ORGANIZATION
Accounting Policies and Procedures Manual
Date of Adoption
ACCOUNTING POLICIES AND PROCEDURES MANUAL
INTRODUCTION ............................................................................................................................... 5
ACCOUNTING PROCEDURES ....................................................................................................... 5
INTERNAL CONTROLS .................................................................................................................. 5
REPORTING.................................................................................................................................. 5
ACCRUAL BASIS OF ACCOUNTING............................................................................................... 7
CHART OF ACCOUNTS ................................................................................................................. 8
PURCHASES AND ACCOUNTS PAYABLE ....................................................................................... 8
Purchases ................................................................................................................................ 8
Petty Cash ............................................................................................................................... 9
Small Minority-Owned and Women-Owned Businesses........................................................ 9
CASH DISBURSEMENTS ............................................................................................................... 9
Frequency of Processing ......................................................................................................... 9
Check Preparation ................................................................................................................ 10
Documentation ..................................................................................................................... 10
Check Signature .................................................................................................................... 11
Check Mailing........................................................................................................................ 11
Check Custody....................................................................................................................... 12
Invoice Cancellation .............................................................................................................. 12
Record Keeping ..................................................................................................................... 12
INVOICING ................................................................................................................................. 12
CASH MANAGEMENT AND INVESTMENTS................................................................................ 13
BANK RECONCILIATIONS ........................................................................................................... 13
CASH RECEIPTS .......................................................................................................................... 14
Check Receipts ...................................................................................................................... 14
Cash Receipts ........................................................................................................................ 14
Credit Cards .......................................................................................................................... 14
Deposits ................................................................................................................................ 15
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Entry in General Ledger ........................................................................................................ 15
GENERAL LEDGER ...................................................................................................................... 15
PAYROLL .................................................................................................................................... 15
Hiring..................................................................................................................................... 15
W-4 and I-9 ........................................................................................................................... 15
Payroll Additions, Deletions, and Changes ........................................................................... 16
Pay Dates .............................................................................................................................. 16
Time Sheet Preparation ........................................................................................................ 16
Time Sheet Approval............................................................................................................. 16
Administrative Processing .................................................................................................... 17
Payroll Preparation ............................................................................................................... 17
Pay Upon Termination .......................................................................................................... 17
Withholding .......................................................................................................................... 18
BUSINESS EXPENSE REIMBURSEMENTS .................................................................................... 18
Travel Expenses .................................................................................................................... 18
EXPENSE ALLOCATIONS............................................................................................................. 19
Personnel Allocation ............................................................................................................. 19
Non-Salary Expense Allocation ............................................................................................. 19
Expense Allocation Documentation ..................................................................................... 19
FINANCIAL REPORTS.................................................................................................................. 20
CAPITAL EQUIPMENT ................................................................................................................ 20
BUDGETING PROCESS ............................................................................................................... 20
MONTHLY CLOSE ....................................................................................................................... 21
TAX REPORTS............................................................................................................................. 21
Quarterly and Annual Payroll Reports/W-2’s/1099’s ........................................................... 21
Exempt Organization Returns ............................................................................................... 22
Annual Information Returns ................................................................................................. 22
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INTRODUCTION
These are the accounting policies and procedures of Organization. They are designed to be a
reference to all employees of Organization in accomplishing our ongoing duties and to ensure
uniform accounting practices.
These policies will be revised as needed by the staff and approved by the Executive Director and
Finance Committee of the Board of Directors.
ACCOUNTING PROCEDURES
The accounting procedures used by the organization shall conform to generally accepted
accounting principles. This entails using the accrual method of accounting as described below.
We shall also develop activity centers for each functional area including program,
administration, shared costs and fundraising.
INTERNAL CONTROLS
Internal Controls are broadly defined as those processes designed to provide reasonable
assurance regarding the achievement of specific objectives in accountability, effectiveness and
efficiency of operations, reliability of financial reporting and compliance with applicable laws
and regulations.
Everyone in the organization has a role in internal controls. The systems described in this
document and others are designed to minimize bureaucracy while maximizing the protection of
our assets to help us achieve our mission. If a member of the staff becomes aware of problems
in operations, noncompliance with internal control procedures or other policy violations or
illegal actions, they should report it to the Executive Director or a member of the Board of
Directors.
REPORTING
Monthly financial reports are made to the Board of Directors. These reports include current
month and year-to-date financial statements along with a comparison of actual financial activity
to budget and an explanation of significant variances.
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In addition to internal reporting, the annual fiscal year-end financial statements are also audited
by an independent Certified Public Accountant.
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ACCRUAL BASIS OF ACCOUNTING
The accrual basis of accounting is the method where revenue and expenses are recorded when
they are incurred regardless of whether the cash has changed hands. The goal of the accrual
method is to match revenues with expenses and eliminate the budget distortion of large
advance payments, such as annual insurance premiums, etc. In doing so, this method gives a
more accurate picture when actual expenses are compared with budgeted amounts. It also
reduces the possibility of overlooking incurred but unpaid expenses when making budget
projections.
The accrual method policies are as follows:
(1) Throughout the fiscal year, expenses are accrued into the month in which they are
incurred provided that the accountant is notified of the expense no more than five
working days after the close of the month in question; otherwise, the expense is
counted as a current-month expense. This policy enables us to close each month and
produce invoices for funders in a timely fashion.
(2) At the close of the fiscal year, the five-working-day rule is not enforced. All
expenses, which should be accrued into the fiscal year, are so accrued, in order to
ensure that year-end financial statements reflect all expenses incurred during the fiscal
year.
(3) Revenue is always recorded in the month in which it was earned or pledged.
Earned revenues are debited to accounts receivable and credited to revenue when the services
are provided. When cash is received for these fees, it is credited to accounts receivable.
Expenses incurred, paid for or not, are recorded in expense accounts. Those unpaid are credited
to accounts payable. When a check is issued in payment, it is posted as a debit to accounts
payable.
Unrestricted grants and other contributions are recorded as revenue when they are awarded or
pledged, regardless of when the cash payment is to be received and regardless of the time
frame for the work covered by the grant.
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Grants with restrictions – either time or programmatic – are recorded as Temporarily Restricted
Revenue. These temporarily restricted grants are released from restriction when the funding
restrictions are met. The entry for this recognition would include a debit to “Temporarily
Restricted – Release from Restricted” and a credit to “Unrestricted – Release from Restricted.”
CHART OF ACCOUNTS
Attached is the Chart of Accounts in use by THE ORGANIZATION as of the date of this document.
The chart is segregated into assets, liabilities, net assets, revenue, and expenses. Activity
Centers are recorded as additional segments added to the accounts listed above. The Executive
Director must approve additions to the Chart of Accounts.
PURCHASES AND ACCOUNTS PAYABLE
Purchases
All purchases require the pre-approval of the Program Manager if in accordance with the budget
or Executive Director. In his/her absence, the Executive Director delegates authority to approve
purchases to the Associate Director.
The following ways are approved for making purchases on behalf of the organization:

Purchase Orders (if applicable)

Expense reimbursements

Corporate credit cards

Check requests
All purchases should have charge codes and be pre-approved by an authorized manager. If staff
make purchases and pay out of their own pocket, they will be required to get approval before
being reimbursed. All disbursements over $500 require the pre-approval of the Executive
Director before placing the order. Purchases of more than $1500 also require the solicitation of
three estimates.
Purchase orders. (If applicable) Accounting distributes purchase order books to select authorized
staff, keeping track of the slip number series. The PO slips should include the specific purchase
items, prices, and grant it relates to before they are given to the Bookkeeper. On receipt of the
invoice, the bookkeeper compares the invoice to the PO form and then authorizes payment.
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Expense reimbursements. Staff must submit timely expense reimbursements and any
necessary receipts with the reimbursement form. For grant related work, staff should provide
the grant code and have a manager approve. For non-grant related work, staff should provide
the program code and have the program manager approve.
Corporate credit cards. Select authorized staff are issued corporate credit cards in their name
because of the frequency and volume of their purchases. Staff are required to submit approved
PO’s for the purchases.
Check requests. When completing the Check Request form, the requesting staff member enters
the reason for the check and account code on the form. The Director overseeing the grant or
program should approve with his or her signature.
Petty Cash
Petty cash funds are maintained in the office by the Position. These funds are to be used for
miscellaneous or unexpected purchases and the same approval procedures apply as mentioned
above. Position is responsible for managing the petty cash funds and reconciling the remaining
balances with the accountant on a monthly basis.
Small Minority-Owned and Women-Owned Businesses
It is the policy of Organization Name to place a fair share of purchases with small, minorityowned and/or women-owned business firms. In particular, we will: (1) solicit these firms
whenever they are potential sources of products or services and (2) where feasible when it does
not incur additional costs, divide total requirements into smaller needs that encourage
participation by these firms.
CASH DISBURSEMENTS
Frequency of Processing
Checks are processed weekly unless there are intervening holidays. Invoices submitted to
Accounting by Tuesday will get processed & paid by Friday the same week. Supervisors must
return approved and signed invoices to Accounts Payable in Accounting no later than 5 p.m. on
Wednesday in order to include them within the same week’s check-run.
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Checks can be prepared manually within one day, but this should be limited to emergency
situations.
Check Preparation
The Executive Director or Finance Director determines which invoices are to be paid. To
determine which approved invoices or expense reimbursements should be paid, the Executive
Director or Finance Director reviews the accounts payable aging report, monthly cash flow
projections, and an updated list of current receivables. In the event checks are needed for cash
advances, the Executive Director must approve the check. To prepare checks, the accountant
posts the expenses debiting the appropriate department and then prints the checks. No checks
may be made payable to “Cash.”
Documentation
No checks are issued without an authorized Purchase Order, Expense Reimbursement Form or
Check Request Form and supporting documentation. The following guidelines apply for
documentation:

