The
bank will be instructed to contact the Executive Director for all usual items
such as insufficient funds notice.
YADKIN COUNTY PARTNERSHIP
FOR CHILDREN
ACCOUNTING
POLICIES AND PROCEDURES
ABBREVIATIONS
AA Administrative Assistant
ADP Automatic Data Processing (Payroll Agent)
BD Board of Directors
BDMB Board Member
ED Executive Director
EC Executive Committee
FCM Fiscal/Contracts Manager
GENOFF General Office Staff
MAC Multipartnership Accounting and Contracting Site
NCPC North Carolina Partnership for Children
PC Program Coordinator
SUBCOM Sub-Committee of Board of Directors
YCPC Yadkin County Partnership for Children
GENERAL POLICY
POLICY
It is the policy of the Yadkin County Partnership for Children , to ensure that policies and procedures are developed based on appropriate accounting standards and in compliance with Internal Revenue Codes and North Carolina General Statutes. The enforcement of these policies and procedures will promote conducting business in a manner which complies with all applicable accounting practices. Compliance with the following procedures and duties is essential to achieving this goal.
The following procedures are necessary to ensure proper policy development and enforcement:
1. Policies and procedures for accounting practices will be developed.
2. Authorization and enforcement of accounting practices will be conducted.
3. Modification of policies and procedures is not permissible unless authorized by the board of directors.
DUTIES
To carry out the procedures necessary to ensure proper policy development and enforcement, the following duties must be performed:
ED 1. Policies and procedures will be developed.
EC 2. Review and evaluation of policies and procedures.
BD 3. Approval of policies and procedures.
ED 4. Enforcement of policies and procedures.
OPEN MEETING & PUBLIC RECORDS LAW
POLICY
It is the policy of the Yadkin County Partnership for Children, to comply with Article 33C of Chapter 143 of the General Statutes, Open Meetings Law, and Chapter 132 of the General Statutes, Public Records Law. Compliance with the following procedures and duties is essential to achieving this goal.
PROCEDURES
The following procedures are necessary to ensure proper policy development and enforcement:
1. Copies of the Open Meetings Law and Public Records Law will be obtained.
2. Authorization and enforcement of activities per the laws requirements will be conducted.
DUTIES
To carry out the procedures necessary to ensure proper policy development and enforcement, the following duties must be performed:
ED 1. Notices for compliance with the Open Meetings Law and Public Records Law will be written and maintained.
ED 2. Review and approval of notices will be conducted.
BD 3. Review activities of the North Carolina Partnership for Children to ensure compliance with the Open Meetings Law and Public Records Law.
SEGREGATION OF DUTIES
POLICY
It is the policy of the Yadkin County Partnership for Children , to ensure that all activities relating to financial management are conducted in a manner which promotes, documents and enforces adequate segregation of duties. Compliance with the following procedures and duties is essential to achieving this goal.
PROCEDURES
The following procedures are necessary to ensure proper segregation of duties:
1. Segregation relating to financial duties will be developed and outlined in each individual policy and procedure.
2. Authorization and enforcement of segregation of duties will be conducted.
DUTIES
To carry out the procedures necessary to ensure proper segregation of duties, the following duties must be performed:
ED 1. Segregation of duties for each policy and procedure will be developed.
EC 2. Review and evaluation of segregation of duties.
BD 3. Approval of segregation of duties as outlined in the policies and procedures.
ED 4. Enforcement of segregation of duties as outlined in the policies and procedures.
BUDGETS
POLICY
It is the policy of Yadkin County Partnership for Children, (YCPC), to develop policies and procedures designed to establish, approve and enforce budgets. Compliance with the following procedures and duties is essential to achieving this goal.
PROCEDURES
The following procedures are necessary to ensure proper budget cycles:
1. Budgets will be prepared and submitted for each program.
2. A final budget will be established and approved by the Board of Directors.
3. Policies will be prepared to make changes to approved budgets by the
Executive Committee.
