Accounting Policy and Procedures Manual.doc

SELF-HELP ENTERPRISESACME HOUSING ORGANIZATION(Organization Name)ACCOUNTING DEPARTMENTPROCEDURES MANUALJanuary 2003(Date Approved)TABLE OF CONTENTSINTRODUCTION1RESPONSIBILITIES1GENERAL POLICIES1 Compliance with External Policies2Security and Access2OVERVIEW OF SHEAHO ACCOUNTING SYSTEM2Data Backup3Funds Received3Funds Disbursed3Payroll System3DETAILED ACCOUNTING PROCEDURES34Funds Received34Special Conditions by Office Location41. Visalia Office42.Madera Office5Modesto Office5Receipt Book5Petty Cash65Fund Disbursements76Approvals and Authorization76SHEAHO Funds7Custodial Funds (if applicable)7Missing Invoices8Vendor Documentation8Check Writing Procedures8Check Approval Process9Electronic Payments and Transfers9Payroll10Payroll Preparation and Payment11Purchasing12Leases12Consultant/Contract Services12Furniture and Equipment1213Loans (if applicable)123Third Party Loans123Intra Fund Loans13Employee Loans13Computer Loans13Bank Accounts14Accounts Receivable14OTHER FINANCIAL SAFEGUARDS15Personnel Records System15SHEAHO Corporate Credit Cards156Employee Benefits16Employee Leave: Vacation and Sick Leave167Retirement17Other Benefits1781. Cafeteria 125 and Flexible Benefit Plan17182. Fitness Membership18Travel18Mileage Reimbursement18Travel Out of Service Area189Board of Directors Travel and Reimbursement19Allocation of Costs19Distribution of Office Costs19Indirect Costs1920Property and Inventory Control20Fixed and Capital Assets201Equipment Depreciation21Audits212Taxes and Reporting Requirements212Grants and Contracts232Budgets223Internal Reporting 234Record Retention234-245Special Funds.26Special Fund25Community Development Fund25General Fund25Washburn Fund25Scholarship Fund24Multi-Family Housing Projects Owned By SHEAHO25Multi-Family Housing Projects owned by SHEAHO-Controlled Single Asset Corporation26SHEAHO Subsidiaries26RRisk Management and Insurance26Investment Policy26APPENDIX A Staff Responsibilities27&28APPENDIX B SHE Staff & TitlesAPPENDIX C Signature Authority53Z:/FileRoot/FileRoot_1_20150316/2020-117e46c7348-15cd-40ce-b181-7bd71ac7734d792d78e266f690ed54c0f03fe9e7ebe0.pdfPolicies & Procedures TemplateIntroductionINTRODUCTIONThis manual puts in place basic accounting, billing, and cash control policies and procedures designed to protect and secure Self-Help EnterprisesAcme Housing Organization (SHEAHO),(Organization Name), ensure the maintenance of accurate records of financial activities and ensure compliance with governmental and private funding source reporting requirements. Where this manual conflicts with specific federal or State regulation or with SHEAHO(Organization Name)s Board policy (such as the SHEAHO Personnel plan), the regulations or board policy shall prevail.ResponsibilitiesRESPONSIBILITIES The Board of Directors formulates financial policies, delegatesdelegates administration of the financial policies to the Executive Director(Management Position), and reviews operations and activities. The Executive Director(Management Position) has responsibility for all operations and activities, including financial management.Exceptions to these policies may be made on an individual basis, as necessary, with the approval of the Executive Director(Management Position). The Controller (Financial Position) is responsible to the Executive Director (Management Position or board) for all financial operations. The Program Managers(Staff Position) are is responsible to the Executive Director (Management Position or board) forfor program operations.GENERAL POLICIESeneral Policies: (Example showing proper business practices) Current job descriptions will beare maintained for all staff members indicating their duties and responsibilities. There will arebe separation of financial duties and responsibilities so that no staff member has sole control over cash receipts, payroll, bank reconciliations, accounts payable or other accounting functions. Accounting duties will arebe rotated among Accounting Department(staff positions or staff) staff whenever possible. Financial Procedures will arebe reviewed annually by the Controller(Staff position). Separate General Ledger accounts will arebe maintained as required by funding source regulations. or for ease of reporting. Accounting forms and timeshesheets will arebe typewritten or completed in ink. Whiteout or correction tape will is not be used. Passwords must comply with organizational standards. They are to be treated confidentially and are not to be shared with other staff. Policies may be establisheshed requiring the expiration of passwords where appropriate. Exceptions to these policies may be made on an individual basis, as necessary, with the approval of the Executive Director.Compliance with External PoliciesSHEAHOs (Organization Name) accounting policies and procedures are consistent with: (choose the ones that apply or add additional as needed. Delete all others) Generally Accepted Accounting Principles (GAAP). OMB Circular A-122, “Cost Principles for Non Profit Organizations” OMB Circular A-110 “Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations” OMB Circular A-133 “Audits of States, Local Governments, and Non-Profit Organizations”. GASB 34Security and Access:To ensure that only authorized staff can access the financial, personnel, and payroll, computer, on-line and paper records of the organization: Security and access is determined by the Executive Director and the Controller(Staff position(s).Access to computer or on-line systems for accounting, personnel, payroll, and online and phone banking is controlled by individually assigned passwords(detail how this access is limited). Within each system, access