ARIZONA FIRE DISTRICT ASSOCIATION FINANCIAL PROCEDURES POLICY

Transcription

1 FINANCIAL PROCEDURES POLICY 1. PURPOSE The purpse f these Financial Prcedures is t prvide cnsistent applicatin f cnduct and prper internal cntrls t safeguard the assets f the Arizna Fire District Assciatin (AFDA) while perfrming the duties and functins, as described in the AFDA Bylaws. T this end, all funds received and disbursed in the name f the Assciatin are managed in such a way that the tax- exempt status f the Assciatin is nt endangered and that AFDA funds are prtected. 2. MANAGEMENT AND CONTROL a. Fiscal Perid: The fiscal year f AFDA shall begin n the first day f January and end n the last day f December each year (AFDA Bylaws Article X Sectin 10.1). b. Budget: With recmmendatins frm the Treasurer, the Bard f Directrs shall adpt an annual budget cvering all activities f AFDA (AFDA Bylaws Article X Sectin 10.2) including all membership fee amunts (AFDA Bylaws Article III Sectin 3.1). c. Spnsrship Funding: The Assciatin may, at its discretin, seek and/r accept spnsrship funding frm crpratins, fundatins, individuals r agencies fr specific purpses r fr general supprt f AFDA, s lng as cnsistent with statutry and regulatry authrity f the Assciatin. d. Reimbursement fr AFDA Business: Individual Bard members and Sectin Directrs, Cmmittee Members, and individuals wrking n the Bard Members behalf, may receive reimbursement fr reasnable and actual expenses incurred during the perfrmance f their duties. Expenditures shall be pre-apprved, t the extent pssible, by the Treasurer. Dcumentatin, including prf f expenditure, shall be submitted t the Treasurer fr review and reimbursement. e. Audits and Reviews f AFDA Financial Recrds: AFDA shall have its financial statements audited annually by an accunting firm, upn prir apprval by the Bard f Directrs. The results f the audit shall be prvided t the AFDA Bard f Directrs within 180 days frm the clse f the fiscal year. f. Fidelity Bnds and Criminal Backgrund Checks: The Treasurer, the COMPANY (as defined herein) and any ther Assciatin member wh has signatry authrity fr the depsit, disbursement, r handling f Assciatin funds; daily accunting and r recnciling f Assciatin funds; shall underg a criminal backgrund check prir t assuming the afrementined duties. A fidelity bnd in an amunt established by the Bard may be required fr any persn r firm with the afrementined duties. The Assciatin may prvide fr the cst f the fidelity bnd at the discretin f the Bard. AFDA Financial Prcedures Page 1 f 6

2 3. RESPONSIBILITIES OF THE AFDA TREASURER The Treasurer is respnsible fr the financial matters f the Assciatin as set frth in the AFDA Bylaws Article VI Sectin 6.4. a. It shall be the duty f the Treasurer t cllect all mnies due the Assciatin frm all surces and shall have custdy f all the funds f the Assciatin. All mnies in his/her pssessin belnging t the Assciatin shall be depsited under the name f the Assciatin in a bank r financial institutin apprved by the Bard f Directrs. He/she shall keep a true and accurate recrd f all mnies received and disbursed and shall expend n funds except upn prper authrizatin. b. N fficer r member shall incur any expenses in the name f the Assciatin withut the authrity f the Bard f Directrs, except that the Treasurer may incur, and be reimbursed fr, the necessary expenses f his/her ffice. c. He/she shall clse his/her annual reprt n the last day f the fiscal year and shall submit the same at the first bard meeting thereafter. At the expiratin f his/her term f ffice, he/she shall deliver t his/her successr all mnies, bks and dcuments with all vuchers and ther prperty in his/her charge, belnging t r held in trust fr AFDA. d. The Treasurer f AFDA shall cause an audit t be cnducted by an utside auditr hired by the Bard f Directrs. e. Certain functins f the Treasurer may be prvided thrugh a private prvider (defined herein as the COMPANY ) subject t apprval by the Bard. The Treasurer shall mnitr services prvided thrugh a private prvider as directed by the President. 4. FINANCIAL RESPONSIBILITIES OF THE AFDA EXECUTIVE DIRECTOR a. The Executive Directr shall assist the Treasurer with verseeing the financial peratins and recrds f the Assciatin and the financial services perfrmed by any private prvider(s) retained by the Assciatin t manage its financial and accunting requirements (AFDA Bylaws Article VII Sectin 7.3). b. The Executive Directr shall have versight fr the business peratins f the Assciatin as specified by cntract. 5. FINANCIAL RESPONSIBILITIES OF EXTERNAL ACCOUNTING OR ASSOCIATION MANAGEMENT COMPANY (COMPANY) Relating t the financial practices f AFDA, the COMPANY respnsibilities include: AFDA Financial Prcedures Page 2 f 6

