Agenda Finance Committee October 29, 2014 2014 10 29 mtg pac.pdfFinance Committee Meeting October...
Transcript of Agenda Finance Committee October 29, 2014 2014 10 29 mtg pac.pdfFinance Committee Meeting October...
Agenda
WELCOME AND CALL TO ORDER SELF INTRODUCTIONS APPROVAL OF MINUTES Approval of the Minutes of the May 28, 2014 RECOMM Approval ACTION Motion for Approval EXHIBIT Minutes of the May 28, 2014 Pages 3-4 NEW BUSINESS 1. Financial Statements Andrea Braynon, CFO
RECOMM Approval ACTION Motion to Approve Financial Statements For August and September 2014 EXHIBIT Action Statement, Financial Statements Pages 5-25 2. Utilization Report Andrea Braynon, CFO
RECOMM Review and Discussion ACTION No action needed EXHIBIT Utilization Report Pages 26-28 3. Fiscal Policies and Procedures Recommended Revisions Andrea Braynon
The Fiscal Policies and Procedures are being revised for your review and approval. .
RECOMM Approval ACTION Motion to approve EXHIBIT Action Statement, Fiscal Policy and Procedures recommendations Pages 29-112
Agenda Finance Committee October 29, 2014
6301 NW 5th Way, Suite 3400, Ft. Lauderdale 4:30 pm
UNFINISHED BUSINESS ADDITIONAL NEW BUSINESS PUBLIC COMMENT NEXT MEETING DATE: January 28, 2014 ADJOURN
Finance Committee October 29, 2014 Page 3
Finance Committee October 29, 2014 Page 4
Finance Committee October 29, 2014 Page 5
Finance Committee October 29, 2014 Page 6
Finance Committee October 29, 2014 Page 7
Finance Committee October 29, 2014 Page 8
Finance Committee October 29, 2014 Page 9
Finance Committee October 29, 2014 Page 10
Finance Committee October 29, 2014 Page 11
Finance Committee October 29, 2014 Page 12
Finance Committee October 29, 2014 Page 13
Finance Committee October 29, 2014 Page 14
Finance Committee October 29, 2014 Page 15
Finance Committee October 29, 2014 Page 16
Finance Committee October 29, 2014 Page 17
Finance Committee October 29, 2014 Page 18
Finance Committee October 29, 2014 Page 19
Finance Committee October 29, 2014 Page 20
Finance Committee October 29, 2014 Page 21
Finance Committee October 29, 2014 Page 22
Finance Committee October 29, 2014 Page 23
Finance Committee October 29, 2014 Page 24
Finance Committee October 29, 2014 Page 25
Finance Committee October 29, 2014 Page 26
Finance Committee October 29, 2014 Page 27
Finance Committee October 29, 2014 Page 28
1
Early Learning Coalition of Broward County, Inc.
Finance Committee Meeting October 29, 2014
Subject: Fiscal Policies and Procedures Recommended Revision
Background Information
To direct and provide additional guidance the Coalition staff, with the assistance of the General Counsel, guidance from the Council of Accreditation (COA) material and ChildNet’s policies and procedures, staff has revised the existing fiscal policies and procedures. Maintaining updated policies and procedures are a critical component of an effective and strong financial management system. They are used to establish an organization’s internal controls and are for ensuring compliance with state and federal regulatory standards by our funders so that we comply with the specific guidelines. Documenting the Coalition’s fiscal policies and procedures also serves as an important tool for clarifying roles and responsibilities and ultimately for ensuring that the agency’s financial data is accurate and reliable based on the decision making of senior management and the Board.
PROPOSED ACTION Recommend approval of the Coalition’s Fiscal Policies and Procedure Revisions. Recommendation Brought Forth By: Staff Supporting Documentation Attached: Fiscal Policies and Procedures Revision
Matrix and the Fiscal Policies and Procedures dated 9/2014
Financial Impact: No impact Action Taken:
Finance Committee October 29, 2014 Page 29
Early Learning Coalition of Broward County, Inc. ‐ Fiscal Policies and Procedures Revisions
September2014 Page1
ITEM No.
Brief Description of the
Revision Current Policy & Procedures Section & Page
No. Revised Statement Explanation (if needed)
1 INTERNAL ACCOUNTING CONTROLS – Added reference to the involvement of the Performance and Quality Improvement Team (PQI) and the Risk Management Team in the agency’s review of organizational duties and responsibilities.
The activities described in item #1 above are reviewed periodically (at least annually) and/or revised as required by changes in designated duties and responsibilities.
Plan of Organizationpage7
The activities described in item #1 above are reviewed periodically (at least annually) by the Performance and Quality Improvement Team (PQI) and the Risk Management Team and/or revised as required by changes in designated duties and responsibilities. The reviews are planned to begin quarterly with reports completed each year in August.
Include implementation reference
2 INTERNAL ACCOUNTING CONTROLS – Added policy
N/A Plan of Organization page7
A signature card from the banking institution selected by the Coalition Board must be completed by the Finance Department for all authorized payment signatures. Authorized signatures include the Chief Executive Office and the Coalition Board Officers.
Include information
3 CHART OF ACCOUNTS – Expand policy information.
The Coalition maintains on file in the Administrative Office a detailed chart of accounts showing all revenue and expense cost centers currently in use.
Accounting & Finance Statements
Page 9
The Coalition maintains a chart of accounts and their appropriate descriptions. The chart of accounts provide information needed to prepare prompt, accurate and complete recording of revenues and expenses which facilitate the preparation of financial statements. The Coalition optimizes financial accountability by applying sound financial management practices in accordance with applicable laws and regulations. 1. The chart of accounts are to show all revenue and expense cost centers currently in use. 2. Changes, modifications, additions or deletions to the chart of accounts are reviewed and approved by the Chief Financial Officer, who is the responsible party for its maintenance.
Additional explanation of policy.
4 BANK RECONCILATION – Include a policy statement.
N/A – Procedure only Bank ReconciliationPage 10
It is the policy of the Coalition to maintain appropriate controls over cash accounts and to complete monthly reconciliation of bank statements to the general ledger cash account in
Add a policy statement.
Finance Committee October 29, 2014 Page 30
Early Learning Coalition of Broward County, Inc. ‐ Fiscal Policies and Procedures Revisions
September2014 Page2
conformity with sound accounting and financial controls. Bank accounts are authorized by the Coalition Board.
5 BUDGET – Add additional procedural details and additional policy statement.
The Chief Executive Officer shall submit to the Board a balanced annual budget prepared in accordance with the Coalitions by‐laws, applicable laws and FOEL policies. Budgets shall be submitted for acceptance by Florida Office of Early Learning in the annual report. The annual budget shall direct resources to accomplish Coalition goals and objectives.
Annual Budget Preparation and
Adoption Page 12‐13
An annual operating budget is prepared, maintained and revised during the fiscal year for the organization to inform management of available financial resources and also in support of the Coalitions goals, objectives and mission statement. Variances of actual expenditures to budget projections are monitored on at least a monthly basis providing financial accountability practices in accordance with the Coalitions by‐laws, applicable laws and FOEL policies. Budgets shall be submitted for acceptance by Florida Office of Early Learning in the annual report. The Chief Executive Officer shall submit to the Coalition Board a balanced annual budget. Budget Preparation 1. Budgets are prepared in coordination with the Chief Financial Officer, senior management for the Coalition and the program activity.
2. The proposed annual budget is prepared in accordance with the overall mission of the Coalition to include the following considerations:
Program priorities of the agency as identified by management
Anticipated funding levels during the current fiscal period using current and prior fiscal years financial data
Identify direct and indirect costs to operate programs in accordance with OMB Circular A‐122, “Cost Principals for Non‐Profit Organizations” in addition to all applicable laws and FOEL policies
Project changes in cost and conditions during the fiscal year
Additional procedural details and an additional policy statement.
Finance Committee October 29, 2014 Page 31
Early Learning Coalition of Broward County, Inc. ‐ Fiscal Policies and Procedures Revisions
September2014 Page3
Contractual obligations including the targeted funds requirements and restrictions
3. Projected budget expenditures are determined by program function, contract activity, and then consolidated into the Coalition total budget. This methodology utilizes historical monthly data with the inclusion of program and administrative planning assumptions.
4. The Coalition Board reviews and approves the annual budget prior to its implementation. Any subsequent amendments or revisions to the budget must also be approved by the Coalition Board.
5. On at least a monthly basis, the financial reports shall include a variance report comparing actual expenditures to budget projections that are monitored and submitted by the Chief Financial Officer to the Chief Executive Officer for review. Any significant differences are identified, explained and reported in the financial reports during Finance Committee meetings. A comprehensive annual review of the actual to budgeted expenditures are performed following the completion of the fiscal year end audit.
6. The monthly reviews of the actual expenditures are examined during the fiscal year and at‐year‐end with creation of the financials and the monthly year‐to‐date reconciliation of the agency’s expenditures and the contracts. Monthly variations of greater than 5 percent (5%) in any revenue or expense account are flagged for review with the Chief Executive Officer or the Finance Committee.
7. Budget data also contains expenditure trend projections based on historical expenditure analysis and planned programmatic changes or enhancements. The trend data is utilized to proposed adjustments to the projected budget as well as to forecast adjustments to future
Finance Committee October 29, 2014 Page 32
Early Learning Coalition of Broward County, Inc. ‐ Fiscal Policies and Procedures Revisions
September2014 Page4
contracts. 8. Budget projections can be modified throughout the fiscal year if necessary to adjust revenues resources and planning assumptions.
9. The financial reports are used in the evaluation and review of expenditure variance along with the results of the six month financial review during the fiscal year.
6 ACCOUNTS RECEIVABLE & CASH RECEIPTS ‐ Include additional verbiage to the policy statement.
This procedure outlines processes used by the Early Learning Coalition of Broward County (Coalition) to handle and account for all revenue and receipts collected.
Accounts Receivable & Cash Receipts
Page 14
It is the policy of the Coalition to establish sound cash management practices that ensures efficient utilization of cash in a manner consistent with the overall strategic goals. The accounts receivables policy is implemented to properly safeguard, prompt deposits, and accurately record all receipts in the integrated, fund accounting system (MIP) and to provide thorough internal controls as it relates to cash management.
An additional policy statement.
7 CONTRIBUTIONS – Added a policy and procedure. There was no reference previously.
N/A Accounts Receivable & Cash Receipts
Page 16
It is the policy of the Coalition to acknowledge all cash contributions, donated goods and services into the accounting systems in a timely manner. 1. Cash contributions are received and processed by the Coalition’s Accounting Manager. The appropriate documentation surrounding the contribution is forwarded to the Accounting Manager and the appropriate journal entries are made.
2. The Coalition is responsible for assigning a value to donated items. The value of a donated item may be recorded as the amount that the organization would pay for a similar item at fair market value.
Additional policy and procedure.
8 ACCOUNTS PAYABLE AND CASH RECEIPTS – Clarified the existing policy.
The purpose of this procedure is to detail the manner in which payment is made to Service Providers, Vendors, and Employees for reimbursement issues. This procedure details the Coalition’s responsibilities
Accounts Payable & Cash Disbursements
Page 18
The Coalition Finance Department is responsible for accurate and timely payment of all invoices for the organization. This includes all payments on purchase order, vouchers, vendor invoices, travel expense reimbursements, and invoices from the service provider (Subrecipient).
Additional clarification.
Finance Committee October 29, 2014 Page 33
Early Learning Coalition of Broward County, Inc. ‐ Fiscal Policies and Procedures Revisions
September2014 Page5
and the Accounting Department’s manual and online steps for payment
9 NEW VENDOR SET‐UP ‐ Added a policy and procedure. There was no reference previously.
N/A Accounts Payable & Cash Disbursements
Page 21
New vendors are entered into the accounting system by the Accountant or the Accounting Manager on an as‐needed basis. The following information is typically required when establishing a new vendor/payee: Name of Vendor / Payee Mailing address Federal Tax Identification Number (Businesses)
Social Security Number (personnel) IRS W‐9 form
Additional policy and procedure.
10 EMPLOYEE REQUESTING REIMBURSEMENT – clarifies the dates local travel is due Clarified the existing policy.
The purpose of this procedure is to clarify the manner and timeframe in which employees should submit for reimbursements.
Employee Reimbursement
Page 30
1. Miscellaneous expenditure reimbursement should be requested within thirty (30) days of which the reimbursable expenses are incurred or by the end of the following month to the Accounting Department:
2. Mileage expenditures local should be requested within thirty (30) in which the reimbursable expenses are incurred or by the end of the following month unless the amount totals less than $15.00 and then the applicable Voucher For Reimbursement Of Travel Expenses form (Exhibit D) must be completed. Files within the current quarter (no later than the current FY) for the incurred expenses.
Clarification in existing policy
11 PREPAID COST (PARTICPANT SUPPORT COSTS) – Added policy and procedure for new process.
N/A Accounts Payable & Cash Disbursements
Page 32
It is the policy of the Coalition to minimize the purchase of prepaid. Prepaid costs are those cost which are disbursed for goods and services in advance of the receipt of the goods and services. These costs must be allowable cost that must be goods and services consumed during the period of availability, have an appropriate allocation of cost based on the benefit received, must be reasonable under the circumstances and have sufficient documentation to justify the prepayment.
Policy and Procedure replicates State policy
and procedure.
Finance Committee October 29, 2014 Page 34
Early Learning Coalition of Broward County, Inc. ‐ Fiscal Policies and Procedures Revisions
September2014 Page6
1. For goods or services to be consumed during
the period of availability – OMB Circular A‐110 (2 CFR 215), states that the period of availability as where a funding period is specified, a recipient may charge the grant only allowable costs resulting from obligations incurred during the funding period. The funding period for ELC’s is their grant year, which corresponds to the State Fiscal Year (July 1 – June 30).
2. Reasonable under the circumstances – The cost and the prepayment of that cost must be ordinary, necessary and within sound business practice. If there are other options for payment besides prepayment (i.e., installment payments), the ELC should document why the pre‐payment option was the most cost effective (i.e., cost savings) and provided the greatest benefit to the grant.
3. Identify the appropriate allocation of costs to the award(s) based on the benefit received – The appropriate OCA(s) must be charged.
4. Sufficiently documented to justify the prepayment – This includes: A description of the cost to be pre‐paid
and the grant program(s) to be charged for the cost along with applicable funding periods for the charged grants.
The cost savings or other business rationale for making the pre‐payment.
A description of the methodology used to allocate the cost among the various benefitting grant programs.
The time period the pre‐payment covers. The Coalition will maintain appropriate records to show the balance of the prepaid cost or items
Finance Committee October 29, 2014 Page 35
Early Learning Coalition of Broward County, Inc. ‐ Fiscal Policies and Procedures Revisions
September2014 Page7
throughout the grant year, and perform a periodic physical inventory on prepaid items to confirm items are distributed on a first‐in, first‐out (FIFO) basis to ensure compliance. Prepaid cost determination must be established and the following steps provide for segregation of duties and processes for the safeguarding of the prepaid items: Program Coordinator will: 1. Determine the eligibility and issuance practices and plan.
