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NORTHEAST FLORIDA HEALTHY START COALITION, INC.

Financial Policies & Procedures

I. Introduction

The Northeast Florida Healthy Start Coalition, Inc. is a private, non-profit 501(c)(3) corporation located in Jacksonville, Florida. The primary mission of the organization is to undertake activities to improve the health of mothers and babies in Baker, Clay, Duval, Nassau and St. Johns Counties. The organization is funded by the state of Florida to establish and maintain a community-based prenatal and infant health care coalition that is comprised of persons representing the public, private sector, state and local government, providers, community alliances and maternal and child health organizations. It is charged with identifying the needs of its service area, devising and implementing a service plan to meet the identified needs pursuant to Florida Statutes.

The purpose of the Coalition’s accounting and financial policies and procedures is to meet the requirements of federal, state, and local laws and regulations, and to provide timely and accurate information for management decisions. The Coalition follows Generally Accepted Accounting Principles (GAAP) for nonprofit organizations.

II. Organizational Structure

The Role of the Board of Directors and Coalition Membership

1. The corporation is governed by a Board of Directors, all of whom are citizen volunteers. It also has a volunteer Membership representative of the five county area. The Board of Directors and Membership perform any and all duties assigned to them collectively or individually by statute, by the articles of incorporation and the bylaws. The Board and Coalition Membership annually approve the corporation budget and enter into contracts or agreements with other organizations and agencies as may be deemed necessary to carry out the functions and purposes of the organization.

2. The Board and Membership also designate by resolution such officer or officers of the Board or its representatives to sign and countersign all checks, drafts, bills of exchange, notes or other obligations or orders for the payment of money.

3. The Chair of the Board acts as the chief executive officer of the corporation and is authorized to make and execute contracts in the ordinary course of business of the corporation, to execute other legal instruments authorized by the Board, except as otherwise expressly provided by law, by the article of incorporation, or bylaws.

4. The Treasurer of the Board is the chief financial officer of the corporation and is responsible for: a) keeping or causing to be kept and maintained, adequate and correct accounts of the corporation’s properties and business transactions, including accounts of its assets, liabilities, receipts, disbursements, surpluses and deficits; b) assuring access at all reasonable times to any director or member of the general public upon request the books of account and financial records which the requestor has a right, by law, to access; c) render to the chairman and directors whenever he or they request it, an accounting of any or all of the transactions of the corporation and of the financial condition of the corporation; d) prepare or cause to be prepared, an audit and certification of the financial statement to be included in the annual report to the Board. He/she shall present at the annual meeting of the Board a report of the financial status of the corporation by written copy attached to the minutes of such annual meeting.

5. The Finance Committee has the responsibility of overseeing and approving the overall financial management of the corporation. The Committee shall review and approve the overall annual budget and monthly financial reports, and oversee and approve policies regarding staff salaries and benefits.

The Role of the Executive Director and Staff

1. The Board of Directors employs an Executive Director to manage the corporation and authorizes that person to employ other such staff for positions that have been authorized by the Board of Directors and membership to realize the objectives and purposes of the corporation. The Executive Director carries out the purposes of the Corporation within the framework of the articles of incorporation, the bylaws, the established policies and procedures of the Corporation and the general and specific assignments given to him/her by the Board.

2. The functions of the executive Director include, but are not limited to: selection, employment and supervision of other employees as authorized by the Board and the determination as to whether applicants for employment meet the required standards set forth in the Corporation’s personnel policies. The Executive Director supervises the agency’s staff and is responsible for the enforcement of the financial management policies and internal control procedures as described in this document.

3. Responsibility for implementation and compliance with the corporation’s financial procedures is shared by the Fiscal Manager (employed directly or through contract), the Associate Executive Director and Executive Director.

III. General Accounting

1. The Coalition will maintain bank accounts as approved by the Finance Committee. The Coalition may also establish and maintain a line of credit as approved by the Finance Committee and Board of Directors.

2. The Coalition may maintain credit cards and overall credit limits as approved by the Finance Committee and Board of Directors which are assigned to management staff for business expenses.

3. The Chair, Treasurer, Executive Director and Associate Executive Director are authorized by the Board of Directors to sign checks, transfer funds between accounts and draw upon the line of credit.

4. The Fiscal Manager is responsible for the day to day operations of the accounting function. The accounting principles and methods utilized by the Coalition in developing its financial statements are based on an accrual basis of accounting.

