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Check disbursements

Procedures for cash disbursements are outlined for check authorizations, checks, and bank reconciliations.

Check authorizations

  1. All invoices will be immediately forwarded to the Accounting Supervisor who will review all invoices for mathematical accuracy, validity, conformity to the budget (or other board authorization) and compliance with bid requirements.
  2. Prior to payment, all invoices will be approved (indicated by initialing) by the Accountant, who will code the invoice with an appropriate expense or other chart of accounts line item number, class and job number (where applicable).
    • By approving an invoice, the Accounting Supervisor indicates that it has been reviewed by the Accountant and authorizes a check.
    • The Accounting Supervisor will ensure that all conditions and specifications on a contract or order have been satisfactorily fulfilled, including inventorying items received against packing slip counts. The  Accounting Supervisor is responsible for timely follow-up on discrepancies and payment.
  3. Approved invoices will be entered into the accounting system using the “Enter Bills” screen.
  4. The Accountant will prepare checks on a weekly basis.
  5. Authorized signers on Company accounts include the Executive Director, Chair and Treasurer of the Board.


  1. The Accountant will be responsible for all blank checks.
  2. All checks, including payroll checks (with the exception of direct deposit payroll items) will be signed by the Executive Director or designated members of the Board of Directors.
  3. The Accountant will generate checks for approved invoices through the accounting system using “Pay Bills” and/or “Write Checks” screens where appropriate.
  4. Voided checks will have "VOID" written boldly in ink on the face and have the signature portion of the check torn out. Voided checks will be kept on file.
  5. In no event will:
    • invoices be paid unless approved by an authorized signer
    • blank checks (checks without a date or payee designated) be signed in advance
    • checks be made out to "cash", "bearer", "petty cash", etc
    • checks be prepared on verbal authorization, unless approved by the Executive Director
  6. In the event that it is necessary to issue a duplicate check for checks in an amount over $15, a stop payment will be ordered at the bank on the original check.

Bank reconciliations

  1. Bank statements will be received directly and opened by the Accounting Manager.
  2. The  Accounting Manager  will reconcile the bank statement monthly. 
  3. The Treasurer of the Board will receive monthly statements of checks paid on all accounts. 
  4. The Executive Director shall verify the reconciliation of the bank accounts on at least a quarterly basis. 
  5. On all checks outstanding over 90 days, the  Accounting Manager should take appropriate action. 

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