Presentation on theme: " Section 3: Bookkeeping Accounting of the accounts entry according to the Cash Accounting 1st step : Familiarize oneself with the Chart of Account used."— Presentation transcript:
Section 3: Bookkeeping Accounting of the accounts entry according to the Cash Accounting 1st step : Familiarize oneself with the Chart of Account used for the ACC-9 and add particularities specific to the Squadron.Chart of Account 2 nd step: Account all revenues and expenses regularly in the corresponding accountable accounts of the auxiliary books (Revenues sub-ledger or the Expenses sub- ledger of the ACC-9)
INTERNAL CONTROL Two (2) Main Objectives: Minimize losses: Protect the Squadron’s goods (lock, inventory) Maximize revenues: Plan, organize an control the different financing activities (Identification of the need in material human and financial resources)
DISBURSMENTS All payments done by the Squadron must correspond to the following criteria: Be accompanied by a bill The good or service must have been pre-authorized by the Commanding Officer and/or the Chair The expense should be planned in the budget All payments must be done by check and must be counter-signed by two authorized signatories by the sponsoring committee (Chair and/or the Treasurer and the vice-chair). The signatories must not be related (i.e.: spouses) Have the required funds available at the moment of payment (never do a check with insufficient funds (NSF)).
INTERNAL CONTROL b)CASH INFLOW Since most of the cash inflows are done with cash, it is important to put in place a system of internal control that, while being simple to put into practice, ensures adequate internal control and discourages the potential for embezzlement. Practical examples for Squadrons: Lottery duration: several months Packagingduration: 4 days (Thursday to Sunday) Tagging duration: twice a year ? Canteen duration: during the whole year
Fundraising Campaign: Lottery This financial resource being common to all, it is important to reduce the losses that can happen during the few months in which the campaign lasts. i.Have the cadets sign when the tickets are handed to them Recommendation: For recruits, only allow a minimum number of tickets at once in the objective of reducing losses to a minimum ii.Transmit a letter to parents giving them information concerning the financing campaign and to sensitize them to the cause iii.When cadets hand in the money for their tickets, they must endorse this by putting their initials on the control document
Tagging : This activity normally lasts a week-end and has the advantage of being of short duration at the same time as revenues are maximized. i.Cumulate donations after each shift and keep an accounting up to date for the activity (for statistic purposes) ii.Always have multiple people handling the money. Transparency! iii.Make a deposit in the shortest time possible. If possible, make a deposit each day to avoid robbery or losses