As Directors are trustees with a fiduciary responsibility, there should be adequate Director involvement. There should be procedures in place for Director approval, knowledge and review of any major spending. Directors should be provided with financial statements and other appropriate management reports. A report matching expenditures and approved budget(s) is recommended, with the understanding that expenditures may fall in a year subsequent to the year of approval and the report may span two or more years.
Cash controls should include: Separation of receipt, deposit and disbursement duties; reconciliation by individual other than an authorized signer on account and review by supervisor/executive; officer involvement in accounting functions when separation of duties cannot be maintained by staff (approving invoices and expense reports, signing checks, depositing receipts and making investments); officer review of disbursements, expense reports, invoices and receipts at least quarterly.
Fixed asset controls should exist for office equipment and furniture funded fully or partially by checkoff funds. The QSSB should retain title to any fixed assets and maintain a listing of all fixed assets. Assets may be disposed of by sale at fair market value (or donation if zero market value). Funding of equipment for research projects is strongly discouraged; however, it may be done under certain guidelines.
Normal accounting controls over records should be in place, including proper review procedures. All records, including assessment collection records, invoices, timesheets and expense reports, should be retained a minimum of five (5) years prior to the current fiscal year. Therefore, a total of as much as six (6) years of records will be available at any time when the current year is included.
Please see the AMS Directive as detailed in Appendix D in regard to Investment Compliance.