Where can I find (and can you answer for me with your own practices) documentation to support one person being responsible for chart of accounts maintenance? Here is the scenario. Church - main entity School - trade name operating under main entity
Chart of Accounts Maintenance
Answers
I am not aware of publicly available documents to support your case.
Current place allows for users to create new account code. It could be difficult to effect streamline coding, definition and grouping and thus seamless additions across the group for ease of consolidation and group reporting. Prima facie, I support your view.
Strictly speaking, code creation and amendment should be restricted to ADMINISTRATOR. Within administrator pool, you either assign specific person to create code or all could create code. The latter requires a written NORM of Coding Convention, and even then, only the trusted ones could be worthy for amending the chart without messing up the definition and consistency across the Group.
What my former Group
Check with your independent accountant / external
One approach to this is to design and present to the board a pro-forma financial statement and ask them if this gives them the detail they need to manage the
Regarding consolidated statements - in Enterprise, if you use identical charts of accounts in all three operations, there software will generate a consolidated financial statement. The key is that the account number and the name of the account must be identical. I use this with a 3 file operation and it works well.
I concur with what the others have said. I wonder how the School Administrator would feel if you took it upon yourself to re-write some of the curriculum! Nobody should be messing with the COA accept the Chief Administrator of the
Control it… It is important to have proper control over adding and deleting items from the chart of accounts. Establish internal control system for authorising changes to the chart. It is critical part of your financial
What are internal controls?
Internal controls are the financial processes and procedures that enable the organization to safeguard its assets.
How is this done?
The most effective procedures are those that have the greatest segregation of duties. The more people involved in the process, the less likely it is that an error or defalcation will occur.
For example, the person who writes the checks should not be the person signing the checks. The person who orders the service or product should approve the invoice. The person with budget responsibility should also approve the expenditure and should code the invoice.
Who establishes the procedures?
Generally management establishes the system of controls. It is helpful to have an accounting manual detailing the procedures to be followed.
There was a just a webinar delivered by Proformative, "Is Your Chart of Accounts out of Control?". You can view the webinar recording here that addresses the issues being discussed here. https://www.proformative.com/events/your-chart-accounts-out-control-0
Wow, you are working with some people who want to control things they don't really understand. That is a recipe for disaster. You need to put your foot down. You also need to be in control of the administration of the G/L. It belongs to you. If you are responsible for reporting results, you have to be in control of the system that does that.
I realize in a church setting it is difficult sometimes to be assertive. But this is one case where the outcome is non-negotiable.
This is an issue of internal control, if people are seriously challenging you on this, you need to do some auditing of their accounts. Something is wrong and you need to find out what it is. Fraud also occurs in church accounts.
https://info.undp.org/global/popp/frm/pages/maintenance-and-usage-of-the-chart-of-accounts.aspx#RolesResponsibilities Look under 7.0 Roles and Responsibilities.
http://www.ous.edu/departments/controllers-division/policies-procedures/ous-fiscal-policy-manual/roles-and#.160 Look under .160 High Level Responsiblities.
http://policies.uga.edu/FA/nodes/view/824/Chart-of-Accounts Look under Responsibilities at the bottom.
Hope that helps.