Eagle Consulting
Leadership Long Beach

Accounting Policies
and Procedures
Introduction
The Project
•
•
•
•
•

Willie Cole
Fabian Georges
Steven Jorgensen
Jason Nick
Sheri Smoody

Eagle Consulting
The Team
The Mission
Develop and Connect Principled Leaders to
Strengthen the Community

Leadership Long Beach
• A Non-Profit Organization Established in 1989
• Support Civic Programs
• Educate and Produce Leadership
• Serve the Comm...
Organizational Chart
• Accounting Policies and Procedures
• Bookkeeping Intern Training Procedures
• Enhanced Financial Reporting

• Improved D...
• Accounting Policy and Procedures Manual
• Document Control and Reconciliation
• Intern Procedure Manual
• Increased Func...
Client Meeting
The Accounting Policies and
Procedures Manual
The Deliverables
The Deliverables
• Blueprint for Procedures and Policies
• Internal Control

•
•
•
•
•

Accuracy
Compliance
Safeguard Assets
Deter Fraud/Th...
Cash In
•
•
•
•

Contributions
Fundraising
Tuition
Membership
Dues

Cash Out
• Payments to Vendors
• Staff Training and
Re...
•
•
•
•
•

LLB Meeting Expenses
Marketing and Promotional Materials
Employee Reimbursements
Credit Card Usage
Bank Account...
• Property and Equipment

• Personnel Records

• End of Month/Year End Close

Compliance
• FDIC Insured Bank
• Bank Account Signatures

• Donations over $50
• Correcting Mistakes on Documents

Policy Statements
The Forms
The Internal Controls
• Organization
• Communication

• Documentation
• Internal Control

Accounting Forms
ACCOUNTING FORMS LIST
FORM
NO.
500
501
502
503
504
505
506
507
507-A
508
509
510
511
512
513
514
515
516

FORM
NAME
Donati...
CHECK REQUEST FORM
Please prepare a check to the following payee:
Payee:
Address:

Check Amount:

Acct. No.

$0.00 Date Ne...
JOURNAL ENTRY APPROVAL & ALLOCATION FORM
Re ason for adjustme nt:

Journal Entry:
Account to Adjust

De bit

$0.00

Cre di...
BANK RECONCILIATION SAMPLE
Bank Reconciliation Outstanding Checks
For Account
Checking # 1010 F & M as of : January 31, 20...
REIMBURSEMENT REQUEST FORM
Date

Expense

Amount

Mileage

$0.00

TOTAL EXPENSES:

$0.00

Number of miles

0

Name:

Appro...
The Intern Manual
The Bookkeeping
The Intern Station
• Posting Payments
• Posting to Accounts

• Assembling Deposits
• Filing Documentation

Intern Duties
• Paying Bills
• Writing Checks

• Posting Expenses to Correct Accounts
• Filing Documentation

Intern Duties
• Click on “Banking”
• Choose “Make Deposits”

• Start Typing the Customer’s Name in the
“Received from” Drop Down Menu
• ...
Screenshots of Quick Books
• Reports

• Financial Statements
• Duplication of Efforts

• Reconciling Bank Accounts
• Chart of Accounts

Challenges of...
Cost and Benefits
The Payoff
• Cost Effective Intern/Accounting Manual
• Pro Forma Cost Evaluation
• Benefits to Our Customer

Cost and Benefits
Analys...
• Analyze the Existing System and Policies
• Developing Best Use of Technology

• Producing Printed and Digital Deliverabl...
• Document the Policies and Procedures

• Relieves the Director of Some Accounting
Responsibilities
• Allows the Director ...
• Total Team Time to Date
• 377.24 Man Hours
• $65.00 Hourly Rate
• $26,000
• 5 Members on the Team
• 75.5 Man Hours Per P...
Actual

• Immediate Benefit
Upon
Implementation
• Zero Cost to
Recover

Pro Forma

• Estimated Cost
$9,800
• Estimated Ann...
Break Even Point
3.5

0-cost

3

Axis Title

2.5

Pro Forma

2

1.5

1

Time line to
recoop

0.5

0
1st month

2nd

3rd

4...
Quality Assurance
Testing Quality
Project Constraints

Access

Technology
5
4
3
2
1
0

Cost

Time

Project Constraints

Access

Technology
5
4
3
2
1
0

Cost...
• Policies and Procedures
• Intern Duties and Processes
• Version Control