5. The Coalition maintains on file a detailed chart of accounts showing all revenue, expenses, assets, liabilities and equity accounts currently in use. All entries and/or journal entries on the Coalition’s accounts are supported by appropriate documentation as required by GAAP. The Coalition maintains original supporting account documents in its corporate offices.

6. Trial balances of the general ledger and subsidiary ledgers are prepared and reconciled monthly by the Executive Director or the Fiscal Manager. The Treasurer and/or the Finance Committee of the Board may review these reconciliations at their discretion.

7. Financial statements are prepared monthly by the Fiscal Manager. The Executive Director, the Finance Committee and the Board of Directors review and accept for audit these financial statements.

8. An annual operating budget is prepared by the Coalition with input from all functional areas within the organization. The final budget is presented to the Finance Committee and Membership for approval at its June meeting.

9. The Executive Director authorizes asset write-offs and other significant account adjustments, after consultation with the Treasurer and/or Finance Committee of the Board of Directors.

10. A CPA certified in the State of Florida will conduct an audit of the Coalition operations each fiscal year. The results of this audit are to be provided to the Coalition Membership and those agencies as identified in Coalition contracts.

IV. Cash Receipts and Disbursements

Cash Receipts

1. All mail is retrieved and opened during each business day by the office Administrative Assistant or other assigned personnel.

2. Each month, the Executive Director or the Associate Executive Director will perform an administrative review of all bank reconciliations, deposit lists and deposit slips.

3. All checks and any cash received will be logged by the Administrative Assistant into a spreadsheet file called Cash Receipts Log, or something similar. At the end of each month the Administrative Assistant will email this file to the Fiscal Manager.

4. The Administrative Assistant will make a copy of each check and stub before detaching them.

5. The Administrative Assistant will scan all checks received into the check scanner for automatic deposit into the appropriate bank account.

6. Upon receipt of confirmation of the deposit, the Administrative Assistant will mark the checks “Deposited” along with the date, on the front of the check, preferably with a red ink pen.

7. The Administrative Assistant will give the scanned checks, the check and stub copies, the confirmation receipts and any other documentation that came with the checks to the Fiscal Manager.

8. All state and federal funds are normally direct (electronically) deposited into the Coalition general checking account.

9. In the event the check scanner is not working for an extended period of time, the Administrative Assistant will notify the Fiscal Manager, fill out a deposit slip, make a copy of it and the checks and take the checks to the bank for deposit. The Administrative Assistant will then give these copies to the Fiscal Manager along with any supporting documentation that came with the checks.

10. Any small amounts of cash that are received will be logged into the Cash Receipts Log and given to the Fiscal Manager. Upon accumulation of a sufficient amount of cash, as determined by the Fiscal Manager, the Administrative Assistant will fill out a deposit slip, make a copy for the Fiscal Manager and take the cash to the bank for deposit.

Cash Disbursements

1. The Executive Director has the overall responsibility for all accounts payable and all disbursements at the Coalition are made by check. All checks on the Coalition bank accounts are pre-numbered and are continually monitored to ensure that no sequential number is missing. Voided or spoiled checks are marked as such and are retained until the next independent audit. Unissued blank checks are safeguarded in a locked file.

2. The Executive Director, Associate Executive Director, and designated members of the Board of Directors are the only persons authorized to sign checks on the Coalition’s bank accounts. All Coalition checks and withdrawals require two signatures from the above-authorized signers. Coalition checks are only drawn to the order of specific payees and not to “Cash” or “Bearer.”

3. All disbursements will require proper written documentation and authorization prior to a check being generated. Program managers approve disbursements for their programs with final approval by the Associate Executive Director and/or Executive Director required.

4. Allocation of expenditures is based on individual program budgets and requirements. General expenditures not attributable to specific programs will be allocated based on historical usage patterns as determined by usage studies.

5. After the checks are approved and issued, the individual supporting documentation will be marked PAID with the check number and date.

6. All checks will be dispensed to the payees as soon as possible in the normal course of business.

Cash Balances and General Matters

1. Authorization is required by the Board of Directors of the Coalition for opening and maintaining any bank account. Such authorization is documented in appropriate minutes of the Board.

2. All bank statements for the Coalition are reconciled monthly in the accounting system. All bank statements are received by the Executive Director or Associate Executive Director, who opens and reviews each statement.

3. Monthly bank reconciliations will include examination of: signatures; endorsements; check number sequencing; deposits; bank charges; charge backs; and review of un-posted items from General Ledger to statement.

4. Any bank reconciliation differences will be brought to the attention of the Executive Director and / or the Associate Executive Director.

