A. General Objectives
1. To facilitate the conduct of business.
2. To help assure the security of funds.
3. To help maximize the use of funds.
B. Procedural Elements
1. Record keeping and check signing functions should be done by different people to as great an extent as possible.
a. Primary record keeper: School Secretary
b. Check signers preferably limited to the following:
1) Head of School
2) Board President
3) Board Treasurer
Small schools sometimes permit the School Secretary to also sign checks with a second signature.
2. Signature limits for checks.
a. Double signature required for all amounts.
b. Amounts greater than $5OO require an officer’s signature.
3. All disbursements should be by check.
a. No checks should be written for cash.
4. An itemized receipt as voucher required for all disbursements.
5. No banking or courtesy functions should be performed.
6. Two bank accounts should be established.
a. Checking.
b. Savings.
7. All deposits should be made to the savings account
a. Washouts are a possible exception 8. All receipts should be deposited daily.
a. Cash receipts should be discouraged
8. All transactions should be posted daily.
9. A transfer from the savings account eo the checking account should be made at the beginning of the month to cover the coming month’s cash requirements.
10. Savings withdrawals should require the signatures of two officers. ~
11. The record keeper should be bonded, especially if entrusted with check signing responsibility.
12. Bank accounts should be reconciled and compared with records on a monthly basis by a non-employee.
13. An audit committee of board members should review financial results and records at least once a year, and make a report to the full Board and Membership.
14. The above responsibilities should be incorporated into employee job descriptions.
C. THE FOLLOWING CYCLES OF PERIODIC EVENTS ARE RECOMMENDED TO MAINTAIN THE SYSTEM
1. Daily cycle
a. Post all transactions.
b. Deposit all receipts.
c. Balance checkbook.
2. Weekly
a. Review records (interim).
3. Monthly
a. Close records.
b. Post reporting statements.
c. Reconcile bank accounts.
d. Compare statements to records.
e. Compare results to budget.
f. Determine cash needs for coming month.
g. Transfer funds from savings co checking accounts.
h. Report to Board on financial status.
4. Periodic.
a. Spot review records and accounts.
5. Annually.
a. Review and report by audit committee of board members
