Accounting Standards & Financial Management
WHEREAS Article IV, Section 7 of the Corporate Bylaws empowers the Board of Directors (“Board” or “Directors”) of the Recreation Centers of Sun City, Inc. (“RCSC” or “Corporation”) to adopt policies not in conflict with the Restated Articles of Incorporation (“Articles”) or the Corporate Bylaws (“Bylaws”).
WHEREAS to minimize inconsistencies, misunderstandings and misinterpretations inherent in verbal instructions, rules and regulations, the Board of Directors has established Board Policies (“BP” or “Policies”) in written form. Such Policies shall be titled, numbered and indexed for easy reference and use.
WHEREAS the Restated Articles of Incorporation (“Articles”) and the Corporate Bylaws (“Bylaws”) shall take precedence over Board Policies and that the following Board Policy regarding Accounting Standards and Financial Management shall provide instruction, direction and guidelines regarding such and shall remain in effect until such time it is amended or removed.
NOW, THEREFORE BE IT RESOLVED the Corporation shall adhere to the following accounting standards and financial management policy:
1. Accounting Standards
All financial records and accounts of the Recreation Centers of Sun City, Inc. shall be maintained in accordance with Generally Accepted Accounting Principles (GAAP) as promulgated by the Financial Accounting Standards Board (FASB).
A. Capitalization of Expenditures
i. Items that have a life span in excess of five years and cost $5,000 or more may be capitalized. Only expenditures that increase the value of an asset or a replacement of an asset shall be considered capital expenditures and therefore capitalized. Expenditures made for the repair or maintenance of a current asset will be expensed.
ii. Items that cost less than $5,000 but are a part of a larger project that is being capitalized may be included in that capitalized project. The location and use of a particular item will be taken into account when the determination is made.
iii. Decisions to capitalize or expense any item will be made by Management based on good business practices. A Certified Public Accountant will verify such in the annual audit procedure.
iv. Accounting shall maintain records of each capital and major repair and maintenance project for each location, whether capitalized or expensed, so an account of project expenditures by location can be reported.
2. Financial Management
Management is responsible for establishing specific internal control policies and procedures to include, but not limited to, authorization, segregation of duties, safeguarding, recording and depositing, reconciliation and review. Every RCSC employee is responsible for ensuring that established internal controls are followed and applied.
A. Cash Management
i. Check Signatures
a. Payroll Account Transfers and PayrollChecks
Transfers from the Operating account into the Payroll account can be made with two authorizing signatures, one being a Board Officer.
Payroll checks require facsimile signature of the General Manager, or signature of the General Manager, Assistant General Manager or a Board Officer.
The payroll account must be reviewed and reconciled by someone other than the payroll clerk or any signer on the account.
b. Operating Account Transfers and Operating Checks
Transfers to and from the Operating account(s) can be with two authorizing signatures, one being a Board Officer.
No facsimile signatures are allowed on operating checks. All operating check stubs must be initialed acknowledging approval for payment by the Division/Department Director and/or Manager. All operating checks require two signatures, one of which must be a Board Officer.
Operating account(s) must be reviewed and reconciled by someone other than the accounts payable clerk or any signer on the account.
BE IT FURTHER RESOLVED that a copy of this resolution shall be posted on the RCSC website for members and shall be made available to members upon request at no cost.
Adopted and signed this 26th day of April, 2012 at a duly called Board meeting by a majority (5) of the Recreation Centers of Sun City, Inc. Board of Directors.