Tips for Maintain Local's Records

- Maintaining financial records
- Maintaining the checkbook
- Maintaining a running balance
- Handling petty cash
- Maintaining the cash receipts journal
- Classifying & coding receipts
- Listing deposits
- Adjusting the CRJ
- Closing CRJ at the end of the month
- Maintaining the cash disbursements
journal
- Classifying & coding disbursements
- Listing checks
- Adjusting the CDJ
- Closing CDJ at the end of the month
- Preparing for the financial audit
- Reviewing internal control procedures
- Reviewing cash receipts
- Reviewing cash disbursements
- Verifying cash balances & bank
reconciliations

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Maintaining financial records

For a few small organizations, the checkbook alone may be enough of a financial record to meet the organization’s needs. Most locals, however, will need to keep additional accounting records.

Maintaining the checkbook

View the Checkbook Check List

Maintaining a running balance

You may wish to view or download a bank reconciliation form (MS Excel format - 23K), view and print a sample bank reconciliation form (HTML format), or use the form that you will find on the back of your monthly bank statement.
Note: To download a file, right click on the link and click on "Save Target As..." This will place the file on your local drive.
Since there is always a time lag between the writing of a check and its clearing the bank, reconciling the checkbook helps show that your checkbook balance is in accord with the bank’s balance for your account.

Fraud can happen. Protect checks that have already cleared the bank. They can be scanned into a computer have checks returned on microfilm or CD-ROM if it is available from your bank.

If you follow the practice of writing as many checks as possible at the beginning of the month, most will have cleared the bank and will be recorded on the statement. If you have a volume of checks, this will make the reconciliation easier.

Most new computer programs for accounting or check writing also have a bank reconciliation area to make this process easier for you.

Handling petty cash

Do not establish a petty cash fund unless you really need it. Keep it small.

Maintaining the cash receipts journal

It is usually easier to record transactions in the cash receipts journal (CRJ) when they are made instead of waiting until the end of the month.
For each month, a new and separate page should be started in the cash receipts journal.

Classifying & coding receipts

Copies of deposited checks should be kept as a support record for each deposit. This can be useful in documenting the other receipts accounting code, the identification other income streams or the sale of union materials.
Ensure that local’s cash depository and savings or investment accounts have adequate insurance coverage especially when they exceed FDIC limitations of $100,000+ dollars.
Prohibit "check cashing" from un-deposited cash.
Prohibit payments from un-deposited cash.

Listing deposits

Consider doing unannounced cash counts to minimize the possibility of receipt lagging or check substitution schemes.
If union personnel make the actual deposit trip to the bank, record the ID of that individual on each deposit record.
Clearly, identify the categorization of all funds receipt that has multiple components (e.g. a dues payment, and an initiation fee payment, and a jacket purchase all in one.)
Split deposit responsibilities among officers and employees. Do not be dependent on any one person but also do not allow access to anyone who does not need to be involved..

Adjusting the cash receipts journal

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Closing CRJ at the end of the month

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Maintaining the cash disbursements journal

It is usually easier to record transactions in the cash disbursements journal (CDJ) when they are made instead of waiting until the end of the month.
For each month, a new and separate page should be started in the cash disbursements journal.

Classifying & coding disbursements

There may be more than one account number assigned to a single check.
For example: A check might be written to an individual reimbursing them for office supplies and postage.

Listing checks

Do not sign blank checks.
Do not write checks out of number/date sequence.
Do not permit single signature checks.
If you use facsimile, stamped or gif. file signatures on checks (instead of the real thing), establish rigid controls on their access and use.

Adjusting the cash disbursements journal

In the cash disbursements journal (CDJ), put all of the monetary amounts relating to a voided check in parentheses. Numbers in parentheses are always subtracted when adding totals.

Closing CDJ at the end of the month

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Preparing for the financial audit

There are no associated tips at this time.

Reviewing internal control procedures

There are no associated tips at this time.

Reviewing cash receipts

If payroll deduction lists are large, you may verify a sampling of the lists instead of all twelve lists for the year.

Reviewing cash disbursements

There are no associated tips at this time.

Verifying cash balances & bank reconciliations

There are no associated tips at this time.