To minimize the risk of error, loss, or misappropriation, MIHC requires segregation of duties across the revenue process wherever practicable. 

• No single individual may be responsible for all three of the following: collecting funds, recording transactions, and reconciling bank accounts.

• At least one person who does not handle routine collections (typically the Treasurer or Finance Committee member) must perform or review monthly bank reconciliations.

Online payments (e.g., via Crossbar or other platforms) must be configured so that:

• System access for changing bank account information, fee structures, or refunds is restricted to designated officers and/or the Treasurer.

• Downloaded reports are reviewed periodically by someone other than the person primarily responsible for entering or adjusting charges. 

• Team managers or event leads who collect cash or checks may not be the same individuals who post deposits into the accounting system or reconcile the associated bank activity.

Special events and tournaments present elevated cash‑handling risk; therefore, the following additional controls are required for any MIHC event where cash or checks are accepted (e.g., gate fees, 50/50 raffles, merchandise, donations, concessions). 

Prior to the event:

• The Treasurer or designee prepares a Cash Box Log, including a starting cash count (denominations and total) and the names of the volunteers assigned to handle funds.
• Cash boxes are issued with pre‑counted starting cash and a numbered log sheet; both are signed out by two volunteers.

During the event:

• Whenever feasible, at least two volunteers must be present at any cash‑handling station at all times.
• All checks must be made payable to “McKinney Ice Hockey Club” or the Board‑approved legal name; checks payable to individuals will not be accepted.
• Receipts or tally sheets must be maintained for sales, gate fees, or donations, either manually or via point‑of‑sale tools.

End of day / shift:

• Cash boxes must be closed out as soon as practical at the end of the event or shift in a secure area, not in public view.
• No event proceeds may be used for on‑the‑spot reimbursements or purchases; all reimbursements must follow the club’s expense reimbursement policy. 

Timely deposits and recording of funds are essential to protect assets and ensure accurate reporting. 

• All cash and checks must be deposited within five business days of receipt, and preferably sooner for large events or amounts.
• The Treasurer or bookkeeper posts deposits in the accounting system using the totals and documentation from the three‑person count; any discrepancy must be investigated and resolved promptly.
• Under no circumstances may MIHC funds be commingled with personal funds or held in personal accounts, even temporarily. 

Compliance with this Revenue & Cash Handling Policy is mandatory for all MIHC activities. 

• Any deviation from this policy must be rare, documented in writing, and approved in advance by the Treasurer and one additional officer (President or Vice President), except where emergent circumstances make prior approval impossible, in which case documentation must be created and submitted as soon as practicable.
• Suspected loss, theft, or misappropriation of funds must be reported immediately to the President and Treasurer under MIHC’s whistleblower and fraud‑reporting provisions, and may be escalated to law enforcement and/or the organization’s insurer where appropriate. 

To balance operational efficiency with strong oversight, MIHC uses a tiered expense‑approval structure based on total transaction amount (including tax, fees, and shipping). 

Up to $499

• May be approved by the Treasurer or a designated Director/officer responsible for the relevant area (e.g., Hockey Operations, Events), consistent with the approved budget.

$500–$2,499

• Requires approval from two individuals: the Treasurer (or Assistant Treasurer, if applicable) and one additional officer (President, Vice President, or Secretary).

$2,500 and above

• Requires written approval from the Treasurer and the President (or, if the President is unavailable or conflicted, the Vice President), and must be consistent with the approved budget or otherwise accompanied by a Board‑approved budget amendment or specific motion.
• Contracts or commitments that extend beyond one fiscal year or that could exceed 10% of the annual operating budget require explicit Board approval, regardless of individual transaction amounts.

No individual may approve his or her own reimbursement, and any officer or Director with a real or perceived conflict of interest must recuse from expense approval, in accordance with MIHC’s Conflict of Interest Policy. 

To promote fairness, cost‑effectiveness, and transparency, MIHC uses a competitive process for most purchases and service contracts of 2,500 or more. 

Threshold

• For any single purchase or contract of 2,500 or more, or a series of related purchases that are reasonably expected to exceed this threshold, MIHC will seek at least three written quotes or proposals when practical.

Exceptions

• Sole‑source situations (e.g., unique vendor, emergency repair, or exclusive facility provider) may be permitted but must be documented in writing, explaining why competitive bids were not feasible.
• USA Hockey, TAHA, or rink‑mandated vendors may be exempt where MIHC has no realistic alternative, but the Treasurer must still evaluate reasonableness of cost where possible.

