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Catalog of Sample Policies for Pennsylvania's
Conservation Districts
Financial Accounts, Policies & Procedures
(Pike County Conservation District)
Purpose: This document is intended to describe various financial
accounts administered by the Pike County Conservation District and to
outline financial policies and procedures set forth by the District
Board of Directors to enable the District to responsibly manage county,
state and federal funds that are provided for the community's environmental
benefit.
Financial Accounts
Activities Fund Account
The Activities Fund is the District's primary operating account, which
consists of grant income, County appropriations, permit fees and earnings
from the annual Tree Sale and other fundraising activities. Expenditures
from this fund pay operating expenses, grant expenditures, educational
program and fundraiser costs, and support the mission and goals of the
Conservation District as approved by the Board of Directors.
- The goal of the fund is to match each year's expenditures with income.
Actual surpluses or deficits, although not planned, may be added to
or subtracted from the fund balance (see Capital Reserve Fund).
- Guidelines for annual fund expenditures are set through an annual
budget developed by the District Manager and Finance and Planning
Committee and approved by the Board of Directors.
- Checks must contain two signatures. The Treasurer, Chairman, District
Manager and Secretary are signatories for the Activities Fund Account.
Capital Reserve Fund
The Capital Reserve Fund is an INVEST* account consisting of money set
aside from the Activities Fund for the purpose of funding future District
conservation education efforts, including development of an environmental
education facility.
- Recommendations for altering the fund's investment strategy are
made by the District Finance and Planning Committee and approved by
the Board.
- Funds may be transferred between the Capital Reserve and Activities
Funds as needed at the discretion of the Board.
Petty Cash
Petty cash is used for unplanned small cash purchases for which writing
a check may not be practical. The availability of petty cash is also
intended to minimize employees' use of personal funds for program expenses.
Examples of appropriate uses of petty cash include purchase of materials
for educational programs, additional supplies for tree sale preparations,
refreshments for meetings, etc.
- The Office Administrator is the custodian of the Petty Cash Fund.
- All purchases from Petty Cash must be recorded in a journal and
accompanied by a receipt. Disbursements from the fund are to be charged
to appropriate budget line items.
- Petty Cash may be replenished as needed in increments up to $100
from the Activities Fund.
- The District Board of Directors authorized participation in the
State Treasurer's INVEST Program for local governments by resolution
adopted on September 27, 1999.
Dirt and Gravel Road Fund - Municipal Program
The Dirt and Gravel Road Fund consists of appropriations from the state
to fund environmentally sound road maintenance projects. The District
administers the program through a 4-member Quality Assurance Board and
awards grants to local municipalities and/or state agencies with jurisdictions
over dirt and gravel roads. Program Funds are divided between two accounts:
Dirt & Gravel Road INVEST* Account is an interest-bearing account
used to deposit advances and reimbursements received for the program.
- Transfers are made to the Activities Fund checking account as needed
to pay program expenses.
- Interest earned is used to supplement project funds as per state
guidelines.
- The District's administrative share of the funds may be used at
the discretion of the District to offset program costs, purchase equipment,
provide education programs, etc.
Dirt and Gravel Road Community Association Program
This INVEST account is an interest-bearing account used to deposit advances
and reimbursements received for this Growing Greener grant program.
- Transfers are made to the Activities Fund checking account as needed
to pay program expenses.
- Interest earned is used to supplement project funds as per state
guidelines.
Financial Record Keeping & Reporting
Internal Controls
- The Secretary manages the accounts on a day-to-day basis using QuickBooks
Pro accounting software.
- The District Manager authorizes purchases in accordance with the
Board-approved budget and authorizes the payment of invoices prior
to checks being prepared.
- Bills are generally paid weekly on Fridays. An invoice must accompany
all bills paid.
- The Secretary prepares checks and supporting documentation for District
Manager approval.
- Monthly financial reports for the Board are prepared by the Secretary
and include a list of expenditures and other fund transactions for
all District accounts.
- Checks may be endorsed with two District staff signatures for budgeted
operating expenditures or grant expenditures within budget limits
of Board-approved grant contracts. Checks for non-budgeted expenditures
over $1500 must have at least one Director signature.
- All checks are prenumbered and used in sequence. Blank checks are
stored in a secure, locked area. Voided checks are retained with the
signature portion removed.
- The Office Administrator reconciles the books monthly with bank
statements from all accounts.
- District Manager prepares quarterly reports for Board review.
