Accounting Policies & Procedures
Table of Contents
B) Money Market, Credit, and other Special Accounts
C) Reconciliation of Bank Statements
5. Computerized Bookkeeping System
B.) Profit & Loss, Balance Sheet, Budget vs. Actual
C.) Procedure for Allocating Shared Expenses for Annual Budget vs Actual Report
F.) Summarized listing of reports and their regular times to be generated
B.) Depreciation Assets vs Expenses
10. Scholarship Program (EITC)
11. General Outline of Procedures for Host Families of International Students
January 29, 2007 Accounting Policies and Procedures
1. The executive director and the BOD treasurer have check writing privileges. This determination is set and reviewed by the BOD. Any changes are noted to the bank and the bookkeeper.
2. The only disbursement for cash is by check, except for petty cash.
3. Voided checks have the signature portion removed and are filed in the locked drawer with bank information.
4. The only checks approved for cash are for trips, or change for events and then only with appropriate documentation.
5. Blank checks and deposit slips are ordered, stocked and replaced by the bookkeeper as needed.
6. Blank checks are not distributed before entering it in QB’s or filling out a check tracking form, listing the person taking the check, vendor, date, number, and estimated amount. In the absence of the bookkeeper, the treasurer and executive director may fill out the check tracking form.
7. All checks must have memos describing purpose of check before being signed. Documentation will be provided when necessary for further clarification.
8. Payroll checks are in numerical order with a different starting number than regular
checks. Both types of checks require one signature.
9. Blank Checks are only issued without a vendor identified in the following instances:
a. A check held by a staff member who frequently needs to have a check for use away from the Center.
b. When a vendor’s identity is unknown (such as purchasing something from an auction, or unknown vendor at a convention, etc) and it is impractical to assign a vendor for the purchase.
c. Should one of the above circumstances need to be met, the accounting department will track very carefully all issued checks, and require specific documentation upon return of the check.
d. If both the BOD treasurer and executive director are away for an extended period of time, a few signed checks are kept locked in the bookkeeping department for emergency use.
10. a. Any checks returned for insufficient funds are charged $25. That fee is passed on to the client along with the replacement cost and recorded in the account from which it was taken.
b. Any fundraising checks that are returned for insufficient funds will only be charged the bank fee.
11. To transfer funds between the savings and checking accounts use either the appropriate paper forms or use the phone transfer procedure, see page 6.
12. An additional checking account with a constant balance of $1 is used to accept wire transfers especially from other countries for foreign exchange students.
B) Money Market, Credit, and other Special Accounts
1. The money market account is used to hold longer term designated and restricted funds as well as any additional funds in order to accrue a higher interest rate.
2. The Center has a charge account with Wal-Mart and Sam’s club. The credit cards are distributed to staff and leadership team members who regularly make purchases, and a few are kept in a locked drawer for distribution to others as they are needed. The cards are numbered for tracking purposes, and must be signed out using a credit card tracking form.
3. The Center has other credit card accounts that are utilized by staff members for purchases when necessary. The credit cards are kept in the locked filing cabinet in individual file folders. These cards need to have a staff person sign out for the card and then turn into accounting any receipts as well as what the purchases were for. Purchases need to be itemized, so they can be correctly entered into the computer system. Each regularly used Center vehicle has a packet of gasolene credit cards. A ‘trip pack’ is kept in the locked drawer with the other credit cards. It contains gasolene credit cards, a Visa card, a phone calling card and a tax exempt form.
4. Our bank line of credit (its amount and status) is reviewed annually by the BOD to determine appropriate paydown and limits. If this line is being used, it has its own line item on the cash flow report. The bookkeeper must obtain permission from the executive director or BOD treasurer and fill out the appropriate bank form to draw on this line. The line of credit status will be included in regular bank reconciliation paperwork approved by the treasurer of the Board.
5. Our current policies do not require employees or officers to be bonded.
C) Reconciliation of Bank Statements
1. The accounting department reconciles all bank accounts and submits the information to the BOD treasurer on a monthly basis (quarterly when applicable, for irregularly used accounts), by the 15th of the month. The treasurer then initials it and returns it to the accounting department for filing. During this process:
*Voided checks are to be included.
*If checks are outstanding for more than 180 days, the accounting department will investigate, and if necessary, will return money to the cash account. For checks over $100, a stop payment will be issued.
*The following accounts are reconciled: Checking, Money Market, Bank Savings, and Bank Credit Line Usage. Only the checking account is done with the Quick Books reconciliation program.
2. QuickBooks Reconciliation procedure:
* If during the computerized reconciliation a discrepancy occurs it must be reported to the head bookkeeper before any adjustments are made.
*The report is printed, submitted it to the Board treasurer for approval and signature, then filed.
1. There is one designated petty cash officer for each campus. Each week (or whenever needed) the designated staff member will turn in reconciliation forms and receive a check to replace the funds that have been dispensed.
2. Petty cash must be receipted and turned in to the officer on the appropriate form.
3. Employees must fill out a form with their name, the vendor, the amount, the date, the reason, and the account. See attached form.