Documentation

• Quotes, proposals, or pricing comparisons must be retained with the purchase documentation (invoice, contract, approvals) and preserved in accordance with MIHC’s document retention policy.

Selection

• The lowest price is not automatically required; factors such as quality, reliability, safety, and prior performance may justify selection of a higher‑priced vendor, provided the rationale is documented. 

Any MIHC credit card, debit card, or purchasing card (“card”) is a tool for club business only, not a personal benefit. Card use is subject to the following controls:

Issuance and limits

• Cards may be issued only with Board approval and must be in the name of MIHC, with individual cardholders identified by role (e.g., Treasurer, President, Events).
• Spending limits (per‑transaction and monthly) must be established for each card based on role and anticipated needs.

Authorized use

• Cards may be used only for budgeted and approved club expenses; personal use is strictly prohibited, even if the cardholder intends to reimburse the club.
• If a personal charge occurs inadvertently, it must be reported to the Treasurer immediately and repaid in full within 10 days, with documentation kept on file.

Receipts and documentation

• Cardholders must submit itemized receipts for every transaction, coded to the correct budget line, within a specified timeframe (e.g., 7–10 days).
• Missing receipts must be explained in writing and approved by the Treasurer and one additional officer; repeated missing receipts may result in loss of card privileges.

Timely and accurate reconciliation of card activity is essential to safeguarding MIHC assets and maintaining reliable financial records. 

Monthly reconciliation process

• The bookkeeper or Treasurer downloads the monthly card statement and prepares a reconciliation showing: beginning balance, new charges by cardholder, payments, and ending balance.
• Each cardholder reviews their own charges, ensures all receipts are attached, and signs off on the monthly statement segment.

Independent review

• A Board officer who is not a routine card user (often the Secretary or a Finance Committee member) performs or reviews a monthly or quarterly reconciliation of card activity, looking for unusual or unapproved charges. 

Coding and posting

• All card transactions must be coded to the appropriate expense accounts and posted in the accounting system in the month incurred, not when paid, to ensure accurate financial reporting.

Disputes and errors

• Any disputed or erroneous charge must be reported to the card issuer promptly, and the Treasurer must document the dispute and its resolution.

MIHC will reimburse reasonable and necessary expenses that: 

• Are directly related to approved MIHC activities (e.g., league and tournament operations, team travel for coaches, sanctioned events, fundraising, board or committee meetings).
• Are pre‑approved by the appropriate authority consistent with MIHC’s Expense Controls Policy and budget (e.g., Treasurer, President, or designee).
• Are properly documented with itemized receipts and sufficient detail to substantiate the business purpose.

Common eligible categories may include:

• Lodging and transportation for coaches or designated team personnel on authorized trips.
• Mileage for use of a personal vehicle on approved MIHC business, reimbursed at or below the current IRS standard mileage rate for business when applicable. 
• Reasonable meals associated with required travel or extended MIHC business, subject to any per‑diem limits the Board may adopt.
• Supplies, small equipment, printing, and similar items purchased personally after proper approval for MIHC use.

Personal expenses, family travel costs, upgrades (e.g., business‑class airfare, luxury lodging), alcohol, and other items not clearly necessary and reasonable for MIHC business are not eligible for reimbursement.

To qualify for reimbursement under this accountable plan, the following requirements apply: 

Receipts and support

• Claimants must provide itemized receipts for all expenses whenever reasonably available.
• Each request must clearly state: date, vendor, amount, description of goods/services, MIHC purpose, and the MIHC program, team, or event it supports.

Mileage

• Mileage claims must include date(s), origin, destination, purpose, and total business miles; MIHC will reimburse at a rate not exceeding the IRS standard mileage rate for business or the applicable mileage rate adopted by the Board. 

Timeliness

• Reimbursement requests should be submitted as soon as practical and no later than 30 days after the expense is paid or incurred to preserve accountable‑plan treatment. 

Form and process

• All requests must be made on the MIHC Reimbursement Request Form (or approved electronic equivalent) and submitted to the Treasurer or designee.
• The Treasurer will review for completeness, proper coding, policy compliance, and required approvals before processing payment.

• Reimbursements must follow the club’s tiered approval authority, meaning higher‑dollar reimbursements may require dual officer approval as defined in the Expense Controls Policy. 
• No individual may approve his or her own reimbursement; a second officer or Board‑designated approver must sign off. 
• Approved reimbursements will generally be paid within a reasonable period after submission (e.g., within 15–30 days), via check or electronic payment from an official MIHC account.