3 a. Overseeing the daily accunts f AFDA including receiving f bills and receipts f the Assciatin, making timely depsits f funds, and recrding and preparing expenses fr review and/r payment. b. Preparing statements f the financial affairs f the Assciatin fr presentatin at Bard f Directrs and general membership meetings in a manner as directed by the Treasurer and Executive Directr f AFDA. c. Oversight f the Budget including the reprting f incme and expenses. d. Management f financial recrds as fllws: The Treasurer and Executive Directr will apprve a list f accunts, which reflect the line items listed in the Bard f Directrs apprved budget. COMPANY Staff will maintain all bks, recrds, and accunts f the Assciatin. All accunts f the Assciatin shall be in the Assciatin's name. All perating accunts shall be in institutins insured by the FDIC. Investments may be placed in nn-fdic-insured accunts with the prir apprval f the Bard f Directrs. Cpies f accunt statements will be mailed directly t the COMPANY ffice. Maintain the financial recrds f the Assciatin such that they may be reviewed by the Treasurer and/r Executive Bard f the Assciatin at any time during nrmal business hurs, and within tw (2) wrking days ntice by any member f the Bard f Directrs. The COMPANY maintains physical security f AFDA recrds t ensure that nly authrized emplyees have physical r indirect access t AFDA recrds and/r prperty (i.e. blank checks, etc). Financial dcuments will be retained n a schedule determined by the Bard as set frth in the AFDA Dcument Retentin Plicy. The Treasurer and the Bard may direct the COMPANY t destry accunting and financial dcuments in cmpliance with the AFDA Dcument Retentin Plicy. e. Financial reprts will be prvided as fllws: The COMPANY will create and reprt n a mnthly basis all financial activity f the Assciatin. These financial reprts shall be prvided in the frm f a Treasurer s Reprt at each f the regularly scheduled mnthly Bard f Directrs meetings. These reprts will summarize all expenditures and receipts fr the perid cvered and cmpare them t the apprved budget. Bank accunt activity (depsit and disbursement activity reprt) will be presented with the mnthly financial reprts during the next regularly scheduled Bard f Directrs meeting. AFDA Financial Prcedures Page 3 f 6

4 f. General requirements fr maintenance and management f AFDA Accunts: All incme f the AFDA shall be depsited int and all expenses shall be paid by checks drawn against the fllwing accunts: a. The general perating accunt, which may r may nt be interest bearing accunts. b. Savings/Investment accunt, which shall be an interest bearing accunt. c. Investment accunts as recmmended and apprved by the Bard f Directrs. g. Recnciliatin f AFDA accunts: Recnciliatin f bank statements will be cmpleted within three (3) wrking days f receipt by the COMPANY. The AFDA Treasurer and Executive Directr will be immediately ntified f any discrepancies determined when recnciling AFDA accunts. h. Taxes and ther Gvernmental Reprts: The COMPANY is respnsible fr prviding the apprpriate infrmatin and verseeing the annual tax reprting requirements f AFDA. A Bard f Directrs apprved accunting firm will prepare tax frms and ther necessary gvernmental reprts. All individuals prviding a service, which is cmpensated by AFDA abve the IRS threshld, shall prvide a W-9 cntaining name, address, and scial security number r EIN t the COMPANY fr filing required IRS frms. (i.e. 1099). i. Funds Received at COMPANY Offices: Opening the Mail and Cllecting Financial Receipts: A COMPANY emplyee shall pen and date stamp all mail, stamp all checks fr depsit, and disseminate all dcuments apprpriately. All funds and payments received will be frwarded t a COMPANY emplyee designated t prcess cash receipts. Cash Receipts: A COMPANY emplyee shall recrd any funds (cash, checks, credit card payments, etc.) received and issue a sales receipt which will indicate the payee name, date received, amunt and purpse f payment. Sales receipts frm the Assciatin's accunting system will be used t maintain a recrd f funds received. Once recrded all funds will be secured in a prtected lcatin until such time as a depsit can be cmpleted by an emplyee designated t prcess such depsits. AFDA Financial Prcedures Page 4 f 6

5 Depsits: A COMPANY emplyee shall cmplete a depsit slip and prvide the funds and the assciated receipts, cmbined with all supprting dcumentatin t the designated COMPANY emplyee fr depsit int the Assciatin's accunt(s). All depsits will be accmpanied by a detailed allcatin f the depsited funds t allw cst/incme accunting. The depsit dcumentatin will be reviewed and authrized by the Treasurer and Executive Directr. Unless special arrangements are made with the Assciatin Treasurer and Executive Directr, all receipts will be depsited weekly, at a minimum, after being received by the COMPANY. j. Funds Received at AFDA Events: Any funds received shall be issued a written receipt, which will indicate the payee name, date received, amunt and purpse f payment. Cash Receipts shuld be prepared in triplicate: Original prvided t payee, Cpy 2 attached t payment fr prper recrding, Cpy 3 remains in receipt bk fr recnciliatin and tracking. All funds received shall be depsited int an Assciatin accunt as sn as pssible after being received by the COMPANY. k. Financial Disbursements: Disbursements shall be paid nly with dcumentatin supprting the expense. Such dcumentatin must include a detailed explanatin f the expense including invices and ther written billing infrmatin. The COMPANY, under the supervisin f the Treasurer and Executive Directr, shall prcess and handle the payment f all expenses f the Assciatin. Expenses shall be paid by check frm the Assciatin's perating accunt. l. Signatures Required: The COMPANY shall prcess checks fr the payment f expenses. All checks must have tw Executive Bard member signatures. The recipient f the check shall nt sign checks. All tax filings and gvernmental reprts must be signed by a designated Executive Bard member. The Executive Directr and Treasurer must review all bank statements n a mnthly basis and sign each statement as verificatin f review. m. Segregatin f Duties: The COMPANY shall maintain financial practices that are distributed amng multiple emplyees t help ensure prtectin frm fraud and errr. AFDA Financial Prcedures Page 5 f 6

6 The COMPANY shall ensure that this segregatin f financial duties is maintained at all times. The COMPANY emplyee designated t prcess mail will nt be the same emplyee designated t prcess cash receipts. The COMPANY emplyee designated t prcess cash receipts will nt be the same emplyee designated t prcess depsits. ADOPTED by Actin f the AFDA Bard: AFDA Financial Prcedures Page 6 f 6