Fiscal Operations Manual · 2020. 8. 31. · Fiscal Operations Manual Page 3 of 36 o being mindful of bias when engaging others by remaining educated and current on/about issues impacting

FISCAL OPERATIONS

MANUAL

Review On

08/29/2020

Fiscal Operations Manual

Page 1 of 36

CONTENTS

INTRODUCTION ......................................................................................................................... 2

ABOUT THE AGENCY ................................................................................................................ 2

PRIDELINES MISSION STATEMENT .......................................................................................................................... 2

VALUES............................................................................................................................................................ 2

GUIDING PRINCIPLES ......................................................................................................................................... 3

AUTHORITY & DEFINITIONS OF DUTIES .................................................................................................................. 4

ROLE DEFINITIONS ............................................................................................................................................. 5

INDEMNITY POLICY ............................................................................................................................................ 6

INVESTMENT POLICY .......................................................................................................................................... 7

FINANCIAL PLANNING AND BUDGETING POLICY ................................................................................................... 8

FINANCIAL CONTROLS AND OPERATING POLICY .................................................................................................. 8

FISCAL OPERATIONS PROCEDURES ........................................................................................19

FINANCIAL REPORTING ...........................................................................................................24

BUDGETS ........................................................................................................................................................ 24

GRANTS ......................................................................................................................................................... 25

REVENUES PROCEDURES .................................................................................................................................. 26

PAYROLL ....................................................................................................................................................... 30

TRAVEL AND EXPENSE REIMBURSEMENT PROCEDURES .......................................................................................... 31

PETTY CASH PROCEDURES ............................................................................................................................... 33

PURCHASES .................................................................................................................................................... 33

RECONCILIATIONS........................................................................................................................................... 34

RECONCILIATIONS OF OTHER GENERAL LEDGER ACCOUNTS: .............................................................................. 35

RECORD RETENTION POLICIES: ......................................................................................................................... 36


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INTRODUCTION

Pridelines Youth Services, Inc. d.b.a. Pridelines (Pridelines) is committed to responsible financial

management. The entire organization including the board of directors, staff and volunteers work

together to make sure that all matters of the organization are addressed with care, integrity, and

in the best interest of Pridelines.

RESPONSIBILITY

The policies and procedures in this manual are issued by the Chief Executive Officer,

Chief Operating Officer and Chief Financial Officer. These policies and procedures apply

uniformly to all departments and employees of Pridelines. Any exceptions will be noted in

the manual.

All persons are asked to make suggestions for improvement of these procedures to the

department that is directly responsible for rendering the service. Departments should

make a concerted effort to see that these policies and procedures reflect the most

current practice of their department. It is important that no procedure be changed

without incorporating the change in this manual.

ABOUT THE AGENCY

PRIDELINES MISSION STATEMENT

To support, educate and empower South Florida’s lesbian, gay, bisexual, transgender and

questioning (LGBTQ) youth and community in safe and diverse spaces to promote dialogue,

wellness, and to foster social change.

VALUES

SERVICE

o providing assistance to those in need

o focusing on underserved/marginalized populations and communities

o being present, engaged and responsive to the needs of our communities

o advocating for Social Justice on a local, national, and international level

EXCELLENCE

o committed to perform beyond expected standards

o pushing boundaries, be innovative and adaptable

INCLUSIVITY

o respecting and welcoming all individuals across all our programs, services, and media

platforms


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o being mindful of bias when engaging others by remaining educated and current

on/about issues impacting our diverse communities

EMPOWERMENT

o creating safe spaces for personal growth, development, self-expression, and where

trying new things is okay

o being an incubator for new ideas, groups, and initiatives

o supporting community through partnerships that leverage the voices of

underrepresented people and communities in equitable ways

o empowering and support our staff, volunteers, board and participants to be leaders in

our communities

o providing leadership and development opportunities within our organization

FUN

o maintaining a positive outlook

o exhibiting a sense of humor and ability to laugh at self

o creating the best outcome in any situation

o demonstrating and creating enthusiasm in everything we do

o creating a friendly and inviting environment

ACCOUNTABILITY

o to our community, each other, and ourselves

o to our mission, guiding principles, and values

GUIDING PRINCIPLES

o All the decisions we make focus on the improvement of the lives of South Florida’s LGBTQ

community members, especially youth.

o We focus on identifying resources for the LGBTQ community, particularly for youth,

creating the most comprehensive system of services.

o We work together in building relationships based on equality and mutual respect.

o Our programs are flexible and respond to the emerging needs and issues of the LGBTQ

community with a focus on youth.

o We are committed to creating an affirming, nurturing and inspiring environment that

encourages self-expression, personal growth and community.

o We have a demonstrated commitment to providing leadership opportunities to

empower LGBTQ youth as full participants in the governance of their own services.

o We have a demonstrated commitment to providing health services, including HIV and STI

testing to ensure the health and safety of the community, and to de-stigmatize HIV/AIDS.


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THE PROCEDURAL GUIDELINES CONTAINED IN THIS HANDBOOK ARE DESIGNED TO:

o Protect the assets of Pridelines

o Ensure the maintenance of accurate records of Pridelines’ financial activities.

o Provide a framework of operating standards and behavioral expectations as they relate

to Pridelines fiscal management.

o Ensure compliance with federal, state, and local legal and reporting requirements.

The Chief Executive Officer (CEO) of Pridelines has the responsibility for administering these

policies and ensuring compliance with procedures that have been approved by the Board of

Directors (BOD). Exceptions to written policies may only be made with the prior approval of the

BOD Finance Committee. The Board of Directors may approve changes or amendments in

collaboration with the CEO, COO and CFO to these policies at any time. A review of the policies

shall be conducted every two years.

Every employee, director and officer with financial-related responsibility is expected to be

familiar with and operate within the parameters of these policies and guidelines.

AUTHORITY & DEFINITIONS OF DUTIES

SEPARATION OF DUTIES

o Financial functions and responsibilities must be separated so that no one employee has

sole control over cash receipts, disbursements, payroll, reconciliation of bank accounts,

etc.

o No advances on compensation will be made under any circumstances.

o The check signer(s) must not be the person who writes checks or who does the

bookkeeping.

o bank statements are reconciled by someone other than the check signer or writer.

o A person other than the one recording the receipts prepares deposit documentation

and reconciliations.

o Fiscal management personnel are required to take an annual vacation, not to exceed

one week, at the discretion/scheduling of the CFO. Variances to this policy shall be

made in exceptional circumstances, with written permission from the Board Chair.


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ROLE DEFINITIONS

BOARD OF DIRECTORS (BOD)

In collaboration with the CEO and CFO has the authority to create and execute any

policies it deems to be in the best interest of the organization within the parameters of

the organization's articles of incorporation, bylaws or federal, state and local law. The

Board of Directors reviews operations and activities. The Board of Directors will be

required to secure an independent audit annually. If this is not the case, an outside audit

will occur at a minimum every two years.

TREASURER

Has whatever authority as may be designated by the BOD; is responsible for

recommending the auditor for BOD approval; perform regular, in-depth reviews of the

organization's financial activity; oversee the development of the annual budget; the

allocation of investment deposits. Chairs the Finance Committee will be required to

provide semi-annual budget reviews and annual reviews of the adequacy of insurance

coverage.

