accounting
The International Union of Toxicology will utilize generally accepted accounting practices that are required and/or recommended by regulatory agencies and the IUTOX auditor. The Union uses the accrual method of accounting, with each activity area maintaining its own revenue and expense statement.

Budgeting
An annual operating budget will be:

• Recommended by the Treasurer to the Executive Committee at the November Executive Committee meeting and approved at that time.
• Managed by the Headquarters Office (after Executive Committee approval).
• Reviewed by the Treasurer quarterly (through financial statements provided by the Headquarters Office).
• Reviewed at each Executive Committee and Finance Commission meeting (through financial statements provided by the Headquarters Office and a report by the Treasurer).
  

The Treasurer will prepare a preliminary fiscal year budget and shall submit the same to Executive Committee; following review by the Finance Commission. The Executive Committee shall adopt, prior to the commencement of the next fiscal year, a final budget for the fiscal year.

Budget Amendments

• Any significant expense for a product or service that was not anticipated by the budget will be presented to the Executive Committee for approval.
• Emergency budget adjustments less than $500 may be approved by the Executive Director or any member of Executive Committee.
• Emergency budget adjustments greater than $500 must be approved by the Treasurer, President, or the Secretary General. Please note that the person requesting the expenditure may not approve the expenditure.
• Commission budget adjustments, up to 10% of the budget line item, may be made by the chairperson reallocating funds within general ledger accounts within their Commission’s areas of responsibility.
• Budget amendments may be made when significant unanticipated revenues are received or cost overruns occur and when the Executive Committee has been notified.
  

Financial reports
Reports reflecting the financial condition of IUTOX and consisting of revenue and expense statements for the quarter and current year-to-date, with comparisons to the previous year-to-date and budget will be presented:

• Quarterly to the Treasurer (and others as requested).
• At each meeting of the Finance Commission and Executive Committee.

The Treasurer will also receive quarterly general ledger statements. The Treasurer will receive monthly investment reports and will monitor gains and losses.The Finance Commission will prepare (at least one month prior to the General Assembly, for presentation at same) a financial statement summarizing the financial status of the Union for the preceding three fiscal years. The statement will include an income and expense report, as well as a balance sheet.

Audits
Two auditors will be elected by the Member Societies at each General Assembly and will serve for a three-year period. Auditors will audit IUTOX’s finances. The auditors will prepare an audit report by June 30, prior to the General Assembly meeting. The report will be reviewed and approved by the Member Societies.

The Headquarters Office will initiate the audit process and cause appropriate IRS, and state and local forms to be prepared annually. The Treasurer will review the IRS forms. The Executive Officer will ensure that the management firm is in compliance with all local, state, and federal laws.

Internal controls
The Executive Officer will ensure that adequate internal controls are maintained. Gross violations or breach of trust will be reported to the board immediately upon discovery.
Internal controls for the banking function will include, but will not be limited to the following:

• IUTOX funds will be held in the name of “The International Union of Toxicology, a Corporation.”
• Incoming checks will be endorsed in the name of the Union and deposited promptly.
• Bank statements will be reviewed by the Executive Officer prior to reconcilement by the accounting department.
• Bank deposits at any given institution will not exceed the amount of deposit insurance.
• Computer and other financial records necessary for uninterrupted operation of IUTOX will be maintained in an off-site backup.
• Bank transfers and roll-over investments from one IUTOX bank account to another may be conducted on the authority of the Executive Director; All redemption’s or purchases of new investment vehicles must be authorized by the IUTOX Treasurer.

Check Signing
Check signing authority will be granted to the following individuals, under the conditions listed below:

Group 1
The Executive Officer (Shawn Lamb)
The Deputy Executive Director
Another staff designee approved by Executive Committee

Group 2
The Treasurer
Another Executive Committee designee

• Checks under $500 may be signed by one individual from Group 1.
• Checks over $500 must be authorized by one signer from Group 2.
• Checks for management service will be approved by the Treasurer.

It is the responsibility of the Executive Officer to ensure that signatures can be gained from appropriate signatories so that payment can be made on obligations of IUTOX. It is also the responsibility of the Executive Officer to ensure that adequate controls and safeguards have been established to ensure disbursement of funds only for proper purposes and under controls sufficient to meet the Membership-elected auditor's standards.
It is the responsibility of all check signers to ensure that there is adequate documentation, consistent with good internal controls, for valid payment of checks they sign.

