LZACC Financial Policies and Procedure Manual
The Lake Zurich Area Chamber of Commerce (Chamber) is committed to responsible ﬁnancial management. The entire organization including the Board of Directors, Executive Committee, Standing Committees, President and staﬀ will work together to make certain that all ﬁnancial matters of the organization are addressed with care, integrity, and in the best interest of the Chamber.
The policies and procedures contained in this manual are designed to:
A. Financial Controls and Operating Procedures
a. Executive Director:
i. Is responsible for the bookkeeping and banking of the Chamber’s ﬁnancial activities and for the timely and accurate reporting of these transactions to the designated responsible parties.
ii. May initiate fund transfers only with the express written authorization from the President or Executive Committee.
iii. Opens and reviews Bank Statements
iv. Receives and prepares deposits
b. Signatories on all accounts are: Executive Director, President and Treasurer. Per the bylaws, checks over $1,000 require two signatures with exception to rent checks which exceed this amount but are pre-approved by the Board and noted in the lease agreement.
c. The Audit Committee:
i. At the request of the Board of Directors, shall hire, set compensation, and oversee the auditor’s activities.
ii. Ensures that the auditing ﬁrm has the requisite skills and experience to carry out the auditing function for the Chamber and that its performance is carefully reviewed.
iii. Supervises the audit and reviews the audit report and the annual income tax return (Form 990) prior to the Board of Directors’ report.
iv. Sets rules and processes for complaints concerning accounting and internal control practices.
v. Unless speciﬁcally authorized by the Executive Committee, the selected audit ﬁrm may not perform non-audit services for the Chamber so as to prevent a conﬂict of interest.
B. Financial Reporting
a. General Guidelines
i. Accounts will be maintained and reports prepared on a modiﬁed cash basis of accounting, as approved by the Board of Directors. Revenues are recorded when received. Expenditures are recorded when checks are prepared.
ii. Accounts receivable are deemed uncollectible and charged against current operations if the balance owed is greater than 60 days past due. Bad debt expenses must be approved by the Board of Directors.
i. Financial reporting period is Calendar Year.
ii. Annual budgets are prepared by the Executive Director, President and Treasurer with the Finance Committee in consultation. The Board of Directors will approve the annual budget no later than December each year.
iii. Monthly Financial Reports including budget variances are presented by the Treasurer to the Executive Committee and Board of Directors with an explanation of variances greater than 10%
iv. Aged account receivable balances must be reported to the Board of Directors on a monthly basis.
c. Internal Controls and Conﬁdentiality
i. The Executive Director is responsible for maintaining a system of internal controls adequate to safeguard Chamber assets.
ii. The Chamber shall safeguard the privacy of ﬁnancial records pertaining to its staﬀ by assuring that only the Executive Director and President have access to payroll information.
iii. The Chamber shall safeguard the security of its checking account by keeping all blank checks locked in the Chamber’s oﬃce, ﬁre-proof ﬁling cabinet/safe and by only allowing the Executive Director to possess online access to Chamber accounts.
iv. The Chamber shall maintain the security of any passwords for online banking in a secure location accessible only to the Executive Director and President.
v. The Chamber shall safeguard the security of member credit card information by blacking out credit card detail from membership applications and shredding other documents with Credit Card information.
vi. The independent auditor will have access to all detailed general ledger reports and will include any areas of concern in the annual report to the Finance Committee.
vii. All manual journal entries will be reviewed and approved by the Executive Director on a monthly basis.
viii. Bank statements are promptly reconciled on a monthly basis. Any discrepancies are immediately reported to the Executive Director.
ix. Chamber ﬁnancial records including bank statements, tax ﬁlings, ﬁnancial reports, and invoices are retained in accordance with the Records Retention Policy in a safe and secure area. Audits are indeﬁnitely retained.
x. All member and ﬁnancial data shall be backed up electronically on a daily basis and regularly stored in an oﬀsite secure location.
C. Financial Procedures
a. Cash Receipts Procedure: The following procedure applies to any incoming cash/checks received by the Lake Zurich Area Chamber of Commerce. These monies include, but are not limited to: membership dues, contributions, and event payments, ﬁling fees, sponsorship payments and miscellaneous invoices. The responsibility for controlling cash receipts and their subsequent deposits is a shared responsibility of the administrative staﬀ including the Executive Director.
i. The person opening the mail does the following: all monies received are bank-stamped “for deposit only” posted in QuickBooks, then placed in the bank deposit bag until deposit is recorded and taken to bank.
ii. The Executive Director does the following: records the cash/checks in the general ledger, creates a bank deposit slip.
iii. The Treasurer does a comparison of the check log to the general ledger on a periodic basis.
iv. Bank deposits are made by the Executive Director.
v. The bank deposit receipts are ﬁled with The Chamber’s copy of the deposit slip.
b. Cash Receipts at Events:
i. The staﬀ person responsible for the event must request a cash bag from the Executive Director no later than three days prior to the event. The staﬀ person needs to provide the cash breakdown needed to the Executive Director so the proper change is available at the event. The staﬀ person must also present dated receipts for the event.
ii. The event staﬀ is responsible for manning the payment table during the event. There must be a staﬀ person handling the payments or supervising volunteers at all times.
iii. After the event, it is the event staﬀ person’s responsibility to count the payments and beginning cash bank and preparing deposits.