2. Describe and document the cost of the prepaid item and the grant program to be charged along with the applicable funding periods for the charged grants.
3. Obtain budget approval of the Chief Financial Officer.
4. Obtain approval of the Chief Executive Officer. 5. Obtain a purchase order number from the Accountant.
6. Procure the requested goods or service. 7. Deliver to the Accountant the Purchase Order and the attached documentation.
8. Initial the package slip when goods are received and provide to the Accountant
9. Confirm the distribution process and documentation required with the Accountant.
Accountant will: 1. Review the purchase order for accuracy. 2. Maintain and file the Purchase Order and attached document.
3. Receive and review the final invoice and packaging slip when goods are received.
4. Maintain the supporting records for the prepaid items.
Finance Committee October 29, 2014 Page 36
Early Learning Coalition of Broward County, Inc. ‐ Fiscal Policies and Procedures Revisions
September2014 Page8
5. Perform the periodic reconciliations, including follow‐up questions where appropriate.
12 PETTY CASH ‐ Included additional verbiage to the policy statement.
The Early Learning Coalition of Broward County, Inc. (Coalition) has determined a need to maintain a small petty cash fund. The following information details the establishment, safekeeping, and accounting for those funds.
Petty CashPage 34
It is the policy of the Coalition to make available limited resources to facilitate immediate purchases made on behalf of the organization. To limit access to and properly safeguard petty cash funds. The Coalition has determined a need to maintain a petty cash fund. The following information details the establishment, safekeeping, and accounting for those funds.
Expanded the policy statement.
13 PURCHASING CARD – Expanding the policy statement.
The purpose of this manual is to provide directions for making purchases in accordance with:
Purchasing CardPage 36
The purpose of this policy is to provide directions for making purchase card purchases for business purposes in
accordance with:
Expanded the policy statement.
14 PURCHASING CARD – Additional specificity to the procedure.
Card Holder Payment ProcessingPage 41
Responsibilities
Card Holders will on a regular basis:
Procedure detail.
15 DEFINITIONS – Included the State terminology of Custodian.
N/A Fixed AssetsPage 44
Custodian ‐ Custodian shall be primarily responsible for the supervision, control, and disposition of property in the agency’s custody but may delegate its use immediate control to a person under their supervision
Reference included to parallel State reference.
16 SURPLUS PROPERTY ‐ Included State references.
2. The staff member disposing the asset will need to complete a Surplus Property form (See Exhibit I). This form states the reason the asset should be surplus and is approved by the Chief Executive Officer.
5. Once disposal permission is received, surplus property will be disposed of according to Partnership instruction.
Fixed AssetsPage 49
Page 50
2. The custodian disposing the asset will need to complete a Surplus Property form (See Exhibit I). This form states the reason the asset should be surplus and is approved by the Chief Executive Officer.
5. Once disposal permission is received, surplus property will be certified then disposed in according to FOEL instruction which includes indicating the value and condition of the
References included to parallel State procedure.
Finance Committee October 29, 2014 Page 37
Early Learning Coalition of Broward County, Inc. ‐ Fiscal Policies and Procedures Revisions
September2014 Page9
property.17 PAYROLL AND RELATED COSTS
‐ Included a policy statement. N/A Payroll
Page 52 It is the policy of the Coalition to maintain accurate records of time worked by each employee and ensure proper compensation is distributed and processing payroll by utilizing sound payroll practices to comply with any federal and state regulatory wage and hour laws.
Consistent Policy statement
18 TIME SHEET/PAYROLL ACTIVITY REPORT (PAR) – Time management procedure.
N/A PayrollPage 52
1. The time sheet/ Payroll Activity Report (PAR) template is an EXCEL file that is saved on the Coalition server in a folder identified by the Accountant. The time sheet template is given to each employee. The employee should save time sheet after they have entered their personal information including employee name and date on the top portion of the time sheet. The time sheet has tabs at the bottom of the file, representing each of the twenty‐six pay periods for the fiscal year.
2. The top portion of the time sheet, under “Reg Hours”, the employee records the total regular hours worked for each day. The maximum number hours are 7.5 hours per day for salaried/exempt staff.
Non‐exempt/hourly employees record actual hours worked for each day of the pay period.
Time Sheet Leave codes are used to indicate the exceptions to the regular work day. This is also referred to as “leave time”. Time Sheet Leave codes include:
• “S” – Sick leave • “H” ‐ Holiday • “P” – Personal leave • “V” – Vacation • “O” – Other • “OT” ‐ Overtime
Added existing procedure
Finance Committee October 29, 2014 Page 38
Early Learning Coalition of Broward County, Inc. ‐ Fiscal Policies and Procedures Revisions
September2014 Page10
3. The bottom portion of the time sheet must be completed to reflect the actual hours worked by funding source. If the employee worked 4 hours for the school readiness (SR) funding source, type 4 hours in the appropriate column (Columns E/F/G), the same applies to voluntary pre‐kindergarten (VPK) (Column H), for cost pool and other grants type in the correct hours (Columns I and J respectively). If hours are not directly charged to a particular funding source utilize the cost pool (Column I). Examples of the task could but not limited to answering phones, board and committee meetings and preparation.
• Funding Code Options a. Column D thru J ‐ SR hours by OCA b. Column H ‐ VPK Hours c. Column I – Cost Pool d. Column J – Other grants
• Non‐Exempt/Hourly Employees: The total hours on the top section must match the total hours in the bottom section under total hours. • Exempt/Salaried Employees: For exempt employees type in the total hours worked by funding source regardless of the regular 7.5 work days. 4. The hours and percentages are calculated automatically.
5. Time sheets should be signed by the employee and forwarded to their supervisor for approval and signature.
6. Supervisors should review for accuracy to ensure the employee has completed the time sheet according to the procedure. Supervisors should also review and approve the hours based on
Finance Committee October 29, 2014 Page 39
Early Learning Coalition of Broward County, Inc. ‐ Fiscal Policies and Procedures Revisions
September2014 Page11
their knowledge of work performed and tasks completed during the time period. Questions or concerns regarding the time sheet should be addressed with the employee prior to the approval.
7. After the time sheet has been signed and dated by the employee and supervisor, the supervisor should forward to the finance department for payroll processing.
8. The time sheets are to be completed every two weeks and are due on Friday to the finance department by 10:00 a.m.
Payroll and Benefit Cost Allocation Process 1. Completed time sheets/Payroll Activity Reports (PAR) are utilized to identify labor cost according to the FOEL approved cost allocation plan.
2. The actual percentages from the time sheets are entered into the payroll spreadsheet by the Accountant. The payroll spreadsheet is an EXCEL spreadsheet that is completed every payroll period to facilitate the input into the general ledger (GL). Every employee of the Coalition is entered on the spreadsheet based on their actual time worked for the program activity and/or funding source. In the payroll spreadsheet EXCEL file there are tabs at the bottom of the file. Each tab represents a different pay period (there are twenty‐six tabs). a. In the payroll spreadsheet there is a tab called the “Allocation Split” where the monthly agency funding allocation is tracked as per the Cost Allocation Plan. Current month cost allocation is based on program staff’s actual hours worked on the specific program during the prior month. The Accountant
Finance Committee October 29, 2014 Page 40
Early Learning Coalition of Broward County, Inc. ‐ Fiscal Policies and Procedures Revisions
September2014 Page12
communicates the monthly cost allocation based on this calculated results to the to the finance staff for accounts payable preparation on a monthly basis. b. Where other contracts and grants with labor cost are incurred, payroll expenses are charged directly to the grant according to the contractual requirements.
3. The information on the payroll spreadsheet is then is input into the accounting system GL to complete the payroll journal entry.
4. Employee benefit expenses are charged based on a cost allocation plan through the payables process.
Finance Committee October 29, 2014 Page 41
Fiscal Policies & Procedures
Early Learning Coalition of Broward County, Inc. Page1
Approved 5/29/03 Amended 12/10/03 Amended 10/22/04 Amended 9/9/05 Amended 6/8/07 Amended 5/8/09 Amended 2/12/10 Proposed 3/2010 COA 9/2014
Finance Committee October 29, 2014 Page 42
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page2
Title Page General Objectives 5 - 6 Internal Accounting Controls 7 - 11 Plan of Organization Policies and Authorization Financial Statements
Chart of Accounts Cost Allocation Prior Approval Job Rotation Bank Reconciliation Fund Balance
Budget 12 -13 Accounts Receivable and Cash Receipts 14 - 17 Objectives Employee Reimbursements Grants and All Other Receipts Deposits Accounts Payable and Cash Disbursements 18 - 33 Purpose & Authority Acronyms/Definitions
Purchasing Authorization Cash Disbursements Wire Transfer
Invoices from Service Providers Consultant Invoices Other Invoices Employee Reimbursement Prepaid Cost Petty Cash 34 - 35 Purchasing Card 36 - 43 Authority General Information Responsibilities The Purchasing Card Making Purchases Payment Processing Disputes
Finance Committee October 29, 2014 Page 43
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page3
Fixed Assets 44 - 51 Authority Property Control Definitions Responsibilities and Duties—General General Policies and Procedures Payroll 52 - 55 Payroll and Related Costs Time Sheet/Payroll Activity Report Payroll and Benefits Cost Allocation Process Employee Loans Mandatory Vacation Awards and Grants 56 - 59
Programs and Services Purchases of Products and Services
Procurement Standards 60 - 64 Contract Oversight 65 - 71 Forms Reimbursement Request Form Exhibit A Consulting Agreement Exhibit B W-9—Request for Taxpayer Identification Exhibit C Voucher for Reimbursement of Travel Expenses Exhibit D Request/Approval of Purchasing Card Exhibit E Purchasing Card Monthly Transmittal Form Exhibit F Purchasing Card Dispute Form Exhibit G Equipment Checkout Authorization Form Exhibit H Surplus Property Disposal Form Exhibit I Guidance: Sub-recipient and Vendor Determinations Exhibit J
Accounts Payable Voucher Exhibit K Wire Transfer Approval Form Exhibit L
Cash Transmittal Form Exhibit M Purchase Order Form Exhibit N Payroll Deduction Authorization Form Exhibit O
Finance Committee October 29, 2014 Page 44
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page4
VISION STATEMENT
All children in Broward County will enter kindergarten socially, emotionally, physically, cognitively and behaviorally ready to learn and families will have comprehensive early care and education services readily available to them in order to be stable and strong.
MISSION STATEMENT
To provide the resources, advocacy, leadership, coordination and oversight for early care and education from birth to school age care to ensure children’s success in school.
Finance Committee October 29, 2014 Page 45
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page5
GENERAL OBJECTIVES 1. A clearly defined organizational chart, personnel policies and procedures,
and position descriptions have been developed, reviewed, and approved by the Chief Executive Officer and the Board of Directors of the Early Learning Coalition of Broward County, Inc. (hereinafter “Coalition”). These items are on file in the Administrative Office.
2. Financial transactions are executed in accordance with written direction by
the Chief Executive Officer and/or Coalition. 3. A complete automated accounting system is maintained by the Coalition; all
transactions and all matters requiring accounting entries are properly recorded on this system on a timely basis under the supervision and responsibility of the Chief Financial Officer.
4. Assets, accounting records, and other tangible objects of value at the
Coalition’s office are safeguarded, and appropriate supervisory personnel control access to them.
5. The Chief Executive Officer monitors transactions, accounting procedures,
and journal entries made by the Chief Financial Officer. The Treasurer and Executive/Finance Committees of the Board of Directors may monitor at any time to ensure that the terms of transactions correspond with authorizations given and that they are properly recorded.
6. The Coalition’s assets are accounted for and compared with recorded
amounts on an annual basis through a physical inventory process. Personnel under the direction of the Chief Financial Officer conducts the physical inventory process. The inventory results are reviewed and approved by the Chief Executive Officer, and are available for review.
7. An audit of the Coalition’s financial operations by a qualified independent
certified public accounting firm is conducted on an annual basis. The recommendation of the accounting firm will be made by the Finance Committee and approved by the Coalition. The results of the outside audit along with any applicable laws will be made available to all members of the Coalition’s Board of Directors and any interested persons or organizations upon request.
The audit will determine whether the Coalition has met the audit requirements of the applicable OMB Circular. The audit will determine through review of the audit report whether the Coalition spent funds in accordance with applicable laws and regulations.
Finance Committee October 29, 2014 Page 46
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page6
The audit will determine whether Coalition audits necessitate adjustment of the Department's own financial records. Factors which would normally indicate that an audit should be given special attention include: Evidence of fraud or potential fraud. Material non-compliance (material as indicated by the auditor). Material internal control weaknesses (material as indicated by the auditor). Doubts about the agency's ability to continue as a going concern. Other auditor comments or conditions, such as the return of funds as a determined in the resolution process, reportable conditions, numerous findings of noncompliance, Uncorrected on-going problems. The appropriate and timely corrective actions when there are instances of noncompliance with laws and regulations should be indicated in the report to the auditor, Finance Committee and Board of Directors.
Finance Committee October 29, 2014 Page 47
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page7
INTERNAL ACCOUNTING CONTROLS Plan of Organization 1. The duties, responsibilities, supervisory, and monitoring functions of the
Coalition staff are specified in the Agency's organizational chart, personnel position descriptions, and directives of the Coalition as described in official minutes on the Coalition or its Finance or Executive Committees.
2. The activities described in item #1 above are reviewed periodically (at least
annually) by the Performance and Quality Improvement Team (PQI) and the Risk Management Team and/or revised as required by changes in designated duties and responsibilities. The reviews are planned to begin quarterly with reports completed each year in August.
3. Authority to allow or approve financial transactions by the Coalition rests with
the Chief Executive Officer, subject to FOEL policies and procedures, State and Federal laws and official action of the Coalition or the Executive Committee operating within its authority. The Chief Executive Officer executes financial transactions in accordance with an approved budget.
4. A signature card from the banking institution selected by the Coalition Board
must be completed by the Finance Department for all authorized payment signatures. Authorized signatures include the Chief Executive Office and the Coalition Board Officers.
5. The Coalition maintains necessary insurance to protect the Agency against
losses of money or other property resulting from the fraud or dishonesty of any of its employees.
6. A written policy exists on conflict of interest and is contained within the bylaws
for the Coalition’s Board of Directors and in policies and procedures for staff of the Coalition. Applicable policies are on file in the Administrative Office and must be adhered to at all times.
Policies and Authorizations 1. Policies, as well as general and specific authorization to undertake actions or
consummate transactions, are in writing for important matters and are detailed in various sections of this Fiscal Policy Manual.
