1. General accounting policies
The accounting system follows general accepted accounting policies (GAAP).
Financial statements are prepared using the accrual (or cash) basis of accounting.
The fiscal year is July 1 through June 30.
2. Budgets
The annual budget for the fiscal year is prepared by the Finance Committee or Executive Director working closely with the appropriate staff.
The board of Directors approves the budget annually, prior to the beginning of the fiscal year if possible.
Budgets are prepared using company approved formats.
The budget is compared to the monthly financial statements in order to monitor the actual results.
The budget is reviewed mid-year and adjusted as necessary to reflect changing conditions. The Board of Directors approves proposed changes in the budget which exceed $1000.00 or 50% of the line item, whichever is greater.
3. Financial Statements
Monthly and Quarterly financial statements are completed and presented to the Finance Committee within 30 days of the close of the period.
A financial overview and Profit & Loss Statement through the end of the previous month / quarter are provided to the Board of Directors at each Board mooting.
4. Roles
Treasurer and Finance Committee
The Board Treasurer chairs the Finance Committee, which is composed of members designated by the Board of Directors. The Finance Committee has whatever authority as may be designated by the Board of Directors, including:
- choosing the auditor
- performing regular, in-depth reviews of the organization's financial activity
- overseeing the development of the annual budget
- determining the allocation of investment deposits
Executive Director
The Executive Director has the responsibility for administering these policies has compliance with procedures that have been approved by the Board of Directors. The ED has whatever authority as may be designated by the Board of Directors, including:
- making spending decisions within the parameters of the approved budget
- employing and terminating personnel
- determining wage levels
- creating and amending operating procedures and controls
- making decisions regarding the duties and accountabilities of personnel and the delegation of decision-making authority
- entering into contractual agreements within board designated parameters
Policies and procedures which are not specifically addressed by this document may be determined by the Executive Director when the financial impact is not over $1000 for any fiscal year. The Board of Directors must approve any unaddressed policy or procedure with an impact of over $1000.
5. Large Purchases
Purchases greater than $1,000.00 are approved by the Executive Director.
Purchases greater than $5,000.00 are approved by the Board of Directors.
Generally, The Naja Group of Colleges seeks three quotations for purchases greater than $250.00 where at least three suppliers are available for that service or product.
Need it as per the guidelines.
Attachment:- Assignment.rar