CHIEF EXECUTIVE OFFICER (CEO)

Has whatever authority as may be designated by the Board of Directors and has the

authority to make spending decisions within the parameters of the approved budget;

employ and terminate personnel; determine salary levels; create and amend operating

procedures and controls to execute policies approved by the Board of Directors; make

decisions regarding the duties and accountabilities of personnel and the delegation of

decision-making authority; enter into contractual agreements within board-designated

parameters. The CEO, for reasonableness, should review standard journal entries on a

monthly basis. Non-standard journal entries are to be examined by the auditor. The CEO

shall have primary responsibility for ensuring that proper financial management

procedures are maintained and that the policies of the Board are carried out.

CHIEF OPERATING OFFICER (COO)

Has whatever authority as may be designated by the CEO and has the authority to

make spending decisions within the parameters of the approved budget; employ and

terminate personnel; determine salary levels; create and amend operating procedures

and controls to execute policies approved by the Board of Directors; make decisions

regarding the duties and accountabilities of personnel and the delegation of decision-

making authority; enter into contractual agreements within board-designated

parameters. The CEO, for reasonableness, should review standard journal entries on a

monthly basis. Non-standard journal entries are to be examined by the auditor. The CEO

shall have primary responsibility for ensuring that proper financial management

procedures are maintained and that the policies of the Board are carried out.


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CHIEF FINANCIAL OFFICER (CFO)

Has whatever authority as may be designated by the CEO. Duties can include: the

authority to design the organization's accounting system; make recommendations to

CEO and Chief Operating Officer (COO) regarding spending decisions within the

parameters of the approved budget; make recommendations to the CEO and COO

about the disposition of investments within the parameters of the investment policy;

make recommendations to the CEO and COO regarding fixed asset purchase

recommendations over a certain dollar amount; make recommendations to the CEO

and COO regarding the allocation of expenses.

The CFO will also function as an accountant with primary responsibility for designing and

maintaining the accounting system. A business office support person may provide

support as designated. Monthly reports shall be made to the CEO and COO covering, at

a minimum, receipts, disbursements, receivables and payables.

DEPARTMENT AND PROGRAM DIRECTORS OR MANAGERS

Have whatever authority as may be designated by the CEO. Duties can include

authority to make spending decisions (i.e. Pride, various Center-sponsored groups and

Board-approved special events) within the parameters of the approved department or

program budget subject to the approval of the CEO or COO.

FINANCE COMMITTEE

The Finance Committee shall provide fiscal oversight for the safeguarding of Pridelines

assets and shall have primary responsibilities for ensuring that all internal and external

financial reports fairly present its financial condition. The Finance Committee is also

responsible for reviewing all financial statements before presentation to the Board of

Directors.

INDEMNITY POLICY

To the full extent that it shall have from time to time under applicable law and in the manner

from time to time prescribed or permitted by applicable law, Pridelines may indemnify any past,

present or future director, officer, employee or agent against all costs, expenses and liabilities,

including attorneys' fees, actually and necessarily incurred by or imposed upon them in

connection with or resulting from their involvement with Pridelines.

No such reimbursement or indemnity shall relate to any expense incurred or settlement made in

connection with any matter arising out of their negligence or misconduct as determined either

by a court of competent jurisdiction or, in the absence of such a determination, by Pridelines

acting on the advice of counsel.


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Pridelines shall purchase and maintain insurance on behalf of any person who is serving at the

request of Pridelines, as a director, officer, employee, agent, volunteer or other enterprise,

against any liability asserted against them and incurred by them in any such capacity, or arising

out of their status as such.

INVESTMENT POLICY

The investment objectives of Pridelines, in order of importance, shall be:

1. The safety of principal;

2. Liquidity, and

3. A competitive rate of return.

GENERAL INVESTMENT GUIDELINES

Pridelines’ Finance Committee shall have primary responsibility for the administration of the

investment policy and for establishing any specific guidelines as to the mix and quality of

the investment account(s). Key issues to consider when developing investment policies

1. DELEGATION OF RESPONSIBILITY

o Should define who is responsible and their domain of responsibility.

o Should include internal groups/individuals such as the Board of Directors, Board

Treasurer, Finance Committee and possibly staff.

o Should also include external groups such as investment managers, bank custodians,

and investment consultants.

2. DETERMINING MIX AND QUALITY OF INVESTMENTS

o Determine Pridelines’ ability to assume risk (Risk Tolerance).

o Determine Pridelines’ attitude and expectations about investing (Risk Preference).

o The Risk Tolerance and Risk Preference should balance to ensure long-term continuity

in the investment program.

o Establish an investment time horizon, the amount of time required an investment to

meet your objectives.

o Any investment restrictions should be explicitly stated in the Policy Statement.

Investment restrictions often deal with issues related to prohibited securities, quality,

diversification requirements, or social issues.


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The amount of risk the organization is willing to assume will determine what types of

investments are available to the organization. In order to reduce the overall risk, an

organization may consider a mix of investments, which may include fixed-income

investments (low risk/lower returns) with some equity investments with higher (higher risks)

returns.

FINANCIAL PLANNING AND BUDGETING POLICY

With respect to fiscal planning and budgeting, employees and contractors responsible for

financial reporting will not jeopardize the programmatic or fiscal integrity of the organization.

Accordingly, they may not cause or allow budgeting that:

o Deviates from BOD-stated ends policies and priorities.

o Contains too little detail to enable a reasonably accurate projection of revenue and

expenses.

o Fails to separate capital and operational items or disclose planning assumptions.

o Plans the expenditure of more funds in a fiscal year than conservatively projected to

materialize in that period.

o Reduces the current cash assets to drop below a reserve amount designed by the

BOD. 90-day reserve recommendation 30-day minimum.

FINANCIAL CONTROLS AND OPERATING POLICY

GENERAL STATEMENTS

• With the respect to the actual, ongoing condition of the organization's financial

health, neither the CEO nor any other Pridelines representative may cause or allow

the development of fiscal jeopardy or loss of allocation integrity. Accordingly, no

representative may:

o Allow actual allocations to deviate materially from the BOD-approved

budget, priorities and policies.

o Indebt the organization in an amount greater than can be repaid by

unencumbered revenue within 90 days and, in no event, beyond the fiscal

year.

o Use any long-term reserves without first seeking BOD approval.

o Use any employee withholding for cash flow purposes.

o Conduct inter-fund shifting in amounts greater than can be restored to a

condition of discrete fund balances by certain, otherwise unencumbered

revenues within 90 days.

o Allows cash to drop below the amount needed to settle payroll and debts in

a timely manner.


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● Appropriate insurance for all assets will be maintained.

● Unbudgeted expenditures exceeding $25,000 require BOD approval and, if paid by

check, require two signatures on the Expenditure Request Form. A wire transfer can be

initiated by a bank account signatory, providing that the required expenditure received

BOD approval. Purchases exceeding $25,000 cannot be fragmented or reduced into

components to avoid bid or approval processes.

• In no circumstance will:

o Invoices be paid without authorized signatures;

o Blank checks be signed in advance;

o Checks be made out to “cash,” “bearer,” “petty cash,” etc.;

o Checks be prepared on verbal authorization unless approved by the CEO and

documented in writing.

o Pridelines’ stamps are used for personal mailings.

ACCOUNTS PAYABLE

• All invoices will be processed in the accounting system within 10 days of receipt, as

indicated by the date-received stamp placed on the envelope upon arrival at

Pridelines.

• The CEO, or their designee in accordance with written terms approved by the CEO and

agreeable to both Pridelines and the vendor, settles invoices for which payment

amounts are disputed.

ACCOUNTS RECEIVABLE

• All rates for services and prices are researched by CFO and approved by CEO.

