Northeast Texas Regional Advisory Council Policy and Procedure Committee: Policies and Procedures Effective Date: 2-29-12 Page: 1 Subject: Internal Controls Policy #: 013 Drafted by/Date: 2-15-12 Approved: 2-29-12 Purpose/Objective: To establish a policy and procedures for internal controls Policy/Procedure: Internal Controls Internal control is imperative to safeguard assets, to ensure the accuracy and reliability of accounting data, to promote operational efficiency, to protect personnel, and to help ensure adherence to prescribed policies and institutional regulations. All employees and members of the Executive Board have been given a Employee/members Policy and Procedures Binder that addresses Code of Ethics and our organization’s Whistleblower policy. As a small organization, steps are taken to increase the “eyes” on the finances of the organization. These include policies for the receipt, deposit and logging of all incoming monies. In addition, steps have been taken to make these all financial transactions transparent. Examples include procedures regarding the receipt of cash and checks allowing a cross-check for the CPA to verify the deposit of all in-coming monies against the bank statements. The travel policy requires original receipts and outlines acceptable expenditures. Also, bank statements are reconciled by the CPA. Monthly reports provided to the Finance Committee and quarterly to the Executive Board, include a detailed report of all transactions, budget to actual expenditures by category of grants, and grant summary identifying current position of expenditures to allotment. The Executive Director and each board member monitors activities to assess effectiveness of operations, adequacy of controls, and compliance with established laws, regulations, policies, and procedures.