Finance & Audit Committee Charter (English)
Name: Finance & Audit Committee (Patronato)
Purpose:
To protect the Patronato’s integrity by ensuring sound financial management, transparent reporting, strong internal controls, and appropriate audit/review practices.
Authority:
The Committee may review any financial record, request supporting documentation, and recommend policies and corrective actions to the Board. The Committee does not approve spending by itself unless the Board formally delegates that authority.
Core Functions:
1. Budget & Planning
* Prepare the annual budget and major project budgets for Board approval.
* Monitor budget execution and recommend amendments.
2. Financial Reporting
* Ensure monthly financial statements are produced and reviewed.
* Report to the Board on cash position, restricted funds, liabilities, and commitments.
3. Internal Controls
* Maintain rules for cash handling, deposits, reimbursements, procurement, and payments.
* Recommend approval thresholds and dual-authorization where appropriate.
* Ensure segregation of duties and secure recordkeeping.
4. Donations & Restricted Funds
* Verify donation recording (cash and in-kind) and compliance with donor restrictions.
* Confirm donation receipts/acknowledgements and transparent tracking.
5. Audit / External Review
* Recommend annual audit/review needs based on risk and budget size.
* Coordinate with external accountant/auditor and monitor implementation of findings.
6. Compliance
* Oversee timely filings, reporting, and retention of invoices, receipts, contracts, and bank records.
7. Procurement & Contract Oversight
* Review financial reasonableness of major purchases and contracts before Board action.
* Confirm payments match accepted deliverables.
8. Assets & Inventory
* Maintain an asset register and ensure periodic inventory reconciliation.
* Oversee policies for tagging, custody, and disposal.
9. Fraud Risk & Ethics (Financial)
* Monitor fraud risk areas and recommend safeguards and conflict-of-interest controls.
Membership:
3–5 members appointed by the Board; at least one member with financial/accounting experience preferred. The Treasurer should be a standing member; the Chair should not be the Treasurer.
Meetings:
At least monthly; special meetings as needed. Minutes and action items must be recorded.
Quorum & Voting:
Majority of members present. Recommendations pass by simple majority.
Reporting to the Board:
Written monthly report including: financial statements, bank reconciliation status, restricted funds summary, and any exceptions/risks.
Monthly Finance Package (what the committee should receive)
1. Bank statements + bank reconciliation summary
2. Income & Expense statement (month and YTD)
3. Balance sheet
4. Cash position (available cash and restricted cash)
5. Restricted funds report (donor, purpose, balance, movements)
6. List of payments made (vendor, purpose, amount, authorization)
7. Outstanding obligations (rent, fuel, maintenance, contracts)
8. Asset purchases & inventory changes
9. Exceptions log (missing receipts, late deposits, policy deviations)
10. Action items and deadlines
Core Controls for Cash Donations
1) Two-person rule (when feasible)
* Cash counting is done by two people (collector + verifier).
* Both sign a Cash Count Sheet stating totals by denomination.
2) Immediate documentation
* Issue a numbered receipt for any cash donation when possible.
* For donation boxes: use tamper-evident seals and log seal numbers.
3) Same-day or next-business-day deposit
* Deposit cash no later than the next business day.
* No “borrowing” from donation cash for expenses.
4) Separation of duties
* Person who collects cash should not be the same person who records it in the books and reconciles the bank.
5) Monthly spot checks
* Finance & Audit does unannounced reviews of:
* Receipt sequence gaps
* Donation box seal logs
* Deposit timeliness
Controls for Bank Transfers (SPEI/Deposits/Online)
1) Dedicated bank account
* Patronato uses its own bank account(s), separate from any individual.
2) Donation reference tracking
* Require a reference concept (e.g., “Ambulancia 602”, “Combustible”, “Equipo Médico”).
* Maintain a Donor Ledger: date, amount, method, purpose, restrictions.
3) Dual authorization
* For transfers out: require two approvals (two signers or signer + documented board/committee approval, depending on banking limits).
4) Monthly bank reconciliation
* Completed monthly and reviewed by someone independent of day-to-day cash handling.
* Exceptions reported to the Board.