• Center invoice terms are net 15 days, meaning that the balance is due 15 days after the

date of the invoice.

• Pridelines charges $50 for all returned checks.

• The CFO, with the CEO’s written authority, discharges all accounts receivable unpaid by

December 31 of the new fiscal year in consultation with the audit firm.

• The CFO enters all billings and invoices into QuickBooks no later than ten (10) days after

the services are rendered.

• Working together, the CFO or their business office representative, creates and mails

(electronically or by postal service) invoices within ten (10) days of recording.

• All receivable records are maintained in a locked file cabinet.

• The CFO’s business office representative invoices 30-day aged accounts within 45 days.

They issue the final invoice for 60 day-aged accounts within 90 days.

• To complete processing of accounts receivable, the CFO, and CEO follows the

appropriate steps as stipulated in the Deposit of Funds procedures.

• The CFO initiates collection procedures on all invoices older than 30 days at the direction

of the CEO.


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ANNUAL MEETING CHECKLIST

During each annual meeting, the following procedures will be performed.

• The Board of Directors shall approve new signers to each bank account.

• The Board of Directors shall approve any new and necessary bank accounts.

• As required, new signers shall complete the appropriate signature card and

corporate resolutions.

• Name, address and telephone directory of new Board of Directors and officers will be

obtained for all staff and BOD members.

• A review of the current operating procedures should be made by the Finance

Committee chairperson and treasurer and reaffirmed or revised.

• 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.

BAD DEBT

Recognizing that not all pledges or payment promises may be honored, Pridelines will plan for

this eventuality during its budget process and implement a line item with a 5 percent

allowance for bad debt against anticipated receivables. General guidelines for bad debt are:

• The CEO must approve all write-offs.

• The CFO only implements write-offs only after procedures have been followed and all

audit trail paperwork secured.

• Records will be maintained of all vendors, sponsors and donors which have been

involved in a write-off experience. Future receivables from an entity that has a write-

off in its history with Pridelines will only be recorded after heightened scrutiny on the

feasibility of collection.

The bad debt process will adhere to the following guidelines:

• Utilizing the aging report provided to the BOD, the CEO, CFO and Director of

Development (DD) will examine all receivables and, for those 30 or more days

delinquent, initiate collection efforts.

• For those debts 90 or more days delinquent, determine the collectability of each

past-due receivable. If the receipt is 90 or more days past due and deemed

uncollectible, the CEO will initiate the paperwork to write off the receivable.

• If the debt is deemed collectible, the DD or CEO will continue collection efforts until

the debt is deemed uncollectible.

BANK AND OTHER FINANCIAL ACCOUNTS


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• The BOD Chair, BOD Treasurer, CEO and the COO are signatories on all Center bank

accounts.

• The CEO, upon approval and signature authority of a designated BOD member,

opens and closes all bank and other corporate financial accounts (e.g. credit,

certificates of deposits), in Federal Deposit Insurance Corporation (FDIC) secure bank

accounts. All cash accounts owned by Pridelines will be held in financial institutions,

which are federally insured and have received a favorable Community Reinvestment

Act (CRA) rating.

• The CEO has signature authority on all accounts. In the absence of a CEO, the COO

or the Chair of the BOD will assume signature authority for the organization. The

Treasurer, Secretary, or other BOD designated BOD members may also have

signature authority on the operational (checking) account, as well as other financial

instruments.

• The CEO has the authority to withdraw and transfer funds for organizational purposes.

The COO, CFO or their business office representative, BOD members with check

signing authority, and the DD have the authority to deposit funds.

• Bank and other corporate financial information (e.g. rules, and regulations, account

numbers) are retained, maintained, and updated by the CFO.

• Each month, the CFO reconciles all bank and savings account statements to

QuickBooks.

• Bank statements are promptly reconciled on a monthly basis, including accounting

for any outstanding or lost checks.

• The CFO is responsible for all blank checks. A limited number of blank checks for

emergency purposes will be retained by the CEO and remained in a locked file

cabinet.

• The Board of Directors must approve any loans or lines of credit, and a BOD officer

must sign all documentation securing and loans or lines of credit. The CEO and CFO

are responsible for monitoring the repayment of any approved lines of credit.

• All disbursements, except petty cash, are made by check and are accompanied by

substantiating documentation.

BOOKS OF ACCOUNT AND OTHER FINANCIAL RECORDS

• Pridelines maintains the Uniform Chart of Accounts (UCOA) that is prepared by the

designated individual and reviewed by the CEO (or their designee) annually.

• A computerized ledger accounting system will be maintained.

• The CFO is responsible for inputting the financial data into the computer for

generating financial reports. Only the CFO, their business office representative, and

CEO will have access to the password required to log onto the system.

• Pridelines will utilize a double-entry system for accounting for all funds.

• Pridelines maintains monthly cash flow projections, a general ledger, accounts

receivable and payable, cash receipt and disbursements and other financial reports

(e.g. statement of financial condition, revenue and expense statements) as directed


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by the CEO. These reports, prepared monthly by CFO and reviewed by the CEO,

should reflect actual income and expenditures to the approved annual budget.

• Pridelines will not unnecessarily expose the organization, its BOD or staff to claims of

liability.

• Pridelines does not receive, process or disburse funds under controls insufficient to

meet audit standards.

• All funds received by Pridelines for each project will be segregated into separate

project accounts in the general ledger to avoid any possibility of commingling

project monies with general operating funds.

• Adequate documentation will be maintained for all general journal entries.

• Detailed printouts of cash receipts and cash disbursements are to be obtained. The

CFO is responsible for comparing the detailed printouts to source documents for

accuracy.

• All subsidiary account balances are reconciled to the control accounts monthly.

• A trial balance on the general ledger totals should be obtained and compared to

detailed financial reports for accuracy of balances.

• Correction fluid should never be used in preparing any accounting or payroll

documents.

• Separate files will be maintained for each bank account and each vendor. Files will

be kept separately for each fiscal year.

• Any donated item, including volunteer time, with a value exceeding $50 will be

recorded in the books and records of Pridelines.

• A proper filing system will be maintained for all financial records.

• All receipts will be deposited intact. No disbursements will be made from cash or

check receipts prior to deposit.

• Voided checks will have “VOID” boldly written on the check, the signature portion

removed and kept by the CFO.

• Documents on all securities and fixed assets will be kept in a locked fireproof file.

Inventory records will contain a description, serial numbers, date of purchase or

receipt, valuation and date of valuation.

• The CFO (or Treasurer in the absence of a CFO) shall present the CEO with complete

financial statements (monthly, year-to-date with comparison to budget with a

balance sheet and statement of revenues and expenses for each restricted funding

project) no later than 15th day of each month. After review, adjusted financials will be

presented to the Finance Committee for approval. The Finance Committee will

provide the approved financial statements to the board at each monthly board

meeting.

• All personnel and contracting services will be documented and recorded.

CAPITAL EXPENDITURES


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For all major expenditures such as computers, furniture, audit services, printing services, etc.,

three (3) 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.

COMPUTER SYSTEM BACKUP PROCEDURES

o The CEO is responsible for securing the financial accounting software and providing

access to the bookkeeper, BOD Chair, and BOD Treasurer. Selected software must

include daily data backup system or service.

o The Office Manager (OF) is responsible for securing and monitoring an online data

backup system or service of all Center computer systems and servers. Data backups

should occur no less than on a weekly basis.

