joplin Area Chamber Of Commerce · Table of Contents Financial Procedures and Policies Banking,...

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Financial Procedures and Policies

Reviewed Annually by the Finance CommitteeCreated October 2003

Revised January 2005Revised May2005

Revised February 2006Revised July2006

Revised October 2006Revised July 2007

JOPLIN AREACHAMBER OF COMMERCE

Table of ContentsFinancial Procedures and Policies

Banking, Investing, Deposits and Special Funds 3

Bank Statements and Reconciliation 4

Budget Development 7

Cash Receipts, Receiving and Processing 10

Cash Receipts at Events 14

CPA Continuation 15

Critical File Security—

CCAssist 16

File Magic 19

Mas9O 22

Disbursements 24

Employee Advances 28

Expense Report / Reimbursement 31

Internal Company Transactions 32

Petty Cash 33

Payroll 36

Team Based Financial Management 37

Joplln Area Chamber of Commerce Financial Procedures and Poilcies —Last reviewed August 1, 2007

Policy for Banking, Investing, Deposits & Special Funds

Approved by: Finance CommitteeLast revised: July 1, 2007Purpose: Provide clear policy for authority to make changes to the banking, investing, deposits and settingup of special funds.

“The Treasurer is responsible for the safeguarding of all funds received by the Chamberand for their proper disbursement. Such funds shall be kept on deposit in financialinstitutions or invested in a manner approved by the Board of Directors.” --as noted in theChamber By-Laws. The Treasurer is the Chairman of the Finance Committee.

Banking: The Finance Committee determines the number and types of bank accounts.Staff may make recommendations. Banking should be simple, efficient and secure.Changes require Board of Directors resolution.

Presently the Chamber, Foundation, Joseph Newman Innovation Center andEconomic Development use one consolidated checking account with separatenumbering schemes and colors that clearly identify the various entities. The IRShas approved this consolidated method of checking. This account sweeps into aninvestment account daily.

Investments: The Finance Committee determines the number and types of investmentsfor excess funds. Investments should be simple, efficient and secure. Changes requireBoard of Directors resolution.

• Presently the Chamber, Foundation, Joseph Newman Innovation Center andEconomic Development investments use one consolidated investment account thatworks in partnership with the sweep checking account. A daily sweep keeps allexcess funds in investment while keeping cash reserves liquid.

Banking Signatures:• Checking: All checks require two signatures

o Preferred method:• Signature I is by any member of the Finance Committee• Signature 2 is by the President or Operations Director.

o Alternate method: This will normally only happen in emergency or duringperiods of extended travel.

• Any two persons from the Finance Committee• or the President and Operations Director

See Procedures for Disbursements for further details on obtaining signatures.

Deposits: See the Procedures for Receiving and Processing Cash Receipts.

Special Funds: Special funds may be set up from time to time upon resolution of theBoard of Directors.

Joplin Area Chamber of Commerce Financial Procedures and Policies —Last reviewed August 1, 2007

Procedures for Bank Statements and Reconciliation

Approved by: Finance CommitteeLast revised: October 17, 2006Purpose: Provide for control on cash disbursements, receipts and reconciliation of statements.

The bank will mail the bank statements or other banking notices and documents to theChamber.

Closing date for statements shall be end of month.

1. The Designated Administrative Assistant• Forward the bank statements, and other banking notices and documents to the

Finance Director unopened for security and privacy reasons.

2. The Staff Accountant• may begin working on a preliminary balance of the account using a copy of the

bank account detail printed out from the online banking program by the FinanceDirector.

3. The Finance Director• upon arrival of the statements will review the cancelled checks and bank

statement• check out and/or investigate any questionable items• any item that can’t be properly resolved shall be reported to the President and if

appropriate to the Treasurer and CPA as well• give a copy of the bank statement to the Staff Accountant• forward the original bank statement, cancelled checks and other contents to the

Newman Innovation Center (NIC) Administrative Assistant for scanning andindexing into File Magic

4. The NIC Administrative Assistant• scan the bank statement, cancelled checks and other content into file magic and

index files• return the originals to the Finance Director or Staff Accountant for filing.

5. The Staff Accountant• complete the bank reconciliation for each company• complete the combined reconciliation and balance to the bank statement• the combined reconciliation also confirms the bank loan and line of credit as well

as checking• consult the Finance Director if there are any issues or difficulties in balancing;

using a team approach to resolve is often most productive• Balancing of Credit Cards is done as part of the bank reconciliation process

and is reviewed by the CPA during audit.

6. The Finance Director

Joplin Area Chamber of Commerce Financial Procedures and Policies —Last reviewed August 1, 2007 4

• review the bank reconciliation and check key components for accuracy• review accompanying bank reconciliation documents• discuss any issues or problems with the President and if appropriate with the

Treasurer and CPA as well• work out the due/to from issues and complete spreadsheet.

7. Online Banking• the online banking program is provided by US Bank• the Finance Director and Staff Accountant have access• security is at the user level with the Finance Director as administrator and Staff

Accountant as user• the Finance Director accesses frequently to monitor balances, check for

outstanding or cleared checks and watch for expected or any unexpected activity• online cash disbursements is used for payroll• ACH collections are used for monthly membership payments and monthly shop

local payments.


Joplin Area Chamber ofCommerceBank Reconciliation

Account foi:

_________________

Month Ended Date:

___________

Bank Name:____________ Last Check Used:_________

Beginning Balance Per Books:

____________________

Plus Deposits

________________________

Interest Jncome

________________________________

Other Income

______________________________

Less Checks

________________

Less Payroll

________________________

Less Loan Payment

_______________________

Less Taxes

______________________________

Less Bank Charges

____________________________

Less Other Expenses

______________________________

Ending Balance Per Books:

_______________________

Balance Per Bank

____________________

Less Outstanding Checks

___________________________

Plus Deposits In Transit

_____________________

Balance Per Bank:

_____________________

Outstanding Checks: ciit Cards:

Tonya S______

Kim $_______

Rob S_______

Kevin $________


Procedures for Budget Development and MonitoringAnd Fiscal Year Determination

Approved by: Finance CommitteeLast revised: July 1, 2007Purpose: Provide for consistent development of the annual and three-year forecast, as well as review of thedevelopment process and establish the fiscal year.