5. The Coalition will maintain interest and non-interest bearing accounts as required by contract or sound business practice. The Coalition will adhere to Generally Accepted Accounting Principles and all specific federal and state agency regulations as they relate to Coalition operations.

V. Purchasing, Expenses and Accounts Payable

1. All purchases of goods and services will be recorded in the accounting system in the appropriate accounting period and properly classified.

2. Adequate records will be maintained to provide information regarding outstanding payables, payment due dates, and indication of duplicate or potentially improper payments.

3. All purchases of any type must be attributable to the business operations of the Coalition.

4. The Associate Executive Director authorizes all purchases. In emergency situations, or in the absence of the Associate Executive Director, the Executive Director will authorize the purchase.

Purchasing

1. Coalition staff shall complete a check request form (Appendix 1) for all purchase requests and submit this form to the Associate Executive Director. If approved, the Associate Executive Director shall forward the check request form to the appropriate staff member who shall place the order with an approved vendor. The Associate Executive Director shall maintain a copy of the check request form until items are received. Purchases by the Associate executive Director shall be approved by the Executive Director.

2. The office Administrative Assistant shall receive all ordered items at the Coalition and compare requested quantities with received quantities. Any discrepancies shall be resolved before forwarding the invoice for payment. The vendor invoice will be noted as received and checked by the office Administrative Assistant and then will be forwarded to the Associate Executive Director for approval. Once approved, the invoice will be forwarded to the Fiscal Manager for processing.

3. Competitive bidding processes required by any contract or program under which the Coalition is bound will be followed per requirements of that contract or program. The following competitive bidding practices will be followed in the absence of any such contract or program requirements:

a. Items under $500 – no bidding required.

b. Items costing over $500 but less than $2,000-telephone bids from at least three vendors for the same or comparable goods.

c. Items costing over $2,000 but less than $5,000 – written bids from at least three vendors for the same or comparable goods.

d. Items costing over $5,000 but less than $25,000 – written sealed bids from at least three qualified vendors (if available) to be due by announced date and opened by more than one Coalition staff member or Board member. All bids will be documented as to when received and shall be initialed by the Associate Executive Director and/or his/her designee as to time and date received.

e. Items costing in excess of $25,000 – written sealed bids from at least three qualified vendors (if available) to be due by announced date and opened by more than one Coalition staff member or Board member in a meeting open to any interested bidder. All bids will be documented as to when received and shall be initialed by the Associate Executive Director and/or his/her designee as to time and date received. In addition, a written specification is required to have been provided to all bidders. A bidder’s meeting may or may not be conducted to explain the specifications. Any questions which vendors may have about the specification and which may be asked outside such bidder’s meeting (if one is held) must be in writing, must be answered by the Coalition in writing and posted on the Coalition website in order to be accessed by all other bidders.

4. All items acquired by the Coalition with a value of $500 or more with an expected life of more than one year shall be accounted for as a General Fixed Asset.

5. Consulting services must be approved by the Executive Director who will require all proposals to clearly state the cost, the scope of services, and a not-to-exceed amount for the services rendered. A member of the Board or Coalition membership shall not be employed as a paid consultant.

6. All independent contractors, including consultants, must complete an IRS Form W-9 upon signing any agreement for contracted services. The requirement to submit this form will be included in all independent contractor agreements, with the stipulation that this requirement must be met in order for the agreement to be valid. To avoid incorrect tax reporting, entry for payment of any consultant will not be made in the accounting system until the Form W-9 is received by the Fiscal Manager. The “IRS 20 Factor Test” will be used to determine if a person should be classified as an independent contractor or employee.

7. It is the policy of the Coalition not to do business with relatives of the staff or Board. This policy may be waived in exceptional circumstances with the approval of the Finance Committee. The exceptional circumstances must be clearly documented and appropriate safeguards put in place to ensure there are no direct lines of supervision which may cause a real or perceived conflict of interest.

8. All staff members and members of the Board of Directors of the Coalition who are engaged in recommending or approving the procurement or purchase of any item or service shall strictly adhere to the following guidelines:

a. No gift or payments of any kind may be solicited or accepted from any vendor in exchange for the recommendation or selection of that vendor’s goods or services.

b. Any conflict of interest existing for any staff or Board member who is involved in recommending or approving procurement of any good or services for the Coalition shall be identified by that staff or Board member and he/she shall refrain from continuing to be involved in the transaction or possible transaction. Such conflict of interest will not necessarily disqualify the effected vendor subject to the determination of the Executive Director or Board of Directors (as appropriate) that the conflict of interest is not material or that disapproval of the vendor would be detrimental to the Coalition.

