Accounting Job Duties
Prepares asset, liability, and capital account entries by compiling and analyzing account information.
Documents financial transactions by entering account information.
Recommends financial actions by analyzing accounting options (to Finance Committee).
Summarizes current financial status by collecting information; preparing balance sheet, profit and loss statement, and other reports.
Substantiates financial transactions by auditing documents.
Maintains accounting controls by preparing and recommending policies and procedures.
Guides accounting clerical staff by coordinating activities and answering questions.
Reconciles financial discrepancies by collecting and analyzing account information.
Secures financial information by completing database backups.
Maintains financial security by following internal controls.
Prepares payments by verifying documentation, and requesting disbursements.
Answers accounting procedure questions by researching and interpreting accounting policy and regulations.
Complies with federal, state, and local financial legal requirements by studying existing and new legislation, enforcing adherence to requirements, and advising management on needed actions.
Prepares special financial reports by collecting, analyzing, and summarizing account information and trends.
Maintains customer confidence and protects operations by keeping financial information confidential.
Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; participating in professional societies.
Accomplishes the result by performing the duty.
Contributes to team effort by accomplishing related results as needed.
Internal Controls for Cash Handling at Oak Valley College
Accepting cash or check in person
Eric, Mark, Amber, or Alisa may receive cash or checks from payee
Cash is counted in front of payee to verify amount paid
A hand-written sequentially numbered receipt is issued to the payee
Cash deposits are counted in front of another staff member as soon as another staff member is available
Cash deposits are made within two business days by either Eric or Mark (checks are deposited immediately via app)
ATM receipts are placed in the cash box confirming the deposit (retained for one fiscal year)
A deposit record is made, same day, as the deposit in Quickbooks and Populi (student information system). Payee can view their recorded payment in Populi.
Issuing payments (checks)
Eric or Mark signs all checks
Checks over $2,500 carry second signature
Eric inputs all transactions in Quickbooks
Mark (CFO) reconciles the monthly bank statements in Quickbooks
Mark (CFO) reviews monthly financial reports from Quickbooks with the Treasurer and Board Finance Committee
The Treasurer receives electronic copies of bank statements no later than the 15th of the month from Mark (CFO)
Primary Policies and Procedures for Accounting
Basis of Accounting
Oak Valley uses the accrual basis of accounting. The accrual basis is the method of accounting whereby revenue and expenses are identified with specific periods of time, such as a month or year, and are recorded as incurred. This method of recording revenue and expenses is without regard to date of receipt or payment of cash.
Throughout the fiscal year, expenses are accrued into the month in which they are incurred. The books are closed no later than the 1st day after the close of the month. Invoices received after closing the books will be counted as a current-month expense.
At the close of the fiscal year, this rule is not enforced. All expenses that should be accrued into the prior fiscal year, are so accrued, in order to ensure that year-end financial statements reflect all expenses incurred during the fiscal year. Year-end books are closed no later than 30 days after the end of the fiscal year.
Revenue is always recorded in the month in which it was earned or pledged.
All bank statements will be opened and reviewed in a timely manner. Bank reconciliation and approval will occur within 30 days of the close of the month.
All bank statements will be opened, reviewed, reconciled and initialed by the CFO upon receipt. Once reviewed, bank statements are submitted to the Treasurer. The President will review and approve reconciliation reports by signing and dating the report in the upper right hand corner. The books and bank reconciliation is to occur by the 15th of the following month.
Oak Valley maintains a details document retention policy, which has been reviewed and approved by the board - www.oakvalleycollege.org.documentretention.
Conflict of Interest
All employees and members of the Board of Directors are expected to use good judgment, to adhere to high ethical standards, and to act in such a manner as to avoid any actual or potential conflict of interest. A conflict of interest occurs when the personal, professional, or business interests of an employee or Board member conflict with the interests of the organization. Both the fact and the appearance of a conflict of interest should be avoided.
Upon or before hire, election, or appointment each employee and Board member must provide a full written disclosure of all direct or indirect financial interests that could potentially result in a conflict of interest. Examples include employer, business, and other nonprofit affiliations, and those of family members or a significant other. This written disclosure will be kept on file and will be updated annually and as needed.
Employees and Board members must disclose any interests in a proposed transaction or decision that may create a conflict of interest. After disclosure, the employee or Board member will not be permitted to participate in the transaction or decision. Definition: Internal controls are a set of policies and procedures to prevent deliberate or misguided use of funds for unauthorized purposes.
Should there be any dispute as to whether a conflict of interest exists, the President shall determine whether a conflict of interest exists for an employee, and shall determine the appropriate response. The Board of Directors shall determine whether a conflict of interest exists for the President or a member of the Board, and shall determine the appropriate response.
Oak Valley’s financial duties are distributed among multiple people to help ensure protection from fraud and error. The distribution of duties aims for maximum protection of the organization’s assets while also considering efficiency of operations.
Check signers should not be involved in expense approval or basic accounting procedures. Someone outside of the accounting function should open and log all checks received.
Oak Valley maintains physical security of its assets to ensure that only people who are authorized have physical or indirect access to money, securities, real estate and other valuable property.
Blank checks are stored in a locked file cabinet in a locked office.
The Vice President accounts for the checks.
Accounting software is password protected, and the password is changed annually by the President.
Bank deposits are made at least weekly.
Oak Valley’s annual budget is prepared and approved annually. The budget is prepared by the President in conjunction with the Board Finance Committee. The budget is to be approved by the Board of Directors prior to the start of each fiscal year. The budget is revised during the year only if approved by the Board of Directors.
