Financial Controls Flow Charts
These flowcharts are representative of a system of financial controls. They may not be workable in all situations depending upon availability of staff and volunteer leaders. Adoption of these or any other processes does not provide absolute assurance of financial integrity in the absence of periodic audits and other controls.
For each of the processes, the flowcharts seek to depict the essential elements of control.
(1) Counting by more than one unrelated person; (2) immediate deposit; (3) receipts to donors; (4) verification of deposits against bank statements by persons who have not touched the cash/checks.
(1) Budgeted expenses; (2) established approval regime; (3) payment only against prior approved purchases; (4) check writer different than check signer.
(1) Approved card users; (2) documented purchases; (3) approval of purchases by another party; (4) matching of approved purchases to statement; (5) card payment following purchasing regime.
Payments may be originated either in the vendor system (e.g., telephone company) which authorizes a bank draw; or the process is initiated through the bank account. Controls must be constructed accordingly. (1) One person may process electronic payments – no shared login or password; (2) processor is not approver of payments; (3) bank and vendor statements come to person other than payment processor; (4) statements matched to approved payments.
Flowchart color coding depicts “separation of duties” which must be a required element of all transactions.