INTERNET SOCIETY ACCOUNTING PROCEDURES The staff members below will be referred to by position in the procedures which follow: Office Manager Mary Burger Membership Services Assistant Michele LeComte Accountant Bev Hernandez Receptionist Carol Gray Director of Conferences Donna Leggett CASH RECEIPTS - CREDIT CARDS 1. All credit card payments received shall be entered in a credit card payment log. 2. The credit card payments shall be entered into the electronic processing system for authorization and transmittal to the bank on a regular basis by the Membership Services Assistant. 3. Credit card batches for American Express charges will be made separately from the other credit card charges which may be processed together (Visa, MC). 4. After a batch is processed and the electronic processing report printed and verified, the transactions which have been accepted are then recorded as payments received into the membership system. 5. A receipts report is printed from the membership system and compared to the electronic processing report. Any discrepancies are investigated and corrections made if necessary. 6. The Membership Services Assistant then gives the Accountant the electronic transaction report stapled to copies of the supporting documentation and a receipts report. The Membership Services Assistant files the originals of the supporting documentation in the individual member files. 7. The Accountant verifies that the total amount electronically transmitted matches the total amount recorded as received. If she notes any discrepancies, these are resolved. 8. For all credit card batch transmittals except American Express batches, the Accountant records the deposit in the check register and files the batch information in the bank file for that month. 9. The Accountant keeps American Express batches in a separate folder, and as a part of the bank reconciliation, matches each batch with it's appropriate electronic deposit and records the electronic deposit and the related credit card processing fee. The matched batches with supporting documentation are filed in the bank file for the month in which the deposit was received. CASH RECEIPTS - CHECKS AND CASH 1. The Receptionist shall open the mail and record all check and cash receipts in a check log on a daily basis. The Receptionist will use the stamp and endorse each check for deposit only to the ISOC checking aDirector of Conferencesount. A separate check log sheet shall be made for each day and the receipts totaled. 2. Each day the checks and/or cash along with copies of the supporting documentation and the related check log are given to the Office Manager. 3. The Receptionist photocopies the documentation and makes 2 copies of each check. 4. The Receptionist gives the Membership Services Assistant a copy of each organizational dues check and the original documentation and a copy of each individual dues check and the original documentation. 5. The Membership Services Assistant enters the organizational dues payment into the membership system. 6. The Membership Services Assistant files the check copies along with the original documentation in the organizational member files. 7. The Membership Services Assistant records the receipt of all individual membership dues in the membership system. She files a copy of each check with the original supporting documentation in the appropriate member files. 8. For miscellaneous receipts (conference registrations, requests for provider packets, etc.), the Receptionist gives a copy of the check and origianl documentation to whoever should handle it (this varies with the particular project, etc.) 9. The Office Manager, after reviewing the check logs and checks, gives the Accountant the original checks with a copy of each check (individual dues, organizational dues, and miscellaneous receipts), copies of the supporting documentation for all receipts, and the related check logs. 10. For each deposit, the Accountant makes sure each check has been properly endorsed and runs an adding machine tape to get the total amount of the checks and cash to be deposited. She then compares this total with the combined totals of the individual dues received + organizational dues received + miscellaneous receipts. She also compares the total with total of the related check log(s) being deposited. Any discrepancies are resolved. 11. The Accountant prepares a deposit slip showing the deposit amount and photocopies it. The photocopy is stapled to the top of a deposit package, which contains the adding machine tape totalling all checks and cash, all check logs, copies of all checks and supporting documentation for all receipts. On the front of the packet, the Accountant writes the allocation of the deposit to the appropriate accounts (Ind. A/R, Org. A/R, Procedure Sales, etc). The Accountant records the deposit in the check register along with the allocation of the deposit. The packet is filed in the bank file for the month. The Accountant makes the deposit on the same day as the deposit is prepared. The bank receipt is then stapled to the top of the deposit packet. CASH RECEIPTS - ELECTRONIC TRANSFERS 1. We first learn of an electronic transfer received via a mail notice from the bank. 2. The Receptionist stamps it received and photocopies it. 3. The original goes to the Accountant for recording in the check register and appropriate account. 4. The copy goes to the Membership Services Assistant to be recorded in the membership system as a payment received. 