The President will work together with the Vice President/CFO to ensure that the annual budget is an accurate reflection of programmatic and infrastructure goals for the coming year.
The Vice President/CFO will ensure that the budget is developed using the organization’s standard revenue recognition and cost allocation procedures.
The President and the Board Treasurer will present a draft budget to the Finance Committee at least 60 days prior to the end of the fiscal year and at least 30 days prior to its submission to the full Board.
The Finance Committee shall review and approve a recommended fiscal year budget and submit it for approval to the Board of Directors. The budget shall contain revenues and expenses forecasted by month. The Board will review and approve the budget at its last meeting prior to the start of the fiscal year.
Internal Financial Reports
Oak Valley prepares regular financial reports on a monthly basis. All reports are finalized no later than 15 days after the close of the prior month.
The Vice President/CFO is responsible for producing the following year-to-date reports within 30 days of the end of each month: Statement of Financial Position, Statement of Activities, and Budget v. Actual. The President and Board Finance Committee reviews financial reports each month, and the Finance Committee presents reports to the full Board at each Board Meeting. The Treasurer/Chair of the Finance Committee prepares a narrative report that summarizes the organization’s current financial position and includes explanations for budget variance.
Audit and Federal Form 990 and State Form 199
An annual audit required. The audit is to be completed by September 30. A new CPA firm is hired only as required. The Board Audit Committee determines the auditor and required information. The President serves as the staff liaison to the audit firm. The audit report is presented to the Audit Committee, who then presents the audit to the Board of Directors. The audit is published on the website.
The President completes the annual Federal Form 990 and California Form 199 by the end of October.
All contributions will be recorded in accordance with GAAP, with specific attention to standards FASB 116 and 117. Contributions are recorded as pledged or received in accordance with FASB 116, and must be credited to the appropriate revenue lines as presented in the annual budget and coded as designated in the organization’s Chart of Accounts.
The Vice President/CFO reviews all revenue. If there is a question or uncertainty about how to recognize a particular contribution, the Vice President/CFO will ensure that the donor is contacted to clarify the intent of the contribution.
The President is responsible for posting revenue to the general ledger in accordance with the determination made by the Vice President/CFO.
The President opens the mail, and the Vice President/CFO codes income. The President posts receipts in the accounting system.
All checks are copied electronically when deposited. Checks are immediately endorsed upon receipt, and are, generally, immediately deposited by mobile application. Cash deposits are often made the day received, and must be deposited within a week of receipt. The President, generally, takes cash to the bank for deposit. The Vice President/CFO reviews bank receipts.
Pay periods are every two weeks. Faculty are paid by salary. Hourly employees are required to record time worked and complete time sheets using an online application. The President reviews, corrects if necessary, timesheets The President is responsible for entering time sheet information into the payroll and accounting systems as needed.
The President has overall authority to approve payroll changes. Employees added to/removed from the payroll system by the President. The President has authority to approve salary increases and increases are documented in the personnel file. Personnel may request changes to their withholding at any time by filing a new W-2 form.
Purchases & Procurement
Any expenditure in excess of $1000 for the purchase of a single item should have bids from three (3) suppliers if possible. These bids will be reviewed by the Treasurer and the bid award must be specifically approved in advance by the President. The President or Vice President/CFO has authority to approve purchases.
Oak Valley uses independent contractors when professional work is required and a staff person is unavailable or untrained to complete the work. The President has authority to approve any contract work. The President and Vice President/CFO shall review and identify that a contractor is appropriately classified as an independent contractor and not an employee.
Invoice Approval & Processing
All invoices must be approved by the President for which the expense was incurred. Approved invoices will be paid within 30 days of receipt. Invoices and bills will be opened and reviewed by the President. Copies of all invoices paid will be filed in the finance department.
Itemized invoices are required when paying vendors. The Vice President/CFO prepares check for the President to sign and mail. An expenditure record is recorded in Quickbooks by the President.
Oak Valley does not maintain petty cash.
Employee Expense Reimbursements
All employee expenses must be preapproved by the President or Vice President/CFO. Travel expenses are eligible for reimbursement. The rate for mileage is 35 cents per mile. The employee must document where/when the travel took place and for what purpose (e.g. from Colton to Corona 40 miles RT for admissions visit to Crossroads Christian School.
Oak Valley does not maintain corporate credit cards.
Cash Management and Investments
The President administers investment accounts with review and approval by the Board for all investments. Currently, Oak Valley is only allowed to invest in CDs. Bank accounts are held at Christian Community Credit Union and the Treasurer/Finance Chair reviews monthly bank statements. The CD is currently approved at $50,000.
Oak Valley is committed to maintain a minimum operating reserve fund to cover four (4) months of average operating costs. The calculation of average monthly operating costs includes all recurring, predictable expenses such as salaries and benefits, occupancy, office, travel, program, and ongoing professional services.
The amount of the operating reserve will be calculated each year after approval of the annual budget, reported to the Finance Committee and Board of Directors, and included in regular financial reports. The operating reserve will be funded with surplus unrestricted operating funds. The Board may from time to time direct that a specific source of revenue be set aside for operating reserves. Examples may include one-time gifts or bequests, special grants, or special appeals. To use the operating reserves, the President will submit a request to the Finance Committee. The request will include the analysis and determination of the use of funds and plans for replenishment. The organization’s goal is to replenish the funds used within twelve (12) months to restore the operating reserve fund to the target minimum amount.