CONSULTANTS

o Consideration will be made of internal capabilities to accomplish services before

contracting with a consultant.

o Contracts with consultants will include rate and schedule of pay, deliverables, time

frame, work plan, and other information as deemed necessary by the CEO, COO, CFO,

or the Board of Directors. Justification for payment should be submitted to file. For

example, if Joe Smith hired a writer to create a publication, a copy of the final version

should be included in the file.

o Pridelines will prepare a 1099 return form for all consultants at the end of the year end.

CONTRACTS/LEASES

o The CEO will review all contracts and leases, retain copies on file and provide a copy of

all executed contracts and leases to the CFO.

o The CEO may sign agreements within Pridelines’ approved annual budget and new

agreements under $25,000.

o Agreements exceeding $25,000 that were not included in Pridelines’ approved budget

must be approved by the Board of Directors. Prior to submission to the BOD, the CEO will

review said agreement.

o The CEO will retain copies of all contracts and leases and when appropriate, provide a

copy to the responsible department head.

CREDIT/DEBIT CARDS


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o Only the CEO and COO are allowed to have corporate credit cards in their name for

approved, business-related travel expenses, supplies, materials, equipment or other

expenses authorized by the CEO. The CEO may authorize other officers and directors to

have corporate credit cards upon board approval for approved, business-related travel

expenses, supplies, materials, equipment or other expenses authorized by the CEO. The

CEO, upon board approval, may retain a debit card for emergency situations.

o Cardholders must submit detailed receipts and expense reports to the CEO within five (5)

days of the closing of each month.

o Employees granted permission to make a purchase using an officer or director’s credit

card must submit detailed receipts within 48 business hours of making the expenditure.

o Staff members are required to sign Pridelines’ release form, agreeing to use the card for

approved business purposes only, which stipulates that any charges not authorized are

the responsibility of the cardholder.

o Personal use of Center debit or credit cards is not permitted.

o Each card is the property of Pridelines and must be surrendered upon termination of

employment or disassociation from Pridelines.

o Charges made by the CEO will be reviewed and approved monthly by the Treasurer

and/or the BOD Chair. If charges are not deemed reasonable and necessary expenses

for the organization, the CEO may be asked to reimburse the organization for such

charges.

o Credit card statements are to be paid off upon receipt of each month’s invoice.

Carrying debt forward to the next month requires BOD approval.

o Unauthorized use of the debit/credit card includes:

o Personal or non-business expenditures of any kind.

o Expenditures not been properly authorized.

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

o Center budget and/or policies

o Federal, state, or local laws or regulations

o Grant conditions or policies of the entities from which Pridelines receives funds.

FINANCIAL WAIVERS FOR COMPLIMENTARY ADMISSIONS

Pridelines produces numerous events for educational, social and fundraising purposes.

Pridelines’ audiences are diverse, and economic diversity is not an exception. When

planning events, the event organizers should plan to offer access to educational and

community forums at no cost or open donation format. For those events that require an

admission fee, each planning committee or event organizer preparing the event’s

budget will determine how many – based on the event’s per-head cost – complimentary

and/or discounted tickets can be offered to Center supporters or community members.

Of the rationale, the committee should consider who could benefit from the event but

cannot afford the admission price and the board-approved budget.


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After setting the exact number of complementary and/or discounted admissions to be

offered, the event planning committee will determine the ideal mode for distribution and

how to account for all granted admissions.

FISCAL AGENT STATUS

o The Finance Committee must authorize any fiscal sponsorship agreements, which are

then approved by the Board of Directors.

o All fiscal sponsorships will begin with a written agreement, stating the terms of the

relationship and the purpose for the use of the funds.

o Fiscal sponsorships will be limited to projects for which Pridelines’ BOD determines that the

project is charitable and is consistent with Pridelines’ mission and that no real or

perceived conflicts of interest exist with BOD or Finance Committee members.

o Pridelines will include a 10 percent administration fee to cover administration of the

temporarily restricted fund.

o Sponsored projects are required to submit full and complete reports on specified dates.

Reports will be circulated to the entire Board of Directors. Reports must include:

o Detailed expenses using budget categories for original grant;

o Program accomplishments and activities;

o Lobbying expenditures;

o Amount of remaining funds.

o The Finance Committee, prior to implementation, must approve any changes in the

purpose for which the grant funds are spent in writing.

o Pridelines retains the right, if sponsored project breaches the fiscal sponsorship

agreement, or if a sponsored project jeopardizes Pridelines’ legal or tax status, to

withhold, withdraw or demand immediate return of grant funds.

o Pridelines will file appropriate tax forms for the sponsored projects, including IRS Form

1099.

FIXED ASSET MANAGEMENT

All capital items, which have a cost greater than $1000, will be capitalized and depreciated.

A permanent property log is to be maintained by the CFO and accessible to the CEO and CC

for all fixed assets purchased by Pridelines. The log should contain the following information:

o Date of purchase

o Description of item purchased received by donation or purchased

o Cost or fair market value on the date receipt donor or funding source, if applicable

o Funding source restrictions on use or disposition

o Identification/serial number (if appropriate)

o Depreciation period

o Vendor name and address

o Warranty period


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o Inventory tag number (all fixed assets should be labeled with a unique identifying

number)

o Check number or electronic receipt used to pay for the equipment

At least annually, the CFO and OM will conduct a physical inspection and inventory should

be taken of all Center fixed assets and reconciled to the general ledger balances.

Adjustments for dispositions should be made.

The CEO and CFO should be informed, in writing, via an interoffice memorandum of any

material changes in the status of property and equipment. This memorandum must include

changes in location, sale of, scrapping of and/or obsolescence of items and any purchase

or sale of real estate.

As part of the annual audit process, the CFO will update and record incurred depreciation

into Pridelines’ accounting system (e.g., QuickBooks).

GRANT COMPLIANCE

Grant applications exceeding $100,000 must have approval of the Finance Committee before

submission.

When a grant is received or renewed, a copy of the executed grant must be forwarded to the

CEO and COO. The COO shall set up a permanent file for the grant and maintain the contract

along with any other financial correspondence regarding the grant. The COO shall supply a

copy of the executed agreement to the corresponding program director and CFO, along with

any new account codes that are needed.

It is the responsibility of the CEO and COO to review the grant contract and extract any fiscal

items that must be complied with by Pridelines.

It is Center policy to adhere to any restrictions imposed by its funders, both governmental and

private. Therefore, Center employees are expected to bring to the attention of management

any instances of non-compliance.

When Pridelines is expending federal funds, prior written approval from the funder agency is

required for the purchase of:

o Capital expenditures for land or buildings

o Insurance and indemnification expenses

o Pre-award costs

o Public information service costs

o Publication and printing costs

o Rearrangement and alteration costs

Pridelines will never request federal funds to pay for the following costs:

o Bad debt expense


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o Contingencies

o Contributions or donations to others

o Entertainment expenses

o Fines and penalties

o Interest, fundraising and other financial costs

Federal funds received in advance will be deposited into a federally insured bank account.

Any interest earned from those monies will be submitted to the funder agency. It is the Center's

current policy to receive federal funds only on a reimbursement basis unless otherwise

mandated by the grant award.

