Deseret UAS (DUAS) is a 501c(6), nonprofit corporation in the state of Utah organized to promote economic development in Tooele County and to elevate Utah’s profile in the UAS industry. Initial funding through a grant provided by the State of Utah to Tooele County. Additional funding is expected to be in the form of grants and user fees.
DUAS fiscal internal controls protect DUAS stakeholders, especially the public funding, ensure the integrity, reliability of its information and ensures the performance of its business transactions.
Internal Controls are an ongoing process that is established, regularly reviewed and monitored by the executive director and board of directors.
It is the responsibility of the board of directors to ensure a financial control system is actually implemented and used. It is the executive director’s responsibility to establish and maintain adequate financial control reporting. It is the responsibility of all employees and contractors to understand controls and ensure they are effective. The board of directors is responsible for authorizing establishment of all bank accounts and identification of check signers and, following the transition of officers or changes in staff, notify the banking institutions.
No bank or other account may be maintained except in an institution fully insured by the FDIC or NCUA. Bank balances shall generally not exceed the insured limits absent authorization of the board of directors.
Investments shall reflect cash flow requirements of DUAS and shall not exceed one year without board approval.
All financial transactions will be maintained and managed by the designated accounting software.
Financial reports shall be presented to the board of directors for review on a monthly basis, including comparison of actual to budget. A weekly report of expenditures will be presented to the board of directors for review.
An annual financial compilation, review or audit will be conducted by an outside qualified auditor/CPA. Applicable financial and administrative guidelines relating to specific grant funding shall be followed to insure compliance.
Incoming checks must restrictively endorsed, “for deposit only” with DUAS’ account number when received. Incoming checks/cash must be counted and logged and receipts/bank deposits developed by two or more persons authorized to perform these functions.
DUAS is not expected to handle cash, however cash receipts will be deposited within five business days. Cash collection documentation totals will be compared and reconciled to bank deposit receipts. Items held for deposit shall be maintained in a locked container or filing cabinet.
Bank deposit receipts will be compared and attached to the original bank deposit slips. Grants and other fees received in bank account electronically via Electronic Funds Transfer (EFT) will be posted to accounting software in a timely fashion.
- Disbursements Authorization
The executive director, with board of director’s approval, must provide approval for all disbursements. Supporting documentation must accompany checks when presented for signature. The executive director will notify the board of directors of all expenditures greater than $2,500. The manager with financial responsibility will enter the approved expenditures into QuickBooks, the designated accounting software. The financial officer will release the funds. The treasurer will review the financial transactions.
All vendors must complete a vendor registration, execute a contract or agreement for services or products, and provide an IRS W9 form before payment will be issued. Recurring disbursements, based on an agreement approved by the board of directors, may be set up electronically with vendor via Electronic Funds Transfer. These include, but are not limited to, rent, utilities, and contractors.
- Check Disbursements
It is anticipated that DUAS will issue very few check, rather will electronically process payments. When using checks, only pre-numbered checks shall be used and always in sequence. Signing of blank checks is strictly prohibited. Checks must be made payable to specific payees based upon appropriate documentation; and never to “cash” or “bearer”. Prior to preparing checks, receiving reports should be compared to vendor invoices for accuracy. Checks must be prepared from vendor invoices only and not from a vendor statement. Signature stamps may not be used to sign checks. Access to blank checks must be limited to persons authorized to prepare checks. Blank check stock must be locked in a secure place when not in use. Any voided/spoiled checks must be marked “Void”. No staff member (or contractor) preparing a check may be an authorized signer on the check.
- Electronic Fund Transfer
Electronic fund transfer (EFT) is the same for writing checks except for the method of making the payment is different. When making an online payment, all of the documentation and authorizations necessary for any disbursements should be obtained prior to making the payment. Further, a form will be kept on record containing information from the vendor showing the payee, the name of the payee’s bank account, the routing number for the receiving bank, addresses for the payee and the bank. Additionally, the transaction processed online, will be printed and kept as a record. For all electronic fund transfers, it will need one other approval before the transaction can take place.
- Debit/Credit Card
The executive director is authorized to receive and use debit and credit cards linked to the designated bank account. Debit and credit cards provide a convivence in securing services and purchasing supplies. Debit/credit card transaction is same as writing checks except for the method of making the payment is different. When making a debit or credit card charge, all of the documentation and authorizations necessary for any disbursements should be obtained prior to making the charge. All debit/credit card transactions must be recorded and reconciled to the bank account. Transaction receipts must be retained for verification of charges.
Bank accounts must be reconciled on a monthly basis and reviewed. The executive director will receive the bank statements, including canceled checks, etc. All check numbers must be accounted for as either cleared or outstanding as part of the reconciliation process. Checks outstanding over 90 days must be periodically investigated, with payment stopped and an entry made restoring such items to cash if appropriate.
Tax and Other Filings
The DUAS annual tax filing will be prepared by an external CPA. The auditor or audit firm shall be subject to reasonable rotation with a maximum contract term or audit period of not to exceed five years. The audit shall conform to recognized professional standards and shall provide to the Board a management letter which shall specifically address internal control policies, procedures, and practices. Other related financial reporting as required by grant agreements will be prepared and submitted by the executive director.