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GREAT PLAINS TRIBAL CHAIRMEN’S HEALTH BOARDFINANCIAL ACCOUNTING POLICIESANDPROCEDURES MANUALOctober 1, 2013
Table of ContentsIntroductionGeneral Accounting PoliciesChart of AccountsCash2-334-55Cash Receipts5-7Procurement and Accounts Payable8-12RevenueCash DisbursementsTravelPayrollPrepaid Expenses and DepositsFixed AssetsManagement ReportsGeneral Journal EntriesBudgetSignature StampAccount Transfers and Electronic Fund TransfersContractsCredit Card 212222-231
IntroductionThis manual sets forth the official accounting policies and procedures of the Great Plains TribalChairmen’s Health Board (GPTCHB). These policies and procedures are the duties of the BoardTreasurer, Chief Finance Officer and other employees of the Finance Office and are consistentwith the provisions of the Articles of incorporation and the By-Laws of the Great Plains TribalChairmen’s Health Board. They have been approved and adopted by its Board of Directors.Officers and employees are therefore bound by its terms.The manual was designed primarily for the guidance of employees of the Finance Office. Allemployees, however, are encouraged to familiarize themselves with it, particularly the policystatements.1.0Accounting SystemThe purpose of the accounting system is to provide complete, accurate, and timely financialinformation to those who are responsible for and concerned with the financial operations ofGPTCHB. These concerned and responsible parties include Program Directors who areconcerned with the financial integrity of their respective program, The Tribal Chairpersons, theHealth Directors, and Community Coordinators as well as the individual membership of thevarious Tribes. Finally, those who invest funds with the Great Plains Tribal Chairmen’s HealthBoard, such as the Federal and State Governments, have a right to know that public funds werespent in accordance with the terms of the contracts or grants that made the funds available.More specifically, the objectives of the accounting system of the Great Plains Tribal Chairmen’sHealth Board are to provide:1.2.3.Timely reports to Program Directors, Chief Executive Officer and the Board of Directorsso as to permit the effective management of operations for which they are responsible.Accountability over receipts and disbursements for each contract, grant, or fund.The accounting data to meet the reporting requirements of contracts and grants.The objective of this accounting manual is to provide standardized procedures by which theaccounting system objectives may be accomplished. In addition, the accounting manual servesas a means of defining and clarifying matters of an administrative or financial nature. Itpromotes both standardization and simplification; it assists in the training of employees andpermits a better utilization of supervision. When questions of procedure, jurisdiction, orresponsibility arise, the accounting manual provides a reference source. Through review, itserves to determine whether a function is being carried out properly. It makes procedures amatter of record.The policies and procedures contained in this manual have been developed with considerationgiven to the following elements:1.2.3.The requirements of internal control, and the cost of such controls.External and internal reporting requirements.The existing organization and anticipated changes in the near future.The primary purpose of the accounting system is to provide financial information to those whoare responsible for financial operations. This system will generate financial statements,including a balance sheet and statement of operations for each program for each month.Future circumstances may require changes in the format of financial statements and reports, orin the policies and procedures manual. Changes may be proposed by an employee or member2
of the Board of Directors, as well as the independent outside auditors. Any such changes will bemade by the Chief Finance Officer, with the approval of the Board of Directors.General Accounting Policies2.0PolicyIt is the policy of the Great Plains Tribal Chairmen’s Health Board to maintain its accountingrecords on a modified accrual basis and report its financial activity in accordance with generallyaccepted accounting principles. In the event of any conflict between generally acceptedaccountability principles and legal or contractual requirements, the latter will take precedence.2.1Recognition of RevenuesThe accounting system recognizes the award of a contract or grant as revenue whengrant monies are drawn down and received. This revenue is adjusted at year-end whenthe corresponding expense is recognized. Other revenues are recorded as earned.2.2Recognition of ExpenseThe accounting system recognizes expenditures based on the receipt of or services andthe establishment of a liability.2.3Fixed AssetsThe accounting system recognizes purchases of fixed assets with grantor agency funds aslegally owned by the grantor agency. At the same time, an entry will