2. Matters authorized in minutes of the Board of Directors and /or the
Executive/Finance Committees of the Coalition, are monitored by the Chief Executive Officer to determine if corresponding transactions have been consummated in accordance with board actions and have been properly recorded in the accounts. The Finance Committee of the Coalition may
Finance Committee October 29, 2014 Page 48
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page8
periodically monitor selected completed transactions to assure compliance.
3. Policies, notices and other instructions sent by the Florida Office of Early Learning (hereinafter “FOEL”) are disseminated by the Chief Executive Officer or designee via e-mail for staff to maintain documentation and institute compliance. Additional copies are maintained and filed by the Coalition’s Administrative Assistant for hard copy files.
Accounting and Financial Statements 1. The accounting processes are controlled through segregation of duties within
the Administrative Staff. The Chief Financial Officer is responsible for the day-to-day operations of the accounting function.
2. The accounting principles and methods utilized by the Coalition and
contained in all of the Coalition's financial statements, reflect the full accrual basis of accounting.
3. The Chief Financial Officer consults the Chief Executive Officer and/or the
Executive/Finance Committees of the Coalition regarding difficult or unusual questions or challenges relating to accounting matters, including accounting estimates, accruals, and disclosures.
4. All entries on the Coalition's accounts are supported by documentation
bearing appropriate authorization and/or approval. Appropriate authorizations may be the Chief Financial Officer, Chief Executive Officer and authorized Board Officers.
5. The Coalition maintains forms and documents supporting all accounting
entries in its administrative files. All supporting documentation is maintained for a minimum of five (5) years.
6. The Coalition shall follow FOEL Program Instruction OEL-PI-0038-06, OEL-
FG-0001-12 and OMB Circular A-110 in managing grantor cash request and disbursements of payments. All request for cash advances for the school readiness and VPK programs shall not exceed the FOEL maximum amount unless approved by FOEL and also less than the calculated cash flow needs for the following month.
7. Trial balances of the general ledger and subsidiary ledgers are prepared and
reconciled monthly by the Accounting Manager and reviewed by the Chief Financial Officer. The Executive/Finance Committees of the Coalition may review these reconciliations.
8. Interim Financial Statements are prepared monthly by the Chief Financial
Officer. The Chief Executive Officer, the Executive/Finance Committees and
Finance Committee October 29, 2014 Page 49
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page9
the Coalition board reviews and approves financial statements. 9. The Chief Executive Officer specifically authorizes asset write-offs and other
account adjustments, after consultation with the Executive/Finance Committees or Coalition or after approval of the Coalition.
Chart of Accounts The Coalition maintains a chart of accounts and their appropriate descriptions. The chart of accounts provide information needed to prepare prompt, accurate and complete recording of revenues and expenses which facilitate the preparation of financial statements. The Coalition optimizes financial accountability by applying sound financial management practices in accordance with applicable laws and regulations. 1. The chart of accounts are to show all revenue and expense cost centers
currently in use. 2. Changes, modifications, additions or deletions to the chart of accounts are
reviewed and approved by the Chief Financial Officer, who is the responsible party for its maintenance.
Cost Allocation 1. The Coalition allocates costs in accordance with the requirements of
Generally Accepted Accounting Principles and OMB Circular A-122, “Cost Principles for Non-Profit Organizations.” A cost allocation plan structured in accordance the OMB Circular has been submitted to FOEL.
2. All costs included in the plan are properly allocable to Federal awards on the
basis of a beneficial or causal relationship between the expenses incurred and the agreements to which they are allocated in accordance with applicable requirements. Similar types of costs have been accounted for consistently.
3. The cost allocation plan is reviewed on an annual basis by the Chief Financial
Officer. The annual certification form is submitted to FOEL on or before May 15th of each year.
Prior Approval 1. The Coalition submits cost items requiring prior written approval to FOEL in
accordance with OMB Circular A-122 Cost Principles for Non-Profit Organizations and FOEL Fiscal Guidance 05-046 Final Guidance on Prior approval Procedures for Selected Cost and Administrative Requirements as needed basis or on or before June 15th of each year. Examples of costs that require prior approval include the following:
Finance Committee October 29, 2014 Page 50
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page10
Special purpose equipment, buildings, and land Improvements to land, buildings, and materials Fines, penalties, and damages Overseas travel Capital expenditures with a unit cost of more than $5,000
2. To increase transparency and accountability in compliance with F.S. 1002.84, the Coalition must submit a written notification (<$25,000) within thirty days of Board approval or request a prior written approval from FOEL for contacts with a member of the coalition or a relative, as defined in s. 112.3143(1)(b). Disclosing the conflict of interest, the Coalition Board must approve the contract by two-thirds vote.
Job Rotation / Mandatory Vacation Job rotation should occur from time to time for personnel who handle daily receipts. This financial duty will be rotated for several weeks, several times a year. Any employee in a position of fiscal trust or as determined by the location is required to take an annual vacation which is at least five (5) consecutive work days in duration. All efforts shall be made by the Coalition to permit an annual vacation consistent with this position. For purposes of this document a position of fiscal trust is defined as a position or assignment which requires an employee to receipt or disburse monies; reconcile or journalize accounts, process payroll transactions or purchase goods or services on behalf of the Coalition. Bank Reconciliation It is the policy of the Coalition to maintain appropriate controls over cash accounts and to complete monthly reconciliation of bank statements to the general ledger cash account in conformity with sound accounting and financial controls. Bank accounts are authorized by the Coalition Board. 1. Bank statements will be received by the office receptionist and forwarded to
the Chief Financial Officer. The Chief Financial Officer will open and review the bank statements for unusual items, unreasonable or recurring bank fees. The Chief Financial Officer will document his or her review by completing, signing and dating the bank reconciliation checklist form.
2. Bank statements will be forwarded to the Accountant for reconciliation with
the general ledger. The Accountant will sign the bank reconciliations and forward them to the Chief Financial Officer. The bank reconciliations will be reviewed for accuracy and completeness and then signed by the Chief Financial Officer.
Finance Committee October 29, 2014 Page 51
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page11
3. Bank reconciliations will be completed and approved by the 20th day of the
following month.
4. Any checks outstanding over 180 days should have a stop payment executed by the Accountant and approved by the Chief Financial Officer. A journal entry is prepared by the Accountant to restore the check cash. The 180 day validity period will be noted on all check disbursements.
Fund Balance Establish and maintain minimum fund balance and reserve funds of unencumbered and uncommitted funds at a level relative to the annual operating budget and the historical costs of operating and maintaining the organization. The required level of funds would total two months of operating expenses and 50% of the value of exempt employee’s accrued vacation. The fund balance and reserves which are separate and apart from fixed assets are intended to serve a dynamic role and is available to be utilized as needed rather than being static or devoted only to generating interest income. The Coalition is responsible for any further investment decisions over and above the fund balance or reserve levels.
Finance Committee October 29, 2014 Page 52
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page12
BUDGET Annual Budget Preparation and Adoption An annual operating budget is prepared, maintained and revised during the fiscal year for the organization to inform management of available financial resources and also in support of the Coalitions goals, objectives and mission statement. Variances of actual expenditures to budget projections are monitored on at least a monthly basis providing financial accountability practices in accordance with the Coalitions by-laws, applicable laws and FOEL policies. Budgets shall be submitted for acceptance by Florida Office of Early Learning in the annual report. The Chief Executive Officer shall submit to the Coalition Board a balanced annual budget. Budget Preparation 1. Budgets are prepared in coordination with the Chief Financial Officer, senior
management for the Coalition and the program activity.
2. The proposed annual budget is prepared in accordance with the overall mission of the Coalition to include the following considerations:
Program priorities of the agency as identified by management Anticipated funding levels during the current fiscal period using current
and prior fiscal years financial data Identify direct and indirect costs to operate programs in accordance
with OMB Circular A-122, “Cost Principals for Non-Profit Organizations” in addition to all applicable laws and FOEL policies
Project changes in cost and conditions during the fiscal year Contractual obligations including the targeted funds requirements and
restrictions
3. Projected budget expenditures are determined by program function, contract activity, and then consolidated into the Coalition total budget. This methodology utilizes historical monthly data with the inclusion of program and administrative planning assumptions.
4. The Coalition Board reviews and approves the annual budget prior to its implementation. Any subsequent amendments or revisions to the budget must also be approved by the Coalition Board.
5. On at least a monthly basis, the financial reports shall include a variance report comparing actual expenditures to budget projections that are monitored
Finance Committee October 29, 2014 Page 53
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page13
and submitted by the Chief Financial Officer to the Chief Executive Officer for review. Any significant differences are identified, explained and reported in the financial reports during Finance Committee meetings. A comprehensive annual review of the actual to budgeted expenditures are performed following the completion of the fiscal year end audit.
6. The monthly reviews of the actual expenditures are examined during the
fiscal year and at-year-end with creation of the financials and the monthly year-to-date reconciliation of the agency’s expenditures and the contracts. Monthly variations of greater than 5 percent (5%) in any revenue or expense account are flagged for review with the Chief Executive Officer or the Finance Committee.
7. Budget data also contains expenditure trend projections based on historical expenditure analysis and planned programmatic changes or enhancements. The trend data is utilized to proposed adjustments to the projected budget as well as to forecast adjustments to future contracts.
8. Budget projections can be modified throughout the fiscal year if necessary to adjust revenues and expenditures based on changes in program resources and planning assumptions.
9. The financial reports are used in the evaluation and review of expenditure variance along with the results of the six month financial review during the fiscal year.
Budget Amendments
1. Budget amendments will be summarized and regularly presented to the
Finance Committee and to the Coalition for approval on a monthly basis and shall correspond with the financial close of each calendar month following the date of adoption.
2. Budget amendments will be presented to the Finance Committee and to the
Coalition Board for prior approval if funds are being moved between functions. When required, budget amendments shall be presented to FOEL for approval.
3. Budget amendments will be inclusive of all changes to revenue and
appropriations. 4. Expenses may temporarily exceed the amount budgeted by object. Upon
recommendation of the Chief Executive Officer the budget will be amended on a monthly basis to eliminate any such temporary line item deficits. Expenses may not exceed the total budget.
Finance Committee October 29, 2014 Page 54
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page14
ACCOUNTS RECEIVABLE AND CASH RECEIPTS It is the policy of the Coalition to establish sound cash management practices that ensures efficient utilization of cash in a manner consistent with the overall strategic goals. The accounts receivables policy is implemented to properly safeguard, prompt deposits, and accurately record all receipts in the integrated, fund accounting system (MIP) and to provide thorough internal controls as it relates to cash management. Objectives All cash funds maintained on the Coalition premises are safeguarded at all times. Any cash/ checks kept overnight on the Coalition premises are kept in a secure location. Interest Any interest earned as a result of cash balances in any Bank account, is recorded into the financial system upon receipt of statements. Accounts Receivables Generally, a receivable arises when the Coalition has a valid claim against an individual or another entity. Therefore, the creation of a valid claim signals the need to record an account receivable. The purpose of accounts receivable procedures is to record and maintain accounts of claims against others for the future receipt of money. Accounts receivables are required to be recorded in the accounting system for all revenues susceptible to accrual. The Coalition records an accounts receivable when a valid claim is billed. Control of accounts receivable consists of determining amounts due from others, billing them on a timely basis, recording them on a timely basis, and promptly collecting the amounts billed. 1. General Rules for Receipts
1. The Coalition discourages accepting cash. Checks are the preferred method of payment.
2. Checks are photocopied and stamped with the appropriate deposit
endorsement stamp by the Office Assistant. Originating documentation is kept with the copy of the check. (Note: Copies of original documents pertaining to contracts and grants are filed in the appropriate contract or
Finance Committee October 29, 2014 Page 55
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page15
grant file.)
3. When cash is received, a two-part receipt is prepared, signed by the accepting employee, and the original receipt presented to the donor. The cash is placed in the lock box in the Accounting Manager’s office.
4. Cash payments are submitted to the Accounting Department via the Cash
Transmittal Form (See Exhibit M).
a. Section A, enter your name. b. Section B, enter payment information on appropriate line if more than
one payment is included enter a total on the total line. Include back-up, i.e., copies of phone bills, training logs, etc.
c. Obtain Chief Executive Officer’s approval. d. Employees who accept reimbursement from visitors to the Coalition
are responsible for providing the individual a receipt, completing the transmittal form, and attaching appropriate documentation.
5. Checks returned for insufficient funds are:
a. Re-deposited, and a service fee is charged. b. Checks returned a second time, require that the issuer submit a money
order or cashiers check. c. Continued insufficient fund checks will result in the Coalition not
accepting checks—money orders or cashier checks will be required.
2. Employee Reimbursements
Payment received from employees for reimbursements to the Coalition are deposited into the bank account. The deposit slips are prepared and deposits are made by the Accounting Manager. The receipts are recorded in the financial system in the appropriate account.
3. Grants and All Other Receipts
Payment received from local agencies for reimbursements to the Coalition is deposited into the bank account. The deposit slips are prepared and deposits are made by the Accounting Manager. The receipts are recorded in the financial system in the appropriate account.
4. Cash Management
1. All checks must be turned in to the office receptionist on the day they are
received to be logged in. Payments may not be held by other employees, or held in department files overnight. The checks should then be given to the Accounting Manager to be secured and prepared for deposit.
Finance Committee October 29, 2014 Page 56
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page16
2. The deposit slips are prepared and deposits are made by the Accounting
Manager within the next two (2) business days.
3. Deposit information is retained by the Accounting Manager and used for bank reconciliation by the Accountant.
4. The Accounting Manager maintains the current deposit books. Completed books are maintained by the Chief Financial Officer.
5. The receipts are recorded in the financial system in the appropriate account.
5. Contributions
It is the policy of the Coalition to acknowledge all cash contributions, donated goods and services into the accounting systems in a timely manner. 1. Cash contributions are received and processed by the Coalition’s
Accounting Manager. The appropriate documentation surrounding the contribution is forwarded to the Accounting Manager and the appropriate journal entries are made.
2. The Coalition is responsible for assigning a value to donated items. The
value of a donated item may be recorded as the amount that the organization would pay for a similar item at fair market value.
6. Deposits
The Office Receptionist will: 1. Receive and confirm date of receipt of any checks or cash that is
received in the office. Either by time stamp or an attached confirmation.
2. Log in the receipt information. Log information should include a
description, the amount and sender’s name. 3. Within one business day the Officer Receptionist should forward the
check or cash to the Accounting Manager.
Accounting Manager will: 1. Prepare the deposit slip. 2. List checks individually on the deposit slip noting name and/or check
number for that day in the receipt information.
Finance Committee October 29, 2014 Page 57
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page17
3. Run a machine tape to verify the total of the deposit; copy deposit slip. 4. Retain copies of the deposit slip, checks, and back-up received with
the checks for the file. 5. Take bank deposit to the bank within two (2) business days. 6. The bank receipt is stapled to the carbon of the deposit slip. Copies
are kept for a minimum of five years or longer based on IRS regulations.