INSURANCE

o Reasonable, adequate coverage will be maintained to safeguard the assets of

Pridelines. Such coverage will include property and liability/worker’s compensation;

employee dishonesty; directors and officers’ coverage; volunteer coverage; sexual

misconduct; event liability and cancellation policies and other insurance deemed

necessary or required by grant awards or the BOD.

o The CEO will review insurance policies before renewal and submit recommendations to

the Finance Committee for approval.

o The Board of Directors must approve any cancellation of or creation of a new policy, or

a renewal that exceeds budgeted amounts.

o The CEO must retain copies of all policies on file and maintain an insurance register.

o Pridelines will maintain blanket employee dishonesty coverage in the amount of $25,000.

HUMAN RESOURCES

As quality personnel are essential to Pridelines’ ability to achieve its mission, the organization’s

Human Resources Recruitment Procedures guide processes for the creation, screening and

selection of personnel. Please consult this manual for details. New positions are rooted in

Pridelines’ fiscal core and, before recruitment may begin, the following items will be secured:

NEW POSITION:

o Create a job description that is reviewed and approved by the appropriate

supervisor(s), CEO and Finance Committee. All job descriptions will include:

o Center mission statement

o Equality Opportunity/Non-Discrimination statement

o Physical requirements for the position


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o A resolution approved by the Finance Committee to create the position by the BOD,

which will include the position title, description of duties and qualifications,

employment status, rate of pay and revenue source.

o Addition of the payroll line items (wages, payroll taxes, workers compensation, health

benefits) to the organization’s annual budget and approved by the BOD.

EXISTING POSITION/VACANCY:

o Create a job description that is reviewed and approved by the appropriate

supervisor(s), CEO and Finance Committee. All job descriptions will include:

o Center mission statement

o Equality Opportunity/Non-Discrimination statement

o Physical requirements for the position

PAYROLL CONTROLS

o Personnel files are to be maintained in the CEOs office for all employees. Changes in

payroll shall be noted in writing and signed by the employee, their director supervisor

and the CEO.

o All FICA and other state and federal tax reports and deductions will be maintained

and managed by the CFO.

o Center pay rates will equal or surpass the federal minimum wage.

o Correction fluid should never be used in preparing any accounting or payroll

documents.

o Mileage shall not be paid for travel to and from a staff member’s residence.

o Pridelines will utilize the standard mileage rate as established by the Internal Revenue

Service or the State of Florida.

o Pridelines will only reimburse out-of-pocket expenses only when supporting

documentation has been presented for approved costs incurred.

o Employee reimbursements must be submitted within 30 days of which they were

incurred.

o Expense reports will be maintained which will disclose the nature of expenses, and

the dates incurred.

o Per the direction of the employee, the CEO is authorized to deduct from an

employee's payroll check benefits expenses. The request for the deduction is kept in

the employee's personnel file. (i.e., retirement deductions, etc.).

o The Board of Directors sets the CEO’s salary. The CEO in accordance with the BOD-

approved annual budget authorizes all other employee compensations packages.

o Accrued annual leave is shown on Pridelines’ financial statements as a liability and in

accordance with policies outlined in Pridelines personnel policies.

o Each employee prepares and submits a Leave Request Form to the employee’s

immediate supervisor and CEO for approval. Before approval, the CEO will confirm

that the requested time is available in that employee’s bank of personal time off.


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FISCAL OPERATIONS PROCEDURES

INTRODUCTION

This manual has been prepared to document the internal accounting procedures for Pridelines

Youth Services, Inc. d.b.a. Pridelines. Its purpose is to ensure that assets are safeguarded, that

financial statements are in conformity with generally accepted accounting principles (GAAP),

and that finances are managed with responsible stewardship.

All personnel with a role in the management of Pridelines’ fiscal operations are expected to

uphold the policies in this manual. Pridelines intends this accounting manual to serve as our

commitment to proper, accurate financial management and reporting.

SEPARATION OF DUTIES

The following is a snapshot of the duties assigned to various Center roles:

BOARD OF DIRECTORS (BOD)

o Approves the CEO to sign select contracts

o Reviews bank reconciliations

o Approves monthly financial statements

o Approves annual budget and any line item change exceeding 10 percent of the

budgeted line item

CHIEF FINANCIAL OFFICER (CFO)

o Record accounts receivable entries

o Write checks

o Completes Deposit Slips

o Record general ledger entries

o Review vendor invoices

o Record credits/debits in accounting system

o Prepares monthly and year-end financial statements

o Processes payroll

o Reconcile bank statements

o Prepares state and federal tax filings


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CHIEF EXECUTIVE OFFICER (CEO)

o Signs checks

o Performs interbank transfers

o Signs contracts

o Receives, opens and reviews bank statements

o Approves invoices

o Authorizes disbursement requests

o Signs timesheets

o Processes vendor invoices

CHIEF OPERATING OFFICER (COO)

o Signs checks

ALL DEPARTMENT DIRECTORS

o Completes expenditure requests

o Reviews invoices

o Signs respective employees’ timesheets

DEVELOPMENT COORDINATOR (DC)

o Records contributions

o Processes acknowledgements

o Reconciles donor database vs. incoming receipts log

OFFICE MANAGER (OM)

o Logs all incoming receipts

o Logs all incoming invoices

o Retains select contracts

o Manages petty cash fund

o Mails select checks

FRONT DESK STAFF

o Receives donations

o Opens all incoming invoices

o Mails select checks


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DISBURSEMENT PROCEDURES

A few highlights regarding Center financial policy for disbursements include:

o Unbudgeted expenditures exceeding $25,000 require BOD approval and if paid by

check, two signatures on the Expenditure Request Form. A wire transfer can be

initiated by a bank account signatory, providing that the required expenditure

received BOD approval. Purchases exceeding $25,000 cannot be fragmented or

reduced into components to avoid bid or approval processes.

o Blank checks may never be signed in advance.

o No checks may be written to “cash” or “bearer.” Except when replenishing the Petty

Cash fund.

o All disbursements, except petty cash, are made by check and are accompanied by

substantiating documentation.

o Refer to Petty Cash procedures for information on petty cash handling.

o In certain instances, the CEO can elect to make purchases via debit/credit card and

forgo the check-cutting process. These procedures are detailed below.

CHECKS

Before committing to or making an expenditure, staff should complete an Expenditure

Request Form and secure signature from, if applicable, department head and the CEO. The

CEO will provide signed approval and retain a copy of the expenditures file.

o Incoming invoices will be logged by OM in the invoices received log and delivered to

the CEO.

o Procedures for disbursement will be as follows:

o The CFO shall:

▪ Attach the original invoice to the corresponding expenditure request in the

expenditures file;

▪ Forward the copy to the requesting department head, who will:

▪ Check the validity of the invoice against proposals/bids, etc. and work

accomplished and/or delivered,

▪ Prepare a check request,

▪ Provide to the CEO.

o Assign account codes,

o Record the date submitted in the invoices received log the date submitted,

o CEO signs the check request,

o Verify availability of funds,


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o Scan all check requests with their invoice,

o Record all requests into the check log with the date, payee, amount, and

account code.

o File the originals in the approved invoices file.

• THE CFO SHALL:

o At least weekly prepare disbursements. All disbursements are to be made by

check unless the item is considered a petty cash item.

o Review all check requests and forward any questions or concerns about the

amounts to the CEO prior to running any disbursements.

o Record all transactions in the financial accounting system and verify availability

of funds.

o Print the checks from the computer system. The checks should be attached to

the invoice, and other supporting documentation, being paid and submit to the

CEO or any other approved person with check signing authority for signature.

