ICO Job Description

Purpose of Internal Control Procedures

Internal Control refers to the system of checks and balances in place to minimize the risk of fraud and theft. Since one person (the Treasurer) has complete control over the club's assets, the club implemented policy 3.14C to provide oversight over the club's financial transactions. Having the procedures listed in the policy performed on an ongoing basis (1) minimizes the risks of fraud or theft going undetected and (2) provides assurance that the club's accounting policies are being adhered to.

Accessing SLOBC Bank Accounts

1. The ICO provides the Treasurer a User Name. The Treasurer provides the ICO a temporary password; the ICO needs to change that to a private password once they gain access.

Password must be between 9 to 17 characters long and contain at least one uppercase letter, one lowercase letter, one number, and one special character.

2. Go to the Mechanics Bank website: https://www.mechanicsbank.com
3. Clicked on the brown “Log in” button. A small window will appear
4. Click on “Business Online Banking” that appears about two thirds the way down the small window. This will take you to the Business Online Banking Log In webpage.
5. Enter the User Name and Password.
6. You will be taken to the SLOBC account. ICO name will appear at the top of the window.

SLOBC's Bank Accounts

Once you log onto Mechanics Bank, the three SLOBC accounts will be listed – one checking account and any open CD accounts.

When you click on an account, a list of account transactions will appear. The date range of the listed items can be adjusted as indicated on the right side of the screen.

When you click on one of the check numbers listed, a copy of the front of the check should appear. There is a tab to click on to see the back of the check for verifying the endorser.

Materials Needed for Monthly Reviews

Obtain the following documents from the Treasurer for the preceeding month prior to the next SLOBC Board meeting:

• Copies of emails showing approvals for payments over $2,000
• Copy of bank account reconciliation
• Copy of Statement of Financial Position

ICO Tasks

Policy 3.14C covers the specific actions the ICO should perform each month. The goal is to confirm whether there were any transactions or unresolved exceptions to club policies that should be reported to the board.

For payments more than $2,000:

Verify that the disbursements over $2,000 per the monthly bank transaction listing were approved in advance by one of the designated officers.

For cash/check receipts:

Verify that (1) cash/check receipts from clothing sales at century rides have been attested to by both the Clothing Sales Captain and a second member of the clothing sales team and (2) the receipts were deposited in a timely manner.

Verify that receipts in excess of $150 from any other club event were deposited in a timely manner.

For canceled checks:

Using the on-line bank account transaction listing, review all cleared checks to ensure that they have been paid to known vendors, that the amount paid seems reasonable and that the endorsements agrees with the payee of the check.

Review monthly bank account reconciliations:

After receipt of the monthly bank reconciliations from the Treasurer, compare the bank balance to the bank statement and the reconciled general ledger balance to the amount shown on the monthly Statement of Financial Position. Verify that all deposits-in-transit from the prior month’s bank reconciliation were deposited into the club’s account in a timely manner. For any checks that have been outstanding more than two months, ask the Treasurer to follow up with the payee to determine why the check has not been cashed.

Report findings to the Board:

At each board meeting the ICO shall report to the Board (1) that the required steps were taken during the prior month and (2) whether any unusual items that were noted. The report will be noted in the club minutes.