Make your own free website on Tripod.com

The Michael Paul Wein Charitable Foundation

"Underpromise and Overdeliver"

internal control
Home page Up one page

for Beginners Table of Contents Eligibility for grants Initial requirements ongoing requirements FAQs why this info Calendar our goals and mission Our grantees Our trustees Legalities miscellaneous Site Map

REVIEW OF INTERNAL CONTROL

copyright Michael Wein, cpa 1996-2005 - all rights reserved - copying of this document is expressly forbidden without the written permission of the copyright owner

FOR EACH SMALL (PETTY) CASH FUND:

1-Is the fund always kept at a constant, specific amount (total of vouchers plus cash)?

2-Is the responsibility for each fund vested in only one person?

3-Is the custodian independent of other duties and other individuals that handle cash or cash items?

4-Are the records that are kept for each fund inaccessible to others until the fund is reimbursed?

5-Does the custodian obtain a formal receipt or factura (date, amount, what was bought, reason, etc.) for each payment made?

6-does each payment also require the signature of the recipient of the payment on each receipt?

7-Are formal receipts reviewed and/or approved by someone other than the custodian prior to replenishing fund?

8-Are formal receipts cancelled in some way so that they cannot be re-used after each fund is replenished?

9-Is amount in each fund counted by someone other than the custodian at least once a year?

10-has a maximum amount (over which no cash expenditure can be made) been set for each fund?

MONIES RECEIVED:

1-is a record kept of checks (and identifiable cash) received, so it can be reviewed for omissions?

2-are any offering baskets (from the moment they are about to vanish from public sight) kept in the joint presence of two officials until they are counted and recorded?

3-are the receipts from any offering baskets counted and recorded by persons other than the cashier, treasurer, etc.?

4-are the recorded amounts (see items #1 and #3 above) compared to the records of deposits to banks?

5-is the entire offering deposited intact without reduction for expenses of any sort?

6-does someone other than the cashier make the deposits to the bank?

7-is the person who makes such deposits instructed not to cash checks for the cashier?

8-are all outside persons aware that pre-numbered duplicate receipts are to be given for monies received?

9-are duplicate receipts compared in any way to the records which, in themselves, are to be compared to deposits?

MONIES PAID OUT BY CHECK:

1-are all checks kept in checkbook until issued, not pre-signed until issued, and issued in chronological order?

2-are voided checks stapled to checkbook and retained therein?

3-are checking account reconciliations done by someone with nothing to do with cash procedures or check signing?

4-does that someone (item #3 above) receive the bank statements directly from the bank?

5-during reconciliation, are paid checks examined for date, name, and endorsements consistent with the cash records?

6-are signatories limited to those who have no access to cash, check or cash receipts, or other cash records?

7-is the practice of drawing checks payable to "cash" (or similar names) prohibited or extremely curtailed (and even then allowed only under specific circumstances)?

8-are the checks prepared for signature by someone other than a person involved in the receipt of checks or cash?

9-does supporting data accompany checks when they are submitted for signatures?

10-are the supporting data effectively perforated or otherwise canceled after payment to prevent subsequent misuse?

11-has the board specified a minimum amount over which each check must be counter-signed?

MONIES PAID OUT IN CASH:

1-monies for expenses must not be paid out of cash received prior to its being deposited in banks!

2-is each item paid for in cash supported by documentation (where normally available) explaining who, what, when, and why?

3-are all expenses that are paid for in cash, reimbursed by a check made payable to the fund's custodian, and then only in the EXACT amount of the total of all expenses at that time being reimbursed at that specific time?

NON-MONETARY ASSETS:

1-are permanent listings (including descriptions, serial numbers, dates and costs) maintained for assets of significant value (such as office furniture and equipment and the like)?

2-does anyone compare the permanent listings (item #1 above) to the physical asset itself on an annual basis?

GENERAL:

1-are monthly financial statements prepared in reasonable detail so that the board of directors can review for omissions of receipts and for inappropriate expenditures and for variations from budgets?

2-does the board secretary understand that any financially-significant event should be recorded in the minutes?

3-does each member of the board know that it is each member's responsibility to ask the financial person for additional information regarding finances whenever a question arises in the individual member's mind?

4-are annual meetings of the entire membership scheduled each year at some constant time of year?

5-are financial statements provided to all non-board members, to help them review the organization's performance?

6-are the board of directors elected annually by the membership to ensure turnover among directors?

7-are the officers and responsibilities within the organization rotated periodically to ensure fresh ideas and fresh energy?

8-are non-board members of the organization allowed access to board meetings to ensure members' input?

9-are the duties and responsibilities of each financial person in the organization spelled out in sufficient detail?

10-are the duties of each person in the entire organization rotated after a specified period of time?

11-are the duties of each person taken over by another person during a vacation period (which is required at least annually)?

12-is an operating budget prepared annually, and are variations between budgets and actual results explained monthly?

13-is a double-entry bookkeeping system in use? 

14-are excess funds, if any, handled appropriately so as to maximize income thereon?

15-are all financial records and minutes of meetings available to all members of all of the organizations' constituencies so as to maintain transparency?

 

Send all e-mail to mpwinsma@gmail.com with any questions or comments about this web site. SPECIFY EXACTLY (using copy and paste) (and mentioning this page name) what your question or comment refers to.   Note: in the event that the above information is no longer accurate, see the newer web-page listing various subsequent changes to this web-site after the founder's death.
Copyright 2000-2005 The Michael Paul Wein Charitable Foundation, Inc