Article Index

ARTICLE 5: FINANCE, TRUST, CONTRACTS, AND OBLIGATIONS

Sec. 5.1 Financial Account and Maintenance of Funds

a. The board of directors shall establish and maintain an account in an insured financial institution for the purpose of protecting any funds obtained to operate and maintain the financial requirements of the NSHNC.

b. These funds shall be held in the name of the NSHNC and shall be used to fund board-approved NSHNC business operations and activities, in accordance with federal, state, and local laws and regulations.

c. All funds, accounts, records, and materials shall be maintained in accordance with local, state, and federal laws and regulations based on filed tax status, charters, and established bylaws. The board of directors shall maintain the integrity of these assets for the needs of the NSHNC.

Sec. 5.2 Administration of Funds

a. Two (2) designated board members, selected by a majority vote of the board of directors, shall administer any funds that are required to be used for payment of obligations or contracts.

b. Any financial instrument such as check, money order or draft shall require the signatures of the two designated board members. Any cash monies shall require the signatures of the two (2) designated board members.

c. Either or both designees may be replaced by a majority of the board. Designees shall be reviewed by the board every two (2) years.

Sec. 5.3 Accounting Year

The accounting year of the NSHNC shall be the twelve months beginning January 1 and ending December 31.

Sec. 5.4 Financial Reports

a. The NSHNC shall make all reports to the local, state and federal government as required by law.

b. The treasurer shall maintain all funds, accounts and property of the NSHNC. A monthly report of their condition shall be issued to the board of directors. All books and records, including financial documents, shall be available for review by the members, the general public or government agencies at any time reasonably requested.

c. A financial report shall be available for review at any general membership meeting.

Sec. 5.5 Obligations and Contracts

a. The board of directors shall administer obligations and contracts on behalf of the general membership of the NSHNC in accordance with Article 5, Sec. 5.1.

b. Any payment to board members or members shall be limited to reimbursement for the costs incurred by them for expenditures as authorized by a majority vote of the board of directors.

c. Written proof of authorized expenditures, such as receipts or invoices, must be submitted to the board of directors prior to approval of any payment.

d. At no time shall any fee, lien or salary be issued to or by any board member or member against the established accounts or assets of the NSHNC.

Sec. 5.6 Dissolution and Distribution of Assets

Upon dissolution of the NSHNC, the board of directors shall pay or make provisions for the payment of all liabilities of the NSHNC. The board shall refund any remaining funds provided to the NSHNC by the City of Kent. The board shall dispose of the assets of the NSHNC in such manner, or to such organization or organizations organized and operated exclusively for charitable, educational, religious, or scientific purposes as shall at the time qualify as an exempt organization or organizations under Sec. 501 (c)(3) of the Internal Revenue Code of 1986 (or corresponding provision of future United States Internal Revenue Law). All assets shall be disposed of in accordance with all applicable Federal, State and local laws and regulations in effect at the date of the dissolution.