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Financial Management Policies and Procedures
UNC MPA Alumni Association Financial Management Policies and Procedures
GENERAL PURPOSE - The purpose of these policies and procedures is to establish guidelines for developing financial goals and objectives, making financial decisions, reporting the financial status of the UNC MPA Alumni Association (Agency), and managing the Agency’s funds.
FINANCIAL RESPONSIBILITIES – It is the responsibility of the UNC MPA Alumni Association Board of Directors to formulate financial policies and procedures and review operations and activities on a periodic basis. The Board delegates this oversight responsibility to the Treasurer of the Board.
The Treasurer of the Board acts as the primary fiscal agent, implementing all financial policies and procedures. The Treasurer of the Board is responsible for the coordination of the following: Annual budget presentation to the MPA Alumni Association Board of Directors, financial report during UNC MPA Alumni Association Annual Business Meeting, selection of outside auditors, if needed, developing financial goals and objectives for the Board of Directors’ consideration, Form 990 reporting and approving revenue and expenditure objectives in accordance with the Board approved long-term plans.
The Operations Director of the MPA Program, with oversight by the Treasurer to the Board, has the day-to-day responsibility for managing Agency funds, ensuring the accuracy of the accounting records, internal controls, financial statement preparation, and bank reconciliation review and approval. The Operations Director of the MPA Program is responsible for the preparation of the Chart of Accounts, Reporting Formats, Accounts Payable Processing, Cash Receipts input, Journal Entries for General Ledger Form, as well as Bank Reconciliations.
CONFLICT OF INTEREST – Members of the Board of Directors are prohibited from activities that might present conflicts of interest. The powers of directorship may not be used to personally benefit the Director at the UNC MPA Alumni Association’s expense. If a Director has a financial interest in a UNC MPA Alumni Association transaction, the Director must fully disclose the interest and abstain from voting. Loans to Directors and Faculty and Staff of the UNC School of Government are prohibited.
BUDGETING PROCESS-The Treasurer to the Board shall be responsible for presenting to the UNC MPA Alumni Association Board a proposed operating budget. As stated in the UNC MPA Alumni Association’s Bylaws, the Alumni Board shall adopt an annual budget for the new fiscal year (July 1 to June 30) at an Alumni Board meeting to be held no later than June 15 of the expiring fiscal year. The Alumni Board shall receive a copy of the proposed budget at least one month prior to its adoption. As part of the proposed budget, a financial report shall also be prepared and made available to the Board.
The Budget approved by the UNC MPA Alumni Association Board of Directors shall be posted on the UNC MPA Alumni Association Website no later than 10 days following approval by the Board.
The Alumni Board shall submit a financial report to the Association at the annual business meeting.
FINANCIAL UPDATES – The Treasurer to the Board shall prepare and present a Financial Update to the Board at each regular UNC MPA Alumni Association Board meeting. At a minimum, the Financial Update shall include, in writing, actual revenues and expenditures for the UNC MPA Alumni Association as compared to the approved Budget for a time period ending the last day of the month prior to the regular board meeting (e.g. if the Board meeting occurs in March, then the Financial Report should be through February 28). The Report also shall indicate the cash balance of each UNC MPA Alumni Association account as of the same reporting day used to report revenues and expenditure. The Agency’s financial updates shall be prepared on a cash basis.
CASH FUND - A cash fund of one year of the Agency’s annual operating expenses (only General Expenses, not including Conference Expenses) shall be maintained in the Suntrust Checking Account. When the fund balance falls below this minimum, the Treasurer shall develop a plan for rebuilding fund balance to the one year minimum, which shall be considered for approval by the Board.
RECORDING RECEIPTS – In consultation with the Treasurer to the Board, the Operations Director of the MPA Program shall develop procedures for MPA Staff to handle cash and checks received through the mail, which will ensure proper segregation of duties.
All checks shall be endorsed with the Agency’s official stamp. An individual deposit ticket shall be prepared for each account. That record shall include date of deposit, name of sender, amount, and designation. A copy of the bank deposit slip is retained in chronological order with copies of the deposited checks. All cash and checks shall be deposited the same business day if possible, and no later than the next business day into the Agency’s Bank Account. The same procedures followed for cash receipts shall be followed when monies are received by employees as contributions for special events/conferences. Gifts received electronically, such as stock transfers or on-line contributions should be properly recorded by the Treasurer to the Board and by the Operations Director of the MPA Program. Transactions should be periodically rechecked by the Treasurer to the Board.
