3.6 CASH DISBURSEMENTS/PURCHASING PURPOSE: To outline the policies and procedures for cash disbursements and purchasing.
The Executive Committee will approve all fiscal year budgets and all cash disbursements will be made within the framework of the adopted budget. The Executive Director will authorize expenditures within these budgets. Final invoices will be submitted to appropriate Directors for final review and approval prior to payment. Vendor invoices to be paid are uploaded onto the cloud-based accounts payable platform for approval. The Executive Director and Deputy Executive Director both approve the disbursements. After the approval process the invoice is routed through automatic workflow to the Director of Business Operation for payment IGA uses a cloud-based accounts payable platform to send payments via check or ACH. At times manual checks are processed through the IGA computer accounting system by the accounting consultant ; however, the invoice approval is still processed through the cloud-based accounts payable platform. Disbursements that are $500 or less are required to have one approval signature from the Office Manager, as long as it is in the confines of the IGA annual budget. Disbursements that are $10,000 or lower but above $500 must have one approval signature of the Executive Director, Deputy Executive Director, Director of Business Operations, or the Chairman. Disbursements that are greater than $10,000 will require two signatures, the Executive Director, the Deputy Executive Director, Director of Business Operations or the Chairman. All supporting documentation is provided with the disbursement for the authorized signer to review prior to approving payment. All checks will be uploaded to Positive Pay, an automated fraud detection tool, to deter check fraud. Proper approval of ACH & Wires will be required via the cloud-based accounts payable platform. The accounting consultant will initiate the ACH/Wire and the Director of Business Operations will approve. A dual control system for entering and approving wires and ACH should be in place.to ensure proper internal control. Automatic payments can be set up for contract services and items such as the leasing of equipment, mortgage payments and payroll. These automatic payments will be documented with the original permission to withdraw funds (supported by two IGA signatures) and a monthly statement of payment. Contracts that are $10,000 or less will be reviewed and signed by the Executive Director. Contract that are $100,000 or less but greater than $10,000 will be reviewed and signed by the Executive Director and the Chairman. Contracts that are $500,000 or less but greater than $100,000 will be reviewed and signed by the Executive Director, the Chairman and the Finance Committee. Contracts that are greater than $500,000 will be reviewed and signed by the Executive Director, Chairman, Finance Committee and the Board of Directors. Contracts will be maintained in both an alphabetical vendor file and a contract file.
Deleted: Requests for payment Deleted: will b Deleted: e
Deleted: submitted on a Check Request Form with supporting documentation, signed by the requesting employee and approved by either the Executive Director, Deputy Executive Director, Business Manager, Office
Manager or the Chairman.… Deleted: Payment will be Deleted: made Deleted: N Deleted: Accountant
Deleted: and will be given a sequential voucher number that will be recorded in the accounting system. Signers cannot sign checks, ACHs or wires payable to themselves.… Deleted: N Deleted: Business Manager Deleted: Manager Deleted: check
Deleted: check request Deleted: Accountant
Deleted: and if it is a Disbursement that is $500 or less, it is required to have one approval signature from the Office Manager as long as it is in the confines of the NIGA annual budget. Disbursements that are $10,000 or lower but above $500 must have one approval signature of the Executive Director, Deputy Executive Director, Business Manager or the Chairman. Disbursement that are greater than $10,000 will require two signatures, one must be the Executive Director and the other can be the Deputy Executive Director, Business Manager or the Chairman. . … Deleted: N
Deleted: NIGA
IGA Accounting Policies and Procedures (guidelines)
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