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The document emphasizes risk review and board oversight, then defines segregation of fiscal roles (custody, authorization, execution, monitoring) to reduce conflicts of interest. It details receipt of funds controls, including depositing intact funds, handling restricted contributions with written confirmation, and procedures for check and cash processing.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":41,"@type":70,"position":76},"https://docshare.wps.com/template/letters/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/financial-controls-policies-and-procedures-for-small-nonprofit-organizations-part-7-financial-controls-policies/252580/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/financial-controls-policies-and-procedures-for-small-nonprofit-organizations-part-7-financial-controls-policies/252580.png","ImageObject",442,249,{"name":88,"@type":89},"Theodore","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-10-19","2026-09-13",true,{"@type":98,"interactionType":99,"userInteractionCount":8},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"What is the main purpose of these financial controls policies?","Question",{"text":108,"@type":109},"They focus on protecting and using nonprofit assets for the mission by preventing and detecting errors and fraud, and by ensuring donors’ gifts are used for their intended purposes.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"How does the document recommend segregating financial roles?",{"text":113,"@type":109},"It separates custody, authorization, execution, and monitoring duties so that the same person does not authorize, execute, and monitor the same transaction, and at least two individuals verify each step.",{"name":115,"@type":106,"acceptedAnswer":116},"What procedures are required for receiving checks and cash?",{"text":117,"@type":109},"For checks, the Secretary opens mail, photocopies checks, provides copies to the Treasurer, and endorses checks “For Deposit Only.” For cash, the person accepting cash provides a written receipt using a pre-numbered receipt book, keeps records secure, and ensures proper custody and counting.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},252580,1790615397,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":40,"category_name":41,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":8,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":135,"language":136,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":61,"update_tm":140,"read_time":47},7971461740886,"https://ap-avatar.wpscdn.com/davatar_3d24733baf745e90a7e4bdd5f77d97b2","By Cindy Cumfer  \nNOTE: These policies and procedures are designed for small nonprofits that do not have an administrator with financial expertise. They are set up to divide the fiscal control roles between two people, the Secretary and Treasurer. You can use any two competent, unrelated people. As you grow in capacity, you should increase the number of people involved to improve the segregation of the roles. When you can afford to do so, you should have these reviewed by an accountant who can tailor financial controls to your organization.  \nThe policies describe the risks that each policy is designed to address. The Board or whoever develops and adapts your control policies and procedures should design them with the risks in your particular situation in mind.  \nFINANCIAL CONTROLS POLICIES AND PROCEDURES FOR SMALL NONPROFIT ORGANIZATIONS  \nPurpose. We are a nonprofit organization committed to protecting and using our assets for our nonprofit mission. Proper financial practices are very important in doing this, since proper practices help to prevent and detect errors and fraud. Good financial practices also assure our donors that we use their gifts for the purposes for which they were intended.  \nI. GENERAL PRACTICES  \nReview of Risks. These policies were drafted after consideration of the risks associated with the various aspects of our financial operations to enact policies and procedures designed to minimize those risks. The Board will review these policies each year to consider whether the risks have changed. Such changes may include receipt of grant monies for the first time or receipt of grants with restrictions, a change in the laws regulating our nonprofit, hiring of employees or a major change in our programs. If so, the Board needs to identify any new risks and adopt appropriate procedures to minimize those risks. The Board shall consult with a professional if necessary to ensure that it is properly addressing the risks.  \nSegregation of Roles. There are several fiscal “roles” in our organization—custody, authorization, execution, and monitoring. For example, the person who has authority to sign checks is acting in the custodial role. The person who approves payment of a bill is authorizing. The Board as a whole acts in an authorizing role when it approves the annual budget of makes a decision to purchase a major item like a copier. The person who prepares the checks for signature by an authorized check signeris acting in the execution role, executing an action that has been authorized by the Board through the annual budget or by the individual responsible for approving payment of the bill. The person who reconciles the bank statement acts in the monitoring role. The Board also acts in a monitoring role when it reviews the monthly financial reports to be sure that its plan—the budget—is being executed properly.  \nAs much as possible, the Board seeks to separate the responsibilities for fiscal roles so that at least  \ntwo and preferably more individuals fulfill these roles. It is particularly important that the same person does not authorize, execute and monitor any transaction. At each step of handling funds, the organization shall ensure that more than one person verifies that the step is done correctly.  \nII. RECEIPT OF FUNDS  \nRISKS  \nOur organization faces the risk that funds that we receive may be stolen or lost or that someone maybe falsely accused of stealing funds. We also face the risk that we may fail to record a restriction that a donor has placed on our use of funds.  \nPOLICY  \nAll funds, whether cash or check, which the organization receives will be deposited intact into the bank account, with no monies removed to make payments or for other purposes. All cash receipts should be deposited into the bank as soon as possible. This allows for a complete accounting and independent verification of what happens to our funds. Communications from donors that establish restrictions on the use of their contributions","cbCaiesv9yZjpC0e","https://ap.wps.com/l/cbCaiesv9yZjpC0e","pdf",132584,13,"English","# Purpose\n## I. General Practices\n## II. Receipt of Funds\n## Risks\n## Policy\n## Procedures","[{\"question\":\"What is the main purpose of these financial controls policies?\",\"answer\":\"They focus on protecting and using nonprofit assets for the mission by preventing and detecting errors and fraud, and by ensuring donors’ gifts are used for their intended purposes.\"},{\"question\":\"How does the document recommend segregating financial roles?\",\"answer\":\"It separates custody, authorization, execution, and monitoring duties so that the same person does not authorize, execute, and monitor the same transaction, and at least two individuals verify each step.\"},{\"question\":\"What procedures are required for receiving checks and cash?\",\"answer\":\"For checks, the Secretary opens mail, photocopies checks, provides copies to the Treasurer, and endorses checks “For Deposit Only.” For cash, the person accepting cash provides a written receipt using a pre-numbered receipt book, keeps records secure, and ensures proper custody and counting.\"}]","Financial Controls Policies and Procedures for Small Nonprofit Organizations - Part 7 - Financial controls policies | PDF",1789262006]