The Board of Directors of Compass for Hope Inc. will annually appoint a Finance Committee who works under the Board of Directors to ensure the appropriate preparation of an annual budget, appropriate handling, and distribution of funds, and the appropriate preparation and presentation of regular financial statements. The Finance Committee directs, reviews, and presents the annual audit to the Board of Directors.
Board approval is necessary in order to spend significant funds or make significant financial commitments to projects that have not already been incorporated into the approved budget.
On December 4, 2019 the Board of Directors met and discussed using organizational funds to help the homeless or poor pay bills when necessary. The Board unanimously supports the director’s discretionary spending on these types of special needs cases of others.
All income intended for Compass For Hope, Inc. will be properly received, deposited, recorded, reconciled, and kept under adequate security. Any cash received must be promptly and fully deposited.
All grants and gifts will be properly received and recorded. Compliance with terms of any related restrictions will be monitored by the Director and Board of Directors, and reported to the Finance Committee. Pledges are recorded at the time they are made. Thank you letters to donors are in compliance with IRS regulations.
Donated goods and services are recorded in the accounting records when they would have been purchased if they were not donated. Gifts are recorded at fair market value.
Expenditures for land, building and equipment are recorded at cost. Donated assets and capitalized donated leases are recorded at their estimated fair market values at the date of donation. Depreciation expenses are calculated using the straight‐line method and the following estimated useful lives:
Buildings and improvements 10‐35 years
Furniture and equipment 3‐10 years
Vehicles 3‐5 years
Maintenance and repairs, which materially add to the value of the property or appreciably prolong its life, are recorded as an increase to the appropriate asset account. Compass For Hope, Inc. capitalizes all fixed assets with a cost greater than or equal to $1,000 and a useful life of at least three years, unless otherwise stipulated by a grant. When an asset is purchased through a grant, the grant’s capitalization rules apply. Compass For Hope, Inc. will conduct a regular inventory of fixed assets and maintain a central list of fixed assets which includes date of purchase, registration numbers, warranty information, original cost, and estimated life.
A petty cash fund may be maintained by staff to facilitate efficient operations. Such petty cash funds will be disbursed only for proper purposes, will be properly recorded, and will be adequately safeguarded at all times. XI.
Credit card/Debit Card
Compass For Hope, Inc. may maintain credit card accounts to facilitate efficient operations. Credit cards will only be issued in the name of specific volunteers with specific credit limits as appropriate and will be adequately safeguarded at all times. All credit card and debit card transactions will be only for proper purposes and will be properly recorded.
Disbursements Funds will be disbursed only upon proper authorization of management and only for valid business purposes. All disbursements will be initiated only from properly authorized documentation and will be properly recorded.
Reconciliation of banking/security statements
All banking/security statements will be delivered unopened to a designated individual who is not otherwise involved in the preparation of checks, the depositing of funds, or is an authorized signer of checks. This designated individual shall review and initial each statement on a timely basis. An appropriately qualified finance staff person will reconcile each bank account monthly prior to the issuance of financial statements.