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Accounting Policies and Procedures Manual

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Accounting Policies and Procedures Manual

Accounting Policies and Procedures Manual

    Xxx

    Accounting Policies and Procedures Manual

    Table of Contents

Introduction 1

    Division of Duties 2

    Cash Receipts Procedures 4

    Cash Disbursements Procedures 6

    Reconciliations 8

    Petty Cash Fund 11

    Purchases 12

    Fixed Asset Management 15

    Payroll 16

    Financial Reporting 18

    Grant Compliance 19

    Fiscal Policy Statements 21

    Annual Meeting Checklist 23

    Computer System Backup Procedures 24

    Introduction

    This manual has been prepared to document the internal accounting procedures for the

    Xxx (XXX). Its purpose is to ensure that assets are safeguarded, that financial statements are

    in conformity with generally accepted accounting principles, and that finances are managed

    with responsible stewardship.

    All personnel with a role in the management of XXX's fiscal operations are expected to

    uphold the policies in this manual. It is the intention of XXX that this accounting manual

    serve as our commitment to proper, accurate financial management and reporting.

    Revised 1/26/97

    ??1??

    Division of Duties

    The following is a list of personnel who have responsibilities within the accounting department:

    President: 1. Reviews and approves all financial reports.

    2. Reviews and approves annual budget.

    3. Reviews the payroll summary for the correct payee, hours worked and check amount. 4. Reviews all vouchers and invoices for those checks which require his or her signature. 5. Reviews and approves all contracts for goods and services that will exceed $10,000 over

    the year.

Vice President:

    1. Approves all vouchers, invoices and checks.

    2. Receives unopened bank statements.

    3. With the Fiscal Manager, and input from the President and Program Directors, develops

    the annual budget.

    4. Reviews and approves all financial reports.

    5. Reviews and approves list of pending check disbursements.

    6. Reviews all vouchers and invoices for those checks which require his or her signature. 7. Authorizes all interfund transfers.

    8. Reviews all bank reconciliations.

    9. Reviews the payroll summary for the correct payee, hours worked and check amount. 10. Approves all reimbursements.

    11. Manages the assets accounts.

Fiscal Manager:

    1. Processes all receipts and disbursements.

    2. Processes the payroll, including payroll tax returns.

    3. Submits requests for interfund transfers.

    4. Maintains and reconciles the general ledger monthly.

    5. With the Vice President, and with input from the President and Department Directors,

    develops the annual budget.

    6. Prepares all financial reports, including requests for reimbursements. 7. Manages the petty cash fund.

    8. Reconciles the bank accounts.

    9. Reconciles the statement of credit card deposits and service charges. 10. Doublechecks all reimbursement requests against receipts provided.

Office Assistant/Receptionist:

    1. Receives and opens all incoming mail, except the bank statements.

    2. Prepares cash receipts log and invoice log.

    ??2??

3. Mails all checks for payments.

    4. Processes credit card payments for publications.

    Director with Most Seniority: (currently the Director of Programs) 1. Acts as second signator on checks.

    2. Reviews all vouchers and invoices for those checks which require his or her signature.

    All Department Directors: 1. Develops first draft of department budgets and works with the Vice President and

    President to finalize.

    2. Accountability to approved departmental budgets in purchasing decisions and in

    preparing check request vouchers with the proper account code.

    Program Assistant, Membership 1. Processes credit card payments for member dues and conference registration fees.

    Designated Board Members (Currently the Chair, Vice Chair, and Treasurer) 1. Check signing authority on all XXX accounts.

    2. Authorizes expenditures in excess of $10,000, except preapproved capital expenditures

    (such as rent) which might exceed $10,000.

    ??3??

    Cash Receipts Procedures

    The Office Assistant receives all incoming mail. All checks received by the Office Assistant should be recorded on a cash receipts log which states the department to which the income is attributed, and stamped Afor deposit only@. The Office Assistant then makes two copies of the check with one copy forwarded to the Fiscal Manager and the other copy to the responsible department. A copy of the cash receipts log will be given to the Vice President on a daily basis.

    Next, the Fiscal Manager prepares a deposit slip and deposits the funds into the savings account. The validated deposit slip should be attached to the Fiscal Manager=s cash receipts log and filed. All check copies should be filed according to month received. A deposit not forwarded or mailed to the bank should be locked in the accounting department=s lock box. No deposit should be locked in the file cabinet for more than 24 hours. If the funds are mailed to the bank, the Fiscal Manager should indicate the date mailed and received on the cash receipts log. The Fiscal Manager should make a copy of each check mailed and file them in a separate file folder.

    No single account should contain more than $100,000 - or the amount over which the FDIC will not insure.

Funds Received by Wire Transfer:

    The Vice President will request a wire transfer of funds. This request will be prepared by the Fiscal Manager and should be signed by the Vice President.

    Where appropriate - as in reimbursement of federal funds - the Fiscal Manager should forward a project financial statement to the Vice President who prepares a request for reimbursement or advance and files or mails the necessary documents, providing a copy to the Fiscal Manager.

    Next, the Fiscal Manager will monitor the transfer of funds and maintain the appropriate records of this transaction.

    As soon as the funds are credited to the XXX savings account, the bank should send a credit memo to the Fiscal Manager. The Fiscal Manager should reconcile these credit memos to the total cash received at the end of the month.

    In the absence of the Vice President, the President or, in dire emergencies, the Treasurer of the Board of Directors, should authorize wire transfers.