9. The Coalition will utilize the purchasing program of the State of Florida to the extent possible for all purchases made under contracts of which this is a requirement. Where supplies and services are not available for such purchases through the state program, the Coalition will use best efforts to obtain such supplies and services for use in the contract at the lowest practical cost and to purchase by means of a system of competitive bidding (see above) whenever required by law and whenever practical, even if not required by law.

Expenses

1. All requests for services and expense items will be made in writing to the Associate Executive Director. If approved, the Associate Executive Director will forward the requests to the Fiscal Manager for processing. The Associate Executive Director’s expenses shall be approved by the Executive Director.

2. The Associate Executive Director may issue corporate credit cards to appropriate staff members who may need to use such cards for Coalition business travel expenses and/or other uses authorized by the Associate Executive Director. Non-business charges to the corporate card are not allowed and such unauthorized use will be subject to disciplinary action and loss of credit card privileges.

Accounts Payable

1. All refunds must be reviewed by the Executive Director or Associate Executive Director and documented and recorded according to Generally Accepted Accounting Principles.

2. The Fiscal Manager, as much as possible, shall monitor the payment cycles to maximize savings using discount periods.

3. The Fiscal Manager will schedule check printing and coordinate with the check signers, given their availability, to insure payments are made on a timely basis to avoid late charges.

4. Vendors shall be instructed to send all invoices for outlying locations to the main administrative office to expedite payment processing.

Accounts Receivable

1. Payments to the Coalition over 60 days in arrears are considered late.

2. Payment due letters will be sent to all accounts over 60 days in arrears. The Executive Director must sign all such letters.

3. Payments later after at least 90 days and for which at least two requests for payment have been sent may be submitted to a collection agency for payment or written off as uncollectible, as determined by the Treasurer.

VI. Payroll

1. The Executive Director will authorize in writing the engagement of any employees, terminating employment, setting compensation rates, and providing fringe benefits.

2. Timesheets (either electronic or paper) shall be maintained for each Coalition staff member. The Associate Executive Director reviews and approves all time sheets prior to submitting them for payroll processing.

3. The Executive Director reviews and approves the timesheet of the Associate Executive Director.

4. The Board Chair or Treasurer reviews and approves the timesheet of the Executive Director.

5. All Coalition employees are paid by electronic payroll deposit to each employee’s bank account.

6. The payroll is prepared biweekly and issued on Friday for the pay period ending the previous Friday.

7. The internal accounting controls for regular cash disbursement and bank accounts are the same for payroll accounts.

8. The Executive Director is responsible for authorizing wage increases based on employee performance and following the approval of wage adjustments by the Finance Committee and Board of Directors.

VII. Travel

1. All out-of-region travel by Coalition staff shall be pre-authorized by the Associate Executive Director using the approved travel authorization form (Attachment 2). Travel advances may be approved at the discretion of the Associate Executive Director and will be deducted from final reimbursement.

2. Out-of-region travel by the Associate Executive Director shall be pre-authorized by the Executive Director. Reimbursement forms will be approved by the Executive Director following completion of travel by the Associate Executive Director.

3. Out-of-region travel by the Executive Director shall be approved by the Coalition Chair or Treasurer. Reimbursement forms will be approved by the Coalition Chair or Treasurer following completion of travel by the Executive Director.

4. Travel by Coalition staff will be reimbursed at the rates established for State of Florida employees. Coalition employees shall submit a state travel reimbursement form with receipts to claim reimbursement. Travel reimbursement shall be paid with the next scheduled check printing as per item #3 under “Accounts Payable” above, except as required by contract provisions or State regulations.

5. Travel reimbursement forms must be approved by the Associate Executive Director. Following approval, forms will be submitted to the Fiscal Manager for payment.

6. Travel between home and job site is not reimbursable.

VIII. Government Filings

1. The executive Director will ensure that all government filings are made on time. Ordinarily, this responsibility will be delegated to the Fiscal Manager, independent auditor and payroll service, depending on the filing.

2. Governmental filings include, but are not limited to, the following:

a. UTC 6 – State of Florida Department of Labor and Employment Security, Division of Unemployment Compensation UTC 6 copy to Worker’s Comp carrier (due 45 days after the end of the quarter)

b. 990 Federal Tax Forms (IRS)

c. Form 2758 used to file for Extension of 990

d. 1096 used to file 1099 (for consultants over $600)

e. W-3 used to file W-2s.