Chief Financial Officer will:
1. Review Office Receptionist log and deposit slips on a weekly basis to
assure deposits are made in a timely manner.
Finance Committee October 29, 2014 Page 58
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page18
ACCOUNTS PAYABLE AND CASH DISBURSEMENTS The Coalition Finance Department is responsible for accurate and timely payment of all invoices for the organization. This includes all payments on purchase order, vouchers, vendor invoices, travel expense reimbursements, and invoices from the service provider (Subrecipient). Purpose The purpose of this procedure is to detail the manner in which payment is made to Service Providers, Vendors, and Employees for reimbursement issues. This procedure details the Coalition’s responsibilities and the Finance Department’s manual and online steps for payment. Authority Chapter 2000-461, Laws of Florida. Chapter 112, Florida Statutes, Acronyms/Definitions Coalition Early Learning Coalition of Broward County, Inc. Contract A formal written agreement between the Coalition and
a Contractor for the procurement of services. (A Service Provider’s formal contract consists of the Standard Contract and all attachments and exhibits).
Invoice Document received from a Provider or Vendor
requesting payment for services or goods. Packing Slip Document shipped with ordered goods, which lists the
contents of the shipment. Verification of receipt should be noted if the goods received were the goods ordered and the goods are in expected condition.
Purchase Order (PO) Legal document between the Coalition and Vendors
to order goods or services and to facilitate payment for the goods or services. The transfer of a requisition to a PO encumbers the dollar amount of the purchase against the budget.
Receipt-Physical Delivery of goods to the Coalition office. The goods
Finance Committee October 29, 2014 Page 59
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page19
received must match the goods ordered on the PO and they must arrive in pristine condition.
Reimbursement– Employee Reimbursement to staff members for out-of-pocket
expenditures made by permission of the Chief Executive Officer to benefit Coalition operations.
Reimbursement – Mileage Reimbursement to staff members for use of their
private vehicles for Coalition company business. Service Provider An individual or entity that was chosen by the
Coalition as a result of its procurement activities and delivers services.
Subrecipient A nonstate entity that received state financial
assistance through another nonstate entity. Vendor Agency, person, or company that provides goods or
services to the Coalition. A/P Vouchers Document used to signify invoice approval by the
Coalition.
Finance Committee October 29, 2014 Page 60
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page20
Purchasing Authorization
The Chief Executive Officer shall ensure all purchases made by with Coalition funds are properly authorized prior to purchase. All purchasing transactions of products and services should be deemed useful or necessary in the operation, administration and management of the Coalition, its staff, its office and its activities. 1. Spending Limitations Purchases of single items costing less than $5,000 are approved at the
discretion of the Chief Executive Officer. No bid, quote or solicitation requires for submittal. Board has empowered the Chief Executive Officer to spend up to $5,000 for products or services if under the approved budget, without prior approval.
Purchases of single items costing $5,000 or more must be pre-approved by
the Board or Executive Committee, if specifically empowered by the Board. 2. Purchase Order Prior to the commitment of Coalition funds a Purchase Order form (Exhibit N)
must be utilized as the authorizing document for the purchase of goods and services. Excluded expenditures are those expenditures related to travel where an Out of County Advance Travel Request (Exhibit J of the Coalition Employee Manual) is used.
Generation of a purchase order will follow these same steps as indicated
below:
Employees requesting purchase will:
1. Complete the Purchase Order form including the vendor Information, date, preparer, shipping method, payment terms, quote number if applicable and the purchase description. Funding source, if specified should be included on the form if necessary.
2. Attach appropriate documents or quotes. 3. Obtain budget approval of the Chief Financial Officer. 4. Obtain approval of the Chief Executive Officer. 5. Obtain a purchase order number from the Accountant. 6. Procure the requested goods or service.
Finance Committee October 29, 2014 Page 61
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page21
7. Initial the package slip when goods are received and provide to the Accountant.
Accountant will:
1. Review the purchase order for accuracy. 2. Maintain and file the Purchase Order and attached document. 3. Receive and review the final invoice and packaging slip when goods
are received. 4. Enter A/P Voucher related to the approved invoices and purchase
order. 3. New Vendor Set-up
New vendors are entered into the accounting system by the Accountant or the Accounting Manager on an as-needed basis. The following information is typically required when establishing a new vendor/payee:
Name of Vendor / Payee Mailing address Federal Tax Identification Number (Businesses) Social Security Number (personnel) IRS W-9 form
4. Cash Disbursements
1. The Accountant is responsible for the preparation of all accounts payable Vouchers for the Coalition. The Chief Financial Officer reviews the accounts payable Vouchers and prints the checks. The Chief Executive Officer approves all A/P Voucher and checks.
2. All cash disbursements at the Coalition are made by check or electronic
funds transfer (EFT). 3. All checks on the Coalition bank accounts are pre-numbered and their
sequence is accounted for monthly by the Chief Financial Officer.
4. Voided or spoiled checks are marked as such. They are filed in sequential order and retained.
5. The Chief Financial Officer verifies the stock bi-weekly and safeguards un-
issued blank checks
Finance Committee October 29, 2014 Page 62
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page22
6. The Chief Executive Officer and Board Officers are authorized to sign checks on the Coalition's bank account(s). All checks written to a specific party require the signatures of the Chief Executive Officer and a board officer or two board officers.
7. The Coalition checks are only drawn to the order of specific parties and
not to “Cash” or “Bearer”. 8. All accounts payable disbursements from the Coalition require proper
documentation prior to a check being issued. Proper documentation includes:
9. All accounts payable disbursements from the Coalition require proper documentation prior to a check being issued. Proper documentation includes: Approved Payment A/P Voucher Original Invoice/e-mailed invoice Packing slip when available Travel Reports with original receipts attached Credit/purchasing card statements with supporting documentation
10. Disbursements of funds are authorized by the Chief Executive Officer and
a Board Officer or by two Board Officers. 5. Wire Transfers
The Accounting Manager is responsible for the preparation of all wire transfer request for the Coalition. The Chief Financial Officer reviews and signs the request for the Chief Executive Officer and a Coalition Board Officer approval.
Accounting Manger will:
1. Prepare the Wire Transfer Approval Form (Exhibit L) and the Accounts
Payable Vouchers Form (Exhibit K). 2. Review calculations and backup information for correctness, 3. Signs the Wire Transfer Approval Form. 4. Forward to the Chief Financial Officer for review and approval.
Chief Financial Officer will:
1. Review the request for completeness and accuracy.
Finance Committee October 29, 2014 Page 63
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page23
2. Provide forms and back-up to Chief Executive Officer or officially designated staff and/or Board officer for approval. Facsimile is acceptable (original to be provided at the committee meeting or board meeting).
Accounting Manager will:
3. Enter the wire transfer amount on-line. 4. Forward the approved form and back-up to the Chief Financial Officer.
Chief Financial Officer will:
1. Complete the wire transfer approval process on-line. 2. Forward the completed documents to the Accounting Manager for
processing into the Accounts Payable module in the accounting system.
The Chief Executive Officer, the appropriate Board Officer and the Chief Financial Officer are the only authorized individuals to approve a wire transfer. The Chief Executive Officer can obtain verbal approval from the Coalition Chair to initiate a wire transfer payment in the case of an emergency. The Chief Executive Officer will contact the bank by telephone to initiate a “phone in” wire transfer. A wire transfer form will be processed and submitted to the Coalition Chair for approval within two (2) business days after resuming regular operations.
Finance Committee October 29, 2014 Page 64
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page24
Types of Invoices Invoices from Service Providers Service Providers will - Submit a hard copy of Invoices with 5045 series
backup to the Coalition, by the 14th of each month (or as noted in the service provider contract).
Accounting Manager will:
1. Verify that the Invoice is the original, signed copy and if not, request originals or certified originals from provider
2. Review the invoices for contract compliance. 3. Verify that the Invoice:
a. Has appropriate back-up attached b. Back-up dollar amounts total to invoice line item amounts.
4. If Invoice is incorrect:
a. Missing back-up: Follow up with provider and request that the missing back-up be provided within two (2) business days.
b. Services do not match contract: Require provider to take corrective
action within three (3) business days. 5. If Invoice is correct:
a. Prepare cover A/P Voucher, and send along with invoice and back-up to Chief Executive Officer for approval.
b. Prepare a ‘combined’ invoice for the month. c. Verify the correctness of the combined invoice. d. Send the combined invoices to Chief Executive Officer for approval. e. Verify signature of approval on invoice.
Accounting Manager will:
1. Post the payables in the financial system (MIP) with the invoiced amounts.
Finance Committee October 29, 2014 Page 65
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page25
2. Indicate A/P Voucher- input date in area provided on Invoice.
3. Maintain entered A/P Voucher- for Chief Financial Officer, until time to post and run checks.
Chief Financial Officer will:
1. Review and approve the payables for completeness and accuracy. 2. Post A/P Voucher- batches and print associated reports for Coalition files. 3. Print checks and process wire transfers bi-weekly or as needed. 4. Post check/wire run and print associated reports for Coalition files. 5. Provide checks and Wire Transfer Approval forms (Exhibit L) to Chief
Executive Officer and appropriate Board Members for signature. 6. Provide posting reports to Accounting Manager for filing.
Accounting Manager with the assistance of the office receptionist will:
1. Distribute checks to Service Providers and Vendors. Checks generally will be mailed. Requests for exceptions shall be noted on cover A/P Voucher- and approved by the Chief Executive Officer.
2. Attach check stubs to corresponding invoice. 3. Date stamp each invoice ‘PAID’ and file the stamped invoices in
appropriate AP folder. 4. File posting reports in Coalition file, and paid invoices in Accounts Payable
folders.
Finance Committee October 29, 2014 Page 66
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page26
Consultant Invoices The Coalition will contract on an ongoing basis with program consultants and monitors. Program Consultants and Monitors must have a Contract or Consultant Agreement (See Exhibit B) and a W-9 (See Exhibit C) on file before payment will be made. The Coalition is responsible for verifying that the contracted work has been completed in a manner that would be satisfactory to the Coalition’s expectations. Payment of all consultant invoices will follow these same steps as indicated below. Original Consultant Invoices will be:
1. Date stamped in any blank area of the invoice and 2. Delivered to the appropriate Contract Administrator (agreement
originator). The Contract Administrator will:
1. Check that back-up, if required by the contract, is attached to each
invoice. 2. Provide invoices to the Chief Executive Officer or authorized staff and/or
Coalition Board officer for approval signature, indicating that the contracted assignment has been fulfilled by the consultant.
3. Provide received invoices to the Accountant.
Accountant will:
1. Enter the payables in the accounting system (MIP) with the invoiced amounts.
2. Maintain invoices in file for subsequent check run.
Chief Financial Officer will:
1. Review and approve the payables for completeness and accuracy. 2. Post A/P Voucher batches and print associated reports for Coalition files. 3. Print checks bi-weekly (if applicable).
Finance Committee October 29, 2014 Page 67
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page27
4. Post check run and print associated reports for Coalition files. 5. Provide checks to Chief Executive Officer and appropriate Coalition Board
Officer for signature. 6. Attach copies of checks to corresponding invoice. 7. Provide all posting reports to Accountant or Accounting Manager for filing.
Accountant will:
1. Distribute checks to consultant. Checks generally will be mailed. Requests for exceptions shall be noted on the cover A/P Voucher- and approved by the Chief Executive Officer.
2. Date stamp each invoice ‘PAID’ and file the stamped invoices in
appropriate AP folder.
Finance Committee October 29, 2014 Page 68
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page28
Other Invoices Vendor Invoices received in mail will be:
1. Date stamped by the office assistant in any blank area of the invoice, 2. Delivered to the Accountant. 3. Issued a cover A/P Voucher by the Accountant. 4. Approved for payment by the Chief Executive Officer or officially
designated staff and/or Coalition Board member. Vendor Invoices received with the order will be:
1. Date stamped in any blank area of the invoice, by the staff member who accepts the delivery of the goods.
2. Delivered to the Accounting Department. 3. Issued a cover A/P Voucher. 4. Approved for payment by the Chief Executive Officer or officially
designated staff and/or Coalition Board member.
Accountant will:
1. Determine if the Invoice is the result of a Purchase Order and indicate the PO number on the invoice.
2. If other type of order, indicate account coding.
3. Accountant should assure that staff members who ordered the goods, has
checked that the goods (physically received) are the goods that were ordered from the vendor; and that the goods are in ‘as new’ condition. Initial the packing slip and submit both the packing slip and the invoice to the Accounting Department for payment.
4. Review Invoices for accuracy. A/P Voucher. 5. Enter A/P Voucher for received and approved invoices. 6. Receive approved Invoices for other purchases and enter A/P Voucher
into financial system.
Finance Committee October 29, 2014 Page 69
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page29
Chief Financial Officer will:
1. Review and approve the payables for completeness and accuracy.
2. Post A/P Voucher batches and print associated reports for Coalition files. 3. Print checks bi-weekly (if applicable). 4. Post check run and print associated reports for Coalition files. 5. Provide checks to Chief Executive Officer or officially designated staff
and/or Coalition Board officer for approval. 6. Attach copies of checks to corresponding invoice. 7. Provide all posting reports to Accountant for filing.
Accountant with the assistance of the office receptionist will:
1. Distribute checks to vendor. Checks generally will be mailed. Requests for exceptions shall be noted on the cover A/P Voucher and approved by the Chief Executive Officer or officially designated staff and/or Board officer.
2. Date stamp each invoice ‘PAID’ and file the stamped invoices in
appropriate AP folder.
Finance Committee October 29, 2014 Page 70
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page30
Employee Reimbursement Employees may, from time to time, find it necessary to expend personal funds to benefit the Coalition. This section details the steps necessary for reimbursement of personal funds.
A. Personal expenditures include:
1. Miscellaneous expenditures, such as;
a. Registration for local workshops b. The use of a personal phone for long distance calls that benefit the
Coalition. c. The use of a personal cell phone to conduct Coalition business. d. Last minute supply items necessary to conduct Coalition business.
2. Mileage, tolls, or parking charges accumulated while conducting Coalition
business, or attending local workshops or site visits. (see Exhibit D Voucher For Reimbursement of Travel Expenses)
3. Out of County Travel (See Coalition Employee Manual)
B. Employees requesting reimbursement for:
1. Miscellaneous expenditure reimbursement should be requested within thirty (30) days of which the reimbursable expenses are incurred or by the end of the following month to the Accounting Department:
a. Attach appropriate original receipts. Expenditures are not reimbursed
without original receipts. b. Obtain approval on an Employee Reimbursement Form (Exhibit A) of
Chief Executive Officer. c. Provide approved reimbursement request to the Accounting
Department.