DUTIES
To carry out the procedures to ensure proper budget cycles, the following duties must be performed:
ED/PC 1. Yearly budgets are to be submitted along with the yearly plans.
BD 2. Review and approval of the yearly budgets.
FMC/ED 3. Monthly review of budgets to prevent variation from budgeted amounts and to ensure consistency with activities.
ED 4. Quarterly review and acknowledgment of budget expenditure report.
EC 5. Executive Committee approval is necessary for all budget revisions over 25% of that object item.
CASH MANAGEMENT
POLICY
It is the policy of the Yadkin County Partnership for Children, to ensure proper cash management by developing policies and procedures designed to maximize interest-bearing investments of cash and minimize non-productive cash balances. Compliance with the following procedures and duties is essential to achieving this goal.
PROCEDURES
The following procedures are necessary to ensure proper cash management:
1. All bank accounts will be authorized by the board of directors of the YCPC. (This authorization will be reflected in minutes from board meetings.)
2. All bank accounts will be reconciled each month by the MAC site who does not participate in other cash procedures, including handling currency, receipts, or signing checks.
4. The
bank will be instructed to contact the Executive Director for all usual items
such as insufficient funds notice.
5. Monies due to the YCPC will be promptly billed, collected, and deposited.
6. All deposits will be made a minimum of once a week, and at any time when funds of $250.00 or more are on hand.
7. Unpaid bills due to the YCPC will be turned over to a collection agency, to be determined by the YCPC, no more than 90 days after the due date of the billing.
8. Monies deposited by the YCPC will remain on account until final disbursement to the payee.
9. Disbursement cycles will be established to ensure that payments are not
paid early or late, but as close to the due date as possible.
10. Inventory and supply levels will be managed to minimize excess while still
conducting business without disruption.
11. Funds drawn from the State will be timed as close to the scheduled
disbursement date as administratively possible.
12. A second signature will be required on all checks.
13. Executive Committee approval is necessary for contractual agreements of $25,000.00 or more and for all unusual or infrequent expenses.
DUTIES
To carry out the procedures necessary to ensure proper cash management, the following duties must be performed:
ED 1. Notification by the bank of unusual items.
MAC 2. Receive unopened bank statements.
MAC 3. Perform bank reconciliation each month and check for the following:
FCM_______A. Disbursements
1. Account for the sequence of check numbers to
ensure accountability of all checks, including those
which are voided.
2. Examine canceled checks for authorized signatures.
3. Examined canceled checks for irregular endorsements.
4. Examine canceled checks for alterations.
ED________ B. Deposits
1. Compare dates, amounts, and form of deposits shown on the bank statement with the cash receipts
journal.
FCM 4. Perform review of cash receipts and disbursements for the following:
A. Payments are made as close to the due date as possible.
B. Inventory and supply levels are at the minimal level necessary to conduct business.
C. Monies due to the YCPC are promptly billed, collected, and deposited.
D. Unpaid bills due to the YCPC are turned over to a designated collection agency no more than 90 days after the
due date.
EC 5. Perform review and approval of contractual agreements $25,000 or more and all unusual or infrequent expenses.
FCM_______6. Review the bank reconciliation, follow-up and resolve any outstanding items more than three months old.
ED 6. Approve bank reconciliation.
POLICY
It is the policy of the Yadkin County Partnership for Children to maintain a petty cash account for small purchases and emergency needs while, through a system of checks and balances, ensuring the accountability of the funds. Compliance with the following procedures and duties is essential to achieving this goal.
PROCEDURES
The following procedures are necessary to ensure proper petty cash standards:
1. Custodial responsibility over petty cash should be clearly defined to one
person.
2. A monthly reconciliation of petty cash will be performed at least quarterly.
4. The petty cash balance, receipted bills and vouchers will equal the original amount of the fund at all times.
DUTIES
To carry out the procedures to ensure proper petty cash standards, the following duties must be performed:
BD 1. Designation of custodial responsibility over petty cash account.
BD 2. Establishment of $250.00 petty cash account.
