1. At each annual meeting the IAC Co-Chairs nominate three Board members to be appointed by the Board as members of the IAC Financial Committee. Members of the Financial Committee serve for the active fiscal year and they may be re-appointed for another term unless their term on the IAC Board expires during the fiscal year in question. IAC Co-Chairs shall not be appointed to the Financial Committee.
Statement preceding fiscal year
2. At each annual meeting the IAC Executive Director shall present to the IAC Board a statement on the actual expenses and incomes of the IAC in the last fiscal year. In that statement the Executive Director shall use the same account categories as used in the budget approved by the Board at its preceding meeting. Any expenses and incomes outside those categories shall be identified clearly, with reasons given for their not being included in existing categories.
3. The Financial Committee shall review the statement by the Executive Director, either before or during the annual meeting of the Board. The Committee shall submit a written report to the Board on its findings and it shall propose to the Board to approve or disapprove the report.
Budget next fiscal year
4. At each annual meeting the IAC Executive Director shall present to the IAC Board a budget for the next fiscal year, each fiscal year starting on 1 January and ending on 31 December. In this proposal the Executive Director shall indicate, under separate account categories, all expenses, as well as all incomes, expected in relation to:
a. The IAC Secretariat;
b. Each study undertaken by the IAC; and
c. Any other IAC activities.
If a study is organized as a separate project, the Executive Director may opt to present an overall budget for the project as a whole, comprising more than one fiscal year.
5. The budget proposal of the Executive Director shall be reviewed by the Financial Committee, either before or during the annual meeting of the Board. The Committee shall submit a written report to the Board on its findings and it shall propose to the Board to approve or disapprove the budget, with or without modification.
6. The IAC can only enter into financial obligations in relation to third parties with the explicit consent of the Executive Director.
7. If a specific obligation is in accordance with the budget approved by the Board for the activity from which that obligation arises, the Executive Director may enter into such financial obligation if the amount of that obligation does not exceed US $ 25.000. If the obligation is in accordance with the approved budget and the amount exceeds the limit of US $ 25.000, the Executive Director may enter into such obligation after having obtained written approval, emails included, from the IAC Co-Chairs.
8. In consultation with the IAC Co-Chairs, the Executive Director may re-allocate between budget categories on condition that the total budget approved by the Board for a study project or other IAC activity is not exceeded. In case of re-allocation the Executive Director shall adhere to any terms and conditions specified by any external donors or other sources of funding.
9. If activities are to be undertaken that require entering into financial obligations not yet covered by an approved budget, the Executive Director shall consult with the IAC Co-Chairs. If the amount of the new financial obligation exceeds $ 10.000, the IAC Co-Chairs shall consult with the Financial Committee before they authorize the Executive Director to enter into that obligation.
10. The Executive Director shall ensure that the IAC receives any incomes to which the IAC is entitled and that these funds are used for the purpose(s) for which they were made available.
Accounting procedures and principles
11. The Executive Director shall ensure that the finances of the IAC are managed and administered in accordance with generally accepted accounting procedures for not-for-profit organizations. In case of conflict or ambiguity the accounting procedures and principles used by the host-academy for funds received from external sources shall prevail.
12. As a minimum, the Executive Director shall ensure that:
a. All IAC funds and accounts are kept separate from funds of the host academy, both administratively and financially;
b. All transfers of IAC funds require the signatures of two persons who answer to different supervisors; and
c. All accounts of the IAC are audited once a year by independent auditors, their report or its conclusions to be submitted to the Financial Committee.
13. The Executive Director shall keep the Financial Committee fully informed of all administrative arrangements established by him and he shall respond fully to any question the Committee may have.