4. All requests for cash should be accompanied by receipts. Patterns of requesting for petty cash without receipts will be addressed.
5. When the petty cash officer is not using the petty cash box, it will be locked.
6. The accounting department will charge the appropriate accounts on the petty cash receipt form as they write the check to replace the petty cash account.
7. Special Circumstances: Bus Washing Quarters:
a. Quarters for washing the busses may be obtained by filing a petty cash form with the petty cash officer. The forms can be found in the appropriately marked mail slot.
b. Up to $5 may be taken at one time. Remaining quarters can be kept in the bus for future washes. If drivers are not comfortable with leaving quarters in their bus, more quarters than can be used should not be taken.
c. If quarters are returned, corrections will be made on the petty cash form used to obtain the quarters to reflect the actual amount of quarters used.
8. No more than $200 will be kept in petty cash at each campus.
A. Each individual member of the Board of Directors is required to read, understand, and clarify if necessary any financial report that is generated by the Center. Each month they will receive all reports that are identified under monthly reports and any other report that would be considered significant by the accounting department, the Board treasurer or the executive director.
B. Annually, the BOD sets the following:
Salary scales with base salary increases of:
Support Staff, Bus drivers, Substitutes, Fine Arts, Academic Support, Hot Lunch,
and any other special circumstances
Conference Rates for Room and Meal reimbursement
School District Bus contracts (as needed)
Health Insurance Reimbursement Levels (as needed)
Registration/Materials Fees for School Programs
Prepaid School Discounts (amounts or percentages)
Discovery program rates
Financial Aid Limits & Eligibility
Compensation for field trip bus drivers (Local, Intermediate, Pittsburgh, & Other trips)
Sports Fees
Home schooling rates
Personal plowing rates
C. All fund-raising activities must be approved by the governing Board.
D. No money can be borrowed on loan without BOD approval. However, approval for credit applications can be granted by the executive director.
E. Annually after the fiscal year, the Board makes provision for the books to be reviewed by a CPA.
1. Checks are restrictively endorsed with the Center stamp when the bookkeeper opens the mail.
2. All cash payments received by any department in the Center will be receipted by hand. Cash gift receipts will be entered into the computer system as a cash sale which records the day of the transaction, the name of the donor and the amount of the cash gift received.
3. Any question or discrepancies registered regarding receipts, gifts or payments will be investigated by the executive director or treasurer and a full report documented and given to the requester.
4. All giving, tuition and other fee records are kept on the computer, and hard copies are printed out on a regular basis.
5. Post-dated checks cannot be accepted from anyone for any reason.
6. All receipting will be done using a segregation of duties between people in the department. One employee will open the mail or otherwise receive the funds, enter the appropriate transaction on the computer and monitor the deposits to make sure they are consistent with the receipts. Another employee will be responsible to count the money, make the deposits, and check their consistency with the receipts.
7. The accounting department follows the Center’s receiving policy.
8. Receipts will be entered and deposited on a daily basis to the fullest extent possible (or practical).
9: Year-end gifts will be assigned to the current calendar year if they are postmarked by Dec. 31 of that year. In order for vehicle in-kind gifts to be credited in a particular year, the titles must be received on or before Dec. 31 of that year. Receipts will be issued according to regular procedures.
1. All gifts are recorded and receipts are issued to donors regardless of amounts on a regular basis. No gift shall go more than one month without receipting, without special documentation. If an individual specifically requests not to be sent a receipt, that request will be honored.
2. On a regular basis (monthly or weekly), restricted funds are transferred to the savings account, or money market account to assure appropriate tracking confirmation.
*To transferring funds call the First National Bank toll free phone line. Only six phone transfers per month can be made for free. Any transfers after that are charged a fee. 1 888 443 4300
* After confirmation, the reference number is recorded in the QB transfer .
3. The accounting department and development department assure compliance with the terms and conditions of all grants and other restricted contributions.
4. As in-kind donations are received, the accounting department assigns a value for internal purposes. The receipt that is issued to the donor does not have a value, so the donor can make that determination for his or her records and fulfill the responsibilities of the Internal Revenue Service.
5. When a non-cash gift is received, it is important that all appropriate record keeping be done to assure compliance with IRS rules, and also that people are properly thanked. The staff member receiving the item(s) shall assure that an in-kind donation form is completed. After it is completed, it is given to the accounting department (with the value amount filled in) and recorded on the computer. The receipt is then given to the development department for the appropriate thank you procedure to be completed. See attached In-Kind Receipt Form.
6. All restricted funds will be noted as to their location and balances on all year end reports.
7. Restricted funds will be identified as those specifically restricted for use by the donor and will be labeled as such. Designated funds are those that are designated for use in-house, rather than by the donor. These funds will be noted on reports. The Center does follow the FASB standards concerning ‘temporarily restricted’ and ‘permanently restricted’ funds recorded on the Form 990. ‘Permanently restricted’ refers to assets not cash donations.
8. Although not incorporated into the accounting system, (with the exception of equipment and land development labor) the Center annually tracks volunteer labor.
