REACH Director Explains Budget Items, Financial Procedures
Tuesday, April 20, 2010 11:08 am
Following is a letter from Angela King, Director of the Cannon County REACH Afterschool Programs, to members of the Cannon County Commission.
Cannon County REACH Afterschool Programs
612 Lehman Street
Woodbury, TN 37190
To: County Commissioners
From: Angela D. King, Executive Director
On April 17, 2010, REACH hosted the 3rd Annual Children’s Health Fair at Brown Spurlock Park and this was the same date as previous years. Many children and families came through and received a lot of goodies. Everything was free for all that attended. The Police Department/State Troopers checked 14 car seats and gave out 6 new car seats. That is 6 children that will be safer in Cannon County. There were also booths set-up by the Board of Education, United Way, Fire Department, Ambulance Service, FCE Club, Chamber of Commerce, and many more. There was also music and demonstrations provided by the Cannon Dance Studio.
I have tried hard to keep the Commissioners and City Council Members abreast of the happenings at REACH. It has provided jobs, an afterschool program, Credit Recovery at the high school, food giveaways, community events, community service, summer program, collaboration with other groups and much more. This year we were not immune to the downturn of the economy, we had to make hard decisions and take cuts, but we never stopped providing quality programming and services.
I would like to explain some of the items that were questioned lately. NO ONE called and asked me to attend the County Commission Meeting on Saturday April 17, 2010. At the present time there are 190 kids in the programs. After the meeting on January 16, 2010 Commissioner Rebekah Parton was called and invited to a meeting to better explain the program, amendments and for her to ask questions that she might have. We met in the County Executive’s Office on February 8, 2010 and the following people were present: County Executive Mike Gannon, Bookkeeper Diane Hickman, REACH Director Angela King, REACH Assistant Director Linda Bedwell and Commissioner Rebekah Parton. We explained in detail how the grants work, amendments and etc. She asked numerous questions and we answered every question. The County Executive as well as myself asked her if she was now satisfied or did she have any more questions. She said she understood and was satisfied with everything. I thought the meeting went great.
This is not an uncommon occurrence. Over the years I spent time with Commissioners through phone call, mailed packets and face to face visits when there were questions. I have tried to be open and accommodating with all who requested information concerning the programming at REACH. I will continue to do this. I can always be reached at 615-849-5537 cell or 615-563-5518 office or email@example.com. I work long hours so anytime I can spend time with you just let me know.
The following week I sent a packet to each Commissioner explaining in detail the past year and the changes made to be in compliance. It also contained salaries, programming and how REACH serves the community. The REACH Program has worked hard to not only get in compliance but raise awareness of the changes.
The category that was debated at the April 17, 2010 meeting was FOOD. As records will show, FOOD is a blanket category that many small items go in to. It contains small grants (Walmart, Predators, CVS, CFMT, etc), Food reimbursement, United Way, donations and fundraisers. It has three codes: 53900 (Misc. Grants), 55770 (Food), and 55900 (United Way). These categories are used for food items, snacks, food boxes, tutors, supplies, events and much more. It is quite possible that this category may need to be renamed to something more appropriate. This pot of money fluctuates from year to year and it is difficult to properly budget for it in April. I write grants constantly and many times do not get them until spring.
Since the audit last year REACH has strived to put into practice all the changes the auditors advised us about. There was also an independent consultant that was brought in by the County Executive to ensure the process was sound. There is a paper trail for every transaction made. I do not handle the money that comes through REACH. That is handled by the Office Manager, Assistant Director, and a back up staff. They receive all the money, receipts are written for transactions; every transaction must be checked as correct by a second person and requires two signatures. All purchases over $100 are now required to have a Purchase Order and all activities are documented by the County Executive’s Office and the Trustees office. I have strived to make every change the auditors recommended plus more than they required.
I welcome any commissioner to call me. My door is always open and I only want to do a good job for the community and REACH. The staff at REACH is hardworking and dedicated and provides a very valuable service to the kids and families of Cannon County. Many of the kids served are from single parent households, grandparent led households and low income.
I am enclosing a copy of our NEW Financial Policy Handbook plus some samples of newly implemented documentation. Names have been marked out to ensure confidentiality.
Angela D. King
CANNON COUNTY R.E.A.C.H. AFTERSCHOOL PROGRAM
Adopted February 18, 2010
1. The Executive Director has management responsibility including financial management.
1. Current job descriptions will be maintained for all employees, indicating financial duties and responsibilities.
2. Financial duties and responsibilities must be separated so that no one employee has sole control over cash receipts; disbursements; payroll; reconciliation of bank accounts; etc.
