Bank Accounts and Check Procedures

Purpose

This policy governs the type of bank accounts used and the rules around check management and check signing.

Duration

This policy is permanent.

Policy

Section 1. Bank Accounts

1. The Director of Finance and Operations has the authority to open a business checking account on behalf of ANCS to be used to hold the school's assets.
2. The Director of Finance and Operations has the authority to enter into an agreement with a bank or other federally insured financial institution once the Governing Board has adopted a formal resolution at a Governing Board meeting held in accordance with its bylaws designating the bank for the school to use for its financial transactions. Once the resolution has been adopted, the Director of Finance and Operations has the authority to initiate an agreement with the selected financial institution. This agreement should be signed by the Executive Director and the Chair of the Finance and Operations Committee.

Section 2. Checks

1. Drafting Checks. Any authorized check drafted on the school’s designated bank account shall follow these guidelines:
   1. Checks of $0-$9,999 require a single signature of an approved check signer per the adopted Annual Financial Resolution.
   2. Checks of $10,000-$24,999 require two signatures of approved check signers per the adopted Annual Financial Resolution.
   3. Expenditures in excess of $25,000 require approval by the Finance and Operations Committee.
   4. Expenditures in excess of $25,000 require approval by the ANCS Governing Board.
   5. No checks shall be signed prior to the check being completed in its entirety. Signatures on blank checks are strictly prohibited.
2. Checks Received. Checks received shall be endorsed "for deposit only," and deposits should be made weekly by someone other than the person who prepared the deposit. See Cash and Income Management.
3. Check Requests. Services or products rendered, reimbursement requests with original receipts, or mileage reimbursements may receive payment with a check. For more information, see Reimbursement and Disbursement.
   1. All check requests shall be submitted to the Director of Finance and Operations for processing.
   2. All check request forms shall be maintained by the Director of Finance and Operations.
4. Vendor Check Requests. Vendor Contracts and Purchasing Limits.
5. Manual Checks. The Nutrition Director will use manual checks for COD vendors.
6. Petty Cash. See Cash and Income Management for more information.
7. Refunds. In situations where, for example, a student is unable to attend a planned field trip for which the parents/guardians have pre-paid, and the teacher or program coordinator elects to refund the amount paid for the trip, they may do so by using a Purchase/Disbursement Request form.
8. Checks payable to cash for any reason are prohibited.

Section 3. Mail Procedures

1. The receptionist receives the mail and then delivers it to the Business Office.
2. An accounting staff member should receive the checks from the person opening the mail.

Section 4. Bank Reconciliation

1. There will be segregation of duties between individuals responsible for cash receipts and cash disbursement and the individual(s) responsible for bank reconciliations.
2. The Director of Finance and Operations or designee is responsible for bank reconciliations at a minimum of once a month. Bank statements should be delivered to the Director of Finance and Operations unopened.
3. Each bank statement, assets, and liabilities shall be reconciled to both the checkbook and the general ledger.

Section 5. Executive Director Bank Review

1. The Executive Director will maintain a separate bank login and password for all bank accounts.
2. The Executive Director will maintain a log book documenting the review of bank activity.
3. This log book will become part of the record submitted for the annual audit.

Section 6. Credit/Debit Card Procedures

2. It is the policy of ANCS that credit card use shall be limited and only the following employees or Governing Board members are authorized to use credit cards:
   1. Campus Principals, Maintenance Supervisor, Director of Finance and Operations, or designee
   2. Executive Director
3. Credit cards shall be used for school business expenditures only.
4. Credit cards may not be used for personal purchases and/or cash transactions and shall be maintained with the highest level of security.
5. All credit card purchases must be approved by the Campus Principal/Executive Director.
6. When returning the card, the Reimbursement/Check Request/Credit Card Transaction form must also be submitted with "Credit Card Transaction" circled or highlighted.
7. This form must be accompanied by an itemized receipt or other type of invoice for the charge and the applicable budget the charge goes against.
8. ANCS does not use debit cards for the general operating funds.
9. Aftercare, Nutrition, and the PTCA may use debit cards for purchases, but the debit cards may not be used with a PIN and must be structured to require a signature.

Section 7. Transfer of Information

1. If the individual serving as the Director of Finance and Operations ends his or her term with the Governing Board/employment with ANCS or is terminated by the school or otherwise removed from his or her duties, he or she shall immediately give the school management all necessary passwords and other related information. Failure to disclose pertinent information or passwords may result in withholding of final paycheck.
2. The school will change the passwords and other security information once the individual serving as the Director of Finance and Operations or Executive Director ends his or her employment with the school.

Resources

• Reimbursement/Check Request/Credit Card Transaction form
• Cash and Income Management
• Reimbursement and Disbursement
• Vendor Contracts and Purchasing Limits

Approval and Review

Approved	Effective	Last Review	Next Review
06/16/2015	07/02/2015	09/2024	09/2026