● THE CEO SHALL:

o Sign each check after verifying the amount of the check request. This approval is

to ensure the account, and grant/project is charged to the correct expense and

line item. CEO may only sign checks made to pay invoices in excess of $25,000

with a BOD officer signature on the Expenditures Request Form.

o Separate bottom portion of the check and reattach to invoice with the

remaining copy of the signed check.

o Address envelopes or insert checks into payment envelopes and affix provided

stamp. If the CEO elects to delegate this process to a volunteer or staff member,

the CEO will provide the designee with envelopes and stamps with instructions to

the designee to return all paperwork along with the check stub to the CEO.

o Provide to CFO to file all returned documentation by date order and, if

necessary, file supporting documentation in appropriate vendor files.

● THE CFO SHALL:

o Make two (2) copies of all sign checks, one for the official records and a second

for grant reporting purposes.

o File all returned documentation by date order and, if necessary, file supporting

documentation in appropriate vendor files.

o Conduct a monthly review of the invoice log to determine if any outstanding

invoices remain unpaid. If so, the CFO shall alert the CEO who will investigate the

nonpayment of these invoices with the responsible staff member.

o Retain with appropriate backup paperwork all processed payments and voided

checks.


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DEBIT OR CREDIT CARDS

For immediate or on-line purchases, the CEO may elect to make expenditures via

Pridelines debit or credit card. Procedures for such a disbursement are as follows:

● Before committing to or making an expenditure, staff should complete an Expenditure

Request Form and secure signature from, if applicable, department head and the

CEO and, upon submitting, request the transaction occur via debit/credit card.

● The CEO shall:

o Provide signed approval, alert the requestor that the expenditure will be made

via debit/credit card and retain a copy in the expenditures file.

o Complete the desired transaction via the Internet or phone.

o Print the receipt, attach it to the expenditure request and file the package in a

debit/credit card file for processing with the CFO at the month’s end.

o Within three (3) days of the month’s end, the CEO will:

o Prepare a debit/credit card transaction report for each card. Report shall include:

▪ Date of the transaction

▪ Payee name

▪ Description of the item or service

▪ Amount

▪ Account codes to which the transaction should be recorded.

o Scan the transaction report with all receipts and send it to the CFO and, for cards

in the CEO’s possession, the BOD Treasurer.

o File the hard copy in date order in that quarter’s hard file.

● The CFO shall within three (3) days of receipt of the transaction report:

o Verify all debit/credit card transactions against the bank or credit card

statement. Any discrepancies are to be brought to the CEO’s attention.

o Enter all transactions from the transaction report into QuickBooks.

● The BOD Treasurer will review the monthly expense report on any cards in the CEO’s

possession and address any discrepancies or questions.


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FINANCIAL REPORTING

BUDGETS

● Pridelines’ annual budget will be processed in the following manner:

o Ninety days prior to the beginning of the fiscal year, Center department directors

develop preliminary program budgets and work plans in accordance with

Pridelines’ strategic plan or other BOD-approved goals.

o Sixty days prior to a new fiscal year, the CEO, COO, CFO and department

directors develop and prepare a preliminary annual operational budget for

submission to the Finance Committee.

o The CEO reviews and approves the preliminary budget and work plans. They

prepare planning assumptions and submit the preliminary budget with

assumptions to the Finance Committee for review in October.

o The Finance Committee chair, working with the CFO and CEO, presents the

preliminary budget to the Board of Directors for comments prior to the November

board meeting. The CEO presents the planning assumptions.

o The Treasurer reviews the proposed annual budget and justifications with the CEO

prior to the November board meeting and presents the proposed budget to the

Board of Directors for adoption at the November board meeting. The CEO also

presents their fiscal year work plan for fundraising and goals for the year based on

strategic plans, visions or any other document the BOD has approved to guide

the organization.

o After the BOD approves the annual budget, the CEO manages the annual

budget effective January 1st of each fiscal year. They receive monthly financial

reports and statements from the CFO, which are reviewed and presented to the

Finance Committee for approval, then submission to the full BOD.

o Detailed Financial Reports are provided to the Board of Directors at each BOD

meeting. Reference explanations for any and all budget variances of 10 percent

or more are contained in these reports.

o Budgets are reviewed mid-year July and are adjusted as necessary to reflect

changing conditions.

o Pridelines will include a 5 percent allowance for bad debt against any

anticipated receivables.

● The Board of Directors must approve any proposed changes should they exceed $15,000

or 10 percent of the line item, whichever is greater.

MONTHLY REPORTS:

The CFO should prepare a set of monthly financial reports each month. The process for

review and approval are as follows:


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● Not less than ten (10) days prior to BOD meeting: Proof, including transaction details,

of all statements to the CEO for review with the DD. Any corrections must be supplied

to CFO within 48 hours.

● Not less than seven (7) days prior to BOD meeting: Revised statements forwarded to

Finance Committee for approval. Any corrections must be supplied to CFO within 24

hours.

The reports should include the following:

● Balance sheet and a statement of income and expenses for each department

(operating, project);

● Consolidated balance sheet and consolidated income and expense report

which show all departments combined;

● Budget-to-actual report for all accounts included in the annual operating

budget;

● List of deferred and receivable funds, and a cash flow projection;

● Transaction detail;

● Spend-down summary for all restricted grants.

Not less than five (5) days prior to the BOD meeting, revised statements as approved by the

Finance Committee to the BOD Chair for distribution to full BOD. This package for BOD

approval shall include:

● Balance sheet and a statement of income and expenses for each department

(operating, project);

● Consolidated balance sheet and consolidated income and expense report

which show all departments combined;

● Budget-to-actual report for all accounts included in the annual operating

budget;

● Spend-down summary for all restricted grants.

YEAR-END REPORT/AUDIT:

The Finance Committee between September 1 and October 15 will accept bids for an

independent auditor to conduct this review. In accordance with Center policy, at least

three proposals will be considered. The auditing process will begin on or about December 1

with the final presentation from the selected audit firm expected at the March meeting of

the Board of Directors.

GRANTS


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● The CEO must approve any grant concept before staff time can be expended on the

application.

● Any grant application, with full budget and narrative, must be provided to the CEO at

least five (5) business days prior to the due date for thorough review. It is the

responsibility of the CEO to review the grant contract and extract any fiscal items that

must be complied with by Pridelines.

● Grant Committee will track all grant leads, applications and receipts on Pridelines’

master grant tracking grid.

● Upon receiving a grant, the CEO and COO will:

o Open a hard file with a copy of the original applications, signed award and detail

of expected outcomes.

o Provide a copy of the signed award, payment/disbursement schedule and any

chart of account alterations to the CFO.

o Provide a copy of the signed award, outcomes detail and reporting schedule(s) to

the applicable department manager(s).

REVENUES PROCEDURES

Incoming receipts will be processed based upon the type of revenue.

CHECKS:

● The Office Manager receives all incoming mail and opens all envelopes not addressed

to an individual. Any check received by a staff member should be copied and returned

to the front desk staff for processing.

● Front desk staff or OM immediately stamps checks with the provided For Deposit Only

stamp and enters the receipt into the Funds Received Log, which will include:

o Date received,

o Contributor’s name,

o Type of receipt,

o Check number and

o Amount

● Front desk staff or OM will forward the envelope and its contents to the CFO.

