Table of Contents for Model Policies and Procedures for Not-for-Profit Organizations

List of Forms

xvii

About the Author

xxi

Preface

xxiii

Section 1 Internal Financial Statement Formats

(6)

Statement of Financial Position

(2)

Consolidated Statement of Unrestricted Activities

(1)

Statement of Unrestricted Activities by Function

(1)

Statement of Temporarily Restricted Activities

(1)

Statement of Permanently Restricted Activities

(1)

Statement of Changes in Net Assets

(1)

Section 2 Chart of Accounts

(16)

Chart of Accounts Issuance Form

(1)

Assets

(3)

Clearing Accounts

(1)

Liabilities

(1)

Net Assets

(1)

Revenues

(3)

Expenses

(4)

Functions

(1)

Section 3 The Policies and Procedures Manual

(2)

Part 1 Accounting and Financial Policies

(88)

Accounting and Financial Interns

(1)

Accounting Computer File Back-Up Procedure

(2)

Accounting Information Releases

(1)

Accounting Method

(1)

Accounts Payable Accruals

(1)

Accounts Receivable Write-Off Procedures and Authority (Bad Debts Procedures)

(2)

Amortization

(1)

Annual Leave Accrual

(1)

Board-Designated Funds

(1)

Budget

(1)

Budget and Finance Committee

(1)

Cancellation of Purchase Order

(2)

Capitalization Cutoff Points

(1)

Chart of Accounts

(2)

Check Imprinter Machine

(1)

Check Preparation and Mailing

(1)

Clearing Accounts

(1)

Collection Procedures

(2)

Contributions

(1)

CPA Firms: Audited Financial Statements

(3)

CPA Firms: The Engagement Letter

(1)

CPA Firms: The Management Letter

(3)

CPA Firms: Selection of Firm

(1)

CPA Firms: Use of Other Firms

(1)

Credit Card Receipts

(1)

Date and Time Received Stamp

(1)

Deferred Revenues

(1)

Deposit of Receipts

(1)

Depreciation

(1)

Discounts Lost

(1)

Discounts on Accounts Receivable

(1)

Donated Property

(2)

Endowment Funds

(1)

Expense Reimbursements---Chief Staff Executive

(1)

Finance Department Employee Orientation

(1)

Financial Statement Preparation and Distribution

(1)

Grants and Contracts

(1)

Holding Funds for Other Organizations

(1)

Inventory: Give-Aways

(2)

Inventory: Receiving

(1)

Inventory Valuations

(1)

Inventory: Write-Off

(2)

Investment Policy

(2)

IRS Forms: Form 990-T

(1)

IRS Forms: Form 1099

(2)

Journal Entries

(2)

Leasehold Improvements

(1)

Leases

(1)

Loans/Lines of Credit

(1)

Lobbying Expenditures

(1)

Long-Term Debt

(1)

Monthly Budget Meetings

(1)

Nondeductibility of Dues

(1)

Nondistribution of Earnings

(1)

Nonsufficient Funds Checks

(2)

Occupancy Expenses

(1)

Optional Proxy Tax

(1)

Overhead Allocation

(1)

PAID Stamp

(1)

Payment Terms

(2)

Permanently Restricted Net Assets

(1)

Permanent Travel Advances

(2)

Petty Cash Fund Disbursements

(3)

Photocopying Expenses

(2)

Postage Log

(2)

Prepaid Expenses

(1)

Purchase Orders

(3)

Quid Pro Quo Contributions

(1)

Records Retention

(6)

Refunds

(1)

Reimbursement of Board/Committee Expenses

(1)

Rent

(1)

Repairs and Improvements

(1)

Reserves

(1)

Return Policy

(1)

Salaries and Fringe Benefits Accruals

(1)

Sales Tax Collection

(1)

Sales Tax Exemption Certificate

(1)

Serial Numbers (Fixed Assets)

(1)

Spousal Travel

(1)

Telephone Expenses

(3)

Temporarily Restricted Net Assets

100

(1)

Travel Advances

100

(2)

Travel Expenses

102

(5)

Unrelated Business Income Tax (UBIT)

107

(1)

Unrestricted Net Assets

107

(1)

Voided Checks

108

(2)

Write-Off of Old Checks

110

(3)

Part 2 Office Administration Policies

113

(114)

Absenteeism and Tardiness

113

(1)

Affinity Programs

113

(1)

Age Discrimination in Employee Act (ADEA)

114

(1)

Alcohol and Controlled Substances

114

(1)

Amendments to Policies and Procedures

115

(1)

Americans with Disabilities Act

115

(1)

Anniversary Date

116

(1)

Annual Leave Payments

116

(1)

