October 2004 Revised: Febru
POLICY #3 FINANCIAL RELATED POLICIES Audit Policy Financial Policy Insurance Policy
First Adopted: October 2004 Revised: February 6, 2009 Revised: December 2013
AUDIT POLICY The purpose of the Audit Policy is to ensure that receipts and expenditures are handled and documented properly. In doing so identify any shortcomings and make recommendations that strengthen the policy to ensure sound management of the Kentucky Public Procurement Association’s (Association) finances. An audit of the Association’s financial records, from the most recently completed calendar year shall be performed on an annual basis by an the Auditor appointed by the President. The Auditor shall be a current member of the Board of Directors, preferably with prior auditing experience. If a current Board member is appointed, who does not have such experience, the President may appoint additional members from KPPA membership, with such experience, to assist the Board member. The audit shall include a review of both expenses and receipts and shall include, at a minimum, the following tests: Expenditures
Was there an invoice or other supporting documentation for each expenditure tested? Was the payment properly approved? Was the expenditure reasonable and necessary?
Receipts
Were membership receipts reasonable? Were sponsor booth receipts reasonable? Did the Association receive its share of NIGP tuition?
Financial records will be examined during the first quarter of the calendar year. The results of the audit and any subsequent recommendations shall be presented to the Board by the second scheduled Board meeting. Supplemental audits may be performed throughout the year as directed by the President.
FINANCIAL POLICY The purpose of the Financial Policy is to ensure that the Association operates fiscally consistent with standard accounting practices. In addition, provides guidelines than ensure compliance with applicable state and federal laws, including those established by the Internal Revenue Service. The Association will be maintained on a cash basis.
Financial Records The Association funds shall be deposited in FDIC insured financial institutions. The Treasurer shall be responsible for the preparation and submission of tax and financial records. Copies of which shall be presented to the President and maintained in a permanent file and as such shall never be destroyed. Purchasing and Payment of Debt All payments for less than $5,000.00 made against the Association’s treasury shall require the approval of the President and/or the Vice-President. Payment documents shall require the signature of the President or the Treasurer. All payments for $5,000.00 or more made against the Association’s treasury shall require the approval of the President and the Vice-President. Payment documents shall require the signatures of the President and the Treasurer. The President at his/her discretion may authorize payment for an expenditure up to, but not to exceed ten percent (10%) or $250.00 of the budgeted amount, which ever is lower. All purchasing and payment of debt will be recorded and controlled by the Treasurer. All payments shall be paid within thirty (30) days upon receipt of the product or service and a proper invoice (whichever is received later). The Treasurer will be responsible for maintaining a check register. Any software and/or upgrades necessary to assist the Treasurer shall be purchased by the Association. The Treasurer will create a Receipts and Expenditure Report to be used to report the expense and income activity (by category) that has occurred since the previous Board meeting. A copy of purchase invoices or other documents will be maintained in a sequential file to ensure that all transactions are recorded. The approved email (if applicable) or check request form will be attached to each receipt. This file will be given to the auditor for review. Upon completion the file will be returned to the Treasurer and placed in the permanent file.
INSURANCE POLICY The Association shall have both, general liability insurance and Directors and Officers insurance in place at all times. This coverage will provide important protection from potential liability and payment of defense costs, even if the Association is found not to be liable.
First Adopted: October 2004 Revised: February 6, 2009 Revised: December 2013
AUDIT POLICY The purpose of the Audit Policy is to ensure that receipts and expenditures are handled and documented properly. In doing so identify any shortcomings and make recommendations that strengthen the policy to ensure sound management of the Kentucky Public Procurement Association’s (Association) finances. An audit of the Association’s financial records, from the most recently completed calendar year shall be performed on an annual basis by an the Auditor appointed by the President. The Auditor shall be a current member of the Board of Directors, preferably with prior auditing experience. If a current Board member is appointed, who does not have such experience, the President may appoint additional members from KPPA membership, with such experience, to assist the Board member. The audit shall include a review of both expenses and receipts and shall include, at a minimum, the following tests: Expenditures
Was there an invoice or other supporting documentation for each expenditure tested? Was the payment properly approved? Was the expenditure reasonable and necessary?
Receipts
Were membership receipts reasonable? Were sponsor booth receipts reasonable? Did the Association receive its share of NIGP tuition?
Financial records will be examined during the first quarter of the calendar year. The results of the audit and any subsequent recommendations shall be presented to the Board by the second scheduled Board meeting. Supplemental audits may be performed throughout the year as directed by the President.
FINANCIAL POLICY The purpose of the Financial Policy is to ensure that the Association operates fiscally consistent with standard accounting practices. In addition, provides guidelines than ensure compliance with applicable state and federal laws, including those established by the Internal Revenue Service. The Association will be maintained on a cash basis.
Financial Records The Association funds shall be deposited in FDIC insured financial institutions. The Treasurer shall be responsible for the preparation and submission of tax and financial records. Copies of which shall be presented to the President and maintained in a permanent file and as such shall never be destroyed. Purchasing and Payment of Debt All payments for less than $5,000.00 made against the Association’s treasury shall require the approval of the President and/or the Vice-President. Payment documents shall require the signature of the President or the Treasurer. All payments for $5,000.00 or more made against the Association’s treasury shall require the approval of the President and the Vice-President. Payment documents shall require the signatures of the President and the Treasurer. The President at his/her discretion may authorize payment for an expenditure up to, but not to exceed ten percent (10%) or $250.00 of the budgeted amount, which ever is lower. All purchasing and payment of debt will be recorded and controlled by the Treasurer. All payments shall be paid within thirty (30) days upon receipt of the product or service and a proper invoice (whichever is received later). The Treasurer will be responsible for maintaining a check register. Any software and/or upgrades necessary to assist the Treasurer shall be purchased by the Association. The Treasurer will create a Receipts and Expenditure Report to be used to report the expense and income activity (by category) that has occurred since the previous Board meeting. A copy of purchase invoices or other documents will be maintained in a sequential file to ensure that all transactions are recorded. The approved email (if applicable) or check request form will be attached to each receipt. This file will be given to the auditor for review. Upon completion the file will be returned to the Treasurer and placed in the permanent file.
INSURANCE POLICY The Association shall have both, general liability insurance and Directors and Officers insurance in place at all times. This coverage will provide important protection from potential liability and payment of defense costs, even if the Association is found not to be liable.