• The Joplin Area Chamber of Commerce maintains a perpetual budget by staffmonitoring the financial statements monthly and comparing the actual expensesand incomes with those projected. Variances are evaluated and action taken asnecessary to determine the cause of the variance and best solution to get back ontrack.

• The financial statements are reviewed with the Treasurer monthly.• The Chamber Board of Directors is presented the Chamber, Foundation, Joseph

Newman Innovation Center and Economic Development financial statements alongwith an Executive Summary prepared by the President and Finance Director.

• The Finance Committee reviews the financial statements and budget comparisonsat mid-year.

• The finance department staff conducts an internal pre-audit in December andJanuary as part of preparing the new budget and three year forecast.

• Also during this time-frame, the Operations Director works with the staffmanagers in preparing the needed worksheets for each committee, activity orfunction. File name STAFF WORKSHEET FOR COMMITTEE ACTIVITY ANDFUNCTION. These provide the needed detail to project incomes and expenses andare summarized in the file TRC WORKSHEET FOR BUDGET DETAIL.

• The Finance Director and Operations Director create a working version of thebudget, which is then presented to the President for review, input and approval.

• The budget as approved by the President is then ready for presentation to theFinance Committee for their review, input and approval.

• The budget as approved by the Finance Committee is then ready for presentationand recommendation for approval by the Board of Directors. This is normallydone at the board retreat if timing permits, but at least prior to March 31. Often,input at the board retreat will initiate budget revision due to programming changes,etc. Staff incorporates these changes as needed.

• The budget must be approved by the Board of Directors to become official.• The process of adoption of the budget by the Board authorizes the President to

make disbursements.

Fiscal Year Determination: The charter and by-laws of each entity specify the fiscal yearof each entity. The CPA of record confirms these. The Joplin Area Chamber ofCommerce, Foundation and Joseph Newman Innovation Center fiscal year is April 1 toMarch 31. The Economic Development records are maintained on both the City fiscal yearfor reporting to the City and on the Chamber’s fiscal year for tax purposes.


Joplin Area Chamber of Commerce Financial Procedures and Policies —Last reWewed August 1, 2007

Procedures for Receiving and Processing Cash Receipts

Approved by: Finance CommitteeLast revised: October 17, 2006Purpose: Provide for limited access to cash receipts and streamline the process for prompt deposit toreduce exposure.

1. Postman delivers mail to the office.

2. The Designated Administrative Assistant• opens mail (with the exception of bank statements, other banking notices and

banking documents as well as anything that is marked confidential)• records all checks/cash on receipts listing

o This includes the name of the person or company making the paymento the amount paido the check number or indicate if casho what the payment is for, if that is apparent

• scans listing and all checks/cash along with remittance advices into File Magic• a cash-in slip can be made to represent the amount of cash received rather than

actually scanning in the cash• indexes File Magic file by date of receipt• forwards the list and remittance advices to Finance Department• retains checks and cash in a secure location for later action.

3. The Staff Accountant• posts receipts to CCAssist (customer accounts)• codes and indicates proper bank accounts for depositing• calculates and lists the deposit balances on the front of listing or attach separate

page if no room on listing• forwards to the Newman Innovation Center (NIC) Administrative Assistant.

4. The NIC Administrative Assistant• posts the entries to Mas9O for each company, balancing to the figures provided• scans in the list again with the notes etc., as an additional page to the original file

magic file, this would include scanning any additions to the receipts which oftenoccur; the list should be inserted prior to original list and attachments should beadded to the end of file.

• Insert posting logs in book for audit• returns the listing back to Designated Administrative Assistant.

5. The Designated Administrative Assistant• creates deposit slips (in duplicate); the duplicate is retained in the deposit slip book

and the original goes to the bank with the check and/or cash• endorses checks with proper stamp• takes deposits to bank• attaches deposit receipts to copy of deposit slip in book• sends original check / cash listing back to Finance Director.

Joplln Area Chamber of Commerce Financial Procedures and Policies —Last reWewed August 1, 2007 10

6. The Finance Director• reviews check / cash listing and files for audit• routinely spot check for accuracy at all phases of the process.

7. The entire process can be performed equally as well by the Finance Manager or StaffAccountant. Equal access to these functions provides the most effective and timelyperformance of these functions. It also provides the cross training necessary to allowcontinuance of this entire process through sickness and/or vacations of any position aswell as providing random crosscheck of the functions. Mas9O records the identification ofthe party that performs the posting as part of the program’s security and passwordprotection for audit purposes.

8. The File Magic portion of this provides a “photo” of the receipts as received and thecontinued history can be attached so that it shows tracking from start to finish. This limitsexposure of the checks/cash to one person. This does not create a great deal of wastedcopies and leaves a way that the President or Operations Director could, from time to time,check the income receipts in File Magic. Furthermore, Designated AdministrativeAssistant is currently making a copy for Membership Manager, and this would allow theMembership Manager to also see the input and eliminate the need of maintaining aseparate copy. Printouts can be made from File Magic as needed.

9. To follow is a copy of the listing form to be used. It is located in the Common directory,subdirectory Forms. File name CASHREC.

10. To follow is a cash-in slip to be used when receiving cash on the listing. The originalis located in the Common directory, subdirectory Forms. File name CASH-IN.


