Internal Controls


Financial Policies & Procedures

These policies and procedures are written to ensure Gaston Literacy Council, Inc. is in compliance with all required regulations. The Executive Director prepares monthly financial reports that include the beginning and ending cash balances. The format facilitates comparison of actual operations to budgeted amounts. These reports are distributed to the Board members for their review and approval prior to each Board Meeting.



All contributions will be acknowledged.
For contributions equal to and greater than $250 the acknowledgement will include the following information: date of contribution, description of contribution, statement of whether donor received any value in return for the contribution.
Monetary contributions equal to and greater than $500 will be deposited to appropriate account within two banking days.
Deposits will be recorded through the general bookkeeping means of GLC.

Board members will receive financial statements at regular Board meetings, acknowledging receipts of contributions equal to or greater than $1,000.
Support Staff makes copies of the checks and updates her independent records of contributors. Checks are then deposited.
Support Staff copies the checks, restrictively endorses them “for deposit only” with a rubber stamp, prepares the deposit ticket and the journal entry to record the receipts. Support Staff normally takes the deposit to the bank, however, the Executive Director may do so on occasion.
Support Staff files validated deposit tickets by the deposit date.

Support Staff maintains a listing of contributors and prepares thank-you notes and required documentation for federal income tax purposes with the Executive Director’s signature.

Cash Disbursements
All accounts in the name of Gaston Literacy Council, Inc. will require two signatures for all transfers and withdrawals as is required in GLC's Bylaws.  New signature cards will be signed within two weeks of new officers being elected.

Checks will be issued on the 15th and last day of every month for expenses.  Receipts will be required for all expenses paid.  The Executive Director will review and approve all expenses.  All checks will be signed by two individuals authorized by the Board of Directors.

All checks are locked and only the Executive Director and one other staff member has a key.

Restricted funds:  If possible, restricted funds are disbursed on the qualifying expenditure immediately.  If this is not possible, the Council creates a separate general ledger account, posts the revenue there and posts disbursements against the revenue until it zeros out.Employees notify Support Staff of items needed. Support Staff then places the orders and orders all office supplies. Program Coordinators order literacy materials.  
Support Staff gets the mail and sorts it (unopened) by intended recipient. Support Staff receives vendor bills.
Support Staff opens the bills and verifies their accuracy. Support Staff and or the Executive Director determine(s) the accounting distribution. Vendor invoices are kept in a folder until paid.
Support Staff prepares checks twice a month and records disbursements in the general ledger. Checks and vouchers with the original invoices are given to the Executive Director.
The Executive Director reviews and signs all vouchers and checks. All checks are required to have dual signatures with individuals elected by the Board each year. These individuals do not pre-sign checks.

Support Staff files paid invoices by vendor name.

ADP is contracted to provide payroll services for Gaston Literacy Council, Inc.  They are responsible for total payroll processing and tax reporting.

Timesheets are approved by the immediate supervisor or the Executive Director.   

Payroll is entered into the ADP system by the Executive Director or Finance Coordinator.

Support Staff electronically transfers the previous month’s 401k withholdings to TIAA-CREF on the first business day of each month. United Way withholdings are paid by check in the same manner.  

New employees accrue 3 hours on a bi-monthly basis.  Employees employed from 1-4 years accrue 4 hours; employees employed from 5-9 years accrue 6 hours; employees employed from 10-15 years accrue 7 hours; and employees employed 16 years accrue 8 hours.  Part-time employees follow the same schedule.  All vacation is earned pro-rata based on a 40 hour week.  Employees can carry forward a maximum of 10 days per year.  The Council pays earned but not used vacation upon termination.

The Board

Roles and Responsibilities

By their collective decisions the members of the Board of Directors set broad policies and goals and give the Executive Director direction to implement these policies in the day-to-day management of the organization.  Individual members of the Board, however, have no authority to act independently of the full Board.  Board members manage the affairs of the Corporation and as such approve the budget to support that plan.  In addition, Board members monitor the overall financial health of the Gaston Literacy Council by reviewing financial records and recommending improvements and corrections of any deficiencies found.  This includes review of annual reports of State Auditor and oversight of all corrective actions.  The Board Nominating Committee is responsible to continually look to the future of the organization with a focus on maintaining the type of board membership to lead the organization.  They are to ensure a balanced board that can maintain the financial and programmatic integrity of the organization.


Opportunities for involvement with Gaston Literacy Council, Inc. are open to any person who, on the basis of demonstrated ability and performance, can present satisfactory evidence of qualification.  Gaston Literacy does not discriminate or tolerate harassment on the basis of gender, age, race, color, religion, national origin, disability, political beliefs, marital or familial status (volunteers, students, employees.