SJVCEO Accounting Policies & Procedures

Accounting Policies and Procedures These policies and procedures were adopted by the Board of Directors on July 16, 2008.

I. Written Authorizations, Check Signing A. Prior written approval is required for all financial transactions. The Executive Director or an Officer of the Board of Directors can approve financial transactions.

1. The Chair of the Board shall approve all payments made to the Executive Director.

2. The Executive Director shall approve all other payments unless the Executive Director is not available in which case, an Officer of the Board can approve payments B. Financial transactions that are contained in an approved budget do not require additional approval from the Board of Directors but must be reviewed and approved by the Executive Director.

C. Transactions that are not contained in an approved budget require written authorization from a member of the Executive Committee.

D. The selection of banks, investments (including the types of investment and use of an investment company or money manager), CPA firms, the number of signatures required on checks, and similar decisions require written approval of the Board of Directors E. The transfer of money between general checking and savings accounts, certificates of deposits, or money market accounts requires written approval from a member of the Executive Committee 1. To the extent that funds are available, SJVCEO shall maintain at least 3 months of operating expenses in its general checking account. Excess funds above the 3months of reserves level shall be invested in interest-bearing instruments and/or accounts.

2. If reserves exist and the general checking account drops below the 3-months of reserves level, the Executive Director is authorized to initiate the transfer of funds from reserves into the general checking account to insure that expenses can be processed and paid. The Executive Director shall report the transfer out of reserves at the very next Board of Directors meeting.

F. Board meeting minutes, resolutions, or other written authorization must be signed by an Officer of the Board of Directors.

G. Checks over $5,000 require two signatures.

II. Travel and Expense Reimbursements A. SJVCEO shall not advance funds to Board members, employees, or vendors.

B. Requests for reimbursement of expenses must be submitted within 30 days. The requests must be submitted on the proper form and must include backup receipts or other documentation.

C. SJVCEO will cover coach airfare for the most direct route of travel. Side excursions for personal reasons will not be covered. To every extent possible, flights should be booked at least 21 days in advance to obtain the lowest rates.

D. Lodging will be covered based on standard hotel or motel room rates. Luxury hotels will only be covered if no other lodging is available within a radius of 25 miles. a. In-room movies, massages, mini-bar purchases, and other luxuries are not covered.

E. Mileage will be reimbursed at the highest rate allowed by the Internal Revenue Service.

F. Meals that are reasonable and prudent will be covered.

G. Incidental business expenses such as taxis and tips will be covered but should be reasonable.

III.

Bank Reconciliations A. Bank reconciliations shall be performed every month; the Executive Director should review the reconciliation each month.

B. Stale items will not be carried forward on bank reconciliations a. If a check is still outstanding after 90 days, the payee will be contacted. If the payee has the original check, he/she/it will be encouraged to negotiate the check. If the original check has been lost or misplaced, a replacement check will be issued after placing a stop payment on the original check. b. If a deposit is still outstanding after 60 days, the transaction will be traced. If it cannot be verified, it will be written off.

IV.

Financial Statements, Reporting A. Financial statements shall adhere to Generally Accepted Accounting Principles B. SJVCEO’s books shall be maintained on an accrual basis.

C. Any significant changes in the following requires written approval of a member of the Executive Committee: a. Chart of accounts b. Extensions for non-profit filings c. Type of accounting software the association will use D. The Treasurer shall review the financial statements at least once each month. Financial statements to be reviewed include:

a. Balance sheet b. Profit and loss statement c. Statement of Cash Flows d. Actual compared to budget e. Accounts receivable aging f. Accounts payable aging E. Accounts receivable that are 6 months or older are probably not collectible and will be written off unless the Executive Director or member of the Executive Committee indicates otherwise; a member of the Executive Committee shall approve all write-offs before adjustments are made to the books.

IV.

Miscellaneous Policies and Procedures A. SJVCEO will strive to conduct an annual financial review or audit. If SJVCEO can’t afford an outside CPA firm, a committee of the Board shall be appointed to conduct its own internal audit.