Subject: Inspection Report (III) (fwd)

From: Hongguang Zhou <[email-masked]>
Date: Fri, 19 Nov 1993 02:21:47 -0500 (EST)

---------- Forwarded message ----------
From: [email-masked]
To: [email-masked]
Subject: Inspection Report (III)
     
				SEVEN MORE ITEMS
			     FOR TREASURER'S DUTIES

1. The treasurer must see that all financial events are recorded in an
appropriate manner.

2. The treasurer must ensure that accurate and meaningful financial 
statements are prepared reflecting clearly what has happened during a 
given period.

3. The treasurer is responsible for safeguarding the assets of the IFCSS
through appropriate controls.

4. The treasurer is responsible for the prudent management of financial 
assets. This means, among other things, that excess cash is judiciously
invested to ensure optimal financial return.

5. The treasurer must be able to anticipate financial problems of the 
IFCSS. A major tool in this regard is a carefully prepared budget.

6. The treasurer must ensure that an independent audit is conducted and 
that full consideration is given to the auditor's recommendations.

7. The treasurer must do all the above in accordance with the spirit and
the letter of the law of the land.  

			AN EVALUATION OF IFCSS'S
   			FINANCIAL/BUDGETARY SYSTEM

.....

E. Establishement of Vouchers System
Adherence to certain procedural details is a guarantee of accountability in
substance. A voucher is nothing but a documentary record of a formal 
financial transaction. To ensure a responsible accounting system, receipt 
voucher system and payment voucher system are recommended.

Receipt Voucher: Receipt voucher should be prenumbered consecutively and 
written for every incoming item of receipt. It is advisable to record on the
receipt voucher not only the name of the person whose account should be 
credited but also the name of the person making the payment. The receipt
should bear the signature of the person receiving the money. Checks should
be endorsed upon receipt.

Payment Voucher: Accounting for disbursements starts with proper authoriza-
tion for all disbursements. In the case of payments on budget appropriation,
the authorization is through action taken by the Council of the IFCSS.
Authorization procedures for purchases should be set up and placed in the
control of designated persons. A purchase order form is an effective means
of controlling purchases. The invoice for payment must be certified. Paid
invoices and statements must be date stamped, preferably by a perforating
stamp, to minimize possibilities of duplicate payments. Payment should be
made only against original invoices or statements.

F. Executive Oversight
The executive system established to monitor and review financial/accounting
activities has been ineffective and spotty. The oversight process lacks 
standarization and relies primarily on self-reporting by the treasurer, as
opposed to taking initiatives to make inquiries. It is strongly suggested
that the President and Vice President of the IFCSS should be familiar with
the financial/accounting procedures (not necessarily all the details) and 
see to it that the IFCSS's financial situation is healthy at any point of
time.

	To foster an effective communication between the treasurer and the
President and Vice President, the treasurer should be obliged to keep them
informed with the detailed information plus professional judgments.