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Date_____________ Received By______________

Amount $ From__________________

For:

CASH-IN

Date_____________ Received By______________

Amount $ From__________________

For:

CASH-OUT

Date___________ Paid Out By____________

Amount $ Paid To_________________

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CASH-OUT

Date___________ Paid Out By____________

AmountS PaidTo

For:


Cash Receipts at Events

Approved by: Finance CommitteeLast revised: Jan. 20, 2005Purpose: Provide for proper controls and security when handling money at events.

It is the policy of the Chamber to have two people present when cash is handled at events.

The Finance Director will coordinate with the event Staff Manager the proper set up andprocedures for each event based on several factors:

• Facilities available• Level of security available• Volume of cash to be processed• Determine if use of volunteers or temporary employees is appropriate.

Some events have needs that can be predetermined:

• Expo:

o A minimum of two people will handle the checkout of silent auction.o A minimum of two people will be present in the ticket booth on “public” day.o The Finance Director or Finance Assistant will maintain the key to the ticket

booth and work with event staff for maintaining security.o Finance Staff is responsible for balancing receipts after the event.

• Good Morning Joplin:

A minimum of two people will work the check in table(s) and be responsible forcollecting and balancing the receipts upon return to the office. When possible,one of the two people will be from the Finance Staff.

• Golf (or other like event):

o A minimum of two people will work the check in table(s). The majority ofthese types of events are prepaid so little cash is collected at the door.

o Concessions are the major cash driven portions of these events and are veryheavily staffed by volunteers. Staff will monitor cash activities as much aspossible. Finance Staff is available for maintaining cash reserves for changeand to collect and record proceeds as needed.


Procedure for CPA Continuation and Annual Audits

Approved by: Finance CommitteeLast revised: Oct. 13, 2006Purpose: Provide a plan for continuation of CPA services and/or advice in the event that the current CPA ofrecord is unable to perform those services due to ill health or other circumstances.

In the event that the current CPA of record is unavailable to perform necessary service,the following is provided for a contingent plan:

• Chris 0. Churchwell is the current CPA of record.• Chris is a partner in the firm of Mense, Churchwell, & Mense, P.C.• Their firm employs four (4) CPA’s, four (4) other degreed accountants and three (3)

support staff.• Short of a major disaster, their firm has enough depth of professionals and staff to

handle our accounts without going to an outside party.• Chris Churchwell has also performed audits for some of the Chamber’s affiliated

organizations in the past and stepped in when Charles Wallace was unable toprovide the services he was contracted to do in the spring of 2006.

The Finance Director maintains contact with a number of suitable member CPA’s throughthe normal course of business. Through these contacts and others in our membership, areplacement could be in place in a short period of time.

• Tonya has worked with Gene Denham, retired CPA formerly of Myers, Baker, Rifeand Denham during the 13 years that she worked at a local manufacturingcompany.

• Tonya worked for 8 years with Joe Kirk at Freeman Health System.• James Hardy was on the Innovation Center Construction Committee and has

performed some services for the Chamber as a volunteer. His firm has performedaudits for some of the Chamber’s affiliated organization in the past.

• Tonya has worked with several of the BKD CPA’s and Technology staff.• Tonya has maintained a relationship with a number of the area Finance Directors,

CPA’s and CFO’s.

With this network in place, a replacement should be able to be selected in a short time.

Annual Audits:

An annual audit of the Chamber, Foundation, Joseph Newman Innovation Center andEconomic Development financial records will be conducted by an independent CPA andoverseen by the Finance Committee with full cooperation of staff. All affiliatedorganizations are recommended to have an annual audit conducted in the same manner.


CRITICAL FILE SECURITY - CCASSIST

Approved by: Finance CommitteeLast revised: July 1, 2006Purpose: Provide for proper controls and security of critical AIR files.

CCAssist:This file contains all data for Chamber members, JBIDC contributors and Joplin CapitalCorporation customers. It is a vital file for Chamber operations.

• It is backed up on tape every day• It is backed up on Finance Directors hard drive once a week• It is protected by tandem drive• Chamber Data Systems supports CCAssist.

CCAssist Security:Each person must log on with a user name and password. Currently this is set at threelevels:Security Level 1. System Administrator (Finance Director) with assigned password hasaccess to all levels of CCAssist.• The System Administrator is responsible for processing the updates for online

membership.• The System Administrator has the responsibility of locking and unlocking the

accounting periods as needed.• The System Administrator is responsible for routine system maintenance and working

with Chamber Data Systems for upgrade and resolving issues.• The System Administrator is responsible for providing training to other staff on

CCAssist as needed.• The System Administrator is available to all employees to resolve CCAssist issues.

Security Level 2. Key Operator (Designated Administrative Assistant)The Key Operator logs on with an assigned password. It is the Key Operator’sresponsibility to keep the password private and to log out when not using the system in thelevel 2 security mode.• The Key Operator is responsible for processing invoices (creation) as requested by

Finance Director or other Managers. After processing a batch, a batch report is to beattached to request and forwarded to the Finance Director for review and filing.

• Key Operator security issues: The only module or portion of CCAssist that the KeyOperator does NOT have access to is the accounting period locking and unlocking.The effect of this is that the exposure for deleting, changing or adding an invoice orcredit is limited to the current month. The rare occasion that the Key Operator wouldattempt to make a change in a prior period would be the slim chance of catching itopen.

Security Level 3. User (All other CCAssist users)All other staff using CCAssist will log on using USER and password of Chamber. Thislevel does not permit any additions, changes or deletions to CCAssist accounting module.


The accounting module can be viewed and invoices printed within this level. Theaccounting module is Screen 5 ACCOUNT.

