The AWNA must operate in a financially sound and prudent manner.  Thus, the Executive Director must:

• Ensure the AWNA’s financial well-being by not causing or allowing situations that jeopardize the AWNA

• Conduct the AWNA’s financial affairs in a manner that meets its obligations under relevant legislation and funding agreements

• Adhere to the approved budget

 

Parameters:

 

1. Actual allocations must follow Board-approved priorities, relevant legislation, and funding agreements.

 

2. The Executive Director presents at each Board meeting a current income statement and balance sheet that has been prepared no more than forty-five (45) days prior to the meeting.

 

3. The Executive Director must bring to the Board any financial matters that fall outside of the approved budget prior to making any commitments or expenditures in these areas.  In emergency situations, the Executive Committee may approve such a commitment or expenditure. The Executive Committee must report any such approvals at the next Board meeting.

 

4. Accounts Payable

The Executive Director ensures that:

a) Accounts payable are processed in a timely manner.

b) Tax payments and other government-ordered payments are filed accurately and/or paid on time.

 

5. Accounts Receivable

a) Accounts receivable that are received within thirty (30) days of the date of the invoice are eligible for a 2% discount.

 

b) Advertisers

 

i. Cash in advance (COD) is required for advertisers with accounts that are sixty (60) days or more in arrears.  Exceptions may be made only if the advertiser that is in arrears:

 

• Has agreed to a payment plan that is acceptable to the AWNA and

• Is meeting the requirements of a payment plan

 

The AWNA does not carry outstanding client balances over 90 days.  Payment plans should be structured so that account balances do not age beyond 90 days.  In the event that a client is unable to meet the requirements of such a payment plan, further ad placements will not be made on behalf of the client until such requirements are met.

 

ii. New advertisers pay in advance until credit is established with the AWNA.  The only exceptions are advertising agencies that have accreditation with the Canadian Newspapers Association (CNA) or the Canadian Association of Broadcasters (CAB).

iii. All new accounts for advertisers, and any accounts that have been inactive for eighteen (18) months or more, must complete a credit application.

iv. An Equifax report must be requested for all new accounts, and must be reviewed prior to granting credit.

v. The AWNA does not run any ads before receiving payment or approving the advertiser for credit privileges.

 

c) The Executive Committee reviews annually the AWNA’s collection procedures.

 

Collection procedure (See Appendix B)

 

6. The Board may establish long-term reserves to meet the needs of AWNA for:

a) Capital requirements approved in the budget and/or long-term plan

b) Unusual or excessive bad debts

i. The funds in this reserve are to be maintained in an interest-bearing account or in interest-bearing securities.

ii. Any earned interest is accumulated in this reserve.

iii. This fund may be used, with Board approval, to cover bad debts that are unusual or excessive.

c) Research, development, and training