Reading-West Windsor Aging in Place, Inc.
Financial Control Policy
The board of directors has a fiduciary duty to ensure that the assets of this charitable nonprofit are used in accordance with donors’ intent, and in support of its charitable mission
I. GENERAL PRACTICE
All financial records of the Reading-West Windsor Aging in Place, Inc. will be maintained in a state of audit readiness.
Bank accounts may be opened only upon authorization by the Board of Directors. The signatories will be the Chair, Vice-Chair, and the Treasurer.
II. PROCEDURES FOR RECEIPT OF FUNDS
The Secretary or designated board member opens and copies all mail received by the organization (including any checks or cash enclosed), files the original documents (or copies of checks or cash enclosed) in the organization’s permanent records, and then distributes the pertinent materials to the appropriate officer, or officers, who must take further action on the communication.
Any communications or funds received by means other than mail must be passed on to the designated board member intact for processing as if received by mail.
The Treasurer receives all cash and check receipts from the designated board member, records each one separately in a numbered receipt book, endorses all checks “For Deposit Only, and deposits these receipts in the bank account within one week.
The Treasurer will deposit corporate funds as follows:
▪ Prepare a deposit slip in duplicate.
▪ Photocopy the checks and staple the photocopies to the copy of the deposit ticket that we keep. ▪ If cash will be included in the deposit, the Treasurer will attach a list to the duplicate deposit ticket which includes the sources of the cash and the receipt #s in the duplicate receipt book for each source of cash. ▪ File this documentation chronologically in a folder.
▪ Record the deposit in the bank account transaction register
At this time, the organization will not accept contributions by credit card.
While IRS rules require that we acknowledge all donations that are more than $75, our policy is to provide written acknowledgement for every gift we receive. Designated board members shall respond to each donation by letter, text or email thanking donors for their generosity. If the gift was cash, check or both, the letter should include the amount of the gift and state the amount of each. At this time, no donations other than by cash or check will be accepted and nothing of value will be returned to the donor in appreciation for the gift.
If we believe that a donor intends to restrict the use of funds in any way, the primary donor contact will follow up and get written confirmation of the donor’s intent. All communications with donors will be filed by the Secretary or a designated board member, including general and specific solicitations.
III. PROCEDURES FOR DISBURSEMENT OF FUNDS
All disbursements made from the organization’s funds will be made by check.
All checks written must be supported by an approved invoice, receipt, or reimbursement request signed by the person seeking payment. This documentation must be kept in a file organized in check number order by the Treasurer. The Treasurer will categorize all payments according to expense lines defined in the annual budget.
The Treasurer will ordinarily make all disbursements, with the Chair (or Vice-Chair) doing so only in the Treasurer’s absence.
By making a payment, the Treasurer (or Chair/Vice-Chair in the Treasurer’s absence) is indicating that he/she has completely reviewed the documentation supporting it, and confirming that the payment is made in accordance with this policy.
Checks require the signatures of both the Treasurer and the Chair/Vice Chair for amounts over $500.
If a check is voided, the check will have “VOID” written in large letters in ink on its face and have the signature portion of the check X’d out. Voided checks will be kept on file. In the event that it is necessary to issue a duplicate check in an amount over $50, the Treasurer will order a stop payment at the bank on the original check.
All outstanding checks will be followed up on by the Treasurer if they are more than three months old. Except in extraordinary circumstance, no outstanding check should be voided without written consent or request for replacement from the payee.
IV. RECONCILIATION OF BANK ACCOUNTS
All bank accounts will be reconciled by the Treasurer on an annual basis. The bank reconciliation should be completed on the statement received from the bank. The Treasurer is responsible for timely follow-up on any discrepancies. The Treasurer will compare the receipt book, the bank account transaction register and the bank statement’s list of transactions when performing the reconciliation.
The Secretary or designated board member shall review and initial each reconciliation after its completion.
V. AUDIT OF ACCOUNTS
The financial records of the organization will be audited on an annual basis by a board member who is not an officer and another individual not affiliated with the organization. At least one of the auditors shall have had significant experience with the administration of such books and records.
VI. ANNUAL FINANCIAL STATEMENTS AND TAX RETURN
As soon as possible after the audit is completed, an annual financial statement comparing actual receipts and disbursements to budget shall be distributed to the full board and any others who may be request it. Using these final numbers, the Treasurer, or agent retained to assist with the task, will file the required annual Internal Revenue Service report. The Treasurer should be cognizant of the fact that certain sections of this filing are public information and some are not.
VII. BUDGET AND FINANCIAL STATEMENTS
An annual operating budget shall be developed by the Treasurer for consideration at the annual meeting prior to the beginning of each calendar year. The budget shall at least categorize the coming year’s expected revenues by gifts, fees and other and expected expenses by contracted services, supplies, travel and other. Reports of actual income and expense compared to budget shall be presented by the Treasurer for review at each regular meeting during the year.
Financial Control Policy: Adopted on 9-17-2020, amended on 10-15-20 and 10-21-
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