● The CFO will prepare deposits based on volume, but not less than once a week. Checks

awaiting deposit must be secured in the safe. The deposit slip in the following manner:

o Verify all receipts against the Funds Received Log and enter into same log:

▪ Date of the deposit


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▪ Account number and account description to which the funds are to be

deposited.

o Prepare a deposit slip.

o Scan the deposit slip and all checks into an electronic file and then print the

entire deposit, with copies of all checks.

o Either the CEO or CFO will deliver the deposit to the bank and retain the

validated deposit slip from the bank.

o The validated deposit slip is attached to the printed copy of the entire deposit

and filed in chronological order according to the month received.

o After deposit, the electronic version of the entire deposit shall be forwarded to

the CFO and Development Coordinator (DC). The envelope and any other

contents are attached to the DC’s copy.

o Copies of the individual checks to the DC to be filed in alphabetical order by

donor/payee’s name. Contributions from an entity will be recorded – both in the

database and hard files – according to the entity’s name, not any individual.

CASH:

Cash revenues received at Pridelines office will be processed in the following manner:

o Two (2) Center designees, one of whom must be a staff member, should always

receive cash transactions.

o If a cash receipt is received at the front desk, front desk personnel shall call a

second staff person, preferably the CFO or DC. Upon receipt of the cash and in

the presence of the two (2) designees, a receipt from a numbered receipt book

with the donor’s name, address and phone number or e-mail will be issued to the

donor and signed by the two (2) designees. Front desk staff or the CC shall enter

the receipt into the Funds Received Log, which will include:

o Date received,

o Contributor’s name,

o Type of receipt,

o Receipt number and

o Amount

o The CC will make a copy of the receipt, place it and the cash into an envelope,

and the staff member present will provide to CFO for deposit. Should the CEO not

be immediately available, the envelope will be secured in a locked cash box

behind the Front Desk.


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Each Center event will develop unique processes for securing and documenting cash

receipts. No event committee will pay any invoices or make any reimbursements from cash

proceeds. All transactions will adhere to normal Center procedures for fiscal management.

CREDIT CARDS:

The CFO or DC is responsible for processing the receipt of funds through the credit card

processor directly into the checking account. Front desk personnel should make every

attempt to process any walk-in contribution on-line through front desk computers. Should the

donor refuse to complete an on-line transaction, the DC, CFO or OM (in that order) should

be located to record all information for processing.

Transactions should be processed not less than weekly, based on volume. The DC will

prepare and forward to the CEO and CFO a log with the:

o Date processed,

o Donor name,

o Amount and

o Corresponding account

The statement of deposits and service charges will be reconciled by the CFO.

DEPOSITS:

The CFO will prepare deposits based on volume, but not less than once a week. Checks

awaiting deposit must be secured in the safe. The deposit slip in the following manner:

o Ensure all checks are properly stamped with the “For Deposit Only” stamp.

o Enter all information into transaction logs that includes:

▪ Date of the deposit

▪ Account number and account description to which the funds are to be

deposited.

o Prepare a deposit cover sheet and bank deposit slip.

o Scan the deposit slip and all checks into an electronic file and then print the entire

deposit, with copies of all checks.

o Either the CFO or business office representative will deliver the deposit to the bank

and retain the validated deposit slip from the bank.

o The validated deposit slip is attached to the printed copy of the entire deposit and

filed in chronological order according to the month received.


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o After deposit, the electronic copy of the entire deposit shall be forwarded to the

CEO.

o Copies of the individual checks to the DC to be filed in alphabetical order by

donor/payee’s name.

o The CFO records all deposits into QuickBooks and reconciles all electronic deposits

against the bank and DD’s statements.

FUNDS RECEIVED BY WIRE TRANSFER:

The CEO, BOD Chair or BOD Treasurer will request wire transfers. This request will be prepared

by the CEO and signed by the BOD Chair or BOD Treasurer, with notification to the CFO. The

CFO will monitor the transfer of funds and maintain the appropriate records of the

transaction.

As soon as the funds are credited to the account, the bank should send a credit memo to

the CEO and CFO. The CFO should reconcile these credit memos to the total cash received

as part of the monthly reporting process.

INTER-FUND TRANSFERS:

No single account should contain more than $100,000, or the amount limit of which the FDIC

will insure. The CFO should monitor the balance in the checking account and, should a transfer

be needed, prepare a transfer memo for signature by the CEO or, in the CEO’s absence, the

BOD Chair or BOD Treasurer.

ACKNOWLEDGEMENTS:

The DC will:

● Record all contributions into the donor database within five (five) days of receipt from

deposit slips and credit card reports.

● Maintain hard files of check contributions from donors in the alphabetical file system.

● Generate acknowledgement letters within 24 business hours of donation receipt that

identifies Pridelines as the recipient, the donation date, amount and, if applicable,

purpose. Electronic copies of all acknowledgements will be retained and documented in

the donor database.

● Research any omissions as noted upon reconciliation of the receipt’s logs against

QuickBooks by the CFO.

● Reconcile the donor database with accounting records to ensure all donations have

been recorded at least monthly.

● Ensure a book of numbered, duplicate receipts is maintained at the front desk.


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RECEIPT BOOK:

At least monthly, the DC will retrieve the receipt book from the front desk and log all

transactions in the receipt log.

PAYROLL

PERSONNEL:

● The CEO is charged with the responsibility of maintaining personnel files on staff persons

and contractors.

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

o Employment application or resume

o A record of background investigation

o Date of employment

o Position, pay rates and changes therein

o Authorization of payroll deductions

o Earnings records for non-active employees

o W-4 Form, withholding authorization

o I-9 Immigration Form

o Termination data, when applicable

● All personnel records are to be kept locked in a locking file cabinet in the CEO’s office.

Access to these files other than by the CEO, COO, BOD officers or the auditor should be

requested in writing to the CEO.

● Employees may review their personnel files according to the procedures described in

Pridelines’ personnel handbook.

PAYROLL PREPARATION AND TIMEKEEPING:

● Timesheets are to be prepared by all staff persons and submitted bi-weekly on the 15th

and last day of each month. Time should be input on a daily basis and submitted as an

Excel file.

● At no time may a supervisor alter or change a signed timesheet.

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

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


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● All approved timesheets should be submitted to the CEO the designated supervisor who

will verify the hours worked against his/her record.

● The CEO processes the time and reports the information to the CFO for processing and

submission to the payroll service bureau. The information reported should include:

o Hours worked, by cost center

o Changes in pay rates or employment status

o Vacation, sick or personal hours used and earned

● The CFO and CEO should review the payroll summary page of the payroll service report

for inappropriate payees or unusual hours.

● Paychecks are transmitted via direct transfer approximately three (3) to six (6) days after

the close of the payroll period.

TRAVEL AND EXPENSE REIMBURSEMENT PROCEDURES

● Pridelines reimburses employees for travel and conference/meeting expenses in

accordance with policies outlined in Pridelines employee handbook and other policy

memoranda. These expenses are mileage or transportation, parking fees, meal cost, and

other charges. Unless otherwise approved, the most economical means of travel is

standard and in accordance with grant requirements.

● The CEO must pre-approve all travel by the staff. The CEO may make reservations

guaranteed with Pridelines debit card and to, when possible, pay for room and taxes in

advance. Employees traveling must utilize their personal card for incidentals and when

room/tax is not eligible for pre-payment and then submit a reimbursement request.

● If a hotel stay is required, the Center will make a reservation using the organization's

debit/credit card.

● All original receipts are due to the Office Manager to be attached to the original funds

request form ten (10) business days after returning from the trip.

● To receive a reimbursement for approved expenses that are over the amount of the

travel advance, the employee should fill out and submit an expense reimbursement

form.

● The CFO and CEO follow appropriate steps as stipulated under Disbursements.

