Eagle Consulting

Leadership Long Beach

Accounting Policies and Procedures

IntroductionThe Project

Eagle Consulting

• Willie Cole• Fabian Georges• Steven Jorgensen• Jason Nick• Sheri Smoody

The Team

Leadership Long Beach

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 Community

Organizational Chart

Project Scope

• Accounting Policies and Procedures

• Bookkeeping Intern Training Procedures

• Enhanced Financial Reporting

• Improved Document Control

• Improved Internal Controls

Solution

• Accounting Policy and Procedures Manual

• Document Control and Reconciliation

• Intern Procedure Manual

• Increased Functionality in QuickBooks

Client Meeting

The Accounting Policies and Procedures ManualThe Deliverables

The Deliverables

• Blueprint for Procedures and Policies

• Internal Control• Accuracy• Compliance• Safeguard Assets• Deter Fraud/Theft• Transparency Accounting Polices

and Procedures Manual

Cash In & Cash Out

Cash In

• Contributions• Fundraising• Tuition• Membership

Dues

Cash Out

• Payments to Vendors• Staff Training and

Redevelopment• Licenses/Renewal

Fees • Petty Cash

Organization Expenses and Reconciliation

• LLB Meeting Expenses• Marketing and Promotional Materials• Employee Reimbursements• Credit Card Usage• Bank Account Reconciliation Policy

Compliance

• Property and Equipment

• Personnel Records

• End of Month/Year End Close

Policy Statements

• FDIC Insured Bank

• Bank Account Signatures

• Donations over $50

• Correcting Mistakes on Documents

The FormsThe Internal Controls

Accounting Forms

• Organization

• Communication

• Documentation

• Internal Control

Forms List

FORM FORM REVISIONNO. NAME DATE (IF ANY)500 Donation Receipt501 Donation Receipt Log502 Check Request Form503 Funds Allocation Form504 Journal Entry & Allocation Form 505 Stop Payment/Void Check Request Form506 Voided Check Log507 Bank Reconciliation Spreadsheet

507-A Bank Reconciliation Example508 Petty Cash Fund Disbursement Form509 Petty Cash Reconcilitation Form510 Donated Property Form511 Stop Payment Authorization Letter to Bank512 Funds Received Log 513 Cash Receipts Control Form514 Fixed Asset Log515 Reimbursement Request Form516 Mileage Expense Log

ACCOUNTING FORMS LIST

Check Request Form

Please prepare a check to the following payee: Payee: Check Amount: $0.00 Date Needed:

Address:

Acct. No. Class Amount Acct No. Class Amount

TOTAL: $0.00

form 502 ver. 1

CHECK REQUEST FORM

Accounts to be Charged

Requested by:_________________________________Date requested: ____________________, __________

Approved by:__________________________________Date approved ____________________, __________

Please attach supporting documents. The total of these amounts must equal the check amount.Special Handling: ____________________________________________________________________________________Other: _____________________________________________________________________________________________

Journal Entry Form

Reason for adjustment:

Journal Entry:Account to Adjust Debit Credit

$0.00 $0.00 debits must = credit

Requested byName:

Title:

Date:

Approved byCPA or Treasurer: Date:

form 504 ver. 1

JOURNAL ENTRY APPROVAL & ALLOCATION FORM

Bank AccountReconciliation

BANK RECONCILIATION SAMPLE

Date of Check Check Date of Check CheckCheck Number Amount Check Number Amount

11/12/2011 8354 $110.00 $

11/15/2011 8425 $6.00

11/27/2011 8520 $13.00

12/16/2011 8538 $45.00

12/24/2011 8588 $123.00

12/24/2011 8604 $89.12

12/31/2011 8650 $224.20

$610.32 A

Check Check Check Check Check Check Check CheckNumber Amount Number Amount Number Amount Number Amount

8692 $111.34 8759 $80.00 $ $

8698 $22.00 8761 $317.50

8721 $10.00 8762 $138.43

8730 $60.00 8763 $69.95

8732 $129.95 8764 $300.00

8733 $230.00 8765 $512.00

8739 $300.00 8766 $1,500.00

8742 $521.00 8768 $75.00

8751 $679.00 8769 $295.00

8752 $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 $295.89

8757 $40.00

8758 $59.00

$6,412.04 B

$7,022.36 A+B

Bank Reconciliation Outstanding Checks

For Account Checking # 1010 F & M as of : January 31, 2012

Outstanding checks are those checks written and recorded in the accounting records, but have not yetcleared the bank checking account. In other words, these checks have not yet been listed on a previousbank statement or on the current bank statement.