Bank Account Initiation & Closure
- Approval of the Board of Directors is necessary for the opening
or closing of District bank accounts, with the exception of PA INVEST
sub-accounts, which may be initiated by the District Manager under
the Conservation District's participant name and account number to
accommodate individual grants for which a separate interest-bearing
account is required. Similarly, individual grant sub-accounts may
by closed by the District Manager upon completion of grant projects.
Notification of sub-account initiation or closure will be provided
to the Board of Directors at the monthly meeting following the transaction.
- The County auditors must be notified in writing when new accounts
are established or existing accounts closed.
Annual Audits
- Financial records maintained by Pike County Conservation District
are reviewed annually by the Pike County Auditors. A report of their
findings is provided to the County Commissioners and the District
Board of Directors.
- The District follows the State Conservation Commission's Revised
Audit Standards for County Conservation Districts (Adopted 11-9-99)
for annual Financial Statement audits. A copy of the standards is
included as Attachment A. The District is required to have an annual
audit performed by a Certified Public Accountant, whose report must
be submitted to the State Conservation Commission by the deadline
set by the Commission.
Records Retention
- Financial records will be retained for 10 years, unless otherwise
specified by funding sources from which they originate. Other records
will be retained according to specific program guidelines for program-related
records.
Other Financial Policies & Procedures
Bonding
The positions of Board Chairman, Treasurer, District Manager, Office
Administrator, District Secretary and Resource Conservationist are bonded.
Ethics Requirements
- As Public Officials/Employees, all District Directors, Associate
Directors and staff are subject to the provisions of the Public Official
and Employee Ethics Act, 65 Pa.C.S. §1101 et seq., including
the requirement for annual Statements of Financial Interest to be
filed at the District office. An opinion rendered by the State Ethics
Commission regarding the expenditure of District funds for Director
attendance at certain functions is included as Appendix I of this
document.
Business Expense Reimbursements
- District Directors and associate directors may be reimbursed for
business-related expenses based on rates set by the County and the
annual budget approved by the District Board. Reimbursable items include
round-trip mileage for travel to monthly meetings and other District
functions, lodging and meal expenses for out of town meetings and
training, seminar and workshop registration fees. Travel expense reimbursement
requests should be submitted at least quarterly to the Office Administrator
on the forms provided and with all original receipts attached. (Travel
expense reimbursement guidelines for District staff are described
in Pike County Employees Manual and the Pike County Conservation
District Standard Operating Procedures for Employees.) All expenditures
for or reimbursements to District staff or Board members must comply
with the Public Official and Employee Ethics Act noted above.
Credit Cards
- Pike County Conservation District maintains three corporate credit
cards (Exxon, Sunoco and Visa) which are authorized for use as follows:
(1) purchasing fuel or vehicle-related supplies (such as windshield
washer fluid, oil, antifreeze, etc.) for district vehicles; (2) lodging
reservations for authorized business trips; (3) approved purchases
from internet vendors or others with whom the District does not have
pre-established accounts.
- Any unauthorized use of District credit cards will be the sole responsibility
of the person who made the purchase and the cost of the purchase (plus
any related charges) will be reimbursed to the District. Unauthorized
use of District credit cards may be grounds for dismissal.
Purchasing Guidelines
- The District Board encourages economy in the management of all funds
administered by the District.
- Expenditures made by the District are to follow County guidelines
as follows: expenditures under $4000 have no formal bid requirements;
expenditures in the range of $4000 to $10,000 require a minimum of
3 telephone-solicited bids; expenditures over $10,000 must be publicly
advertised for receipt of sealed bids.
County Appropriations
- The District receives an annual appropriation from the County Commissioners,
based on the annual budget developed and approved by the Board and
subsequent discussions with the County Commissioners. The appropriation
is requested in writing in quarterly installments.
- The District remits to the County State Cost Share funds received
for staff salaries and benefits. Staff salaries and benefits are paid
by the County (see District Board/County Commissioners MOU)
- Grant monies and administrative cost share funds are retained by
the District and used to offset project, program and/or other operating
expenses.
Equipment Inventory/Disposal
- District computers, office furniture and machines, equipment, vehicles
and other items valued over $200 are tracked and insured under the
County's inventory control system.
- Management and disposition of supplies, equipment or other property
purchased with state or federal funds will be subject to any requirements
set by the funding source.
Miscellaneous
- The District maintains its own Federal ID number to facilitate receipt
of state cost share funds and grant monies.
- Sales tax is collected for all taxable items under a Permanent
Sales Tax License and remitted semi-annually to the Commonwealth.
(Adopted November 19, 2001)
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