Post on 13-Nov-2014
description
Eagle Consulting
Leadership Long Beach
Accounting Policies and Procedures
IntroductionThe Project
Eagle Consulting
• Willie Cole• Fabian Georges• Steven Jorgensen• Jason Nick• Sheri Smoody
The Team
Leadership Long Beach
The Mission Develop and Connect Principled Leaders to Strengthen the Community
Leadership Long Beach
• A Non-Profit Organization Established in 1989
• Support Civic Programs
• Educate and Produce Leadership
• Serve the Community
Organizational Chart
Project Scope
• Accounting Policies and Procedures
• Bookkeeping Intern Training Procedures
• Enhanced Financial Reporting
• Improved Document Control
• Improved Internal Controls
Solution
• Accounting Policy and Procedures Manual
• Document Control and Reconciliation
• Intern Procedure Manual
• Increased Functionality in QuickBooks
Client Meeting
The Accounting Policies and Procedures ManualThe Deliverables
The Deliverables
• Blueprint for Procedures and Policies
• Internal Control• Accuracy• Compliance• Safeguard Assets• Deter Fraud/Theft• Transparency Accounting Polices
and Procedures Manual
Cash In & Cash Out
Cash In
• Contributions• Fundraising• Tuition• Membership
Dues
Cash Out
• Payments to Vendors• Staff Training and
Redevelopment• Licenses/Renewal
Fees • Petty Cash
Organization Expenses and Reconciliation
• LLB Meeting Expenses• Marketing and Promotional Materials• Employee Reimbursements• Credit Card Usage• Bank Account Reconciliation Policy
Compliance
• Property and Equipment
• Personnel Records
• End of Month/Year End Close
Policy Statements
• FDIC Insured Bank
• Bank Account Signatures
• Donations over $50
• Correcting Mistakes on Documents
The FormsThe Internal Controls
Accounting Forms
• Organization
• Communication
• Documentation
• Internal Control
Forms List
FORM FORM REVISIONNO. NAME DATE (IF ANY)500 Donation Receipt501 Donation Receipt Log502 Check Request Form503 Funds Allocation Form504 Journal Entry & Allocation Form 505 Stop Payment/Void Check Request Form506 Voided Check Log507 Bank Reconciliation Spreadsheet
507-A Bank Reconciliation Example508 Petty Cash Fund Disbursement Form509 Petty Cash Reconcilitation Form510 Donated Property Form511 Stop Payment Authorization Letter to Bank512 Funds Received Log 513 Cash Receipts Control Form514 Fixed Asset Log515 Reimbursement Request Form516 Mileage Expense Log
ACCOUNTING FORMS LIST
Check Request Form
Please prepare a check to the following payee: Payee: Check Amount: $0.00 Date Needed:
Address:
Acct. No. Class Amount Acct No. Class Amount
TOTAL: $0.00
form 502 ver. 1
CHECK REQUEST FORM
Accounts to be Charged
Requested by:_________________________________Date requested: ____________________, __________
Approved by:__________________________________Date approved ____________________, __________
Please attach supporting documents. The total of these amounts must equal the check amount.Special Handling: ____________________________________________________________________________________Other: _____________________________________________________________________________________________
Journal Entry Form
Reason for adjustment:
Journal Entry:Account to Adjust Debit Credit
$0.00 $0.00 debits must = credit
Requested byName:
Title:
Date:
Approved byCPA or Treasurer: Date:
form 504 ver. 1
JOURNAL ENTRY APPROVAL & ALLOCATION FORM
Bank AccountReconciliation
BANK RECONCILIATION SAMPLE
Date of Check Check Date of Check CheckCheck Number Amount Check Number Amount
11/12/2011 8354 $110.00 $
11/15/2011 8425 $6.00
11/27/2011 8520 $13.00
12/16/2011 8538 $45.00
12/24/2011 8588 $123.00
12/24/2011 8604 $89.12
12/31/2011 8650 $224.20
$610.32 A
Check Check Check Check Check Check Check CheckNumber Amount Number Amount Number Amount Number Amount
8692 $111.34 8759 $80.00 $ $
8698 $22.00 8761 $317.50
8721 $10.00 8762 $138.43
8730 $60.00 8763 $69.95
8732 $129.95 8764 $300.00
8733 $230.00 8765 $512.00
8739 $300.00 8766 $1,500.00
8742 $521.00 8768 $75.00
8751 $679.00 8769 $295.00
8752 $100.00 8770 $17.00
8753 $25.00 8771 $64.75
8754 $83.23 8772 $39.00
8755 $12.00 8773 $175.00
8756 $150.00 8774 $295.89
8757 $40.00
8758 $59.00
$6,412.04 B
$7,022.36 A+B
Bank Reconciliation Outstanding Checks
For Account Checking # 1010 F & M as of : January 31, 2012
Outstanding checks are those checks written and recorded in the accounting records, but have not yetcleared the bank checking account. In other words, these checks have not yet been listed on a previousbank statement or on the current bank statement.