FCM 3. Petty cash balance and all documentation for disbursements will be secured in a locked box under the direction of the custodian.
AAFCM 4. Reconciliation of petty cash account at least quarterly.
ED 5. Monthly review of petty cash reconciliation report.
CASH RECEIPTS
POLICY
It is the policy of the Yadkin County Partnership for Children, to ensure proper management of cash receipts by developing policies and procedures designed to maximize interest-bearing investments of cash and minimize non-productive cash balances while ensuring proper controls to minimize the possibility of fraud and error. Compliance with the following procedures and duties is essential to achieving this goal.
PROCEDURES
The following procedures are necessary to ensure that proper cash receipt controls are in place:
1. All deposits will be made a minimum of once a week and at any time when funds on hand are $250.00 or more.
2. All deposits will be made in the amount and form in which they were received.
3. Adequate controls will be established to ensure the accountability of all cash receipts.
DUTIES
To carry out the procedures necessary to ensure that proper cash receipt controls are in place, the following duties must be performed:
AA 1. Deposits will be received and immediately logged in the cash receipts log.
AA 2. A cash receipts log will be maintained.
FCM 3. A deposit code sheet will be prepared and signed, establishing the deposit date and coding the deposit according to the chart of accounts.
ED___ 4. The deposit code sheet will be reviewed for accuracy and
compared to the cash receipts log.
FCM 5. Prepare deposit slips from actual checks to be deposited.
ED/PC 6. The deposit will be made by the next business day following
receipt.
FCM 7. The deposit slip will be attached to the code sheet, with all documentation.
MAC 8. The deposit will be recorded in the accounting system and filed chronologically.
COMPETITIVE BIDDING
POLICY
To ensure that quality goods and services are obtained at competitive prices and to comply with legislative requirements.
1. The following competitive bidding practices are recommended for purchases of materials, equipment and services:
a. For amounts equal to or less than $1,500, routine suppliers can be used.
b. For amounts greater than $1,500 to $5,000 or less, three verbal quotes must be obtained. These telephone quotes must be documented with date, name of individual to whom you spoke, description of purchase and amount.
Note: For purposes of evaluating the preceding thresholds, the total amount of the order should be considered; not each individual item being ordered. Also, orders should not be split to reduce the threshold total.
2. Documentation proving compliance will be maintained and filed with the contract or invoice for audit puporses.
3. DSP’s will be required to follow the above procedures for all service contracts using Smart Start funds.
BIDDING AND CONTRACTING
POLICY
It is the policy of the Yadkin County Partnership for Children, to ensure contracts for materials and services of $5,000 or more minimize cost, maximize cost effectiveness, and comply with all legislative mandates while securing the necessary materials and services in an ethical and professional manner. Compliance with the following procedures and duties is essential to achieving this goal.
PROCEDURES
The following procedures are necessary to ensure proper contracting standards:
1. The YCPC Board of Directors will authorize materials or services needing to be contracted over $5,000.
2. Every effort will be made to secure the lowest price available for comparable materials and services without sacrificing quality or cost effectiveness.
3. It will be the responsibility of the executive director to ensure that all contract terms and conditions are met and to monitor and ensure compliance of all contracts.
4. A procurement file for each contract, which includes all correspondence and documentation of the procurement process, will be maintained for a three (3) year period and will be available for public inspection.
5. All service providers will know of and understand their responsibility to report suspected child abuse, neglect, or dependency as defined in G.S.
7A-517.
DUTIES
To carry out the procedures to ensure proper contracting standards, the following duties must be performed:
ED 1. A Request for Proposals, (RFP), will be developed.
ED 2. A RFP mailing list for soliciting responses will be developed and
maintained.
ED 3. The RFP will be distributed to everyone on the mailing list and an advertisement will be placed in a newspaper with regional circulation a minimum of ten days prior to the deadline for receiving proposals.
SUBCOM 4. Proposals will be analyzed to determine compliance with specifications, qualifications, terms and conditions.
SUBCOM 5. The recommendation will be presented to the YCPC Board of Directors for review and approval.