9. When in-kind donated man-hours are utilized to build new equipment or buildings, or improve property, the fair market value will be included in the appropriate asset account.
10. Vendors names which the Center deals with on a regular basis, (more than three times), will be given to the development office to be included on the database.
1. Contracts: A signed service agreement is needed for every student that attends Champion Christian School. This service agreement should include total tuition for the school year plus all fees for materials and registration of each student and an explanation of the late fees. Time should be taken with each parent or guardian to ensure that the terms of the contract are made clear and that they understand the legal agreement they are making with Champion Christian School. A completed contract is our only proof of agreement and our only way to enforce payment. A copy is made for parents and the financial aid office. Each contract has to have a provision for a sign off that a family has read and abides by the policies of the school as well as binding themselves to Christian Conciliation Services should a dispute arise.
*Procedures are made to assure that parents are aware that signed contract states that all handbooks have been read.
*Tuition statements are issued and payments made on a monthly basis.
*The amount is entered into the computer to be set up each month for billing.
*Late fees are applicable for each month tuition is late, but an ‘Oops coupon’ (to waive the late fee) is issued for use one month during the year if needed. Late fee is $25. Late fees apply to NILD balances, as well as tuition and any other balance.
*Statements of past due accounts are issued on a monthly basis.
*Account balances for current students are not allowed to get more than an equivalent of three months’ tuition behind. (See step 3 of tuition collection policy and procedure). Also, the student cannot participate in graduation ceremonies at the end of the year, and cannot re-enroll the following school year without paying the previous balance in full. In cases with multiple children the total balance of tuition and other charges cannot exceed an equivalent of three months of the oldest student’s tuition.
*When a family falls two months behind on tuition a statement is sent to the family from the accounting office saying that the child(ren) cannot return to school the next month if at least one month’s tuition is not paid. This procedure will be followed every month until a family is less than two months back. Special cases can work out agreements with the accounting office.
*For families who owe money and are no longer enrolled in the school, student records and transcripts are not forwarded to a new school (with the exception of health records), they receive a monthly statement until such time the bill is paid, or they stop paying on the bill for a six month period. At that point the tuition collection policy becomes active.
*For staff families: Any unpaid balances for tuition or other bills must be paid in full before the start of the school year. They can do this by paying by check or credit card or may have the balance taken out of their paychecks starting in September and ending in December. Arrangements must be made with the accounting department.
*For regular employees (hot lunch workers, bus drivers, etc.) a 10% discount applies. *Late fees are assessed to staff members responsible for tuition, as well as other families enrolled in CCS, on a monthly basis. Arrangements must be made with the accounting department if there are special circumstances.
*Tuition for students in grades K - 12 is an amount for the whole school year to be paid in ten equal payments. Tuition payments are due on the last day of each month beginning August 31 and continuing every month throughout the school year until May 31. Should students be withdrawn mid-month, they will be responsible for payments made in the month they were enrolled. For example, students who withdraw on February 10 would be responsible for all of the January 31 payment. (While this system does not interpolate perfectly because of the ten-month payment system, it is the most practical system available.) Upon request, a 12-month payment plan is available, but that plan must be approved by the administration of Champion Christian School prior to or at the signing of the tuition contract with Champion Christian School.
* Students enrolling after the beginning of the school year are responsible for paying the tuition payment of the previous month as well as any current and future payments.
*Preschool students’ tuition will be paid on the last day of each month for the following month enrolled. No payment is due at the end of May (for the month of June). Again, special payment options are available upon approval. This payment contract is divided in nine equal payments from August through April.
*Payment due dates may be changed upon request, to meet the special needs of a particular family. This change in due date must be approved by the administration of Champion Christian School prior to or at the signing of the tuition contract with the Champion Christian School for the coming school year. This date will then be fixed for all ten equal tuition payments.
3. Registration fees / Material fees
*Registration fees are due before the first day that the student starts Champion Christian School. For current students, half of the registration fee must be paid by March 31, the other half by April 30, in order to receive the discount. Registration fees will be half for those students who start school in the second semester. This fee is non-refundable even if your child does not come to school at Champion Christian School.
*Registration fee discounts for more than two children in a family are no longer applicable starting 2007-2008 school year.
*Material fees are due the first day that the students start Champion Christian School. For current students, the material fee needs to be paid by July 31. Material fees will be half for those students in high school, elementary school, kindergarten, and preschool, who start school in the second semester.
*Special arrangements can be made for paying these fees prior to or at the signing of the tuition contract with Champion Christian School for the coming school year.
* Material fee discounts for multiple-child families will no longer be applicable starting 2007-2008 school year.
*The Registration fee is very clearly explained as non-refundable.
*The material fees are partially refundable. When material fees have been paid for the year, and a student leaves in the first semester, the second semester fees are returned. When material fees have been paid and a student withdraws from school after July 31st, the first semester’s material fees are not refundable.
*If a returning student pays registration and materials on time, and then decides not to enroll, their fees are non-refundable. However, if at a later date in the school year, they re-apply, they do not have to pay the fees a second time.
