La. Admin. Code tit. 4 § VII-1726

Current through Register Vol. 50, No. 11, November 20, 2024

Section VII-1726 - Financial Management and Fund Development

A. Basic Considerations. These standards stress that Generally Accepted Accounting Practices (GAAP) with regular internal and external reports and audits, are the foundation for prudent management of capital, endowment and operating income and expenses. It is the role of the governing body to ensure financial accountability and that the bulk of the program's resources are used to meet service needs.

B. Standards

1. Policies for financial management are comprehensive and practical.

2. Relevant goals, objectives and plans are established for financial management and long term financial stability.

3. Financial management is conducted in accordance with applicable professional, ethical and legal principles. Generally accepted accounting procedures and practices are implemented as required by the terms of the contract.

4. The program uses or contracts with designated and appropriately qualified personnel to implement its policies and procedures for financial management.

5. The program provides bonding of staff responsible for financial resources. It is recommended that the program provide and maintain adequate liability coverage for the governing body.

6. The program prepares financial statements that clearly and fairly present the organization's financial position.

7. The governing body adopts and the executive director implements comprehensive budgets in accordance with acceptable practices.

8. The governing body continuously reviews and analyzes its financial position.

9. The governing body adopts and regularly reviews salary range schedules and adheres to minimum wage laws.

10. The program prudently manages its operating, endowment and capital funds.

11. The program has sufficient cash flow to meet its operating needs

12. The program maintains adequate cash reserves.

13. The program does not enter into any agreement, written or otherwise, where public funds are paid, or committed to be paid, for services or goods, to any member of the governing body, staff, or members of the immediate family of said governing body or staff, or to any entity in which the foregoing have any direct or indirect financial interest, or in which any of the foregoing serve as an officer or employee, unless the services or goods are provided at a competitive cost or under terms favorable to the program. The program maintains written disclosures of any and all financial transactions in which a member of the governing body, staff, or their immediate family is involved.

C. Fund Development

1. The program has a long and short range fund development plan.

2. The program conducts a fund development program which secures sufficient funds to cover its operating and capital needs.

3. The program builds and maintains adequate financial reserves.

4. The governing body initiates and actively supports fund development efforts.

5. The program comprehensively evaluates community relations and fund development programs to measure efficiency and effectiveness.

La. Admin. Code tit. 4, § VII-1726

Promulgated by the Office of the Governor, Office of Women's Services, LR 27:534 (April 2001).

AUTHORITY NOTE: Promulgated in accordance with R.S. 46:2122B and R.S. 46:2127B1.