MONEY HANDLING POLICIES & PROCEDURES

 

POLICY STATEMENT

The establishment of strong internal controls for money collection is necessary to prevent mishandling of funds and to safeguard against loss. Strong internal controls are also designed to protect AVAA (Alabama Veterans Affairs Association) board members from inappropriate charges of mishandling funds by defining his/her responsibilities in the handling process. The AVAA Board will review policies and procedures every year during the first quarter Board meeting and after the election of a new board of directors, to assure knowledge of and compliance with AVAA (Alabama Veterans Affairs Association) policy.

PROCEDURES

  • There should be three designated signors on the AVAA bank account at all times, the Treasurer, the President and one other.

  • Two out of the three signatures of the designated AVAA signors (always to include the current treasurer) must be provided on all checks written.

  • All checks should be deposited within (2) business days following receipt as well as receipts immediately emailed directly to payees. A copy of the receipt should be retained in the electronic record.

  • The deposit slip should include the nature of the deposit and list all checks separately by payer.

  • Postdated checks should not be accepted for payment.

  • Un-deposited checks are prohibited.

  • Persons making payments to AVAA shall be advised to make checks payable to the applicable organization AVAA; not to the person collecting the money.

  • All cash, coins, and checks received shall be immediately placed into a banker’s bag for safekeeping.

  • The AVAA treasurer must verify and receipt all monies. A second person must count all monies before money is placed in the banker’s bag to verify the amount and also sign the receipt. A copy of the receipt should be placed in the banker’s bag with the monies. All receipts should be totaled to ensure that the monies being deposited equal the total monies receipted. Attach all receipts to copy of deposit slip.

  • Cash/checks must be recorded on the deposit slip in the appropriate space

  • Only depository issued deposit slips including the appropriate account number(s) and sub code(s) are to be used.

  • Keep copies of all receipts. Store them as securely as you would any confidential information.

  • Receipts for purchases should have the name of the purchaser, the purpose and the date written clearly at the top of the receipt. Receipts that do not include this information will be returned to the purchaser without reimbursement.

  • Checks and monies collected during an event should be deposited each day. Two (2) board members should be present. One of two board members should be a signor.

  • After the deposit is made, the person responsible for making the deposit will bring back a bank receipt. The original preparer then checks for correct posting and attaches the receipt to the appropriate copies of the checks for filing.

  • If a check is returned for insufficient funds, the person or institution that issued the check must pay bank return check fee. The amount of this fee will be posted at the registration table and will be included in future registration materials.

  • Only the AVAA President and Treasurer will have an AVAA debit card as well as access to online banking information.

  • If a debit card is lost or stolen, it is the responsibility of that individual to notify the treasurer as well as the bank, so appropriate protective action can be taken.

  • Each person(s) who has access to credit or debit card information is responsible for protecting the information and the card. If card is lost, replacement cost is the responsibility of the bearer who lost the card.

  • If the loss or compromised card is not reported in a timely manner, or if the loss or compromise occurs more than once or if there is any other reason to suspect misuse or abuse, the card should be confiscated and held by the third signor until the issue can be resolved.

  • Credit and debit card information must be destroyed as soon as it is no longer necessary.

  • Receipts supporting credit/debit card usage MUST be attached to the quarterly accounting report. The receipts should be stapled to a piece of paper and attached to the accounting report.

  • In addition to the name of the purchaser, the purpose and the date, the original receipts for all debit/credit card transactions must be signed by at least 2 members of the AVAA board.

  • If the card is used in error or signed, itemized receipts are not supplied; then the person who made the purchase is to remit the payment to AVAA

  • AVAA debit card cannot be used for cash advance, non-business-related purchases or the purchase of alcohol (alcohol will not be reimbursed).

  • Card numbers should not be distributed beyond the cardholder’s designee and should not be saved in online accounts other than the Regions online banking account and iTunes account for iPads.

  • All checks, receipts, registration forms, and deposit slips must be scanned and saved on AVAA treasurer flash drive and stored properly.