Know Your Club Constitution, By-Laws and Policies

Q: What is the rule on Dissolution & Transfer of Restricted Funds in the Code of Policies?

A: The following item in the Code of Policies is authoritative:

“3.2.1.5 Dissolution & Transfer of Restricted Funds If a project of a committee is ongoing, the Director-In Charge may request to maintain the remaining bank balance in the existing Restricted Bank Account. Upon completion of the project, the committee chairmen / director in charge may issue a request to dissolve the remaining bank balance for the future disposition of the RCM Board. The RCM Board is required to pass a Special Resolution for the disbandment of Restricted Funds of Committees with two thirds (2/3) board majority. The transfer of any surplus arising from General Fund operations to Restricted Funds shall not be allowed. The surplus shall be made available to fund general operations for future RCM Board. Surplus Funds arising from Restricted Committees and Projects that have been transferred during the financial year into the General Funds may only be transferred back to a Restricted bank account with (2/3) board majority.”

Q: What is the rule on Nil Deficit Results with respect to hosting of District Functions?

A: The following item in the Code of Policies is authoritative:

“3.2.1.3 Nil Deficit Results xxx xxx xxx District Function / Conference Funding When RCM is the host of the District Function / Conference of a Rotary year, or even in other Rotary years, there must be a budget of income and expenses of RCM for the conference to be pre-approved by the RCM Board, even though the sources of the fund may come from external sources. This is primarily because RCM may have to shoulder a resulting deficit from the DISCON / District Function. Hence, long before the DISCON / District Function is held, RCM will have to make sure that it will not answer any deficit incurred by approving the projected inflow and outflow of the funding for the District Conference.”