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.