Student organizations are responsible for establishing controls surrounding their financial processing.
Budgeting
- Prepare budget at beginning of term
- Set realistic targets; budgeted income should equal or exceed expenses
- Document assumptions used to determine budgeted income and expenses
- Format should be consistent with financial reporting format
- Obtain approval of the final budget from management and board
Financial Reporting
- List income and expenses by major category
- Format should be consistent with budget format
- Compare current year actual results to budget and prior year’s actual results
- Prepare financial reports throughout the semester and share with management/board
Cash Receipts
- Restrictively endorse checks "for deposit only, organization name" upon receipt
- Secure checks and cash in a locked area prior to deposit
- Make frequent deposits, at least weekly
- Maintain cash receipts log and record receipts in the checkbook
- Reconcile cash receipts log to bank statement each month
Paying Bills
- Establish process to review and pay bills by check at least monthly, don’t pay with cash
- Review vendor invoices and receipts prior to payment
- Ensure that two officers sign all checks
- Maintain copies of vendor invoices and receipts after payment
- Record checks in the checkbook on a timely basis
- Reconcile all checks written to bank statement each month
Bank Reconciliation
- Reconcile bank balance to checkbook balance each month
- Document all reconciling items
- Resolve errors identified
- Obtain officer and board approval for the reconciliation
Contracts
- Review draft contracts early in the process
- Refer to Student Organization Handbook for standard contract terms
- Send draft contract to Harvard College Student Activities Office for review
Roles and Responsibilities
- Separation of duties: two officers should handle all key financial duties
- Establish an officer transition plan; document key duties and maintain copies of budgets, financial reports, contracts, bank statements,checkbook, copies of paid invoices, etc.
See also: Best Practices - Finance