Controls for Fundraising Events (Raffles, Dinners, Sales, Collections)
1) Event budget & pre-approval
* Event plan must include:
* Expected revenue sources (tickets, sponsor tables, raffles)
* Expected expenses
* Responsible persons
* Cash handling plan
* Board or Committee approves before spending.
2) Ticket and sales controls
* Use pre-numbered tickets and track issued/returned/voided.
* Maintain a Sales Log by seller or station.
3) Cash handling stations
* Assign a cash manager and a separate recorder.
* Use secure cash boxes; record start cash and end cash.
4) Event close-out
* Prepare an Event Reconciliation Report within 48–72 hours:
* Tickets sold vs cash received
* Sponsorship receipts
* Expenses with receipts
* Net proceeds
* Deposit funds promptly and attach deposit slips to the report.
Payments, Purchases, and Reimbursements
1) Purchase approval thresholds (example)
≤ $2,000 MXN: one approver + receipt
$2,001–$10,000 MXN: two approvals
> $10,000 MXN: committee review + board approval (or documented emergency exception)
2) No cash payments when possible
* Prefer bank transfer or invoice-supported card payments.
* If petty cash exists, keep it small and controlled (below).
3) Reimbursements
* Only with:
* Original receipt (factura if required)
* Purpose stated
* Approval before payment
* No reimbursement for undocumented spending.
Petty Cash
* Fixed fund (example $2,000–$5,000 MXN max)
* Every disbursement requires:
* Voucher + receipt + signature
* Replenishment equals vouchers/receipts total
* Monthly count by Finance & Audit
Restricted Funds and Donor Trust
1) Restricted fund ledger
Track each restricted donation by:
* Donor, purpose, balance, expenditures, remaining amount
2) Evidence of use
For equipment purchases:
* Quote/invoice
* Proof of delivery
* Photo or asset tag entry
* Assignment to HCBVEC (if applicable)
Monthly Finance & Audit Checklist (Minimum)
* Bank reconciliation completed and reviewed
* Deposit timeliness check (cash/event funds)
* Receipts and ticket sequences reviewed
* Restricted funds report updated
* Payments list reviewed vs approvals
* Exceptions log updated and reported
The Fundraising / Development Committee is responsible for generating and sustaining the resources that allow the Patronato to meet its mission, while protecting donor trust and the Patronato’s reputation. Its principal functions typically include:
1. Fundraising strategy and annual plan
* Prepare an annual fundraising plan with revenue targets, campaigns, timelines, and assigned responsibilities.
* Diversify income streams (monthly donors, major gifts, events, corporate sponsorships, grants, in-kind support).
2. Donor acquisition and stewardship
* Recruit new donors and sponsors; maintain relationships with existing donors.
* Oversee donor thank-you processes, recognition, and periodic impact updates (what donations achieved).
3. Campaign and event management
* Plan and execute fundraising events (dinners, raffles, open house, station events).
* Ensure ticketing, sponsorship packages, publicity, and post-event reporting are completed.
4. Corporate partnerships and sponsorships
* Build sponsorship tiers and benefits (e.g., logo placement, banners, ambulance/fuel sponsorship).
* Manage partner agreements, deliver promised recognition, and maintain renewal schedules.
5. Grant identification and applications
* Identify grant opportunities and coordinate proposal writing, compliance, and reporting requirements.
* Maintain a grant calendar and document library (legal docs, budgets, proof of nonprofit status).
6. Communications for fundraising
* Coordinate public messaging and fundraising materials: brochures, social media posts, donor letters, videos, and website content.
* Ensure consistency, professionalism, and alignment with the Patronato’s mission and non-political posture.
7. Donor database and records (working with Finance)
* Maintain a donor CRM or donor log: contacts, giving history, restrictions, receipts/acknowledgements.
* Coordinate with Finance & Audit to ensure accurate recording and compliance with restrictions.
8. Ethics and donor acceptance guidelines
* Recommend policies for accepting or declining donations (reputation risk, conflicts of interest, illegal/conditional gifts).
* Prevent “pay-to-influence” arrangements; protect the Patronato from political entanglement.
9. Volunteer and community engagement
* Build community supporter programs (monthly donor club, “Adopt-a-Unit,” “Friends of the Station”).
* Coordinate volunteer fundraising teams and training for proper donor interaction.