be made torecognize an investment to a general fixed asset account. A physical inventory of fixedassets will be performed annually and reconciled with the accounting records by theFiscal Coordinator. Employees will check out inventory with the Fiscal Coordinator uponuse. Inventory shall be checked back in when equipment is no longer being used. FixedAssets/Inventory will be secured behind lock doors.2.4LoansEmployee loans are not allowed by the government organization GPTCHB.2.5FinanceThe Chief Administrative Officer is responsible for the integrity of and propertymanagement records. The Chief Administrative Officer acts as a liaison between theGreat Plains Tribal Chairmen’s Health Board and appropriate funding agencies. The ChiefAdministrative Officer is responsible for responding to findings in audit reports andinsuring that required remedial action is taken, as appropriate.Insisting upon compliance with policy and procedures requirements outlined in thismanual will not be a cause for disciplinary action against the Finance staff2.6Annual AuditAudits are to be performed in accordance with OMB Circular A-133 for fiscal years withexpenditures under Federal Awards of 500,000 or more. Audit reports will besubmitted to the Federal Audit Clearinghouse within 30 days of receipt of audit or ninemonths of fiscal year’s end.3
Charts of Accounts3.0Coding SystemThe account coding structures described below will provide the key to meeting theobjectives of the accounting system.An eight-digit coding structure will be used for assets, liabilities, and fund balances foreach fund. The first three digits will identify the contract, grant, or fund. The fourth digitwill identify the year as 1, 2, or 3, etc. The last four digits will identify the account as anasset, liability, or the fund balance as illustrated by the placement of an“f”,”y”,”a”,”b”,”r”,”e”, or “c” for each digit according to the key below:f fund codey year codea asset codel liability codeb fund balance coder revenuee object codec location codeAsset fff-y-aaaaLiability fff-y-lllFund Balance fff-y-bbbbA seven-digit coding structure will be used for revenues. The first three digits willidentify the contract, grant, or fund. The fourth digit will identify the year as 1, 2, or 3,etc. The last three digits will identify the revenue account as illustrated below.Revenue: fff y-rrrA ten-digit coding structure will be used for expenditures. The first three digits willidentify the contract, grant, or fund. The fourth digit will identify the year as 1, 2, or 3,etc. The fifth and sixth digits will identify the site, location, or other identifying function.The last four digits will identify the expenditure object account. This coding structure isillustrated as follows:Expenditure fff-y-cc-eeeeBased on code numbers assignments, it will be possible to readily ascertain theaccounting classification for any transaction.The system will provide flexibility to permit the addition of numerous accounts. Theaddition of any account, however, must have the approval of the Chief Finance Officer.The following list of primary accounts provides an overview of the account codingsystem. Additional details will be found in the chart of accounts.Account Series Description10002000300040005000 – 6000AssetsLiabilitiesFund BalanceRevenueExpenditures4
The chart of accounts will need to be revised from time to time to conform to theexpenditure accounts with the specific budgetary accounts as approved in contracts,grants, and funds.Because of the frequency with which programs and accounts will be added or dropped, itis not practical to incorporate the coding system in its entirety in this manual. Questionsregarding the coding structure for a particular program or account should be referred tothe accounting department.4.0PolicyAccounting Policies and Procedures Manual CashIt is the policy to maintain adequate controls over cash on hand and in banks. The majority ofcash disbursements on behalf of the GPTCHB will be done by checks. Any cash received, will bedeposited promptly into the appropriate bank account. However, credit card disbursementsmay be used on a limited basis for travel purposes (see Section 19.0 Credit Card Policies)4.1Bank ReconciliationsAll bank statements will be opened and reviewed by the Controller prior to being given to theFiscal Coordinator to complete the bank reconciliations. All bank reconciliations will becompleted in a timely manner (or 30 days after the month ends)The Fiscal Coordinator will perform the monthly bank reconciliations. All deposits in transitwill be reviewed and approved or investigated. Outstanding checks in large amounts oroutstanding for more than 90 days will be reviewed and accepted or investigated. Transfers, ifany, from other accounts will be reviewed and approved or investigated. Suspicious accountactivity will be investigated and resolved by finance staff.The Controller will review the completed bank reconciliations, initial, and date the bankreconciliations after they are completed. The