When MIHC provides a cash advance or pre‑loaded card for specific travel or events: 

• The purpose, amount, and authorized dates must be documented in advance and approved by the Treasurer and an officer.
• The recipient must provide a reconciliation of actual expenses with receipts and return any unused portion of the advance within 60 days after the expenses are paid or incurred.
• Any unsubstantiated or unreturned amounts may be treated as taxable income to the recipient and may not be re‑classified as reimbursement at a later date.

MIHC will classify each paid worker as either an employee or an independent contractor based on IRS definitions and applicable state law, not on preference or convenience. 

• Individuals who are subject to MIHC’s ongoing direction and control regarding what work is performed, how it is performed, and when/where it is performed (including most regularly scheduled coaches) will generally be treated as employees, with payroll taxes withheld and reported on Form W‑2. 
• Individuals or entities who are in business for themselves, offer similar services to the general public, control their own methods and schedule, and bear a risk of profit or loss may be treated as independent contractors, if they meet IRS criteria. 
• MIHC will take a conservative approach: if classification is unclear, MIHC will favor treating the individual as an employee and may seek guidance from qualified legal or tax advisors. 
• Misclassification risk (treating de facto employees as contractors) can expose MIHC to back taxes, penalties, and potential jeopardy to its tax‑exempt status; therefore, Board and management must adhere strictly to this policy. 

For individuals classified as employees, MIHC will follow standard nonprofit payroll practices. 

Employees will be set up in a recognized payroll system or service, with:

• Completion of Form W‑4 and any required state forms before work begins.
• Proper withholding and remittance of federal income tax, Social Security, Medicare, and applicable state/local taxes. 
• Wages or salaries (including hourly pay, stipends, and seasonal coaching pay treated as employment) will be processed on a regular payroll schedule approved by the Board (e.g., bi‑weekly or monthly). 
• Payroll records will include time sheets or other documentation adequate to substantiate hours worked or services rendered, and will be retained consistent with MIHC’s document‑retention policy. 
• Annual Forms W‑2 will be issued to employees by the required IRS deadline and filed with the Social Security Administration and other agencies as required. 

For all individuals or entities classified as independent contractors, MIHC will collect and maintain Form W‑9 before issuing payment. 

• MIHC will request a completed and signed Form W‑9 (Request for Taxpayer Identification Number and Certification) from any contractor who may receive payments during the calendar year. 
• Payments to contractors should generally not be made until a W‑9 is on file, except in rare, documented circumstances approved by the Treasurer and President. 
• W‑9 forms will be securely stored and retained for at least four years, consistent with IRS guidance. 

MIHC will comply with IRS requirements for issuing Forms 1099‑NEC and 1099‑MISC to contractors and other payees. 

• MIHC will track cumulative payments to each contractor during the calendar year.
• For tax years prior to federal threshold changes taking effect, MIHC will issue Form 1099‑NEC to each eligible contractor to whom it has paid 600 or more in nonemployee compensation in a calendar year, or such other threshold as then required by the IRS. 
• MIHC will monitor legislative and IRS changes (such as the “One Big Beautiful Bill Act” adjustments to future thresholds) and update internal thresholds to remain compliant, with the conservative assumption that a Form 1099 will be issued whenever required or appropriate. 
• Forms 1099‑NEC and 1099‑MISC will be issued to contractors and filed with the IRS by the applicable deadlines each year (generally by January 31 for 1099‑NEC, subject to IRS rules). 

All compensation (employee or contractor) must comply with MIHC’s Financial Control & Audit Policy, Expense Controls Policy, and Conflict of Interest Policy.

• Rates of pay for recurring roles (e.g., head coaches, assistant coaches, skills coaches, administrative staff) must be approved by the Board or a Board‑authorized committee and documented in writing (offer letter, contract, or Board minutes). 
• Written agreements with contractors should describe services, compensation, term, independent‑contractor status (where appropriate), and any expectations regarding scheduling, deliverables, and compliance with MIHC policies. 
• Payments to employees and contractors must be supported by appropriate documentation (e.g., payroll records, invoices, timesheets) and coded to the proper budget line items. 
• No person may approve their own compensation; any Board member or officer with a direct financial interest must recuse from related decisions, consistent with MIHC’s Conflict of Interest Policy. 

MIHC will periodically review payroll and contractor practices, including classification decisions and reporting, to reduce risk of noncompliance. 

• The Treasurer and/or Finance Committee will conduct periodic reviews of:
• Employee vs. contractor classifications for key roles (especially coaches and recurring instructors).
• Timely collection of W‑9 forms and proper issuance of Forms 1099.
• Alignment between contracts/agreements, payments, and IRS reporting. 
• Where needed, MIHC may consult with an external CPA, payroll provider, or legal counsel with nonprofit and youth sports experience to validate practices and address emerging IRS or legislative changes. 