Note: I’ve checked with Chamber Data Systems about “locking down” the ability to deleteany records or transactions. They informed me that the measures that I’ve implementedare the proper ways to do it as much as possible with the way the software is written. Inorder to delete a record you must answer multiple requests for confirmation, so accidentaldeletes are relatively hard to do. Security Level 3 cannot delete or change any accountingitems. And Level 2 is restricted in what can be changed by the locking of accountingperiods. At this time there are no plans (by Chamber Data Systems) to make theadditional restrictions that I requested.

General CCAssist Operating Policies:1. The Membership Manager and/or the Finance Director are designated as

permitted to ADD New members. The Membership Manager is responsible forcorrect addresses and all info except dues information on Screen 4. TheFinance Director is responsible for dues information on Screen 4 and getting theaccount set up properly for automatic dues generation.

2. All staff may make address changes and other general information. If you arenot sure how to properly make a change — please ASK rather than guess!

3. DELETING an account. It is policy NOT to delete an account. The only way anaccount should be deleted is through the maintenance process. It may bedetermined that all dropped members with a drop date prior to a specific datewill be deleted upon agreement by the Operations Director, MembershipManager and Finance Director. This is only done every few years to gain backfile space and is only to be done by the System Administrator. A full report onthe selected members should be executed prior to the operation.

4. CREDITING an account. Deleting an invoice cannot be excluded frompossible options by the system for System Administrator and Key Operatorlevels. It however should be noted that this is NOT the proper method ofcrediting the account.The PROPER METHODS TO CREDIT AN ACCOUNT.a. When a member drops, their dues or other charges may be cancelled by

using the write off (wlo) option. This gives the opportunity to input thereason. The w/o method should only be used by the SystemAdministrator. Normally, just the dues portion is written off and an effortto collect all other charges is made. Other charges are written off ondropped members when all collection options have failed or it is apparentthat there is no chance of collection at the time of the drop.

b. At all other times: The System Administrator or Key Operator can entera credit in two ways:

• At the time of invoice generation. The Key Operator orSystem Administrator may make corrections to the invoice at thetime invoices are generated.

• At a later date. Input a new invoice and specify it as a creditmemo (c/rn) on the memo line and enter the dollar amount as a

Joplln Area Chamber of Commerce Financial Procedures and Policies —Last reviewed August 1, 2007 17

credit. In this case select the same batch as the original invoicewas posted to, so that matching the two up will be easier.

5. Invoice number generation: It should be noted that sequential invoicenumbers are generated automatically by the system.

Joplin Area Chamber of Commerce Financial Procedures and Poilcies —Last reviewed August 1, 2007 18

CRITICAL FILE SECURITY - FILE MAGIC

Approved by: Finance CommitteeLast revised: July 1, 2006Purpose: Provide for proper controls and security of critical Digital Documents files.

File Magic:This file contains all digital documents scanned in for long-term storage for the Chamberand other organizations. This data is critical and extremely useful to the Chamber’s staffand the other organizations’ operations.

• It is backed up on tape everyday• It is backed up on Finance Director’s hard drive once a week• It is protected by tandem drive• Heartland Technologies team supports File Magic.

File Magic Security:Each person authorized to use File Magic has been issued his or her own user name andpassword. Currently this is set at three levels:

Security Level 1. System Administrator (Finance Director) with assigned password hasaccess to all levels of File Magic.• The System Administrator is responsible for routine system maintenance and working

with Heartland Technologies Solutions for upgrade and resolving issues.• The System Administrator is responsible for providing training to other staff on File

Magic as needed.• The System Administrator is available to all employees to resolve File Magic issues.• The System Administrator has the ability to create, modify or delete users to the File

Magic System, as well as control the level of security and access each user isassigned.

Security Level 2. Key Operator (Staff Accountant and Designated AdministrativeAssistant)The Key Operator logs on with an assigned password. It is the Key Operator’sresponsibility to keep the password private and to log out when not using the system in thelevel 2 security mode.• Key Operator Designated Staff Accountant security issues: The only module or

portion of File Magic that the Key Operator Staff Accountant does NOT have access toare items specifically designated to the System Administrator. However, the StaffAccountant should always be trained and kept aware of Administrator issues as backupfor these responsibilities.

o The Key Operator Staff Accountant is responsible for processing documents asrequested by Finance Director.

o The Key Operator Staff Accountant may delegate processing to other KeyOperators.

• Key Operator Designated Administrative Assistant security issues: The onlymodule or portion of File Magic that the Key Operator does NOT have access to areitems specifically designated to the System Administrator and the Payroll Module.


o The Key Operator Administrative Assistant is responsible for processingdocuments as requested by Finance Director or Staff Accountant.

Security Level 3. User (All other File Magic users)All other staff using File Magic will log on using their assigned user name and password.This level does not permit any additions, changes or deletions to File Magic modules. Theassigned modules, directories or files can be viewed and printed within this level.

• The one exception to this wle is that entry of the Receipt — Checks & Cash log andcopies of all checks are entered by the designated Administrative Assistant so thatpossession of the cash and checks is limited to that one person. This is inaccordance to the Procedures for Receiving and Processing Cash Receipts.

General File Magic Operating Policies:

File Magic is divided into three modules with each module having a separate logonrequired to ensure access to the properly assigned individuals.

1. System Administration• System Administration is only accessible to the System Administrator and

is for the set-up and administration of users, in-baskets and generalpreferences. Security and access is controlled in this module.

2. Database Administration• Database Administration is only accessible to the System Administrator

and is for:0

0

0

Creation, design and administration of the various databases.Creation, design and administration of data queries.Creation, design and administration of document types to bestored.

o Control of the access of all users at the following levels:• Assign specific users to each database where access

should be granted.• Assign specific users to each document tvøe where access

should be granted.• This access can be at the data field level as well.

• Assign specific users to needed functions within eachdocument to the appropriate users.

• Additions to file• Modification to the file• Deletions from the file• Viewing of the documents

• Assign specific users to needed folder functions within eachdatabase to the appropriate users.

