1§ General Provisions
In addition to what is stated in the Associations Act, the association's rules, and other regulations and procedures, Preemio ry's financial management shall adhere to the provisions set out in this financial regulation.

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2§ Preemio ry's Overall Finances
Preemio ry's overall finances encompass all financial resources of the association, including the income the association receives, the expenses incurred or belonging to the association, as well as securities, investments, and other assets owned by the association. The association's primary finances cover the financial activities conducted in the association's name.

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3§ Responsibility for Financial Management
The primary responsibility for financial management lies with the board member responsible for the association’s financial matters (hereinafter referred to as the financial officer). The chairperson of the board must stay informed about financial matters. The board may, if necessary, be assisted in financial planning by a subsidiary body of Preemio ry. The association’s financial officer must report quarterly to the board about the association’s income and expenses for the month, the bank account balance, and the value of investments during the academic terms.

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4§ Internal Control
The financial officer and the chairperson of the board are jointly responsible for ensuring the proper handling of financial management tasks.

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5§ Financial Working Group
Preemio ry has a financial working group under its authority. The purpose and task of the financial working group is to ensure the overall continuity of the association's finances and to provide advice to the sitting board on financial decision-making when necessary.

The duties of the financial working group are carried out by the sitting board's chairperson and financial officer, together with the chairperson and financial officer of the previous board. The board may also invite 1-4 other current or former members of the association who have demonstrated outstanding service in the association's activities to carry out the financial working group’s tasks. The board is responsible for inviting these members.

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The appointed members of the financial working group meet as necessary during the academic term and, if needed, upon the request of the sitting board's chairperson. The term of the financial working group is the calendar year.

The financial working group will elect a chairperson and a secretary, who will be responsible for keeping the minutes of the group’s meetings. The group will organize itself after the autumn meeting, before the end of the year, at the invitation of the sitting chairperson.

6§ Use of Funds  

The use of the association's funds must be based on the annual budget approved by the association's meeting. The association's treasurer, together with the other board members, decides on the use of the association's funds within the limits set by the budget. The board must take into account the financial situation of the association, the budget for the fiscal year, and any possible meeting decisions. The treasurer must be actively involved in the financial planning of member events organized by other board members.

 

7§ Account Access Rights  

The association's treasurer has extensive access rights to the association's financial services. Additionally, the board may select individuals from its members who will have access rights to the association's accounts. The chairperson of the board has the right to obtain information about the use of the accounts as needed.

 

8§ Approval and Payment of Invoices  

The association's invoices and payment obligations are approved by the treasurer or another person with signing authority for the association. Invoices and payment obligations related to the treasurer must always be approved by someone other than the treasurer themselves. The invoice approver must ensure that the payment is related to the association’s activities, in accordance with the agreement, appropriate, and acceptable.

 

Payments are primarily made from the association’s bank account. Payments should be based on previously approved invoices or decisions made by the association’s meeting or the board. To avoid risky combinations of responsibilities, approval, bookkeeping, and payment routines should be separated among different individuals, if operationally possible.

 

9§ Expense Reimbursements  

Reimbursements for expenses incurred by the association’s activities are paid from the bank account. The receipt for the expense must be attached to the reimbursement request. The treasurer or, in their absence, the chairperson approves the expense reimbursements for board members. The chairperson approves the treasurer's expense reimbursements. Team members' expense reimbursements are first approved by the team leader, then submitted to the treasurer. Reimbursement requests must be submitted as soon as possible, but no later than one month from the purchase date.

 

10§ Receiving Payments  

Payments made to the association should primarily be directed to the bank accounts.

 

11§ Retention of Receipts  

Receipts, bank statements, and other supporting documents must be collected annually and retained in accordance with applicable legislation.

 

12§ Cash  

The association may temporarily have cash on hand, for example, for event merchandise sales. In such cases, the cash is managed and supervised by the treasurer together with the event manager. A separate cash book must be kept for cash sales. Cash must be deposited into the bank account within one week of the need ending, handled by two board members.

