Accounting Policies and Procedures Manual



COMMUNITY SCHOOL FOR APPRENTICESHIP LEARNING, INC.

Accounting Policies and Procedures Manual

Table of Contents

Introduction 2

Division of Duties 3

Cash Receipts Procedures 5

Cash Disbursements Procedures 6

Reconciliations 7

Petty Cash Fund 9

Purchases 10

Capitalization Policy 12

Fixed Asset Management 14

Payroll 15

Travel 16

Financial Reporting 20

Grant Compliance 20

Business Policy Statements 21

Annual Meeting Checklist 22

Salary Schedule 23

Addendum 28

LAVCA Business Policies A-1

Introduction

This manual has been prepared to document the internal accounting procedures for CSAL, Inc. Its purpose is to ensure that assets are safeguarded, that financial statements are in conformity with generally accepted accounting principles, and that finances are managed with responsible stewardship.

CSAL, Inc. will follow accounting policies and procedures that comply with generally accepted accounting principals (GAAP).

All personnel with a role in the management of CSAL, Inc. Business operations are expected to uphold the policies in this manual. It is the intention of CSAL, Inc. that this accounting manual serve as our commitment to proper, accurate financial management and reporting.

Division of Duties

The following is a list of personnel who have responsibilities within the accounting department:

Board of Directors:

1. Reviews and approves all financial reports.

2. Reviews and approves annual budget.

3. Approves annual salaries, salary increases and/or bonuses.

4. Creates and/or approves policy as needed/recommended

5. Reviews and approves all contracts for goods and services that will exceed $10,000

over the year.

The Levy Co.

1. Processes all receipts and disbursements.

2. Processes the payroll, including payroll tax returns.

3. Submits requests for bank transfers.

4. Maintains and reconciles the general ledger monthly.

5. Prepares all financial reports, including requests for reimbursements.

6. Manages the petty cash fund.

7. Reconciles the bank accounts.

8. Reconciles the statement of credit card deposits and service charges.

9. Doublechecks all reimbursement requests against receipts provided.

10. Receives unopened bank statements.

Chief Executive Officer:

1. Reviews all vouchers and invoices for those checks which require his signature.

2. Approves all vouchers, invoices and checks.

3. With the Business Manager, and input from the Board of Directors and Program Directors,develops the annual budget.

4. Reviews and approves all financial reports.

5. Recommends employee annual salary increases.

6. Reviews and approves list of pending check disbursements.

7. Reviews all vouchers and invoices for those checks which require his signature.

8. Authorizes all bank transfers.

9. Approves all reimbursements.

Business Manager/Financial Officer

1. Reviews the payroll summary for the correct payee, hours worked and check amount.

2. With the CEO, and input from the Board of Directors and Program Directors,

develops the annual budget.

3. Reviews all bank reconciliations.

4. Prepares financial reports

5. Prepares payable vouchers to be approved by CEO

6. Reviews the payroll summary for the correct payee, hours worked and check amount, before pay submission.

7. Reconciles internal bank deposits with receipts

8. Make bank deposits

9 Reconciles the statement of credit card deposits and service charges.

10. Prepares grant documentation to receive reimbursement from federal sources

11. Files and retains necessary financial documentation.

Accounts Payable Personnel

1. Prepares payable vouchers to be approved by CEO.

2. Submits benefit deductions to The Levy Co for payroll deductions.

3. Reconciles insurance bills with payroll deductions monthly.

4. Requests payment for incoming invoices/bills

5. Mails all vendor payments

6. Files and retains necessary financial documentation

Administrative Assistant/Receptionist:

1. Receives and opens all incoming mail, except the bank statements.

2. Date stamp all mail – logging in check.

3. Mail all sealed checks for payments.

4. Accepts cash/money orders/checks for school supplies, uniforms and activities.

5. Writes receipts for all money received.

6. Provide weekly internal bank deposit to Business Office.

School Principals:

1. Develops first draft of department budgets and works with the Business Manager and CEO and Board of Directors to finalize.