BD 6. Approval to enter into the contract will be obtained.
ED 7. Each procurement file will be maintained for three (3) years and
will be available for public inspection.
PURCHASING
POLICY
It is the policy of the Yadkin County Partnership for Children, to ensure that all materials and services are obtained in such a way as to minimize cost and maximize fund balance while securing the necessary materials and services in an ethical and professional manner. Compliance with the following procedures and duties is essential to achieving this goal.
PROCEDURES
The following procedures are necessary to ensure proper procurement standards:
1. All purchases will be authorized for payment using Purchase Orders and RIPRs.
2. Every effort will be made to secure the lowest price available for comparable materials and services.
3. Competitive purchasing will be observed for all materials and services in
excess of $1,500 and is strongly encouraged for all purchases.
4. Every effort will be made to avoid freight and delivery charges when possible.
5. All materials and supplies will be inspected for condition and counted when received.
6. Employees will be held to the conflict of interest policy.
DUTIES
To carry out the procedures to ensure proper procurement standards, the following duties must be performed:
FCM 1. Custody of pre-numbered Purchase Orders will be designated.
FCM 2. The Purchase Order will be prepared before each purchase. (See attached form). For items greater than $1,500 but less than $5,000, three quotes for the same or comparable item will be obtained prior to submitting for authorization. For purchases of $5,000 or more, policies and procedures detailed under Bidding and Contracting will be followed.
ED 3. Purchase Orders will be approved for coding and approval of
purchase will be noted by signature.
FCM 5. The original copy of the Purchase Order will be on file.
MAC____ 6. Information from the Purchase Order will be entered into the accounting system and filed chronologically by due date, or anticipated due date, in a “Purchase Order“ folder.
GENOFF 7. Goods received will be compared with the packing slip or invoice which accompanied the goods and the invoice will be initialed as verification of receipt. The initialed packing slip or invoice will be attached to the Purchase Order.
ED/PC 8. All discrepancies will be researched and corrected.
CASH DISBURSEMENTS - NONPAYROLL
POLICY
It is the policy of the Yadkin County Partnership for Children, to ensure a system of checks and balances which will allow for the timely and accurate payment of all disbursements while minimizing the possibility of errors and maximizing the earning potential of funds. Compliance with the following procedures and duties is essential to achieving this goal.
PROCEDURES
The following procedures are necessary to ensure proper cash disbursements.
1. Pre-numbered checks will be used for all disbursements.
2. The unused check supply will be adequately controlled and safeguarded.
3. Adequate controls will be established to ensure accountability for all voided checks.
4. Copies of canceled checks will be maintained in a file in numerical order.
5. Adequate controls will be established to ensure no duplication of payments.
6. Payment of items should only be made from an original invoice.
7. Duplicate copies of invoices will be destroyed to prevent duplicate payments.
8. No blank checks will be signed in advance.
9. No check will be made payable to cash. Instead, the check may be made payable to the custodian of the account. (As in the case of checks for petty cash.)
10. Proper approval of all expenditures prior to payment will be performed by an authorized individual.
11. Control over mailing and distribution of checks will be maintained.
12. Supporting documentation will accompany all disbursements.
13. Procurement will be conducted following the Purchasing Policy.
14. All disbursements will be made as close to the due date as possible without incurring late fees whenever possible.
15. No check will be authorized by, payable to and solely signed by the same person. (As in the case of an authorized signer to whom reimbursement is due. A different authorized signer must approve and sign the check.)
DUTIES
To carry out the procedures to ensure proper cash disbursements, the following duties must be performed:
FCM 1. A Recurring Invoice/Payment Request (RIPR) will be used to code all recurring obligations other than those processed as purchase orders.
ED 2. Review purchases to indicate approval of purchase.
ED 3. Invoices paid through funds other than Smart Start must be reviewed to ensure compliance with donor guidelines before the funds can be used.
ED 4. The completed RIPR and accompanying documentation will be
reviewed to ensure availability of funds and to review account
coding.
