Student organizations are responsible for establishing controls surrounding their financial processing.

Budgeting

• Prepare budget at beginning of term
• Set realistic targets; budgeted income should equal or exceed expenses
• Document assumptions used to determine budgeted income and expenses
• Format should be consistent with financial reporting format
• Obtain approval of the final budget from management and board

Financial Reporting

• List income and expenses by major category
• Format should be consistent with budget format
• Compare current year actual results to budget and prior year’s actual results
• Prepare financial reports throughout the semester and share with management/board

Cash Receipts

• Restrictively endorse checks "for deposit only, organization name" upon receipt
• Secure checks and cash in a locked area prior to deposit
• Make frequent deposits, at least weekly
• Maintain cash receipts log and record receipts in the checkbook
• Reconcile cash receipts log to bank statement each month

Paying Bills

• Establish process to review and pay bills by check at least monthly, don’t pay with cash
• Review vendor invoices and receipts prior to payment
• Ensure that two officers sign all checks
• Maintain copies of vendor invoices and receipts after payment
• Record checks in the checkbook on a timely basis
• Reconcile all checks written to bank statement each month

Bank Reconciliation

• Reconcile bank balance to checkbook balance each month
• Document all reconciling items
• Resolve errors identified
• Obtain officer and board approval for the reconciliation

Contracts

• Review draft contracts early in the process
• Refer to Student Organization Handbook for standard contract terms
• Send draft contract to Harvard College Student Activities Office for review

Roles and Responsibilities

• Separation of duties: two officers should handle all key financial duties
• Establish an officer transition plan; document key duties and maintain copies of budgets, financial reports, contracts, bank statements,checkbook, copies of paid invoices, etc.