2. Accountability to approved departmental budgets in purchasing decisions and in preparing check request vouchers.

3. Accepts cash/money orders/checks for school supplies, uniforms and activities.

Cash Receipts Procedures

The Administrative Assistant receives all incoming mail. All checks received by the Administrative Assistant should be recorded on a cash receipts log with supporting documentation date stamped. The Administrative Assistant then forwards all invoices

and checks to the Business Office. The Administrative Assistant receives school related funds such as supply, uniform and activity money. A dated receipt is given to the individual presenting the funds and a carbon copy is kept with the Administrative Assistant. All funds received during the week (Monday – Thursday) are forwarded to the business office with an internal deposit slip and accompanying receipts indicating what area or code should be identified. All funds at the school are kept in a locked drawer with only the Administrative Assistant and Principals having access. When the deposits are forwarded to the business office the Office Manager reviews and documents to which department the funds are attributed to. A copy is forwarded to The Levy Co. and the Business Manager. The Office Manager prepares a bank deposit to be entered every Friday afternoon. A deposit that is not forwarded to the bank is kept in a lock box in the Business Office. In the event the Office Manager can not make the deposit, the CEO or Business Manager can make the deposit.

Funds Received by Wire Transfer:

The CEO can request a wire transfer of funds This request will be prepared by the Business Manager and should be signed by the CEO. Next, The Levy Co and the Business Manager will monitor the transfer of funds and maintain the appropriate records of this transaction. As soon as the funds are credited to the checking account, the bank should send a credit memo to the Levy Co. who forwards to the Business Manager. Both Levy Co. and the Business Manager should reconcile these credit memos to the total cash received at the end of the month. In the absence of the CEO, the Treasurer of the Board of Directors, should authorize wire transfers and/or sign checks.

Inter-Fund Transfers:

All funds received should be deposited into the appropriate school checking account.

At times it will be necessary to transfer funds from the savings account into the checking

account and vice versa. In order to transfer funds from the savings into the checking account, the following procedures should be followed:

The Business Manager should monitor the balance in the checking account, and determine if there are adequate funds to pay the daily expenses. The Business Manager should prepare a transfer memo for signature by the CEO to transfer the necessary amounts from the savings account to the checking account. These transfers will occur concurrently with the associated disbursements.

Cash Disbursements Procedures

1. Incoming invoices will be sent directly to the business office and delivered to the responsible staff person to prepare a check request voucher prior to disbursement dates.

2. The staff person responsible for ordering the product or service will check the validity

of the invoice against proposals/bids, etc. and work accomplished/delivered and prepare a check request voucher prior to disbursement dates.

3. Twice monthly on the 15th and 30th days (or the next business day if the date falls on a weekend or holiday), cash disbursements should be prepared by the Business Manager for signature by authorized CSAL, Inc. officials for expenses, debts and liabilities.

4. The Business Manager submits the disbursement list to The Levy Co. who is responsible for the preparation of disbursements. All disbursements are to be made by check.

5. After inputting all the check requests, the business manager or office manager will prepare a master list of all checks to be paid for approval by the CEO. If there are any questions or concerns about the amounts, the Business Manager should provide necessary information prior to running any disbursements. If there are any items removed from the batch, the totals on the payment summary form should be corrected, initialed and dated by the CEO.

6. Once the amount to be disbursed has been received by the CPA firm, Levy Co. should print the checks from the computer system. Checks are picked up from The Levy Co by the CEO, business or office manager.

7. While the CEO and/or Treasurer signs each check, he/she should double check the check request voucher. Any checks made to pay invoices in excess of $10,000 must be signed by the CEO and authorized for payment in writing by the Board of Directors.

8. All checks will be mailed as soon as this process is completed.

9. Supporting documentation, invoices and matching check stub should be filed.

10. The Business Manager will utilize the paid invoice files to respond to any discrepancies which arise with vendors or other payees.

Reconciliations

Cash Flow:

CSAL, INC. is to maintain a minimum of ten percent (10%) of the operating budget between its operating and savings bank accounts at all times. In the event that balances fall below that amount the CEO and Treasurer should be notified immediately.

Bank Reconciliations:

1. Bank statements are to be received unopened by the The Levy Co. The receiving

party should review the contents for inconsistent check numbers, signatures, cash

balances and payees and endorsements at a minimum. After this cursory review is

conducted, the official should initial and date the bottom, right hand corner of the first

page of each bank statement reviewed. The reviewed bank statement should then be

forwarded to the Business Manager (an individual without check signing rights) to reconcile in-house and file statements.