3. The Office Manager will maintain a current and accurate log of the chart of accounts, and checked by the Assistant Director.
4. These policies and procedures will be reviewed bi-annually by the Executive Director, Assistant Director and the Office Manager.
1. CASH RECEIPTS (includes checks)
1. The Executive Director opens any mail addressed to REACH or without specific addressee. The receipt of checks or cash will be recorded in the accounting system. All other checks or cash will be immediately forwarded to the Office Manager.
1. The Office Manager will endorse all checks by rubber stamp to reads as follows:
DEPOSIT TO THE ACCT. OF:
CANNON CO. REACH
ANGELA D. KING
1. A report will be printed that includes the source and amount as well as the total deposit amount as received.
2. The checks and cash will then be forwarded to the County Bookkeeper (County Executive Office), who will complete a duplicate receipt. Reports and receipts will be copied and maintained by the Office Manager.
3. Documentation for all receipts (a copy of check, letter, etc.) will be attached to the duplicate slip and filed chronologically.
4. All receipts will be deposited intact. No disbursements will be made from cash or check receipts prior to deposit.
5. The Office Manager will record each cash and check payment received in a number receipt book with a duplicate for the payer. Cash shall be locked in a secure location until taken to the County Bookkeeper.
6. The Executive Director will receive a copy of all deposit reports weekly.
7. Payments received at the REACH sites will be delivered by the Site Coordinator to the REACH office for processing. Receipts will be given for cash and checks as in #7 above.
8. Checks will be deposited within 3 Working days.
9. The Office Manager will reconcile the deposits and the Assistant Director will count and sign. The deposit will be taken to the County Executive Office; the County Bookkeeper will count and sign the paperwork for accuracy.
1. CASH DISBURSEMENTS
1. Check Authorization
1. All invoices will be immediately forwarded to the Executive Director / County Executive Bookkeeper who will review all invoices for mathematical accuracy, and validity.
2. Prior to payment, all invoices will be approved (indicated by initialing) by the Executive Director who will code the invoice with an appropriate expense or other chart of accounts line item number, class and job number (where applicable).
3. Approved invoices will be entered into the accounting system by the County Executive Bookkeeper.
4. The County Executive Bookkeeper will prepare checks.
1. The County Executive will be responsible for all blank checks.
1. All checks, including payroll checks will be signed by the County Executive.
1. Petty Cash
1. Cash Boxes: each site will maintain a cash box and will be randomly audited.
1. Petty cash will be maintained by the Executive Director and reviewed for accuracy monthly by the Assistant Director.
1. Purchases under $5,000
1. All purchases over $100 must have a Purchase Order prior to purchase.
2. The Executive Director is responsible to know if the item ordered is within the budget and guidelines.
3. If purchase is less than $100, persons authorized by the Executive Director for immediate purchase and delivery can make the purchase. When this is done, invoice copies are to be turned into the Executive Director.
1. Purchases over $5,000
1. All purchases including services over $5,000 must be approved in advance by the Executive Director.
2. Purchases over $5,000 will be required to undergo a competitive bid procedure.
3. All bid requests will contain clear specifications and will not contain features which unduly restrict competition.
4. The Project Director will be responsible to ensure that all conditions and specifications of a contract, bid, or order have been satisfactorily fulfilled and will be responsible for timely follow-up of these purchases.
5. The Project Director will obtain at least 3 bids wherever possible unless prior approval by the Executive Director has been obtained.
6. Purchases of over $5000 will not be fragmented or reduced to components of less than $5000 to avoid the bid process.
1. Time Sheets
1. Each employee will be responsible for completing a time sheet on a bi-weekly basis.
2. Completed time sheets will be dated and signed by the employee, and submitted to the Executive Assistant at the end of the last working day of each pay period.
3. No payroll checks will be issued without a completed time sheet.
4. Incomplete time sheets will be returned to the employee for correction.
5. The Assistant Director will verify the accuracy of the time sheets and addition.
6. Employees will be paid every two weeks; deductions are itemized on each paycheck.
1. The County Executive Bookkeeper will enter payroll, print paychecks, print payroll reports and send reports to the Executive Director.
2. The Executive Director will review the payroll checks before they are distributed.
3. The Assistant Director will distribute the payroll checks to the employees. Checks will not be issued to any person other than the employee without written authorization from the employee.
4. The County Executive Bookkeeper is responsible for entering payroll reports into the accounting system.
5. Voluntary terminations will be paid at regular pay date. Involuntary terminations will be paid within 2 weeks separations, with the next scheduled payroll.