ED / BDMB 5. The RIPR and accompanying documentation will be signed as
verification of review and approval to prepare check.
MAC_ 6. Disbursements will be entered into the accounting system as
they come due. At the end of each calendar month, the
General Ledger will be analyzed for any accrued expenses.
Accrued expenses should not occur during the year so that
the records are maintained on a cash basis. Accrual entries
will occur during the “close out” process.
MAC_ _ 7. A cash requirements report will be printed and reviewed. Any
cash deficiencies will be addressed.
MAC__
8. Checks will
be prepared according to due date and cash
availability and delivered with documentation to authorized
financial official
FCM 9. Mail check to vendor.
MAC/FCM 10. Stamp PAID on the invoice copy and all accompanying documentation to prevent re-payment.
FCM 11. A vendor file will be established and all checks with documentation will be filed chronologically.
FCM 12. A numerical check file will be maintained.
FCM_ ___13. Voided checks will be retained. The signature space on the voided check will be cut off, VOID will be written across the face of the check in large letters, and the voided check will be filed in numerical order with the canceled checks.
MAC_ ___14. Custodial responsibility over unused check supply will be delegated.
CASH DISBURSEMENTS - PAYROLL
POLICY
It is the policy of the Yadkin County Partnership for Children, to ensure through checks and balances, a system for the timely and accurate payment of salaries to authorized personnel of the YCPC. Compliance with the following procedures and duties is essential to achieving this goal.
PROCEDURES
The following procedures are necessary to ensure proper payroll disbursements:
1. Each employee will have a personnel file which includes: letter of hire, salary information, proof of eligibility to work, authorized working hours, federal and state withholding forms, insurance information, and support for payroll deductions.
2. All paychecks will be supported by time sheets which are reviewed and
approved, as indicated by signature.
3. Schedules for the completion and filing of W-2 forms will be developed.
4. The calculation of net payroll and resulting issuance of checks will be done by a non-related, contracted service.
DUTIES
To carry out the procedures necessary to ensure proper payroll disbursements, the following duties must be performed:
BD 1. Approve personnel positions and salary ranges.
ED 2. Verify references, hire personnel, and set salary and working hours.
ED 3. Prepare personnel files.
ED ___ 4. Review and approve time sheets and leave records, as indicated by signature.
FMC 5. Calculate monthly payroll from authorized salary information and approved time sheets and leave records.
ADP 6. Prepare payroll check which is direct deposited into employee authorized accounts unless otherwise indicated by employee.
MAC 7. Prepare journal entry to record payroll into accounting system.
(Change MAC to FCM)
ADP 8. Calculation and preparation of W-2 forms will be completed by January 24.
FCM 9. Review of W-2 forms and transmittal form using payroll journals by January 27.
FCM 10. Approval of W-2 forms and transmittal form by January 29.
ED/FCM 11. Disbursal of W-2 forms by January 31.
FCM 12. Reconciliation of W-2 forms to payroll journals and registers.
FIXED ASSETS
POLICY
It is the policy of the Yadkin County Partnership for Children , to ensure that all fixed assets and capital outlays are accounted for and have physical safeguards. To ensure adequate controls are in place, compliance with the following procedures and duties is essential to achieving this goal.
PROCEDURES
The following procedures are necessary to ensure proper fixed asset control:
1. Custodial responsibility by location over fixed asset and capital outlay items will be clearly defined.
2. A physical inventory of items will be taken once a year.
3. A policy to address damaged or missing fixed assets will be established.
5. Proper capitalization of fixed assets will be established.
6. A policy to address assets being used off the premises of the YCPC will be established.
7. Designation of items $500 or more as capitalized fixed assets.
8. Designation of items $100 or more as tagged inventory items.
DUTIES
To carry out the procedures to ensure proper fixed assets control, the following duties must be performed:
ED 1. Delegation of responsibility for fixed assets by location.
FCM 2. A log of additions and removals from the fixed assets system will be maintained.