Antitrust

116

(1)

Antivirus

117

(1)

Aptitude/Ability Tests

117

(1)

At-Will Employment

117

(1)

Background Checks-Prospective Employees

118

(2)

Ballots

120

(1)

Bartering Prohibited

120

(1)

Bereavement (Funeral) Leave

120

(1)

Bid Requirements

121

(2)

Binding Arbitration

123

(1)

Board of Director Fiduciary Responsibilities

124

(2)

Bulletin Boards

126

(1)

Business Cards

126

(1)

By-Laws

126

(1)

Certificate of Authority

126

(2)

Committee Meeting Attendance

128

(1)

Committee Meeting Attendance by Members

128

(1)

Computer Passwords

128

(1)

Conditions of Employment Agreement

129

(3)

Confidentiality of Information

132

(3)

Consolidated Omnibus Budget Reconciliation Act (COBRA)

135

(1)

Consumer Protection Act

135

(1)

Contract Signing Authority

135

(1)

Correspondence

136

(2)

Credit Rating Release

138

(1)

Data Processing Manual

138

(1)

Disciplinary Action

138

(1)

Discrimination

139

(1)

Diversity

139

(1)

Document Shredding

140

(1)

Document Sign-Out Form

140

(2)

Dress Code

142

(1)

E-Mail and Internet

142

(3)

Emergency Contact Form

145

(2)

Employee Retirement Income Security Act (ERISA)

147

(1)

Equal Opportunity Employer

147

(1)

Equal Pay Act

147

(1)

Evaluations (Staff)

148

(1)

Executive Sessions

148

(1)

Exit Interview

148

(1)

Facilities

149

(1)

Fair Labor Standards Act (FLSA)

149

(2)

Family and Medical Leave Act (FMLA)

151

(1)

Fax Machine

151

(1)

Federal Identification Number

152

(1)

Fire Protection

152

(1)

Form l-9/Immigration Reform and Control Act (IRCA)

152

(1)

Forms Manual/Retired Forms Manual

153

(1)

Form W-4

154

(1)

Fringe Benefits

154

(1)

Fringe Benefits Day

155

(1)

Garnishments

155

(1)

Grievances and Complaints

155

(1)

Hold Harmless Agreements

156

(2)

Holidays

158

(1)

Hours of Operation

158

(1)

Inclement Weather

158

(1)

Independent Contractor Files

159

(1)

Independent Contractors

159

(4)

Injuries/Worker's Compensation

163

(2)

Job Descriptions

165

(1)

Jury Duty

165

(1)

Key Employee Insurance

165

(1)

Key Employees

166

(2)

Leave without Pay

168

(1)

Leaving the Office

168

(1)

Legal Audit

168

(1)

Legal Counsel Attendance at Board Meetings

169

(1)

Legal Protection for Board and Staff

170

(2)

Libel/Slander

172

(1)

Lines of Credit

172

(2)

Loans-Employees

174

(1)

Lobbying Activities/Omnibus Budget Reconciliation Act (OBRA)

174

(1)

Lobbying Disclosure Act (LDA)

174

(1)

Logo

175

(1)

Mailing List Sales

175

(1)

Management Day

176

(2)

Mandatory Vacations/Leave

178

(1)

Maternity Leave

178

(1)

Military Obligations

178

(1)

Minutes of Board and Committees

179

(1)

Music

179

(1)

Music Licensing

179

(1)

Nepotism

180

(1)

Nicknames

180

(1)

Noncompete Agreements

180

(3)

Occupational Safety and Health Act (OSHA)

183

(1)

Office Decor

183

(1)

Office Equipment

183

(2)

Office Supplies

185

(1)

Open Board of Directors Meetings (Sunshine Laws)

185

(1)

Outside Employment

185

(1)

Ownership of Records

186

(1)

Paternity Leave

186

(1)

Permissions/Waivers

186

(2)

Personal Leave

188

(1)

Personnel Records

188

(1)

Plagiarism

188

(2)

Policy Amendment, Deletion, or Additions

190

(2)

Political Action Committees (PACs)

192

(1)

Political Education Funds

192

(1)

Postal Permit

193

(1)

Press Releases/Media Contacts

193

(2)

Protection of Member/Contributor/Customer/Employee Confidential Information

195

(1)

Quarterly Staff Meetings

195

(1)

Reasonable Accommodation

196

(1)

Reference Letters

196

(1)

References (Former and Current Employees)

196

(1)

Registered Agent

197

(1)

Reinstatement of Benefits

197

(1)

Remote Access to Computer Network

197

(2)

Resignation

199

(1)

Rest Periods

199

(1)

Safe and Safe Combination

199

(3)

Safe Deposit Box

202

(3)