• Additions to file• Modification to the file• Deletions from the file• View the documents

• Assign specific users to needed data gueries within eachdatabase to the appropriate users.


• Additions to file• Modification to the file• Deletions from the file• View the documents

Subsets ripple down to all of the above.o Creation, design and administration of pick-lists.o Creation, design and administration of formats.

3. Input & Retrieval:• This module allows users to input, edit, file and retrieve documents in a

digital format based on rights assigned to each user.


CRITICAL FILE SECURITY - MAS9O

Approved by: Finance CommitteeLast revised: July 1, 2006Purpose: Provide for proper controls and security of critical Accounting System files.

Mas9O:This file contains all Accounting related data for the Chamber and other organizationsother than the data maintained in CCAssist. This data of course is critical to the Chamberand the other organizations’ operations.

• It is backed up on tape everyday• It is backed up on Finance Director’s hard drive once a week• It is protected by tandem drive• BKD’s technology team supports MasgO.

Mas9O Security:Each person authorized to use Mas9O has been issued his or her own user name andpassword. Currently there are four persons authorized to use Mas9O. The program is amulti-user version with the ability to be accessed by three users at any given time.

Security Level 1. Managers Group (Finance Director) is authorized to use all companiesand modules. The Finance Director is responsible for system maintenance under theguidance of the BKD team.

Security Level 2. Accounting Assistant Users Group (Currently DesignatedAdministrative Assistants and Staff Accountant)The companies and modules that are accessible to this group are set by BKD. Payrollaccess is limited to the Staff Accountant in this group.

Overall Security is maintained by the BKD team with Supervisory rights.

General Mas9O Modules, Affiliated Organizations and Audits:

The Chamber and each of the affiliated organizations that contract with the Chamber forfinancial management services have a separate database for their accounting records.There are three main modules used in the accounting process: General Ledger, AccountsPayable and Payroll. Each company has a separate database for their General Ledgerand Accounts Payable. Only the Chamber has a Payroll module. All other modules inMas9O are used for system maintenance under the guidance of BKD’s technology team.

It is policy that the Chamber books are audited by a CPA every year who also prepares theappropriate tax returns. It is the Chamber’s position that each of the affiliatedorganizations should have their books audited each year by a CPA as well as have theirtax returns prepared by a CPA. The Chamber Finance Staff will make arrangements forthese audits and assist the CPA as needed. From time to time the CPA may make arecommendation to perform a lesser service, such as a review, for some of the entities.The CPA may recommend less frequent audits in some cases as well. Each individualaffiliated organization’s Board of Directors will be presented these options if applicable.

Japlin Area Chamber of Commerce Financial Procedures and Policies —Last reviewed August 1, 2007 22

The cost of an audit, review and/or tax preparation is the responsibility of eachorganization.

General Mas9O Operating Policies and Duties:

The tasks within the Mas9O system are assigned by the Finance Director using the TeamBased Financial Management system (see the separate Procedure). Tasks are alsoassigned based on the Procedures on file for Receiving and Processing Cash andProcedures for Disbursements, keeping in mind the appropriate separation of duties forsecurity purposes. The tasks are performed in accordance with Generally AcceptedAccounting Principles under the direction of the current CPA of record and BKD’s Mas9Osupport staff.

The Finance Director is responsible for proper training of the Designated AdministrativeAssistants and Staff Accountant. Once fully trained the Staff Accountant may also providetraining and guidance as needed to the Designated Administrative Assistants.

Disbursements are processed weekly for the Chamber, Foundation, EconomicDevelopment and Newman Innovation Center. All other companies are processedmonthly unless an urgent bill is presented. An urgent bill is processed as soon aspossible.

Bank statements and balances are checked in accordance with the Procedures for BankStatement / Bank Reconciliation for each of the companies.

Routine general journal entries are entered monthly and Financial Statements areproduced monthly for each company. The exception to this rule is the Jasper CountyIndustrial Development Authority, which only requires an Annual Financial Statement.

Whenever possible, the Staff Accountant produces a first draft Financial Statement, whichis then reviewed by the Finance Director. Any issues are discussed and worked out. TheFinance Director produces a draft of the Finance Executive Summary. A final FinancialStatement and the draft Finance Executive Summary is then reviewed by the President.The approved Financial Statement and Finance Executive Summary are then presented tothe Treasurer (and Finance and Audit Committees when appropriate) and then emailed tothe Board of Directors.

Mas9O Payroll Procedures:

The Finance Director and the Staff Accountant are cross trained so that either one mayproduce payroll. Normally the Finance Director prepares and processes the payroll. TheStaff Accountant then does the File Magic scanning, pays the payroll taxes by phone andcross checks the work. See the Procedure for Payroll for more details.


Procedures for Disbursements for the Chamber, Foundation andEconomic Development Funds

Approved by: Finance CommitteeLast revised: October 17, 2003Purpose: Provide for proper controls of disbursements and segregation of duties.

Regular disbursements will be processed on Thursday and mailed on Friday.A calendar will be maintained to account for vacation or other items that might make itnecessary to change the regular schedule. Staff will be emailed when it appears thatdisbursements will be done on another day.

Daily:1. Invoices and statements received by mail will be opened by the Administrative

Assistant and forwarded to the Finance Director daily.2. All other invoices, packing slips, etc. received by other employees should be forwarded

to the Finance Director as soon as possible.3. After review by the Finance Director, the documents are all forwarded to the Staff

Accountant for processing4. The Staff Accountant will complete a payment voucher for each invoice (or group of

invoices for a single vendor). A sample voucher is attached. The form is located inthe Common directory, FORMS subdirectory, and file name is PAYMENT VOUCHER.This form indicates:

a. Company to pay the billb. Vendor name that is to be paidc. Total dollar amount to be disbursedc. List of invoice #s and datese. Costing anticipated including: expense acct to charge, expense number andamount to go to that expense, and description of item or reason for purchase(notes)f. Match up to P0 if a PC was issued for itemg. Determine who should authorize payment

1. If the appropriate person has already approved the invoice, indicate so on form;2. Otherwise, route through the folder system to the appropriate person for

approvalH. Once approved, file with appropriate company disbursements for payment.