13§ Decision on Investments
The association may invest its funds if the financial situation permits. Investment decisions are made by the association's board up to 5,000 euros per financial year. If the amount of investments exceeds 5,000 euros during the financial year, any investments exceeding this amount must be approved by the association's meeting with a 2/3 majority.

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The board of Preemio has the right to decide on investment targets without a general meeting. Once the decision is made, the treasurer and the chairperson together make the investments. The treasurer must monitor the status of the investments at least quarterly.

14§ Organization of Accounting
The association's accounting is organized as double-entry bookkeeping in accordance with the provisions of the Accounting Act and regulations, as well as other applicable laws, while also considering the specific provisions of this financial management guideline, any other regulations arising from decisions made by the association, and, if necessary, the guidelines and recommendations provided by the Accounting Board.

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15§ Accounting and Account System
The association's current accounting records include expenses, income, payment transactions, and their adjustments. The account system must be based on the budget, such that each item in the budget has its own cost center for tracking income and expenses, and separate accounts must be opened for other income and expense allocations. Additionally, accounts must be opened for other income-impacting transactions and payment transactions.

 

16§ Entries
Entries must be based on a dated and numbered voucher that verifies the transaction. The expenditure voucher must show the received item, and the income voucher must show the item delivered. The voucher verifying the completed payment must be issued by the recipient or the financial institution handling the payment or another similar entity. The voucher for adjusting or transferring entries must be properly verified.

17§ Financial Statements
The association's accounts are closed at the end of each fiscal year. The association's financial year begins on January 1st and ends on December 31st of the same year. The board must provide a financial statement and accounts, including attachments, in accordance with the Accounting Act and Regulations, as well as other provisions stipulated by law, for review by the auditor at least twenty-one (21) days before the annual general meeting. The auditor's statement must be provided to the board at least fourteen (14) days before the annual general meeting.

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18§ Approval of the Financial Statement
At the association's annual general meeting, the report of activities for the previous calendar year will be presented in accordance with the association's rules, section 11. The audit report will also be presented, and the financial statement for the previous fiscal year will be approved.
According to the association's rules (section 11), the annual general meeting will decide on granting discharge from liability to the board of the previous fiscal period.

19§ Auditors  

According to the association's rules (Section 11), Preemio ry will select one auditor and one deputy auditor at the association's autumn meeting. The audit will be carried out by the association's regular auditor and/or the deputy auditor in accordance with these rules and other provisions prescribed by law. The auditors must be independent and qualified to act as auditors.  

  

20§ Materials Required for the Audit  

The board is obligated to provide the auditors with all materials they deem necessary for the audit, such as computerized accounting records, supporting documents, insurance and debt contracts, meeting minutes, the membership list, activity reports, the rules, correspondence, agreements, and other documents relevant to assessing the association's activities.  

  

21§ Auditors' Duties  

In their duties, the regular auditor must:  

1. confirm that the association's activities comply with the Associations Act, the association's rules, and other regulations applicable to the association,  

2. familiarize themselves with the minutes of the association's meetings, the board, and various committees, and confirm that decisions have been followed and that the minutes have been properly signed,  

3. confirm that the association's finances have been managed carefully and in accordance with the rules of procedure,  

4. confirm that the association's bookkeeping complies with the Accounting Act and regulations, that the opening balances are based on an approved financial statement, and that the entries are based on properly approved supporting documents, and  

5. confirm that all relevant persons have signed the financial statements in the balance sheet. In addition, the auditors must make a note of their audit in the financial statements.  

  

22§ Auditor's Report  

The auditors must submit a report on their audit to the board no later than two (2) weeks before the association's spring meeting. The report must include the auditors' opinion on the association's management, accounts, and financial position. The report should also indicate the auditors' stance on approving the financial statements and granting discharge from liability.

23§ Amendments and Changes
Additions and changes to this financial management regulation are decided in the general meeting by a simple majority of the votes cast.

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24§ Entry into Force
This financial regulation was first approved at the association's spring meeting on June 26, 2020.