Financial and Administrative Procedures — North Jersey Flying Club, Inc.
The Treasurer runs the Club’s money in accordance with the Bylaws, and with each aircraft lease. This document does not restate either. It is the Treasurer’s checklist, plus the few rules that live nowhere else.
The Board adopts and amends it (Bylaws §12.2). The officer compensation schedule that §14.2 mentions needs a vote of the members (§8.6(b)) and has not been adopted.
1. Every month
1.1 Set the home-base fuel price for the month just ended, by the 3rd, and record it in the Club’s published data (§4).
1.2 Bill members by the 5th (Operating Procedures §10.1).
1.3 Record each leased aircraft’s engine and propeller reserve accrual, at the rate and by the date that lease sets.
1.4 Post the month’s allocation to each reserve.
1.5 Send the owner of each leased aircraft the report the lease requires — hours, landings, maintenance, squawks opened and closed, and the reserve balance. Forward oil filter findings and oil analysis reports as soon as the Club has them.
1.6 Report to the Board: cash, reserve balances, income and expense against budget, and any member more than 30 days overdue (Bylaws §11.3). Report the same to the members at each membership meeting.
2. Every year
2.1 Prepare the budget before the year begins for the Board to adopt. It sets what goes to each reserve.
2.2 Update the three-year outlook for overhaul, lease-end, insurance, and replacement costs.
2.3 Obtain the overhaul quotation each lease requires, and reset that lease’s accrual rate.
2.4 Estimate what the Club will owe at the end of each aircraft lease, and fund the lease-end reserve toward it.
2.5 Report nonmember income — which includes interest on Club accounts — against the limits in Bylaws §2.4. Member and nonmember income are recorded separately (§6.8).
2.6 Collect the conflict-of-interest statements (§5), and arrange the review of the books (§6.2).
3. Reserves
3.1 The categories are in Bylaws §6.7. Each is carried as its own balance.
3.2 Dues fund fixed costs and the insurance, deductible, and contingency reserves. The base component of each hourly rate funds operating cost and the maintenance, overhaul, lease-end, and replacement reserves. The fuel component funds fuel.
3.3 A leased aircraft’s engine and propeller reserve is held as that lease requires: in its own account, identified as that aircraft’s reserve, in cash, and open to the owner’s inspection on request.
3.4 Spending a reserve outside its category takes a Board vote, recorded in the minutes.
3.5 A year-end operating surplus goes to the maintenance and replacement reserves, as does the amount the Club retains on a membership transfer (Bylaws §6.6(c)).
4. The monthly fuel price
4.1 The home-base price for a month is what the Club spent on fuel at its home base that month divided by the gallons it bought. If the Club bought none there, it is the posted self-serve price at the home base on the last day of the month.
4.2 The same figure caps reimbursement for fuel a member buys away from base (Operating Procedures §5.2), credited on the bill for the month of the flight.
5. Conflicts of interest
The rules are in Bylaws §8.7 — disclose it, do not take part in the discussion, do not vote.
5.1 Once a year, and on taking office, each director and officer gives the Secretary a short written statement of any dealing with the Club — a lease, loan, deposit, guaranty, paid role, or business relationship — held by them, a family member, or a business they control. Tell the Secretary if it changes.
6. Controls
6.1 A payment above $1,500 needs the approval of two directors. No one approves a payment to themselves.
6.2 After the fiscal year closes, someone other than the Treasurer checks the bank statements against the ledgers, the reserve balances, and member billing, and reports to the Board in writing. A member who is not a director does it once the Club has one; until then, another director does.
6.3 The Club reimburses an actual, documented, reasonable expense paid on its behalf (Bylaws §8.6(a)). Send the Treasurer a receipt showing the date, amount, vendor, and purpose within 60 days. No receipt, no reimbursement, and no flat allowance in place of one.
6.4 Reimbursement is not spending authority. An unbudgeted expense above the Board’s limit needs approval under Bylaws §7.7 before it is incurred.
7. Changes to these procedures
7.1 The Board may amend these procedures by majority vote, consistent with the Bylaws, with notice to members.