Overview

As additional evidence to determine fiscal stability in terms of internal controls, CARF requires fiscal policies and procedures, including internal control practices.

Accreditation Requirement(s)

The program should have the following written policies and procedures, such as:

• Cash flow analysis, cash control, and fraud
  
• Working capital and contingency funds
  
• Investment of funds
  
• Contributed materials and funds
  
• Inventory of capital equipment

Implementation Tips

Some Implementation Tips provided, in part, by Robert Johnson at: www.accreditationnow.com.

• Throughout the sample policies, within parentheses there are names that indicate several possible persons who could be in charge of the procedures in the policy. Titles and positions vary from organization to organization. The organization can determine who fits the roles described in the policy and insert specific titles of those employees, as appropriate.
  
  
• The level of detail of an organization's fiscal policies and procedures is usually determined by the complexity and size of the organization. Many human services organizations operate without any written fiscal policy and procedures until a mandate requires it.
  
  
• These examples of fiscal policies and procedures are basic and simple templates to meet the minimum requirement for conformance to CARF standards and should not be a substitute for their revision in a manner that portrays accurately how the organization's fiscal system operates and functions.
  
  
• By developing written fiscal policies and procedures, or revising current ones, an organization can assure continuity of fiscal operations should the person or persons who are managing the less formal fiscal system (facts in their heads) suddenly leave the organization. In addition, written policies require organizations to "think through" their practices and improve them through this process.
  
  
• Regarding capital inventory, it is up to the organization's leadership to determine at what cost level a piece of equipment becomes a capitalized asset. This level of cost varies from organization to organization within a typical range of $100 to $500. For the purposes of this sample policy, a capitalized asset is defined as a product purchased that has a useful life of greater than one year. It is important to differentiate supplies from equipment, and this differentiation should assist you in determining at what cost level you designate a piece of equipment as a capital asset.