FINANCIAL REGULATION

Adopted on 11 March 2013.
Pursuant to Article 33 of the Articles of Association of AIACE.

Article 1 – Financial year

The financial year shall start on 1 January and end on 31 December of each year.

Article 2 – Resources

The resources of the central bodies of AIACE shall consist of:
– an annual contribution paid by the national branches before the end of the financial year in question, on behalf of each of their members. These payments shall be made in two instalments, the first in April and the balance before the end of the financial year in question. The April payment shall correspond to 50% of the annual contribution that was paid in the preceding year and the balance shall be based on the number of members on 31 October of the financial year in question. The amount of the contribution for each member shall be set by the Board of Management and confirmed or amended each year;
– subsidies and gifts granted to AIACE;
– any other resources permitted by law.
Each national branch shall decide on the subscription to be paid annually by the members affiliated to that branch.

Article 3 – Expenditure

AIACE expenditure shall include:
– the operating costs of the central bodies, including staff costs, travel, accommodation and subsistence costs for participants at meetings of the Bureau,, the Board of Management, working parties, ad hoc groups as well as for persons duly authorised by AIACE to attend other meetings or participate in other activities;
– contribution to expenditure relating to the organisation of General Assemblies and Annual Congresses incurred by a national branch and authorised by the Board of Management;
– expenditure incurred by the central bodies and the national branches on behalf of the institutions of the European Union for welfare support for pensioners of the EU;
– all other expenditure for the benefit of the Association.

Article 4 – Accounting

The accounts will be held on a computer, using accounting software that complies with European standards. The Treasurer General shall keep the accounts in euros on the basis of a system of accounts specific to AIACE’s management needs.

Article 5 – Budget

The Treasurer General shall draw up a draft budget that must balance and that shall include – in summary form – all financial commitments planned for the current financial year. National branches must submit to the Treasurer General a forecast of their planned expenditure for welfare support activities for the financial year in question and at least one year in advance in order to facilitate the preparation of the draft budget.
The Treasurer General shall submit the draft budget to the President of AIACE before 15 January each year. The President shall submit the draft to the Board of Management for approval at its first meeting during the financial year in question. The President or the Treasurer General shall submit the draft budget for adoption by the General Assembly.
Between 1 January and the adoption of the budget, expenditure in each category shall be carried out within the limit of half the expenditure of the previous financial year (except for expenditure on welfare support, which shall not exceed the total amount of expenditure in that category during the previous financial year). This interim procedure shall be confirmed after the General Assembly has adopted the budget.
Debt financing shall be prohibited unless specifically authorised by the General Assembly.
It is hereby recommended that the total amount of reserves be kept at a level corresponding to at least 50% of the total annual budget.

Article 6 – Procedure for revenue and expenditure

The draft budget, once approved by the President, and the budgets subsequently approved by the Board of Management and the General Assembly, authorises the Treasurer General to collect revenue and other income and to carry out expenditure.
– Any revenue or expenditure shall be substantiated by supporting documentation (bill, declaration, receipt) indicating the nature of the revenue or expenditure. Each supporting document relating to expenditure shall be signed by the person who carried out this expenditure.
– The supporting documents relating to revenue or expenditure shall be numbered according to their chronological accounting entry in the computerised system. Eachaccounting transaction entered in the general ledger or the accounting balance shall show the number given in the accounting entry.
– Revenue and expenditure shall go through a bank account set up in the name of the Association. Each payment authorisation shall be signed by the Treasurer General as well as by a person mandated by the AIACE President. The President may delegate authority to the Treasurer to sign payment authorisations on his/her own. In the event of the Treasurer being prevented from attending to his duties, a person mandated by the President shall represent him/her.
As far as possible, the Treasurer General shall be responsible for ensuring that all revenue due to AIACE is collected and for the management of funds in accordance with the principles of prudence and sound financial management. He/she shall also be responsible for ensuring that the same principles apply to expenditure that they are in line with the budget and that everything is based on supporting documentary evidence.
National branches shall report on their use of funds for welfare support activities in accordance with the guidelines laid down by the Treasurer General in order that the efficient and effective use of these funds can be verified.
Before each meeting of the Board of Management, the Treasurer General shall submit a statement of revenue and expenditure to the AIACE President. The President or the Treasurer General shall communicate the statement to the Board.

Article 7 – Accounts

Before 1 March of each year the Treasurer General shall draw up a draft balance sheet and a draft revenue and expenditure account as at 31 December of the previous year. He/she shall communicate them to the AIACE President and submit them to the auditors for supervision.
The auditors shall inspect the accounting documentation made available by the Treasurer General and submit their report to the President on 15 March of each year at the latest.
The auditors shall declare whether the accounts accurately reflect the transactions carried out by AIACE International during the financial year in question as well as its financial position at the account closing date and whether the Treasurer General has carried out his/her duties, as described in Article 6 above, with due diligence.
The Treasurer General shall submit the balance sheet and the final revenue and expenditure account as well as the auditors’ report to the first annual meeting of the Board.
The approval of the revenue and expenditure account and of the balance sheet by the General Assembly shall constitute discharge of the Treasurer General for the financial year concerned.

Article 8 – General Assembly and Congress

The management body of a national branch or any other body entrusted with organisation of a general assembly or Congress shall submit a budget estimate of revenue and expenditure for such events to the AIACE Board of Management.
The Board of Management may grant the organising branch a financial contribution as an advance to be reimbursed at a later stage. This advance will be cleared once balance sheet and the corresponding supporting documentation has been submitted, and no more than three months after the Congress has taken place.
In the event that the statement of expenditure and revenue attached to the report by the organising branch shows a deficit, the Board may decide to cover this deficit in whole or in part out of AIACE International funds.

Article 9 – Travel, accommodation and subsistence costs

The travel, accommodation and subsistence costs for participants in meetings of the Bureau, Board of Management, working parties, ad hoc groups as well as of persons duly authorised by AIACE to attend other meetings or participate in other activities shall be reimbursed in accordance with the conditions and procedures set in the Annex to this regulation.

Article 10 – Date of entry into force

The financial provisions of this financial regulation and its annex on the reimbursement of travel, accommodation and subsistence costs shall enter into force on 1 April 2013.
All previous provisions are revoked.

Article 11 – Responsibility for implementation

The President is responsible for implementation of this regulation and its annex.

ANNEX TO THE FINANCIAL REGULATION