Flashcards in FINAL Deck (35)
Five general responsibilities of the CO according to the Corps Accounting Guide?
Raising and securing adequate income to fund corps programs,
Safeguard all income received,
Spending all funds and resources must be done in conformity with approved budget, all existing rules and regulations and the mission of the Salvation Army
Accounting records must be up to date and accurate at all times
All required reports to be submitted on timely basis
How long do we maintain records?
What is fund account
A fund is used when a specific program is required to produce its own balance sheet. The stipulation of the funds is given by the fund resource (the donor).
What is the difference between cash and accural accounting?
a. CASH BASIS ACCOUNTING-
a. Income recorded when received
b. Expenses recorded when paid out
c. Does not conform to GAAP
b. ACCRUAL BASIS ACCOUNTING-
a. Income recognized (recorded) when earned
b. Expense recognized (recorded) when incurred (whether or not cash received or paid out)
c. Conforms to GAAP
Purpose of Accounting?
What is the purpose of accounting?
Accumulate a report on the financial information and performance.
Our Responsibility for accounting?
All income and expense must be recorded and reported and codes are used to designate what funds were used for or given for.
What is the fiscal year?
The annual fiscal year. The budget year normally goes from October 1st to September 30th.
What are board designated funds?
When it is determined that a group program should be established as a Board-Designated Group Fund, it should be set up as a cost center with its own department number and a corresponding fund balance account on the balance sheet.
Are designated funds subject to support service?
For the most part yes, depends on situation.
How much do you pay to DHQ for your support service?
What income is exempt from support service?
World Services, Self denial, War Cry Sales, Gifts in Kind, Program service fees.
What are the 5 types of donation?
Restricted, Unrestricted, Gifts in Kind, Conduit contribution, quidquopro
What are gifts in Kind?
Donated goods, non monetary.
What are contributed services?
Volunteering your time/ Giving a service instead of an item. Not gift in kind and not monetary.
At what dollar amount are you regulated to give a receipt / a letter for a donation?
To anyone who asks, but we MUST give a receipt for $75 and the IRS requires a tax receipt at $250.
How many people should count income? Especially cash?
Donations are counted with the donor, two people always present, not related.
How often do we issue cartridge receipts?
Periodically. Usually yearly for tax purposes.
How often do you make deposits?
Checks must be deposited promptly. During kettles deposits should be made daily.
How do we take money out of our corps bank account?
Only through DHQ, by check only.
Can we use a statement as backup documentation?
NO! Itemized receipts, invoices, sales slips only. No credit card slips.
Can we issue manual checks?
What needs to be included on gas receipts?
License plate, indicate gallons per price, signature, voucher.
Are volunteers Reimbursed for meals and travel expenses?
Volunteers are reimbursed for official expenses. At the amount given by the minute.
Who files quarterly and annual payroll reports to government agencies?
How much is remitted to DHQ/Payroll Company?
How does an officer receive reimbursements for dry cleaning or child care services?
a. Officers may be reimbursed for household help upon receipted invoice attached to a voucher signed by the officer (Minute 25N)
What is petty cash?
Provision is made for a petty cash fund to pay small routine or incidental expenses. This is the only acceptable way to pay expenses other than by checks issued on approved bank accounts. It is improper and unacceptable to use any income that has not been deposited to pay expenses.
CAG , Section VI
Concerning petty cash Who are the checks written to?
Check made payable to individual responsible for petty cash. Only one person should have access to it.
What is a bank reconciliation?
All bank accounts must be reconciled with the balances shown in the general ledger cash accounts. This should be done each time the bank statement is released by the bank. This is usually done once at the end of each month.