Section 6.5: Development Fund Process
I. Purpose and Scope
Development funds are board-designated funds from ASSP's reserves intended for research and development of new programs and initiatives that once completed will benefit ASSP. These funds are intended to provide short-term financial flexibility to fund unbudgeted opportunities.
The Development Fund process is implemented when the delegation of authority approved by the Board of Directors requires additional investment approval. It recognizes that unbudgeted expenses and new opportunities will always present themselves.
The Development Fund process ensures ASSP has a mechanism to act on new opportunities quickly and with appropriate Board oversight. Development funds are approved for specific projects.
II. Definitions
A. Research Projects
- Support ASSP’s Product and Service Review and Development Process, supporting evidence-based decision-making.
- Acquire new knowledge; investigate and discover new information, products, services, technology, methods or markets.
- Include, but are not limited to: literature searches, databases, surveys and engaging other organizations, agencies and persons, including consultants.
- Research results form the basis for decisions, action plans and development of new or revised Society programs and activities.
B. Development Projects
- Support ASSP’s Product and Service Review and Development process, supporting evidence-based decision-making.
- Produce new and revised programs or products; member or professional services.
- Include, but not limited to: grant proposal writing, curriculum development, delivery/distribution system development, product or media design, packaging and production.
- Development results fulfill Society strategic goals and objectives.
III. Development Fund Availability
All requests should be reviewed by the Finance Committee prior to Board approval.
Funds allocated to a specific approved project will be available until the project is completed. Unused funds will be returned to unrestricted reserves.
IV. Request and Approval Process
A member of the Board of Directors or Chief Execuitve Officer (CEO) will develop a business case in accordance with ASSP’s Product and Service Review process.
The Board of Directors approves requests for funds based on the business case presented and the availability of funds. The Executive Committee is authorized to approve development requests of $25,000 or less.
Approved development fund expenses shall not be charged against income from budgetary operations. They will be reported in the financial statements as “board-designated expenditures," as a change in net assets.
Project proposals shall follow ASSP’s Product and Service Review and Development process and the stage gates established.
The CEO reviews the request with the Chief Financial Officer (CFO) for completeness and forwards it to the Vice President, Finance, Board of Directors or Executive Committee as appropriate.
- The Vice President, Finance, schedules a meeting with the Finance Committee to review the request and makes a recommendation to the Board of Directors or Executive Committee.
- If approved at the Finance Committee, the Vice President of Finance and CFO request the recommendation be placed on the next meeting of the Board of Directors or Executive Committee, or if it is an emergency request a special meeting be set.
- The Board of Directors or Executive Committee approves/disapproves all development fund projects including their timing and disbursement. Approval requires a simple majority vote.
- The CEO notifies the requestor of the final decision.
- The CFO disburses funds in accordance with current ASSP financial policies.
V. Accountability
The CEO, with support of the appropriate staff, updates to the CFO, Controller and/or Vice President, Finance who provides the Finance Committee and Board of Directors financial reports on the disbursement and balance of funds by project until completion.
The Finance Committee shall review Development Fund spending and may recommend to the Board or Executive Committee that funds be withheld or discontinued for projects not performing to expectations.
Approved By | Date: Board of Directors | 5/2024
Replaces Edition Dated: 1/2023
Next Revision Due: 1/2027