Inter-Fund Transfers:

    The XXX operating checking account should not exceed $10,000 at any time. All funds received should be deposited into the savings account. It will be necessary to transfer funds

    ??4??

from the savings account into the checking account. In order to transfer funds from the

    savings into the checking account, the following procedures should be followed:

    The Fiscal Manager should monitor the balance in the checking account, and determine if

    there are adequate funds to pay the daily expenses. The Fiscal Manager should prepare a

    transfer memo for signature by the Vice President to transfer the necessary amounts from the

    savings account to the checking account, as long as the remaining balance does not exceed

    $10,000. These transfers will occur concurrently with the associated disbursements.

    Funds received from Credit Card Charges: The Office Assistant and the Program Assistant, Membership are responsible for processing

    the receipt of funds through the credit card authorizer directly into the savings account.

    Transactions should be processed on a weekly basis, with a list of the credits and date

    processed delivered to the fiscal manager in order to doublecheck against the bank statement.

     The statement of deposits and service charges will be reconciled by the Fiscal Manager.

    ??5??

    Cash Disbursements Procedures

1. Incoming invoices will be logged in by the Office Assistant (naming the staff person

    responsible for ordering the product or service) and delivered to the responsible staff

    person. for his/her approval and to prepare a check request voucher prior to

    disbursement dates.

    2. The staff person responsible for ordering the product or service will check the validity

    of the invoice against proposals/bids, etc. and work accomplished/delivered and prepare

    a check request voucher prior to disbursement dates.

    3. Twice monthly on the 1st and 16th days (or the next business day if the date falls on a

    weekend or holiday), cash disbursements should be prepared by the Fiscal Manager for

    signature by authorized XXX officials for expenses, debts and liabilities of XXX. 4. The Fiscal Manager is responsible for the preparation of disbursements. All

    disbursements are to be made by check unless the item is considered a petty cash item. 5. A check request voucher should then be completed by the purchasing staff person and

    attached to the original vendor invoice, and/or any other supporting documentation.

    The voucher should include the account codes to which the expense will be applied.

    Approval for an expense by the Vice President must be indicated on the check request

    voucher.

    6. After inputting all the check requests, the Fiscal Manager will prepare a master list of all

    checks to be paid for approval by the President or Vice President. If there are any

    questions or concerns about the amounts, the Fiscal Manager should provide necessary

    information prior to running any disbursements. If there are any items removed from the

    batch, the totals on the payment summary form should be corrected, initialed and dated

    by the President or Vice President.

    7. The Fiscal Manager should then run an aging accounts payable, which is generated by

    the accounting software. A total of the disbursements to be paid will be recorded on the

    form and sent to the Vice President for approval, along with the current balance in any

    and all cash accounts.

    8. Once the amount to be disbursed has been received, the Fiscal Manager should print the

    checks from the computer system. The checks should be attached to the invoice, and

    other supporting documentation, being paid and submitted for signatures. A check

    register should be run and filed together with the disbursement transmittal form. 9. While the President, Vice President, and/or Director signs each check, he/she should

    double check the check request voucher. This approval is to ensure the account and

    grant/project is charged to the correct expense and line item. Any checks made to pay

    invoices in excess of $10,000 must be signed by the President and authorized for

    payment in writing by one of the Board of Directors authorized for signature.

    ??6??

10. After the checks have been signed, the second signatory will double check the work,

    cancel the invoice by stamping APAID@ on it in red ink, and pass the checks on to the

    Office Assistant for mailing. In the event that the Office Assistant is out, the

    administrative assistant will assume these duties.

    11. All checks will be mailed as soon as this process is completed.

    12. Supporting documentation should be filed by the Fiscal Manager in appropriate vendor

    files.

    13. The Fiscal Manager will utilize the paid invoice files to respond to any discrepancies

    which arise with vendors or other payees.

    14. Once monthly, the fiscal manager will check the invoice log to determine if there are any

    outstanding invoices which have not yet been paid. If so, the fiscal manager will

    investigate the nonpayment of these invoices with the responsible staff member.

    ??7??

    Reconciliations

Cash Flow:

    XXX is to maintain a minimum of ten percent (10%) of the operating budget between its

    operating and savings bank accounts at all times. In the event that balances fall below that

    amount the President and Treasurer should be notified immediately.

Bank Reconciliations:

    1. Bank statements are to be received unopened by the Vice President. The receiving party

    should review the contents for inconsistent check numbers, signatures, cash balances

    and payees and endorsements at a minimum. After this cursory review is conducted, the

    official should initial and date the bottom, right hand corner of the first page of each

    bank statement reviewed. The reviewed bank statement should then be forwarded to

    the Fiscal Manager (an individual without check signing rights) to reconcile the bank

    accounts using the approved reconciliation form.

    2. The person charged with this responsibility should reconcile each account promptly

    upon receipt of the bank statements. All accounts will be reconciled no later than 7 days

    after receipt of the monthly bank statements. In the event it is not possible to reconcile

    the bank statements in this period of time, the President or Vice President should be

    notified by a written memo from the Fiscal Manager.

    3. When reconciling the bank accounts, the following items should be included in the

    procedures:

    a. A comparison of dates and amounts of daily deposits as shown on the bank

    statements with the cash receipts journal.

    b. A comparison of inter-organization bank transfers to be certain that both sides of

    the transactions have been recorded on the books.

    c. An investigation of items rejected by the bank, i.e., returned checks or deposits.

    d. A comparison of wire transfers dates received with dates sent.

    e. A comparison of canceled checks with the disbursement journal as to check

    number, payee and amount.

    f. An accounting for the sequence of checks both from month to month and within

    a month.

    g. An examination of canceled checks for authorized signatures, irregular

    endorsements, and alterations.

    h. A review and proper mutilation of void check.

    i. Investigate and write off checks which have been outstanding for more than six

    ??8??

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