Model Policies and Procedures for Not-for-Profit Organizations

MODEL POLICIES AND PROCEDURES FOR NOT-FOR-PROFIT ORGANIZATIONS......Page 5
Contents......Page 9
List of Forms......Page 19
About the Author......Page 23
Preface......Page 25
Section 1: Internal Financial Statement Formats......Page 27
STATEMENT OF FINANCIAL POSITION......Page 28
CONSOLIDATED STATEMENT OF UNRESTRICTED ACTIVITIES......Page 30
STATEMENT OF UNRESTRICTED ACTIVITES BY FUNCTION......Page 31
STATEMENT OF CHANGES IN NET ASSETS......Page 32
Section 2: Chart of Accounts......Page 33
Chart of Accounts Issuance Form......Page 34
ASSETS......Page 35
CLEARING ACCOUNTS......Page 38
LIABILITIES......Page 39
NET ASSETS......Page 40
REVENUES......Page 41
EXPENSES......Page 44
FUNCTIONS......Page 48
Section 3: The Policies and Procedures Manual......Page 49
Web Site Information......Page 50
Accounting and Financial Interns......Page 51
Accounting Computer File Back-Up Procedure......Page 52
Accounting Method......Page 54
Accounts Receivable Write-Off Procedures and Authority (Bad Debts Procedures)......Page 55
Amortization......Page 57
Board-Designated Funds......Page 58
Budget and Finance Committee......Page 59
Cancellation of Purchase Order......Page 60
Chart of Accounts......Page 62
Clearing Accounts......Page 64
Collection Procedures......Page 65
CPA Firms: Audited Financial Statements......Page 67
CPA Firms: The Management Letter......Page 70
CPA Firms: Use of Other Firms......Page 73
Date and Time Received Stamp......Page 74
Deposit of Receipts......Page 75
Discounts Lost......Page 76
Donated Property......Page 77
Expense Reimbursements—Chief Staff Executive......Page 79
Financial Statement Preparation and Distribution......Page 80
Inventory: Give-Aways......Page 81
Inventory Valuations......Page 83
Inventory: Write-Off......Page 84
Investment Policy......Page 86
IRS Forms: Form 1099......Page 88
Journal Entries......Page 90
Leases......Page 92
Long-Term Debt......Page 93
Nondeductibility of Dues......Page 94
Nonsuffi cient Funds Checks......Page 95
Optional Proxy Tax......Page 97
PAID Stamp......Page 98
Payment Terms......Page 99
Permanent Travel Advances......Page 101
Petty Cash Fund Disbursements......Page 103
Photocopying Expenses......Page 106
Postage Log......Page 108
Purchase Orders......Page 110
Records Retention......Page 113
Reimbursement of Board/Committee Expenses......Page 119
Repairs and Improvements......Page 120
Salaries and Fringe Benefi ts Accruals......Page 121
Serial Numbers (Fixed Assets)......Page 122
Telephone Expenses......Page 123
Travel Advances......Page 126
Travel Expenses......Page 128
Unrestricted Net Assets......Page 133
Voided Checks......Page 134
Write-Off of Old Checks......Page 136
Affinity Programs......Page 139
Alcohol and Controlled Substances......Page 140
Americans with Disabilities Act......Page 141
Antitrust......Page 142
At-Will Employment......Page 143
Background Checks—Prospective Employees......Page 144
Bereavement (Funeral) Leave......Page 146
Bid Requirements......Page 147
Binding Arbitration......Page 149
Board of Director Fiduciary Responsibilities......Page 150
Certificate of Authority......Page 152
Computer Passwords......Page 154
Conditions of Employment Agreement......Page 155
Confi dentiality of Information......Page 158
Contract Signing Authority......Page 161
Correspondence......Page 162
Disciplinary Action......Page 164
Diversity......Page 165
Document Sign-Out Form......Page 166
E-Mail and Internet......Page 168
Emergency Contact Form......Page 171
Equal Pay Act......Page 173
Exit Interview......Page 174
Fair Labor Standards Act (FLSA)......Page 175
Fax Machine......Page 177
Form I-9/Immigration Reform and Control Act (IRCA)......Page 178
Forms Manual/Retired Forms Manual......Page 179
Fringe Benefits......Page 180
Grievances and Complaints......Page 181
Hold Harmless Agreements......Page 182
Inclement Weather......Page 184
Independent Contractors......Page 185
Injuries/Worker’s Compensation......Page 189
Key Employee Insurance......Page 191
Key Employees......Page 192
Legal Audit......Page 194
Legal Counsel Attendance at Board Meetings......Page 195
Legal Protection for Board and Staff......Page 196
Lines of Credit......Page 198
Lobbying Disclosure Act (LDA)......Page 200
Mailing List Sales......Page 201
Management Day......Page 202
Military Obligations......Page 204
Music Licensing......Page 205
Noncompete Agreements......Page 206
Office Equipment......Page 209
Outside Employment......Page 211
Permissions/Waivers......Page 212
Plagiarism......Page 214
Policy Amendment, Deletion, or Additions......Page 216
Political Education Funds......Page 218
Press Releases/Media Contacts......Page 219
Quarterly Staff Meetings......Page 221
References (Former and Current Employees)......Page 222
Remote Access to Computer Network......Page 223
Safe and Safe Combination......Page 225
Safe Deposit Box......Page 228
Safety Committee......Page 231
Software Licenses (Anti-Piracy)......Page 233
Staff Training......Page 234
Suggestions......Page 235
Taking Work Home......Page 237
Temporary Employment Agencies......Page 239
Time Sheets......Page 241
Uniformed Services Employment and Reemployment Rights Act (USERRA)......Page 243
Use of Premises......Page 244
Utilization of Office Equipment......Page 247
Worker’s Compensation Insurance......Page 249
Year-End Manual......Page 250
Acronyms......Page 253
Approved Vendor Listing......Page 255
Bank Account Reconciliations......Page 257
Bank Statement Mailings......Page 258
Cash Register Issues......Page 259
Cash Transactions......Page 260
Check 21 Issues......Page 261
Check Disbursements......Page 262
Check Signers......Page 265
Check Stock......Page 266
Control over Checks and Cash......Page 267
Credit Cards......Page 268
Deposit Security and Restrictive Endorsements......Page 272
Direct Deposit......Page 273
Documenting a Fraud Action Plan......Page 274
Errors and Omissions Insurance......Page 277
Ghost Employees......Page 278
Ghost Vendors......Page 280
Gifts......Page 282
Insurance Committees......Page 285
Inventory Issues......Page 286
Kiting......Page 287
Lockbox......Page 288
Officers and Directors Liability Insurance......Page 290
Payroll Tax Issues......Page 291
Professional Liability Insurance......Page 292
Statement of Auditing Standard No. 99 (SAS 99)......Page 293
Unannounced Bank Statement Reconciliation......Page 294
Window of Opportunity for Embezzlement......Page 295
Wire Transfers......Page 299
Disclosure of Information......Page 301
Disclosure of Records, General Public, Requests Made in Writing......Page 305
Board of Directors’ Examination of Records......Page 306
Form 990-T......Page 307
The Sarbanes-Oxley Act of 2002......Page 309
Code of Ethics for Financial Management......Page 310
Whistle-Blower Protection......Page 312
Internal Audit Committee......Page 313
Certification of Financial Statements......Page 314
Conflict of Interest Form......Page 316
Summary......Page 318
Committee Meeting Attendance......Page 319
Posting Meetings......Page 320
Personnel Files......Page 321
Glossary of Accounting andFinancial Terminology......Page 323
Index......Page 329