TALLER SAN JOSE HOPE BUILDERS (10)

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35 HB Fiscal Polices&Procedures Section 1 Oversight A. Overview This section applies to the budgeting, cash management, internal and external financial reporting, and audit processes. The annual operating budget is a managerial tool HB staff and board use to facilitate decisions regarding the allocation of resources. Financial reports are managerial tools used to communicate the financial activities of the organization to managers, the Board, and outside organizations. B. Policies 1. Maintain a comprehensive chart of accounts and review it annually (including Cost Centers). Mark any inactive accounts/cost centers as such, adding new accounts only when necessary. 2. Produce a budget on an annual basis and obtain Board approval prior to end of fiscal year. Any significant increases or decreases to the budget require additional approval. 3. Forecast cash balances on a regular basis and take appropriate steps to ensure the availability of liquid reserves sufficient to meet ongoing obligations. 4. Enter into relationships with banking institutions only with appropriate authorization. 5. Reconcile bank accounts in a timely manner, led by someone who is not an authorized check signer. 6. Produce bi-monthly financial reports for management and the Board on a timely basis to ensure proper controls of the accounting process, and to facilitate effective monitoring and oversight. C. Process Description Chart of Accounts and Cost Centers The chart of accounts is a listing of all the accounts that make up HB`s accounting system, providing the framework for defining every transaction in the organization. Additional segmentation in the accounting system is used in conjunction with the chart of accounts to capture all relevant information for each revenue and expense transaction. Each year, HB reviews and updates its chart of accounts and system for coding revenues and expenses with the goal of increasing accuracy, efficiency, and effectiveness. DEFINITIONAccounting Segments SEGMENT A listing of all the natural . Assets and Liabilities Chart of Accounts accounts that make up • Net Assets the accounting system. • Revenue and Expenses • Segmentation by type of a Without Donor Restriction Fund funding, and availability With Donor Restriction of funds for use. • Segmentation to capture relevant information for • Program Organizational Functions each revenue and expense . Administration transaction by functional • Fundraising area.