2. Mileage expenditures (local) should be requested within thirty (30) days in which the reimbursable expenses are incurred or by the end of the following month unless the amount totals less than $15.00 and then the applicable Voucher for Reimbursement of Travel Expenses form (Exhibit D) must be completed filed within the current quarter (no later than the current FY) of the incurred expenses. a. Attach receipts for parking and tolls b. Obtain approval of Chief Executive Officer. c. Provide approved mileage vouchers to the Accounting Department.
3. Travel reimbursement should be requested on return from the trip by
Finance Committee October 29, 2014 Page 71
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page31
completing the previously approved Voucher for Reimbursement of Travel Reimbursement form (Exhibit D).
a. Employee must complete an Advance Travel Request Form (see Page
9, Section A of the Employee Manual). b. Attach program and/or agenda from event attended, receipts for
parking and tolls, or taxi, etc. c. Obtain approval of Chief Executive Officer. d. Provide the approved travel vouchers to the Accounting Department.
Accountant will:
1. Review calculations and backup information for correctness, and:
a. If correct, enter information into financial system. b. If incorrect or incomplete, return to originator for correction or
completion. c. Work with originators to solve problems in a timely manner.
2. Process check run for payment.
Chief Financial Officer will:
1. Review and approve the payables for completeness and accuracy. 2. Post voucher batches and print associated reports for Coalition files. 3. Print checks bi-weekly (if applicable). 4. Post check run and print associated reports for Coalition files. 5. Provide checks to Chief Executive Officer or officially designated staff
and/or Board officer for approval. 6. Attach copies of checks to corresponding invoice. 7. Provide all posting reports to the Accountant for filing.
Accountant with the assistance of the office receptionist will:
1. Distribute checks to employees. Checks generally will be mailed. Requests for exceptions shall be noted on the cover A/P Voucher and approved by the Chief Executive Officer or officially designated staff and/or Board officer.
2. Date stamp each invoice ‘PAID’ and file the stamped invoices in
Finance Committee October 29, 2014 Page 72
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page32
appropriate AP folder. Prepaid Cost (Participant Support Costs) It is the policy of the Coalition to minimize the purchase of prepaid items. Prepaid costs are those cost which are disbursed for goods and services in advance of the receipt of the goods and services. These costs must be allowable cost that must be goods and services consumed during the period of availability, have an appropriate allocation of cost based on the benefit received, must be reasonable under the circumstances and have sufficient documentation to justify the prepayment. 1. For goods or services to be consumed during the period of availability –
OMB Circular A-110 (2 CFR 215), states that the period of availability as where a funding period is specified, a recipient may charge the grant only allowable costs resulting from obligations incurred during the funding period. The funding period for ELC’s is their grant year, which corresponds to the State Fiscal Year (July 1 – June 30).
2. Reasonable under the circumstances – The cost and the prepayment of
that cost must be ordinary, necessary and within sound business practice. If there are other options for payment besides prepayment (i.e., installment payments), the ELC should document why the pre-payment option was the most cost effective (i.e., cost savings) and provided the greatest benefit to the grant.
3. Identify the appropriate allocation of costs to the award(s) based on the
benefit received – The appropriate OCA(s) must be charged. 4. Sufficiently documented to justify the prepayment – This includes:
A description of the cost to be pre-paid and the grant program(s) to be charged for the cost along with applicable funding periods for the charged grants.
The cost savings or other business rationale for making the pre-payment. A description of the methodology used to allocate the cost among the
various benefitting grant programs. The time period the pre-payment covers.
The Coalition will maintain appropriate records to show the balance of the prepaid cost or items throughout the grant year, and perform a periodic physical inventory on prepaid items to confirm items are distributed on a first-in, first-out (FIFO) basis to ensure compliance. Prepaid cost determination must be established and the following steps provide for segregation of duties and processes for the safeguarding of the prepaid
Finance Committee October 29, 2014 Page 73
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page33
items: Program Coordinator will:
1. Determine the eligibility and issuance practices and plan.
2. Describe and document the cost of the prepaid item and the grant
program to be charged along with the applicable funding periods for the
charged grants.
3. Obtain budget approval of the Chief Financial Officer.
4. Obtain approval of the Chief Executive Officer.
5. Obtain a purchase order number from the Accountant.
6. Procure the requested goods or service.
7. Deliver to the Accountant the Purchase Order and the attached
documentation.
8. Initial the package slip when goods are received and provide to the
Accountant
9. Confirm the distribution process and documentation required with the
Accountant.
Accountant will:
1. Review the purchase order for accuracy. 2. Maintain and file the Purchase Order and attached document. 3. Receive and review the final invoice and packaging slip when goods are
received. 4. Maintain the supporting records for the prepaid items. 5. Perform the periodic reconciliations, including follow-up questions where
appropriate.
Finance Committee October 29, 2014 Page 74
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page34
PETTY CASH It is the policy of the Coalition to make available limited resources to facilitate immediate purchases made on behalf of the organization. To limit access to and properly safeguard petty cash funds. The Coalition has determined a need to maintain a petty cash fund. The following information details the establishment, safekeeping, and accounting for those funds.
Establishment of Petty Cash Funds
1. The Chief Executive Officer will request that the Accounting Department cut a
check payable to the Chief Executive Officer for petty cash. 2. The Accounting Department will cut a check for the requested amount. The
Accounting Department will debit petty cash in the amount of the check. 3. The Chief Executive Officer will cash the check and return the cash to the
petty cash custodian. The Accountant shall be the designated custodian which must be secured in a locked drawer. The maximum amount of petty cash on hand in the Coalition office at one time is limited to $100.00.
Use of Petty Cash Funds
1. Petty cash may be used for small day-to-day expenses to assist in maintaining a smooth flow of office operations such as:
a. Office Supplies b. Registration c. Out-side printer d. Meeting supplies
Note: Sales Tax will not be reimbursed from petty cash
2. As expenses from petty cash occur, a petty cash Use form must be
completed indicating the purpose of the expenditure (benefit to Coalition) and the receipt for the expenditure MUST be attached. The forms and original receipts must be maintained with the remaining petty cash funds, until replenishment is requested.
Reconciliation of Petty Cash Funds
Finance Committee October 29, 2014 Page 75
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page35
1. The Coalition will reconcile petty cash monthly. To reconcile: a. Start with the original petty cash Amount, i.e. $100. b. Deduct the total of the receipts awaiting replenishment c. Subtract b. from a. and the total should equal the petty cash remaining.
2. Repeat this process monthly, using the previous months petty cash remaining
as the starting point. 3. Submit a copy of the month reconciliation to the Accounting Department. Replenishment of Petty Cash Funds
1. The custodian will submit a request for replenishment to the Chief Financial
Officer for approval. This request must include all completed petty cash Use forms and the associated original receipts.
2. After approval, the Accounting Department will indicate the necessary
account coding on each petty cash Use form, debit the Coalition budget in those coding lines and cut a check for the requested amount.
Closing of Petty Cash Funds
1. Petty cash should be closed:
a. If the Coalition determines that they no longer need a petty cash fund. b. If there is a change of Chief Executive Officer, the petty cash fund will be
closed. 2. To close the account, staff will submit to the Accounting Department all
remaining cash for deposit along with all remaining completed petty cash Use forms with associated original receipts.
3. The Accounting Department will deposit the remaining petty cash, indicate
account coding on petty cash Use forms, debit the budget for the used cash and credit the petty cash Balance Sheet Account to close out petty cash.
Finance Committee October 29, 2014 Page 76
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page36
PURCHASING CARD
Authority
The purpose of this policy is to provide directions for making purchase card purchases for business purposes in accordance with: Chapter 2000-461, Laws of Florida. Chapter 287.057, Florida Statutes. General Information
The Early Learning Coalition of Broward County has determined that the use of petty cash is an appropriate method to accomplish small purchases, and limited travel (as described in the Chapter entitled “Travel & Mileage Reimbursement”). To facilitate these small purchases and limited travel, a purchasing card will be issued to certain Administrative Staff members, as determined by the Chief Executive Officer. Any credits, discounts, points, miles etc. from the use of this card is to be used only by the express permission of the Chief Executive Officer or Board for Coalition purposes only. This procedure details the use of the Purchasing Card. A. The Purchasing Card should:
1. Provide a convenient, efficient method of obtaining purchases. 2. Reduce the time spent processing low dollar transactions, the redundancy
of replenishing petty cash, and the possibility of errors in handling cash. 3. Ensure all purchases are within Coalition Purchasing Policies. 4. Improve management reporting. 5. Improve service to eligible users and the vendor community. 6. Provide potential for enhanced discount structure with vendors. 7. Ensure exemption from sales tax on purchases.
B. The Purchasing Card may be used for the following pre-approved purchases:
1. Office Supplies 2. Printing/Copying 3. Subscriptions 4. Postage 5. Hotel 6. Registration 7. Airline Tickets 8. Parking
C. The following purchases are prohibited:
Finance Committee October 29, 2014 Page 77
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page37
1. Cash Advances 2. Non-Coalition or personal use 3. Personal vehicle gasoline, fuel, or oil. 4. Vehicle repairs 5. Telephone Charges other than calls to the Coalition office 6. Goods or Services restricted by the Purchasing policies 7. Travel expenses, except as authorized by Chapter entitled “Travel &
Mileage Reimbursement”
Responsibilities
The Chief Executive Officer will: Determine the Administrative Staff members that will hold Purchasing Cards.
The Accounting Department will:
1. Provide application forms to those staff members as determined by the Chief Executive Officer
2. Provide Purchasing Card procedure, including Request/Approval of Purchase Card (See Exhibit E) and oral instructions to those same staff members.
3. Obtain cards for the Card Holders. 4. Maintain Card Holder information, card numbers, and card spending
limits in Accounting Department files. 5. Match monthly statements with monthly back-up received from Card
Holders. 6. Process payments. 7. Record expenses in financial system. 8. File statements and back-up. 9. Cancel Cards as necessary. 10. Perform ongoing audit/review of procedures. 11. When an employee terminated employment, the Accounting
Department will: a. Collect the Purchasing Card which has been cut by the Card
Holder, b. Notify the issuing card company to cancel the card.
The Card Holders will:
1. Maintain the Coalition Purchasing Card in his or her personal possession at all times. Improper or unauthorized use of the Card may result in the Card Holder being held liable for expenditures, legal/disciplinary action being brought against the Card Holder, termination of Card-use and/or termination from the Coalition.
Finance Committee October 29, 2014 Page 78
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page38
2. Not to be used for personal purchases under any circumstances. Use of the Purchasing Card for personal reasons will result in immediate forfeiture of the card. Because the Coalition remains ultimately liable for the charges on each Purchasing Card, each employee with a Purchasing Card must sign a Payroll Deduction Authorization Form this states that you are personally responsible for any personal charges on the card and the Coalition may recoup any losses they incur through payroll deductions.
3. Authorize other staff members to use their card, only with proper
documentation.
4. Make purchases within Coalition Purchasing Card, Purchasing, and Travel Policy requirements including a prior approval via a Request/Approval for Purchasing Card (Exhibit E) or a Purchase Order Form (Exhibit N).
5. Retain all original documentation for purchases made with the Purchasing
Card. The original documentation with appropriate approvals must be disclosed to the Coalition on a monthly basis for matching to the monthly statement and entry into the financial system. Card Holders should keep copies of receipts and for audit purposes or for future questions that may arise.
6. All documentation associated with the payment of the Purchasing Card
transactions including the Request/Approval for Purchasing Card (Exhibit E) or a Purchase Order Form (Exhibit N) will be received and retained in the Accounts Payable office.
7. Prior to departure or termination of duties with the Coalition, the Card
Holder must: a. Submit documentation with appropriate approvals to the Coalition or
designee for all purchases made with the Purchasing Card since the last statement date.
b. Cut the Purchasing Card in half and turn it in to the Accounting Department.
c. These actions must occur before the Card Holder receives his/her final paycheck.
The Purchasing Card
1. The card will have embossed on the front the:
1. Administrative Staff member’s name. 2. Early Learning Coalition of Broward County, Inc. name. 3. Card number. 4. Expiration date.
Finance Committee October 29, 2014 Page 79
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page39
2. The Purchasing Card issuing company will not have: Individual Card Holder information (except name and work address) 3. Spending Limits
1. Chief Executive Officer: - As approved by the Coalition
a. Per transaction $ 5,000 b. Per day $10,000
2. Other Administrative Staff: - As approved by the Coalition
a. Per transaction $ 2,500 b. Per day $ 5,000
4. Other Considerations
1. Multiple Items The purchase may consist of multiple items, but may not exceed the per-
transaction Spending Limits indicated above. 2. Splitting Charges The charges may not be split into two or more transactions to avoid
Coalition Purchasing Policies. Splitting charges will be considered abuse of the Purchasing Card.
3. Back Orders – Not Permitted Over-the-counter items must be immediately available; and individual
telephone orders must be delivered in a single shipment within the 30 day billing cycle.
5. Lost or Stolen Purchasing Cards
1. Workday: If the Purchasing Card is lost, stolen, or misplaced during
normal working hours, Monday – Friday 8:00 A.M. to 5:00 P.M., the Card Holder is to immediately notify the Accounting Department, or designee.
2. If the Purchasing Card is lost, stolen, or misplaced during any other hour
or day the Purchasing Card Company must immediately be notified at the phone number listed on the monthly bill. Notification must be given to the Accounting Department or designee the next work day.
6. Termination of Card Holder
When an employee terminates employment, the Accounting Department shall:
Finance Committee October 29, 2014 Page 80
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page40
1. Collect the Purchasing Card. 2. Destroy the card. 3. Notify the issuing card company to cancel the card.
Making Purchases 1. Over-the Counter Purchases
a. When an over-the-counter purchase is made, the Card Holder must obtain the customer’s copy of the charge slip and all other documentation provided by the merchant.
b. If the face of these documents does not indicate the complete description
of the item(s) purchased, the Card Holder must indicate complete description(s) of the goods on the back of the documentation.
All documentation received, which is evidence of the transaction (e.g. sales receipt, charge slip, receiving slip, packing slip, etc.) must be retained by the Card Holder for monthly submission to the Accounting Department or designee for matching with the monthly statement and payment.
2. Telephone Orders
When placing a telephone order, the Card Holder must confirm that the vendor will charge the Purchasing Card when shipment is made so the receipt of the order may be certified on the monthly statement. The Card Holder must receive a delivery slip with the order and include this as back-up for the monthly submission to the Accounting Department or designee.
3. Sales and Use Taxes
1. The Early Learning Coalition of Broward County, Inc. is exempt from
paying State of Florida sales and use tax. This applies even with the use of the Purchasing Card. The Card Holder is to make sure this is clear to the vendor at the time of the purchase, whether it is an over-the-counter purchase, an internet order or a telephone order. Give the vendor the Coalition Tax ID number.
2. If the vendor charges sales tax, the Card Holder must contact the vendor
and obtain a credit equal to the amount of the sales tax. 3. Purchases made outside the State of Florida are subject to the laws of the
state where the purchase is made and may not be exempt from sales tax.