2. The person charged with this responsibility should reconcile each account promptly

upon receipt of the bank statements. All accounts will be reconciled no later than 7 days after receipt of the monthly bank statements. In the event it is not possible to reconcile the bank statements in this period of time, the CEO should be notified.

3. When reconciling the bank accounts, the following items should be included in the

procedures:

a. A comparison of dates and amounts of daily deposits as shown on the bank

statements with the cash receipts journal.

b. A comparison of inter-organization bank transfers to be certain that both sides of the transactions have been recorded on the books.

c. An investigation of items rejected by the bank, i.e., returned checks or deposits.

d. A comparison of wire transfers dates received with dates sent.

e. A comparison of canceled checks with the disbursement journal as to check

number, payee and amount.

f. An accounting for the sequence of checks both from month to month and within a month.

g. An examination of canceled checks for authorized signatures, irregular

endorsements, and alterations.

h. A review and proper mutilation of void check.

i. Investigate and write off checks which have been outstanding for more than six months.

4. The Levy Co. upon receipt of the completed bank reconciliations, prepares any

general ledger adjustments.

5. Copies of the completed bank reconciliations will be forwarded to the Business Manager for his/her review upon request.

Reconciliations of Other General Ledger Accounts:

1. Each month the Business Manager and CEO should review the ending balance

shown on balance sheet accounts such as the cash accounts, accounts receivable,

accounts payable and deferred revenue.

2. Assets - These accounts will include cash, petty cash, prepaids, property, equipment

and fixtures, security deposits, and intangible assets.

a. Cash - The balances in cash accounts should agree with the balances shown on

the bank reconciliations for each month.

b. Petty Cash - The balance in this account should always equal the maximum

amount of all petty cash funds. The current amount equals $100.00.

c. Prepaids - The amounts in these accounts should equal advance payments paid

to vendors at the end of the accounting period.

d. Property, Equipment & Fixtures - The amounts in this account should equal the

totals generated from the audited depreciation schedules. When additional purchases are made during the year, the balances in the accounts may be updated accordingly.

e. Security Deposits - The balance in this account should equal amounts paid in

escrow to landlords and lessors and should not change frequently, but should be updated as applicable.

3. Liabilities - These accounts are described as accounts payable, payroll tax liabilities,

loans and mortgages payable, and amounts due to others.

a. Accounts Payable - The balance in this account should equal amounts owed to

vendors at the end of the accounting period and the aging report.

b. Payroll Tax Liabilities - The amounts in these accounts should equal amounts

withheld from employee paychecks as well as the employers portion of the

expense for the period, that has not been remitted to the government authorities.

c. Due to Others - If there are any amounts owed to others at the end of the period

they should be recorded and the correct balance maintained in the general ledger accounts.

4. Income/Expenses - These accounts are described as income from membership,

contributions, publications, and other expense line items such as salaries, consulting

fees, etc.

a. Income - The amounts charged to the various cash accounts should be

reconciled with funding requests, funders reports, draw down schedules, etc.

b. Gross Salary Accounts - The balances in the gross salary accounts should be

added together and reconciled with the amounts reported on quarterly payroll returns.

c. Consulting - The amounts charged should be reconciled to the contracts.

Petty Cash Fund

1. The petty cash fund should never exceed $100.00.

2. The Business Manager is the custodian of the petty cash fund.

3. A single disbursement from petty cash shall never exceed $25.00.

4. The petty cash fund shall be operated on an impress basis. This means that when it is time to replenish the petty cash fund, the Business Manager shall total out the expenses made and identify those expenses by general ledger account number. When the check request is submitted for payment it should indicate the total amount needed to bring the fund back up to $100.00. Also, the check request should breakdown the various expense accounts being charged and the amount charged to each.

5. When a request for petty cash reimbursement is made to the Business Manager, the item will be listed on the Petty Cash Fund Reconciliation Sheet. A description of the item charged should be recorded together with the amount. A vendor receipt must be

received by the Business Manager for the amount of the request in order for the request

to be approved.

6. The recipient of the petty cash funds must sign the sheet to indicate receipt of the

funds. The paid receipt should be attached to the sheet. All paid information should remain in the locked petty cash box until it is time to replenish the fund. At that time, the Petty Cash Fund Reconciliation Sheet and associated receipts are attached to the check request voucher.

7. The petty cash box is to be locked at all times when the Business Manager is not

disbursing or replenishing the fund. The locked petty cash box is to be kept in the locked file cabinets within the finance office.