iv. If credit card payments are to be accepted at an event, the event staﬀ person is responsible for the accuracy of the number, expiration date, security code, telephone number and billing statement zip code. This information is to be secured until the payment can process with the credit card processing company and then the credit card numbers are shredded.
c. Payroll Procedures:
i. Timesheets for hourly employees are signed by employees and submitted to the Executive Director for approval on the 10th and 25th day of the month.
ii. Payroll checks and payroll taxes are prepared, issued through direct deposit and dated the 15th and last day of each month for all employees.
iii. Upon completion of each cycle, all journal entries are posted to the General Ledger.
iv. Payroll taxes are deposited electronically within three business days of the eﬀective date of payroll by the payroll processing company contracted by the Chamber.
v. Quarterly payroll tax returns are prepared and submitted on a timely basis by the payroll processing company contracted by the Chamber.
d. Invoice Payments and Employee Expenses:
i. Checks are, as a general rule, written weekly and on the last work day of the month.
ii. Invoices should be submitted as soon after receiving them as possible, but not later than three working days in advance of expected payment.
iii. All invoices must be initialed and submitted indicating they are approved for payment by the staﬀ person or committee member who incurred the expense. Only the Executive Director, President or Treasurer may approve invoices for payment.
iv. Employee expense reimbursements are made on a weekly basis or as needed. Any expenditure for meals, toll and other cash must be accompanied by a receipt. Mileage is to be noted at the time it is accumulated.
v. Receipts for expenses by staﬀ should be submitted periodically as expenses exceed $10.00. Expenses will be reimbursed every week unless special approval is obtained from the Executive Director. Receipts must be submitted to the Executive Director at least two working days in advance of expected payment.
vi. No employee should ever promise a vendor that payment will be made upon delivery or within one or two days. Vendors need to be advised that The Chamber has a regular payment schedule. Most invoices will be paid within 14 days of receipt by the Executive Director.
e. Investment Monitoring and Control Procedures
i. The Investment Advisor shall present to the Finance Committee, a report at least quarterly that lists all assets held, values for each asset and all transactions aﬀecting assets within the portfolio, including additions and withdrawals.
ii. The Finance Committee of the Chamber shall present to the Board of Directors of the Chamber of Commerce, at least annually, a report that lists all assets held, values for each asset and all transactions aﬀecting assets within the portfolio, including additions and withdrawals. In conjunction with the report, the Finance Committee shall also annually present to the Chamber Board its review of the investment Policy and any recommendations for modiﬁcation.
f. Purchasing & Vendor Procedures
i. Contracts between The Chamber and any vendor may be signed by the Executive Director or the President. Staﬀ is responsible for all purchases made by volunteers, committees, task forces, etc. as pertinent to the approved budget. Non-staﬀ members (i.e. volunteers) making purchases should submit the receipt to the assigned staﬀ person for approval. The staﬀ person will approve the purchase if it is consistent with the attainment of the objective and budget of the committee or event.
ii. It shall be the policy of The Lake Zurich Area Chamber of Commerce to purchase its supplies, equipment and services ﬁrst and foremost from Chamber members in good standing. Exceptions to this policy would be if the Chamber has no member within the category, or if the cost savings realized by using a non-member exceed 20 percent. In such cases, non-members would be asked to join The Chamber in exchange for receiving the business.
iii. For equipment, services and supplies totaling more than $500 per individual purchase, or $1,500 cumulatively for the year, The Chamber shall initiate a Request for Price (RFP) amongst its members. Choice of vendor shall reﬂect low bid plus consideration of other factors including quality of product, materials produced or work performed locally, and/or the ability to provide satisfactory ongoing service. In no event shall bid amounts from one vendor be disclosed to other bidding vendors.
iv. It shall also be the policy of the Chamber to rotate vendors for other services whenever possible in order to patronize a broader cross-section of membership. The Chamber reserves the right to contract with any Chamber member for goods and services as long as the bidding process is followed and all speciﬁcations are met.
g. Document Retention & Destruction
i. Document retention is vital to the eﬃcient operation of the Chamber. Accordingly, all ﬁnancial records shall be retained and destroyed according to the Chamber’s Record Retention Policy. All retention requirements shall be treated as minimum retention periods. Retention for longer periods may be authorized by the Executive Director if there is reason to believe that a record may be required beyond the minimum retention period for the eﬃcient operation of the Chamber.
h. Disaster Recovery
i. Existing policies and procedures must be reviewed annually to insure that plans and provisions for all ﬁnancial records to be adequately safeguarded during any period of natural disaster, access to ﬁnancial during any extended period of recovery is predetermined, and permanent records are retained in such a manner providing protection in the best possible method so as not to hamper ongoing and future operations.
Reviewed and Accepted by:
Adopted by the Lake Zurich Area Chamber of Commerce Board of DirectorsDate: 09/2012Revised: 06/2021
I acknowledge that I have received and read a copy of the Lake Zurich Area Chamber ofCommerce Financial Policies and Procedure Manual and that I am responsible for following it.
Leave this empty:
Your legal name
Your email address
Signed by Claire Slattery
Signed On: December 20, 2022
If you have questions about the contents of this document, you can email the document owner.
Document Name: LZACC Financial Policies and Procedure Manual
Agree & Sign