Checks written in previous months which have not yet cleared the bank:

Total of checks written in previous months that remain outstanding:

Checks written during the month of the bank statement but have not cleared the bank:

Grand Total of All of the Outstanding Checks as of Date Shown at Top of Form:

form 507-A ver. 1

Total of checks written during the month of the bank statement that remain outstanding:

$8,013.56

+ $250.00

- $7,022.36$1,241.20 A

$1,489.60

Interest from bank (debit Cash , credit Interest Revenue ) + $1.26

Other: Deposit error (debit Cash , credit cash sales ) + $10.00

Other:__________________(debit Cash , credit __________________________)+

$1,500.86

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: _________________(debit __________________________, credit Cash )- $59.00 Other: _________________(debit __________________________, credit Cash )- $

$1,241.20 B

Bank Reconciliation for Account____________________

Ending Balance on Bank Statement Dated: January 31, 2012Adjustments to Bank Statement Balance:

Add : Deposits in transit (See Note 1 below)

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

Adjustments to be Entered in Accounting Records:

Add : Additions found on bank statement that are not in accounting records:

Subtract : Deductions found on bank statement that are not in accounting records:

Adjusted Balance per Accounting Records (as of date of bank statement)

The bank statement is reconciled when the amounts shown as A and B are identical.

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.

Expense Reimbursements

Date Expense Amount Mileage $0.00

TOTAL EXPENSES: $0.00

Number of miles 0

Approved By:Name: Name:

Signature: Signature:

Date: Date:

For Accounting Use OnlyAccount # Amount Account # Amount

5040-Business Relations 5370-Travel (mileage, meals, parking)5070-Conferences & Training5080-Decorations 5130-Entertainment Other Accounts:5170-Meals5270-Receptions5305-Retreat (Board)5320-Office Suppliesform 515 ver. 1 TOTAL (must match total above): $0.00

REIMBURSEMENT REQUEST FORM

The Intern ManualThe Bookkeeping

The Intern Station

Intern Duties

• Posting Payments

• Posting to Accounts

• Assembling Deposits

• Filing Documentation

Intern Duties

• Paying Bills

• Writing Checks

• Posting Expenses to Correct Accounts

• Filing Documentation

Step by Step Instructions

• Click on “Banking”

• Choose “Make Deposits”

• Start Typing the Customer’s Name in the “Received from” Drop Down Menu

• Select the Correct Customer

Screenshots of Quick Books

Challenges of QuickBooks

• Reports

• Financial Statements

• Duplication of Efforts

• Reconciling Bank Accounts

• Chart of Accounts

Cost and BenefitsThe Payoff

Cost and Benefits Analysis

• Cost Effective Intern/Accounting Manual• Pro Forma Cost Evaluation • Benefits to Our Customer

Cost Parameters

• 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

Benefits

• 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

Costing

• 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

Break Even Point

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

1st month 2nd 3rd 4th 5th 6th0

0.5

1

1.5

2

2.5

3

3.5

Break Even Point

0-cost Pro Forma

Time line to recoop

Axis Title

Axis Title

Quality AssuranceTesting Quality

Technology

Time

Cost

Access 0

5

Project Constraints

Technology

Time

Cost

Access 0

5

Project Constraints

Quality Assurance

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

TestingThe Video

RecommendationsThe Future

Recommendations

• Establish Proper Interface Between QuickBooks and Bank Accounts

• Interface QuickBooks and DonorPerfect

• Enter Annual Budget into QuickBooks

• Scale Back Existing Chart of Accounts

Recommendations

• Implement Password Internal Controls

• Implement Daily or Weekly Computer System Backup Procedures

• Implement a Written Safety Program

ConclusionThe Evaluation

Conclusion

• Accounting Manual

• Intern Manual

• Benefits for LLB

Size of the Project

Utilizing QuickBooks Features

Limiting Scope

CommunicationLogistics

• 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

Questions?