8. At least once annually, the CEO should conduct a surprise review of the fund. When this is done, he/she should count, while the Business Manager is in attendance, the total monies on hand and the total amount of receipts in the petty cash box. The two amounts should equal exactly $100.00. Any discrepancies should be discussed and resolved immediately.

9. It is a policy of CSAL, INC. not to cash checks of any kind through the petty cash fund.

10. The CSAL, INC. postage meter is not to be used for personal mailings under any circumstances.

Purchases

Any procurement of goods and services shall be made by the designated personnel, in the best interest of the school, upon considering the totality of the circumstances surrounding the procurement, which may include but not be limited to price, quality, availability, timelines, reputation and prior deals.

CSAL, Inc. should not purchase any goods or services from any member of the governing board, an immediate family member of any member of the governing board not from any entity in which any member of the governing board or an immediate family member of a governing board member may benefit from such a procurement, unless authorized by the governing board after a full disclosure of the potential benefits and after the consideration set forth in the paragraph above.

CSAL, Inc. understands that the policy cited above applies to purchases made using non-federal and federal funds, as well as following the federal procurement requirements

If either school is looking to purchase an asset, they will visit the state property control facility. Only the Executive Director is allowed to purchase items from State Surplus. If property surplus does not have what the school need outside vendors will be used. Based on the pricing of the item bids may be solicited. In the case of bid purchasing, any bid over $5,000.00 will be submitted to the Board of Directors for approval.

To Prompt a Purchase:

1. When the normal cash disbursement procedure of invoice, etc., is not appropriate,

(i.e., postage, petty cash, etc.) a check request should be completed and forwarded with any order form or other documentation to the business office for approval. If the check is made out to the CEO, that individual cannot approve the check request voucher.

2. Approved check requests should be sent to the Business Manager for payment.

3. In the absence of backup materials, receipts for the purchase must be provided to the Business Manager for attachment to the check request within two weeks from the check date.

Credit Card Purchases:

1. The CEO, School Principals and Office Managers carry corporate credit cards in his or her name. The purchase of airline tickets and other authorized business expenditures may be made by other employees or board members using the corporate credit card. In every case of credit card usage, the individual charging an CSAL, INC. account will be held personally responsible in the event that the charge is deemed personal or unauthorized.

2. Authorized uses of the credit card include:

a. Airline or rail tickets (at coach class or lower rates) for properly authorized

business trips. CSAL, Inc’s designated travel agency will require that employees supply the travel agency with an account code in order to charge to the CSAL, Inc. American Express.The account code will help reconcile the costs of travel with the proper CSAL, Inc. program to be charged. The travel agency will provide CSAL, Inc. a monthly report of all travel charged to the American Express.

b. Lodging and meal charges that do not exceed the authorized reimbursement rate for persons traveling on official CSAL, Inc. business .

c. Car rental charges (for mid-size or smaller vehicles) for properly authorized

business trips

d. Properly authorized expenditures for which a credit card is the only allowed

method of payment (such as monthly internet access)

e. Business telephone calls

3. Receipts should be compiled and submitted with an expense report on a weekly basis.

4. Unauthorized use of the credit card includes:

a. Personal or non-business expenditures of any kind.

b. Expenditures which have not been properly authorized.

c. Meals, entertainment, gifts or other expenditures which are prohibited by:

1. CSAL, Inc. budget and/or policies

2. Federal, state, or local laws or regulations

3. Grant conditions or policies of the entities from which CSAL, Inc. receives funds.

Proper Documentation for all Purchases, including CSAL, Inc. Credit Card Purchases:

Every instance of credit card or other purchase use must be documented with travel

authorizations, receipts, individuals paid for, nature of business, etc. before the expense will be considered authorized and will be approved for reimbursement. See details below.

A. Lodging - Provide an itemized receipt from the hotel detailing every charge and the name of the person(s) for whom lodging was provided.

B. Meals/Entertainment - Provide a receipt showing separately the cost for

food/beverage and gratuities and the specific business purpose which was furthered by the expenditure.

C. Other Expenditures - A receipt from the vendor detailing every individual good or service purchased (including class of service for commercial transportation) accompanied by an explanation of the specific business purpose which was furthered by each expenditure.

