# Internal Controls

**1. Purpose**  
This guidance outlines Foothills Unitarian’s internal control framework to safeguard financial assets, ensure the integrity of financial information, and uphold trust in the stewardship of congregational resources. It supports compliance with Board Policy and reflects our values of accountability, transparency, and shared leadership.

**2. Organizational Guidance**  
Foothills implements a multi-layered internal controls system to prevent fraud, ensure accurate reporting, and promote responsible financial management.

#### **Separation of Duties**

- No single staff member may hold full responsibility for **authorization**, **custody**, and **record-keeping** of any financial transaction.
- Core financial processes (e.g., **deposits**, **disbursements**, **reconciliations**, **reporting**) are distributed across distinct roles.

#### **Authorization and Approval Thresholds**

- The **Finance Executive** reviews all expenses exceeding **$500**.

#### **Banking & Payment Controls**

- Credit cards are issued by role and managed through **Bill.com**, which includes approval workflows and transaction coding.
- **Receipts** or verifiable online transaction records are required for **all purchases over $75**.
- All staff with a business credit card are required to provide purchase coding and receipts by the 5th of the month for the prior month.

#### **Access and Permissions**

- Access to **QuickBooks Online**, **Church Center**, and other financial systems is restricted by role.
- The **Finance Executive** oversees permissions and **conducts periodic audits** of user access.

#### **Reconciliation & Review**

- **Monthly reconciliation** of bank and credit card accounts is conducted by the **Bookkeeper** and reviewed by the **Controller**.
- **Monthly financial reports** are reviewed by the **Executive Team** and **Finance Team**.
- **Quarterly financial reports** are reviewed by the **Board of Trustees**.

#### **Documentation & Retention**

- A current **Chart of Accounts** is maintained and shared with staff who have budget oversight.
- All financial records (digital and physical) are **retained for at least 7 years**.
- **Secure storage protocols** are in place to protect confidential or sensitive information.

#### **Training & Accountability**

- Staff with financial responsibilities receive training on this internal controls framework.
- The **Finance Executive** monitors implementation through ongoing **review and spot checks**.

**3. Related Content**

- [Board Policy 3.3.1 ](https://211134-bookstack.peaknetworks.cloud/books/board-policy/page/33-care-for-material-resources)– Financial Accountability
- [Board Policy 3.3.8](https://211134-bookstack.peaknetworks.cloud/books/board-policy/page/33-care-for-material-resources) – Financial Transparency and Reporting
- SOP – Expense Approval and Reimbursement (need to create/tag)
- SOP – Monthly Close and Reconciliation (need to create/tag)