1. Payroll Taxes
1. The County Executive Bookkeeper will prepare and transmit the payroll tax reports, W-2 forms, and 1099 forms.
2. The County Executive Bookkeeper will verify payroll tax preparation on a quarterly basis.
1. Payroll will be prepared in accordance with the personnel policies and benefit plan.
1. TRAVEL & EXPENSES
1. Mileage to and from residence will not be paid by REACH.
1. The reimbursement will be submitted within 60 days for payment, with a total, signed by the employee, authorized for payment by the Executive Director.
2. Reimbursement will be based upon the current State travel policies. Receipts must be attached to the expense voucher for lodging, common carrier transportation, and receipts for meals where required.
3. Incomplete expense vouchers will be returned.
1. CONSULTANTS, PART-TIME-FEE FOR SERVICE AND TUTORS
1. Consideration will be made of internal capabilities to accomplish services before contracting for them.
1. Written contracts clearly defining work to be performed, terms, and conditions will be maintained for all Consultants and contract services.
2. The qualifications of the Tutor and reasonableness of fees will be considered in hiring consultants.
3. Tutors will be paid bi-weekly.
4. The County executive Bookkeeper will prepare 1099 returns for Tutors at year end.
1. Equipment shall be defined as all items (purchased or donated) with a unit cost of $500 or more and a useful life of more than one year.
1. The Office Manager will maintain an inventory log, which shall list a description of the item, date of purchase or acquisition, price or fair value of the item and its location.
2. The Office Manager will record all equipment in the accounting system. An entry must be made whenever property is disposed of or acquired.
1. Long distance phone calls made on REACH telephones by employees must be logged with the Office Manager.
XIV. BOOKS OF ORIGINAL ENTRY
1. REACH will utilize a double entry system for accounting for all funds.
2. Adequate documentation will be maintained to support all general entries.
3. At the end of each month, the Executive Director and Office Manager will prepare a Balance Sheet, Statement of Activities, and Statement of Activities by Project that will be reviewed by the Executive Director.
4. The Statement of Activities report will include a comparison to the budget.
5. REACH will maintain its accounting records on the accrual basis in a manner that facilitates the preparation of audited financial statements conforming to generally accepted accounting principles.
XVI. GRANTS AND CONTRACTS
1. The Executive Director will carefully review each award and contract to ensure compliance with all financial and programmatic provisions. The Executive Director will maintain originals of all grants and contracts in a file. The County Executive Bookkeeper will prepare initial entries as appropriate to record each award.
2. The Executive Director will prepare and maintain on a current basis a Grant/Contract Summary form for each grant or contract awarded to REACH. This form shall include the name, address, contact person, and phone number for the funding organization; the time period applicable to expenditures; all require financial and program report and due dates; and the chart of accounts line item number for the revenue deposited.
3. The County Executive Bookkeeper will prepare financial reports to funding sources as required.
4. The Executive Director will review and approve all reports to funding sources.
5. It will be the responsibility of the Executive Director to ensure that all financial reports are submitted on a timely basis.
1. The Executive Director will prepare the financial budget.
1. The County Executive Bookkeeper will ensure that budgets are on file
1. Non-Program Income
1. Donations of cash and non-program related income will be separately accounted for.
1. Accounts Receivable
1. Documentation will be maintained for accounts receivable.
2. Accounts receivable will be recorded in the books and collected on a timely basis.
1. Financial Procedures
1. Financial procedures will be reviewed bi-annually by the REACH Office Staff.
G. Personnel files
1. The Assistant Executive Director will maintain a personnel file for each employee, containing appropriate documents, such as the signed compensation agreement, approval of changes in compensation, an I-9 immigration form, and withholding forms for taxes, benefits, deferred compensation, and charitable contributions.
1. The County Executive Bookkeeper will disburse a check from REACH funds for start-up monies, with a detailed list of items to be purchased.
2. With-in five days REACH will turn in Receipts and reconciliations to the County
1. A copy of all transactions will be available at the REACH and County Executive offices.
Executive Director, Angela D. King __________________________________________________
Assistant Director, Linda Bedwell ____________________________________________________
Office Manager, Melinda Malone _____________________________________________________
County Executive, Mike Gannon ______________________________________________________
County Executive Bookkeeper, Diane Hickman __________________________________________
EDITOR'S NOTE: Cannon County Executive Mike Gannon told the Cannon Courier today that he would give consideration to calling a special meeting of the County Commission to address any concerns commissioners might have concerning the REACH budget if requested to do so by commissioners. Gannon also offered to make available the independent auditor who assisted REACH in formulating its new financial practices following last year's state audit.
Also today, King reaffirmed an earlier statement published by the Cannon Courier to the effect that the program receives no funding from the County General Fund from property or sales taxes.