Budget and Finance Policies and Procedures

Athens Jewish Film Festival Incorporated (AthensJFF)

Definitions:

EC—Executive Committee

FC—Finance Committee

BOD—Board of Directors

AthensJFF—Athens Jewish Film Festival Incorporated

Accounting Method

            AthensJFF will use the accrual basis of accounting that recognizes revenues when they have been earned and expenses when they have been incurred.

Acronyms

            AthensJFF will process all checks and other forms of payments to the order of the full legal name of the payee.

Amendments to Policies and Procedures

            AthensJFF recognizes that the policies noted in the Budget and Finance Policies will require periodic changes as changes in the business and the organization occur.  The procedure for modifying, deleting, or adding policy will be as follows:

Board members are encouraged to suggest policy modifications, deletions, or additions, by submitting a written request or draft policy.

Forward the request or draft policy for the FC for review.

The FC will review, make changes and will make a recommendation regarding the request to the BOD.

The BOD must approve the change in policy.

If approved the modification, deletion, or addition of the policy will be appropriately placed in the AthensJFF Budget and Finance Policies as approved.

Bank Reconciliations.

AthensJFF will request a copy of bank statements be e-mailed directly to the Treasurer, who will do an initial review of checks and deposits that cleared during the prior month and direct any unusual posting to the Secretary in a timely manner so that monthly statements can be processed not more than 20 days past the close of the month.

Bank reconciliations(s) will be included with the internal financial statements and will include documentation of voided checks.

Bank Statement Mailings

AthensJFF will request a copy of all bank statements be e-mailed to both the Treasurer and the Secretary.  The treasurer has the responsibility of reviewing checks that have cleared the bank and of investigating any unusual transactions plus communicating any necessary posting to the Secretary.  The Secretary has the responsibility of communicating with the Treasurer as needed to complete monthly reports following bank records which include money in, money out, cash on hand, accounts payable, pledges receivable. Bank statements are provided online to the Treasurer and the Secretary.

Bid Requirements

The Board and Staff shall exercise due diligence on behalf of the AthensJFF when contracting with vendors for services and goods.  Vendor selection shall at all times be made with the goal of receiving the best possible quality for the lowest possible cost to AthensJFF.

Professional services:  Professional services, including CPA firms and law firms will be evaluated every three years by the EC or their designee(s) and a recommendation brought to the BOD after evaluation.

Purchases of $500 or less will be approved by the Treasurer.

Purchases over $500 will be recommended by the Treasurer and approved by the EC.

Bids from AthensJFF Board Members for Services or Goods

In the event that a current Board Member indicates intent to place a bid for a service or goods contract with AthensJFF, the Board and Staff shall implement the following procedures:

Board of Directors’ Examination of Records

AthensJFF will allow access for individuals currently serving on the BOD to financial records upon request.  The 990 form will be posted on the AthensJFF website.

Bookkeeping

            During the first two years of operation, the Treasurer and Secretary will be responsible for bookkeeping issues.

Budget                       

AthensJFF will maintain and operate from an annual budget.  A preliminary budget will be compiled by the FC with recommendations from the EC.  The preliminary budget will be submitted to the BOD by May30 of the year prior to the budget year. A reviewed preliminary budget will be available to the BOD at least one month prior to the end of the fiscal year.  Any member of the BOD can offer suggestions based on strategic plans for the next year.  These suggestions should be submitted in writing to the Treasurer.  The FC will make every effort to accommodate timely budget suggestions, but it will make final budget recommendation at the June BOD meeting for its approval. 

Capitalization Cutoff Points.

AthensJFF will expense assets in the period purchased if these assets cost $500 or less individually.   Assets costing in excess of $500 =individually will be capitalized and depreciated in accordance with depreciation recommended by the CPA.

Resolution for Contractual Authority

AthensJFF will approve contractual responsibility via a Resolution of Contractual Authority to the President who will have the authority to bind the organization into leases or other major business agreements.  As the office of President rotates among individuals, a new Resolution will be approved by the BOD.  The old resolution will be null and void.  Both will require action by the BOD.

Certificate of Insurance.

It is the policy of AthensJFF to be as risk free as possible, but carry as little expense as possible.  To this end, the President with the assistance needed by the EC will consider the circumstances of each event and determine whether a certificate of insurance is necessary for that event.  A statement regarding this decision will be placed in the file for that event.

Check Disbursements and Check Signers

It is the policy for the President to authorize requested disbursements while maintaining a separation of duties for security of funds.  In the absence of the President, the Vice-President will authorize disbursements.  The following policies apply to disbursements:

With the exception of small cash expenditures that are handled by approved reimbursements, all expenditures will be handled by check.  Because of the need for internal control, the following rules concerning check disbursements should always be followed.

1. Unused checks should be pre-numbered, stored under lock and key, and requested formally.
2. Each check disbursement will require an approved account payable invoice or an expense reimbursement form.  Persons approving invoices and other expense forms should never sign the resulting check even it they are check signers.
3. The EC shall designate and authorize check signers.  Up to four members of the BOD will be designated and authorized to sign checks, one of those being the Treasurer.  This designation should be accomplished by resolution of the EC and changed by resolution as members rotate on and off the BOD.

Check Endorsements/Stamp for Receipts

AthensJFF Secretary will date stamp and endorse receivable checks on the day of receipt.  The secretary will make copies of the original checks and keep such copies in the records.  The endorsement stamp will indicate at the least the following:  FOR DEPOSIT ONLY to the Athens Jewish Film Festival Incorporated account.

