The financial policies and procedures of the Hyde Park Neighborhood Association (HPNA) are contained within this document. The objective of written policies is to reassure the HPNA Board of Directors and members that the accounting function has formal direction. It describes exactly how the organization ́s accounting and financial affairs are to be handled and how the financial statements are to be presented. The approval of these policies will also satisfy in part the fiduciary responsibilities of the board and Treasurer with regard to financial management oversight.
Access to Records by Members
It is the policy of HPNA to allow voting members to inspect the following records of the organization: • IRS Form 990
• Original application for tax-exempt status • Audited financial statements
• Membership list
• Board and member meeting minutes • Accounting Method
Accounting Policies and Procedures
HPNA will record transactions and prepare financial statements in accordance with generally accepted accounting principles (GAAP). Statement of Financial Accounting Standards and Interpretations issued by the Financial Accounting Standards Board are considered GAAP. HPNA adopts those standards and interpretations as of November 30, 2000 and future amendments to existing standards or adoption of new standards that are relevant to recording transactions and preparing financial statements for not-for-profit organizations. HPNA will utilize the cash basis of accounting that recognizes revenues when cash is received and expenses when they have been paid.
Bank Statements will be addressed to the Treasurer of HPNA at the Association post office box. The Treasurer shall perform the bank reconciliation. Documentation will be maintained at the Treasurer ́s home including monthly bank reconciliation, internal financial statements, paid invoices, receipts, deposit register, and voided checks. Previous year documentation will be maintained at the Association office.
Budgeting Process and Procedures
The annual budget represents the forward projection of revenues and expenses based upon HPNA ́s objectives.
The by-laws require the Treasurer to submit to the Board of Directors for its approval an annual budget in September for the next fiscal year.
The by-laws require the Board of Director to publish the proposed budget in the November Hyde Parker.
The by-laws require that the budget be approved by the voting members of the Association at the November general meeting.
The by-laws provide a process for amending the November approved budget.
Budgeting control reports comparing actual expenditures against the original fiscal year budget will be prepared quarterly for dissemination to the Board of Directors.
Chart of Accounts
HPNA will utilize a chart of accounts that will allow the organization to maintain its books and prepare financial statements in accordance with generally accepted accounting principles (GAAP).
All expenditures of HPNA will be handled by check. All check disbursements will require approved invoices or receipts.
Check Endorsement Stamp
The Treasurer will endorse and stamp all incoming checks as follows:
Pay To The Order of _____________ Bank Kansas City, MO ______ Account Number For Deposit Only Hyde Park Neighborhood Association
The Treasurer and two of the following positions may be given check-signing authority by the Board of Directors:
- 1st Vice President
- 2nd Vice President
- Recording Secretary
- Correspondence Secretary
Any check less than $500 can have an e-mail approval from the president and contain only the treasurer’s signature. Any check written to the treasurer or immediate member of the treasurer’s family for reimbursement of appropriate expenses would require two signatures. (approved by General body July 2011)
HPNA will make its application for tax exemption (Form 1023) and its annual information returns (Form 990, 990-EZ, and/or the 990-T) available for public inspection and fulfill requests for copies of these forms pursuant to Treasury Regulation 301.6104(d)-2 through 301.6104(d)-5 as in effect on November 30, 2000. Any future changes made to the IRS disclosure rules are adopted automatically.
The Treasurer shall receive and record all deposits by date, name, amount, and chart of account. The ______________________ shall:
• maintain a membership list with date, name, address, membership type, and amount; and • provide a quarterly copy of the membership list to the Board of Directors.
A financial audit of the organization will be conducted by an audit committee as required in the by-laws.
Financial Statement Preparation and Distribution
The Treasurer will prepare and distribute monthly financial statements to the Board of Directors that will include the Profit and Loss Statement and Balance Sheet.
Distribution of financial reports to all other interested parties (e.g. HPNA members) will be made as requested.
Individuals and/or committees may submit grant applications for funding in the name of the Association with approval prior to submission by the Board of Directors.
It is the policy of the organization to invest excess cash in the following list of approved investments: • Certificates of Deposit
• Bonds (Min. AAA rating required)
Investment in common stock and other securities not fully insured by the Federal Deposit Insurance Corporation (FDIC) is prohibited.
HPNA prohibits loans to members under all circumstances.
Non-Cash Contributions and Memberships
Non-cash contributions of goods and services will be recorded in the financial statements as “non-cash income” with a corresponding expense entry based on the value of the contribution. The donor of the goods and services will be responsible for providing documentation to HPNA designating the value of the non-cash contribution.
Checks are voided for many reasons, such as errors made in the course of preparing a check, duplicate payments made to vendors, stop payments issued on lost checks, etc. Regardless of the reason, it is the policy of the organization that every voided check is accounted for. Voided checks will be stamped ́VOID ́ and filed with the organization ́s canceled checks.