INTERNAL CONTROL POLICY

ROCKLAND ECONOMIC ASSISTANCE CORPORATION

 

 

 

I. GENERAL

  • The Director and the board of directors are responsible for reviewing and/or authorizing all bank accounts and check signing activity.

 

  • Financial institutions where IDA accounts are maintained are notified on a timely basis of any changes in check signatories, following the transition of officers or changes in staff with check signing responsibilities.

 

  • Quarterly budget reports shall be presented to the board of directors for review.

 

  • An annual financial audit as required by laws governing industrial development agencies will be undertaken by a qualified outside auditor.

 

  • If the Corporation receives grants, applicable financial and administrative guidelines relating to specific grant funding shall be followed.

 

  • The Treasurer must provide a Treasurer’s report at each monthly board meeting outlining the cash receipts, disbursements and balances of all IDA bank accounts.

 

II. CASH RECEIPTS

  • It is not the policy of the Corporation to authorize any receipt of cash.

 

  • If cash is received, the cash must be deposited immediately with 24 to 48 hours upon receipt by an authorized person.

 

  • Records of cash received must be totaled and initialized by authorized employees.

 

  • Incoming checks must be restrictively endorsed, “for deposit only” with the organization’s account number, scanned, filed and then deposited.  

 

  • Bank deposit receipts must be compared to the original bank deposit slips and scanned for distribution to the Treasurer.

 

  • Adequate physical controls must be maintained over receipts from the time of receipt to deposit in the bank.

 

III. CASH DISBURSEMENTS

A. Voucher and Authorization

  • The Director must review and approve all vouchers for all disbursements. Any checks above $5,000 must be co-signed by a board member; checks made out to the Director must be signed by a board member.

 

  • Supporting documentation (voucher with original signature and invoice with copy of contract) must accompany checks when presented for signature.

 

B. Checks

  • All disbursements must be made by check.

 

  • Only pre-numbered checks shall be used and always in sequence.

 

  • Signing of blank checks is strictly prohibited. Checks must be made payable to specific payees based upon appropriate documentation; and never to “cash” or “bearer”.

 

  • Prior to preparing checks, payment vouchers should be compared to vendor invoices for accuracy. Checks must be prepared from vendor invoices only and not from a vendor statement.

 

  • Signature stamps may never be used to sign checks.

 

  • Dual signatures are required for any checks of $5,000 or greater. Signatories can be the Director and an authorized board member.

 

  • Access to blank checks must be limited to the Director. Blank check stock must be locked in a secure place when not in use.

 

  • Any voided/spoiled checks must be marked “Void”, shredded with the signature portion removed and retained in a secure place.

 

C. Bank Reconciliations

  • Bank accounts must be reconciled by the comptroller or person responsible on a monthly basis and reviewed by the Treasurer.

 

  • The Director must receive the bank statements, including canceled checks if provided. The statements are then placed in a file for the Treasurer’s review. All check numbers must be accounted for.

 

  • Checks outstanding over 90 days must be periodically investigated, with payment stopped and an entry made restoring such items to cash if appropriate

 

IV. CREDIT CARDS

  • The issuance of credit cards for staff or board members is not permitted.

 

V. REIMBURSABLE PURCHASES, TRAVEL AND EXPENSES

  • Purchase of office supplies by staff is permitted in amounts of less than $100. Reimbursements are approved by the Director or Treasurer.

  • The Board must approve registration and travel expenses for conferences and workshops prior to attendance of staff or Corporation members.

  • Mileage for travel is estimated from the IDA office to the location of the workshop, conference or meeting. 

  • Employees and Board Members must submit a detailed expense record within 30 days of expenses, with supporting documentation, in order to be reimbursed for expenses; and initialed for approval by the Director or Treasurer prior to payment.

 

Hotel Stays and Allowable travel expenses are:

  • Mileage as determined by IRS mileage allowances.

  • When booking a hotel, a governmental rate must be requested and a ST 129 must be presented to vendor for sales and use tax abatement. (See NYS Office of the Comptroller guidelines on travel).

  • Conference fees including room and board are permitted.

  • When conference fees do not include meals, the permitted reimbursements for meals excluding alcoholic beverages:

 

    • Breakfast: $12

    • Lunch: $18

    • Dinner $35

 

VI. Rent and Annual Receivables

  • The Director will establish and maintain a receivable record of annual and monthly payments due the Corporation arising from lease agreements, rents, and fees etc.

 

Note: Additional controls on the use of Corporation funds are contained in Policies Governing the Use of Authority Discretionary Funds 

 

RE-ADOPTED: MARCH 24, 2016

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RE-ADOPTED : MARCH 26, 2017