5. For miscellaneous wire transfer receipts, a copy is given to anyone who has a need to know of the receipt (conference registrations, etc). CASH DISBURSEMENTS 1. All purchases, except those on the list of regularly recurring transactions, should be requested on a purchase requisition. 2. Purchase requisitions should be approved by the President or Chairman of the Board before a purchase commitment is made. 3. When an invoice for a purchase is received, the requestor should initial the invoice to verify that the purchased item has been received. 4. The invoice should also be stamped with an area to write the Accountant to which it should be charged as well as a place to write the date of payment and the check number. 5. The Accountant matches the invoice along with the approved purchase requisition and any supporting documentation. 6. The Accountant writes the account number to be charged on the invoice and enters the obligation to pay in the accounts payable system. 7. The Accountant prepares the check and presents it to the President or Chairman of the Board for signature along with the related invoice packet. Checks for $10,000 or more require two signatures. 8. After the check has been signed, it is photocopied. A photocopy of the check is stapled to the top of the invoice packet and filed alphabetically by vendor. 9. The original check is mailed to the vendor along with appropriate identifying documentation. 10. The Office Manager may use a corporate credit card to charge office supplies to take advantage of lower prices at discount office supply stores. Receipts for these charges shall be given to the Accountant so she can match them with the month-end credit card statements. The statements and associated receipts shall be reviewed by the President before the associated check is signed. RECURRING PAYMENTS WHICH DO NOT REQUIRE PURCHASE REQUISITIONS BUT WHICH ARE REVIEWED FOR REASONABLENESS AND ACCURACY 1. Federal Express - Office Manager checks invoice against shipping sheets and ok's for payment. 2. Staples Office Supplies 3. Bell Atlantic 4. MCI - long distance service 5. Guardian - employee fringe benefit insurance; automatically deducted from checking account. 6. PrimePay - monthly payroll processing fee 7. UUNET - monthly invoice for line charges 8. AMS-TMS - replenishment of postage meter when it gets low 9. United Business Machines - maintenance contract for copier 10. Ascom-Hasler - maintenance contract for postage machine 11. Aetna - rent for office 12. Bev Hernandez - Accountant fees - approved by President initial on invoice. 13. CNRI - miscellaneous - approved by President initial on invoice. 14. Newsletter costs - Rickard Associates, postage - approved by President initial on invoices EXPENSE REIMBURSEMENTS 1. Each employee who, in any given month, has local or travel reimburseable expenses (mileage, tolls, parking, etc.) shall, shortly after the end of each month, submit an expense report for approval and reimbursement. 2. Receipts should be stapled to the back of each report; in any event, expenses of $25 or more must have receipts attached. 3. Receipts for meals or entertainment should have the names of the persons attending as well as the business purpose of the activity, if persons other than the submitting employee are involved. 4. Mileage shall be reimbursed at the current IRS approved mileage rate (currently 30 cents per mile). 5. Expense reports shall be submitted to the President for approval. 6. After approval, the expense reports shall be given to the Accountant to be entered into the accounts payable system. 7. In a timely manner, the Accountant will prepare a check for payment and submit it to the President for signature. TRAVEL EXPENSE REIMBURSEMENT 1. When it is necessary for a staff member to travel on ISOC business, the staff member (or any other person whose travel is to be paid by ISOC) shall submit a travel request to the President or Director of Conferences for approval. The request shall include at least the proposed dates, estimated cost (transportation, hotel, subsistence, & any unusual expected expenses), and purpose of the trip. 2. Upon approval of the proposed trip, arrangements may be made. 3. Upon return from travel, the traveler shall prepare a travel expense report. Transportation, lodging, meals and miscellaneous costs should be itemized, and it should be noted whether the expenses have been charged to ISOC or paid out of pocket by the traveler. 4. Receipts shall be attached for all expenses if possible and at least for all expenses of $25 or more. If meals are paid for anyone other that the approved traveler, the receipt should note the name(s) of others for whOffice Manager expenses were paid and the purpose of the meal/meeting. 5. Upon completion of the report, it should be submitted to the President or Director of Conferences for approval. The President's travel requests and expenses reports should be submitted to the Chairman of the Board for approval. This may be done via e-mail. 6. Approved expense reports shall be given to the Accountant so she can match any expenses which have been charged to the corporate American Express aDirector of Conferencesount, record the expenses in the general ledger, and prepare a check for any reimbursement which is necessary. 7. If any part of the travel is to be reimbursed to ISOC by an outside party, the Office Manager will send an invoice to the party so ISOC can be reimbursed as soon as possible. 8. When a check is for outside reimbursement is received, it shall be deposited as a miscellaneous receipt in the ISOC bank account and the amount credited to the travel expense account.