Safety Committee

205

(2)

Sexual Harassment

207

(1)

Smoking

207

(1)

Software Licenses (Anti-Piracy)

207

(1)

Staff Conduct

208

(1)

Staff Contact by Board Members

208

(1)

Staff Training

208

(1)

Statutory (Legally Mandated) Employee Benefits

209

(1)

Suggestions

209

(2)

Taking Work Home

211

(2)

Tellers' Committee

213

(1)

Temporary Employment Agencies

213

(2)

Time Off to Vote

215

(1)

Time Sheets

215

(2)

Trademark

217

(1)

Unemployment Compensation

217

(1)

Uniformed Services Employment and Reemployment Rights Act (USERRA)

217

(1)

Use of Premises

218

(3)

Utilization of Office Equipment

221

(2)

Vacancies

223

(1)

Voice Mail

223

(1)

Worker's Compensation Insurance

223

(1)

Weapons

224

(1)

Wrongful Dismissal (Avoidance)

224

(1)

Year-End Manual

224

(3)

Part 3 Internal Control and Risk Reduction Policies

227

(48)

Acronyms

227

(2)

Approved Vendor Listing

229

(2)

Automobile Insurance

231

(1)

Bank Account Reconciliations

231

(1)

Bank Statement Mailings

232

(1)

Bonding Eligibility

233

(1)

Business Interruption Insurance

233

(1)

Cash Register Issues

233

(1)

Cash Transactions

234

(1)

Certificate of Insurance

235

(1)

Changeover Audit

235

(1)

Check 21 Issues

235

(1)

Check Disbursements

236

(3)

Check and Wire Transfer Signatures

239

(1)

Check Signers

239

(1)

Check Stock

240

(1)

Check Supply

241

(1)

Control Over Checks and Cash

241

(1)

Convention Cancellation Insurance

242

(1)

Credit Cards

242

(4)

Credit Card Statements

246

(1)

Deposit Security and Restrictive Endorsements

246

(1)

Direct Deposit

247

(1)

Documenting a Fraud Action Plan

248

(3)

Employee Credit Cards (Elimination)

251

(1)

Errors and Omissions Insurance

251

(1)

Fidelity Bond (Employee Dishonesty Insurance)

252

(1)

General Liability Insurance

252

(1)

Ghost Employees

252

(2)

Ghost Vendors

254

(2)

Gifts

256

(3)

Insurance

259

(1)

Insurance Committees

259

(1)

Inventory Issues

260

(1)

Kiting

261

(1)

Lockbox

262

(2)

Malpractice Insurance

264

(1)

Manual Checks

264

(1)

Officers and Directors Liability insurance

264

(1)

Payroll Processing

265

(1)

Payroll Tax Issues

265

(1)

Positive Pay

266

(1)

Professional Liability Insurance

266

(1)

Property Insurance

267

(1)

Segregation of Duties

267

(1)

Statement of Auditing Standard No. 99 (SAS99)

267

(1)

Two Signature Checks

268

(1)

Umbrella Insurance

268

(1)

Unannounced Bank Statement Reconciliation

268

(1)

Window of Opportunity for Embezzlement

269

(4)

Wire Transfers

273

(2)

Part 4 Disclosure of Information Policies

275

(8)

Disclosure of Information

275

(4)

Disclosure of Records, General Public, Requests Made in Person

279

(1)

Disclosure of Records, General Public, Requests Made in Writing

279

(1)

Disclosure of Records, Members or Contributors, Requests Made in Writing

280

(1)

Disclosure of Records, Members or Contributors, Requests Made in Person

280

(1)

Board of Directors' Examination of Records

280

(1)

Form 990-T

281

(2)

Part 5 The Sarbanes-Oxley Act of 2002

283

(10)

The Sarbanes-Oxley Act of 2002

283

(1)

Code of Ethics for Financial Management

284

(2)

Rotation of the Independent CPA Firm Partner

286

(1)

Whistle-Blower Protection

286

(1)

Internal Audit Committee

287

(1)

Certification of Financial Statements

288

(2)

Conflict of Interest Form

290

(2)

Summary

292

(1)

Part 6 State Issues

293

(4)

State Issues

293

(1)

Access to Accounting Records

293

(1)

Committee Meeting Attendance

293

(1)

Disclosure of Forms Filed with State

294

(1)

Executive Sessions

294

(1)

Loans

294

(1)

Minutes

294

(1)

Open Meetings

294

(1)

Posting Meetings

294

(1)

Registration as Fundraiser

295

(1)

Registered Agent

295

(1)

Personnel Files

295

(2)

Glossary of Accounting and Financial Terminology

297

(6)

Index

303