For vendors, an invoice must be matched with an approved Purchase Order (and
packing slip when available) on which the vendor’s name clearly appears, along
with a description of the item(s) purchased and an explanation for why these
items were purchased, if the relationship between the items and THE
ORGANIZATION’S programs is not readily apparent.

For subscriptions, a copy of the subscription card or renewal notice;

For out-of-town travel expenses, receipts for lodging, airfare, and ground
transportation—itineraries for the same are not adequate documentation;

For local travel expenses, a mileage log, parking receipts, and bridge toll
receipts.
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
For travel advance checks, an Expense Pre-Approval form with the reason for
the advance, and

For conferences, a copy of the registration form or program announcement.
All expenses require appropriate approval as outlined in the “Purchases and Accounts Payable”
section; all non-recurring expenses require pre-approval.
For all of the above, original documents are required, photocopied materials are not acceptable
documentation except on a case-by-case basis.
Once prepared, checks are not to be held; only checks expected to be disbursed are selected
and prepared.
Check Signature
THE ORGANIZATION endeavors to have all checks signed by at least one person other than the
person who prepared the check. In no case is a check to be prepared and solely signed by the
same person without a second person’s approval nor may a person be the sole signatory on a
check to himself or herself. When presented for signature, supporting documents should be
attached for the signer’s review.
Only certain senior staff and Board Members are authorized to sign checks. The Executive
Director, other positions, are the usual check signers. In absence of the above authorized staff
signers, certain members of the Board of Directors may sign: the Chair, the Treasurer, the
Secretary, and designated members of the Finance Committee who are duly authorized on the
bank’s check signing card.
Checks for sums of $10,000 to $35,000 require two staff signatures. For checks over $35,000,
one staff and one board member must co-sign the check.
Check Mailing
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After the signatures have been obtained, the accountant prepares the checks and distributes
them in person or mails them.
Check Custody
Unused checks are kept in a locked cabinet with access limited to the Accounting Department.
Invoice Cancellation
After payment, all invoices, vouchers and other supporting documents are cancelled with a PAID
stamp. The check number and the payment date are recorded on the Check Request form.
Record Keeping
The accountant retains all original records (check requests, invoices, other documentation) for
vendor files. A duplicate copy of each check is filed in numerical order separate from the vendor
files.
All records must be kept a minimum of three years.
INVOICING
Staff and independent consultants must submit expense reimbursements and invoices by the
end of the 5th working day of the month following the close. Reimbursable expenses must be
within the guidelines published.
On a monthly or quarterly basis as determined by the funding source, the Finance Manager
prepares invoices for all funding sources that provide funds on a reimbursement basis. The
Finance Manager prepares these invoices in the format required by the funder using general
ledger reports provided by the bookkeeper. If an expense recorded on the general ledger is not
allowed by the funding source as determined during invoice preparation, the Finance Manager
prepares a journal entry to correct the allocation of the expense in question. Once prepared,
invoices are forwarded to the Executive Director for signature. Copies of all invoices are kept on
file by the Finance Manager.
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CASH MANAGEMENT AND INVESTMENTS
The Finance Manager works with the accountant to manage the bank accounts and transfer
funds when necessary to ensure that adequate cash is available. Cash that is not needed
immediately is invested in short-term certificates of deposit generally maturing in 60 to 120
days. An effort is made to invest in CD amounts up to $100,000 and distribute these
investments across more than one bank in order to have the CDs be FDIC insured.
BANK RECONCILIATIONS
Bank reconciliation procedures include:

Receipt of unopened bank statement and cancelled checks by the accountant. After
reviewing these materials and initialing the statement, the accountant prepares the
bank reconciliation.