10. Reporting to the Board
* Provide monthly/quarterly updates: funds raised vs target, pipeline of major gifts, campaign performance, upcoming events, and risks/issues.
12-month fundraising calendar tailored for a Patronato supporting Sector 6 (El Centenario / Chametla / La Paz area)
Always-on (every month)
Monthly donor program** (“Amigos de Bomberos Sector 6”): recruit 10–25 new monthly donors/month.
One impact post/week** (photo + short story + “how to donate”).
Sponsor follow-up cadence**: 10 business calls/visits per month.
Thank-you discipline**: acknowledgements within 48–72 hours; monthly donor update on the 1st week.
12-Month Calendar (Jan - Dec)
January 2027 — “Transparency & Trust Month”**
Primary:** Publish “Where the Money Went” mini-report (high credibility builder).
Secondary:** Sponsor breakfast / briefing at station: priorities for the new year.
Deliverables:** Financial transparency summary + 12-month priorities list.
February 2026 — “Carnaval / High-Visibility Season”**
Primary:** Business sponsorship push (banners, ambulance/fuel sponsor, station sponsor).
Secondary:** “Round-up” style donation jars at local businesses (with receipts/logs).
Deliverables:** Sponsorship brochure + tier sheet; sponsor invoice/receipt process.
March 2026 — “Home & Wildland Readiness”**
Primary:** Community safety workshop donation drive (fire extinguisher + home safety talk).
Secondary:** “Adopt-a-Tool” campaign (helmets, gloves, trauma kits; donor picks item).
Deliverables:** Price list of needed items + donor recognition board.
April 2026 — “Semana Santa / Visitor Season”**
Primary:** Tourist-facing collection points (partner hotels/restaurants: QR donation + tip jar).
Secondary:** Beach/road safety public outreach with donation call-to-action.
Deliverables:** QR posters + bilingual sign cards for partners.
May 2026 — “Major Gifts Month”**
Primary:** 10–15 major-donor meetings (target higher gifts for equipment/repairs).
Secondary:** Online campaign: “Fuel for Ambulance 602” (clear goal, weekly progress).
Deliverables:** One-page case statement + giving levels.
June 2026 — “Hurricane Preparedness Drive”**
Primary:** Preparedness campaign tied to storm season (generators, saws, tarps, medical).
Secondary:** Corporate “Preparedness Partner” sponsorships for local businesses.
Deliverables:** Preparedness needs list + sponsor recognition plan.
July 2026 — “Community Appreciation / Station Open House”**
Primary:** Open House fundraiser at the station (family day, demonstrations, tours).
Secondary:** Membership recruitment day for monthly donors.
Deliverables:** Event plan + volunteer assignments + cash-handling plan.
August 2026 — “Día del Bombero (22 Aug) Campaign”**
Primary:** “Honor a Bombero” donor drive (sponsor a volunteer’s gear/training).
Secondary:** Media week: daily stories of responses + donor thanks.
Deliverables:** Recognition certificates + social media templates.
September 2026 — “Independence Month / Community Pride”**
Primary:** Raffle fundraiser (with strict ticket control and reconciliation).
Secondary:** Local business “matching week” (one sponsor matches donations up to X).
Deliverables:** Raffle rules, numbered tickets, reconciliation sheet.
October 2026 — “Safety Month (Fire Prevention)”**
Primary:** Fire Prevention Week campaign: school visits + donation appeal.
Secondary:** Sell branded items (shirts, patches, stickers) with inventory control.
Deliverables:** Simple merchandise inventory log + pricing + reorder plan.
November 2026 — “Gratitude & Year-End Launch”**
Primary:** Year-end appeal letter (mail + email + social) with a specific target.
Secondary:** “Sponsor renewal” outreach (lock in next year’s commitments).
Deliverables:** Annual impact one-pager (calls, lives helped, equipment bought).
December 2026 — “Posadas / Giving Season”
Primary:** Holiday giving campaign (monthly donors + one-time gifts).
Secondary:** Community “toy/food + donation” event (keep donations separate and logged).
Deliverables:** Donation thermometers, weekly totals, public thank-you list.
