ACCOUNTING POLICIES AND PROCEDURES
SECTION
TITLE
A
INTRODUCTION
B
ANNUAL REPORT
C
DEBTS AND OBLIGATIONS
D
BOOKKEEPING
E
PETTY CASH
F
DEPRECIABLE ASSETS
G
PAYROLL
H
BENEFITS
I
ANNUAL TAXES
J
STANDING COMMITTEES
K
BUDGETING
L
MANAGERIAL REPORTS
M
INTERNAL CONTROL
N
REMOTE ACCESS
O
SPECIAL FUNDS
P
BANKING
SECTION A - INTRODUCTION
The accounting policies and procedures are designed to provide the appropriate
guidelines and guidance necessary for proper financial and accounting operations
within the Woodland Chamber of Commerce. The procedures are based within proper
constraints, where needed, and the policies are designed to be flexible enough to meet
the current and future needs of the Woodland Chamber of Commerce.
Any policy and/or procedural change must be reviewed and accepted by the Board of
Directors. Upon approval of any change(s) by the Board of Directors, the manual will be
updated, so as to reflect the most current position of the Chamber. The continual
monitoring of policies and procedures, as well as the responsibility for properly updating
the manual, will be the duty of the Chief Executive Officer (CEO). Any alterations to the
Accounting Policies and Procedures must be within the constraints of the bylaws of the
Chamber and generally accepted accounting principles.
The financial operations to which this document applies will include all financial activities
and records thereof within the control of the Woodland Chamber of Commerce. Such
activities and records will include areas such as the Annual Report, debts and
obligations, budgeting, financial accounting, all accounting reports, personnel involved
in financial activities, internal controls, the periodic audit, all activities and projects
requiring financial and managerial support by the Chamber, and the bookkeeping
system of the Woodland Chamber of Commerce.
SECTION B -THE ANNUAL REPORT
The Annual Report shall consist of at least four parts, which are as follows:
1. Managerial Year End Progress Report
2. President’s Letter and President-Elect’s Letter
3. Organizational Structure Chart for the upcoming year
4. Year End Financial Statement
If more information is desired, the above format can be expanded, but the above will be
considered the minimum acceptable format.
The Managerial Report should cover the events and projects the Woodland Chamber of
Commerce completed throughout the year, the President’s letter shall reflect the same.
The President-Elect’s letter shall give a look at the future plans of the Chamber. The
Financial Statements should consist of a Statement of Financial Position, Statement of
Activity, Statement of Changes in fund balance, and proper accompanying footnotes.
The Annual Report should be prepared as soon as possible after the completion of the
fiscal year for presentation to the Membership at the Annual Dinner and for the Board of
Directors at their February Board meeting.
SECTION C - DEBTS AND OBLIGATIONS
In order for the Chamber to increase debt, approval must be given, along with
appropriate and specific purpose, for all funds obtained through debt instruments. The
Board of Directors must give final approval before financing can be obtained.
The appropriate and specific purpose for financing must be prepared for final
presentation to the Board of Directors by the CEO of the Woodland Chamber of
Commerce. The desire for debt must be presented to the Executive Committee for
determination of need and purpose prior to presentation to the Board of Directors.
SECION D - BOOKKEEPING
The CEO will be responsible for all periodic procedures, financial reports, bill payments,
and other duties as required. The bookkeeping can be done in-house or by an outside
service, depending on the situation as decided upon by the Board of Directors at the
time to which such a decision must be made. The in-house responsibilities will be
divided between employees, as deemed necessary for proper division of duties in order
to ensure the proper internal control necessary for safeguarding of assets. The CEO will
be responsible for receipt of membership dues and billing, cash deposits, and the petty
cash fund, as well as responsible for recording all funds received for project events.
The monthly reviews of the bank statements are the responsibility of the Treasurer.
