Lord & Schryver Conservancy Financial Control Policy
The Oregon Department of Justice, Charitable Activities Section lists the following phases of a financial operation:
- access to assets
- access to accounting systems and records
- management/control
- oversight
The general rule is no single individual should have control of two or more of these phases.
Revenue
- The Executive Director [ED] enters direct deposit revenue into the accounting system and the Board Treasurer reconciles bank reports to the accounting system. (Access to Assets).
- The Board Treasurer uses USPS Informed Delivery to track mail and, when reconciling the checking account, refers to these items to verify that all mail from individuals is accounted for. The ED opens the mail and makes the deposit. (Access to assets.)
- The ED enters revenue into the accounting system.(Access to accounting system.)
- The Board Treasurer reconciles the monthly bank statement against accounting reports. (Management/control.)
- The entire board reviews yearly reports prepared by the outside accountant. (Oversight.)
- Thus no one individual has control over more than one function
Expense
- The ED keeps blank checks locked so no one else can access them. The ED prepares checks but does not have check signing authority. (Access to Assets.)
- The Treasurer does not have check signing authority. (Access to Assets.)
- The ED records payment, most of which is made electronically, in the accounting system. Any payments other than regular monthly bills or those in the approved budget are approved in writing or by email or text by the Board Chair.(Access to accounting system.)
- The Board Treasurer reconciles the bank statement. (Management/control.)
- The Board Chair, Treasurer and entire Board are involved in the budget process, and budgeted or preapproved payments may be made electronically by the ED. The entire board reviews yearly reports prepared by the outside accountant. (Oversight.)
- Thus no one individual has control over more than one function.