Minimum metrics to track each month (keep it simple)
* New monthly donors, total monthly donors, monthly recurring revenue
* One-time donations (count and total)
* Sponsor pipeline (prospects contacted / meetings / closed)
* Event net proceeds (gross – documented expenses)
* Restricted funds balance by purpose (fuel, training, equipment)
The Governance & Nominations Committee ensures the Patronato has a capable, ethical, legally compliant Board and clear rules for how the organization is governed. Its functions typically include:
1. Board composition and recruitment
* Define the skills/experience needed on the Board (finance, legal, medical, business, community leadership).
* Identify, vet, and recruit candidates for Director/officer positions.
2. Nominations and elections process
* Run the nominations process and present a slate to the Board/assembly (as applicable).
* Ensure elections are fair, documented, and consistent with bylaws.
3. Bylaws and governance documents
* Draft, review, and recommend updates to bylaws, committee charters, and key governance policies.
* Ensure governance documents match actual practice and legal requirements.
4. Board orientation and training
* Onboard new Board members (mission, finances, legal obligations, conflict-of-interest rules).
* Provide annual refreshers on duties and decision-making standards.
5. Ethics, conflicts of interest, and integrity controls
* Maintain the Code of Ethics and Conflict-of-Interest Policy.
* Collect annual disclosures, manage recusals, and ensure decisions are documented properly.
6. Board performance and accountability
* Organize periodic Board self-evaluations and committee effectiveness reviews.
* Track attendance, participation, and completion of assigned actions.
7. Meeting governance and records
* Promote good meeting practices: agendas, minutes, voting records, resolutions, and document retention.
* Ensure key decisions (especially financial/asset matters) are supported by formal resolutions.
8. Succession planning
* Plan for orderly transitions in leadership (President, Treasurer, committee chairs).
* Maintain a pipeline of future leaders and advisors.
9. Risk oversight related to governance
* Identify governance risks (reputational risk, undue influence, political exposure, unclear authority lines).
* Recommend safeguards to protect the Patronato’s non-political and mission-focused posture.
10. Compliance posture (high level)
* Monitor that the Patronato is operating within its stated purpose, with proper authority and documentation.
* Coordinate with Finance/Audit on governance aspects of compliance and transparency.
The Projects & Procurement Oversight Committee ensures that donated funds and resources are converted into real operational capability (equipment, infrastructure, vehicles, training, services) through disciplined planning, transparent purchasing, and verification that deliveries match what was approved.
Its typical functions include:
1. Project identification and prioritization
* Maintain a rolling list of operational needs (ambulance readiness, PPE, radios, station repairs, training).
* Recommend priorities based on risk, impact, urgency, and available funding.
2. Project scoping and planning
* Define scope, specifications, timelines, and success criteria for each project.
* Confirm project budgets and whether funding is restricted or unrestricted.
3. Procurement planning and vendor sourcing
* Develop procurement plans for major purchases and services.
* Identify qualified vendors; ensure fair comparison (quality, warranty, delivery time, compliance).
4. Quote and bid management
* Require competitive quotes (commonly 2–3) for purchases above set thresholds.
* Document justification for sole-source or emergency purchases.
5. Specification control
* Ensure technical specs match operational requirements (e.g., medical equipment standards, oxygen-clean components, vehicle compatibility).
* Prevent “substitution” of lower-quality items without written approval.
6. Contract and purchase authorization coordination
* Coordinate required approvals (committee recommendation, Board approval, Finance/Audit controls).
* Ensure contracts include clear deliverables, price, warranties, payment terms, and acceptance criteria.
7. Delivery, acceptance, and commissioning
* Verify goods/services were received, functional, and complete before final payment.
* Require receiving documents, photos, serial numbers, and commissioning/testing records when applicable.
8. Asset registration and handover
* Ensure new assets are entered into the asset register and tagged.
* Coordinate formal handover/use agreements where needed (especially if title/ownership rules apply).
9. Change orders and cost control
* Review and document changes in scope, price, or timeline.
* Prevent cost overruns through staged approvals and “not-to-exceed” limits.
10. Supplier performance and warranty follow-up
* Track vendor performance (delivery delays, defects, service quality).
* Ensure warranties, maintenance schedules, and spare parts/support plans are in place.
11. Transparency reporting
* Provide simple “project status” updates to the Board and donors: budget, spend-to-date, % complete, photos, outcomes.