*Documentation. All special arrangements must be noted to the bookkeeper before the payment plan begins. The bookkeeper will then enter the plan into the computer for monthly accuracy. Any parent or guardian has the right to petition the Board of Directors for any special arrangement concerning tuition and/or fees.
Note: In addition to or regardless of all other financial aid monies received, there is a $250 tuition credit per family for CCS referrals. If the referred family is still enrolled in December, $250 will be credited to the referring families’ account.
*Payment contract: As the contracts are signed and dated, the parents will receive a work sheet showing them the due dates of tuition, registration and material fees for the year, and includes a late coupon (‘Oops’ coupon).
*Late Payments: For practical purposes, payments received after the 3rd day of the month will be recorded as late (even though they are due on the last business day of the month). Each family will have the ability to make one late payment per year without being charged a late fee by using a late (Oops) coupon. After that, families will be charged $25 per month when the payment is late. As long as families make payments on time, no statements will be issued. Monthly statements will be mailed when parents are late on a payment. Statements are issued during the first week of the month (usually before the 6th). Starting May 31, 2002 for outstanding balances for students no longer enrolled in Champion Christian School, a 10% fee will be added. If no payments are made in a six month period the collection process will be enforced.
5. Tuition is entered into the bookkeeping system using an invoice. This procedure involves making a bill, and adding on additional charges, on the person’s bill. This keeps an ongoing record of how many charges were accrued and how much money was paid on that person’s account. Tuition is then memorized in Quickbooks and set to automatically enter these bills on the 15th of every month. This excludes parents that have prepaid tuition.
6. Homeschoolers rates reviewed each year by the Board. See Board sheet.
7. Prepaid tuition discounts reviewed by the Board each year. See Board sheet.
8. Pastor’s discount has been discontinued for the 06-07 school year.
9. Regular Employees (school bus drivers, hot lunch employees, and other part time employees who do not have at least an associate degree) who are eligible for the 10% discount rate, can only apply it only to their own children, not grandchildren. Regular employees must work at least 20 hours per week to receive the 10% discount and transportation fees waived for student events.
10. Tuition Collection Policy and Procedure: The Center Board of Directors believe that it is biblical to have people be responsible for their indebtedness. This has to be balanced with an attitude of flexibility. (Luke 7:41) It is for that reason that we will attempt to collect all unpaid tuition in the following manner that we believe holds individuals to accountability and yet is very flexible. The following procedure is followed:
(a) Late tuition with student still enrolled:
Step 1.After the first month the tuition is late parents will receive a statement notice informing them that their payment is late. Each month the payment is late the tuition will be charged a $25 late fee. People will be encouraged to contact the Center to work out arrangements if they are having financial difficulties.
Step 2. The second month the tuition is late, parents will receive a letter (Letter 1-enrolled) informing them of the late tuition policy (that after 90 days students will no longer be allowed to attend school). Again they will be encouraged to contact the Center.
Step 3.Warning of expulsion. At the end of the third late month, parents will receive a certified letter (Letter 2-enrolled) ,signed by the board president, noting that if the tuition is not paid by the 15th of the following month their children may no longer attend CCS. If no contact with the accounting department is made by the 14th of the month, the executive director or his representative would then make a phone call to the family stating that they may not return to school on the 16th of the month without a payment. Students then fall under the withdrawn student policy. No student may graduate, receive any records for transfer (with the exception of health records), receive any transcripts, or attend the following school year without payment (including Financial Aid work) for the previous year being made in full. For families with more than one child, payments must be split proportionally to keep each child’s balance current. If a family withdraws one or more, but not all of their children, each student’s balance is to be kept individually. Records will not be released until all of the non-returning students’ balances are paid in full, and the re-enrolling students’ balances are within two months. This policy will only be adjusted in special circumstances by the Board of Directors.
(b) Withdrawn student policy:
Step 1. Parents will continue to receive monthly late notices (with cumulative late fees added) for the first three months after attending CCS that tuition is not paid. Any significant series of payment will delay the process. After three months have passed without a payment, a letter (Letter 3-six months) will be sent to the family. The last notice will warn parents that the Board will begin the collection process. This letter will also state that they must respond to the letter within 30 days or their bill will be submitted to the Board of Directors, and the collection process will begin.
Step 2. A staff member will notify the parent of the Board policy and attempt to make arrangements for payment during the fourth month.
Step 3. After six months of nonpayment, the Board president will send a certified letter (Letter 4-twelve months), person to person, announcing its intention to submit the bill to the collection process.
Once a balance is paid in full, a collection thank you will be sent to the family, thanking them for working with the Center.
Step 4. For overdue balances over $250 the following steps will be taken:
a.File charges for payment with the magistrate’s office.
b.Pursue attachment of liens against personal holdings of families if settlement is not made according to the District Magistrate’s second judgement.