bank reconciliations will be retained by the ChiefFinance Officer, in a separate file, in chronological order for each account.A general journal entry will be prepared by the Fiscal Coordinator to record bank charges orother necessary reconciling items. The Controller or Chief Finance Officer will review thecharges and reconciling items before they are entered and posted to the general ledger by theFiscal Coordinator.4.2 ChecksThe individual preparing checks should assure that the checks for each account are numberedin sequence and used and recorded in proper numerical and chronological order. All voidedchecks must be retained after destroying the face of the check, by writing “VOID” on it, andtearing off the signature portion. These voided checks should be given to the Controller, andwill be retained in a separate voided check file.Blank checks are to remain locked in the Finance office, and Finance Staff must log beginningand ending check numbers when AP/Travel or Payroll checks are issued.Cash Receipts5.0Policy5
All general funds, charitable donations, and grant funds are required to be deposited in theappropriate checking account on a daily basis. Currency, if any, received over the counter or inthe mail is not to be for change making or imprest cash disbursements and must be depositedon a daily basis.5.1ReceiptsThe Accounting Assistant will receive cash, prepare a deposit slip, and deposit the cash on thesame day. All receipts will be coded, recorded, and dated the day they were received. Anindividual receipt will be written for each item of cash received. One copy of the receipts mustbe provided to the Fiscal Coordinator. The second copy should remain in the receipt book in thecustody of the Accounting Assistant. This should be accomplished daily as early as practical.Unusual or very large receipts should be brought to the attention of the Chief Finance Officerimmediately.5.2AccountingThe Fiscal Coordinator will enter the receipts in the cash receipt journal, sign the original copyof the cash receipts for deposit in the appropriate account. The Fiscal Coordinator will code andenter the receipts to the proper account to avoid commingling of funds. The Chief FinanceOfficer and Controller will review the coded receipts for accuracy.The Accounting Assistant will provide the deposit receipt received from the bank to theaccounting department on a daily basis. These receipts will be attached directly to the duplicatebank deposit ticket and retained by the Fiscal Coordinator along with their duplicate copies ofthe actual cash receipts.5.3Drawdown of Federal and State Grants and ContractsThe Chief Finance Officer will draw down all federal grants and contracts that are scheduled tobe drawdown on the Payment Management System per the grant and contract agreements. Alldrawdowns will be limited to amounts needed to cover allowable costs of a project, be timedwith actual immediate cash needs, and not be made to cover future expenditures.The Fiscal Coordinator will prepare the drawdown request.The Controller will review and approveCHIEF ADMINISTRATIVE OFFICER will submit in PMSThe Fiscal Coordinator will invoice the funding agencies for grants and contracts that are notdrawn down on the Payment Management System. The invoice will be based on informationreceived from the Program Directors and will require a week to process. The drawdown willinclude the amount of expenditures to be reimbursed or advanced and time periods (monthly,quarterly, etc.) as received from the Program Directors.The Fiscal Coordinator will review the accounts receivable subsidiary ledger and accountsreceivable aging schedule to reconcile to the general ledger on a monthly basis.The Accounting Assistant will deposit all invoiced drawdowns on the same day that they arereceived in the mail. The Fiscal Coordinator will code and enter the deposits in the cashreceipts accounts.5.4Controller6
The Fiscal Coordinator shall provide a copy of the cash receipts at the request of the Controllerto assure that the receipts have been identified to the proper programs and accounts. TheController will be apprised of any large or unusual receipts that may require personal attentionGeneral Journal Entries, as required for cash accounts, will be prepared by the FiscalCoordinator. The journal entries will be reviewed for accuracy by Controller and approved bythe Chief Finance Officer before the Fiscal Coordinator enters and posts the journal entries inthe accounting records.REVENUE6.0PolicyContract and grant revenues are to be recognized in the accounting records after and approvednotice of award is received from the funding agency and the funding agency and the budget forthe award is entered in the budgetary accounting records.Revenue is to be recognized at the time it is received. Appropriate cash accounts will be debitedand revenue accounts will be credited for cash received from each contract or grant. At the endof the budget period, an adjustment will be made to the revenue accounts to match the