Quality Assurance
Testing
The Video
Recommendations
The Future
• Establish Proper Interface Between
QuickBooks and Bank Accounts
• Interface QuickBooks and DonorPerfect

• Enter Annual ...
• Implement Password Internal Controls
• Implement Daily or Weekly Computer
System Backup Procedures
• Implement a Written...
Conclusion
The Evaluation
• Accounting
Manual
• Intern Manual
• Benefits for LLB

Conclusion
Limiting Scope
Communication
Logistics

Size of the Project
Utilizing QuickBooks Features
• Leadership Long Beach
• Jeff Williams (Executive Director LLB)
• Rolando Cruz (Treasurer LLB)
• Oscar Cosby (Communicati...
Questions?
Senior project final presentatiom
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Senior project final presentatiom

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Senior project final presentatiom

  1. 1. Eagle Consulting
  2. 2. Leadership Long Beach Accounting Policies and Procedures
  3. 3. Introduction The Project
  4. 4. • • • • • Willie Cole Fabian Georges Steven Jorgensen Jason Nick Sheri Smoody Eagle Consulting
  5. 5. The Team
  6. 6. The Mission Develop and Connect Principled Leaders to Strengthen the Community Leadership Long Beach
  7. 7. • A Non-Profit Organization Established in 1989 • Support Civic Programs • Educate and Produce Leadership • Serve the Community Leadership Long Beach
  8. 8. Organizational Chart
  9. 9. • Accounting Policies and Procedures • Bookkeeping Intern Training Procedures • Enhanced Financial Reporting • Improved Document Control • Improved Internal Controls Project Scope
  10. 10. • Accounting Policy and Procedures Manual • Document Control and Reconciliation • Intern Procedure Manual • Increased Functionality in QuickBooks Solution
  11. 11. Client Meeting
  12. 12. The Accounting Policies and Procedures Manual The Deliverables
  13. 13. The Deliverables
  14. 14. • Blueprint for Procedures and Policies • Internal Control • • • • • Accuracy Compliance Safeguard Assets Deter Fraud/Theft Transparency Accounting Polices and Procedures Manual
  15. 15. Cash In • • • • Contributions Fundraising Tuition Membership Dues Cash Out • Payments to Vendors • Staff Training and Redevelopment • Licenses/Renewal Fees • Petty Cash Cash In & Cash Out
  16. 16. • • • • • LLB Meeting Expenses Marketing and Promotional Materials Employee Reimbursements Credit Card Usage Bank Account Reconciliation Policy Organization Expenses and Reconciliation
  17. 17. • Property and Equipment • Personnel Records • End of Month/Year End Close Compliance
  18. 18. • FDIC Insured Bank • Bank Account Signatures • Donations over $50 • Correcting Mistakes on Documents Policy Statements
  19. 19. The Forms The Internal Controls
  20. 20. • Organization • Communication • Documentation • Internal Control Accounting Forms
  21. 21. ACCOUNTING FORMS LIST FORM NO. 500 501 502 503 504 505 506 507 507-A 508 509 510 511 512 513 514 515 516 FORM NAME Donation Receipt Donation Receipt Log Check Request Form Funds Allocation Form Journal Entry & Allocation Form Stop Payment/Void Check Request Form Voided Check Log Bank Reconciliation Spreadsheet Bank Reconciliation Example Petty Cash Fund Disbursement Form Petty Cash Reconcilitation Form Donated Property Form Stop Payment Authorization Letter to Bank Funds Received Log Cash Receipts Control Form Fixed Asset Log Reimbursement Request Form Mileage Expense Log Forms List REVISION DATE (IF ANY)
  22. 22. CHECK REQUEST FORM Please prepare a check to the following payee: Payee: Address: Check Amount: Acct. No. $0.00 Date Needed: Class Accounts to be Charged Amount Acct No. Class Requested by:_________________________________ Date requested: ____________________, __________ Approved by:__________________________________ Date approved ____________________, __________ TOTAL: $0.00 Please attach supporting documents. The total of these amounts must equal the check amount. Special Handling: ____________________________________________________________________________________ Other: _____________________________________________________________________________________________ form 502 ver. 1 Check Request Form Amount