The Business Manager will double check all reimbursement requests against receipts provided and run a calculator tape which will be attached to the reimbursement form.

Contracts

Contract Definition

Under this policy, a contract is an agreement between CSAL, Inc. and another party that is intended to have a binding obligation and/or legal effect. Contracts contain the terms and conditions under which goods, services, or other considerations of value are furnished by either party. Effective contracts provide a common understanding and the essential terms and mutual obligations defined within the agreement that exist between the parties. In addition to formal documents commonly understood to be contracts, documents such as purchase orders, service agreements, leases, and letters or memoranda of agreement, understanding, and intent are contracts if there is a K-12 interest at stake and something of value is exchanged.

Applicability of the Policy

This policy applies to all agreements between CAL, Inc. and any other party, with the following general exceptions:

• Employee contracts

• Contracts involving State grants and financing.

• Service Learning Agreements with Community Partners or schools or other Volunteer Activities are not required but they are encouraged particularly when liability issues could arise through the agreement. If a contract is written for these purposes, it will fall under the provisions of this Policy.

• The Student Handbook.

Purchase of goods: Finished (or "off the shelf") goods that are commonly purchased by cash or credit card valued under $10,000 do not generally need a contract.

Regardless of the cost of the service provided, where the service is provided, or whether or not a contract is executed, members of the CSAL, Inc. Board of Directors, faculty or staff may not pay for services out of their personal accounts and then seek reimbursement from the Organization for these expenses. Rather, all payments for services must be made directly from CSAL, Inc. to the vendor and/or individual(s) providing the services.

Contract Approval and Signatory Authority

Signing authority of contracts at CSAL, Inc. is delegated by the Board of Directors to the CEO of the Organization. Board members must still exercise reasonable oversight and maintain ultimate responsibility for the contracts, and they should limit or revoke the delegated authority whenever appropriate. Spending limits or payment approval for periodic payments specified within a contract can be delegated with significant variation depending on the nature of the contract.

Contracts over $10,000 must be approved by the President, the Vice President of Finance and Administration, or the Vice President for Academic Affairs and Dean of Faculty. In addition to these approvals, facilities and technology projects over $1,000,000 must also be approved by the Board of Trustees and all new banking relationships must also be approved by the Trustee Finance Committee.

No person may enter into binding contract negotiations without permission from an Authorized Signatory who is also their Division Head, or their Department Manager or Chair. Those signing without this authority may incur personal liability, and/or may be subject to discipline by the Board, including termination.

Legal Counsel Review

If a contract/agreement includes provisions that pose a substantial risk to CSAL, Inc. or new, non-standardized clauses which the representative is not familiar and/or comfortable with, the President and Treasurer of the Board should be contacted. They will determine whether legal counsel should be consulted to ensure the contract/agreement protects the Organization and is consistent with all applicable laws. Legal counsel review should only be requested by the Board of Directors following recommendation and discussion.

Capitalization

1. This accounting policy establishes the minimum cost (capitalization amount) that shall

be used to determine the capital assets that are to be recorded in CSAL, Inc.’s annual financial statements (or books).

2. A "material or supply" is generally considered to be tangible property that is used or consumed in the business within twelve months of acquisition, is not inventory, or has a unit cost of less than $200. Materials and supplies meeting this definition may be expensed.

3. All Capital Assets are recorded at historical cost as of the date acquired. Tangible assets costing below the aforementioned threshold amount are recorded as an expense in CSAL, Inc.’s annual financial statements.

4. Routine maintenance that CSAL, Inc. reasonably expects to make more than once to a unit of property, including buildings, over a 10-year period is not a capital asset and will be expensed.

Recordkeeping - Invoices substantiating the acquisition cost of each unit of property shall be retained for a minimum of five years. For all major expenditures three bids must be obtained before a purchasing decision is made. If the annual amount will exceed $5,000, a bidding process and review will be conducted. All bids, including phone quotes, must be recorded and kept on file.

