Page 290 - Washington Nonprofit Handbook 2018 Edition

y Handling/custody of cash and receipts

y Recording accounting transactions

y Reconciling accounting records

y Accessing the donor database

• Disbursements (Vendors, Credit Cards, Reimbursements, Payroll)

y Approval/authorization of all the categories listed above

y Recording transactions in the accounting system

y Authorizing disbursements (including check signing/electronic
funds transfer)

y Handling/custody of checks

y Reconciling accounting records

When you cannot fully segregate duties due to small staff size or cost
considerations, consider implementing mitigating or compensating controls.
Examples include:

• Managers or board members review financial statements and other
detailed reports on a regular and timely basis;

• Managers or board treasurer review reports of the detailed
transactions;

• Managers select transactions for review of supporting documents;

• Managers periodically conduct counts of physical inventory,
equipment, and other assets and compare them with the accounting
records;

• Managers from time to time review reconciliations of account balances
such as cash, A/P, and A/R, or perform them independently;

Note: “Manager” is defined as someone other than the person with the
concentration of duties who is also:

• Knowledgeable about the subject matter;

WASHINGTON NONPROFIT HANDBOOK -279- 2018