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2020-21 Orange County Children's Therapeutic Arts Center <br />Youth Employment Program - WIOA Proposal <br />17.Fiscal Competency <br />A. Describe the process used to capture and report fiscal data. All invoices or vendor statements <br />will be initialed by the Executive Director prior to signing the check to pay that bill or invoice. <br />After checks are printed and signed, the accountant shall mark "Paid" with the date of payment <br />and check number utilized for payment. All disbursements shall be reviewed and approved by <br />the Executive Director. A monthly review of all disbursements shall be conducted by the <br />Accounting clerk and reviewed by the Executive Director and the Finance Committee for <br />verification of accuracy, documentation and appropriate approval. The Executive Director shall be <br />authorized to expend funds as approved by the Board of Directors under the organization's <br />annual operating budget. <br />B. Attach a copy of the organization's procurement policies and procedures as <br />Attachment i. Please see attached OCCTAC's Procurement Policies and procedures. <br />C. What systems are used to ensure fiscal accountability, appropriate expenditures, and planned <br />costs. All requests for reimbursement shall be reviewed and approved by the Executive Director <br />and Finance Committee. All reimbursements are subject to budgetary limitations as established <br />in the organization's approved operating budget. No reimbursements are made without <br />appropriate backup documentation. Please see details below of the accounting system used at <br />OCCTAC: <br />• Accounting Method: OCCTAC utilizes a modified accrual -based account methodology. <br />• Cost Allocation Method: Costs are allocated using the Direct Cost Allocation Method (OBM <br />Circular A-122). OCCTAC classifies each item to a specific program, department, site, grant or <br />contract that it directly relates to. Indirect expenses like general administration and general <br />expenses are allocated based on the allowable budgeted portion of each program with the <br />remaining portion to the center's administrative category. OCCTAC shall produce financial <br />reporting for each of the Center's program functions. In consolidation, these programs shall <br />make up the overall financial position of OCCTAC. All transactions (Payments and cash <br />receipts) that occur at the center shall be classified under identified categories and <br />programs. When program funding is split between two or more sources, the cost allocation <br />for this program shall conform to the budget allocations established in the program. <br />• Budgets: Under the guidance of the Finance Committee and prior to the beginning of each <br />fiscal year, the Executive Director prepares an Operational Budget, including Program <br />Budgets. Tuition fees, Service fee rates, etc., shall be approved by the Board. Any gifts <br />(monetary or otherwise) resulting from fund-raising activities, solicitations and acceptance of <br />gifts or contributions that are presented with restrictions of use shall be approved by the <br />Board of Directors and submitted to the finance committee to verify the appropriate method <br />of accounting and reporting. <br />• Receivables: Receivables shall be aged monthly and delinquent accounts shall be followed up <br />for collection. Receivables from miscellaneous sources shall be reviewed periodically by the <br />Treasurer and significant amounts shall be reported to the Board of Directors. All write-offs <br />shall require approval from the Finance Committee prior to implementation. The Board shall <br />review all write-offs from uncollectible accounts receivables. <br />24 <br />25B-45 <br />