FCM 3. Annual physical inventory of fixed asset and capital outlay items balanced against the fixed asset log, will be conducted.
FCM 4. Pre-numbered tagging of fixed asset items and capital outlay items.
FCM 5. Annual reconciliation of fixed asset systems to control accounts.
ED 6. Annual reconciliation must be reviewed.
ED/FCM 7. Investigation of missing fixed asset items to include invoicing employees for lost or damaged property,
notification of insurance for damaged or stolen property, and notification of police for stolen property.
ED 8. Review of Equipment Sign-Out Sheet and approval of equipment use off the premises
ED/FCM 9. A periodic review will be conducted to determine if there is adequate insurance.
INVENTORY MANAGEMENT
POLICY
It is the policy of the Yadkin County Partnership for Children , to ensure that all inventories are accounted for and have physical safeguards. To ensure adequate controls are in place, compliance with the following procedures and duties is essential to achieving this goal.
PROCEDURES
The following procedures are necessary to ensure proper inventory control:
1. Custodial duty over the inventory items will be clearly defined.
2. Inventory items will be maintained in a central location.
3. Prior to ordering additional items, the current supply of inventory items will be evaluated to determine if the need exists.
4. A physical inventory of items will be taken once a year
DUTIES
To carry out the procedures to ensure proper inventory control, the following duties must be performed:
ED 1. Delegation of responsibility for and location of inventory.
FCM 2. Maintain a log of additions to inventory which reflects current inventory levels at every addition.
FCM 3. Annual physical accounting of inventory balanced against the
inventory log, will be conducted.
FINANCIAL PROGRAMS & GRANTS
POLICY
It is the policy of the Yadkin County Partnership for Children, to ensure that financial programs and grants are identified as separate funding sources and that all related receipts and expenditures are correctly recorded by funding source. Compliance with the following procedures and duties is essential to achieving this goal.
PROCEDURES
The following procedures are necessary to ensure proper standards for financial programs and grants:
1. ensure that accounting procedures properly identify and separate funds by financial source.
2. timely and accurate filing of financial reports with grantors.
3. confirmation to federal agency grant requirements will be developed.
5. confirmation of donations will be established.
Please see attached information on FASB 116 & FASB 117.
DUTIES
To carry out the procedures to ensure proper standards for financial programs and grants, the following duties must be performed:
NCPC 1. A chart of accounts will be developed and will reflect various funding sources.
FCM 2. All receipts and disbursements will be coded according to the chart of accounts.
MAC__ 3. Monthly expenditure and budget reports will be generated for
all funds. Documentation will be attached to all reports.
ED 4. Monthly expenditure and budget reports and accompanying documentation will be reviewed and approved.
EDFCM____5. Financial expenditure reports will be prepared according to grantees’ time schedules.
ED 6. Appropriate review and approval of expenditures and receipts as prescribed by grant agreements and all applicable regulations.
INFORMATION ON
FINANCIAL ACCOUNTING STANDARDS BOARD
STATEMENTS 116 & 117
(FASB 116 & FASB 117)
The Financial Accounting Standards Board has issued two statements, FASB 116 and FASB 117, regarding the way non-profits must record contributions and display information on financial statements. These statements detail, among more in-depth information, the following rules regarding donations of cash.
Unconditional donations, including pledges, are required to be
recorded as revenue at the time they are
made.
Pledges with donor-imposed conditions are required to be
recorded as revenue when the conditions are met.
Pledges are required to be listed on financial statements during the
reporting period in which they were made.
DONATIONS OF MATERIALS, FACILITIES & SERVICES
POLICY
It is the policy of the Yadkin County Partnership for Children, to ensure that donations of materials, facilities and services are properly valued, recorded and safeguarded. Compliance with the following procedures and duties is essential to achieving this goal.
PROCEDURES
The following procedures are necessary to ensure proper standards for donations of materials, facilities and services:
1. receipt of donations.
2. assessing the value of and recording donated materials, facilities and
services
3. donated materials, facilities and services properly safeguarded.
