Friday, April 15, 2016

Internal Controls Policy

Odon Winkelpleck Public Library

Internal Control Policy

(approved 4/12/2016)

  1. Introduction

The Odon Winkelpleck Public Library is committed to best practices in all matters related to financial accountability and transparency and, thus, will subscribe to the following internal controls. Due to library staff size and responsibilities, the library director has primary responsibility for day to day financial responsibilities. These controls are designed to ensure the appropriate handling of all monies received and expended by the library and its representatives

This policy is subject to annual review by the Board of Trustees.

  1. Receipts

  1. The library has established a cash fund to be kept at the circulation desk during operating hours. The cash fund and all accumulated receipts are stored in a locked filing cabinet when the library is closed.

  1. Cash received at the desk is recorded on a Daily Worksheet form. Receipts are totaled at the end of the day and entered into the Daily Record of Desk Collections. The accumulated total on that record is compared to the actual cash on hand. Any shortages or overages will be categorized as “other.”

  1. Total desk receipts are generally less than $100 per week and are deposited on a weekly basis. The office manager is responsible for preparing the weekly deposit.

  1. All adjustments to fees owed by customers are documented in a register kept at the circulation desk.

  1. Income received apart from desk collections is receipted and prepared for deposit by the office manager.

  1. Pre-numbered receipts are issued for all money collected apart from desk collections and the duplicate receipt is retained.

  1. The bookkeeper is responsible for maintaining the cash receipts ledger and tracking balances for the various library funds and any restricted donations.

III. Disbursements

  1. All payments by the library must be authorized with a voucher. Vouchers are prepared by the office manager and approved by the library director.

  1. All disbursements shall be made by check or electronic transfer. The bookkeeper prepares all checks, using approved warrant forms, and records the checks in the library ledger.

  1. The bookkeeper is the custodian for blank checks. All checks are pre-numbered and used in sequence.

  1. Voided checks shall be properly marked and retained.

  1. All checks are signed by the treasurer. In the event, the treasurer is unable to sign for an extended period, the library board president is on the signature card at the bank.

  1. The bookkeeper shall prepare a monthly claims register for all vouchers entered since prior board meeting and present it to the board for approval and signatures.

IV. Bank Accounts

  1. The library director and/or the bookkeeper will monitor bank account balances and transfer funds as necessary.

  1. Any change in signature authority will be immediately reported to the bank.

  1. The bookkeeper is responsible for reconciling all bank account balances on a monthly basis. All receipts and disbursements will be checked for accuracy and outstanding checks noted.

  1. Petty Cash

  1. The library board has established a Petty Cash fund for small purchases. The office manager is the custodian of this fund.

  1. All purchases from the petty cash fund must be documented and the receipt kept with the fund. Reimbursement to the fund will be done on a monthly basis with a check made payable to the custodian of the fund.

  1. The library director will periodically count the Petty Cash fund.

  1. Investments

  1. All investments will be approved by the library board and in conformance with the library investment policy.

  1. The library treasurer will be responsible for all investment transactions.

  1. Payroll

  1. All employee records will be stored in a file kept in a secured location.

  1. Rates of pay are set annually by the library board. Any changes to employee pay rates must have board approval. Changes in the pay rate shall be promptly reported to the payroll clerk.

  1. Time sheets are to be prepared by staff on the approved form. Signed time sheets must be submitted by the end of each month.

  1. The director will review each month's time sheets for accuracy before submitting them to the payroll clerk.

  1. The bookkeeper will maintain an Employee Earnings Record for each employee.

  1. The director shall certify each month's payroll.

  1. Bookkeeping System

The library uses a paper bookkeeping system. All receipts and disbursements are entered into a spreadsheet formatted to match general form No. 359: Ledger of Appropriations, Encumbrances, Disbursements and Balances. Each month's record is printed after all transactions are complete and bank balances are reconciled. This shall be done within the first fifteen days of the following month. The dated paper printout is the official record.