CSAL, Inc. Capitalization Policy & Procedures Threshold Levels

|Asset Type |Capitalization |Useful |

| |Threshold |Life |

|Land |$150,000.00 |N/A |

|Land Improvements |150,000.00 |10 yrs |

|Buildings |150,000.00 |50 yrs |

|Building Improvements |150,000.00 |10 yrs |

|Construction in Progress |150,000.00 |N/A |

|Machinery and Equipment |5,000.00 |8 yrs |

|Furniture, Fixtures and Office Equipment |5,000.00 |8 yrs |

|Computer Equipment |5,000.00 |3 yrs |

Consultants:

Contracts with consultants will include rate and schedule of pay, deliverables, time frame, and other information such as work plan, etc. Justification for payment should be submitted to file. For example, if CSAL, INC. hired a writer to create a publication, a copy of the final

version should be included in the file.

Contracts:

Contracts for purchasing products or services, similar to a purchase order, should be created and maintained for the file whenever appropriate. All contracts to exceed $5,000 over the course of the year should be approved by the CEO.

Fixed Asset Management

1. A permanent property log or database is to be maintained by the Business Manager for all fixed assets purchased by CSAL, INC..

2. The log should contain the following information:

a. date of purchase

b. description of item purchased

c. received by donation or purchased

d. cost or fair market value on the date receipt

e. donor or funding source, if applicable

f. funding source restrictions on use or disposition

g. identification/serial number (if appropriate)

h. depreciation period

i. vendor name and address

j. warranty period

k. inventory tag number (all fixed assets should be tagged with a unique

identifying number)

l. number of the CSAL, INC. check used to pay for the equipment

3. Every two (2) years, a physical inspection and inventory should be taken of all CSAL, Inc.fixed assets and reconciled to the general ledger balances. Adjustments for dispositions should be made.

4. The Business Manager should be informed, of any material changes in the status of property and equipment. This should include changes in location, sale of, scrapping of and/or obsolescence of items and any purchase or sale of real estate.

5. All capital items which have a cost greater than $250.00 will be capitalized and depreciated.

Payroll

Personnel:

1. The Office Manager is charged with the responsibility of maintaining personnel files on staff persons and reporting to the Business Manager.

2. Each personnel file should contain the following information, at a minimum.

a. Employment application or resume

b. A record of background investigation

c. date of employment

d. position, pay rates and changes therein

e. authorization of payroll deductions

f. earnings records for non-active employees

g. W-4 Form, withholding authorization

h. I-9 Immigration Form

i. termination data, when applicable

3. All personnel records are to be kept locked in a locking file cabinet in the HR Manager’s office. Access to these files other than by the Business Manager, CEO, or the auditor should be requested in writing to the CEO.

Payroll Preparation and Timekeeping:

1. Timesheets are to be prepared by all hourly staff persons and submitted semi-monthly for the 15th and 30th of each month. Time should be input on a daily basis and, if in writing, completed in ink. Correction fluid should never be used in preparing timesheets. If an error needs to be corrected, a line should be drawn through the item and the corrected information recorded, and initialed by the person who made the correction.

2. Timesheets are to include specific time spent on each grant/project.

3. Timesheets are to be signed by the staff person and his/her supervisor.

4. All approved timesheets should be submitted to the Admin. Asst., who will verify

the hours worked against his/her record.

5. The Admin. Asst./AP Clerk should then process the time and report the information to The Levy Co. The information reported should include:

a. hours worked, by cost center

b. changes in pay rates or employment status

c. vacation, sick or personal hours used and earned

6. The Business Manager should review the payroll summary page of the payroll service report for inappropriate payees or unusual hours.

7. Paychecks should be distributed by the Business Manager on the designated day and hour, one week after the end of the pay period according to a prearranged schedule distributed by the Business Manager. In the event that a paycheck is picked up by a designated person other than the staff person, a memo should be received in writing from the staff person and proper identification should be requested from the party picking up the pay check.

8. As an employee benefit, CSAL, Inc. offers direct deposit through the employee’s own financial institution. Paychecks are deposited in the employee’s account on the designated payroll date.

Travel

General:

Travel Authorization:

All non-routine travel must be authorized and approved in writing by the head of the department, board, or commission from whose funds the traveler is paid. All travel expense and reporting will follow travel per diem guidelines for meals and incidentals as assigned by the General Services Administration (), when in doubt.

Routine Lodging Overage Allowances: (Receipt required)

Department Head or his/her designee has the authority to approve actual cost for routine lodging provisions on a case by case basis.

