ACCOUNTING PROCEDURES

Procedures

PURPOSE: This Operating Procedure contains guidelines for conduct of DCC financial management instruments and accounting.

UTILIZATION: The DCC treasurer shall conduct bookkeeping and accounting tasks as necessary to effect a permanent record of cash receipts and disbursements of the DCC Officers (members of the DCC Board of Directors) shall review periodically, reports provided by the treasurer for comparison of actual and budgeted receipts and disbursements DCC officers shall also review forecasts of future financial position provided by the treasurer for financial planning and possible budget revisions.

RESPONSIBILITIES:  The DCC Treasurer shall be responsible for DCC accounting, maintenance of financial management instruments, and making financial information available to the Board.

The DCC Board shall bear the responsibility for financial policy, planning, budget inputs and approval, and adjustments as necessary to assure sound financial operation of DCC.

The DCC Board shall bear the responsibility for financial policy, planning, budget inputs and approval, and adjustments as necessary to assure sound financial operation of DCC.

All DCC financial activity shall be based on a system of cash receipts and disbursements. All receipts shall be deposited into a single account and all disbursements shall be made from this account either as checks drawn directly on this account or as transfers from this account to reserve accounts or to accounts from which directors of major events may make disbursements by check Disbursements shall be recorded as Transaction Journal entries and shall be posted as debits to Classified Accounts. All receipts shall be contained in deposits, which shall be recorded as Transaction Journal entries and posted as credits to Classified accounts.

Accounting instruments to be maintained by the DCC treasurer shall include.

• Annual Budget
• Bank Accounts
• General Checking Account
• Major Event Checking Account(s)
• Optional Reserve (savings) Account(s)
• Transaction Journal
• Classified Accounts
• Disbursement Invoices
• Periodic Reports
• Receipts and Disbursement Reports (monthly)
• Financial Forecasts (quarterly)

ANNUAL BUDGET: A budget for each calendar year shall be generated utilizing guidelines contained in DCC operating Procedure 0P003F. Utilizing inputs from DCC Officers and Committees, the Treasurer shall draft a proposed budget which includes planned receipts and disbursements for each of a number of classified accounts Classified accounts which appear as items in the budget shall be identical to those accounts to which receipts and disbursements are posted as entries in the Transaction Journal Time scheduling for Budget generation and approval is included in DCC 0P003F and in DCC By-Laws (Art TI, Sec 3)

• General Checking:  A checking account to which all DCC receipts are deposited shall be utilized as a master account General disbursements for the DCC shall be made by checks drawn on this account Transfers of funds to disbursement only accounts for major DCC functions and to any optional accounts for reserve funds shall be made from this account Checks drawn on this account shall normally be signed by the Treasurer. In addition to the Treasurer, at least two other DCC officers shall be authorized to sign checks Checks shall require one signature.

• Major Event Checking:  The DCC Board may authorize disbursement only checking accounts for major DCC functions (Huffman 100 K tour, Wright Wride tour, River Festival Races, etc). Disbursements from these accounts to offset major event expenses shall be made by checks drawn on the appropriate account Transfer from the DCC General Checking account shall be the only source of funds for these accounts. Income from DCC major events (and all other receipts) shall be deposited to the General Checking Account Establishment and Utilization of Major Event Checking Accounts and the responsibility for account maintenance and utilization is included in DCC Operating Procedure OPOO2F (DCC Major Event Checking Accounts).

• Reserve (Savings):  Reserve funds may be kept in an account (or accounts) which shall not be utilized for direct disbursements or deposits of receipts. Funds shall be added to Reserve Accounts by transfer from the General Checking Account and funds shall be withdrawn from Reserve Accounts by transfer to the General Checking Account The DCC Treasurer and two other Officers shall be authorized to make transfers from Reserve Accounts.

• Transaction type - check #, deposit, transfer
• Posting to Classified Account or bank account
• Transaction description
• Amount, debit or credit
• Balance of Bank Accounts

CLASSIFIED ACCOUNTS:  Accounting of the receipts and disbursements of the DCC shall be divided into a number of classified accounts each representing some club function or activity. A listing of these accounts by title and a number or code for each account is included in the annual budget The annual budget also itemizes annual estimates of receipts and disbursements for each account. The Treasurer shall maintain a record of receipts and disbursements for each account which is keyed to the Transaction Journal by date and account number.

DISBURSEMENT INVOICES: The DCC Treasurer shall maintain a file containing an invoice, receipt, or completed DCC reimbursement form for each DCC disbursement. The number of the check utilized for payment shall appear on each invoice, receipt, or completed DCC reimbursement form. Invoices, receipts, and reimbursement forms for major event checking account checks shall be retained by major event Directors and presented to the DCC Treasurer with the major event checkbook (and other documentation).

When DCC reimbursement forms are submitted for reimbursement for any expense other than racing team member qualified entry fees, traveling expenses, or prizes, receipts or invoices marked as paid shall be attached to the reimbursement forms.

PERIODIC REPORTS: The DCC Treasurer shall submit to the Board of Directors reports to be used as indicators of financial status, comparison of budgeted and actual receipts and disbursements, and forecasting of future financial position These reports shall include:

• Monthly Receipt and Disbursement (R&D) Reports.  R&D reports shall include a listing of all classified accounts by number, current budgeted annual receipt and disbursement predictions for each account, and the actual year-to-date totals of receipts and disbursements for each account. R&D reports shall also contain an indication of the total cash assets of the DCC at the end of the reporting period. Actual receipts and disbursements and the total cash asset values shall reflect DCC financial condition on the last day of each month. R&D reports shall include posting of any earned interest and should reflect bank account balances after reconciliation of monthly bank account statements Board members should utilize the R&D reports to follow the status of receipts and disbursements for each classified account relative to budgeted projections.

• Financial Forecasts. At least four times during the calendar year, the DCC Treasurer shall prepare and submit to the Board a Financial Forecast which includes current total cash assets, itemized date and amount estimates of future receipts and disbursements, and the forecasted cash balance of the General checking (master) account after each forecasted receipt and disbursement. Forecasts should extend at least six months into the future. Estimates of receipt and disbursement amounts and dates may be based on inputs to the Treasurer from DCC members and Board members responsible for DCC activities, the current budget, and journal entries from previous years Forecasts should be utilized by the Board to identify future cash flow situations which indicate adjustments to the DCC Budget or the need for increases or decreases in receipts and disbursements.