SUGGESTIONS Improving accountability
Types of recommendations made by Cohen & amp; Co. to nonprofit agencies that receive the city's federal money:
Create formal, written policies for purchasing, accounting and grant compliance.
Maintain a general ledger.
Maintain a current journal of all cash disbursements.
Listing of cash receipts should be up to date.
Chart accounts and identify revenues and expenditures by grant type and expenditure.
Bank reconciliations should be prepared and reviewed by someone other than the check writer.
Bank statements and canceled checks should be received by someone other than the person reconciling the accounts.
Timely bank reconciliations should be prepared.
Several price or rate quotes for purchases should be obtained and documented.
Purchase orders should be approved before purchase is made.
Consider contracting with another nonprofit or outside accountant familiar with federal requirements to provide all accounting services.
Consider having a board member become a signer on the bank account.
The board should take a more active role in monitoring financial aspects of the organization.
Time records should be maintained that document time spent on different grants and activities.
Pay rates should be authorized in writing.
Payroll checks and journals should be reviewed by someone independent of payroll processing.
Submit funding requests more frequently to facilitate cash flow.
Budgets should be prepared for all income and expenses.
Funding requests should be signed by the director or treasurer before going to the city.
Procedure for record retention should be reviewed.