The purpose of these reviews will be to answer questions, review work, and review the
bank reconciliation for the main checking account for the Chamber. There will also have
to be a year-end review meeting in order to aid and help insure proper preparation of
the annual statements.
SECTION E - PETTY CASH
The petty cash account will contain a one hundred dollar ($100) limit and will be the
responsibility of the Bookkeeper and the CEO. A receipt will document all expenditures
from this fund.
The petty cash fund will be replenished as needed. Replenishment of the petty cash
fund will be from the main checking account. Reconciliation of this account will be done
monthly or more often at the discretion of the CEO.
SECTION F - DEPRECIABLE ASSETS
All depreciable assets will be properly recorded in long-term asset accounts. The
depreciation of such assets will be done at year-end and reflected in the annual
financial statements. Although depreciable assets are reflected only in the annual
financial statements, current records must be kept on all depreciable assets.
SECTION G - PAYROLL
All payroll will be paid twice a month, on the 15th and the last day of the month. All
payroll taxes will be properly accrued at the time the payroll is prepared. Upon preparing
the payroll and accruing of payroll taxes, the employer payroll tax liability will be
calculated. All required payroll forms, payroll deposits and payments will be filed on time
with duplicate copies kept at the Chamber. The CEO is responsible for verifying that all
payroll tax forms, payment of payroll tax liabilities, and W -2 forms are sent.
SECTION H - BENEFITS
All benefits will be paid twice a month, on the 15th and the last day of the month. All
employees participating in the Chamber’s Deferred Comp program will have their
deferred comp account funded twice a month by the CEO.
SECTION I - ANNUAL TAX FORMS
An outside accounting firm will be selected for the annual review. An outside accounting
firm will be selected for the preparation of the tax returns. The responsibility for selection
of the Accounting firm will be shared between the CEO and the Board Treasurer.
SECTION J - STANDING COMMITTEES
The Standing Committees shall be established by the Board of Directors at the
beginning of each year. All programs will be properly positioned in one of the Divisions.
Following the approval of the Plan of Work, each committee chairman will submit plans
for the coming year to the CEO. Committee chairmen will submit anticipated budget
requirements to the CEO in September for review and final budget approval in
December by the Board of Directors. Cash flow reports and committee expenditures will
be reviewed monthly for annual versus budget variances.
SECTION K - BUDGETING
The Finance Task Force, which includes but is not limited to, the CEO, President and
Treasurer are responsible for compiling the annual budget for review and approval no
later than the December regular Board of Directors meeting.
SECTION L - MANAGERIAL REPORTS
Managerial reports must be approved by the Board of Directors. The preparation of the
reports in the correct format must be verified by the CEO.
SECTION M - INTERNAL CONTROL
Internal control consisting of checks and balances with a clean audit trail will be
established in order to safeguard the assets of the organization. The responsibility for
the division of duties and maintaining established controls will be with the CEO. The
CEO shall periodically review job duties, check bank balances, and spot check accounts
to verify that correct accounting procedures are being carried out.
SECTION N – REMOTE ACCESS
The Treasurer of the corporation should be the only outside person the CEO authorizes
to have remote computer access.
SECTION O - SPECIAL FUNDS
EARMARKING FUNDS: No membership investments paid into the general fund shall
be "earmarked" for a specific Chamber of Commerce department or activity.
SPECIAL FUNDS: If the Board of Directors authorizes a fund to be raised for special
purposes, no obligations shall be incurred for the use of such special fund in excess of
the funds raised.
SECTION P – BANKING
BANKING POLICY: All accounts of the Woodland Chamber of Commerce shall be
held at one member financial institution. Every three years the Executive Director will
review the Chamber’s current banking relationship. Contact will be made with all
member financial institutions in good standing, to inform them that the Chamber is
making a request for proposals, to address the organization’s banking needs. Upon
receipt and review of the proposals, the Executive Director shall select a financial
institution who can best meet the Chamber’s financial requirements and inform the
Executive Committee of the decision.