MIHC will prepare internal financial statements on at least a monthly basis:

• A balance sheet (statement of financial position) showing assets, liabilities, and net assets as of month‑end. 

• A statement of activities (income statement) showing revenues and expenses for the month and year‑to‑date compared to the approved budget. 

These reports will be reviewed by the Treasurer and presented to the Board at regular meetings to support ongoing oversight, decision‑making, and compliance with nonprofit governance best practices. 

At least quarterly, the Treasurer (or Finance Committee) will prepare a cash flow forecast covering the remainder of the fiscal year, or a rolling 6–12 month period, to identify potential surpluses or shortfalls in advance. 

• The forecast will incorporate expected registration revenues, sponsorships, fundraising proceeds, grants (if any), and known or projected expenses (ice costs, coaching, tournaments, equipment, insurance, and administrative costs). 

• The Board will use this forecast to make informed decisions about program expansion or contraction, fee levels, reserve usage, and timing of major expenditures.

MIHC will adopt an annual operating budget approved by the Board before the start of each fiscal year and will track budget‑to‑actual variances regularly. 

• At least quarterly, the Treasurer or Finance Committee will prepare a variance report showing actual revenues and expenses compared to budget by major category. 
• Significant variances (for example, more than a Board‑defined percentage or dollar threshold) must be explained, and, where appropriate, corrective actions or budget amendments will be recommended to the Board. 
• Variance analysis will be used to improve future budgeting accuracy and to demonstrate to members and donors that funds are being managed prudently and in alignment with approved plans. 

To appropriately track and report resources, MIHC may use fund accounting or equivalent tracking within its accounting system. 

• Separate classes or “funds” may be used to distinguish, for example, general operations, scholarship/financial aid, capital reserves, restricted donations, and specific initiatives or tournaments. 
• Donor‑restricted funds will be recorded and tracked so that expenditures from those funds are used only for the purposes specified by the donor, consistent with applicable nonprofit law and accounting standards. 
• The Board will receive periodic reporting on these funds to ensure restrictions are honored and to guide decisions about reserves and long‑term planning. 

• MIHC may engage an independent certified public accounting (CPA) firm, experienced in nonprofit and preferably youth sports organizations, to perform an annual audit of its financial statements, or, where appropriate and approved by the Board, a review or compilation with agreed‑upon procedures that provide a similar level of oversight relative to the size and complexity of the organization.

• The Board will determine, based on revenue, donor expectations, and regulatory or grant requirements, whether a full audit, review, or other external engagement is required for a given fiscal year; however, MIHC’s intent is to maintain an annual, independent examination as a matter of best practice and transparency.

• The audit will cover the fiscal year as defined in MIHC’s bylaws and financial policies and will include evaluation of internal controls relevant to financial reporting, as appropriate to the engagement type.

• The Board, through the Finance Committee or a designated Audit Committee, will oversee the selection and engagement of the external auditor.

• At least every 3–5 years, or more frequently if warranted, MIHC will consider competitive proposals from qualified CPA firms to ensure appropriate expertise, independence, and cost‑effectiveness.

• The auditor must be independent of MIHC, its Board, and management under professional standards; no auditor may provide services that compromise independence (such as significant management decision‑making) in connection with the audit engagement.

• The Board will formally approve the engagement letter, scope of work, and fee structure in advance of the audit.

• MIHC will provide the auditor with a draft trial balance, supporting schedules, and key documentation as soon as practical after fiscal year‑end, with the goal of commencing fieldwork promptly.
• The target timeline is to receive a draft audit report, including financial statements and any management letter, within 75 days of the auditor’s receipt of substantially complete year‑end financial records.
• The Treasurer, bookkeeper, and relevant staff or volunteers are responsible for timely preparation of closing entries, reconciliations, and schedules required for the audit.
• The Finance or Audit Committee will monitor progress against the 75‑day target and escalate to the Board any delays or obstacles that could materially affect the timeliness of reporting to members, donors, regulators, or grantors.

• MIHC will provide the auditor with full access to financial records, board minutes, key contracts, bank statements, supporting documentation, and policies necessary to conduct the audit in accordance with professional standards.
• Board members, officers, and key volunteers must make themselves reasonably available to answer questions from the auditor regarding governance, internal controls, and financial practices.
• No person may obstruct or improperly influence the auditor’s work; concerns about the audit process, if any, must be raised through the Board or Finance/Audit Committee.

