9.02 – Cash Disbursement Procedures

Procedures

• Incoming invoices will be distributed by the Receptionist to the designated Bookkeeper.
• The designated Bookkeeper forwards all the invoices to the respective Department Executive for approval of payment.
• The Accounting Department will not prepare a check disbursement without this authorization. Utilities and prearranged payments such as vehicle and/or equipment leases, loans, etc. will be automatically paid without approval.
• The Full Charge Bookkeeper responsible for accounts payable should prepare payments for expenses, debts, and liabilities for Open Door semi-monthly on the 1^st and 16^th or the next business day if the date falls on a weekend or holiday.
• The Finance Manager may authorize the release of accounts payable based on cash flow. Invoices not paid over 45 days must be brought to the attention of the Operations Director.
• Each account payable run must be signed by the Operations Director before the checks are disbursed; this excludes the monthly reoccurring batch of invoices.
• All invoices must be entered into the Accounts Payable batch as soon as the invoice is forwarded to the Bookkeeper with ok to pay approvals where applicable. Batches must be posted at the end of each business day.
• Any adjustments must be made by the 5^th day of the following month. Failure to do so could result in a violation of the Open Door Standards of Conduct (Policy & Procedure 2.15). Expenses must be posted to the period they were incurred and not when payment is made.
• The Finance Manager will verify the accounts payable generated by the accounting software and compare it to the cash book. Daily confirmation is required for the current balance in any and all cash books, specifically LCNB and Chase.
• The AP Bookkeeper will not release checks without Finance Manager’s approval.
• Check disbursements are stamped with authorized signature stamps by the Operations Director, who does not prepare the Accounts Payable.
• All checks will be mailed as soon as this process is completed. Supporting documentation should be filed by the AP Bookkeeper in the appropriate vendor file(s).

Last Revised: 8/25/21