OUR KIDS OF MIAMI-DADE/MONROE, INC. OK Operating NO Revised Date: January 24, 2011 Revised Date: August 25, 2009

Transcription

1 OUR KIDS OF MIAMI-DADE/MONROE, INC. OK Operating NO Revised Date: January 24, 2011 Revised Date: August 25, 2009 Our Kids Finance Department Merchant Gift Cards 1. Purpose: This document describes procedures and internal controls for the purchase and use of Merchant Gift Cards. Merchant Gift Cards may be purchased and distributed to and/or by employees, Full Case Management Agencies (FCMAs), foster parents and clients in accordance with the requirements and needs. 2. Policy and Procedures: I. Accounting Policy a. Merchant Gift Cards are obtained through different sources with the following dollar limits and specifications: i. Gift cards purchased and distributed by Our Kids to Our Kids employees, providers, foster parents, clients or vendors may not exceed $500. ii. Gift cards purchased by Our Kids employees, providers or vendors that are reimbursed by Our Kids may not exceed $500 for each individual gift card and must be less than $25,000 for multiple gift cards purchased at one time. iii. Gift cards donated to Our Kids from providers, DCF, The Children s Trust and private entities are used for employees, foster parents and clients. The donated gift cards follow the same procedures for safekeeping and distribution as gift cards purchased by Our Kids. b. Authorization of gift cards is as follows: i. The Controller is authorized to approve gift card purchases for $1,000 or less. ii. The Chief Executive Officer (CEO) and Chief Financial Officer (CFO) are authorized to approve gift card purchases for $25,000 or less. 1. If the CEO and CFO are not available, then gift card purchases for $25,000 or less require both the Controller and a Department Director or Officer. iii. The Board of Trustees is required to approve gift card purchases for greater than $25,000. II. Purchase and Safekeeping of Merchant Gift Cards: a. Gift Card(s) purchased by Our Kids or donated to Our Kids: i. Gift card purchases must be pre-approved by the CFO, CEO or Board of Directors, depending on the amount. ii. Gift Cards are purchased by Corporate Credit Card or check. 1. The majority of gift cards are purchased with the Our Kids Corporate Credit Card. See OK Corporate Credit Card Policy for procedures. a. The Senior Accountant prepares a journal entry to reclassify the purchase from accounts payable to the merchant gift card prepaid expense general ledger account. 2. Sometimes, gift cards are purchased by check. See OK Procurement of Commodities and Non-Contract Services Policy for procedures. iii. Upon receipt of all gift cards, the Senior Accountant records the gift card(s) individually onto the Gift Card Master Log. (See Attachment A). Merchant Gift Cards Policy OKOP Page 1 of 5

2 iv. Gift cards are kept secured in a locked fire proof safe under the Controller s supervision. v. Monthly, the Senior Accountant reconciles the gift cards amount to the general ledger. vi. Periodically, a surprise inventory audit is performed by a non-custodian accountant. 1. A hard copy of the Master Log is printed for the day. 2. The accountant records the physical count on the Master Log worksheet. 3. The accountant signs and dates the Master Log worksheet. 4. The Senior Accountant explains all variances on the Master Log worksheet. 5. The Assistant Controller verifies all explanations and signs the Master Log worksheet 6. The Master Log worksheet is scanned and saved on the Finance k: drive under Gift Cards. b. Gift card(s) purchased by Our Kids employees, providers or vendors require preapproval by Our Kids. i. A written request ( or letter) is sent to Our Kids CEO or CFO requesting approval with the following information: 1. Vendor name 2. Number of gift cards to be purchased 3. Individual gift card dollar amount 4. Total dollar amount of purchase 5. Intended end user(s) ii. A pre-approved notification by the CFO, CEO or Board Member, depending on the amount, is sent to the employee, provider or vendor as part of their supporting documentation. 1. The Finance department is copied on the . III. Distribution of Gift Cards a. Gift Card(s) purchased by Our Kids or donated to Our Kids: i. When cards are disbursed by Our Kids to an Our Kids employee, provider or vendor to distribute to specific individuals (e.g. a vendor performs a survey and sends a gift card to each person who completed the survey): 1. A Distribution Log is prepared by the Senior Accountant and includes the following information: See Attachment A. a. card vendor name b. card # c. card amount d. disbursement date e. identification of the intended user and purpose f. signature of Our Kids employee, provider or vendor g. Intended recipient s name and signature, documentation used as proof of delivery such as Certified Mail Return Receipt, or OK office representative signature. 2. The Finance Department has a binder (by month) that contains copies of the Distribution Logs awaiting clients or end user signatures. a. Monthly, the Assistant Controller reviews the logs to ensure that there are no logs outstanding for an unreasonable amount of time. 3. A copy of the Distribution Log is given to the employee; provider or vendor who is distributing the gift cards to the end user. a. The employee, provider or vendor must obtain either of the following: Merchant Gift Cards Policy OKOP Page 2 of 5