Checks written in previous months which have not yet cleared the bank:
Total of checks written in previous months that remain outstanding:
Checks written during the month of the bank statement but have not cleared the bank:
Grand Total of All of the Outstanding Checks as of Date Shown at Top of Form:
form 507-A ver. 1
Total of checks written during the month of the bank statement that remain outstanding:
$8,013.56
+ $250.00
- $7,022.36$1,241.20 A
$1,489.60
Interest from bank (debit Cash , credit Interest Revenue ) + $1.26
Other: Deposit error (debit Cash , credit cash sales ) + $10.00
Other:__________________(debit Cash , credit __________________________)+
$1,500.86
Bank service charges (debit Miscellaneous Expense , credit Cash ) - $18.75
NSF checks (debit Accounts Receivable , credit Cash ) - $161.91
NSF check bank fees (debit __________________________, credit Cash )- $20.00
Other: _________________(debit __________________________, credit Cash )- $59.00 Other: _________________(debit __________________________, credit Cash )- $
$1,241.20 B
Bank Reconciliation for Account____________________
Ending Balance on Bank Statement Dated: January 31, 2012Adjustments to Bank Statement Balance:
Add : Deposits in transit (See Note 1 below)
Subtract : Outstanding checks (Also see Note 2 below.)Adjusted Balance on Bank Statement
Balance per Accounting Records or Check Register (as of date of bank statement): 1/31/2012
Adjustments to be Entered in Accounting Records:
Add : Additions found on bank statement that are not in accounting records:
Subtract : Deductions found on bank statement that are not in accounting records:
Adjusted Balance per Accounting Records (as of date of bank statement)
The bank statement is reconciled when the amounts shown as A and B are identical.
Note 1. Deposits in transit are amounts received by the company as of the date of the bank statement but not
yet appearing on the bank statement.
Note 2. Checks written as of the date of the bank statement but not yet appearing on any bank statement
(previous or current). Use Form G5 to list the check numbers and amounts of the outstanding checks.
Expense Reimbursements
Date Expense Amount Mileage $0.00
TOTAL EXPENSES: $0.00
Number of miles 0
Approved By:Name: Name:
Signature: Signature:
Date: Date:
For Accounting Use OnlyAccount # Amount Account # Amount
5040-Business Relations 5370-Travel (mileage, meals, parking)5070-Conferences & Training5080-Decorations 5130-Entertainment Other Accounts:5170-Meals5270-Receptions5305-Retreat (Board)5320-Office Suppliesform 515 ver. 1 TOTAL (must match total above): $0.00
REIMBURSEMENT REQUEST FORM
The Intern ManualThe Bookkeeping
The Intern Station
Intern Duties
• Posting Payments
• Posting to Accounts
• Assembling Deposits
• Filing Documentation
Intern Duties
• Paying Bills
• Writing Checks
• Posting Expenses to Correct Accounts
• Filing Documentation
Step by Step Instructions
• Click on “Banking”
• Choose “Make Deposits”
• Start Typing the Customer’s Name in the “Received from” Drop Down Menu
• Select the Correct Customer
Screenshots of Quick Books
Challenges of QuickBooks
• Reports
• Financial Statements
• Duplication of Efforts
• Reconciling Bank Accounts
• Chart of Accounts
Cost and BenefitsThe Payoff
Cost and Benefits Analysis
• Cost Effective Intern/Accounting Manual• Pro Forma Cost Evaluation • Benefits to Our Customer
Cost Parameters
• Analyze the Existing System and Policies
• Developing Best Use of Technology
• Producing Printed and Digital Deliverables
• The Deliverable is Intellectual Property
• Existing Hardware, Software and Office Space
Benefits
• Document the Policies and Procedures
• Relieves the Director of Some Accounting Responsibilities
• Allows the Director More Time to Generate Revenue
• A 10 percent increase or $30,000
Costing
• Total Team Time to Date • 377.24 Man Hours • $65.00 Hourly Rate• $26,000
• 5 Members on the Team • 75.5 Man Hours Per Person • Annual Labor Cost of $4,900 Per Person
• Polled Costing Range• $3,000 to $12,000 Plus Materials
Break Even Point
Actual
• Immediate Benefit Upon Implementation• Zero Cost to
Recover
Pro Forma
• Estimated Cost $9,800• Estimated Annual
Revenue Increase $30,000• Break Even 3.92
Months
Break Even Point
1st month 2nd 3rd 4th 5th 6th0
0.5
1
1.5
2
2.5
3
3.5
Break Even Point
0-cost Pro Forma
Time line to recoop
Axis Title
Axis Title
Quality AssuranceTesting Quality
Technology
Time
Cost
Access 0
5
Project Constraints
Technology
Time
Cost
Access 0
5
Project Constraints
Quality Assurance
• Policies and Procedures• Intern Duties and Processes• Version Control
TestingThe Video
RecommendationsThe Future
Recommendations
• Establish Proper Interface Between QuickBooks and Bank Accounts
• Interface QuickBooks and DonorPerfect
• Enter Annual Budget into QuickBooks
• Scale Back Existing Chart of Accounts
Recommendations
• Implement Password Internal Controls
• Implement Daily or Weekly Computer System Backup Procedures
• Implement a Written Safety Program
ConclusionThe Evaluation
Conclusion
• Accounting Manual
• Intern Manual
• Benefits for LLB
Size of the Project
Utilizing QuickBooks Features
Limiting Scope
CommunicationLogistics
• Leadership Long Beach• Jeff Williams (Executive Director LLB)• Rolando Cruz (Treasurer LLB)• Oscar Cosby (Communications Director)
• Colleen Briski (Devry Librarian)• Heather Burke (Devry Librarian)• Professor John Rollins
&
Professor Russ Walker
Thank You
Questions?