Comparison of cancelled checks with disbursement journals as to amount, date and
payee.

Examination of cancelled checks for authorized signatures.

Examination of cancelled checks for irregular endorsements.

Examination of cancelled checks for alteration.

Comparison of date and amount of deposit on bank statements to cash receipts journal.

Investigation of interbank transfer to determine that both sides of the transaction have
been recorded.

Review and approval of the bank reconciliation by the Associate Director.
The accountant files all cancelled checks in numerical order. Voided checks are filed with
cancelled checks.
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CASH RECEIPTS
Check Receipts
The mail is opened daily by the Receptionist who then provides all checks to the Finance
Manager or other person (not the accountant). The checks are then entered into a check log
which also includes a listing of any non-cash gifts received.
Two additional copies of the check log, along with photocopies of all checks and transmittal
letter are provided to the accountant. Once the accountant prepares the deposit, she attaches
a copy of the deposit slip to one copy of the check log with attachments, and forwards these
documents to Development. The Development Director generates a donor acknowledgement
letter. The accountant retains the other copy of the check log, deposit slip, and attachments.
Copies of all funder grant checks are also provided to the Finance Manager who maintains an
Excel log of funder amount, and date of receipt.
Any check returned by the bank is forwarded to the accountant who records the transaction.
The accountant investigates and pursues collection, if appropriate. Any bank advices for debits,
credits, and uncollectible checks are received by the accountant.
Cash Receipts
A book of blank receipts for cash is kept by the Receptionist. When cash is received, receipts are
completed in duplicate and a copy of the receipt is given to the payer. The payer and the
organization representative who is receiving the cash both count the cash to ensure that the
receipt total matches the total cash. The cash is then forwarded to the Receptionist for
inclusion on that day’s deposit log, and a copy of the receipt is attached to the deposit log.
Credit Cards
THE ORGANIZATION accepts payments with Visa, MasterCard and American Express. Online
credit card payments can be made through our secure online payment gateway. Payments are
deposited within one business day directly into our checking account.
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Deposits
The accountant deposits all cash and checks within two working days of their receipt. The
bookkeeper obtains a deposit receipt from the bank for all deposits.
Entry in General Ledger
The accountant enters the cash and check receipts into the general ledger, thereby
automatically updating the checking account balance.
GENERAL LEDGER
The general ledger is automated and maintained at THE ORGANIZATION. All input and balancing
is the responsibility of the accountant with final approval by the Finance Manager.
The Finance Manager reviews the general ledger on a monthly basis and analyzes variances
between budget and actual amounts. He or she presents the analysis to the Executive Director
and the Finance Committee of the Board of Directors.
PAYROLL
Hiring
The Executive Director approves all new hire offer letters and helps the new employee complete
all necessary paperwork for payroll, regulatory compliance, and benefits. The accountant is
informed of any new hire by receipt of the Employment Information Form, W-4 and I-9. The
accountant then adds the employee to the payroll, arranges for payroll taxes, etc.
W-4 and I-9
A new employee must submit forms W-4 and I-9 before starting work. If the employee claims to
be exempt or to have fourteen or more exemptions, a copy of the W-4 is sent to the Internal
Revenue Service in accordance with tax laws. Form W-4 should be completed annually and is
required whenever a change in exemption status is made.
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Payroll Additions, Deletions, and Changes
An Employment Information Form or memo signed by the Executive Director is required before
any names can be added or deleted from the payroll or when wages or salary are changed.
Pay Dates
THE ORGANIZATION has semi-monthly pay periods which end on the 15th and last day of the
month. Checks are distributed four days after the end of the pay period, unless it falls on a
weekend, when checks are distributed the Friday before.
Time Sheet Preparation
Time sheets should be submitted online by both salaried and hourly employees according to the
schedule of semi-monthly due dates published and given to all staff. Employees should enter
actual time worked in each period then print out and submit one copy to Accounting and
another signed copy to their supervisor. If the employee is absent and did not sign the time