Facsimile signatures are not currently used by the Union.

Use of credit cards
The Executive Officer will maintain a personal or management company credit card for use on all incidental purchases for the Union. The Union will reimburse the Executive Officer promptly for charges incurred.

Reimbursement policy
Members traveling on authorized Union business are entitled to reimbursement of expenses. This includes all Executive Committee meeting travel, as well as some travel to participate in IUTOX sponsored CE courses and meetings. The Union has a policy of least-cost travel and will grant exceptions to the following travel policy if it results in a reduced overall cost to the Union.

• Travel expenses will be reimbursed at economy class coach, utilizing the most direct route (travelers are asked to take advantage of advance purchase and other special fares when possible).
• Personal mileage on privately owned cars will be reimbursed at the IRS per mile rate (car rental is applicable, only if it results in reduced transportation costs).
• Receipts are required for any expense in excess of $25.
• In general, travel reimbursement begins the day before a scheduled meeting and ends the day after, usually three days for an EC meeting and 6 days for an ICT meeting.
• Reimbursement requests should be submitted within two weeks of the travel date.

Purchase orders
Staff purchases of supplies and materials, within budget, will be made only with a properly authorized purchase order signed by the Executive Officer or a staff designee.

Spending authorizations
The Executive Director may make expenditures consistent with the Executive Committee-approved budget without further Executive Committee approval. However, no expenditure may be made in excess of $500 for any equipment, supplies, service, program, or study which both departs from IUTOX’s historic core Secretary General, noting that the person requesting the expenditure may not approve the expenditure.

Contract Limitations
The Executive Director may negotiate and enter into contracts on behalf of the Union. Contracts or agreements (or a series of agreements with one vendor) with potential liability to IUTOX of more than $5,000, shall be subject to final approval by IUTOX’s Treasurer or Secretary General. Contracts will be held by IUTOX. All commissions, discounts and fees available and paid with respect to contracts will be paid to IUTOX.

Insurance/bonding protection of IUTOX
The Executive Officer may not risk financial losses to IUTOX beyond those that may occur in the normal course of business. The Executive Officer, to the best of his or her ability, will take appropriate safety measures to guard against embezzlement and liability claims against the Union, Executive Committee, or staff. In addition, the Executive Officer will:

• Recommend a Directors and Officers Liability insurance policy equal in value to net assets of the Union.
• Maintain bonding insurance for the staff through the management company.
• Recommend bonding insurance for the officers of IUTOX through a separate insurance rider.
• Maintain professional office insurance through the management company.

Charitable donations by IUTOX
Charitable contributions may, by Executive Committee approval, be made to organizations with missions consistent with that of IUTOX. In addition, IUTOX may join and pay membership fees to other 501(c)3 organizations with missions consistent with that of IUTOX.

Bad debts owed to IUTOX
The Union recognizes that in every business a small percentage of promises to pay remain uncollected. The Executive Officer may authorize the write-off of any debt of less than $100 from any one individual or organization if he/she believes the debt is uncollectable; debts of greater than $100 may be written-off by the authorization of the Treasurer.

Delinquent accounts may be assigned for collection to either legal counsel or a collection agency, or taken to small claims court, as the legal counsel deems appropriate. Collection efforts will continue even after write-off until actually collected or the attorney, collection agency or small claims court deems further efforts will be futile or not cost-effective.

Advocacy
No substantial part of the activities of the corporation shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the corporation shall not participate in, or intervene in (including the publishing or distributing of statements) any political campaign on behalf of any candidate for public office. However, the Union may monitor proposed legislation and regulation and may from time-to-time encourage its members to provide.

• Any funds expended for advocacy or advocacy related activities will be held in a separate general ledger account.
• Spending on advocacy will be limited to the threshold allowable by law.
• Advocacy activities will be reported annually to the IRS.

Review of Management Firm
The International Union of Toxicology will contract with a management firm to handle the day-to-day operations of the Union. The Executive Officer and all other headquarters staff shall be employees of the management firm. Facilities and equipment, as well as personnel management, will be the responsibility of the management firm. The Treasurer and IUTOX Executive Committee will evaluate the Executive Officer and, from time-to-time as directed by Executive Committee, the Treasurer may formally solicited proposals for services.