Check Preparation and Mailing for Disbursements.

AthensJFF will prepare and mail disbursement checks for AthensJFF grants, vendor, expense reimbursements or other payments on a timely basis after the invoice or request for payment has been received.

Contract Signing Authority for Budgeted items.

AthensJFF will grant authority to sign contracts for operating budgeted items to the President, Vice-President, Treasurer or Secretary as long as the financial implications of the contract are included in the organization’s budget, excluding leases and major business agreements.

Contributions

AthensJFF Secretary will send thank-you letters on AthensJFF stationary acknowledging all contributions, regardless of the amount.  The thank-you cards/letter will indicate the dollar amount contributed.

Control over Receipts

AthensJFF Secretary will control incoming mail.  Checks received will be date stamped and endorsed as encountered.  Checks and receipts will be copied, and copies retained by the Secretary under secure conditions until the annual audit is complete for that year.  Copies of private information on individuals such as checks and credit card account numbers will be kept under lock and key.  Copies will be retained until the annual audit and then shredded. 

At least once weekly, the Secretary shall turn over checks and receipts to the Treasurer, who will organize a deposit of all checks and receipts. A copy of the bank receipt for the deposit will be retained. Summary information of these transactions such as the totaled accounting software printout, the total deposit copy, and the bank receipt will be retained for tax purposes as required by law. 

Funds collected at special events and other occasions will be counted, recorded and deposited at the conclusion of the event.  Two designees of the BOD will make the deposit together.

After the annual audit is completed, all copies of receipts documents from individuals (checks) will be shredded to maintain security for donors’ payments.

Donated Property

AthensJFF will record the value of donated property among its fixed assets if the value of the property exceeds the capitalization cutoff point of more than $500 in accordance with the following guidelines:

Value                          Policy

$500-$2,500                Capitalize in accordance with value stated in contributor’s letter

Over $2,500                Capitalize in accordance with appraised value.

Donated Services

AthensJFF will record the value of donated services received, based upon donor’s evaluation, and acknowledge such services and their dollar amount in writing.

Expense Reimbursements

AthensJFF will reimburse certain business expenses based on an accountable reimbursement plan per IRS regulations.  Business expenses include travel and miscellaneous expenses.  Use federal per diem guidelines for limits unless otherwise approved by the EC.  Reimbursement requests must be approved by the FC.

Financial Statement Preparation and Distribution

The Treasurer will supervise the preparation and distribution of semi-annual financial statements.  The minimum number of statements will include the statement of financial position (balance sheet) and the statement of activities (income and expense statement).  Other statements may be requested by the EC or the FC.  These statements will be prepared and distributed within 30 days after the close of the month.  The statements will be distributed to the EC and the BOD.

Independent Contractors

AthensJFF will maintain a file on each individual it has classified as an independent contractor and to whom it has issued or may issue an IRS Form 1099 Misc. per IRS regulations.  The file will contain an IRS From W-9, an Independent Contractor Agreement, and a copy of all IRS 1099 Misc Forms issued to that contractor.

IRS Forms:  Form 990

AthensJFF will allow public access to IRS Form 990.  This access will be provided at the organizations’ website.

IRS Forms: Form 1099

AthensJFF will complete IRS Form 1099 Misc. for all individuals who are independent contractors receiving $600 or more from the organization for goods or services.  A copy of the IRS form 1099 will be kept in the independent contractor’s file. 

Non-distribution of Earnings

AthensJFF will prohibit any distributions of earnings to members in general, members of the BOD, committee members and chairs, and other volunteers.  Although these individuals can be reimbursed for reasonable travel expenses and other operations expenses, AthensJFF will not encourage that practice.  Any reimbursement of expenses will follow reimbursement policies just as if the volunteer were an employee.  Volunteers should ask their tax advisor whether it would be better to count any expenses they encounter in helping AthensJFF as charitable donations on their tax return.

Non-sufficient Funds Checks

AthensJFF will include accounts receivable checks returned by the bank because of non-sufficient funds in a Non-sufficient Funds account in the accounting records.  If the checks in question are eligible for redeposit, the subsequent deposit will reduce the receivable account accordingly.  AthensJFF shall request the individual pay NSF fees charged, if any.

Segregation of Duties

AthensJFF will ensure an adequate segregation of responsibilities with regard to all aspects of the financial operations of the organization to include but not be limited to receipts, bank deposits, bank statement reconciliations, invoice approval, check preparation, check signing, and expense reimbursement approvals. 

Unrelated Business Income tax (UBIT)

AthensJFF will pay UBIT on the excess of revenues over expenses on taxable activities.  These activities will be clearly classified and designated in the financial records to provide adequate documentation in the event of an IRS audit.

AthensJFF will file IRS Form 990-T to report unrelated activities.  Form 990-T is considered confidential and is not available for public inspection.

Voided Checks

AthensJFF will maintain a Voided Checks file. If voided checks are physically available, they will be marked VOID and filed in the organization’s voided checks file.

If voided checks are not physically available, the organization’s copy of the bank’s stop-payment order will be filed in a stop-payment order file.

Absence of Officer

In the event that the Treasurer or Secretary is out of town and financial business must be conducted, any role specified above may be filled by any of the four officers. A written report of the transaction so conducted must be transmitted to the Treasurer or Secretary, as appropriate, as soon as possible after the transaction, and must be retained in the financial records.