Finance Committee October 29, 2014 Page 81
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page41
Payment Processing
Responsibilities Card Holders will on a regular basis:
1. Complete required fields on Purchasing Card Monthly Transmittal form (See Exhibit F) or the MIP transaction entry.
2. Attach the documentation to the Monthly Transmittal form. 3. Print and SIGN their name. This signature is the Card Holder’s verification
that the goods purchased were necessary for completion of his/her tasks for the Coalition.
4. Failure to comply with these document requirements may result in the card being removed from the Card Holder.
5. Forward the completed Monthly Transmittal form to the Accounting Department or designee.
Accounting Department or Designee will:
1. Receive the monthly documentation. 2. Maintain documentation in an individual PENDING file for each Card
Holder. 3. Every 30 days, receive from Purchasing Card issuer, the Purchasing Card
statements and a request for payment for each Card Holder. 4. Match the monthly documentation totals to the monthly statement: 5. If they match, the bill will be processed for payment. 6. If they do not match, the Card Holder will be required to produce any
missing documentation, or provide a written explanation for variances. 7. Documentation for purchases not appearing on the monthly statement will
be retained in the pending folder to match against the next statement. 8. Failure to maintain proper documentation may result in the card being
removed from the Card Holder. 9. The statement detail, duplicate A/P Voucher, and all documentation for
that statement will be placed in a PAID folder for each Card Holder as an audit trail.
Disputes
1. Rationale for Disputes
a. Defective goods must be returned to the vendor for replacement or credit to the Purchasing Card. It is the Card Holder’s responsibility to follow-up with the vendor to obtain replacement goods or a credit to the Purchasing Card. If the vendor refuses to replace the goods or issue a credit to the Purchasing Card, the purchase is considered in dispute.
Finance Committee October 29, 2014 Page 82
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page42
Incomplete services, or services not meeting the requirements agreed upon at purchase, must be completed or corrected by the vendor. It is the Card Holder’s responsibility to follow-up with the vendor and request that the service is completed or the Purchasing Card is credited. If the vendor refuses to provide agreed upon services, the purchase is considered in dispute. b. Florida Sales and Use Tax. The Coalition is tax exempt. If the vendor
charges Florida Sales and Use Tax on a purchase, it is the Card Holders responsibility to get a credit to the Purchasing Card for the amount of the tax. If the Card Holder is not successful in getting the credit, the Card Holder must provide the Accounting Department or designee all documentation related to the goods or services purchased.
c. To protect the Coalition’s interest, disputes should be resolved within one
(1) month the Purchasing Card charge. d. The requirements of the Purchasing Card issuer MUST be followed to
protect the Card Holder’s rights in dispute.
2. Dispute Procedures
1. The Card Holder must contact the merchant about the transaction and supply the necessary information to begin the resolution process.
2. A Purchasing Card Dispute form (See Exhibit G) must be completed for
each purchase and/or service that is in dispute. 3. The Card Holder will complete the Purchasing Card Dispute form, as
follows: d. Explain the reason(s) for the dispute e. Explain the steps that the Card Holder has taken to resolve the
dispute. f. List the date(s) of contact, contact person(s), and phone numbers of
the vendor involved in the dispute. g. Include the Dispute form and back-up with the monthly-paperwork
submitted to the Accounting Department or Designee. h. Notify the Accounting Department or Designee if the dispute was
resolved after submission of the paper-work. 4. The Accounting Department or designee will contact the Purchasing Card
issuer regarding the dispute. 5. The Accounting Department or designee will notify the Purchasing Card
issuer when a Card Holder resolves the dispute subsequent to the notification of the Purchasing Card issuer.
Finance Committee October 29, 2014 Page 83
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page43
6. Using the information provided by the Accounting Department or designee, the Purchasing Card issuer will research the transaction.
7. After completion of the Purchasing Card issuer’s research, the Card Holder’s
account will be adjusted with the appropriate debit or credit. 8. Repeated disputes with the same vendor will result in the Coalition’s refusal
to use the vendor for further Coalition business.
Finance Committee October 29, 2014 Page 84
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page44
FIXED ASSETS Authority
Chapter 273, Florida Statute State-Owned Tangible Personal Property Florida Administrative Code Rule 69I-72.002 Tangible Personal Property Owned By Local Government FOEL Fiscal Guidance 240.02 Inventory Procedures and Disposal of Property and F.G. 05-046, Final Guidance on Prior Approval Procedures for Selected Costs and Administrative Requirements. Property Control
The Early Learning Coalition of Broward County, Inc. shall establish guidelines and procedures governing the accountability, control, transfer, and ultimate disposal of tangible personal property acquired by the Coalition. The scope of our responsibility insures that these procedures are applicable for all tangible property owned or controlled by the Coalition and apply to all personnel responsible for the accountability, control and safeguarding of this property. Definitions Cannibalized Property This is the combining useable parts, from two
or more assets that don’t operate properly, into one asset (usually computers) to get the benefit of a functioning asset.
Computer Software Computer software programs valued $1,000 or
more.
Custodian Custodian shall be primarily responsible for the supervision, control, and disposition of property in the agency’s custody but may delegate its use immediate control to a person under their supervision.
Depreciation Depreciation is an accounting method to
indicate the use or loss of value of property.
Disposal of Property When property has been fully depreciated and no longer of service to the Coalition, the property will be disposed according to FOEL Program Instructions for property purchased with state or federal grant funds.
Fixed Assets Property owned by the Coalition that meets the
Finance Committee October 29, 2014 Page 85
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page45
criteria of Tangible Property below. Property - Tangible Tangible, movable, personal property of a non
consumable, non expendable nature, with a value of $1,000 or more and which has a normal expected life of one year or more. This includes hardback-covered, bound books that are circulated to the general public (i.e. library books), the value of or cost is $25.00 or more and hardback-covered bound books (for office use), the value or cost of which is $250 or more.
Property - Non-Tangible This is property which has the characteristics
of tangible property but is less than $1,000 in value. These items include: VCRs, cameras, printers, software, monitors, etc. that by their nature are physically small in size and subject to conversion to personal use. Such property may be tagged and/or inventoried annually.
Books (excluding those described above in Property-Tangible), films, tapes, disk records, bound periodicals, and maps, although classified as personal property, (objects 5xx) are the responsibility of the person placing the order. This information is expensed when received and is not accounted for as a fixed asset.
Tagging Tagging or marking Coalition property will be
completed by staff. All tangible property and certain intangible property will be tagged for inventory purposes.
Transfer of Property The transfer of Tangible Property between
locations (within the Coalition office, from the Coalition office to other agencies (donations), from contracted agencies to Coalition office, etc.) will be marked and tracked.
Finance Committee October 29, 2014 Page 86
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page46
Responsibilities and Duties - General The Accounting Department (custodian) is responsible for:
1. Recording original purchases for both the Coalition and Contracted
Agencies 2. Tracking transfer of property internally and externally 3. Maintaining depreciation records 4. Providing records to auditors for inventory purposes. 5. Arranging and supervising all surplus disposals in compliance with state
regulations. 6. Preparing financial reports
1. Early Learning Coalition of Broward County
Coalition staff will be responsible in assisting with communications between Coalition and the contracted programs. When contracted programs purchase tangible property with Coalition funds, Coalition will track these assets in the fixed asset system until they are fully depreciated.
2. Protection of Coalition Property
1. The protection of Coalition property is incumbent upon all staff. To leave
an office where valuable property is located for any length of time without securing the area invites a theft. It is the responsibility of each department to safeguard its property.
2. Particular attention shall be paid to media equipment such as projectors,
cameras, and tape recorders, etc. which may be used outside of the Coalition office.
3. The Coalition issues special equipment to individual staff for use in their
job such as palm pilots and cellular phones. It is important that staff safeguard these assets.
4. Personnel leaving Coalition employment, who have been issued special
equipment, must return the equipment prior to the last day of employment. Failure to return property may subject their final paycheck to be withheld, pending a satisfactory explanation.
Finance Committee October 29, 2014 Page 87
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page47
General Policies and Procedures 1. Property Acquisitions
a. Bonus: Property, which is acquired as a bonus sales promotion (received at no charge), shall be recorded in the fixed asset system at its fair market value.
b. Donations: Property, which is acquired by donation, shall be recorded in
the fixed asset system at its fair market value. c. Cannibalized: Equipment that is assembled from parts or basic materials
from other computers or tangible property must be recorded in the fixed asset system. The finished equipment will be accounted for in the same manner as any other fixed asset. The equipment will be assigned a property number and will be listed in the fixed asset system.
2. Purchase
a. Coalition Operating funds are used for the purchase of tangible property for running the organization. The object on the purchase order identifies the fixed asset and the Accounting Department records all necessary information regarding the tangible property in the fixed asset system. In addition, the Accounting Department will also record all necessary information for certain non-tangible equipment that needs to be maintained in the fixed asset system.
b. Coalition Program funds are used by contracted agencies to purchase
tangible property for running their program. The contracted agency is required to maintain a fixed asset system and submit annual inventory reports to the Coalition.
Tangible property purchased by contracted agencies is intended for
Coalition funded programs. Should a program be discontinued, all tangible property purchased with Coalition funds is considered to be owned by the Coalition and will be returned for use by another funded program. The contracted agency must initiate return of such tangible property to the Contract Manager.
c. The initial purchase of accessory parts, additions to equipment, freight and
installation costs are also part of the equipment cost per Generally Accepted Accounting Principles (GAAP).
d. Replacement parts, repairs, and service contracts are items of expense
and are not included in the cost of the original equipment.
Finance Committee October 29, 2014 Page 88
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page48
e. Tangible property shall not be purchased on a Blanket Purchase Order. f. If assets are purchased with federal dollars, the Coalition will follow all
federal requirements in accordance with established federal guidelines. 4. Property Relocation/Transfer Property which is to be transferred to or from another agency for any reason
shall be reported to the Accounting Department so that the determination can be made as to the Coalition’s continued responsibility for the property and the fixed asset system can be updated with the information.
5. Property Trade-Ins
1. All requests for property trade-in must be approved by the Chief Executive Officer.
2. If approved, the Chief Executive Officer will evaluate and handle trade-in
with vendors. The Accounting Department will update financial system fixed asset system as necessary.
3. Coalition tags/markings must be removed from the property before it is
shipped to the vendor. 6. Cannibalization
1. The description of the property, including location and tag/mark number, its current condition, and the reasons for cannibalization shall be provided to the Accounting Department.
2. The Accounting Department will determine the value and life of the
cannibalized equipment, record information in the financial system fixed asset subcomponent and update records for all equipment used in the cannibalization process.
7. Replacement of Stolen Property
When property is missing, and theft is suspected:
1. A police report must be filed.
2. The Chief Executive Officer or officially designated staff and/or Board officer will report the loss to the insurance company with all information pertaining to the property, including the police report.
3. If the insurance covers the loss, a purchase order will be issued for
Finance Committee October 29, 2014 Page 89
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page49
replacement property when the insurance check is received from the insurance company.
4. If the Coalition must sustain the loss, either in part (the insurance check is
less than the cost of replacement property) or in full (insurance does accept the loss as theft), the property may only be replaced by going through all approval steps required in the Purchasing Policy and Procedures.
8. Personal Use of Coalition Property
1. Property may be used off site only if such use will further the mission and goals of the Coalition. Such removal shall be authorized by the custodian or officially designated staff and/or Board officer.
2. An Equipment Checkout Authorization form (See Exhibit H) will be
completed and kept on file with the office assistant. The periods of personal use should be limited, i.e. weekends, or working from home during short-term family illness, or limited personal physical handicaps.
3. If property is lost or stolen while in an employee’s home or car:
a. Notify the local police. b. The user of the property shall provide a copy of the police report to
their insurance company; and a memorandum of the theft and a copy of the police report to the Chief Executive Officer.
9. Meeting Use
Coalition employees using equipment on site or off-site for meetings are responsible for the safeguarding of the equipment and related accessories such as projectors, tape recorders, etc.; and for returning the equipment to its original Coalition location at the earliest opportunity after the meeting. The employee may be personally responsible for any lost items or equipment.
10. Surplus Property
1. Once it is determined by the custodian that tangible property is obsolete, inoperative, unserviceable, and that the continued use is uneconomical or inefficient, or serves no useful function to the organizational activity, the tangible property will be placed on the surplus list.
2. The custodian disposing the asset will need to complete a Surplus
Property form (See Exhibit I). This form states the reason the asset should be surplus and is approved by the Chief Executive Officer.
Finance Committee October 29, 2014 Page 90
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page50
3. The Coalition will follow established purchasing procedures to replace any
necessary equipment. The Chief Financial officer will make all necessary adjustments to the fixed asset system.
4. The Coalition shall request permission from the FOEL or other funding source to dispose of non-expendable personal property.
5. Once disposal permission is received, surplus property will be certified then disposed in according to FOEL instruction which includes indicating the value and condition of the property.
6. Surplus property will be placed on a list to be donated to various not-for-
profit or community organizations. Periodically as equipment is identified, the Coalition will send out a notice to Service Providers briefly describing the surplus equipment. If interested, they can complete an application and it will be awarded based on need and on a first-come-first serve basis.
7. All tangible property shall have property tag numbers removed prior to
final disposition, as well as removed from the fixed asset system.
11. Depreciation and Financial Reporting
1. The Accounting Department will prepare all fixed asset schedules related to financial reporting. Depreciation method will be straight line based on the following timelines: a. Computers, Software and related equipment 3 years b. Furniture and office equipment 5 years
12. Recording actual depreciation expense will be on a monthly basis and
reflected in the financial statements in accordance with GAAP.
Note: The Coalition is not permitted to purchase, construct or make permanent improvements of any building or facility. Therefore, building and leasehold improvements are not applicable for discussion in this manual.
13. Property Inventories
1. Scheduled yearly inventories of all Coalition property shall be conducted during the year-end closing routine by Coalition staff. A list from the Accounting Department’s fixed asset system containing tag number, description, assigned location, purchase order number, cost, date acquired and acquired cost will be provided.
2. Unscheduled inventory verifications may be made by State or external
Auditors. The inventory may be of the total listing or a spot check of a
Finance Committee October 29, 2014 Page 91
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page51
certain category of equipment, such as computers, etc.
Finance Committee October 29, 2014 Page 92
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page52
PAYROLL Payroll and Related Costs It is the policy of the Coalition to maintain accurate records of time worked by each employee and ensure proper compensation is distributed and processing payroll by utilizing sound payroll practices to comply with any federal and state regulatory wage and hour laws. 1. The Coalition’s payroll is processed with the approval of the Chief Financial
Officer with a payroll company Automatic Data Processing (ADP) on a bi-weekly basis. Payroll is input into the ADP system by the Accountant and is approved by the Chief Financial Officer. ADP provides the Coalition reports for processed payroll. ADP also generates quarterly payroll reports and pays payroll taxes on behalf of the Coalition. The payroll reports detail the date of check, check number, payroll ending date, gross wages, FICA and other withholdings and payroll deductions, and net pay, and employer taxes.
