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Cash Flow Management Policy and Procedure

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Our policy is for the Trustee for Finance and Treasurer to work with Budget Managers, other entities within UUCK, and as needed some selected individuals in the congregation to assure we have adequate cash flow to achieve our annual goals provided revenues are within budget.

This will be done using the following procedural guidelines:

  1. Keep accounting up to date within about 10 days.
  2. Identify possible cash flow problems in the coming 3-5 weeks,
    a. Looking at status and monthly budget predictions.
  3. Working with Budget Managers, see if some expenses can be delayed or reduced.
  4. Encourage the congregation to pay pledges early due to possible cash flow problems.
  5. Talk with various UUCK entities to see if internal loans can be arranged.
  6. See if loans can be arranged with some key pre-selected individuals in the congregation.
    1. These people will be approached early in FY2010, regardless of cash flow.
    2. Loan arrangements would be agreed to with these people before activation.
    3. Activate each loan only when needed, on 10-day notice, pay back when able.
    4. These would be signature loans without collateral. 3-5 people, $2000-$4000 each.
    5. Subordinated to other obligations.
    6. 4% Annual interest, payable quarterly. Renegotiable if not paid back in 1 year.
    7. Every attempt will be made to pay back within 1 year.
  7. If the above is insufficient to address the problem, re-budget.
  8. The Board of Trustees will review this policy annually in July.

Approved 07/08/2009

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