  23. 23. JOURNAL ENTRY APPROVAL & ALLOCATION FORM Re ason for adjustme nt: Journal Entry: Account to Adjust De bit $0.00 Cre dit $0.00 debi ts must = credi t Re que ste d by Name : Title : Date : Approved by CPA or Tre asure r: Date : form 504 ver. 1 Journal Entry Form
  24. 24. BANK RECONCILIATION SAMPLE Bank Reconciliation Outstanding Checks For Account Checking # 1010 F & M as of : January 31, 2012 Bank Reconciliation for Account____________________ Outstanding checks are those checks written and recorded in the accounting records, but have not yet cleared the bank checking account. In other words, these checks have not yet been listed on a previous bank statement or on the current bank statement. Checks written in previous months which have not yet cleared the bank: Date of Check Check Number Check Amount 11/12/2011 8354 11/15/2011 8425 8520 8538 8588 8604 $89.12 12/31/2011 8650 + $250.00 $123.00 12/24/2011 $ $8,013.56 $45.00 12/24/2011 Check Amount $13.00 12/16/2011 Check Number $6.00 11/27/2011 Date of Check $110.00 Ending Balance on Bank Statement Dated: January 31, 2012 Adjustments to Bank Statement Balance: Add : Deposits in transit (See Note 1 below) $224.20 Subtract : Outstanding checks (Also see Note 2 below.) Adjusted Balance on Bank Statement - Balance per Accounting Records or Check Register (as of date of bank statement): 1/31/2012 $7,022.36 $1,241.20 A $1,489.60 Adjustments to be Entered in Accounting Records: Total of checks written in previous months that remain outstanding: $610.32 A Add : Additions found on bank statement that are not in accounting records: Interest from bank Check Number Check Amount Check Number Check Amount 8692 $111.34 8759 $80.00 8698 $22.00 8761 $10.00 8762 $60.00 8763 $129.95 8764 $230.00 8765 $512.00 8739 $300.00 8766 $521.00 8768 $75.00 8751 $679.00 8769 $100.00 8770 $17.00 8753 $25.00 8771 $64.75 8754 $83.23 8772 $39.00 8755 $12.00 8773 $175.00 8756 $150.00 8774 $40.00 8758 Other:__________________ Cash , credit __________________________)+ (debit $295.89 8757 $10.00 $295.00 8752 $1.26 + $1,500.00 8742 + (debit Cash , credit cash sales ) $1,500.86 $300.00 8733 $ Check Amount $69.95 8732 Check Number $138.43 8730 Check Amount $317.50 8721 Check Number (debit Cash , credit Interest Revenue ) Other: Deposit error Checks written during the month of the bank statement but have not cleared the bank: $ $59.00 Total of checks written during the month of the bank statement that remain outstanding: Grand Total of All of the Outstanding Checks as of Date Shown at Top of Form: Subtract : Deductions found on bank statement that are not in accounting records: Bank service charges (debit Miscellaneous Expense , credit Cash ) - $18.75 NSF checks (debit Accounts Receivable , credit Cash ) - $161.91 NSF check bank fees (debit __________________________, credit Cash )- $20.00 Other: _________________ __________________________, credit Cash )(debit Other: _________________ __________________________, credit Cash )(debit Adjusted Balance per Accounting Records (as of date of bank statement) $6,412.04 B $59.00 $ $1,241.20 B The bank statement is reconciled when the amounts shown as A and B are identical. $7,022.36 A+B Bank Account Reconciliation form 507-A ver. 1 Note 1. Deposits in transit are amounts received by the company as of the date of the bank statement but not yet appearing on the bank statement. Note 2. Checks written as of the date of the bank statement but not yet appearing on any bank statement (previous or current). Use Form G5 to list the check numbers and amounts of the outstanding checks.
