Financial Procedures

Procedures and Guidelines

  1. Income
    1. All income (checks, cash, and/or credit card payments) is sent to the Administrative Assistant for deposit with NCLA deposit form
    2. Monthly, the Treasurer will post revenue to the appropriate fund in the accounting system
    3. As membership applications and renewals are received the Administrative Assistant will:
      1. Record section/Round Table and endowment income on the deposit form
      2. Update the membership databases
      3. Monthly, or upon request, send section and Round Table membership list to appropriate chair
      4. Update the membership listserv
    4. All operating fund interest earned will be retained for the operating fund of NCLA
    5. The Finance Committee will serve as advisors to the treasurer in determining the best way to increase income gained from investments.  Expenditures from investments will be dealt with under separate procedures based on the purpose of the restricted fund.
  2. Expenditures
    1. Check request (with appropriate receipts and NCLA Check Request Cover Sheet) are:
      1. signed by the section/round table chair and /or treasurer
      2. mailed to the Treasurer.
    2. Biweekly, the Administrative Assistant forwards completed check request forms to the treasurer with invoice and or receipts attached.
    3. Biweekly, the Treasurer:
      1. receives the check request
        1. pays the invoice(s) electronically, or
        2. prepares the check(s), signs and mails the check(s)
          1. directly to the payee for checks in amounts less than $2,500
      2. to a designated third party designee for a second signature on checks in amounts of $2,500 or more.  The third part y designee then signs the checks(s) and mails it directly to the payee
        1. completes the check request form with check or bank reference number and date of payment
    4. Monthly, the Administrative Assistant will forward all receipts for credit purchases indicating line item to the treasurer.
    5. Monthly, the treasurer will reconcile the credit card statement with receipts from the Administrative Assistant.
    6. The Administrative Assistant will maintain a record all assets purchased including item, date, serial numbers, disposition and cost.
    7. Expenditures from investments will be dealt with under separate procedures based on the purpose of the restricted fund
  3. Reporting
    1. Monthly, the Treasurer
      1. prepares an income and expenditure report for the operating budget
      2.  prepare an income and expenditure report for the fund accounts s documents
      3.  sends documents (and b above)  to Finance Committee, the check co-signer and as requested to section/round table chairs, President and officers.
      4. receives, reconciles and retains the bank statement for his/her records
      5. sends a copy of the backup file from the accounting software and a copy of the bank statement to the third party appointed by the President, usually a member of the Finance Committee, who reconciles the bank statement o the association’s fund accounts.  This third party may not be the one who makes deposits or is authorized to sign association checks.
    2. Quarterly, the treasurer
      1. prepares a quarterly financial report no later than 20 days into the next quarter.  If an Executive Board meeting is scheduled previous to this date of the month, every effort shall be made to provide the report prior to the meeting.
      2. Posts the reports to the NCLA web site.
    3. Annually, the treasurer will prepare financial records for completing IRS Form 990 and forward the reports to a CPA for completion of the IRS Form 990.
    4. The NCLA Treasurer will present the names of a proposed tax preparer and auditor to the NCLA Board, for approval.
    5. Section and Round Table chairs may request membership income and expenditure reports, and other pertinent documents, from the Administrative Assistant and /or Treasurer as needed, or may at any time make a standing request for continuing monthly reports