Single Day Travel: Meals are eligible for reimbursements on single day travel, if travel is for a work related conference/event or more than 5 hours away. This means that when an authorized traveler of the State is in travel status where no overnight stay is required, meals are eligible for reimbursement if prior authorization has been given. The Department Head will be allowed to authorize Single Day meal reimbursements on a case-by-case basis or by type(s) of single day travel when it is determined to be in the

best interest of the department. In those cases, the department must keep the approvals in the travel file. The maximum allowance for meal reimbursement for single day travel will be $55.00, regardless of the travel location.

Travel with Overnight Stay: Travelers may be reimbursed for meals according to the followingschedule (minimum of 12hours in travel status).

Breakfast: When travel begins at/or before 6 a.m. on the first day of travel or extends at or beyond 9 a.m. on the last day of travel, and for any intervening days.

Lunch: When travel begins at/or before 10 a.m. on the first day of travel or extends at or beyond 2 p.m on the last day of travel, and for any intervening days.

Dinner: When travel begins at/or before 4p.m. on the first day of travel or extends at or beyond 8 p.m. on the last day of travel, and for any intervening days.

Airfare:

CSAL, Inc. strongly encourages use of lowest logical airfares. We support purchasing

the “best value” ticket. All out of town arranged travel will be confirmed by the

Operation/Business Manager to ensure the lowest logical rates based on personal needs.

Remember, “The policy regarding airfare penalties is that CSAL, Inc. will pay for the

airfare and/or penalty incurred for a change or cancellation if required by CSAL, Inc.

or other unavoidable situations approved by the agency’s department head. Justification

for the change or cancellation by the traveler’s department head is required on the travel voucher.”

Mileage:

Reimbursement from official domicile to area of travel based on most direct route.

Mileage shall be reimbursable on the basis of $0.55 per the following:

Rental Cars ( Receipt Required)

An employee should rent a car when the school related travel will exceed 150 miles in 1 day or 200 miles in 2 days. Rental of vehicles for School business should be arranged by the employee using their personal credit card. The School cannot and will not rent a car directly for employee. Before an employee rents a car, it is their responsibility to determine whether the credit card provides auto insurance or whether their primary auto insurance carrier provides rental insurance coverage in the event of an accident. A compact or economy size is usually the least expensive option for a rental car and should be used whenever possible.

Employee will expense rental car charges through regular expense reporting procedures. The cost of gasoline is reimbursed for a rental car if employee selects the self fill option. The School will not reimburse for pre-paid gasoline or for any fuel after the car has been returned to rental agency. The School will not reimburse for miscellaneous charges, such as extra clean-up fees, repairs for damage done to the car, etc.

Gasoline (Receipt Required)

Reimbursements require an original receipt for regular unleaded gasoline, or diesel when applicable. This applies for rental vehicles, as mid-grade, super, plus or premium gasoline is typically not necessary.

Taxi: (Shuttles, Airport limousines, etc.)

The cost of public ground transportation such as buses, subways, airport shuttle/limousines, and taxis are reimbursable when the expenses are incurred as part

of approved state travel. Airport Shuttle/limousines and taxi reimbursements, including tip, requires a receipt to account for total daily amount claimed. A driver’s tip for shuttles/limousines and taxis may be given and must not exceed 15% of total charge. Amount of tip must be included on receipt received from driver/company.

Parking:

Airport parking is reimbursable at cost if related to a work-related event.

Luggage: (Receipt Required)

A Department Head or his designee may approve reimbursement to a traveler for airline

charges for first checked bag for a business trip of 5 days or less and for a second

checked bag for a 6 – 10 day business trip and/or any additional baggage which

is business related and required by the department.

Financial Reporting

Monthly Reports:

The Business Manager should prepare a set of monthly financial reports for distribution to the CEO, and the Budget and Finance Committee. The reports should include: a balance sheet and a statement of income and expenses that will be submitted to the full board for their review and acceptance at the following board meeting.

Year-End Report/Audit:

At Business year-end, and in time for the summer retreat of the Board of Directors, a year end report should be prepared summarizing the total income and expense activity for the year. An annual budget for the upcoming year should be prepared as of June 30 and should be attached to the income and expense report. This report will be initially reviewed by the CEO, prior to Board approval and distribution at the annual meeting.

The independent auditing process will begin on or before August 15. This audit will be conducted by an outside independent audit with a timely submission to both the Board of Directors of CSAL, Inc. and the State of Louisiana Legislative Office.