• The auditor may issue a management letter or similar communication describing internal control observations, compliance issues, or opportunities for process improvement.
• The Treasurer, President, and Finance/Audit Committee will review all findings and recommendations and prepare a proposed Management Response Plan for Board consideration.

The Management Response Plan will:

• Acknowledge each significant finding.
• Describe corrective actions, responsible parties, and implementation timelines.
• Identify any findings with which MIHC disagrees, including rationale, for Board discussion.

• The auditor will be invited to present the audit results (or summary thereof) to the Board or Finance/Audit Committee, either in person or virtually, and to answer questions about the financial statements and any significant findings.
• The Board will formally receive and accept the audit report in its minutes, noting any significant deficiencies, material weaknesses, or other key issues requiring follow‑up.
• MIHC may share high‑level audit results (for example, that the financial statements were audited and received an unmodified opinion, if applicable) with members and donors to reinforce transparency and accountability, while maintaining confidentiality of sensitive details as appropriate.

The primary purposes of MIHC’s reserves are to: 

• Provide a financial cushion to manage timing differences in cash flows (e.g., registration cycles versus ice payments).
• Protect the organization against unexpected events, such as revenue shortfalls, major equipment failures, facility disruptions, or extraordinary program expenses.
• Support strategic opportunities or capital needs consistent with MIHC’s mission, subject to Board approval.

Reserves are board‑designated net assets and are not donor‑restricted unless specifically contributed as restricted funds. 

MIHC will establish a target operating reserve range, reviewed at least annually by the Board. 

• As a guideline, MIHC will seek to maintain unrestricted operating reserves equivalent to two to three months of average operating expenses, recognizing that the appropriate level may vary based on revenue stability, ice and facility commitments, and program growth plans. 
• The Board may adjust the target range over time, taking into account risk factors such as dependence on a limited number of venues, variability in registration levels, and the broader economic environment. 

Operating reserves will be funded primarily from unrestricted surplus generated by operations, after covering current obligations. 

• At year‑end, if MIHC has a surplus, the Treasurer and Finance Committee may recommend that the Board designate a portion of unrestricted net assets to the Operating Reserve. 
• The Board may also designate specific fundraising campaigns, sponsorships, or windfalls to build or replenish reserves, provided donor intent and restrictions are honored. 
• Reserve balances may be maintained in a segregated bank or investment account or tracked via separate classes/funds within the accounting system. 

Use of reserve funds is intended for significant, unplanned needs rather than routine operating shortfalls. 

• The Treasurer may recommend, and the Board may approve, use of reserves for:
• Covering temporary cash‑flow gaps due to timing of receipts and payments.
• Responding to emergencies or unexpected events (e.g., major repairs, insurance deductibles, loss of primary venue access).
• Strategic investments that strengthen long‑term sustainability (e.g., technology upgrades, equipment purchases, program development), when other funding is not available.
• Any use of reserve funds must be approved by the Board and documented in meeting minutes, including the purpose, amount, and plan to replenish reserves if appropriate. 

MIHC’s investment objective for reserves is to preserve capital, maintain adequate liquidity, and achieve a modest return commensurate with low‑to‑moderate risk. 

• Safety and liquidity first: Operating reserves should be invested primarily in low‑risk, liquid or near‑liquid instruments so funds are available when needed. 

Permitted investments for operating reserves may include:

• Insured bank deposits (checking and savings accounts).
• Money market accounts and money market mutual funds.
• Certificates of deposit (CDs) with maturities aligned to expected liquidity needs.
• U.S. Treasury bills or similar high‑quality, short‑term fixed‑income instruments. 
• Longer‑term board‑designated funds (if established) may be invested, with Board approval, in a more diversified mix such as high‑quality bond funds or balanced mutual funds, consistent with a written Investment Policy Statement and MIHC’s risk tolerance. 

MIHC will not engage in speculative investments, margin trading, derivatives, or other high‑risk strategies.

• The Board of Directors has ultimate responsibility for establishing reserve targets, approving use of reserves, and setting overall investment parameters. 

The Finance Committee (or equivalent) will:

• Monitor reserve balances relative to targets.
• Review investment performance and alignment with policy.
• Recommend changes to the reserve target, investment mix, or account structure as needed. 
• The Treasurer will implement Board and Finance Committee decisions, coordinate with banks and investment providers, and ensure that reserve and investment activity is accurately recorded and reported. 

• Reserve balances and investment holdings will be reported to the Board at least quarterly as part of regular financial reporting. 
• This Reserve & Investment Policy will be reviewed at least every two years, or more frequently if MIHC’s financial position, risk profile, or market conditions change materially, and any revisions will require Board approval. 

