Accounting, Auditing and Governmental Reporting Policy

Washington County Community Foundation Policy on Accounting, Auditing and Governmental Reporting


The Foundation shall establish a central clearing account through which all disbursements shall be made. All disbursements shall be made by check or electronic transfer, both requiring two signatures. Monthly financial statements or summaries shall be prepared. A chart of all accounts or funds maintained by the Foundation shall be established. All funds of the Foundation shall be subject to annual audit or review. All gifts or funds shall be deposited promptly upon receipt. All gifts shall be acknowledged in a timely fashion.

The Foundation shall prepare and operate from a budget covering operating expenses. The Finance & Audit Committee shall prepare and submit to the Board at its last meeting before the end of the fiscal year, a proposed comprehensive budget showing expected receipts and income for the ensuing year.

Internal Fund Audit: No less than annually, the component funds of the Foundation shall be audited on a fund by fund basis and reconciled to the computerized accounting system.

External Audit: The financial affairs of the Foundation shall be audited annually by an independent certified public accounting firm. Upon completion of the audit, the auditor shall meet with the Finance & Audit Committee to review the information and to discuss the appropriate remedy of any issues that may arise as a part of the audit. The Auditor shall be selected from a list of independent, qualified and experienced auditing firms, identified by issuing a request for proposals no less than every five years.

Governmental Filings: In accordance with federal regulations, the Foundation shall annually file the Federal Form 990 and shall make the filed document readily available to the public. The Foundation shall annually file the Form BCO-10 with the Pennsylvania Charities Bureau. The Foundation shall file all required local filings.

Form 990s and Audited Financial Statements: In an effort to be accountable and transparent to the community we serve, the Foundation’s Audited Financial Statements and Form 990s shall be posted to the Foundation’s website.

The Foundation shall capitalize fixed asset purchases greater than $5,000, over the useful life of the purchase.

The Finance & Audit Committee shall annually consider and approve proposed award distributions from permanent funds which are not predetermined contractually and where the proposed award differs significantly from the straight calculation using the Board approved payout rate for the current year.

The Finance & Audit Committee shall conduct an annual review of all insurance policies and shall renew, negotiate and recommend purchase of such coverage as is necessary to protect the assets of the Foundation. In reviewing risks to be insured, the Committee shall be assisted by the Chairman who shall make suggestions concerning hazards arising out of the real estate, equipment, supplies, personnel and activity.

Investment Earnings: When applying market changes to the Foundation’s investment accounts, the change in market value shall be posted net of all investment and brokerage fees.

In-Kind Gifts: The Foundation routinely receives in-kind gifts from Trustees and from businesses over which our Trustees have influence and others within the community. To appropriately account for such gifts on the financial statements of the Foundation, the following guidelines shall be utilized:

    In-kind gifts of office space and office equipment – The fair market value of such gifts shall be determined on an annual basis. Each month, the statements shall reflect an in-kind contribution and offsetting expense for such donations.

    Donated Professional Services – Because so many of our Trustees donate their professional expertise, whether legal, accounting, finance, etc., accounting for such donated services could easily become cumbersome. Therefore, donated professional services shall be reviewed on a case by case basis to determine whether a contribution and corresponding expense should be booked.

    Courtesy Discounts - If an invoice is received for services rendered that includes a courtesy discount, whether from a trustee or other person, this courtesy discount shall be booked as an in-kind contribution and the full cost of the service booked as an expense in the financial statements.

The Foundation shall annually adopt a Financial Resolution authorizing the current officers to conduct business on behalf of the Foundation. The resolution is as follows: Action Item: RESOLVED, that any two of the following officers of the Washington County Community Foundation, Inc., working in the best interests of the corporation, are hereby authorized and empowered to sell, assign, transfer and/or deliver any and all stocks, bonds, evidences of interest and/or indebted- ness, rights and options to acquire the same, and all other securities, corporate or otherwise, now or hereafter standing in the name of, or belonging to, this corporation in any capacity: Trustee Name, Chairman; Trustee Name, Vice Chairman; Trustee Name, Secretary; Trustee Name, Treasurer; CEO Name, President & CEO.

Inter-Fund Transfers: To most accurately report revenues and expenses, the Foundation shall negate the revenue and expense amounts for all inter-fund transfers through offsetting entries to a contra fund, effective January 1, 2020.

Date of Adoption: October 22, 2020

Date of Last Revision: April 22, 2021