Financial Operations

Startup and Cycle of Financial Operations

You can find mapped out here our bookkeeping procedures and cycles. The following is a summary of major recommendations.

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, with the office secretary acting as primary record keeper and check signers limited to the General Manage, board president, and treasurer. When the administrative staff is small, it may be desired to permit the office secretary / Administrator to sign checks. A second signature should be required.
  2. A double signature should be required for checks of all amounts. Amounts greater than $500 should require a board member’s signature.
  3. All disbursements should be by check. No checks should be written for cash.
  4. An itemized receipt, serving as voucher, should be required for all disbursements.
  5. Petty cash should be limited.
  6. Two bank accounts should be established, checking and savings.
  7. All deposits should be made to the savings account.
  8. All receipts should be deposited daily. Cash receipts should be discouraged.
  9. All transactions should be posted daily.
  10. A transfer from the savings account to the checking account should be made at the beginning of the month to cover the coming month’s cash requirements.
  11. Savings withdrawals should require the signature of two board members.
  12. The record keeper should be bonded, especially if entrusted with check signing responsibility.
  13. Bank accounts should be reconciled and compared with records on a monthly basis by a non-employee.
  14. An audit committee of parents should review financial results and records at least once a year and make a report to the board.
  15. The above responsibilities should be incorporated into employee job descriptions.

C. Accounting Cycles

1. Daily

a. Post all transactions.
b. Deposit all receipts.
c. Balance checkbook.

2. Weekly

a. Review records.

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 to checking account.
h. Report to board on financial status.

4. Periodically

a. Spot review records and accounts.

5. Annually

a. Review and report by audit committee of parents.

Share This