Accounting Procedures Establishing Safeguards
The following procedures have been implemented to ensure charity funds are safeguarded from misuse or the appearance of misuse.
- See the Compensation Policy, Conflict of Interest Policy and Document Retention Policies for a foundation of accounting procedures.
- An annual budget must be approved by the board of directors prior to a new fiscal year.
- Any fundraising that involves third party fundraisers must be approved by the board of directors and posted on the LFI site, naming the entity doing the fundraising, how it is to be done and why it is being done.
- Third party fundraisers must be reviewed by the CFO quarterly and their efficiency reported on the site publicly.
- All expenses must be approved by the Treasurer or President if over $100.
- A standing committee of the board of directors will provide oversight of the financial transactions of the corporation and those authorized to execute the financial duties of the corporation.
- The board will elect a director to the office of Treasurer.
- The Treasurer will serve as CFO .
- The Treasurer and the President are bared from serving on the financial committee.
- The EVP of Administration or General Counsel will be the chairperson of the finance committee.
- The finance committee will receive regular reports from the CFO.
- LFI has established a Business Checking Account with Azlo Bank. This account will be the primary LFI depository.
- LFI will establish a credit card account to be used for emergency purposes and to build credit worthiness. As the organization has no credit presently the CFO is authorized to open a secured card account of under $1000.
- LFI has established a DUNS Number: 117470647 to manage business credit reporting.
- All LFI expenses must be made using an LFI credit, debit or financial accounts.
- No member of LFI may spend personal funds and be reimbursed.
- No personal accounts can be used to hold LFI funds or be utilized in any way for the organization after funds have been donated.
- LFI staff and volunteers may make donations to LFI prior to using a corporate card but those funds are always donations.
- The CFO may approve LFI agents to carry branded corporate cards with limits set by the CFO.
- LFI has established an Amazon Business account. All purchases over $100 must be approved through Amazon’s workflow by the CFO or a staff member delegated this task.
- LFI will not solicit or require financial donations from staff or advisors.
- LFI members, board members, officers, advisors and volunteers are all non-paid agents of the corporation.
- Only staff can be compensated for work performed.
- No staff members may be related to a member, board member or officer.
- Individuals are deemed “related” if they share a common grandparent.
- Disbursements of funds larger than $1000 must be reported publicly before they are disbursed on the web site as a news item.
- Certain funds may have Google Groups established allowing donors to these funds to receive communications concerning the use of these funds, so long as no client information is shared.
- All corporate accounts will be audited by a third party accounting agency or professional. This agency or professional must be different from the preceding year’s auditor.
- The audit report must be released annually to all members and donors through email and posted on all LFI sites.
To Be Implemented
30. The daily financial accounting for the charity will be outsourced to a third party such as Bench.co when we’ve earned a grant allowing for that expense. Until that time, accounting software such as Quickbooks or something through Techsoup.org will be used.
31. Corporate Expense Cards will be setup through a vendor once sufficient capital has been received to warrant them, such as with Divvy.com
These policies are consistent with established policies of the board and have been enacted by the president. These policies are immediately in effect.
Note: 12, 13, 14 were added 6-18-2020