policy #1: kppa management's roles and responsibilities
POLICY #3: FINANCIAL-RELATED POLICIES Audit Policy Financial Policy Insurance Policy
KPPA Policies and Procedures #3 First adopted: October 2004 Revised effective: February 6, 2009 Page 1 of 4
AUDIT POLICY The KPPA Budget shall be prepared on a calendar year (January 1 to December 31) basis. An annual Audit of the KPPA financial records, from the most recently completed calendar year shall be completed on an annual basis by an auditor appointed by the President. The auditor shall be a current Board member, with prior experience in auditing. 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 1. Was there an invoice or other supporting documentation for each expenditure tested? 2. Was the payment properly approved? 3. Was the expenditure reasonable and necessary? Receipts 1. Were membership receipts reasonable? 2. Were sponsor booth receipts reasonable? 3. Did the KPPA receive its share of NIGP class tuition? Financial records will be examined during the first quarter of the calendar year, and the results of the audit and any recommendations shall be presented to the Board by the second scheduled Board meeting, usually in May or June. Supplemental audits may be performed throughout the year as directed by the President or the Board.
KPPA Policies and Procedures #3 First adopted: October 2004 Revised effective: February 6, 2009 Page 2 of 4
FINANCIAL POLICY PURPOSE The purpose of this section is to define a standard format for KPPA consistent with standard accounting practices and to provide guidelines so that KPPA can be compliant with state and federal laws, including those established by the Internal Revenue Service (“IRS”). KPPA will be maintained on a cash basis. FINANCIAL RECORDS The Treasurer shall be responsible for overseeing the preparation and submission of tax and financial records. Copies must also be sent to NIGP headquarters. The Treasurer must retain all records and returns for the entire period of the organization’s existence. PURCHASING AND PAYMENT OF DEBT Initial control of KPPA funds is done by an established budget. All payments must first be approved by the President of KPPA either by email, check request form or his/her signature on the actual receipt. Any charges that the President makes must be approved by the Vice-President as described above. All purchasing and payment of debt will be recorded and controlled by the Treasurer. A copy of the purchase invoice, or other document, 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 audit committee chairperson to audit and report findings to the board. When completed the audit chairperson will return the file to the Treasurer to keep on file indefinitely. This file should be moved to the next Treasurer when they take office. The Treasurer will be responsible to maintain a check register. KPPA uses Quicken for its record keeping. KPPA will be responsible to purchase upgrades to this software as needed. KPPA accounts will be with an FDIC-insured financial institution. The outgoing KPPA Treasurer will be required to reconcile the checkbook balance to the latest bank statement. RECEIPTS AND EXPENDITURES REPORT KPPA Treasurer will create a Receipts and Expenditures Report to report to the Board at each board meeting. The expense and income will be summarized by category. KPPA Policies and Procedures #3 First adopted: October 2004 Revised effective: February 6, 2009 Page 3 of 4
PAYMENT OF DEBTS All outstanding accounts shall be paid within thirty (30) calendar days upon receipt of a proper invoice. Treasurer must request and receive approval of the President prior to disbursement of any funds. Approval if received electronically shall be stapled to the pay document when returned from bank. The President is to be notified of any problems concerning payment of accounts. All accounts are to remain in good standing. INSURANCE POLICY KPPA shall have both, general liability insurance and Directors and Officers’ insurance. This coverage will provide important protection from potential liability, and payment of defense costs, even if KPPA is found not to be liable.
KPPA Policies and Procedures #3 First adopted: October 2004 Revised effective: February 6, 2009 Page 4 of 4
KPPA Policies and Procedures #3 First adopted: October 2004 Revised effective: February 6, 2009 Page 1 of 4
AUDIT POLICY The KPPA Budget shall be prepared on a calendar year (January 1 to December 31) basis. An annual Audit of the KPPA financial records, from the most recently completed calendar year shall be completed on an annual basis by an auditor appointed by the President. The auditor shall be a current Board member, with prior experience in auditing. 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 1. Was there an invoice or other supporting documentation for each expenditure tested? 2. Was the payment properly approved? 3. Was the expenditure reasonable and necessary? Receipts 1. Were membership receipts reasonable? 2. Were sponsor booth receipts reasonable? 3. Did the KPPA receive its share of NIGP class tuition? Financial records will be examined during the first quarter of the calendar year, and the results of the audit and any recommendations shall be presented to the Board by the second scheduled Board meeting, usually in May or June. Supplemental audits may be performed throughout the year as directed by the President or the Board.
KPPA Policies and Procedures #3 First adopted: October 2004 Revised effective: February 6, 2009 Page 2 of 4
FINANCIAL POLICY PURPOSE The purpose of this section is to define a standard format for KPPA consistent with standard accounting practices and to provide guidelines so that KPPA can be compliant with state and federal laws, including those established by the Internal Revenue Service (“IRS”). KPPA will be maintained on a cash basis. FINANCIAL RECORDS The Treasurer shall be responsible for overseeing the preparation and submission of tax and financial records. Copies must also be sent to NIGP headquarters. The Treasurer must retain all records and returns for the entire period of the organization’s existence. PURCHASING AND PAYMENT OF DEBT Initial control of KPPA funds is done by an established budget. All payments must first be approved by the President of KPPA either by email, check request form or his/her signature on the actual receipt. Any charges that the President makes must be approved by the Vice-President as described above. All purchasing and payment of debt will be recorded and controlled by the Treasurer. A copy of the purchase invoice, or other document, 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 audit committee chairperson to audit and report findings to the board. When completed the audit chairperson will return the file to the Treasurer to keep on file indefinitely. This file should be moved to the next Treasurer when they take office. The Treasurer will be responsible to maintain a check register. KPPA uses Quicken for its record keeping. KPPA will be responsible to purchase upgrades to this software as needed. KPPA accounts will be with an FDIC-insured financial institution. The outgoing KPPA Treasurer will be required to reconcile the checkbook balance to the latest bank statement. RECEIPTS AND EXPENDITURES REPORT KPPA Treasurer will create a Receipts and Expenditures Report to report to the Board at each board meeting. The expense and income will be summarized by category. KPPA Policies and Procedures #3 First adopted: October 2004 Revised effective: February 6, 2009 Page 3 of 4
PAYMENT OF DEBTS All outstanding accounts shall be paid within thirty (30) calendar days upon receipt of a proper invoice. Treasurer must request and receive approval of the President prior to disbursement of any funds. Approval if received electronically shall be stapled to the pay document when returned from bank. The President is to be notified of any problems concerning payment of accounts. All accounts are to remain in good standing. INSURANCE POLICY KPPA shall have both, general liability insurance and Directors and Officers’ insurance. This coverage will provide important protection from potential liability, and payment of defense costs, even if KPPA is found not to be liable.
KPPA Policies and Procedures #3 First adopted: October 2004 Revised effective: February 6, 2009 Page 4 of 4