2. The Accountant is responsible for recording the payroll in the accounting
software (MIP) charging payroll directly related to programs accordingly and allocating non-program payroll in accordance with the Cost Allocation Plan established by the Coalition.
3. The Accountant is responsible for ensuring that all insurance premiums on
paid in a timely manner. 4. The Accountant reconciles salary expenses with the payroll tax return Form
941 and Form UCT-6 quarterly. In additional the Accountant is responsible for providing the Form W-2’s and maintains the correct direct deposit information for employees. The Accountant also provides the Form 1099’s to independent contractors no later than January 30 of the subsequent calendar year.
Time Sheet/Payroll Activity Report (PAR)
1. The time sheet/ Payroll Activity Report (PAR) template is an EXCEL file that
is saved on the Coalition server in a folder identified by the Accountant. The time sheet template is given to each employee. The employee should save time sheet after they have entered their personal information including employee name and date on the top portion of the time sheet. The time sheet has tabs at the bottom of the file, representing each of the twenty-six pay periods for the fiscal year.
Finance Committee October 29, 2014 Page 93
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page53
2. The top portion of the time sheet, under “Reg Hours”, the employee records the total regular hours worked for each day. The maximum number hours are 7.5 hours per day for salaried/exempt staff.
Non-exempt/hourly employees record actual hours worked for each day of the pay period. Time Sheet Leave codes are used to indicate the exceptions to the regular work day. This is also referred to as “leave time”. Time Sheet Leave codes include:
“S” – Sick leave “H” - Holiday “P” – Personal leave “V” – Vacation “O” – Other “OT” - Overtime
3. The bottom portion of the time sheet must be completed to reflect the actual
hours worked by funding source. If the employee worked 4 hours for the school readiness (SR) funding source, type 4 hours in the appropriate column (Columns E/F/G), the same applies to voluntary pre-kindergarten (VPK) (Column H), for cost pool and other grants type in the correct hours (Columns I and J respectively). If hours are not directly charged to a particular funding source utilize the cost pool (Column I). Examples of the task could but not limited to answering phones, board and committee meetings and preparation.
Funding Code Options
a. Column D thru J - SR hours by OCA b. Column H - VPK Hours c. Column I – Cost Pool d. Column J – Other grants
Non-Exempt/Hourly Employees:
The total hours on the top section must match the total hours in the bottom section under total hours.
Exempt/Salaried Employees:
For exempt employees type in the total hours worked by funding source regardless of the regular 7.5 work days.
Finance Committee October 29, 2014 Page 94
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page54
4. The hours and percentages are calculated automatically. 5. Time sheets should be signed by the employee and forwarded to their
supervisor for approval and signature. 6. Supervisors should review for accuracy to ensure the employee has
completed the time sheet according to the procedure. Supervisors should also review and approve the hours based on their knowledge of work performed and tasks completed during the time period. Questions or concerns regarding the time sheet should be addressed with the employee prior to the approval.
7. After the time sheet has been signed and dated by the employee and
supervisor, the supervisor should forward to the finance department for payroll processing.
8. The time sheets are to be completed every two weeks and are due on Friday
to the finance department by 10:00 a.m. Payroll and Benefit Cost Allocation Process
1. Completed time sheets/Payroll Activity Reports (PAR) are utilized to identify
labor cost according to the FOEL approved cost allocation plan. 2. The actual percentages from the time sheets are entered into the payroll
spreadsheet by the Accountant. The payroll spreadsheet is an EXCEL spreadsheet that is completed every payroll period to facilitate the input into the general ledger (GL). Every employee of the Coalition is entered on the spreadsheet based on their actual time worked for the program activity and/or funding source. In the payroll spreadsheet EXCEL file there are tabs at the bottom of the file. Each tab represents a different pay period (there are twenty-six tabs).
a. In the payroll spreadsheet there is a tab called the “Allocation Split” where
the monthly agency funding allocation is tracked as per the Cost Allocation Plan. Current month cost allocation is based on program staff’s actual hours worked on the specific program during the prior month. The Accountant communicates the monthly cost allocation based on this calculated results to the to the finance staff for accounts payable preparation on a monthly basis.
b. Where other contracts and grants with labor cost are incurred, payroll
expenses are charged directly to the grant according to the contractual requirements.
3. The information on the payroll spreadsheet is then is input into the accounting
Finance Committee October 29, 2014 Page 95
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page55
system GL to complete the payroll journal entry. 4. Employee benefit expenses are charged based on a cost allocation plan
through the payables process. Employee Loans It is the policy of the Coalition to make no loans to employees or board members. The Coalition will not endorse or guarantee any loans on an employee’s or board member’s behalf. Mandatory Vacation Any employee in a position of fiscal trust or as determined by the location is required to take an annual vacation which is at least five (5) consecutive work days in duration when possible. Persons in authority to grant vacations shall make all efforts to grant no less than five (5) consecutive days. For purposes of this document a position of fiscal trust is defined as a position or assignment which requires an employee to receipt or disburse monies; reconcile or journalize accounts, process payroll transactions or purchase goods or services on behalf of the Coalition.
Finance Committee October 29, 2014 Page 96
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page56
AWARDS AND GRANTS TO PROGRAMS AND SERVICES
(“Awards”) AND
PURCHASES OF PRODUCTS AND SERVICES (“Purchases”)
The Early Learning Coalition of Broward County, Inc. is committed to procurement of goods and services following the guidelines of the Florida Statues, Chapters 215.971, 287.057, and 287.058 which promotes fair and open competition; that such competition reduces the appearance and opportunity for favoritism and inspires public confidence that contracts are awarded equitably and economically; and that documentation of the acts taken and effective monitoring mechanisms are important means of curbing any improprieties and establishing public confidence in the process by which commodities and contractual services are procured. This overview will highlight the procurement process of the Early Learning Coalition of Broward County, Inc. for Awards and for Purchases. These processes both involve the expense and disbursement of Coalition funds. The processes have been distinguished as follows: Awards Awards involve awards and grants of proceeds to various programs or
services serving the interests of children in Broward County in direct fulfillment of the objectives and goals established by the Coalition.
The selection and funding process for Awards will involve criteria, thresholds,
measurements and other factors in efforts to gauge the impact of such Awards and the resulting programs and services upon the interests of children in Broward County.
Purchases Purchases involve direct purchases of products and services by the Coalition
useful or necessary in the operation, administration and management of the Coalition, its staff, its offices and its activities.
The selection and funding process for Purchases will involve traditional
competitive and qualitative factors, criteria, thresholds and other factors intended to obtain the best possible products and services on the most competitive prices, terms and conditions.
Finance Committee October 29, 2014 Page 97
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page57
The following sections give detailed steps for accomplishing these requirements. It is the intent of the Coalition that all Awards and Purchases will involve competitive processes, subject to certain limited exceptions as outlined below:
Awards/Grants to Programs or Services Competitive award processes apply to all awards or grants to any program or service, except as follows:
Emergency Actions: Awards by the Chief Executive Officer in the event of an immediate danger to public health, safety or welfare or in the event of substantial loss to the Coalition are exempt from the competitive award processes; provided the circumstances of such emergency and the limited selection processes employed are documented to the Coalition at the next meeting.
Extensions/Renewals: Extensions/renewals approved by the
Coalition within the terms of an original award contract may be exempt from the competitive award processes.
Revenue Maximization: Opportunities to draw down matching
federal, state, or foundation dollars may be exempt from the competitive award process at the Coalition’s discretion.
Government Contracts: Purchases pursuant to, and on the same
prices, terms and conditions of, existing government contracts are exempt from the competitive purchase processes.
Government Services: Awards to other government agencies
approved by the Coalition may be exempt from the competitive award processes.
Single Source: Awards for programs or services available from only
one source are exempt from the competitive award processes; provided, the circumstances and the limited selection process employed are documented with the required documentation and approved by the Coalition directly.
Grant Funded Programs: Awards to partnering agencies in external
Grant funded initiatives, providing they meet specifications of the external Grantor and are approved by the Coalition.
Other Exclusions: Any other exclusion as authorized by Florida Law.
Finance Committee October 29, 2014 Page 98
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page58
REQUESTS OR INVITATIONS
(RFP, RFQ, RLI, ITN, ITB)
1. Objectives: The Coalition will establish overall objectives and goals, tasking staff with the responsibility to prepare the appropriate Bid Solicitations designed to solicit responses in pursuit of such objectives and goals.
2. Preparation: Staff will prepare a draft Bid Solicitation for submittal to the
Coalition. The Coalition will review and approve the Bid Solicitation and designate an Evaluation Committee comprised of Coalition members, designees of members, outside experts or staff as the Coalition may determine.
3. Solicitation: Staff will publish and advertise Bid Solicitations and administer
the solicitation process. Staff will open and review Bid Solicitations for “fatal flaws” and responsiveness. Responses not rejected for “fatal flaws” will be forwarded to the Evaluation Committee with the staff analysis.
4. Evaluation Committee: The Evaluation Committee will review the written
Responses. Such review may encompass preliminary rankings, short lists, interviews, written questions, oral presentations and the like. The Evaluation Committee will rank the Responses based upon the criteria set forth in the Bid Solicitation and submit such rankings and its findings to the Coalition.
5. Coalition Approval: The Coalition will review the recommendations of the
Evaluation Committee, make such changes and determinations as it deems advisable and select such Response(s) as it deems in the best interest of the children of Broward County.
6. Appeals: The Coalition will establish appeal procedures in accordance with
applicable laws. Awards and grants to programs and services will not be subject to appeal on any grounds other than procedural.
7. Awards: Staff will negotiate contracts based on the approved awards using
the Core Contract shell approved by the Coalition and subject to legal review of the General Counsel. Contracts will be executed (signed) by the Coalition Chair, the General Counsel and the Chief Executive Officer.
The competitive processes will involve alternatives based upon the dollar amounts involved and the competition, administration, time and expense warranted, in such instances. Regardless of the competitive process selected, the Procurement Standards on pages 59 must be adhered to. Request for proposal, Quote, or Letter of Interest (RFP, RFQ, RLI)
Finance Committee October 29, 2014 Page 99
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page59
Invitation to Negotiate, Invitation to Bid (ITN, ITB) Awards or Grants to Programs or Services Competitive award processes apply to all awards or grants to any program or service as follows: AG-1 Time Limited Specific Purpose Grants $-0– to $10,000 The Coalition may from time to time set aside funds for “time limited specific grants”. These funds may be disbursed based upon such criteria as the Coalition may determine; provided, the aggregate amount disbursed to any one recipient during any fiscal year of the Coalition shall not exceed $10,000 without the Board’s approval. AG-2 Competitive Grants: RFP, RFQ, RLI, ITN, ITB, unless waived or exempted by the Board. Purchases of Products or Services Competitive purchase processes apply to all purchases of any product or service as follows: Solicit bids from State & County vendors whenever possible. PS-1 $-0– to $2,500 No bid, quote or solicitation required for submittal. Board has empowered Chief Executive Officer to spend up to $2,500 for products or services if under approved budget, without prior approval. Two signatures are required on checks; one of those must be a Board Member. PS-3 $2,501 to $15,000 Two written quotes required for submittal and approval of Board or Finance Committee, if specifically empowered by the Board. PS-4 $15,001 to $25,000 Three written quotes required for submittal and approval of Board or Finance Committee, if specifically empowered by the Board, or RFP, RFQ, RLI, ITN or ITB. Procurement of any goods or services valued in excess of $25,000 requires the Coalition to initiate and conduct a formal proposal process (RFP, ITN or ITB), unless specifically included in the exceptions above. The format of the proposal process is reviewed and approved by the Coalition’s attorney to ensure the legal compliance of the process.
Finance Committee October 29, 2014 Page 100
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page60
PROCUREMENT STANDARDS Code of Conduct No staff will participate in the selection, award, or administration of a contract if a real or apparent conflict of interest would be involved. Such a conflict would arise when the staff, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in the firm selected for an award. The staff will neither solicit or accept gratuities, favors, or anything of monetary value form the contractors, or parties to sub-agreements. The standards of conduct will provide for disciplinary actions in the case of violations of such standards by staff. Competition All procurement transactions will be conducted in a manner to provide, to the maximum extent practical, open and free competition. The Coalition will be alert to organizational conflicts of interest as well as noncompetitive practices among contractors that may restrict or eliminate competition. Awards will be made to the bidder whose bid is responsive to the solicitation and is most advantageous to the recipient, price, quality and other factors considered. Solicitations should clearly set forth all requirements that the bidder is required to fulfill. Any and all bids or offers may be rejected when it is in the Coalition’s interest to do so. Procurement Procedures The staff involved in procurements for the Coalition should: 1. Avoid purchasing unnecessary items. 2. Where appropriate, prepare an analysis of lease and purchase
alternatives to determine which would be the most economical and practical for procurement.
3. Prepare solicitation for goods and services that include all the following:
a. A clear and accurate description of the technical requirements for the material, product or service to be procured. In competitive procurements, such a description should not contain features which unduly restrict competition.
b. Requirements which the bidder must fulfill and all other factors to be used in evaluating bids or proposals.
c. A description, whenever practicable, of technical requirements in terms
Finance Committee October 29, 2014 Page 101
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page61
of functions to be performed or performance required, including the range of acceptable characteristics or minimum acceptable standards.
d. The specific features of "brand name or equal" descriptions that bidders are required to meet when such items are included in the solicitation.
e. The acceptance, to the extent practicable and economically feasible, of products and services dimensioned in the metric system of measurement.
f. Preference, to the extent practicable and economically feasible, for products and services that conserve natural resources and protect the environment and are energy efficient.
g. Refer to OEL Financial Guidance FG240.05 to determine whether the purchase requires the appropriate prior approval.
4. Contracts for commodities or contractual services may be renewed for a
period that may not exceed 3 years or the term of the original contract, whichever period is longer except for those commodities noted as exception in F.S. 287.057. Renewal of a contract for commodities or contractual services shall be in writing and shall be subject to the same terms and conditions set forth in the initial contract. If the commodity or contractual service is purchased as a result of the solicitation of bids, proposals, or replies, the price of the commodity or contractual service to be renewed shall be specified in the bid, proposal, or reply. A renewal contract may not include any compensation for costs associated with the renewal. Renewals shall be contingent upon satisfactory performance evaluations by the agency and subject to the availability of funds.
5. Extension of a contract for contractual services shall be in writing for a
period not to exceed 6 months and shall be subject to the same terms and conditions set forth in the initial contract. There shall be only one extension of a contract unless the failure to meet the criteria set forth in the contract for completion of the contract is due to events beyond the control of the contractor.