4. inventory and recording of donated materials, facilities and services
*Please see attached information on FASB 116 & FASB 117.
DUTIES
To carry out the procedures to ensure proper standards for donations of materials, facilities and services, the following duties must be performed:
ED/FCM/PC_1. Physical inspection of donated materials and facilities and review.
ED 2. Approval for receipt of donated materials, facilities and services.
ED 3. Responsibility for supervising donated services, to include recording dates, nature, time, and valuation of performed
services, will be assigned.
ED 4. Review and approval of records for donated services.
ED 5. Central file containing all documentation on donations maintained.
ED 6. Responsibility for tracking restrictions based on grantor’s specifications.
INFORMATION ON
FINANCIAL ACCOUNTING STANDARDS BOARD
STATEMENTS 116 & 117
(FASB 116 & FASB 117)
The Financial Accounting Standards Board has issued two statements, FASB 116 and FASB 117, regarding the way non-profits must record contributions and display information on financial statements. These statements detail, among more in-depth information, the following rules regarding donations of materials, facilities and services:
Donated services are required to be recorded if they create or enhance non-financial assets such as buildings.
Donated services are required to be recorded if they require skills that would otherwise have to be purchased.
SALES AND USE TAX PAID
POLICY
Pursuant to G.S. 105-164.14(b), and by virtue of its status as a non-profit organization, the Yadkin County Partnership for Children, is eligible to receive a refund for sales tax paid to the state of North Carolina. All taxes are eligible for refund, with the exception of the following:
a. tax paid on the purchase, lease, or rental of motor vehicles;
b. tax on purchases of electricity, piped natural gas, and local intrastate telephone services and toll telecommunications services;
c. occupancy taxes levied on hotels, motels, and similar businesses and taxes on prepared food and beverage taxes;
c. tax levied on tires and white goods disposal tax; and
e. other states’ sales and use tax.
It is the policy of the Yadkin County Partnership for Children, to file for a refund of Sales and Use Tax paid. Compliance with the following procedures and duties is essential to achieving this goal.
PROCEDURES
The following procedures are necessary in order to claim a refund on the sales and use tax paid:
1. All sales and use tax paid will be documented.
2. Forms for requesting a refund of sales and use tax paid will be completed,
approved and filed.
DUTIES
To carry out the procedures to ensure proper refunds of sales and use taxes paid, the following duties must be performed:
MAC 1. An account for Sales Tax Receivable will be created within the chart of accounts.
FCM 2. Sales tax paid will be split from the cost of the goods prior to payment, and will be reflected as such on the authorization/code sheet.
ED 3. Review the authorization/code sheet, invoice, and check request signing as verification of approval to prepare check.
MAC 4. A spreadsheet will be created with headings for: check number, date of check, cost of goods without tax, tax, total cost of goods plus tax, description of goods, and county in which purchase was made.
FCM 5. For tax paid in the period of January 1 to June 30, a NC Form E-585 will be completed and filed by October 15; for tax paid in the period of July 1 to December 31, a NC Form E-585 will be completed and filed April 15.
FCM__ 6. The NC Form E-585 and supporting documentation will be reviewed, approved by signature, and returned.
FCM 7. The NC Form E-585 and spreadsheet will be mailed to the NC Department of Revenue.
CLOSE OUT
POLICY
It is the policy of the Yadkin County Partnership for Children, to close the current year’s financial books and prepare each account for the next fiscal year through completion of close out procedures which adjust trial balance figures and allow for completion of close out procedures which adjust trial balance figures and allow for completion of final financial reports. Compliance with the following procedures and duties is essential to achieving this goal.
PROCEDURES
The following procedures are necessary to ensure proper close out:
1. Inventories of balances on hand will be conducted.
2. Depreciation adjustment will be made to capital fixed assets account following depreciation policy.
3. Worksheets will be prepared.
4. Adequate footnote disclosures will be prepared at year end.
DUTIES
To carry out the procedures necessary to ensure proper close out, the following duties must be performed:
FCM _____ 1. Journal Entries for close-out prepared.
