Separation of Duties Policy

Purpose

The purpose of this policy is to ensure the proper handling of the organization’s financial resources by establishing clear procedures and separating key financial duties.This helps top revent fraud, promote accuracy and reliability in financial reporting, and safeguard the organization’s assets.

Scope

This policy applies to all employees, volunteers, board members, and contractors involved in the financial processes of BridgeWell Foundation.

1. Internal Controls
   • Physical Controls:
     • Financial records should be stored in a secure location.
     • Access to financial records should be limited to authorized personnel.
   • Regular Audits:
     • An internal audit should be conducted annually to ensure compliance with this policy.
     • An external audit will be conducted annually which includes an independent review of internal controls.
   • Financial Report:
     • The Finance Director will reconcile all asset accounts monthly, any discrepancies must be investigated and resolved before closing.
     • Monthly financial reports should be prepared and submitted to the Boardof Directors.
     • Quarterly and annual financial statements should be prepared and reviewed by the Finance Committee.
2. Segregation of Duties Policy
   • Handling Procedures:
     • Receiving Cash:
       • All cash should be recorded immediately upon receipt.
       • Cash received must be counted and verified by at least two individuals together.
       • Cash should be securely stored and deposited into the organization’s bank account within 2 business days of receipt.
     • Petty Cash:
       • The petty cash fund should be comprised of a fixed amount for individual events, and all transactions should be documented.
       • The petty cash fund should be reconciled at the end of each event by two individuals other than the Finance Director.
     • Authorization:
       • No single individual should have control over all aspects of any financial transaction.
       • Duties should be divided among employees to ensure no one person is responsible for both the authorization and execution of financial transactions.
     • Review and Approval:
       • All expenditures must be approved by Executive Director.
       • Monthly financial reports are reviewed by the Board of Directors. On a quarterly basis financial reports are reviewed by the Finance Committee with quarterly and annual approvals made by the full Board.
3. Whistleblower Policy:
   • Any suspected fraud or financial misconduct should be reported immediately to the Executive Director or Board President. The organization will protect whistleblowers from retaliation.
   • Refer to BridgeWell Foundation’s Grievance Policy.

Policy Review

This policy will be reviewed periodically and updated as needed to ensure that it meets legal requirements and organizational needs.

Approval

This Budget Policy was approved by the Board of Directors on 8/26/2024.