3 i. If the gift card is hand delivered to the recipient, the recipient must sign the log at the time the gift card is received. ii. If the gift card is mailed, it must be mailed by Certified Mail Return Receipt. The Return Receipt form is used as the documentation that the intended recipient received the gift card. b. The Distribution Log is returned to the Finance Department. The following documents must be attached to the log: i. Pre-approved notification ii. The Distribution Log detailing the name of each recipient 1. Signed by the employee, provider or vendor 2. A signature by each recipient or a Certified Mail Return Receipt from the Post Office for each recipient. c. The Finance Department compares the Distribution Log given to the employee, FCMA, or vendor with the Distribution Log returned to the Finance Department to ensure all gift cards are accounted for properly and verifies the following: i. The employee, provider or vendor signed the completed log. ii. There is a signature by each recipient or a Certified Mail Return Receipt from the Post Office for each recipient. iii. The pre-approval documentation by Our Kids CFO, CEO or Board of Directors. d. If the employee, provider or vendor is unable to locate the Distribution Log and/or receipts, the following may occur: 1. No more gift cards would be issued to the Our Kids employee, provider or vendor. 2. There would be employee disciplinary action. 3. The face value of the gift card would be charged to the employee, provider or vendor. 4. The face value of the gift card would be deducted from future employee payroll or provider/vendor payments. ii. When gift cards are given directly by the Our Kids Finance Department to a foster parent or a client who is competent to manage his/her own money, it can be documented solely by the signatures of the Our Kids employee and the foster parent or client attesting to the transmittal of the card, and is not needed to be supported by subsequent original receipts. b. Gift cards purchased directly by an Our Kids employee, provider or vendor: i. The employee, provider or vendor is required to keep a distribution log that records at a minimum the following: 1. card vendor name 2. card # 3. card amount 4. disbursement date 5. identification of the intended user and purpose 6. signature of employee, provider or vendor and end user signature ii. To be reimbursed by Our Kids, the following must be submitted to the Finance Department: 1. The Our Kids employee is required to complete and sign a Travel Expense Reimbursement Form and attach the original receipts, the Distribution Log and the pre-approved notification. Merchant Gift Cards Policy OKOP Page 3 of 5

4 2. A provider or vendor is required to sign and submit an invoice and attach the original receipts, a distribution log and the pre-approved notification. 3. If the Our Kids employee, provider or vendor is unable to locate the Log, a letter must be written by the employee s Director or one of the providers/vendors Chief Officers verifying that the gift cards were distributed as intended. a. Our Kids may not reimburse the employee, provider or vendor for the cost of the gift cards. IV. Accurately Recorded a. Gift cards are recorded in the financial statements as follows: i. Gift cards purchased by or donated to Our Kids are recorded as a prepaid expense. 1. If the gift card is given to an Our Kids employee, provider or vendor, the gift card is reclassified from the gift cards prepaid expense account to accounts receivable. a. When the completed log with the supporting documentation is returned to the Finance Department, the gift cards are expensed. 2. If the gift card is given directly to the foster parents or client, the gift card is expensed. ii. Gift cards purchased directly by an Our Kids employee, provider or vendor are recorded as accrued expenses. 1. Gift cards are expensed to the proper fund at the time the Finance Department receives acknowledgment of receipt of the gift card by the client or end user. b. Gift cards purchases are allocated to the following sources of fund depending on the type of purchase: i. Fund 3 - Department of Children and Family (DCF) Fund: 1. Gift cards purchased by Our Kids for child welfare related service using DCF funds. 2. Gift cards purchased by a provider or vendor for child welfare related service using Our Kids funds that originate from DCF. 3. Gift cards purchased by DCF, and then donated to Our Kids for emergency situations or specific events. ii. Fund 7 - Independent Living Initiative (ILI) Fund: 1. Gift cards purchased by Our Kids for the independent living program and not supported by other sources of funds. 2. Gift cards purchased by a provider or vendor using sources of funds other than Our Kids, then donated to Our Kids for independent living clients. 3. Gift cards purchased by private entities, then donated to Our Kids for independent living clients. iii. Fund 9 - Private Fund: 1. Gift cards purchased by Our Kids and not supported by other sources of funds. 2. Gift cards purchased by a provider with sources of funds other than Our Kids, then donated to Our Kids and not stipulated to any other fund. 3. Gift cards purchased by private entities, then donated to Our Kids and not stipulated to any other fund. 4. Gift cards purchased for Our Kids employee birthday celebrations. iv. Fund 12 The Children s Trust: 1. Gift cards purchased by The Children s Trust, then donated to Our Kids. 2. Gift cards purchased by Our Kids for clients using The Children Trust funds. Merchant Gift Cards Policy OKOP Page 4 of 5

5 I. Responsibilities: Assistant Controller is responsible to coordinate and ensure that all expenses, reimbursements and related transactions have the proper supporting documentation, are properly recorded and accounted for in a timely and accurate method, and that established policies, procedures, and controls are adhered to and properly applied. Controller is responsible to ensure that gift cards are properly recorded and accounted for in a timely and accurate method and for the development, implementation and application of policies, procedures, and controls. The Controller can approve merchant gift cards for up to $1,000. Chief Financial Officer (CFO) is responsible to approve all merchant gift cards purchases greater than a $1,000 and less than or equal to $25,000. Chief Executive Officer (CEO) is responsible to approve, if the CFO is not available, all merchant gift cards purchases greater than a $1,000 and less than or equal to $25,000. Board of Trustees is required to approve gift card purchases for greater than $25, Definitions: 4. Background/related authority: 5. System tracking/data requirements: Merchant Gift Cards Policy OKOP Page 5 of 5