ED/FCM 2. Documentation for all adjustments and worksheets will be attached.
ED___ 3. Review and approval of worksheets and documentation.
FCM 4. Adjustments made to accrued vacation and all other
adjustments per documentation.
FCM 5. Footnotes prepared.
ED 6. Footnotes reviewed and approved.
(This section
to be reviewed after the MAC site redoes their policies)
TAX COMPLIANCE
POLICY
It is the policy of the Yadkin County Partnership for Children, to ensure that all transactions reportable to the Internal Revenue Service are properly identified, accumulated, and reported. Compliance with the following procedures and duties is essential to achieving this goal.
PROCEDURES
The
following procedures are necessary to ensure proper tax compliance:
1. identify recipients of Form 1099-MISC
2. Information necessary for the completion of Form 1099-MISC will be properly collected and reported.
3. complete and transmitting Form 1096
To carry out the procedures necessary to ensure proper tax compliance, the following duties must be performed:
BD 1. Contracts with individuals and firms providing services will be formally approved. (See Bidding and Contracting)
MAC 2. Contractors will be properly identified and recorded in the accounting system.
PC 3. Files for all contractors will be maintained and monitored.
MAC 4. Form 1099-MISC will be prepared and documentation will be attached for review by January 28.
ED 5. Review and approval of Form 1099-MISC and attached documentation.
FCM 6. Form 1099-MISC will be mailed to contractor by January 31.
FCM 7. Form 1096 will be completed by February 21.
ED 8. Review and approval of Form 1096.
FCM 9. Form 1096 will be mailed by February 28.
FCM______10. Reconciliation of Form 1096 to Form 1099-MISC and to
accounting system.
ENTERTAINMENT POLICY
POLICY
The Yadkin County Partnership for Children , will only incur or reimburse entertainment expenses related to direct business affairs of the Partnership. All entertainment expenses shall be pre-approved by the Executive Director.
Reallocation Policy
Purpose: In order to ensure that funds are expended in an effective, efficient manner the following policy will be implemented. The goal of the Yadkin County Partnership for Children is to expend all the funds available to our county in an efficient manner.
Procedure:
ED/FCM_1. At the end of the first, second and third quarter each project will be reviewed and the rate of expenditure will be noted.
ED____ 2. If a project is not expending in a manner consistent with their project, an explanation for lack of expenditures will be requested.
ED____3. If a project has a reasonable explanation (i.e. large expenditure planned and documentation of research) then they will be followed on a monthly basis.
ED____4. If a project does not plan on expending funds-the information will be forwarded to the Executive Committee to determine final approval of reallocation of funds.
ED____ 5. A letter from the Partnership will be forwarded to the project representative and the funds will be reallocated to another project.
BD____ 6. If a project has funds reallocated it will not affect funding decisions in the next fiscal year.
The Partnership will use bank and local business credit cards in situations where Purchase Order Invoicing is not available. Use of credit cards will be approved by the Executive Director. Adequate receipts and documentation will be maintained for accounting and reporting purposes. Company credit cards may not be used for personal reasons.
Procedures:
(1) Credit cards will be kept in a secure location accessed only by the Fiscal/Contracts Manager or the Executive Director.
(2) The date, purpose and amount of charge will be logged by the Fiscal/Contracts Manager or Executive Director.
(3) Credit cards are for specified purchases and receipts will be used as verification.
(4) Invoice will be paid only with appropriate documentation (receipts).
Signatories of all bank accounts will include the following: the Executive Committee, Executive Director and Program Coordinator.
a. All checks will require two signatures.
b. Checks less than $2,000.00 may be signed by the combination of any two Executive Committee members, an Executive Committee member and Executive Director or Program Coordinator.
c. Checks $2,000.00 and above will require a combination of any two Executive Committee officers, or a combination of an Executive Committee officer and the Executive Director.
d. A check may not be signed by a signator with a conflict of interest as payee or related to the payee.
SS/Dwight/Policies/checksigning