St. Laurence Education, Inc.

Internal Controls for Finances

Revised February10th, 2006

 

 

 

Job description for treasurer

 

1.     Fills out 990EZ in a timely manner

2.     Gives treasury report to board including a balance sheet and profit and loss cover sheet for monthly meeting.

3.     Reconciles bank statements monthly and in case of discrepancies, informs board chair.

4.     Updates signature card at the bank annually.

5.     Assists in the compilation, review or audit of St. Laurence.

6.     Reports on all fundraising receipts and disbursements.

7.     Assists with annual budget.

8.     Will review contribution/donation log on a quarterly basis.

 

 

Policy and Procedure

 

1.     The board of directors determines who has the authority to write and sign checks and does so by formal resolution.  The corporate resolutions are held at all banking institutions.

2.     Authorized check signers are treasurer, secretary, and designated board member.

3.     Checks can be written by authorized check signers, but cannot be signed by the payee.  The business manager can write but not sign checks. 

4.     Checks over $1000 need two signatures and approval from board chair.

5.     Keep copies of all checks, both received and written.

6.     Money is deposited in bank by those authorized to sign checks or designee.

7.     Bank statement is reconciled monthly by treasurer, then reviewed and signed off by the Executive Director.

8.     All payroll reports are given to treasurer monthly.

9.     All checks are logged into regular checking account register kept by the business manager or treasurer.

10. Upon receipt of donation report, development director ensures that all required recordkeeping is performed.

11. All expenses /invoices for payment are submitted to the business manager or treasurer.

Items are scanned for reasonableness of expenses. A check is written. Please see # 3 of policy and procedures above. Business manager or treasurer keeps all invoices, payments and receipts filed appropriately in St. Laurence file.

12. Board chair in conjunction with staff prepares an operating budget annually for presentation to and approval of the board. The executive director creates the operating budget for the school with the finance committee.

13. With all contributions and donations the development director receives .

·        A hardcopy of donor check      

·        An electronic and/or hardcopy of Quickbooks report giving name of donor, address, amount given, restrictions on money.

·        Thank you letters are sent out within 15 days of receipt of donation in a timely manner.

·        Treasurer will review these donations on a quarterly basis.

14.  Grant checks should be copied and placed in individual grant file.

15.  Those participating in sponsorship receive a Thank You for the first check, and at the end of the calendar year accounting for their total of giving for that calendar year.

16. The proposed version of the operating budget is presented to the Board of Directors by the treasurer prior to the beginning of the new fiscal year.  The process assumes that the Board members may propose changes to the budget. The treasurer and/or the board chair will then amend the budget and submit this revised budget to the entire board for approval.

·        Once all proposed changes to the budget have been made, the operating budget is presented for approval of the board before the beginning of the next fiscal year.

17.  Saint Laurence maintains its financial records in accordance with generally accepted accounting principles.

18.  Financial records are kept in Quickbooks for non-profits.

19.  Currently Paychex prepares payroll records.  Information is supplied to Paychex by authorized personal.

20.  We have a fixed asset schedule in place and it will be maintained by the treasurer and reviewed by the chair board or designee on a quarterly basis.

·        Depreciation is adjusted at fiscal year end.

21.  All asset acquisitions over $1000 require approval from board chair or designee.

22.  Blank checks are kept in a secure place with treasurer and in St. Laurence file.


Financial Reports

 

  1. The treasurer will prepare monthly financial reports and such reports must be accurate and prepared in a timely manner.
  2. Monthly financial reports will consist of statement of financial position and statement of activities (income and expense statements).

 

Processing Disbursements

 

1.     The business manager or treasurer approves invoices or requests for payments.

·        The president of the organization approves board chair expenses. The business managers’ signature should be recorded on the invoice or expense report.

2.     The business manager or treasurer prepares a check.

a.     In the event that prompt payment is required, electronic payments may be made to know vendors with the verbal or electronic approval of designated check signers.

 

Contract Approval

 

Any contracts that bind the organization need to be approved by the board of directors and reviewed by legal council at the board’s discretion.

 

Entertainment

 

          Entertainment costs will be allowed in the best interest of Saint Laurence.

 

Property and Equipment

 

          For recording of fixed assets of property and equipment, threshold amount consideration any amount over $1000. Property and equipment, including donations, with a useful life greater than one year are capitalized and are stated at cost or fair value if contributed.  Depreciation is computed using the straight-line method over the estimated useful lives of the assets.

 

Donated Services and Rent

 

          Consideration to examine donated services, material and rent, by board chair and treasurer on quarterly basis. (Treasurer to book entry if required)  Follow-up with year-end thank you letter in a timely manner.