Grant Compliance

1. When a new grant is received or renewed, a copy of the executed grant must be

forwarded to the Business Manager.

2. The Business Manager should set up a permanent file for the grant and maintain the

contract along with any other financial correspondence regarding the grant.

3. It is the responsibility of the Business Manager to review the grant contract and extract any Business items which must be complied with by CSAL, Inc.. Typically, for government grants, reference will be made to various publications put out by the Office of Management and Budget (OMB) to which CSAL, Inc. is responsible for adhering.

Governmental Generally Accepted Accounting Principles:

4. It is a policy of CSAL, Inc. to adhere to any restrictions imposed by its funders, (federal, State and local). Therefore, CSAL, Inc. employees are expected to bring to the attention of management, any instances of non-compliance.

5. CSAL, Inc. will never request federal funds to pay for the following costs:

a. Bad debt expense

b. Contingencies

c. Contributions or donations to others

d. Entertainment expenses

e. Fines and penalties

f. Interest, fundraising and other financial costs

Business Policy Statements

1. All cash accounts owned by CSAL, Inc. will be held in financial institutions which are federally insured.

2. Employee paychecks and/or personal checks will not be cashed through the petty cash fund of CSAL, Inc.

3. No salary advances will be made under any circumstances.

4. No travel cash advances will be made except under special conditions and

preapproved by the Treasurer of the Board of Directors. Reimbursements will be paid upon full expense reporting using the official CSAL, Inc. form within the normal disbursement schedule.

5. Any item received via donation, will be recorded in the books and records of CSAL, Inc.

6. Business Management personnel are required to take annual vacation which will not

interfere with Business procedures. Variances to this policy shall be made in special circumstances, with written permission from the CEO.

7. It is the policy of CSAL, Inc. to reimburse out of pocket expenses only when supporting documentation has been presented for approved costs incurred.

8. It is the policy of CSAL, Inc. to establish pay rates based on years of service and level of degree. Employee pay increases are recommended by the CEO only and must be approved by the Board of Directors. Board of Directors determine annual merit increases and/or bonuses depending on the current budget. Merit Increases should not exceed 2% per salary per year.

9. It is the goal of CSAL, Inc. to maintain a minimum of ten percent (10%) of the operating budget between its operating and savings bank accounts at all times. In the event that balances fall below that amount the CEO and Treasurer should be notified immediately.

10. All funds received by CSAL, Inc. for each project will be identified into separate project accounts in the general ledger . A full computerized ledger accounting system will be maintained which should be closely related to the chart of account keypunch codes used by the state of Louisiana.

11. The CEO and/or Treasure are signers of all CSAL, Inc. bank accounts.

12. Bank statements will be reconciled monthly in order to account for any outstanding or lost checks.

13. Expense reports will be maintained which will disclose the nature of expenses, and the dates incurred.

14. Separate files will be maintained for each bank account and each vendor. Files will be kept separately for each Business year.

15. The services of a Certified Public Accountant will be engaged to prepare a formal financial audit of the CSAL, Inc. Business year-end.

16. Correction fluid should never be used in preparing timesheets or any accounting documents.

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4 Board Ethics

The Louisiana Code of Ethics and conflict of interest policy applies to board members, officers, and employees of Madison Preparatory Academy. If a conflict of interest occurs, the school will file a written notice with the Louisiana State Board of Ethics to investigate any wrongdoing(s) to determine if a violation has occurred. If the Board of Ethics determines that a violation has occurred, the party who has committed the violation will be immediately separated from the Organization until such time a final resolution has been rendered by the high Court of authority.

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In accordance with Louisiana Public Records Law, the Board of Directors shall allow any person the right to inspect, copy, reproduce, or obtain a reproduction of any public record, except those protected from disclosure by legal exemptions and exclusions

Annual Meeting Checklist

During each end of year (June) meeting, the following procedures will be performed.

1. The board of directors shall approve new signers to each bank account.

2. The board of directors shall approve any new and necessary bank accounts.

3. As required, new signers shall complete the appropriate signature card and corporate resolutions.

4. Name, address and telephone directory of new board of directors officers will be

obtained for the Business Manager.

5. A review of the current operating procedures should be made with the chairperson

and treasurer and reaffirmed or revised.

6. All financial institutions should be notified of any changes to the authorized signers

of the accounts within three (3) business days following the annual meeting.

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