IX. Taxes

1. The Coalition is a 501 (c)(3) not-for-profit corporation and therefore exempt from income taxes and from sales tax on its purchases in the State of Florida. All purchases will be made using this non-taxable status where possible.

2. The Coalition will collect Sales Tax on items sold by the Coalition in accordance with the laws governing such taxes.

3. Sales tax due will be reflected on all invoices.

4. The Coalition will submit timely Sales Tax reports and payments to the State of Florida on its authorized schedule.

X. Independent Audit

1. It is the policy of the Coalition to contract for an independent audit of agency records for each fiscal year.

2. The audit will be conducted by an independent CPA firm certified in the State of Florida which is selected by the Executive Director or Board of Directors, based on the recommendation of the Finance Committee.

3. The audit will be conducted on a timely basis with a complete report, if necessary, including a Management letter, which shall be submitted to the Coalition membership no later than its January Annual Meeting.

4. The audit shall relate to the guidelines and regulations of major funding sources as well as Generally Accepted Accounting Principles.

5. The Coalition staff shall make available financial records during the course of the fiscal year to permit preliminary work.

6. It shall be the responsibility of the Finance Committee to review the audit report, recommend approval to the full Board and provide direction to the Coalition staff regarding recommendations contained therein.

7. A copy of the final audit report will be sent to each funder per contract requirements.

XI. Record Retention

1. The Associate Executive Director is responsible for the maintenance of paper files for the Coalition and the Fiscal Manager is responsible for accounting records.

2. General ledgers and permanent records shall be retained in locked filing cabinets.

3. All electronic files (computer files) will be stored on the Coalition’s contracted IT service’s server. The IT service has the responsibility to maintain redundant storage and backup of all Coalition computer files. Employees shall not store personal files on this server. Employees will routinely delete user created files (Word, Excel, PowerPoint, etc.) which have no mandated retention requirement that are old, outdated or no longer used.

4. The Coalition will maintain business records for that period of time required by contracts, laws or good business practice. The Associate Executive Director is responsible for determining the record destruction schedule. Destruction of records, which may contain materials of a confidential nature, may be accomplished by shredding. Records, which are not deemed confidential by the Associate Executive Director pursuant to any applicable contracts, laws or good business practice may be thrown out as trash.

XII. Other Administrative Policies

Telephone & Cell Phone Usage

1. The Coalition’s phone system is intended for business purposes. In the cases of an emergency, employees will charge such long distance calls to their home telephone. If this is not possible, the staff member must document the call so that monthly auditing of the Coalition phone bill can be expedited. Payment to the Coalition for any personal calls must be made monthly upon receipt of an itemized bill.

2. Cell phones are intended for business purposes. Employees who utilize cell phones for personal use shall be required to reimburse the Coalition for minutes used in excess of their plan amounts. Employees will be given a copy of their monthly cell phone bill and will be required to designate all non-business related calls. Excessive use of cell phones for personal calls may result in disciplinary action, including the loss of cell phone privileges.

Mail

1. All mail will be stamped “Received” when opened.

2. All bank statements must be given to the Executive Director or Associate Executive Director unopened.

3. Postage will ordinarily be applied to outgoing mail by use of a postage meter. Coalition projects and contracts will be charged for postage either directly or on a pro-rata basis.

4. Stamped mail must be mailed the day it is metered.

5. Overnight mail services will be used judiciously and only when required.

Photocopying

A copy log or electronic counter will be used to track all copying costs by contract or program.

Insurance

The Coalition will maintain: 1) fire and extended coverage in an amount sufficient to cover the value of all property and equipment owned by the Coalition; 2) comprehensive general liability insurance; 3) professional liability insurance; 4) blanket position bond with limits of liability as required by state contract; 5) Workers’ Compensation insurance; 6) Directors and Officers insurance.

Property

1. A record will be maintained of all items of equipment owned or leased by the Coalition. The record will include equipment having a useful life of more than one (1) year and an acquisition cost of $500 or more per unit.

2. The total of equipment acquisition cost on the property record shall balance with the equipment account of the general ledger. The equipment will be physically inventoried annually and checked against property records.

3. Property valued in excess of $10,000 will not be disposed of without prior approval of the Executive Director Finance Committee and in accordance with governing regulations.

Charitable Contributions

The Fiscal Manager will maintain a list of all charitable contributions received and related expenditures directly attributable to them.

Updated as of August 15, 2013

Approved by the Coalition Finance Committee

Date: August 15, 2013

Approved by the Coalition Board of Directors

Date: August 15, 2013

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