RECEIPTS TO DONORS - The Treasurer to the Board shall ensure that all donors and contributors receive proper acknowledgement of their contributions in accordance with IRS Guidelines.
EXPENDITURES PROCEDURES - All expenditures shall be approved by the Treasurer to the Board. All expenditures shall be coded by UNC MPA Alumni Association budgetary line items. An MPA staff member, designated by the Operations Director, maintains standard accounting records containing all aspects of the Agency’s financial operations. They include but are not limited to: A general ledger and a check register. Invoices shall be approved by the Treasurer of the Board. Following the review and approval, check payment vouchers shall be prepared and the invoices shall be distributed to an MPA staff member, designated by the Operations Director, for check payment preparation. Upon payment of a bill, a copy of the check or duplicate of stub shall be stapled onto the bill and payment date and check number shall be printed on the invoice. The paid invoices shall be filed alphabetically according to company/individual name and shall be kept on a fiscal year basis on file.
SIGNATURE POLICY - The Treasurer to the Board and the Operations Director of the MPA Program shall, unless otherwise decided by the Board, have authority to sign all checks, drafts, or orders for payment of money, contracts, and commitments for services issued in the name of the Agency. A single signature is acceptable, but the Board has the authority to require dual signatures at any time. In the absence of either individual, the signature of the President must be obtained. The Board of Directors retains the authority to rescind check signature authority at any time.
PURCHASING - Any expenditure in excess of an amount determined by the Board for the purchase of a single item should have bids from three (3) suppliers if possible. These bids are reviewed by the Treasurer to the Board and the bid award must be specifically approved in advance by the Treasurer to the Board. Purchase of less than the approved amount may be made at the discretion of the Operations Director of the MPA Program without competitive bids. Any purchase made by a Board member on behalf of the Agency will require prior approval by the Treasurer to the Board.
LEASES AND OTHER CONTRACTUAL AGREEMENTS - The President and Staff members are authorized to develop and enter into contractual agreements with vendors, bankers, and third parties for the purpose of ensuring the Agency’s general operations. The Treasurer to the Board shall review such agreements and make recommendations when necessary. Contracts in excess of an amount determined by the Board of Directors shall come before the Board for approval before they may be executed.
BANK ACCOUNTS AND INVESTMENT ACCOUNTS - The Treasurer to the Board shall maintain and oversee Bank and Investment accounts, and the Operations Director of the MPA Program shall ensure the Agency’s day-to-day financial operations. Several accounts may be maintained by the Agency as follows:
- Checking Account
- Certificates of Deposit
- Conference Account
- Trust Account
These accounts may be changed as the Agency’s financial conditions and requirements change.
CHECKING ACCOUNT - All checks, cash, money orders, and credit card deposits that are not related to the Public Administration Conference, are reviewed by the Operations Director of the MPA Program and deposited in the Checking Account. Monies may be transferred from the Checking account into a Certificate of Deposit when necessary, by the Treasurer to the Board.
CONFERENCE ACCOUNT –All checks, cash, money orders, and credit card deposits that are related to the Public Administration Conference are reviewed by the Operations Director of the MPA Program and deposited into the Conference Account. All expenditures related to the Public Administration Conference shall be paid out of the Conference Account.
TRUST ACCOUNT – Any other MPA Alumni Association expenditures may be paid from the Trust Account, pursuant to University policies and procedures for restricted funds of this type.
BANK RECONCILIATIONS - Bank reconciliations shall be completed monthly by the Operations Director of the MPA Program cross-referenced with the cash and receipts logs. The reconciliation shall be forwarded on a monthly basis to the Treasurer to the Board. The Financial Updates shall be compiled by the Treasurer to the Board. The Updates shall be then be reviewed by the Board of Directors at each regular meeting of the Board. All Bank Statements will be reconciled every month by the Operations Director of the MPA Program, and records will be kept in the Operations Director of the MPA Program office.
DOCUMENT RETENTION - Financial documents are retained for a period of time in keeping with State law, UNC policies and the recommendations of the IRS.
TAX REPORTING - The Agency is exempt from federal income taxes under Section 501 (c) (3) of the Internal Revenue Code as amended. Accordingly, no provisions for income taxes shall be reflected in the financial statements. Annually, the Treasurer will file appropriate documents with the IRS to meet tax filing requirements.
Original Drafted – September 2015
Adopted by UNC MPA Alumni Association Board of Directors – February 19, 2016