System of Internal Controls

Purpose

This policy outlines the internal controls used to ensure finances are maintained with the highest degree of security.

Duration

This policy is permanent.

Policy

Section 1. Budgetary Controls

  1. Department, program, and function budget stakeholders are made aware of the amount of their budget allowance that was included in the final ANCS budget as approved by the Governing Board.
  2. It is the responsibility of each budget stakeholder to monitor their expenditures and ensure that they do not exceed their budget allotment. Each stakeholder should maintain their own records of expenditures and any related receipts.
  3. Stakeholders may receive a monthly expenditure report from the Director of Finance and Operations indicating what has been recorded within the financial records, which they should then compare to their records and discuss any noted discrepancies with the Director of Finance and Operations.
  4. The Executive Director and Campus Principals should also review and monitor the budgets of their direct report stakeholders and ensure that they are adhering to budget allowances.
  5. The Director of Finance and Operations will communicate with the Executive Director and Campus Principals regarding stakeholders exceeding budget allowances.

Section 2. Expenditure Approval

  1. Stakeholders possess a great deal of discretion over the use of funds for classroom supplies (consumables like markers, folders, glue) and instructional materials (books, DVDs, etc.). However, faculty and staff expenditures must be pre-approved by the Executive Director, Campus Principals, or Content Coordinators.
  2. Director of Finance and Operations PTCA expenditures must be approved by the PTCA Co-President(s) or Treasurer.
  3. Communications & Advancement Committee expenditures must be approved by the Governing Board Communications & Advancement Committee Chair and Executive Director.
  4. The Executive Director, Director of Finance and Operations, Campus Principals, and Assistant Campus Principals may authorize routine purchases and expenditures that are within the approved budget for their areas of responsibility.
  5. For expense reimbursement requests wherein the stakeholder is the submitter and the payee, the stakeholder will need to obtain the approval signature of their immediate supervisor or the Executive Director.
  6. Approvers should approve only purchase or expenditure request forms to which appropriate supporting documentation has been attached. See Reimbursement and Disbursement.

Section 3. Business Office Controls – Segregation of Duties

  1. Disbursement requests are pre-approved by stakeholders and their supervisors (see Expenditure Approval).
  2. Receipts are prepared and submitted by individuals external to the Business Office.
  3. All check signers are external to the Business Office with the exception of the Director of Finance and Operations and affirmed each fiscal year in the Financial Resolution and through a Governing Board vote.
  4. Payroll is approved by the Executive Director or designee and transmitted to a third-party processor.
  5. Bank accounts are reconciled monthly by the Director of Finance and reviewed monthly by the Executive Director.  Additionally, the reconciliation will be included in the monthly financial package sent to the Finance and Operations Committee.

Section 4. Technology Controls

  1. Passwords are changed periodically.
  2. Financial reporting software applications provide an audit trail of changes to key master files.
  3. Financial software is maintained on a dedicated server.
  4. Backups are performed no less than once per week on the financial database.
  5. Each user of a financial system should maintain their own unique login and should not be shared with any other person.

Resources

Approval and Review

Approved

Effective

 Last Review

Next Review
06/16/2015 07/02/2015 09/2024 09/2026