revenueswith the expenditures for the period for each contract and grant award.6.1Budgets – Contracts, Grants, and SubcontractsProgram Managers will submit all approved budgets of contracts, grants, and subcontracts tothe Chief Executive Officer and the Chief Finance Officer.6.2Budgetary AccountingIt will be the responsibility of the Chief Finance Officer to assure proper recording of thebudgets in the accounting records.6.3Fund DesignationUpon receiving the notice of award for a contract or grant, the Chief Finance Officer, Controller,Fiscal Coordinator will assign a fund number.The Fiscal Coordinator will set up a file for each contract or grant that will contain the notice ofaward, contract or grant proposal, contract or grant budget and program modifications,requests for fund drawdowns, financial reports, and all other pertinent correspondenceprovided by the Program Director.The Chief Finance Officer will review all cash received from funding agencies to insure that it isrecorded in the proper program and proper period.The Chief Finance Officer will review all cash received from funding agencies to insure that it isrecorded in the proper program and proper period.6.4Recording Program IncomeProgram Income is defined according to granting agency administrative requirements for eachrespective grant or contract.7
For the purpose of the accounting policies and procedures manual, GPTCHB will define ProgramIncome as “Gross income earned by the grantee from grant supported activities may include butwill not be limited to, income from services fees, sale of commodities and usage or rental fees.”All Program income unless, otherwise mentioned in the grant or contract, will be retained byGPTCHB and accounted for in one of two ways.1.6.52.Added to budgeted grant income and used to further eligible program objectives of thedepartment that generated the income.Deducted from the grant contract those costs that were to be paid by the grantoragency, but will be paid with the program income.Disposition of Nonexpendable PropertyNon-expendable property held by GPTCHB as defined in the administrative requirements of thegranting agency and has a unit acquisition cost of less than 5000.00, may be sold by GPTCHBwhen it no longer has a useful purpose for GPTCHB. The income realized from this sale may beretained as income by GPTCHB.The asset reduction would occur in the appropriate program account, whereas the incomewould be retained and reflected in a non-program account.For dispositions of non-expendable items, more than 5000.00 refers to the administrativerequirements of the granting agency that originally purchased the property. The ProgramDirector shall be responsible for obtaining necessary approvals and instructions for the sale ofnon-expendable equipment from the grantor-funding agency and the GPTCHB Board.6.6Interest IncomeInterest income earned on checking deposits for federal funds will be recorded as income ofGPTCHB if the amount of interest is less than 100.Interest earned in excess of 100 will be returned to the federal government.If interest income is earned on P.L.93-638 funds, it will be recorded as unrestricted revenue toGPTCHB.Procurement and Accounts Payable7.0PolicyAll business transactions with vendors must be initiated by the use of purchase requests andfollowed up with related purchase orders.The Term “vendors” refers to all business entities with which the GPTCHB does business. Theterm includes sole proprietors, partnerships, corporations and all other forms of business ororganizations with which the GTPCHB may have a business relationship.The Fiscal Coordinator will set vendors up in the Futex accounting software modules foraccounts payable and purchase orders. This set up will include the vendors EIN, SSN, and aForm W-9 for 1099 requirements.The Controller will review the accounts payable subsidiary ledger and the aging schedule toreconcile to the general ledger on a monthly basis.8
Open purchases will be reviewed at year-end to assure that all expenditures area classifiedwithin the correct fiscal year. Open purchase orders will be used throughout the year forrecurring expenditures for rent, utilities, telephones, cell phones, and other expenditures of thisnature.The GPTCHB procurement policy requires:1.2.Compliance with competitive bidding procedures as prescribed by the granting agencyadministrative requirementsCompetitive bids will not be required when personal service contracts are negotiated.Personal services are services required to be performed by a contractor in person andare of a technical and professional nature and paid for on a timely basis. Such servicesinclude accounting, legal, engineering, and consulting.OIG/SAMS EXCLUSION REVIEWFederal law prohibits entities that participate in federal programs entering into ormaintaining certain relationships with individuals or entities that have been excludedfrom participation in federal programsGPTCHB will perform initial, annual, and/or ongoing exclusion reviews to ensure