Scouts-L Mail Archive for February of 1999: How many signatures?
How many signatures?
Wed, 17 Feb 1999 09:57:05 -0600
Mike Walton suggested that a unit should require THREE signatures on a check.
Sorry, Mike, but you're applying the monitoring in the wrong place. Separation
of duties would be a better option. Someone without signature authority should
receive the statements DIRECTLY FROM THE BANK and check the statements against
the checkbook. It's a relatively simple process to assure that all of the
checks and deposits are valid and that the balance in the account is what it
should be. Anything not specifically authorized should be investigated. That
person then signs off on the statement and passes it to the treasurer.
Of course, the unit committee should also be receiving regular (monthly) reports
of all income and expense. These reports should list all payments, to whom, for
what, and how much. They should also list all deposits and reconcile to the
bank statement. BTW, the committee only RECEIVES the report, they don't APPROVE
it since they probably don't have expertise in that area.
All expenditures should be approved by the committee. Most appropriately, this
approval should be made prior to the expenditure as in authorizing the equipment
chairperson to purchase x items at a cost not to exceed x dollars. Anyone
making a purchase without advance approval should remember that they might not
get reimbursed if the purchase is not approved by the committee. With advance
approval, the treasurer should be able to reimburse the purchaser or write the
check directly to the supplier. Without advance approval, the treasurer should
not make payment until the committee has approved.
Another separation of duties: The treasurer does not APPROVE purchases, he or
she writes the checks based on committee approval. Some units may pre-authorize
reimbusement for recurring expenses (such as awards) and direct the treasurer to
pay those bills automatically. Others may charge them to a unit account in the
council store. In such a case, these accounts should be reconciled periodically
to assure that all charges are valid (right amount, right unit, etc.). The
treasurer should have clear guidelines on what is authorized.