  25. 25. REIMBURSEMENT REQUEST FORM Date Expense Amount Mileage $0.00 TOTAL EXPENSES: $0.00 Number of miles 0 Name: Approved By: Name: Signature: Signature: Date: Date: For Accounting Use Only Account # 5040-Business Relations 5070-Conferences & Training 5080-Decorations 5130-Entertainment 5170-Meals 5270-Receptions 5305-Retreat (Board) 5320-Office Supplies form 515 ver. 1 Amount Account # 5370-Travel (mileage, meals, parking) Amount Other Accounts: TOTAL (must match total above): $0.00 Expense Reimbursements
  26. 26. The Intern Manual The Bookkeeping
  27. 27. The Intern Station
  28. 28. • Posting Payments • Posting to Accounts • Assembling Deposits • Filing Documentation Intern Duties
  29. 29. • Paying Bills • Writing Checks • Posting Expenses to Correct Accounts • Filing Documentation Intern Duties
  30. 30. • Click on “Banking” • Choose “Make Deposits” • Start Typing the Customer’s Name in the “Received from” Drop Down Menu • Select the Correct Customer Step by Step Instructions
  31. 31. Screenshots of Quick Books
  32. 32. • Reports • Financial Statements • Duplication of Efforts • Reconciling Bank Accounts • Chart of Accounts Challenges of QuickBooks
  33. 33. Cost and Benefits The Payoff
  34. 34. • Cost Effective Intern/Accounting Manual • Pro Forma Cost Evaluation • Benefits to Our Customer Cost and Benefits Analysis
  35. 35. • Analyze the Existing System and Policies • Developing Best Use of Technology • Producing Printed and Digital Deliverables • The Deliverable is Intellectual Property • Existing Hardware, Software and Office Space Cost Parameters
  36. 36. • Document the Policies and Procedures • Relieves the Director of Some Accounting Responsibilities • Allows the Director More Time to Generate Revenue • A 10 percent increase or $30,000 Benefits
  37. 37. • Total Team Time to Date • 377.24 Man Hours • $65.00 Hourly Rate • $26,000 • 5 Members on the Team • 75.5 Man Hours Per Person • Annual Labor Cost of $4,900 Per Person • Polled Costing Range • $3,000 to $12,000 Plus Materials Costing
  38. 38. Actual • Immediate Benefit Upon Implementation • Zero Cost to Recover Pro Forma • Estimated Cost $9,800 • Estimated Annual Revenue Increase $30,000 • Break Even 3.92 Months Break Even Point
  39. 39. Break Even Point 3.5 0-cost 3 Axis Title 2.5 Pro Forma 2 1.5 1 Time line to recoop 0.5 0 1st month 2nd 3rd 4th 5th Axis Title Break Even Point 6th
  40. 40. Quality Assurance Testing Quality
  41. 41. Project Constraints Access Technology 5 4 3 2 1 0 Cost Time Project Constraints Access Technology 5 4 3 2 1 0 Cost Time
  42. 42. • Policies and Procedures • Intern Duties and Processes • Version Control Quality Assurance
  43. 43. Testing The Video
  44. 44. Recommendations The Future
  45. 45. • Establish Proper Interface Between QuickBooks and Bank Accounts • Interface QuickBooks and DonorPerfect • Enter Annual Budget into QuickBooks • Scale Back Existing Chart of Accounts Recommendations
  46. 46. • Implement Password Internal Controls • Implement Daily or Weekly Computer System Backup Procedures • Implement a Written Safety Program Recommendations
  47. 47. Conclusion The Evaluation
  48. 48. • Accounting Manual • Intern Manual • Benefits for LLB Conclusion
  49. 49. Limiting Scope Communication Logistics Size of the Project Utilizing QuickBooks Features
  50. 50. • Leadership Long Beach • Jeff Williams (Executive Director LLB) • Rolando Cruz (Treasurer LLB) • Oscar Cosby (Communications Director) • Colleen Briski (Devry Librarian) • Heather Burke (Devry Librarian) • Professor John Rollins & Professor Russ Walker Thank You
  51. 51. Questions?

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