sheet, the Accountant may process the time sheet. However, the employee must sign the time
sheet as soon as he/she returns to work.
Time Sheet Approval
It is each supervisor’s responsibility to review the employee time sheets to ensure that they are
correct. Supervisors should confirm the amount of time charged to grants, overtime, vacation,
holiday or leave without pay during the period being reviewed. The hours charged against a
grant and the code should be approved by the program manager. Vacation time should agree
with the amount of time off requested in the Vacation Request Form. The respective supervisor
must sign the time sheet as confirmation that the information is correct or request corrections
and have another signed copy submitted to Accounting.
The Accountant must also check the vacation totals on the master list that the organization
receives from the payroll company. It indicates the amount of time each employee has accrued.
If an employee does not have appropriate time accrued, they are not paid for the stated time off
or the staff must agree to have the time debited from future accrued time.
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Any overtime must have been pre-approved in writing by the supervisor overseeing the staff
member’s work.
Administrative Processing
If a time sheet is not completed correctly, the supervisor corrects the errors. Payroll checks
cannot be processed without the time sheet.
Payroll Preparation
Approved, completed time sheets are reviewed by the accountant for adequacy of approvals,
clerical accuracy, and alterations before being called into the payroll service. Changes of pay or
withholding are approved by the Executive Director and updated by the accountant. Input is
prepared on a ledger provided by the payroll service and saved in the payroll binder after being
called in.
The accountant reconciles batch total against number reported to payroll service.
Pay (net payroll) is entered into the check register and reconciled to gross payroll through a
general journal entry into the General Ledger. Signed pay checks are given out by the
accountant.
Employees may elect to have direct deposit service, receive the check in-person in the office, or
picked up. If an employee is ill or unavailable to pick up his/her check and would like someone
to pick it up for him/her, the employee must call the Executive Director or Finance Manager and
give the name of the person who is picking up the check. The person picking up the check must
have a letter of authorization from the employee in order to pick up the check and must show
acceptable identification.
Pay Upon Termination
An employee who terminates receives his/her final paycheck at the close of business the same
day as termination. If the terminating employee is not at work, he/she can pick up the check
between the hours of 9:00 am and 5:00 pm. Monday through Friday in the office, or have it
mailed to another location upon written request.
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Withholding
Other than the standard withholding of Federal and State income tax, social security (F.I.C.A.)
and disability insurance (S.D.I.), all withholdings, for example for commuter checks or benefits,
must be authorized in writing by the employee. The only exceptions are garnishments as
ordered by appropriate government agencies and any employee share of medical insurance
premiums, as described in the Employee Manual. The payroll service is responsible for timely
deposit of payroll taxes so as to avoid incurring penalties.
BUSINESS EXPENSE REIMBURSEMENTS
Employees are not reimbursed for expenses unless they submit an Expense Reimbursement
Form. These forms are available from the accountant and the cost center’s Department
Director should sign completed forms. Each expense should include the cost center and
complete grant code. Requests for reimbursement for all routine expenses should be turned in
within 5 working days of the following month after the expense was incurred, and all original
receipts should be attached.
Travel Expenses
Reimbursement for travel expenses should be requested within 5 working days of the following
month after the expense was incurred, and should be accompanied by receipts for all air travel,
lodging, car expenses, ground transportation, and all reimbursable items over $5.
Travel expenses are reimbursed to employees under the following guidelines:

Air travel should be at the lowest available rate.

Ground transportation to/from airports is reimbursed if the employee uses shuttle
services or a similar method of transport. Auto rental expenses or taxicab fares in the
destination city are reimbursed only if public transportation is inadequate or unavailable
in the destination city.
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
Lodging expenses should not exceed IRS-approved rates for the destination city, unless
the employee can demonstrate a compelling reason for incurring more expensive
lodging.

