The nonprofit state organization makes timely payments (e.g. IRS Form 941) and reports to the IRS and to other taxing authorities, as required by law Annual report financial, statistical and service data summary – Audits or independent financial reviews as required (requirements under review) Non-profits Designated committee reviews findings and meets with the independent auditor as necessary Reviewed and formally approved by the governing body Made available for public inspection When recommendations are made by the independent auditor the organization’s governing body promptly reviews and ensures that management acts on the recommendations Public Agencies In a organization operated under public auspices, an audit is conducted periodically which covers all years since the previous audit was conducted and is conducted in accordance with laws or regulations governing audits of the financial operations of a public agency If the state organization receives government funding, it is in compliance with regulations that prohibit spending government funds for lobbying activities Financial Accounting and Record Keeping Annual financial statements prepared using accrual method of accounting used by state organization Donor/funder restricted funds must be segregated in the accounting system Operational Procedures in regard to accounting control include: Descriptive chart of accounts Prompt and accurate recording of revenues and expenses Maintenance of a filing system which contains account records and receipts Safeguarding and verification of assets Control over expenditures Separation of duties to the extent possible Internal financial control policies (e.g. segregation of duties, and account reconciliations) Disbursement of Funding If the organization disburses funding to local programs the state organization must have: Written policy guiding the award process which: Describes the decision-making process Requires program input into the derivation of the formula or criteria used in the decisions to grant funds, unless such formula or distribution of funds is prescribed by the funder Identifies the person or entity of the state organization that makes the final decision regarding the grant formula and/or awards Explains the mechanism and timeframes for disbursal of funds and publication of fund recipients Is available for review upon request Written policy regarding oversight of the funds which:
The nonprofit state organization makes timely payments (e.g. IRS Form 941) and reports to the IRS and to other taxing authorities, as required by law Annual report – financial, statistical and service data summary Audits or independent financial reviews as required (requirements under review) Non-profits Designated committee reviews findings and meets with the independent auditor as necessary Reviewed and formally approved by the governing body Made available for public inspection When recommendations are made by the independent auditor the organization’s governing body promptly reviews and ensures that management acts on the recommendations Public Agencies In a organization operated under public auspices, an audit is conducted periodically which covers all years since the previous audit was conducted and is conducted in accordance with laws or regulations governing audits of the financial operations of a public agency If the state organization receives government funding, it is in compliance with regulations that prohibit spending government funds for lobbying activities Financial Accounting and Record Keeping Annual financial statements prepared using accrual method of accounting used by state organization Donor/funder restricted funds must be segregated in the accounting system Operational Procedures in regard to accounting control include: Descriptive chart of accounts Prompt and accurate recording of revenues and expenses Maintenance of a filing system which contains account records and receipts Safeguarding and verification of assets Control over expenditures Separation of duties to the extent possible Internal financial control policies (e.g. segregation of duties, and account reconciliations) Disbursement of Funding If the organization disburses funding to local programs the state organization must have: Written policy guiding the award process which: Describes the decision-making process Requires program input into the derivation of the formula or criteria used in the decisions to grant funds, unless such formula or distribution of funds is prescribed by the funder Identifies the person or entity of the state organization that makes the final decision regarding the grant formula and/or awards Explains the mechanism and timeframes for disbursal of funds and publication of fund recipients Is available for review upon request Written policy regarding oversight of the funds which:
STATE%20STANDARDS%20AND%20TECHNICAL%20GUIDANCE%20-%20NCP%2002.2018%20FINAL.DOCX