sample policies and procedures manual for nonprofit...

The FMA Institute Developing Nonprofit Leaders

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Fiscal Management Associates, LLC © 2012. All rights reserved. www.fmaonline.net 1

Sample Policies and Procedures Manual For Nonprofit Organizations

Introduction Table of Contents

1. Internal Control Structure

a. Control Environment b. Accounting System c. Control Procedures d. Accounting Cycle

2. Sarbanes-Oxley Act 3. IRS Form 990 4. Fiscal Year and Accounting Calendar 5. Accrual Accounting 6. Board Involvement in Fiscal Oversight 7. Maintenance of this Manual 8. Exceptions

Revenue, Accounts Receivable and Cash Receipts

1. Cash Receipts and Bank Deposits

a. Receipt of Cash and Cash Equivalents b. Deposit Procedures

2. Processing and Recording Receipts

a. Wire Deposits b. Cash Receipts c. Credit Card Receipts d. Interest Income e. In-kind Donations f. Stock Donations

3. Revenue Recognition and Accounts Receivable

a. Pledges/Promises to Give b. Unrestricted Revenue c. Temporarily Restricted Revenue d. Permanently Restricted Revenue e. Revenue from Government Grants and Contracts

4. Contributions

a. Substantiation and Disclosure Requirements

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Purchasing

1. Conflict of Interest Policy 2. Competitive Bidding Requirements 3. Sole Sourced and Preferred Vendors 4. Blanket Purchase Orders 5. Generation and Approval of Purchase Orders 6. Sales Tax Exemption 7. Processing Purchase Orders 8. Receipt of Goods and Services

Accounts Payable and Cash Disbursements

1. Processing Accounts Payable a. Receipt of Invoices b. Three-Way Match c. Check Requests d. Internet Purchases e. A/P Aging f. Blank Checks g. Check and Wire Transfer Processing h. Signatory Authority

2. Travel and Business Expenses

a. Approval of Overnight/Out of Town Travel b. Approval of Local Travel c. Method of Payment d. Travel Expense Reports e. Travel Advance Payments f. Cell Phone Usage

3. Credit Cards

a. Issuance of Credit Cards b. Proper and Improper Use of Cards c. Documentation and Recordkeeping Requirements

4. Petty Cash and Metrocards

a. Processing Petty Cash and Metrocard Disbursements b. Petty Cash Fund Replenishment

5. Independent Contractors and Consultants

a. Consultant and Vendor Contract Approval b. Determination of Consultant Status c. Documenting Consultant Status








Personnel and Payroll

1. Personnel

a. New Hire Requisition b. Personnel Forms

2. Payroll

a. Time Keeping b. Personnel Transaction Forms c. Salary Allocations d. Payroll Processing e. Reconciliation of Payroll Accounts f. Recording Accruals g. Separations

Grants and Contracts

1. Pre-RFP and Contract Formation 2. Grants and Contract Management 3. Allowable Expenses

Budgeting and Financial Reporting

1. Chart of Accounts 2. Budgeting 3. Monthly Close Process 4. Dissemination of Financial Information

Fixed Assets

1. Capital Assets

a. Identification b. Tracking and Inventory c. Capitalization Requirements

2. Depreciation a. Basis for Cost b. Determination of Useful Life c. Depreciation Method

3. Disposal of Capital Assets

Long-Term Liabilities and Investments

1. Assumption and Authorization of Long-Term Debt 2. Investments 3. Insurance








Information and Technology

1. Security and User Access 2. Disaster Recovery

Governance

1. Roles and Responsibilities of Board of Directors (Finance & Audit Committees)

Whistleblower Policy

Conflict of Interest Policy

Document Retention Policy








Appendices

Forms

Processing Cash Receipts Daily Check Log Deposit Slip

Processing Purchases Purchase Request Form Competitive Bidding Form Preferred Vendor List Purchase Requisition Form Purchase Order

Accounts Payable Check Request Form Cash Requirement Report Travel Request Form Car Service Voucher Travel Reimbursement Form Expense Reimbursement Form Credit Card Account Purchase Approval Form Cardholder Agreement

Metrocards & Petty Cash Metrocard Log Petty Cash Log Petty Cash Replenishment Form Petty Cash Voucher

Personnel & Payroll New Hire Requisition Form Personnel Transaction Form Direct Deposit Form Employee Timesheet Payroll Deduction Form Time Off Request Form

Fixed Assets In-Kind Capital Assets Form Asset Disposal Form




sample policies and procedures manual for nonprofit...

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