1. as in my
experience an
organization always spends all it makes, financial
management on an international
level consists not of carefully balancing
income above
outgo in an
effort to save a
surplus in an
organization, but of
(a) preventing an
org from spending more than it makes and
(b) setting aside enough
money from its
income to
care for
salvage operations and
salvage expenses.
(HCO PL 18 Jan 65) 2. financial
management is ordinarily done by the
Association Secretary, the
Organization Secretary or the
Treasurer and possibly, in some
cases, the
Director of Accounts, but is always under the direct
responsibility of the
Association Secretary no
matter who wears the
hat. It is the
purpose of the
hat to ensure
solvency of the
organization and its divisions. The
basic principle of financial
management is a simple one.
Income must be greater than
outgo.
(HCO PL 3 Jun 59) 3. purpose: make certain the
organization makes
money and continues in good
credit.
Hat worn by: the
Association Secretary and by his deputation, the
Director of
Administration.
Policy comes from
Association Secretary.
Execution comes from
Director of
Administration. Financial
management guarantees
solvency. It does not concern itself with accuracy of
bills, payments or
collection. This is the
job of the
Treasurer and by deputation, the
Disbursement Clerk. The
cost of an
item must be less than
selling price. All
pertinent items to
cost no
matter how remote are part of the
cost. Using this rule, financial
management prices
items. He adds to
cost all
profit that can be made and still make the
item sell. He publishes, then, an
item's "
price." That the
price of an
item is collected is the
business of the
Treasurer who
issues proper orders concerning it. Financial
management must now
establish cost and
price of all
items sold. And must adjust, for
organization credit, what
bills must be
paid in concert with how much
money there is to pay them. (
HCO PL 15 May 70
II, Financial
Management)