12. Risk management for projects
* Identify safety/operational risks (installation hazards, compliance, training requirements).
* Ensure training and SOP updates accompany new equipment where needed.
The Communications & Community Relations Committee protects and strengthens the Patronato’s public credibility and community support by ensuring clear, accurate, consistent messaging and strong relationships with key stakeholders.
### Typical functions
1. Public messaging and brand control
* Maintain official messaging, logos, tone, and approved descriptions of the Patronato and its mission.
* Ensure “non-political, public-benefit” positioning is consistent in all materials.
2. Media relations
* Serve as the primary point of contact for media inquiries.
* Prepare press releases, official statements, and spokesperson talking points.
3. Community and International outreach and engagement
* Build relationships with neighborhoods, schools, businesses, civic groups, and local leaders.
* Organize community briefings, open house events, and safety-education opportunities.
* Locate and communicate with international communities and agencies that can donate equipment.
4. Digital communications
* Manage website, social media pages, and public announcements (including emergency updates when needed).
* Create a consistent posting cadence and content calendar.
5. Public information materials
* Produce brochures, flyers, sponsor recognition materials, signage, and donation instructions (QR codes, bank info, receipt guidance).
* Ensure bilingual communications where appropriate (Spanish/English).
6. Reputation management and issue response
* Monitor community feedback and correct misinformation promptly and respectfully.
* Maintain a documented process for responding to complaints or sensitive incidents (with Governance/Legal coordination).
7. Donor and sponsor recognition (in coordination with Fundraising)
* Deliver promised recognition benefits (banners, plaques, social posts, event mentions).
* Publish “impact stories” showing what donations accomplished (with approved data and photos).
8. Stakeholder coordination
* Maintain relationships and communication lines with Protección Civil, C4, municipal offices, hospitals, and partner organizations—strictly within the Patronato’s role.
* Coordinate joint public messages when appropriate.
9. Photography/video standards and permissions
* Establish rules for patient privacy, incident imagery, consent, and respectful storytelling.
* Maintain a media library organized by project/event for future use.
10. Reporting to the Board
* Provide monthly summaries: outreach actions completed, community sentiment, media interactions, campaign performance support, and any reputational risks.
The Legal / Compliance Committee protects the Patronato by ensuring that decisions, fundraising, contracts, and public activities are conducted within the law, the bylaws, and ethical standards, and that legal risks are identified early.
Typical functions
1. Legal compliance oversight
* Verify the Patronato’s actions comply with its bylaws/estatutos, governing minutes/resolutions, and applicable laws and regulations.
2. Contract and agreement review
* Review and recommend terms for contracts, MOUs, sponsorship agreements, service agreements, leases, and vendor purchases (deliverables, warranties, liability, termination, payment terms).
3. Donor and fundraising compliance
* Ensure fundraising activities are lawful (raffles, events, collections), properly documented, and consistent with donor restrictions and ethical standards.
* Review donor acceptance standards (when to accept/decline funds due to reputational or legal risk).
4. Governance documentation support
* Ensure key decisions are supported by proper board resolutions, minutes, and authorization evidence—especially for major purchases, assets, and commitments.
5. Regulatory and fiscal coordination
* Coordinate with Finance & Audit to confirm timely filings, record retention, invoicing/receipts practices, and compliance-related documentation (without duplicating Finance’s work).
6. Risk, liability, and insurance oversight
* Identify legal risks (accidents, events, public claims, equipment use, premises) and recommend insurance coverage and risk controls (e.g., liability, property, vehicle, D&O if applicable).
7. Data protection and confidentiality
* Set rules for handling personal data, donor lists, incident-related information, photos/video, and privacy-sensitive communications.
8. Employment/volunteer and conduct issues (as applicable)
* Review policies related to volunteer conduct, discipline interfaces (when Patronato activity touches volunteers), and protective measures against harassment, discrimination, or misuse of authority.
9. Advocacy and “non-political” boundaries
* Ensure any public policy engagement remains within permitted limits and is documented appropriately, avoiding partisan activity or prohibited benefits to specific donor sectors.
10. Legal counsel management
* Identify when outside counsel is needed, coordinate requests, and track follow-up on legal recommendations.