On Disbursement Day:The Finance Director or Staff Accountant will contact the Treasurer or other designatedsigner from the finance committee (also contact designated staff) for scheduling time tosign checks (normally late on Thursday or before noon on Friday).

1. The Staff Accountant and Finance Director will review the invoices anddocumentation scheduled for payment. Once all documentation is in order, any issuesresolved and authorizations obtained, the Payment Voucher will be signed by both theStaff Accountant and Finance Director.


2. The Staff Accountant or Newman Innovation Center Administrative Assistant(NIC-AA) will post invoices to Mas9O Accounts Payable System. The StaffAccountant will print out audit reports as needed and make any necessary correctionsprior to updating the file. The final report is to be turned into the Finance Director toreview for accuracy.

3. The Staff Accountant may then update the Mas9O file and process generation ofchecks.

4. The Staff Accountant will obtain blank check stock along with the Finance Directorfrom the locked file storage area. (The Finance Director maintains the key to thelocked storage area. The Operations Director and President have knowledge as to thewhereabouts of the key.)

5. The Staff Accountant and Finance Director are to confirm that the next availablecheck number matches the check log sheet (this is maintained in File Magic andMas9O). This insures there are no missing checks.

6. The Staff Accountant now prints the checks.7. The Staff Accountant or NIC-AA then “embosses” the dollar amounts on the check

and the lower check stub.8. The President, Operations Director or other designated staff is given the checks

for signature and documentation for review. These should be done promptly so thatthe next process may take place on schedule.

9. The Finance Director or Staff Accountant then meets with the Treasurer or otherFinance Committee member as scheduled to obtain signatures, answer any questionsand allow for the review of documentation.

10. The Staff Accountant and Finance Director may then process check for distributionby doing the following. The NIC-AA may assist in this process.

a. separate the check and top stub from the bottom stubb. enclose any remittance advice or other needed documentation to assist in

proper application of credit by the vendor into the envelope with the check andstub

c. seal the envelopes and apply proper postaged. deliver envelopes to the post office and put into proper receptaclee. distribute any checks that are not to be mailed.

After Checks are Distributed:1. The Staff Accountant or NIC-AA is to put all Accounts Payable reports into their

appropriate General Ledger books. (This would include the invoice register, checkgeneration register and the check register.)

2. The Staff Accountant or NIC-AA is to scan all stubs, payment vouchers, invoices andother documentation into File Magic. One record should be created for each checkissued.

3. The Staff Accountant or NIC-AA is to INDEX all NP records by the date paid, checknumber, vendor name and company making the payment.

4. The Staff Accountant then prints out a File Magic listing to verify input and make anynecessary corrections.

5. The Staff Accountant may then file the invoices by company paying the bills innumerical order in the assigned file cabinets.


Payment Voucher

________________________________

INVOICEEntity paying the invcoNUMBER(S) DATES(S)

Vendor Name______________________________________

_______________

Total dollars to disburse: $

Expense Account Name Expense Account# $ to be paid øjthorizahon Notes

additional page requbed

Accounting Assistant Accounting Oh’ector

Payment Voucher

Entity paying the invoice_____________________________________ INVOICENUMBER(S) DATES(S)

Vendor Name___________________________________________

Total dollars to disburse:$_________________________________

Expense Account Name ‘Expense Account # S to be paid uthorization Notes

_____

additional page required

Accounting Assistant

_____________________

Accounting Director

___________________


Check Request Voucher for

Check Payable To:

_____________

amount:

_________________________

Expense to account:

___________

Description:

___________________

Check Requested By:

___________

Date:

_________________________

Other Infornation:

___________

Check Request Voucher for

Check Payable To:

____________

1mount:

__________________________

Expense to account:

___________

Description:

_____________________

Check Requested By:

___________

Date:

___________________________

Other Information:


Procedures for Employee Advances—Travel and other

Approved by: Finance CommitteeLast revised: February 1, 2006Purpose: Provide for proper documentation and authorization of employee advances and ensure propersettlement.

Travel Advance Request and Authorization

An employee travel advance may be requested for approved Chamber (or other affiliatedorganization) travel. A standard check request must be properly executed with appropriatesignatures. This request must include all trip information including destination, durationand other parties going on the trip. The amount requested will be determined bymanagement staff based on trip specifics.

The President’s employee advance must be approved by the Operations Director or theFinance Director. The President will approve employee advance of Operations Director,Finance Director, MastAlliance Director, and SWMDA Director. The Operations Directorwill approve all others.

Travel Advance Recording

All travel advances are recorded on the books as an accounts receivable from theemployee and are due and payable from the employee to the Chamber until the settlementof the advance is complete.

Travel Advance Settlement

All travel advances must be settled within sixty (60) days of the travel event.

In the event that a travel advance is not completely settled at the end of sixty (60) days,the portion of the advance that remains unsettled will be deducted from the employee’scheck.

All employees must sign an agreement that will be retained in their employee file preauthorizing a payroll deduction for unsettled travel advances before a travel advance. Asample form is located in common directory, FORMS subdirectory and the file is calledEMPLOYEE PAYROLL DEDUCTION AUTHORIZATION FOR TRAVEL ADVANCES.

Emergency Payroll Advance

An employee payroll advance may be requested in the event of an emeraencv. Astandard check request must be properly executed with appropriate signatures.

The amount requested will be determined by management staff based on the specifics ofthe emergency. The limit on this is normally expected to be less than the net of a singlepay check for that employee.