All students must have turned in a completed enrollment application to the school office before applying for any financial aid. Then the first step in receiving financial aid is to turn in a CCS Financial Aid application (if the family’s income is below the federal hot lunch guidelines) or a FFNA application (if the family’s income is above the federal hot lunch guidelines.) All CCS Financial aid applications are processed by the CCS Financial Aid Coordinator. The FFNA applications are completed by the family and sent to the FFNA agency. Once FFNA determines the amount of aid, if any, the family is to receive, FFNA will notify the CCS Financial Aid Coordinator by email. Once the applications are processed, an award letter will then be sent out detailing the amount of aid that the family will be receiving. The amount of financial aid is contingent upon the family completing the EITC Level 1 and Level 2 applications. **Note: FFNA will verify if the family is eligible for the EITC money to protect the confidentiality.
a. It is the aim of the Christian Family & Children’s Center Board of Directors to make Champion Christian School affordable for families of all incomes. If a family has applied for aid through the CCS Financial Aid Department and receives an award letter that they do not choose to accept, registration fees will be refunded if they respond within a two week period. Should a family choose to reject this package within the two week period they may approach the Board through writing about other aid options. Families should submit a letter to the Board explaining why they have rejected their financial aid award letter, including any information about extenuating circumstances that may be pertinent to the situation. The Board will respond in two weeks.
B. A maintenance group program is available for families who meet the financial eligibility requirements for the Federal Hot Lunch Program. Every parent who applies to the financial aid program and is approved has the ability to work the equivalent of their net pay to be accounted towards ½ of their tuition. A financial agreement is signed which have the total hours to be worked and an explanation of the policies and procedures in terms of billing a parent for hours not worked during a month. Jobs are assigned and hours are supervised by the FA director. Financial aid is only for families with full time enrolled students.
Full tuition will be charged on the accounting system and hours worked will be credited to each account. Workers are responsible for paying for any hours not worked in the month.
1. Counseling program uses invoices entered into the bookkeeping system. This procedure involves making a bill, and adding on additional charges. This keeps an ongoing record of how many charges were accrued and how much money was paid on that person’s account.
2. The counseling rates are set periodically by the BOD. Once they are determined, the clients schedule an appointment. On the day of the appointment, the administrative assistant creates an invoice (bill) for the client for the appropriate amount. Then, on the 15th and 31st of each month, the administrative assistant enters all the payments that were received into the computer, and makes a deposit. The bookkeeper then takes the deposit to the bank.
3. When past due accounts are billed the statements are sent out on a monthly basis. Payment for counseling services are due on the day of the session. No client may receive a second session without paying for the unpaid session. This keeps account payable to a minimum.
4. Should there be any counseling account that goes over $100 it will be treated with the same late collection policy as tuition.
1. All money received or collected by the Center for activities, field trips, student activities, etc. are required to have at least two people involved in the collection and reporting process. Every event is required to complete an Event Financial Form (SEE ATTACHED) and submit it with funds received and payments required to the accounting department. This process should include an event coordinator and a witness to verify the accounting in the form
2. When taking a field trip, the person responsible for collecting the money (usually a teacher) will keep track of student payments. This list will be turned in to the accounting office with their money the day after the event using the event form. Money that is collected ahead of time will be kept in a locked drawer. Employees that have taken trips should complete an Event Financial Form as well.
3. When taking a field trip, teachers must use the trip financial planning form to calculate trip costs per pupil and have those costs approved before announcing details of the trip. See attached form. Staff and staff students do not have to pay transportation cost of field trips with the exception of end of year overnight trips.
4. For events, teachers will keep forms and money collected in a locked drawer. On the outside of the envelope the teacher should write the event, the date, and their name. Once the collection process and the form is completed, the entry bookkeeper takes the total amount from the envelope and enters it onto the computer system. The entire envelope with paperwork and money will be put into the locking desk drawer for the bookkeeper to deposit.
5. Judges and other people needed for student events do not pay transportation costs.
6. Concerning field trips or conferences over a weekend, teachers do not receive comp. time for Saturday and Sunday.
1. To be a good steward of resources, purchases are made in the most cost effective manner by generally checking into pricing with alternative vendors. (This process is required on purchases over $ 100.) Items taken into consideration are employees paid time, shipping costs, and timeliness.
2. All employees must include their names on orders when applicable, which is especially important when items are shipped.
3. We do not show favoritism to employees, BOD members, or other leadership team members regarding purchases. If purchases are made from them, there must be other legitimate reasons. We do have a conflict of interest policy which requires leadership teams members to not participate in decision making on issues in which they are personally involved.
4. Program supervisors authorize purchases for their departments. The accounting department gives a record of expenditures to the departmental heads on a regular basis and verifies funds available for use by each department.
5. The Board approves major purchases for non-budgeted items.
6. On a monthly basis the accounting department reconciles all available credit card balances.
7. In order to be fiscally responsible, we pay all bills when they are due (in a timely manner). Should we not be able to do that, we will notify a vendor before the due date of our inability to pay and an expected payment date.
8. Upon receiving an invoice, the accounting department verifies with the person who placed the order that it is complete, received and payable. The bookkeeper will then verify the tax exemption status, assure all appropriate discounts are received and any other detail that the invoice requires. After the accounting department is satisfied the invoice will be paid before its due date.