By maintaining prudent reserves and investing them conservatively, MIHC strengthens its ability to weather financial volatility, protect ongoing programs, and continue advancing youth ice hockey development in the community over the long term.

A conflict of interest exists when a Covered Person’s personal, professional, or financial interests (or those of a family member or business associate) could reasonably be perceived to interfere with that person’s duty to act solely in the best interests of MIHC.

Examples include, but are not limited to:

• The Covered Person or a family member has a financial interest in a business seeking to provide goods or services to MIHC (e.g., coaching, skills training, apparel, equipment, tournaments, marketing, or technology).
• The Covered Person or a family member receives or may receive compensation, fees, or other benefits from a transaction or decision being considered by MIHC.
• The Covered Person has a role (board member, owner, or employee) in another organization whose interests may conflict or compete with MIHC’s interests.

A “financial interest” means any direct or indirect ownership or investment interest, compensation arrangement, or potential for benefit, except for generally available benefits (such as being a parent of a player).

All Covered Persons owe a duty of loyalty to MIHC and must:

• Act in good faith and in the best interests of MIHC, ahead of personal or outside interests.
• Disclose fully and promptly any actual, potential, or perceived conflict of interest to the Board President or designated committee (e.g., Governance or Finance Committee) as soon as they become aware of it.

At least annually, each Covered Person must complete and sign a Conflict of Interest Disclosure Form identifying any relationships, positions, or circumstances that could reasonably give rise to a conflict. Covered Persons must update their disclosure if relevant circumstances change during the year.

When a conflict or potential conflict is disclosed or suspected:

1. The Board President (or designee) will determine whether the matter should be reviewed by the full Board or an appropriate committee.
2. The Covered Person with the potential conflict may provide factual information and answer questions but must leave the meeting during discussion and voting on the matter.
3. The remaining disinterested directors or committee members will determine, after discussion, whether a conflict exists and, if so, whether MIHC can proceed with the proposed transaction or arrangement under this policy.
4. The Board or committee may seek alternative proposals or bids to ensure that the terms are competitive and reasonable.
5. The Board or committee must determine that:

• The transaction or arrangement is fair and reasonable to MIHC.
• It is in MIHC’s best interests and for its own benefit.
• It is entered into on terms that are at least as favorable to MIHC as those that would be available in an arms‑length transaction with an unrelated party.

All discussions, findings, recusals, and votes related to conflicts of interest must be documented in the minutes of the meeting at which they are considered.

A “related‑party transaction” is any transaction, arrangement, or relationship between MIHC and:

• A Covered Person;
• A family member of a Covered Person; or
• An entity in which a Covered Person or family member has a significant financial interest or serves as an officer, director, or key employee.

Related‑party transactions are not prohibited outright but must:

• Be disclosed in advance to the Board or relevant committee;
• Be reviewed under the conflict‑of‑interest procedures above;
• Be approved only if they are demonstrably fair, reasonable, and in MIHC’s best interests; and
• Be reported as required by applicable tax forms and regulations.

Where required by law or good practice, MIHC will ensure related‑party transactions are disclosed in its annual Form 990 or other required filings.

Members of the Board who receive direct or indirect compensation from MIHC for services are subject to this policy when their compensation is discussed or voted on.

• No person may participate in any decision regarding their own compensation.
• Compensation decisions for any insider (e.g., officers, key employees, or related parties) must be made by disinterested directors using appropriate comparability data where available (such as benchmarks for similar positions in comparable organizations).

MIHC funds and assets may not be used to provide excessive or unreasonable personal benefit to any insider, in accordance with 501(c)(3) private‑benefit and private‑inurement rules.

If the Board or a committee has reasonable cause to believe a Covered Person has failed to disclose an actual or possible conflict of interest:

1. The person will be informed of the concern and given an opportunity to explain.
2. If, after hearing the response and making any further investigation deemed necessary, the Board or committee determines that the person failed to disclose a conflict or did not comply with this policy, it may take appropriate corrective and disciplinary action, which may include:

• Reconsideration or rescission of affected decisions, if practical;
• Removal from a committee or officer role;
• Recommendation for removal from the Board or volunteer position in accordance with bylaws; and
• Referral to legal or regulatory authorities if required.

MIHC prohibits fraud, theft, embezzlement, misuse of assets, falsification of records, and any other dishonest or unethical conduct that could harm the organization, its members, or its reputation. This policy covers financial activities (cash, banking, purchasing, payroll), program operations, and use of any MIHC assets or data.