permission will beis set to allow the appropriate level of access depending on staff positions and job duti.es. Access to the accounting, personnel, payroll, and onsite and phone banking is determined by passwords. Within each system, there is another access system which can be set to allow level of access depending on staff positions and job duties. Upon separation of a staff member, the password is immediately locked to prohibit any unauthorized activities or entries and keys to SHEAHO(Organization Name)s office(s) are returned. OVERVIEW OF SHEAHO(Organization Name) ACCOUNTING SYSTEMAccounting System:The financial records of SHEAHO(Organization Name) are maintained on fund-based accounting software(Type of accounting system. If manual so designate) using the (Accrual, modified accrual or Cash) basis of accounting. Access to the accounting system is controlled to maintain the reliability and integrity of the data. Security is set by the Controller (Financial Position) to allow different levels of access. The Controller (Executive/Board Position(s) and the Executive Director has(ve) full access to the entire system including setup and administration. Accounting staff have the ability to enter most information but cannot make changes to the program set-up or make other administrative changes. Authorized Pprogram staff hasve access to reporting and inquiry screens only and can make no changes too data(Note positions that have access to the accounting systems and whether or not it is limited to only certain modules or functions, if applicable).Data Backup:Backup is done daily to assure that the data is secure and will not be lost in the event of a computer failure. Tapes(Media used) are rotated according to the day of the week and once per month for six months. Year end back up (Media used) are kept for 2 years. Tapes(Media used) are stored in a locked fire-resistant cabinet. Funds Received:The funds received policies and procedures ensure that all in-coming funds are properly recorded and safeguarded through separation of duties and proper documentation. The Controller(Executive/board position(s) and Executive Director) designate which staff is authorized to collect in-coming SHEAHO(Organization Name) funds.Personnel System:Access to the personnel system is controlled to assure the confidentiality, privacy, and appropriate access to records and reliability of data. Access to the system is limited to the Executive Director, Controller, Bookkeeper and key administrative staff. Access to information can be controlled by different security levels within the system.FundsCheck Writing System Disbursed:Specialized procedures govern check writing and petty cash procedures. Only the Controller(Staff/board position) , Executive Director or Program Manager may authorize the issuance of checks. Access to the check printing system is limited to accounting staff and is controlled by passwords assigned(note control used) by the Controller(Staff position). Petty cash access is limited to staff assigned by the Controller(Staff position).Payroll System:Access to the payroll systems is controlled to assure accurate and confidential data. Access is limited to accounting staff responsible for payroll processes. Payroll is processed by an external payroll service(Staff position and, if applicable, External service initiated by staff position). One example of information to include here “Payroll data is maintained on line and transmitted to the payroll service for processing. The payroll service is responsible for tax payments and reports. The Controller (staff position) verifies the payments at the end of each month by analyzing the payroll service reports and the bank reconciliation statement.”Online and Phone Banking:Access is controlled to assure that only authorized transactions are made. Access is controlled by passwords and level of authority for different transactions.Accounting System:The financial records of SHE are maintained on fund-based accounting software. Backup is done daily to assure that the data is secure and will not be lost in the event of a computer failure. Personnel System:Personnel information is maintained with personnel software. Personnel files are maintained in locked file cabinets. The files contain all personnel related information including hire letters, appraisal forms, notices, and reports. Access is controlled by the Executive Director and Controller.DETAILED ACCOUNTING PROCEDURESPayroll System:Payroll is processed by an external payroll service. Payroll data is maintained on line and transmitted to the Payroll People for processing twice a month. The payroll service is responsible for tax payments and reports.Cash ReceiptsFunds Received The cash receipts policies and procedures ensure that all receipts are properly recorded and safeguarded through separation of duties and proper documentation. Cash (will or will not) be accepted from participants for payment of deposits, credit checks, loan payments, etc. Cash may be accepted from staff or others in payment of amounts due to SHEAHO(ORGANIZATION NAME) in amounts less than $10.00(designate amount, if applicable) for copies, faxes, or other expenses. In each office, mail is to be opened promptly and distributed by the front office staff(Staff position 1). All checks, money orders and cash will beare promptly logged into a “Cash Receipts Log” maintained (note whether a computer spreadsheet, manual ledger, etc.) and then given to the designated staff responsible(Staff position(s) 2) for handlingprocessing these receipts. The staff person who distributes/opens the mail (Staff position 1) will restrictively endorse the back of any checks received; and enter into the “Cash Receipts Log” prior to distributing checks to designated staff.give any checks to the designated staff. The designated staff(Staff position 1) will log in-coming fundscash oninto a pre-numbered duplicate log shesheetsCash Receipts book. A pre-numbered receipt will be issued or mailed to participantsissuer of cash by the staff person receiving the funds.