Expense Management Policy and Procedure

^{Effective Date: August 1, 2024}

Purpose

This policy establishes guidelines for managing day-to-day expenses charged to the company credit card (e.g., NOPI-issued Expense Card) and ensures payroll, rent, and advanced funds are processed through NOPIʼs bank account. It aims to streamline expense management, maintain financial control, and ensure compliance with company and nonprofit regulatory requirements.

Scope

This policy applies to all volunteers, contractors, and employees of NOPIʼs fiscally sponsored programs who are authorized to make purchases, incur expenses, or receive advanced funds on behalf of the organization.

Definitions

• NOPI-issued Expense Card: The company credit card for day-to-day business expenses.
• NOPI Bank Account: The bank account used for payroll, rent payments, and advanced funds.
• Day-to-Day Expenses: Routine operational expenses excluding payroll, rent, and advanced funds.
• Payroll Expenses: Payments made to employees for their services.
• Rent Expenses: Payments made for leasing office space or other properties.
• Advanced Funds: Monetary advances provided to programs or departments prior to actual expenditure, contingent upon an award letter or grant agreement submission.

Authorized Use of Expense Card

1. Eligible Expenses: The NOPI-issued Expense Card can be used for the following types of day-to-day business expenses:
   • Office supplies and equipment
   • Travel and accommodation
   • Business meals and entertainment
   • Marketing and engagement
   • Professional services
   • Software and subscriptions
   • Any other operational expenses approved by management
     
     
2. Ineligible Expenses: The NOPI-issued Expense Card should not be used for:
   • Payroll expenses
   • Rent payments
   • Personal expenses
   • Cash advances or withdrawals

Procedures for Charging Day-to-Day Expenses

1. Authorization:
   • Only authorized employees may use the NOPI-issued Expense Card.
   • Authorization must be obtained from a manager or the finance department for expenses exceeding $500.
2. Expense Reporting:
   • All expenses must be documented with receipts and detailed descriptions.
   • Expense reports should be submitted within seven (7) days of the transaction.
   • Reports must include the expense's date, amount, purpose, and category.
3. Approval Process:
   • Submitted expense reports will be reviewed by the finance department.
   • Any discrepancies or unapproved expenses will be flagged and addressed with the employee.
4. Reconciliation:
   • Monthly statements from NOPI-issued will be reconciled against submitted expense reports.
   • The finance department will ensure all transactions are legitimate and within policy guidelines.
   • If a user has five (5) or more missing receipts, their NOPI-issued Expense Card will be frozen until the missing receipts are provided or the issue is resolved.

Expense Card Initial Balance and Fund Requests

Programs with available funds exceeding $1000 will receive an initial $500 available balance on their NOPI-issued Expense Card. To request additional funds:

1. Download the Banking/Expense Mobile App
   • Use the app to check your balance, request funds, upload receipts, categorize transactions, and more.
     • Bill Spend & Expense
       https://www.bill.com/product/download
     • Mazlo
       Apple | Android

1. Request Funds for Card
   • Bill Spend & Expense
     • Open the Bill Spend Mobile App
     • Locate and select the "+" sign
     • Choose "Request Funds" from the options presented
   • Mazlo
     
     • Email accounting@thenopi.org with your requested amount

Payroll and Rent Payment Procedures

1. Payroll:
   • All payroll expenses will be processed through Gusto.
   • The payroll department is responsible for ensuring accurate and timely payments to employees.
   • Any changes to payroll information must be communicated to the payroll department at least five (5) business days before the payroll date.
2. Rent:
   • Rent payments will be processed through the NOPI/Mazlo bank account.
   • The finance department will ensure monthly rent payments are scheduled and paid on time.
   • Any changes to rent agreements or payment details must be reported to the finance department immediately.

Advanced Funds Policy

1. Effective Date:
   Effective July 1, 2024, NOPI, Inc. will charge all advanced funds a 6% interest rate on all non-reimbursable grants.
2. Interest Calculation:
   • Interest will be calculated at a monthly rate of 6%, based on the previous month’s negative balance.
   • Interest is not compounded and is only charged on the outstanding balance, not the deficit.
3. Repayment Terms:
   • Programs are expected to repay the advanced funds, including accrued interest, on a monthly basis following the advance.
   • Failure to repay monthly will result in continued accrual of interest.
4. Utilization of Advanced Funds:
   Programs must utilize the advanced funds strictly for the purposes for which they were granted.
5. Non-Compliance:
   Non-compliance with this policy may result in the suspension of further funding or the termination of the fiscal sponsorship agreement.

Compliance and Accountability

1. Policy Compliance:
   • Employees are expected to comply with this policy.
   • Non-compliance may result in disciplinary action, including revocation of credit card privileges or termination of employment.
2. Audit and Review:
   • The finance department will conduct regular audits of expense reports and credit card statements.
   • This policy will be reviewed annually and updated as necessary.

Contact Information

Employees should contact the finance department at accounting@thenopi.org with questions or for clarification regarding this policy.

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