At least once each fiscal year, the Treasurer and Finance Committee (or a designated group) will conduct a Fraud Risk Assessment to identify areas where MIHC may be vulnerable to fraud or misuse of assets.

The assessment should consider:

• Cash handling, registrations, fundraising, and tournament revenues.
• Vendor selection, purchasing, and payment processes.
• Payroll or contractor payments.
• Access to banking, accounting systems, and sensitive information.
• The results and recommended control improvements will be presented to the Board and documented in meeting minutes.
• Identified high‑risk areas should be prioritized for strengthened controls, training, or monitoring.

To reduce the opportunity for fraud, MIHC emphasizes segregation of duties and other key internal controls:

• No single individual should control all aspects of a critical financial process, such as authorizing, recording, and reconciling transactions.

Wherever practical:

• One person collects or initiates receipts or payments.
• A different person records the transaction in the accounting system.
• A third person performs or reviews the bank and credit card reconciliations.
• Dual authorization is required for payments and transfers above Board‑defined thresholds, and cash‑handling at events must follow multi‑person counting and documentation protocols.
• Access to bank accounts, online banking credentials, accounting systems, and financial records must be limited to those whose roles require it, and access must be removed promptly when roles change.

MIHC encourages all individuals associated with the club to report suspected fraud, financial irregularities, or other serious misconduct without fear of retaliation.

Suspected fraud or misuse of assets should be reported as soon as possible to one of the following, in order of preference:

• The President;
• The Treasurer; or
• Another officer or Board member if the President or Treasurer may be implicated or is unavailable.

Reports may be made in writing, by email, or verbally. Where possible, reports should include:

• A description of the alleged misconduct;
• Names of individuals involved;
• Relevant dates, amounts, and documentation;
• Any witnesses or others who may have information.
• MIHC will also provide a general contact (e.g., a dedicated email address or web form) for confidential reporting.

MIHC will only solicit and accept donations that support its mission to develop youth ice hockey and that do not create conflicts of interest, undue private benefit, or reputational risk. All fundraising representations (website, social media, events, sponsorship solicitations) must be truthful and not misleading as to how funds will be used.

• MIHC will provide written acknowledgment for all monetary or in‑kind donations of 100 or more within 14 calendar days of receipt, whenever practicable. 

Acknowledgment letters or emails will generally include:

• Donor name (individual or organization) as provided.
• Date and amount of cash contribution or a description (but not value) of in‑kind property.
• A statement that MIHC is a 501(c)(3) organization and whether any goods or services were provided in exchange for the contribution, consistent with IRS contemporaneous acknowledgment requirements. 
• For contributions less than $100, MIHC may send acknowledgments in aggregate or via system‑generated receipts, but will provide additional documentation upon donor request. 

• When a donor indicates a restriction (for example, scholarship fund, specific team, or equipment initiative), MIHC will record the gift in a way that tracks the restriction separately from general operating funds. 
• MIHC will honor donor‑imposed restrictions that are consistent with its mission and legal obligations; if a restriction cannot be honored (e.g., the specified program no longer exists), MIHC will seek the donor’s consent to redirect the gift to a similar purpose where feasible. 
• Internally designated funds (Board‑designated reserves, equipment or capital set‑asides) are not donor‑restricted and may be changed by Board action, but will be tracked to ensure transparent use for the stated purpose. 

• MIHC welcomes in‑kind contributions of goods and services that support its programs (e.g., equipment, ice time, printing, professional services), subject to approval by the appropriate Board member or committee. 

For in‑kind gifts:

• Acknowledgment letters will describe the donated items or services but will not assign a dollar value; donors are responsible for determining and substantiating the fair market value for tax purposes. 
• MIHC may internally estimate value (e.g., for financial reporting or insurance purposes), using reasonable methods and documentation (invoices, quotes, market pricing), but those internal values will not be stated as tax‑deductible amounts in donor receipts. 
• MIHC may decline in‑kind gifts that are unusable, carry excessive cost or risk, or are inconsistent with the club’s mission and standards (e.g., unsafe equipment, outdated technology). 

All fundraising and donation revenue (cash, checks, electronic payments, in‑kind support) must follow MIHC’s Revenue & Cash Handling and Financial Control & Audit policies. 

• Donations must be deposited into MIHC accounts promptly and recorded in the accounting system using appropriate income and fund codes, including any restrictions or designations. 
• Event‑based fundraising (raffles, auctions, tournaments) must use established cash‑handling, counting, and documentation procedures to ensure accurate and auditable records. 