● If an individual employee or BOD member has incurred reimbursable expenditures for the

organization, the individual should file a request for reimbursement form within 15

business days of expense.

● The request for reimbursement is given to the appropriate department manager, who

submits the request to the CEO for approval. If the CEO is submitting the request for

reimbursement, the Treasurer of the BOD reviews the request for approval prior to the

check being written.


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● No travel cash advances will be made except under special conditions and preapproved

by the CEO in accordance with the BOD-approved budget. Reimbursements will be paid

upon full expense reporting using the official Center form within the normal disbursement

schedule.

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

authorizations, original receipts, individuals paid for, nature of business, etc., before the

expense will be considered authorized and will be approved for reimbursement. See

details below.

o Lodging: Provide an itemized receipt from the hotel detailing every charge and

the name of the person(s) for whom lodging was provided.

o Meals/Entertainment: Provide a receipt showing separately the cost for

food/beverage and gratuities and including the names of every person for whom

food or beverage was provided and the specific business purpose, which was

furthered by the expenditure. For example, Luncheon Meeting with Jane Doe,

Chair of the Miami-Dade County Economic Development Corporation, to finalize

the speakers and program for Youth Leadership Summit.

o 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. For example, Round trip coach flight to Las

Vegas for annual CenterLink conference.

● The purchase of airline tickets and other authorized business expenditures may be made

by other employees or BOD members using the corporate debit/credit card. In every case

of debit/credit card usage, the individual making the charge will be held personally

responsible in the event that the charge is deemed personal or unauthorized. Authorized

uses of the debit/credit card include:

o Airline or rail tickets (at coach class or lower rates) for properly authorized business

trips.

o Lodging and meal charges that do not exceed the authorized reimbursement

rate for persons traveling on official Center business.

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

business trips

o Duly authorized expenditures for which a debit/credit card is the only allowed

method of payment (such as monthly internet access).

o Business telephone calls.

o Duly authorized entertainment at a rate consistent with the employee’s level of

responsibility within, or on behalf of Pridelines and within the limits of the approved

budget.

● When renting a vehicle with a Center debit or credit card, insurance provided by the

rental agency must be secured to avoid, in the case of an accident, Pridelines’ account

being charged for damages or lost rental income. If renting a vehicle on a personal card


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and forgoing the insurance option, Pridelines will not reimburse the representative for any

accident-related expenses.

PETTY CASH PROCEDURES

● The Office Manager manages the petty cash fund, which is to be kept in a locked cash

box or cash box in a locked file cabinet. Said box should remain secured at all times

when the FD is not dispersing or replenishing funds.

● The petty cash fund shall never exceed $500.

● Petty cash disbursements are limited to $50 unless approved by the CEO.

● No advances to paid or volunteer employees for the petty cash fund are allowed.

● The petty cash fund shall be operated on an imprest basis. This means that at the end of

each month or when the fund is below $25, the Office Manager shall total out the

expenses made, identify those expenses by general ledger account number and submit

a check request to replenish the fund back to $500. The check request should

individually list the various expense accounts being charged and the amount along with

any accompanying receipts. The check request will be made payable to the person

who is cashing the check with “Petty Cash Replenishment” written in the Memo field and

released to the Office Manager.

● Any employee receiving petty cash must complete a petty cash voucher. The petty

cash voucher, along with any receipts, will be retained in the locked petty cash box until

the Office Manager completes the scheduled reconciliation. The petty cash voucher

must list:

o The amount received;

o The purpose for which the cash is needed;

o The date of the use and

o Receipt(s) documenting the good/s services purchased;

o Signatures of both the FD and the person receiving the petty cash disbursement.

● The CEO or BOD Chair/Treasurer should conduct an unscheduled review of the fund at

least semi-annually. When this is done, they should count, while the Office 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 $500. Any discrepancies should be discussed

and resolved immediately.

● Pridelines will not cash any checks of any kind through the petty cash fund.

PURCHASES

TO PROMPT A PURCHASE:

● 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


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order form or other documentation to the CEO for approval. If the check is made out to

the CEO, they cannot approve the check request voucher.

● Approved check requests should be sent to the CEO for payment.

● In the absence of backup materials, receipts for the purchase must be provided to the

CFO for attachment to the check request within two weeks from the check date.

● All processes list under Disbursements will be followed.

RECONCILIATIONS

CASH FLOW:

Pridelines 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 BOD Chair and BOD Treasurer should be notified immediately.

BANK RECONCILIATIONS:

● Bank statements are to be received unopened by the CEO. 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 CEO

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 CFO

reconcile the bank accounts using the approved reconciliation form.

● The CFO should reconcile each account promptly upon receipt of the bank statements.

All accounts will be reconciled no later than seven (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 by the bookkeeper.

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

procedures:

o Checks which have been outstanding

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

statements with the cash receipts journal.

o A comparison of inter-organization bank transfers to be certain that both sides of

the transactions have been recorded on the books.

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

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

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

number, payee, and amount.


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o An accounting for the sequence of checks both from month to month and within

a month.

o An examination of canceled checks for authorized signatures, irregular

endorsements, and alterations.

o A review and proper mutilation of the void check.

o Investigate and write off for more than six months.

● Completed bank reconciliations should be reviewed, signed and dated by the CEO. The

CEO will scan the signed reconciliation, save a copy in their files, forward the scan to the

BOD Finance Committee chairperson or BOD Treasurer and return the original to the

bookkeeper to retain in Pridelines’ permanent file.

● The CFO, upon receipt of the completed bank reconciliations, prepares any general

ledger adjustments.

RECONCILIATIONS OF OTHER GENERAL LEDGER ACCOUNTS:

EACH MONTH:

● The CEO and CFO shall review the ending balance shown on balance sheet accounts

such as the cash accounts, accounts receivable, accounts payable and deferred

revenue.

● The BOD Treasurer and Finance Committee chairperson should review the bank

reconciliations.

ACCOUNTS:

● Assets: These accounts will include cash, petty cash, prepaids, property, equipment,

investment accounts, endowment funds and fixtures, security deposits and intangible

assets.

o Cash - The balances in cash accounts should agree with the balances shown

on the bank reconciliations for each month.

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

amount of all petty cash funds. The current amount equals $500.

o Prepaids - The amounts in these accounts should equal advance payments

paid to vendors at the end of the accounting period.

o 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.

o Investment Accounts and Endowment Funds – Amounts should match

account statement totals.


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o 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.

● Liabilities: These accounts are described as accounts payable, payroll tax liabilities,

loans and mortgages payable, and amounts due to others.

o Accounts Payable - The balance in this account should equal amounts owed

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

o Payroll Tax Liabilities - The amounts in these accounts should equal amounts

withheld from employee paychecks as well as the employer’s portion of the

expense for the period that has not been remitted to the government

authorities.

o 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.

● Income/Expenses: These accounts are described as income from membership,

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

fees, etc.

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

reconciled with funding requests, funder’s reports, draw down schedules, etc.

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

added together and reconciled with the amounts reported on quarterly

payroll returns.

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

RECORD RETENTION POLICIES:

FINANCIAL DOCUMENTS:

o Permanent: Audits, Annual Financial Statements, Tax Returns, General

Ledgers, Cash Receipts and Disbursements journals

o 7 Years: Personnel files (after employee leaves)

o 6 Years: Payroll Records (after employee leaves), contracts, Insurance Policies

o 4 Years: Bank Statements, canceled checks, Invoices, Timecards, Payroll Tax

returns