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  • 1.  Chapter Finance

    Posted 12-21-2017 12:25
    I am curious about how ASA Chapters handle their bank accounts and finance after new officers are elected. In Florida, we use a bank account that requires all key executives to be present when signers are added or removed. Does anyone have experience with a bank account which has a better policy and procedure for non-profit organizations with new executives every few years?

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    Yueh-Yun Chi
    Associate Professor
    University of Florida
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  • 2.  RE: Chapter Finance

    Posted 12-22-2017 08:35
    There are three important controls that should be in place for small non-profit groups such as yours.

    First copies of monthly bank statements should go to two officers, the treasurer who has check signing authority
    and to another office who reviews the statements to insure that only proper expenditures are made. This second officer must be diligent in the review of these statements.

    Second every non-profit should formally adopt an annual budget and this budget should be reviewed and approved by the entire board.

    Third the treasurer should prepare at least quarterly financial statements which compare actual to budgeted operating results.

    The absence of these control invites fraud.



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    Michael Sack Elmaleh
    Principal
    Michael Sack Elmaleh CPA, CVA
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    Original Message


  • 3.  RE: Chapter Finance

    Posted 12-28-2017 07:31

    Dear Colleagues,

     

    I'm finally getting caught up with ASA digests that came in over the holidays. As a CPA and former auditor, internal control is close to my heart. I needed to add my two cents to Michael's excellent recommendations.

     

    First, I would add that it's very important to ensure that the bank statements come with check images. Many banks no longer include check images in their standard business or non-profit account packages and instead require the account holders to download the check images online. This frustrates the ability of someone to review the bank statement, as well as makes the bank statements an incomplete record. It's therefore critical to insist that the bank include the check images with the monthly bank statements, even if the bank charges an additional fee for this service.

     

    Second, I would just add that I recommend that the second officer reviewing the bank statements that come in the mail directly to them should not also be a signer on the account. Reviewing the bank statements and having signing authority would be incompatible duties. I believe Michael was implying that the reviewer wouldn't have check signing authority, but because of posts further down the digest, I just want to make it clear.

     

    Best regards,

     

    Greg

     

     

     

    Please note that I check email once a day and strive to return all messages by the end of the next business day. If urgent, please call or text me at 857.636.1694.

     

    -- 
    Gregory Csikos,     CPA, CFE, GStat
    www.csikoscpa.com | greg@csikoscpa.com

    139A Charles Street, Suite 249

    Boston, MA 02114

    P: 857.636.1694
    F: 857.201.3202


    This e-mail and the documents accompanying it contain information which is confidential or privileged. The information is intended to be for the use of the individual or entity named in this transmission. If you are not the intended recipient, be aware that any disclosure, copying, distribution or use of the contents of this information is prohibited. If you have received this e-mail in error, please notify me by telephone immediately and promptly delete this email from your computer.

     




    Original Message


  • 4.  RE: Chapter Finance

    Posted 12-23-2017 18:51
    That is standard practice. In a larger picture, suppose that a husband and a wife or business partners have a joint account. If one of them decides to leave the other, one of them could take the other off the account without knowing it. 

    A simpler method would be to have only a Treasurer on the account. You can get multiple debit cards so everyone has access to the money or set up apps so all the officers can see the account balances. But, if your group insists on have multiple people with usage rights to the account, you'll all have to go to the bank at the same time. 

    Another, less simple method, is to have 3 current officers sign the account over to one new officer. Then have the other new officers all go at the same time. That way, you only need to coordinate 3-4 people at the same time. 

    You only need people on the account if they will withdraw/spend money. Anyone can make a deposit. 


    BTW, if any group could use more money, ask some of the faculty in your group to donate current books to the group. I made about $600 for one of my groups with 20 mins of work. You can sell the books directly to Barnes and Noble. The pay for shipping. You get a check in a few weeks. We all know faculty have excess and multiple copies of text books. Be kind and donate just one of those to your ASA group.

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    Andrew Ekstrom

    Statistician, Chemist, HPC Abuser;-)
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    Original Message


  • 5.  RE: Chapter Finance

    Posted 12-28-2017 07:31

    Dear Andrew,

     

    For reasons of ensuring clear lines of authority, and the proper segregation of duties, I have to disagree with what you're suggesting.

     

    In general, as few people as possible should have signing authority on a bank account or the ability to make debit card payments. This ensures that transactions have only one route for initiation and approval. In a typical situation, the treasurer would have day-to-day signing authority and custody of the sole debit card, with the president also having signing authority as a back-up but, as a rule, rarely use it.

     

    Having multiple people with signing or debit card authority makes it possible for people to point fingers when a questionable payment is made. Also, it makes it easy for an account to become overdrawn because a single person (the treasurer) isn't managing cash flow.

     

    Lastly, having a single person (the treasurer) have the sole ability to make payments allows that role to be overseen by someone else not involved in making payments. As Michael Sack Elmaleh recommended, a copy of the bank statements should be received directly from the bank by someone other than the treasurer and reviewed in depth. If everyone had signing authority or debit cards, then people would be reviewing their own actions. Reviewing the bank statements and having signing authority are incompatible duties.

     

    Best regards,

     

    Greg

     

     

     

    Please note that I check email once a day and strive to return all messages by the end of the next business day. If urgent, please call or text me at 857.636.1694.

     

    -- 
    Gregory Csikos,     CPA, CFE, GStat
    www.csikoscpa.com | greg@csikoscpa.com

    139A Charles Street, Suite 249

    Boston, MA 02114

    P: 857.636.1694
    F: 857.201.3202


    This e-mail and the documents accompanying it contain information which is confidential or privileged. The information is intended to be for the use of the individual or entity named in this transmission. If you are not the intended recipient, be aware that any disclosure, copying, distribution or use of the contents of this information is prohibited. If you have received this e-mail in error, please notify me by telephone immediately and promptly delete this email from your computer.

     




    Original Message


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