MIHC will review fundraising and donation practices periodically to ensure compliance with IRS rules, State of Texas requirements for charitable organizations, and evolving nonprofit best practices. The Board or a designated committee may recommend updates to this policy as the club’s programs, fundraising activities, or regulatory environment change, with all revisions subject to Board approval.

As a USA Hockey member program, MIHC participates in the USA Hockey basic legal liability program for sanctioned activities. 

• USA Hockey’s general liability policy is written on an occurrence form with a limit of 1,000,000 per occurrence and a 5,000,000 general aggregate limit, providing broad legal liability protection for USA Hockey and affiliated organizations, their officers, directors, coaches, managers, officials, players, sponsors, and volunteers for negligence claims arising from approved/sanctioned activities. 
• Covered activities include sanctioned games, practices, tournaments, and related activities such as fundraising events, meetings, and awards banquets, when properly sanctioned through USA Hockey and TAHA. 
• MIHC will ensure that all on‑ice and official club activities are registered and sanctioned in accordance with USA Hockey and Affiliate (TAHA) requirements to maintain eligibility for this coverage. 

Because national programs may not fully address all organizational risks (especially off‑ice or non‑sanctioned contexts), MIHC may maintain supplemental liability insurance as needed. 

• MIHC will maintain or evaluate maintaining:
• General liability coverage at a minimum of 1,000,000 per occurrence and 2,000,000–5,000,000 aggregate, inclusive of or in addition to USA Hockey coverage, to protect against bodily injury, property damage, and personal/advertising injury claims arising from MIHC activities. 
• Abuse and molestation liability coverage with a minimum separate limit of 1,000,000 per occurrence where available, to respond to allegations of abuse or molestation involving players, coaches, or volunteers, including defense costs. 
• MIHC recognizes that abuse and SafeSport‑related risks are critical exposures in youth sports and will coordinate insurance coverage with its SafeSport policies, reporting obligations, and training requirements. 

MIHC will carry Directors & Officers (D&O) Liability coverage to protect the organization and its board and officers from claims alleging mismanagement, breach of fiduciary duty, or governance‑related decisions. 

• MIHC will target D&O coverage with limits of at least 1,000,000 per claim (and may consider a 2,000,000 limit as the organization grows), with defense costs provided in addition to or within limits depending on market availability. 
• Where available and appropriate, MIHC will include Employment Practices Liability (EPL) (for claims such as harassment, discrimination, or wrongful termination) either within the D&O policy or as a companion coverage, at limits generally matching the D&O limits. 
• MIHC’s governance, conflict of interest, and financial control policies are intended to support D&O loss‑prevention guidance published for sports organizations and USA Hockey affiliates. 

MIHC may elect to maintain insurance sufficient to protect key physical and financial assets used in its operations. 

Property/Equipment Insurance

• MIHC will insure owned equipment (e.g., jerseys, goalie gear, training equipment, computers, awards) for replacement cost where feasible, at limits reflecting 100% of estimated replacement value. 
• Coverage may include theft, fire, vandalism, and certain off‑premises risks when equipment is stored or transported for games and tournaments. 

Crime/Fidelity Coverage

• MIHC will may obtain crime or employee/volunteer dishonesty coverage with at least 25,000 in limits (or higher, as recommended) to protect against theft or fraud involving cash, checks, or electronic funds, consistent with youth sports insurance best practices.

Given MIHC’s use of online systems, registration platforms, and cloud‑based accounting (e.g., QuickBooks Online and Crossbar), the club recognizes cyber and data‑privacy exposures involving member information. 

MIHC will evaluate and, where feasible, maintain Cyber Liability/Data Breach coverage to address:

• Costs of responding to a data breach or hacking incident (forensic investigation, notification, credit monitoring where appropriate).
• Liability for unauthorized access, privacy violations, or transmission of malicious code.
• Limited coverage for cyber extortion or ransomware events, if available and cost‑effective. 
• Cyber coverage will complement MIHC’s internal information‑security and privacy policies, including role‑based access controls, strong credential practices, and SafeSport‑aligned electronic communications standards.

The Board (through the Treasurer and Finance or Risk Management Committee) will review MIHC’s insurance program at least annually to confirm:

• Alignment with USA Hockey’s current insurance programs, requirements, and SafeSport framework. 
• Adequacy of limits and coverage types in light of MIHC’s size, activities, and risk profile. 
• Proper listing of “McKinney Ice Hockey Club” (and any related entities or DBA’s) as Named Insured where appropriate.
• Certificates of insurance and policy summaries will be maintained in MIHC records, and key coverage elements may be summarized for members upon request to promote transparency.