thatemployees, vendors and contractors have not been sanctioned or excluded fromparticipating in any federal program as prohibited by federal law.For purposes of this policy, an “ineligible individual/entity” is anyone who:a) Is currently excluded, debarred, or otherwise ineligible to participate in thefederal programs or in federal procurement or non-federal procurementprograms; orb) Has been convicted of a criminal offense related to the provision of items orservices but has not yet been excluded, debarred, or otherwise declaredineligible.If GPTCHB identifies an ineligible individual/entity in the Exclusions verificationprocess, the Organizations Legal Counsel will be contacted for advice and direction onproceeding with an appropriate course of action.The following screening procedures will be conducted by GPTCHB Finance Employees:a) All new vendors and contractors who have submitted a request for paymentfor services rendered will be screened during the purchasing process.Upon the effective date of this policy, and annually thereafter, AccountsPayable will screen all current vendors to verify that no existing vendors andcontractors have been excluded from federal programs over the course of theyear since the last review.Finance shall notify the GPTCHB Chief Finance Officer, Chief Executive Officerand/or GPTCHB Legal Counsel of any matches found during any of the abovescreening processes.b) Purchasing.Prior to completing a contract for services, the GPTCHB Finance Departmentwill screen all potential vendors and contractors. Potential contractors will berequired to warrant that none of the vendor’s employees has been excludedfrom a federal program.9
3.4.Finance Department shall notify the GPTCHB Chief Administrative Officer, ChiefExecutive Officer and GPTCHB Legal Counsel of any matches found during the abovescreening processes.Executive Committee approval of any single purchase request inis estimated to exceed 25,000.00which the totalPurpose and Scope of BusinessThe following personnel are authorized to approve purchase requests to the maximum dollarvalue indicated for a single purchase 0.00 to 1000.00 1001.00 to 25,000.00More than 25,000.00Program Director or designee*Chief Executive Officer or designee *Executive Committee* A designee can be given signing authority of Purchase Requests by Director orChief Executive Officer if the authorized signer will be on leave, travel, out of office for 3 days ormore.5.Competitive Price Quotationsa) Single Unit cost of 1,000.00 or less. Purchased at best price and sources ofsupply based on personal judgment of the authorized buyer.b) Single Unit cost of over 1,000.00, but not more than 25,000.00. Anauthorized buyer will obtain a minimum of three written (emailed or faxed)quotations and documents.c) Unit cost of over 25,000.00, sealed bid process to be utilize written quotationobtained from at least three vendorsSealed Bid Process:a) GPTCHB will advertise the product/service specifications for a minimum oftwo weeks.b) All bids will be publicized in the local newspaperc) Bids must be marked “SEALED BID” and received by the time specified.d) Bids will be opened promptly at the specified time.e) Bidders may attend the bid opening.f) Preference will be given to Native American, Women, and minority ownedbusiness.g) The lowest responsible bidder who offers the best value to the GPTCHB will beaccepted.h) GPTCHB reserves the right to reject any and all bids.Note: Exceptions to the competitive bidding process as indicated under Item 5 entitled “use ofGSA and Government Contract Sources” and Item 6 entitled “Sole Source Procurement.”6.7.Use of GSA and Government Contract Sourcesa) The competitive bidding process is not required if the item is available andpurchased through GSA stores, GSA Federal Supply Schedule Contract, or StateGovernment consolidated purchasing agreements and contracts.Sole Source Procurement10
Sole Source Procurement is defined as a purchase from a specific vendor onlyor a specific, vendor’s product only with no available acceptable substitute.The following personnel are authorized to approve Sole Source Procurement ofitems having a unit cost as follows: 0.00 - 1,000.00 1,001 - 25,000.00More than 25,000.008.9.Program DirectorCEO/Chief Administrative OfficerExecutive CommitteeWhen utilizing the Sole Source method of procurement, the ProcurementOfficer, when possible, shall contact more than one supplier of the particularitem require, i.e. manufacturer, dealers, wholesalers, distributors etc. TheProcurement Officer must also document the solicitation and vendorscontacted. The solicitation should not be unduly restrictive so as to preventcompetition.Selection of successful bidderAfter the bidding process, selection of the successful supplier shall be accomplishedbased on one or more of the following reasons:a) Lowest bid received considering unit price, total price, F.O.B. (Freight onboard) destination, and invoice terms.b) Vendor delivery dates as related to urgency of need.c) Vendor product value