Sample Policies and Procedures Manual For …

1 The FMA Institute Developing Nonprofit Leaders Fiscal Management Associates, LLC 2012. All rights reserved. 1 Sample Policies and Procedures Manual For Nonprofit Organizations Introduction Table of Contents 1. Internal Control Structure a. Control Environment b. Accounting System c. Control Procedures d. Accounting Cycle 2. Sarbanes-Oxley Act 3. IRS Form 990 4. Fiscal Year and Accounting Calendar 5. Accrual Accounting 6. Board Involvement in Fiscal Oversight 7. Maintenance of this Manual 8. Exceptions Revenue, Accounts Receivable and Cash Receipts 1. Cash Receipts and Bank Deposits a. Receipt of Cash and Cash Equivalents b. Deposit Procedures 2. Processing and Recording Receipt s a. Wire Deposits b. Cash Receipts c. Credit Card Receipts d. Interest Income e. In- kind Donations f. Stock Donations 3. Revenue Recognition and Accounts Receivable a. Pledges/Promises to Give b.

2 Unrestricted Revenue c. Temporarily Restricted Revenue d. Permanently Restricted Revenue e. Revenue from Government Grants and Contracts 4. Contributions a. Substantiation and Disclosure Requirements The FMA Institute Developing Nonprofit Leaders Fiscal Management Associates, LLC 2012. All rights reserved. 2 Sample Policies and Procedures Manual For Nonprofit Organizations Purchasing 1. Conflict of Interest Policy 2. Competitive Bidding Requirements 3. Sole Sourced and Preferred Vendors 4. Blanket Purchase Orders 5. Generation and Approval of Purchase Orders 6. Sales Tax Exemption 7. Processing Purchase Orders 8. Receipt of Goods and Services Accounts Payable and Cash Disbursements 1. Processing Accounts Pa yable a. Receipt of Invoices b. Three-Way Match c. Check Requests d. Internet Purchases e. A/P Aging f. Blank Checks g. Check and Wire Transfer Processing h.

3 Signatory Authority 2. Travel and Business Expenses a. Approval of Overnight/Out of Town Travel b. Approval of Local Travel c. Method of Payment d. Travel Expense Reports e. Travel Advance Payments f. Cell Phone Usage 3. Credit Cards a. Issuance of Credit Cards b. Proper and Improper Use of Cards c. Documentation and Recordkeeping Requirements 4. Petty Cash and Metrocards a. Processing Petty Cash and Metrocard Disbursements b. Petty Cash Fund Replenishment 5. Independent Contractors and Consultants a. Consultant and Vendor Contract Approval b. Determination of Consultant Status c. Documenting Consultant Status The FMA Institute Developing Nonprofit Leaders Fiscal Management Associates, LLC 2012. All rights reserved. 3 Sample Policies and Procedures Manual For Nonprofit Organizations Personnel and Payroll 1. Personnel a. New Hire Requisition b. Personnel Forms 2. Payroll a.

4 Time Keeping b. Personnel Transaction Forms c. Salary Allocations d. Payroll Processing e. Reconciliation of Payroll Accounts f. Recording Accruals g. Separations Grants and Contracts 1. Pre-RFP and Contract Formation 2. Grants and Contract Management 3. Allowable Expenses Budgeting and Financial Reporting 1. Chart of Accounts 2. Budgeting 3. Monthly Close Process 4. Dissemination of Financial Information Fixed Assets 1. Capital Assets a. Identification b. Tracking and Inventory c. Capitalization Requirements 2. Depreciation a. Basis for Cost b. Determination of Useful Life c. Depreciation Method 3. Disposal of Capital Assets Long-Term Liabilities and Investments 1. Assumption and Authorization of Long-Term Debt 2. Investments 3. Insurance The FMA Institute Developing Nonprofit Leaders Fiscal Management Associates, LLC 2012. All rights reserved. 4 Sample Policies and Procedures Manual For Nonprofit Organizations Information and Technology 1.

5 Security and User Access 2. Disaster Recovery Governance 1. Roles and Responsibilities of Board of Directors (Finance & Audit Committees) Whistleblower Policy Conflict of Interest Policy Document Retention Policy The FMA Institute Developing Nonprofit Leaders Fiscal Management Associates, LLC 2011. All rights reserved. 5 Sample Policies and Procedures Manual For Nonprofit Organizations Appendices Forms Processing Cash Receipts Daily Check Log Deposit Slip Processing Purchases Purchase Request Form Competitive Bidding Form Preferred Vendor List Purchase Requisition Form Purchase Order Accounts Payable Check Request Form Cash Requirement Report Travel Request Form Car Service Voucher Travel Reimbursement Form Expense Reimbursement Form Credit Card Account Pu rchase Approval Form Cardholder Agreement Metrocards & Petty Cash Metrocard Log Petty Cash Log Petty Cash Replenishment Form Petty Cash Voucher Personnel & Payroll New Hire Requisition Form Personnel Transaction Form Direct Deposit Form Employee Timesheet Payroll Deduction Form Time Off Request Form Fixed Assets In- Kind Capital Assets Form Asset Disposal Form