9. When invoices are paid, “paid” with check number will be written on them.
10. When we receive duplicate (or triplicate) invoices, we either destroy the extras or else write “copy” on them. With original invoices, they are entered into the computer, and put in the “to be paid” file. When the check is printed, the portion that we keep is labeled with the date and check number, and then filed.
11. When requested, only copies of invoices, not the originals, are distributed for review.
12. Checks are only paid from invoices, except for checks taken in advance, which require receipts to be returned.
13. Only checks that are made out to vendors are signed. In the rare event that the vendor is not known, receipts must be returned on vendor’s letterhead, to verify the purchase.
14. Expenses (Bills vs. Checks)
* When a vendor submits a bill it is entered on the accounting system with the amount owed, and the date it is due. When it is due, the bookkeeper issues a check for disbursement that is sent to the check signers. All bills have a memo that describes the expense. Once signed, the bookkeeper writes the check number and date on the invoice and files it in the filing cabinet. The check and stub or copy of invoice is mailed to the vendor. This procedure allows for tracking of expenses that are paid and not paid.
*When someone needs to make a purchase and pay by check “up front” the procedure is to simply use a check without a bill. This enters the item in the appropriate account entry as is needed.
*Concerning invoices made on a consistent basis, the bookkeeper first reviews all details with someone from that program, and then creates a bill and pays the bill when it is due.
15. Expenses: (Paychecks and liability checks)
16. Checks can be written to employees for expense reimbursements if they turn in a receipt and fill out a form (with the description and program use). We do make allowances for lost/misplaced receipts when under $20, but only until such point that it becomes a continual problem. Most miscellaneous purchases are directed to petty cash.
17. When invoices and statements are compared, the accounting department monitors the purchases regarding accuracy in labeling. Receipts are quickly scanned for anything that might appear contradictory, or otherwise unusual. Brief questions may be asked for investigative purposes to correct any mislabeled invoices.
* Periodically the bookkeeper reviews vendor debit balances and makes any corrections or adjustments. The A/P account is reviewed monthly. Also, at the close of every month, all accounts are reviewed for accuracy.
*All Payable accounts are kept up to date, and viewed monthly for accuracy.
1. The bookkeeper produces employee contracts by using a computerized password protected standard form. Salaries and hourly wages are determined by the Board of Directors annually. After the paper copies are signed and returned, they are put in the employee’s file. The following items are reviewed and explained to the employee by the accounting department:
W-4 form; tax withholding information using the Circular C
It-5 form
I-9 form
Act 34 form
PA Child Abuse History Clearance
Child Abuse Training Video
Van/Bus Information (all staff)
Brotherhood Mutual Insurance form
ICVCFCC Van/Bus form
Vehicle Procedure
School Radio Use
Phone system check list
Security System Training
Evacuation Procedures
Sprinkler system shutdown
Fire Extinguisher
Computer Skill Worksheet Mentor Assignments
First Aid
CPR card
Body Fluids Procedure
Health Insurance Reimbursement (full time employee only)
Life Insurance (full or 20 hour per week permanent employee only)
IRA
PSECU (Credit Union)
2. New employees are given the employee checklist (see attached), with all of the corresponding paperwork. They are required to turn in the financial paperwork, which assures that they have received all of the payroll information necessary. Then that data is transferred to the computer.
3. The accounting department trains employees for the areas they are responsible for and, they have to sign off that they have completed the rest of the other trainings that are listed.
4. Payroll Deductions: Staff review all deduction options with the accounting department when they become an employee and then annually at their anniversary thereafter. All questions about withholding should be addressed to the fiscal officer in charge of payroll. The following deduction options are available:
* Employees can choose to establish an IRA by completing an IRA worksheet, and if they choose to start one, they can have a specified amount withheld from their paychecks and sent to the appropriate investment firm. On a monthly basis, the bookkeeper mails a check for that amount to the investment firm in that person’s name. The investment firm then mails receipts directly to the individuals.
*Tax Withholding: The Center will withhold all of the appropriate taxes, etc. that are required by law including federal withholding, state withholding, local withholding, and applicable social security taxes.
*Life Insurance: Additional life insurance for employees and family members can be purchased at the special employee discount and withheld from their paychecks.
*An employee may deduct donations to certain funds if it will stay on the paycheck for an extended period of time. Changes cannot be made from month to month or from paycheck to paycheck.
*Tuition cannot be deducted from staff paychecks due to the QuickBooks system. Paychecks can be endorsed and returned to the Center to be applied to tuition.
*The Center will also withhold any other amounts agreed upon by both the agency and the employee in regards to benefits, bonds, savings plans, retirement funds, health benefits, etc.
* All employees receive annual contracts. For most employees they will run according to fiscal year.
5. Payroll Procedure:
*Each employee’s wages needs entered in the system. When payroll is made, the bookkeeper needs to enter the amount of hours, or time, and the computer calculates all of the amounts, including taxes and deductions.
*Pay Period:The Center follows a semi-monthly pay period policy. This means that the lst - 15th of the month, and the 16th - end of the month constitute the two pay periods of the month. Funding streams permitting, employees can expect to be paid by 5:00 P.M. on the 5th and 20th of each month. If either of these dates occur on a Saturday, employees can expect to be paid on the previous day, Friday. If either of these dates occur on a Sunday, employees can expect to be paid the next day, Monday. Paychecks will only be distributed to the employee, and not to a spouse, child or friend, etc. unless express permission is given by the employee to the bookkeeper in advance.
