Record Keeping Requirements

  1. Important information related to handling funds can be found in “Financial Guidelines for the Kentucky Cooperative Extension Service County Groups” and in “Options for Handling Funds Locally.”
  2. Annual budget: An annual budget must be developed with anticipated income, expenditures, and account balance. (See Budget Form)
  3. Auditable Records: Auditable records are to be maintained for all transactions. Auditable records describe the nature and condition of a transaction and provide support that the transaction occurred as stated.  
  4. Bookkeeping: An electronic bookkeeping system should be maintained which classifies and accumulates financial information in a logical manner.

5.    Recording Income:

a.  Acknowledge all money received with a written receipt that states the date, amount received, source of funds, form of payment as cash or check and who collected the money.

b.  The receipt should be prepared in duplicate with the original given to the client. The copy should be maintained, in sequence, in the receipt book as the official record of that transaction.

c.  If a receipt is voided, the original receipt is to be maintained with the official copy of that receipt.

d.  If a member/representative of a group turns in money collected from several people, one receipt may be written directly to that member if documentation is attached to the receipt listing: (1) individuals from whom the money was collected; and (2) the amount collected from each.

e.  In some cases, such as a fundraising event, it may not be practical to issue an individual receipt for each cash transaction.  In these situations, record several transactions on one receipt.  Example: (Received from: Mary Smith; Amount: $256.00; For: Proceeds from Chili Supper on Oct. 30.)

f.  All income/receipts should be identified by source and restrictions, if any. While this information is recorded on the receipt, it is advisable to also record it on the check register beside the deposit entry.  Any correspondence, check stubs, etc., should be placed in a file set up for that purpose.

g.  Each bank deposit slip which is filled out and handed to the teller should contain a listing of the receipt numbers with amount.

h.  Funds should be deposited on a regular basis as determined by the local group.

i.  All funds kept in the county Extension office should be in a locked secure location.

j.  Important information related to program councils and handling funds through the county extension office can be found at Money Handling Procedures.

k.  Deposit Form (see Sample Deposit Form at __________)  A deposit form should be used when:

i.      Program council is handling funds of program groups as “program accounts.”

ii.      District Board is handling the funds of the program council/club/groups as “program accounts.”

iii.      501 (c)3 group is handling all program accounts.

iv.      Funds are received by a county Extension office staff member.

6.       Recording Expenses

a.  Financial commitments and expenses should be made in accordance with the policies established by the organization and the approved budget.

b.  Payments should be made only if a “Payment/Disbursement Request Form” is provided with the appropriate bill, invoice or receipt attached. The “Payment/Disbursement Request Form” and attached documents will become a permanent part of the treasurer’s records. This documentation should be filed in a manner allowing easy retrieval and should be maintained for the current year and three additional years.

c.  Expenses are to be paid through established checking accounts.  It is not permissible to hold cash back from deposits and then use the cash to pay bills because it does not leave a record or provide proof of payment.

d.  All checks are to be signed by the appropriate officer(s) of the group.  An individual is not to sign a check until sufficient documentation and funds are available and the check has been filled out in its entirety.  No one is to sign a blank check. The organization should consider having dual signature requirements for checks written over a specified amount. No Extension employee shall sign checks, make deposits for volunteer groups or have signatory authority over any assets of the group.

e.  When a check is voided, the check should be marked “void” and attached to the check stub.

f.  All checking account transactions are to be recorded in the check register at the time the transaction occurs.  Entries are to be dated and be as detailed as possible showing the name of payee or deposit source and purpose of expense.

g.  All check registers are to be reconciled with the bank statement monthly at the time it is received.  These reconciliations are to be documented. (Generally, the back of the bank statement provides a reconciliation form that is sufficient and electronic systems allow reconciliation records to be printed). These reconciliations, along with the corresponding bank statement, should be kept for the current year and three additional years. 

7.       Annual Financial Reports

a.  Groups should examine and audit the financial statement balances, assets and the established accounting system.  

b.  Groups are to create an annual financial report which summarizes all financial transactions (income and expenses) for the year and records all account balances at the end of the year.   This report should be compiled at the end of each program year by the treasurer (See “Sample Annual Financial Report.”  Electronic bookkeeping systems offer this as a report option.)  File this report with the appropriate groups as described by the “Financial guidelines for Kentucky Cooperative Extension Service County Groups.”

8.       Audit Reports

a.  Each group is to have its financial statements and related books and records audited at the end of each program year either by an Audit Committee or a Certified Public Accountant. 

b.  Audit results and reports should be filed with the appropriate groups according to “Financial Guidelines for the Kentucky Cooperative Extension Service County Groups.”

9.       Managing Tangible Assets

a.  Many clubs and groups find it useful to acquire and maintain certain tangible assets such as tools, equipment, teaching resources, etc. which support the educational goals of the organization. Fiscal responsibility for these tangible assets rests with the individual group.

b.  Groups are to inventory these assets on an annual basis, using the “Annual Inventory Report”:

i.      Document the location of the item.

ii.      Provide a historical summary for both acquisition and disposal of items. 

iii.      Include only assets with a useful life over one year and an initial value of $250 or more in order to avoid burdensome record keeping.