Joplin Area Chamber of Commerce Financial Procedures and Poilcies —Last reviewed August 1, 2007 28

The President’s employee payroll advance must be approved by the Operations Directorthe Finance Director. The President will approve employee payroll advance of

Operations Director, Finance Director, MastAlliance Director, and SWMDA Director. TheOperations Director will approve all others and should be co-approved by the President orFinance Director.

Payroll Advance Recording

All payroll advances are recorded on the books as an accounts receivable from theemployee and are due and payable from the employee to the Chamber until the settlementof the advance is complete.

Payroll Advance Settlement

All payroll advance repayments must be scheduled by a written contract executed bySenior Management Staff (President, Operations Director and Finance Director) andsigned by the employee along with two members of Senior Management Staff.

The repayment contract must indicate the full dollar amount advanced, and exact details ofthe repayment schedule. Repayment is best scheduled for semi-monthly payrolldeduction.

The repayment contract must allow for deduction of the entire amount over a reasonabletime.

The repayment contract must allow for the deduction of the entire balance due in the eventthat the employee leaves the employment of the Chamber.


EMPLOYEE PAYROLL DEDUCTION AUTHORIZATIONFOR TRAVEL or EXPENSE ADVANCES

I,

___________________________,

an employee of the Joplin Area Chamber ofCommerce, agree and I or understand the following:

1. I agree to execute a properly authorized request for advance andunderstand that I am liable to the Chamber for that amount until properlysettled.

2. I agree to submit a completed EXPENSE REPORT within sixty (60) daysof the trip or event for which the advance was made.

3. If a balance is due the Chamber after settlement, I agree to submit cashor check along with the properly executed EXPENSE REPORT. ****Ifcash or check is not turned in for the balance, I authorize thatamount to be deducted from my next payroll check.

__________

(initial here)

4. If a balance is due to me, the Chamber will process with the next batch ofaccounts payable checks the amount due will be added to my payrollas an untaxed expense reimbursement on the next payroll cycle. (Themethod used will be determined by employee preference, once dates foreach are determined).

5. Any disputed amount will be resolved according to the Procedure forEXPENSE REPORTS.

It is my understanding that this agreement/understanding is to remain in effect for theduration of my employment.

I acknowledge receipt of a copy of this document and understand its contents.

Signed the

___________

day of____________

________

(Employee signature)

(Witness)


Procedures for Expense Reportand br Expense Reimbursement

Approved by: Finance CommitteeLast revised: Dec. 23, 2003Purpose: Provide for proper documentation and authorization of employee expenses.

Authorization:The President’s expense reports must be approved by the Treasurer or other designatedmember of the Finance Committee. The President will approve expense reports ofOperations Director, Finance Director, MastAlliance Director, and SWMDA Director. TheOperations Director will approve all others.

Expense Report Content and Format• Original receipts are expected for all reimbursement.• Receipts such as hotel bills and restaurant receipts should be original with detail, not

just credit card receipts.• Expense reports must include in addition to original receipt: Name, date of travel or

expense, where travel occurred, and reason for travel.• A sample form is located in common directory, FORMS subdirectory and the file is

called EXPENSE REPORT.• All expenses must meet the test of “reasonable” for the purpose of the trip. In the event

that “unreasonable” charges are submitted for reimbursement, a warning will be givenand future charges for similar items will be denied.

• An expense will be denied if the item is totally unnecessary and totally unreasonable. Ifin doubt, clear unusual items with your supervisor prior to the expense.

Mileage• On out of town trips mileage can be turned in as part of the expense report.• For general and local mileage not associated to an expense report:

1. Mileage reimbursement requests are to be turned into the employee’s supervisoron a monthly basis.

2. The supervisor is to turn in the approved mileage reimbursement request to theFinance Director.

• Mileage is reimbursed based on the Federal allowance.• All mileage should indicate date, where traveled, purpose for travel and the number of

miles.• A sample form is located in common directory, FORMS subdirectory and the file is

called Mileage Reimbursement.

Payroll NON-Taxed Add OnExpense reports and mileage are reimbursed as a non-taxed add-on item to payroll unlessthe period to wait will cause the employee a problem. If that is the case a special checkmay be requested and processed with next batch of cash disbursements. Mas9O is able tohandle this type of payment without impact to the employee’s W-2 statement. Further theadd-on is itemized on the employee’s direct deposit stub.


Procedure for Internal Company Transactions

Approved by: Finance CommitteeLast revised: July 1, 2007Purpose: Provide a process on how internal company transactions are handled.

The Chamber, Chamber Foundation, Joseph Newman Innovation Center, and ChamberEconomic Development Fund all share a bank account, so transactions between theseentities can be processed through a journal entry on both sides. Transactions that effectcash are recorded on the bank reconciliation sheet for the appropriate company.

The Chamber also does the books for several affiliated organizations: Joplin Business andIndustrial Development Corporation, Joplin Industrial Development Authority, JasperCounty Industrial Development Authority, Joplin Capital Corporation, Main Street Joplin, &1-49 Corridor Coalition. Transactions that occur between the Chamber and these affiliatedorganizations are settled by issuing a check.

Common transactions would be:

• Contract Administration Fees due to the Chamber• Distributing receipts from checks received from members that combine payments to

multiple entities (although this is something we discourage our members fromdoing, we have no control over how checks are issued)

• Distributing sponsorship funds, grants, contributions, and pledges• Items paid for with a Chamber credit card or petty cash• Payments received through the Chamber credit card machine (affiliated

organizations do not have individual credit card machines).

In addition to these types of transactions, the Chamber will occasionally split bills with oneor more of these organizations. Examples of this would be a joint marketing effort,combined service, or shared equipment.


Procedures for Petty Cash

Approved by: Finance CommitteeLast revised: Dec. 23, 2003Purpose: Provide proper controls and uses of petty cash.