Local Travel: Business use of an employee’s automobile is reimbursed at the prevailing
IRS rate per mile; bridge tolls and parking expenses are reimbursed, at prevailing rates,
for employees attending meetings that require them to use their car.
Please see the “Cash Disbursements” section for a description of the kind of documentation
required for various types of expenses.
EXPENSE ALLOCATIONS
Personnel Allocation
Personnel expenses at THE ORGANIZATION are spread among departments according to how
much of each position’s time is spent on that department’s work. Personnel are allocated to
specific funding sources that support a given department based on agreements negotiated with
those funding sources.
Non-Salary Expense Allocation
Many non-salary expenses are spread according to a shared cost method. Under the shared
cost system, the number of full-time equivalents (FTEs) charged to a departmental-funding
source combination in a given month is divided by total agency FTE’s for that month, via an
allocation spread sheet prepared by the Finance Manager. The resulting percentage is applied
to those costs that are shared throughout the agency, via the same allocation spread sheet. In
those cases where a specific funding source has categorically disallowed a type of expense that
is usually spread according to shared cost, the portion of the expense that would have been
allocated to the funding source is charged instead to the Unrestricted Fund.
All other non-salary expenses are charged out directly to departments and/or funding sources
based on a determination as to which department and/or funding source was responsible for
incurring the expense.
Expense Allocation Documentation
The Finance Manager prepares a monthly spreadsheet, which spreads all expenses among
departments and funds according to the allocation scheme summarized above. The accountant
records the necessary journal entries to enter all data into the General Ledger. He or she
provides monthly reports on all funding sources to the Finance Manager. The Finance Manager
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reviews the allocations as posted, and informs the accountant of any corrections that need to be
made. The accountant makes these corrections in the form of journal entries.
FINANCIAL REPORTS
The Finance Manager and the accountant prepare all financial reports required by the
government and granting agencies and the Board. They prepare monthly financial statements
comparing actual income and expense to budgeted amounts, trial balance, balance sheet and
income and expense statements.
CAPITAL EQUIPMENT
Any single or group of items totaling $500 or more should be capitalized into a fixed asset
account. Any item or items less than $500 should be recorded in the appropriate expense
account. All items with a life span of less than one year go to the appropriate expense account.
Depreciation is recorded at least annually. Depreciation is computed using the straight-line
method over the estimated useful lives of the related assets in accordance with funding agency
requirements.
On an annual basis, a physical inventory is taken by the receptionist and reconciled to the
manual records by the Accountant. These manual records include a description of the
equipment’s serial number, date of purchase, and cost/fair market value.
BUDGETING PROCESS
The agency budget is prepared annually for all departments. The budget is prepared by the
Executive Director in conjunction with the Finance Manager and the Finance Committee. The
budget is to be approved by the Board of Directors prior to July 1st of each year. The budget is
revised during the year only if approved by the Board of Directors.
The Finance Manager will prepare worksheets for the managers including staff allocations,
development projections by funder and department, and P&L’s by department.
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MONTHLY CLOSE
In performing the monthly close, the accountant reconciles balance sheet items to their
subsidiary ledgers as follows:

Reconciles the accounts payable aging balances to the general ledger accounts payable
balance.

Reconciles the contracts receivable spreadsheet to the general ledger contracts
receivable balance.

Reconciles the bank statement to the general ledger bank balance.

Reconciles pre-paid, other asset account and a liability accounts to the appropriate
subsidiary ledgers.

Prints monthly and year-to-date financial statements and a monthly general ledger.
TAX REPORTS
The Finance Manager will see that all required Federal, State, County, and City reports are filed
on time with the proper governmental agency.
Quarterly and Annual Payroll Reports/W-2’s/1099’s
Quarterly Federal and State payroll reports (Forms 941 and DE3) are prepared and filed by the
Payroll Tax Management (PTM) in conjunction with the payroll service. Annual payroll reports
and W-2’s are prepared by the payroll service.
The W-2 statements are issued to the employees prior to January 31st of the following year for
the prior calendar year.
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Exempt Organization Returns
The annual Return of Organization Exempt from Income Tax must be filed with both the Internal
Revenue Service and the State Regulatory Agency. The Internal Revenue Service uses Form 990.
Forms are prepared by the auditor from the information in the financial statements.
Annual Information Returns
Annual Information Returns must be filed with the Federal and State governments on or before
February 28th of the following year for the prior calendar year. Form 1099-MISC should also be
filed for any non-corporate entity or individual to whom the agency paid $600 or more for
services during the calendar year and who is not considered to be an employee. Forms 1099
must be given to the recipient by January 31st of the following year for the prior calendar year.
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