If there is a mistake or a question about a paycheck, the employee has until 10 A.M. the following day to let accounting know. If accounting is not notified by then, the employee will have to wait until the next payday for a correction.
Also note that the accounting department is unable to discuss paychecks with anyone but the employee.
*Salaried Employees: Employees hired on a salary basis will have gross pay determined by dividing annual salary by number of pay periods during the year. (i.e. Annual employees take annual salary and divide that by 24. School employees take annual salary and divide that by 20). School employees have the option of a 10 or 12 month pay. This comes with the understanding that in the summer, pays might have to be held several days depending on cash flow.
*Hourly employees: Employees paid on an hourly basis will be paid according to the number of hours worked during the pay period. Hourly employees can expect to have the number of hours scheduled a week in advance in most circumstances, but may be required to work varying hours depending on work load and finances available. Hourly employees may not work more than 40 hours per week.
Timesheets: Hourly employees must turn in a 15 day time sheet twice per month so that the bookkeeper can prepare payroll. Employees are to round to the closest quarter hour, label their responsibilities, and then total their hours. The logs are then turned in to the accounting department. The bookkeeper checks the tabulation of hours, and presents the sheets to the departmental heads for verification. Department heads sign the sheets, and the bookkeeper creates a paycheck. After the checks are printed they are distributed to the proper people for signatures. The accounting department then files a copy of the pay stub with the time sheets.
To determine the salary of employees working half time instead of full time; find the salary amount according to the salary chart with the appropriate number of years experience, then divide by half.
Substitutes are paid a daily rate even in the case of a snow day. Substitutes that work only half a day are paid half the substitute rate. Currently the rate is $65 per day. Employees currently employed by the Center will be paid their regular hourly rate when substituting.
Hourly employees are required to keep their hours or to meet an hourly requirement that has been designated by their supervisor. These employees can be several types:
Full time hourly employees who work part of the year full time and other parts of the year in a part-time schedule.
Hourly employees who turn in their hours every pay period and that changes based on the hours that they have worked for that pay period.
Hourly employees who have a flexible schedule are required to keep hourly timesheets because at times their hourly requirements will change.
There are several types of employees who are required to keep hourly timesheets at the Center. They are:
Faculty members who work full or part days or substitute on a regular basis.
Support staff whose office hours are tracked by an hourly timesheet.
Bus drivers whose hours of driving time or maintenance time on their vehicles are tracked on a timesheet. Other employees who are required to turn in timesheets based on their individual contractual relationship with the Center.
Guidelines for keeping hourly timesheets are different from program to program.
Hours of work will be documented from the time that an employee reports to his designated work area at the Center until he leaves that designated work area, but shall include only the time that the employee is actively working if the job activity allows an employee to take personal time during the day.
Bus drivers can begin documenting their start time when the driver walks to his / her bus in the morning and begin the pretrip. Note: Working hours do not officially begin until a driver is actually actively doing his / her pretrip and will include driving time and the drive time to the driver’s home. NOTE: If a driver stops to visit or to attend to a personal errand while on their route, timesheets must reflect a deduction for personal time. For all other employees, start time begins when the employee reports to their work place. For mechanics, start time begins when work in the garage has begun. For office staff, start time begins when the employee reports to his / her desk and begins to work. For faculty members, start time begin when they report to their classroom or their first meeting.
During the day, every employee has the right to take half an hour off for lunch. This time must be cleared with their supervisor. It is important to note that lunch is not paid time at the Center. Many of the employees, with their supervisor’s approval, are permitted to work through lunch - this definitely means working through lunch. If employees choose to talk or to relax and take a 30-minute lunch, they may choose to do so, but their timesheet for eight hours of work should reflect 7.5 hours.
The same is true for breaks. If employees feel that they need to take breaks during the day, they may do so and deduct that time from their timesheet. Employees may also, again with their supervisor’s approval only, designate part of their work to personal tasks. Those hours cannot be counted toward paid time.
Special notes: For non-salary employees, work plans need to be adjusted based on snow days, snow delays, or any other nonscheduled time that staff are not working. Hours need to be adjusted accordingly and made up.
Timesheets must be kept on a daily basis. Staff may not “guess” at the end of each pay period the hours they worked. Employees must accurately record their actual work time.
Staff may be asked to allocate their hours to a certain department or certain task in that department. When an employee is instructed by a supervisor to allocate their workday to different projects / departments, their hours must be broken up accordingly working on different projects so that the budgeting committee can effectively get the dollars where they need to be. Bus drivers and mechanics may be asked to split driving time verses maintenance time, verses administrative time based upon the variety of jobs that they may be asked to do. This is to ensure that all the budget items get in the correct categories.
