HEAD START CHILD & FAMILY DEVELOPMENT …

1 HEAD START CHILD & FAMILY DEVELOPMENT CENTERS, INC. financial PROCEDURES MANUAL INDEX PAGE CHART OF ACCOUNTS i I. GENERAL STATEMENT 2 II. PETTY CASH 3 III. RECEIPTS 3 IV. PURCHASING 4-7 V. DISBURSEMENTS 8-10 VI. PROPERTY 10-11 VII. NON-EXPENDABLE SUPPLIES 12 VIII. HIRING 12-13 IX. SALARY CLASSIFICATION 14 X. EMPLOYEE PERFORMANCE COMPENSATION 15 XI. EMPLOYEE INCENTIVE 16 XII. PAYROLL 17-18 XIII. TRAVEL 19-22 XIV. CONSULTANTS 23 XV. NON-FEDERAL SHARE IN-KIND CONTRIBUTIONS 23-24 XVI. LEASES 24 XVII. INSURANCE 24-25 XVIII. TELEPHONE 25 XIX.

2 GRANTS AND CONTRACTS 25 XX. BUDGETS/GRANT APPLICATIONS 25 XXI. THIRD PARTY LOANS 25 XXII. BOOKS OF ORIGINAL ENTRY 26 XXIII. REPORTS 26-28 REPORT SCHEDULE / FORMS LIST / DOCUMENT RETENTION SCHEDULE 29-31 HEAD START CHILD & FAMILY DEVELOPMENT CENTERS, INC. financial PROCEDURES MANUAL I. GENERAL STATEMENT The purpose of the financial Procedures Manual is to provide clear guidance to the policies and procedures for receipt and disbursement of Federal and State Funds for Head START CHILD and FAMILY DEVELOPMENT Centers, Inc. A. The HSCFDC Board of Directors formulates financial policies, delegates administration of the financial policies to the administrative staff, and reviews operations and activities.

3 B. The Head START Executive Director has responsibility for all operations and activities, including financial management. C. The Finance Director is responsible to the Head START Executive Director for all financial operations. D. The Head START CHILD & FAMILY Service Managers & Health Services Manager are responsible to the Head START Executive Director. E. The lines of authority on the Agency s Organizational Chart (APPENDIX A) shall be followed by all employees. F. Current Job Descriptions (APPENDIX B) shall be maintained for all employees, indicating duties and responsibilities. G. financial duties and responsibilities are separated so that no single employee has sole control over cash receipts, disbursements, payrolls, reconciliations of bank accounts, or purchase orders.

4 H. Bookkeeping duties shall be rotated among the Finance Director, Account Clerk, Secretary and Administrative Assistant whenever possible. I. All employees shall be required to take annual vacations. J. Separate bank accounts and books shall be maintained as required by funding source regulations. K. All forms shall be completed in ink. 2 HEAD START CHILD & FAMILY DEVELOPMENT CENTERS, INC. financial PROCEDURES MANUAL II. PETTY CASH There shall be no Petty Cash funds available by this agency. The Employee Reimbursement form (Form # ) shall be used to reimburse employees for allowable out-of-pocket expenses. Reimbursements shall coincide with payrolls whenever possible.

5 This procedure will be followed when a Purchase Order procedure is not appropriate, as with expenses less than $ , or when a Purchase Order is not accepted by the vendor. Employees seeking such reimbursements will follow the process outlined in the IV. (Purchasing), Employee Request for Reimbursement section of this document. III. RECEIPTS 1. All cash or checks made payable to HSCFDC shall be immediately forwarded to the Secretary, who shall record the receipt in the Cash Receipts Summary Register. (Form # 1) 2. A deposit slip shall be completed in duplicate by the Administrative Assistant or Secretary. The deposit slip shall include the source, check number, and amount of each receipt.

6 3. All checks shall be endorsed as follows: For Deposit Only Head START CHILD & FAMILY DEVELOPMENT Centers, Inc. 4. All cash or checks, along with transaction information shall be kept in a locked file until the deposit is to be prepared. 5. The Finance Director is notified by the Secretary of the deposit amount in advance in order to efficiently calculate cash needs. 6. After the deposit is made, the Finance Director shall attach the validated deposit receipt to the deposit copy and documentation. 7. The Finance Director or Account Clerk shall assign Account Codes and record all cash receipts on the Peachtree computerized accounting system.

7 8. Documentation for all receipts (copy of check, letter, etc) shall be attached to the duplicate deposit slip and filed by month in the Finance Department Computer Input files by. Program Income Program related income shall be used to reduce the total cost of the program generating the income. Interest income on Federal funds in excess of $250 shall be returned to the Treasurer of the United States as required. Donations of cash and non-program income shall be accounted for separately. Interest income on the State funds shall be retained at fiscal year end, and a journal entry made to transfer it to the Corporate Funds Account. Accounts Receivable Documentation shall be maintained for accounts receivable.

8 Accounts Receivable shall be recorded on the Peachtree accounting system, and collected on a timely basis by the Finance Director. 3 HEAD START CHILD & FAMILY DEVELOPMENT CENTERS, INC financial PROCEDURES MANUAL IV. PURCHASING All Head START purchases shall be conducted in a manner which provides to the maximum extent possible, open and free competition among suppliers. Head START will encourage the use of small businesses, minority owned firms and women owned businesses whenever it is practical to do so. Officers, employees or agents of this organization shall not solicit nor accept gratuities, favors, or anything of monetary value from contractors or potential contractors.

9 No officer, board member, or employee shall participate in the selection or administration of a vendor or contract if a real or apparent conflict of interest would be involved. Failure to comply with this prohibition will result in disciplinary action which could result in suspension or termination of the officer, employee or agent. The purchase must be necessary for the operation of the Agency or the performance of the award. Recognizing that the metric system is the preferred measurement system for trade and commerce, it will be used in the agency s purchases, grants and other business-related activities as is reasonable. Purchase Order Procedure: The Head START Executive Director has designated the Administrative Assistant, Secretary, Health Service Manager, and the CHILD & FAMILY Service Managers, as those with the ability to prepare and approve purchase orders.

10 CHILD & FAMILY Service Managers in turn have authorized certain lead teachers to prepare and approve Purchase Orders. Prior to purchase order preparation a determination will be made for the reasonableness, allowability and allocability of items to be purchased. DEFINITIONS: A.) Allowable: To be allowable under an award, costs must meet the following general criteria: 1. Be reasonable for the performance of the award and be allocable thereto under OMB Circular A-122 principles. 2. Conform to any limitations or exclusions set forth in principles or in the award as to types or amount of cost items. 3. Be consistent with policies and procedures that apply uniformly to both federally- financed and other activities of the organization.