analysisd) Vendor product adaptability to existing equipment, materials, etc.e) Other, buyer shall justify and document in writing.Petty Cash ProcurementThe petty cash method of procurement may not be utilized for individual purchases10. Procuring PartyNo employee, officer, or agent of the procuring party shall participate in the selection orin the award or administration of a contract supported by program funds where totheir knowledge:a) their immediate family, partners, or organization has a financial interest.b) their immediate family, partners, or organization is negotiating or hasarrangement concerning prospective employment.7.111. The Procurement Standards as stated in the granting agency procurement.Consideration will be given to Native American, Women, and minority ownedbusinesses.Program Directors or Designated RepresentativesOnce a need to enter into a purchase agreement with a vendor has been established, programpersonnel, except as described in the following paragraph, shall complete a purchase request.The Purchase Request shall be a two-part form. The individual initiating the purchase requestshall forward it to their assigned signature authority for approval. The purchase request willhave a complete description of items needed and the account number to be charged.The distribution of the Purchase Request shall be as follows:11
7.21.2.White – Fiscal CoordinatorYellow – PurchaserPurchasing DepartmentAfter Purchase Requests have been reviewed and authorized they will be forwarded to theFiscal Coordinator. The Fiscal Coordinator will verify that the purchase is within the respectiveprogram budget and funds are available. The accounting system will also be programmed toautomatically issue a warning that funds are not available to make the purchase.In addition to other requirements, the review of the purchase requests shall include adetermination:a) that competitive bidding requirements have been satisfiedb) if the purchase could be combined with other purchases to qualify for quantitydiscounts or other benefitsc) that the purchase is allowable within the guidelines of OMB Circular A-87 and OMBCircular A-122.If the Fiscal Coordinator or Controller finds that the purchase request does not pass theirreview for any reason, the purchase request will be returned to the Purchaser.If the Fiscal Coordinator is satisfied with the purchase request form after proper review, apurchase order will be issued to the vendor.7.3Purchase OrderThe Fiscal Coordinator shall issue the purchase order providing copies to the following:7.41.2.3.4.Vendor (if required)Finance AssistantPurchaserFiscal CoordinatorFinance AssistantAfter receiving the approved purchase request and having received an invoice & any additionaldocumentation (ie packing slip) for goods received, the Finance Assistant will enter the invoicesinto a batch that will be approved by the Controller.7.5Controller– Purchasing/Accounts PayableReoccurring purchases, where the vendor send invoices to GPTCHB on a periodic andestablished basis, will be identified and approved by the Controller for processing during theFiscal Year and will not require a purchase order. Examples of these are rent, utilities, andtelephone service.The Fiscal Coordinator shall file their copies of approved purchase orders by purchase ordernumber. The Finance Assistant will file their copies of the purchase request, purchase order,receiving report, and invoice by check number.Cash Disbursements8.0Policy12
The Chief Finance Officer may not authorize the disbursement of cash unless:1.2.3.4.a budget has been approved by the Chief Executive Officer and a contract, grant oraward has been received for the particular fund to which the disbursement would becharged;the specific transaction was authorized in accordance with accounting policies andprocedures contained in the annual budget approved by the Chief Executive Officerthere is satisfactory evidence that goods were received and services were providedthere are sufficient funds available to pay for the goods or services as they becomedue.Relationship to Other SectionsProcedures in this Section deal with the manner, which cash disbursements for vendorinvoices, will be handled. Refer to other Sections dealing with Payroll and Traveldisbursements, respectively.8.11.2.3.4.Accounts PayableUpon receipt of the vendor’s invoice, the Accounts Payable copy of the Purchase Order, thePurchase Request copy, and the Receiving Report/Packing Slip will be matched with theinvoice.Any significant change in the Purchase Order amount and the actual invoice amount willneed justification from the Purchaser. Discrepancies between the Purchase Order and theInvoice of less than 50.00 will not require a justifi
More specifically, the objectives of the accounting system of the Great Plains Tribal Chairmen's Health Board are to provide: 1. Timely reports to Program Directors, Chief Executive Officer and the Board of Directors so as to permit the effective management of operations for which they are responsible. 2.