Positive efforts will be made by the Coalition to utilize small businesses, minority-owned firms, and women's business enterprises, whenever possible. Recipients of Federal awards will take all of the following steps to further this goal: 1. Ensure that small businesses, minority-owned firms, and women's
business enterprises are used to the fullest extent practicable. 2. Make information on forthcoming opportunities available and arrange time
frames for purchases and contracts to encourage and facilitate participation by small businesses, minority-owned firms, and women's business enterprises.
3. Consider in the contract process whether firms competing for larger
Finance Committee October 29, 2014 Page 102
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page62
contracts intend to subcontract with small businesses, minority-owned firms, and women's business enterprises.
4. Encourage contracting with consortiums of small businesses, minority-
owned firms and women's business enterprises when a contract is too large for one of these firms to handle individually.
5. Use the services and assistance, as appropriate, of such organizations as
the Small Business Administration and the Department of Commerce's Minority Business Development Agency in the solicitation and utilization of small businesses, minority- owned firms and women's business enterprises.
The type of agreement used (e.g., fixed price contracts, cost reimbursable contracts, purchase orders, and incentive contracts) will be determined by the Coalition but will be appropriate for the particular procurement and for promoting the best interest of the program or project involved. The "cost-plus-a-percentage-of-cost" methods of contracting should not be used. Contracts will be made only with responsible contractors who possess the potential ability to perform successfully under the terms and conditions of the proposed procurement. Consideration will be given to such matters as contractor integrity, record of past performance, financial and technical resources or accessibility to other necessary resources. No contract will be made to parties listed on the General Services Administration's List of Parties Excluded from Federal Procurement or Non-procurement Programs in accordance with E.O.s 12549 and 12689, "Debarment and Suspension." This list contains the names of parties debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory or regulatory authority other than E.O. 12549. Contractors with awards that exceed the small purchase threshold will provide the required certification regarding its exclusion status and that of its principal employees. Cost and Price Analysis Some form of cost or price analysis will be made and documented in the procurement files in connection with every procurement action. Price analysis may be accomplished in various ways, including the comparison of price quotations submitted, market prices and similar indicia, together with discounts. Cost analysis is the review and evaluation of each element of cost to determine reasonableness, allocability and allowability. Procurement Records Procurement records and files for purchases in excess of the small purchase threshold will include the following at a minimum: (a) basis for contractor
Finance Committee October 29, 2014 Page 103
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page63
selection, (b) justification for lack of competition when competitive bids or offers are not obtained, and (c) basis for award cost or price. Contract Administration
A system for contract administration will be maintained to ensure contractor conformance with the terms, conditions and specifications of the contract and to ensure adequate and timely follow up of all purchases. Recipients will evaluate contractor performance and document, as appropriate, whether contractors have met the terms, conditions and specifications of the contract. Refer to Contract Oversight Policy section of the Coalition Fiscal Policies & Procedures. Contract Provisions
The Coalition will include, in addition to provisions to define a sound and complete agreement, the following provisions in all contracts. For the complete description of these provisions refer to OMB A-110. 1. Technical requirements and all other requirements the contractor must fulfill. 2. Compliance with applicable State of Florida laws, including those governing
the Early Learning Program 3. Federal laws and regulations, as applicable:
CCDF and TANF Unauthorized Aliens Clean Air and Water Act (contract in excess $100,000) Lobbying Debarment and Suspension (contract expected to exceed $25,000) Drug-Free Workplace Equal Employment Opportunity (all contracts) Pro-Children Act Non-Discrimination and Harassment-Free Workplace Energy Policy and Conservation Act Construction or Renovation of Facilities Using Program Funds
4. Requirement to fully cooperate with the Coalition’s performance audits and
financial audits, including access to all records pertinent to the contract. 5. Periodic financial reporting and monthly financial invoicing requirements by
the contractor as well as method of payment to the contractor. 6. Provisions for maintenance of records and access of records for audits and
monitoring procedures as well as compliance with Florida Statutes confidentiality provisions. Financial records, supporting documents, statistical
Finance Committee October 29, 2014 Page 104
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page64
records, and all other records pertinent to an award will be retained for a period of at least three years from the date of submission of the final expenditure.
7. Records for real property and equipment acquired with Federal funds, if
applicable, will be retained for 3 years after final disposition. 8. Termination whether without cause, lack of funds, or breach of contract. 9. Closeout procedures including submission of all required reports and
collection of amounts due from sub-contractor, if any.
Finance Committee October 29, 2014 Page 105
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page65
CONTRACT OVERSIGHT Policy Statement The Early Care and Education (ECE) Department of the Early Learning Coalition of Broward County, Inc. (Coalition) is committed to ensuring the compliance of state-funded early care and education services as required by Federal Regulations, Florida Statute, state rule and/or FOEL policy. Contract Commencement The Chief Program Officer or designee will be responsible for ensuring that all contracts are fully executed by authorized Coalition personnel and board members and authorized contractor personnel prior to allowing the contractor to begin work. Monitoring Policy Contract provisions include compliance with Federal, State and Local regulations since contract funds are derived from Federal, State, and Local regulations. The Coalition is a sub-recipient of state and federal funds from the Florida Office of Early Learning. Accordingly, the Coalition is required to comply with OMB circulars in governing its contracts with its Service Providers. Periodic reviews after the commencement of the contracts determine the administrative, fiscal and programmatic compliance of the provider. The periodic reviews which are a part of the annual monitoring plan will consists of the monthly examination of the sub-recipient invoices, the desk-audits completed monthly and quarterly using the Contract Obligations Checklist, semiannual on-site fiscal reviews, eligibility and payment client file reviews, (effective July 1, 2009) and annual on-site visits to the service provider. The Coalition will provide any additional monitoring procedures it deems necessary.
The Chief Financial Officer (CFO) is responsible for: 1. Monitoring sub-contractors budgets. 2. Assure service provider monthly reimbursements are submitted
appropriately and in a timely manner. 3. Determining whether grant funded assets remain secured. 4. Monitor the appropriateness of allowable cost. 5. Determine the timeliness of financial reporting and billing. 6. Determine scheduling of quarterly desk-reviews, provider payment
reviews and fiscal monitoring. 7. Communicate all Federal, State and local requirements related to fiscal
matters including audit requirements.
Finance Committee October 29, 2014 Page 106
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page66
8. Assure receipt and review of service providers annual single audit reports. 9. Review service provider internal controls.
The Chief Program Officer (CPO) is responsible for: 1. Maintaining a system to track submission of required reporting, such as
financial reports, performance reports, audit reports, onsite monitoring reviews, and timely resolution of audit findings.
2. Monitoring service provider’s budgets. 3. Establishing a system of supervisory reviews will be performed to
determine the adequacy of service provider monitoring. 4. Communicating the Federal, State and Local requirements to service
provider. 5. Establishing the responsibilities for monitoring service provider. 6. Establishing the procedures for resolving findings of service provider’s
noncompliance or weaknesses of internal controls.
Federal Requirements Specific statutes and authoritative guidelines include: the Single Audit Act, OMB Circular A-133, OMB Circular A-122, OMB Circular A-102 OMB Circular A-87, OMB Circular A-110, as applicable. OMB A-133 requires that the Coalition determine if the service provider is a subrecipient or a vendor. A sub-recipient is subject to the requirements of A-133; a vendor is not. Refer to the section “Subrecipient and Vendor Determination” below. The Coalition is required to monitor a subrecipient for compliance with laws, regulations and provisions of the contract as well as compliance with audit requirements of applicable OMB-Circulars. The Coalition is also required to determine that federal funds were used in accordance with applicable laws and regulations, corrective action of any noncompliance is taken on a timely basis, and consider whether the contractor audits result in adjustment to Coalition records. Audit Requirements Audit requirements to comply with Federal, State and FOEL policy will be included in the contracts. Contractor audits must be submitted to the Coalition within 120 days from the contractor’s fiscal year end. All contractors receiving federal funds must comply with OMB Circular A-133 as applicable. If a subrecipient is required to obtain an audit in accordance with OMB Circular A-133 but did not do so, the Coalition will follow up with the subrecipient until the audit is completed and take appropriate action such as withholding further funding until the subrecipient meets the audit requirement.
Finance Committee October 29, 2014 Page 107
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page67
Subrecipient Audit (Monitoring) Review and Resolution Determine whether the sub-recipient has met the audit requirements of the applicable OMB Circular. Determine through review of the audit report whether the subrecipient spent funds in accordance with applicable laws and regulations. Determine whether sub-recipient audits necessitate adjustment of the Department's own financial records. Determination must be made as to whether the audit report should be given special monitoring attention depends on judgments made by staff (which should include the financial viability test of assets and liabilities). Factors which would normally indicate that an audit should be given special attention include: Evidence of fraud or potential fraud. Material non-compliance (material as indicated by the auditor). Material internal control weaknesses (material as indicated by the auditor). Doubts about the agency's ability to continue as a going concern. Other auditor comments or conditions, such as the return of funds as a
determined in the resolution process, reportable conditions, numerous findings of noncompliance,
Uncorrected on-going problems. Issue a management decision on audit findings within six months after receipt of the subrecipients audit and ensure that the subrecipient takes appropriate and timely corrective when there are instances of noncompliance with laws and regulations indicated in the report. Resolution and corrective action of audit comments should be completed within thirty (30) days of report acceptance, resolution shall be completed within a time period necessary to allow finalization within 180 days of the receipt of an acceptable audit. The elements of a corrective action plan are: What will be done to correct the problem Who is responsible for implementation of the plan When the plan will be implemented ELC will maintain a system for tracking the progress of the resolution process, including such information as who is responsible for resolution, the date the
Finance Committee October 29, 2014 Page 108
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page68
resolution materials were sent, and whether the appropriate management review and approval has been received When a resolution is complete documentation shall be maintained in accordance to all regulatory requirements. Determine whether sub-recipient audits necessitate adjustment of the Department's own financial records. Require each sub-recipient to permit independent auditors to have access to the records and financial statements as necessary to comply with Circular A-128. Failure to comply may result in payment withholding and/or contract termination. Any requirement for collection of any disputed amount will be referred to an ELC chosen collection agency. Cost associated with procuring a collection agency will be the sole responsibility of the subrecipient. The subrecipient has the rights to a hearing. A hearing could include but not be limited to:
Allowing both parties the right to present either written or oral testimony, call and question witnesses in support of their position, present oral and written arguments,
Examine records and documents relevant to the issues, and be represented.
Questioning of witnesses in support of their position, present oral and written arguments,
Examine records and documents relevant to the issues, and be represented. The hearing shall be recorded mechanically or by court reporter.
The subrecipient has 30 calendar days after the Final Determination is issued to submit a written request for a hearing. At least 10 calendar days before the hearing, written notice of the date and site of the hearing must be provided to the subrecipient.
The 10-day notice may be shortened with written consent of both parties. The subrecipient may withdraw the hearing request; the withdrawal
request must be submitted in writing. A decision must be issued by the hearing officer within 60 days of the
request filing date.
Finance Committee October 29, 2014 Page 109
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page69
Contractor Fiscal Year Differing from Contract Fiscal Year The Coalition’s contract fiscal year runs from July 1 through June 30. For reporting purposes, any fiscal year other than a June 30 fiscal year end will relate back to the previous June 30. In other words, a September 30, 2008 fiscal year end will fulfill requirements in relation to the Coalition's June 30, 2008 fiscal year. A May 31, 2009 fiscal year end will relate back Coalition’s June 30, 2008 fiscal year end, etc. Federal Single Audit Requirements Under OMB A-133, the Coalition is required to determine whether a subcontractor that is non-profit organization receiving federal funds is a sub-recipient or vendor. Sub-recipient and Vendor Determination A sub-recipient is subject to the requirements of A-133; a vendor is not. The definitions are summarized as follows:
An organization is a subrecipient if it meets any of the following criteria:
1. Determines who is eligible to receive what Federal financial assistance; 2. Has its performance measured against whether the objectives of the Federal
program are met; 3. Has responsibility for programmatic decision making; 4. Has responsibility for adherence to applicable Federal program compliance
requirements; and 5. Uses the Federal funds to carry out a program of the organization as
compared to providing goods or services for a program of the pass-through entity.
An organization is a vendor if it meets all of the following criteria: 1. Provides the goods and services within normal business operations; 2. Provides similar goods or services to many different purchasers; 3. Operates in a competitive environment; 4. Provides goods or services that are ancillary to the operation of the Federal
program; and 5. Is not subject to compliance requirements of the Federal program. 6. Refer to Guidance: Sub-recipient and Vendor Determinations issued by FOEL
in Exhibit J of this manual.
Finance Committee October 29, 2014 Page 110
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page70
Use of Judgment In Making Determination
There may be unusual circumstances or exceptions to the listed characteristics. In making the determination of whether a subrecipient or vendor relationship exists, the substance of the relationship is more important than the form of the agreement. It is not expected that all of the characteristics will be present and judgment should be used in determining whether an entity is a subrecipient or vendor. For-profit Subrecipient Since this part does not apply to for-profit subrecipients, the pass-through entity is responsible for establishing requirements, as necessary, to ensure compliance by for-profit subrecipients. The contract with the for-profit subrecipient should describe applicable compliance requirements and the for-profit subrecipient's compliance responsibility. Methods to ensure compliance for Federal awards made to for-profit subrecipients may include pre-award audits, monitoring during the contract, and post-award audits. Compliance Responsibility For Vendors In most cases, the Coalition’s compliance responsibility for vendors is only to ensure that the procurement, receipt, and payment for goods and services comply with laws, regulations, and the provisions of contracts or grant agreements. Program compliance requirements normally do not pass through to vendors. However, the Coalition is responsible for ensuring compliance for vendor transactions which are structured such that the vendor is responsible for program compliance or the vendor's records must be reviewed to determine program compliance. Also, when these vendor transactions relate to a major program, the scope of the audit shall include determining whether these transactions are in compliance with laws, regulations, and the provisions of contracts or grant agreements. Determination of Federal Funds Awarded The Coalition will provide each contractor with information concerning the amount of Federal funds and CFDA# for each service element as soon as this information is available. It is the contractor's responsibility to forward this information to their auditors for determination of federal audit requirements. Responsibility for Determining Federal Audit Requirements It is the contractor's ultimate responsibility for determining Federal audit requirements. The Coalition can only provide information about federal dollars
Finance Committee October 29, 2014 Page 111
Fiscal Policies & Procedures
EarlyLearningCoalitionofBrowardCounty,Inc. Page71
contained in its subcontracts. However, because organizations may receive federal dollars from sources other than the Coalition, they should not depend solely on Coalition notification in determining federal compliance audit requirements. State Audit Requirements The Florida Single Audit Act is applicable to any nonstate entity. The audit requirements parallel the federal audit requirements of the Single Audit Act. The Florida Single Audit Act is codified in Section 215.97, Florida Statutes.
Finance Committee October 29, 2014 Page 112