(Staff position 1), preferably at time of receipt.Funds collected by approved Loan Processors will beis turned into the office with a receipt copy as soon as possible but no later than the following day. All Checks will beare stamped “For Deposit Only” for the appropriate bank account by the Account Clerk or designated staff when preparing deposits.Documentation for receipts (letter, stubs, etc.) will beis filed in chronological vided with the checks/cash when forwarded to designated staff for processing and deposit. Funds awaiting bank deposit will beare kept in a locked file/safe with access limited to staff designated by the Controller(Executive position).The Deposit Data Entry SheSheetet will be completed prior to the deposit by the Account Clerk and will include the name of the individual or entity making the payment, the amount received and the account number to which it is to be credited. The Deposit Data Entry SheSheetet with a dDuplicate deposit slip attached will beis filed in numerical order. (Staff position 2) Everifies the checks and cash to documentation received, makes copy of checks and prepares deposit for delivery to bank.Note how deposit gets to the bank, i.e. designated staff delivers or bank courier picks up. Is a log kept of the daily or weekly deposits that went to the bank and who took them.Bank confirmations are delivered to the (Staff position) to attach to back up documentation. The deposit is entered into the accounting system by (Staff position), and then filed in chronological order into a Cash Receipts file/folder for the month. ntry of deposits into the accounting system is done by the Bookkeeper as soon as possible after the deposit.Copies of the Data Entry SheSheet are distributed to the Controller and others according to a list establisheshed by the Controller.At the end of the month, (Staff position 1) totals each column of the Cash Receipts log verifying that all bank account totals add up to total funds received for the month and then prints out the log, retaining one copy, for the auditors, and forwarding a second copy to (Executive position) or other designee to verify against the deposits listed on the bank statement(s). Special Conditions by Office Location1. Visalia OfficeAll cash and checks along with the cash log will beare taken to the assigned Account Clerk daily by 4:00 P.M.The cash log will beis checked with the cash and checks and will beis initialed by the Account Clerk indicating that the money agrees with the log shesheetet.The deposit data entry shesheetet and/or deposit slip will beis submitted to the bank with the deposit. The Bookkeeper will makes deposits at banks as necessary. A bank courier may be used for deposits. Deposits will beare made two times a week (Wednesday and Friday). Duplicate deposit receipts are mailed to SHEAHO by the bank. Cash will not be accepted for payment of deposits or credit checks. Cash will only be accepted from staff or others for less than $10.00 for copies or faxes. Checks, Money Orders and cash will be promptly given to and logged in by the designated secretary. The staff person who distributes/opens the mail will give any checks to the secretary to be logged in on pre-numbered duplicate copy log sheets. Receipts will be issued or mailed to participants by the staff person receiving the money and to donors by the Administrative Assistant. All cash and checks along with the Cash Log will be taken to the assigned Account Clerk daily by 4:00 P.M. The cash log will be checked with the cash and checks and will be initialed by the Account Clerk indicating that the money agrees with the log sheet All Checks will be stamped “For Deposit Only” for the appropriate bank account by the Account Clerk when preparing deposits. The Deposit Data Entry Sheet will be completed prior to the deposit by the Account Clerk and will include the name of the individual or entity making the payment, the amount received and the account number to which it is to be credited. The deposit data entry sheet and/or deposit slip will be submitted to the bank with the deposit. A bank courier may be used for deposits. Deposits will be made two times a week (Wednesday and Friday). Duplicate deposit receipts are mailed to SHE from the bank. The Bookkeeper will make deposits at banks as necessary.2.Funds awaiting bank deposit will be kept in the locked file/safe with access by the accounting staff.Any documentation for receipts (letter, stubs, etc.) will be filed in chronological order. The Deposit Data Entry Sheet with the duplicate deposit slip attached will be filed in numerical order. Copies of the Data Entry Sheet are distributed to the Controller and others according to a list established by the Controller. Entry of deposits into the accounting system is done by the Bookkeeper as soon as possible after the deposit is made. Madera Officeo Checks or money orders delivered or mailed to the office will beare listed on the Deposit Transmittal form with all identifying information completed by the designated staff person. A pre-numbered receipt will be issued by the staff member receiving the funds for each check or money order. The receipt will be issued to the person delivering the funds on behalf of the participant or mailed if the funds were received in the mail. Funds collected by Loan Processo