General:

• The designated Administrative Assistant shall maintain the petty cash fund.• Beginning cash balance for petty cash is $250.00. This amount will be reviewed for

appropriateness from time to time by the President, Operations Director, and FinanceDirector.

• Petty cash will be placed in a locked and secured location.• In the absence of the designated Administrative Assistant, another specific employee

as designated shall have access to the Petty Cash Fund.

Guidelines for Petty Cash Reimbursement

• Every employee should make every effort to do business in such a way that a checkmight be issued rather than requesting petty cash. Planning ahead is important inachieving this goal.

• Petty cash should be requested for amounts of $50 or less; a check should berequested otherwise.

• Original detailed receipts, signed by the employee making the request, marked withdetails such as the committee to be charged, reason for purchase, etc. and approvedby the President, Operations Director or Finance Director, may be presented to thePetty Cash Clerk for reimbursement. First preference for approval should be yourimmediate supervisor, if available within a reasonable time.

• Petty cash requests by the President, Operations Director or Finance Director must bevalidated by one of the other two.

• In an emergency and in the absence of the President, Operations Director and FinanceDirector, a manager other than the person requesting the reimbursement may validatethe reimbursement.

Special Circumstances:

• If a temporary advance is made to make a specific Chamber purchase, the requestmust bear two signatures as above and must be resolved by the next working dayby presenting an original receipt meeting the requirements above. Failure to furnish anoriginal receipt properly executed may result in the advance being deducted from therequestor’s payroll check. This would be categorized as “non-valid” expense on thepay stub.

• In the event that a reimbursement is requested without an original receipt, it must beapproved by one of the following: President, Operations Director and/or FinanceDirector. This type of reimbursement will only be granted upon positive knowledge oftwo of the three that the expense was valid.


Petty Cash Clerk reimbursements and recording procedures

1. The petty cash clerk is responsible for maintaining the petty cash fund in amanner that the total of cash and receipts shall always equal $250.00 as notedabove.

2. A petty cash log sheet shall be maintained so that it can be balanced to cash atany time.

3. The petty cash fund shall be balanced by the petty cash clerk once per week.4. The petty cash log sheet (sample attached) is located in the Common directory,

FORMS subdirectory, file name PC LOG.5. Each reimbursement request must have proper documentation/approvals as

noted in the guidelines for petty cash reimbursement.6. A petty cash ticket will be made for each reimbursement. The ticket will be

completed by the petty cash clerk and original receipt taped to ticket so that itcan later be scanned.

7. The petty cash ticket will be numbered for easy reference on log.8. The petty cash ticket will be logged on petty cash log sheet.9. Person receiving the reimbursement must initial or sign the log sheet.10. The petty cash clerk should request additional petty cash funds by turning in the

petty cash log with all receipts with a request for check sheet to the FinanceDirector. A copy of log should be maintained in an ongoing log book.

Verification:

• The Finance Director, Operations Director and/or President will verify the petty cashfund monthly. Each time the fund is verified the reviewer should initial the log.

• Any exceptions should be noted and also signed by the petty cash clerk.• Any exceptions should be noted as “o/s” (over and short). Over and short should net

out over time.


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PROCEDURES FOR PAYROLL

Approved by: Finance CommitteeLast revised: July 19, 2006Purpose: Provide for proper controls and security for Payroll processing.

The Finance Director and the Staff Accountant are cross-trained so that either one mayproduce payroll.

Normally the Finance Director prepares and processes the payroll and the direct deposit.The Staff Accountant then does the File Magic scanning, pays the payroll taxes by phoneand cross checks the work.

The President and the Operations Director have access to the payroll records in both FileMagic and in printed form.

The Operations Director or other appropriate party reviews stubs for direct deposit andpasses these out to the staff.

The CPA firm will review the payroll in detail during the annual audit.

Japlin Area Chamber of Commerce Financial Procedures and Poilcies —Last reviewed August 1, 2007 36

Team Based Financial Management

Approved by: Finance CommitteeLast revised: May 11, 2005Purpose: To enhance team communications within the Finance Department with emphasis on organizationand prioritization of tasks and duties; and to provide continuity in the absence of a team member.

Task Management

The TASK SCHEDULING MODULE of Microsoft Outlook is the key component of thefinance team’s communication, It is set up as a shared task planner. This electronicscheduling system provides for real time updating of the progress of all tasks within theFinance Department.

• Tasks are listed as soon as the task is identified. The date scheduled, target date andscheduled milestones are all listed. All repeat tasks are set up to be repeated onannual, monthly, semi-monthly, weekly or daily schedules. One time or special itemscan be listed as they arise.

• Reminders are set with appropriate lead times. The reminders are sent to all teammembers.

• Tasks may be prioritized according to urgency.

• Progress can be recorded in several ways. Percent of job completed as well as a dropdown selection of project stage can be updated by any team member. There is an areawhere detail and notes can be recorded.

• The joint task list can be displayed or printed in numerous formats.

• The use of this system was implemented in January 2005. It has greatly improved theefficiency of the team.

Outlook Calendar

• The entire office uses the Outlook Calendar, but it can be applied on a team level aswell.

• The Finance Team has the ability to have a team calendar as well as share neededinformation from other individual calendars for projects.

Materials and File Management

• The Finance Team fully understands the need for organization. It is very important foreach company, project or task to have a “home base”. The entire team area is set upso that everything has its own storage place. Everything should remain in its “homebase” unless it is a task being worked on at that time, in which case it will be in a workarea. This ensures that items can be located in a timely manner by all team members.

Joplin Area Chamber of Commerce Financial Procedures and Poilcies —Last reWewed August 1, 2007 37

• The use of File Magic ensures orderly, paperless filing of all important documents. Thissystem allows for timely access to information by all team members.


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