An employee’s signature on his / her timesheet indicates that he / she verifies that the worked hours indicated are accurate and will stand behind hours listed. A supervisor’s signature on a timesheet means that to the best of their ability, they are verifying that employees worked the listed hours. Timesheets must be submitted in a timely manner in order to meet payroll needs. Timesheets that are on a semimonthly pay period must be submitted by the 15th and the last day of the month in order to meet payroll deadlines of the 20th and the 5th.
NOTES ON FIGURING SALARY NUMBERS FOR HOURLY EMPLOYEES:
*Salary numbers for hourly employees were figured using the days that they are scheduled to work and multiplying that number by the hours that they are scheduled to work. That number (total amount of hours scheduled to work) is then multiplied by their hourly rate from the salary scale. Their total salary is then divided by how many times they get paid over the course of the school year.
*Days that were not figured into the salary are holidays. Numbers for employees that work more hours during the school year, then switch to part-time during the summer are included in their salary. A calendar with the employee’s scheduled work days will be issued to the employee so they will then know what days they are responsible for working.
*All employees are responsible for making up their missed time. If an employee does not make up their missed time, it will be taken off their last paycheck for that year.
*It is up to the employee to keep track of their hours and any missed work time and notify their supervisor. Any extra hours that an employee works must be cleared with their supervisor first and then the accounting department must be given a time-sheet with the amount of extra hours. All time sheets need to be signed by the employee and their supervisor.
*Employed Consulting/Contracting Work: It is assumed that any work employees obtain as outside consulting or contracting work that occurs as part of their profession is related to their relationship with the Center if:
A) That relationship is with an organization within the Center’s sphere of influence.
B) The work done is related to the employee’s job at the Center.
C) There was no pre-existing relationship before the employee became a part of the Center.
D) No pre-existing contract or service existed before the employee entered into a relationship with the Center.
If the above conditions are met, then one of the following conditions must apply:
A) Employee must work out with their supervisor if consulting work will be done as part of salaried work (hence, payment/contract for work will be with the Center).
Or
B) Contracted work will be done on employee’s time which will require payment to be made to the Center, and 10% deducted (plus any other material or support expenses) to cover the Center’s FICA, Worker’s Comp. and administrative costs. The remaining 90% is then entered as gross wages for speaking on the next paycheck for the employee.
*Funding Stream Delays: Since 80% of the Center’s budget is comprised of payroll, should the Center experience funding stream problems, payroll may have to be late. Should the event of this be likely, the accounting department will talk with the executive director to determine the best course of action. The director will then determine how to discuss this with all or part of the staff to address the issue.
* The accounting department keeps the files on employee financial records and information. Confidential personnel files are kept locked in the executive director’s office.
*In January, the accounting department reconciles the W-2 totals with the ledgers. Since the W-2's are generated by the computer, the bookkeeper confirms each amount, prints them out, distributes them to employees by January 31st or as soon as possible, and to the appropriate agencies by their deadlines.
6. Holiday Benefits:
*The Center will observe the following holidays throughout the calendar year:
New Year's Day, Presidents' Day, Easter Break, Memorial Day, Independence Day (full time school year and part time summer, Labor Day, Veteran's Day, Thanksgiving Break, Christmas Break. All employees will take the holidays on the days indicated, with the exception of programs, which because of the nature of the program, must be scheduled otherwise. These program employees will receive the same holiday time but may schedule it differently according to the program supervisor to assure adequate coverage. This holiday time must be arranged within two months of the holiday.
*The vacation holiday only pertains to full-time, full-year employees.
*Specific dates for the holidays will be approved and announced by the Board of Directors in a yearly calendar.
7. Vacation benefits are recorded by the employee and are received as defined by contract. On each payroll stub the amount of vacation days remaining will be listed by the accounting department.
8. Snow days are treated as work days for all employees. Non-full year faculty will have their calendar adjusted accordingly. Full-time, full-year employees will have to work on the snow day or take a vacation or personal day. Full-time & part-time non-faculty employees can work the snow day, or make it up by working a non-scheduled work day pending the approval of their supervisor. Full-time, non-faculty employees may also use a personal day. All employees may arrive at a reasonable time that allows for safe driving conditions without deduction.
9. Notification of the accounting department by program supervisors: The supervisors of salaried employees are to inform the accounting department any time employees use sick or personal days or are otherwise absent. The accounting department will record this absence to assure that employees are documenting their time off. Employees then complete the proper form, and get a signature from their supervisor. With each pay, employees are given a list of how many sick and personal days they have remaining.
10. Benefits that affect payroll:
*Tuition benefits:Professional employees who are regularly scheduled to work over 1,350 hours annually will receive the benefit of free tuition for children who are in their immediate family. This tuition will be assessed on a monthly basis, and should they not meet the qualifications for this policy they will be responsible for the full amount of the year's tuition.
*Professional employees who are regularly scheduled for 750 hours per year, or half-time, will be eligible for the benefit of half of the cost of tuition for children in their immediate family.
*Tuition Benefits for professional employees will be defined by the number of scheduled hours of work. The hours worked during the school year and summer hours will determine the amount of the benefit.
Hours Worked During School Year Summer Hours Benefit
(8-16/6-15) (6-16/8-14)
40 hours 20 hours