Attributing financial Cash or accruals based Cash or accruals based or a transactions to projects, but hybrid Cash not comparing them to budget Attributing financial ceilings transactions to projects and Attributing financial transactions Not attributing comparing them to budget to projects and comparing them transactions to projects Not adequately tracking ceilings to budget ceilings nor comparing them to unallowable expenses, budget ceilings advances, sales taxes, foreign Tracking unallowable Tracking unallowable expenses, currency conversions, and expenses, advances, sales advances, taxes, foreign Not tracking sub-grants taxes, foreign currency currency conversions, and unallowable expenses, conversions, and sub-grants advances, sales taxes, Not properly recording some foreign currency payments and receipts Properly recording all Properly recording all conversions, and sub- transactions transactions The organization has a partly qualified accountant who reports to The organization has a qualified The organization has a qualified The organization has a the board or a qualified accountant accountant who reports to the accountant who reports to the board bookkeeper, but no who reports to the chief executive board, but may need some training and regularly updates skills accountant Notes Accounting System 1. Does the organization have a reliable accounting system? 2. Is accounting based on cash, accruals, or a hybrid system? 3. Is the accounting system computerized? If so, what software is used? If not, describe the manual system. 4. Is a standard chart of accounts for income and expenses, assets, and liabilities that meets current legal and donor requirements and corresponds to the General Ledger? When was it last updated? 5. Is the accounting system reliable and does it meet current legal and donor requirements? 6. Is the chart of accounts sufficient for financial management (e.g., does the chart of accounts include codes for each award, contract, and fund? Does it include codes for tracking unallowable expenses, sub-grants, and advances?)? 7. Are all payments and receipts recorded in the accounting system? How often? 8. Does the financial system track expenses against each project budget ceiling and obligation? 9. What is the system for determining exchange rates and recording currency gains and losses? 10. Are VAT and sales tax expenditures tracked and reimbursed according to donor requirements? 11. Does the organization have qualified, full-time accountants on staff? 12. Does the accountant report directly to the board or a board committee?
Cash Not attributing transactions to projects nor comparing them to budget ceilings Not tracking unallowable expenses, advances, sales taxes, foreign currency conversions, and The organization has a bookkeeper, but no accountant Attributing financial transactions to projects, but not comparing them to budget ceilings Not adequately tracking unallowable expenses, advances, sales taxes, foreign currency conversions, and sub-grants Not properly recording some payments and receipts The organization has a partly qualified accountant who reports to the board or a qualified accountant who reports to the chief executive Cash or accruals based Attributing financial transactions to projects and comparing them to budget ceilings Tracking unallowable expenses, advances, sales taxes, foreign currency conversions, and sub-grants Properly recording all transactions The organization has a qualified accountant who reports to the board, but may need some training Cash or accruals based or a hybrid Attributing financial transactions to projects and comparing them to budget ceilings Tracking unallowable expenses, advances, taxes, foreign currency conversions, and Properly recording all transactions The organization has a qualified accountant who reports to the board and regularly updates skills Accounting System Notes 1. Does the organization have a reliable accounting system? 2. Is accounting based on cash, accruals, or a hybrid system? 3. Is the accounting system computerized? If so, what software is used? If not, describe the manual system. 4. Is a standard chart of accounts for income and expenses, assets, and liabilities that meets current legal and donor requirements and corresponds to the General Ledger? When was it last updated? 5. Is the accounting system reliable and does it meet current legal and donor requirements? 6. Is the chart of accounts sufficient for financial management (e.g., does the chart of accounts include codes for each award, contract, and fund? Does it include codes for tracking unallowable expenses, sub-grants, and advances?)? 7. Are all payments and receipts recorded in the accounting system? How often? 8. Does the financial system track expenses against each project budget ceiling and obligation? 9. What is the system for determining exchange rates and recording currency gains and losses? 10. Are VAT and sales tax expenditures tracked and reimbursed according to donor requirements? 11. Does the organization have qualified, full-time accountants on staff? 12. Does the accountant report directly to the board or a board committee? sub-