Introduction

The Board and staff of the Texas Center for Local Food (TCLF) are committed to ensuring the sound management of
organizational assets in the interest of achieving the Organization’s mission. For purposes of this document, the Texas Center for Local Food (TCLF) is referred to as the “Organization”.

The policies and procedures contained herein are intended to:

• Protect the assets of the Organization.
• Establish basic accounting, billing, and cash control policies and procedures.
• Ensure the maintenance of accurate records of the Organization’s financial activities.
• Create a framework for operating standards and behavioral expectations.
• Ensure compliance with all federal and state procedures and reporting requirements including 2 CFR §200.3xx.

The Executive Director working with the Financial and Administrative Manager and oversight of the Treasurer is responsible for administering these policies and ensuring compliance. The Board of Directors may vote to make changes to these policies at any time. A full review of the policies should be conducted every two years (in odd numbered years). Every member of the Organization’s team is expected to be familiar with and in compliance with these policies.

These accounting policies and procedures are intended to be consistent with Generally Accepted Accounting Principles (GAAP). If this manual conflicts with specific federal or state regulation or with other organizational policies that have been adopted or updated more recently, the regulations or more recent Board policy shall prevail.

Approved: 05/14/2025 by Board of Directors 

Updated: 05/14/2025 – Krista Alford, Financial and Administrative Manager

 

Ethics

The Organization is committed to responsible stewardship of organizational resources. The Organization will spend a reasonable percentage of its budget on programs in pursuance of its mission and on administrative expenses to ensure effective accounting systems, internal controls, fundraising, competent staff, and other expenditures critical to professional management and organizational sustainability. The Organization will not accumulate excessive operating funds but will maintain a responsible level of reserves to enable the Organization to respond to philanthropic trends and opportunities to better serve the Organization’s mission.

Members of the Board and staff of the Organization are committed to the following ethical practices:

• Acting in the best interest of the Organization rather than of personal interests or the interests of third parties.
• Practicing sound financial management and compliance with legal and regulatory requirements.
• Employing financial systems to ensure that accurate financial records are kept and that financial resources are used to further the Organization’s mission and charitable purposes.
• Creating and maintaining financial reports on a timely basis that accurately portray financial status and activities, provide timely internal financial statements, and explain any material variation between actual and budgeted revenues and expenses.
• Providing employees and others with a confidential means to report suspected financial impropriety or misuse of its resources.
• Having written financial policies and standard operating procedures governing use of its assets, internal control procedures, and purchasing practices.
• Complying with laws and regulations related to fundraising, licensing, financial accountability, human resources, lobbying, and political advocacy, and taxation.
• Respecting the interests and intentions of its donors, volunteers, and the general public and managing them with the highest level of professionalism and integrity.
• Using solicitation and promotional materials that are accurate and truthful and identify the Organization, its mission, and its intended use of solicited funds accurately.
• Ensuring that contributions are used in accordance with donors’ intentions and obtaining explicit consent before altering the intended use of a restricted gift.

 

Board of Directors

• The Board of Directors for Texas Center for Local Food is the governing authority over the Organization. The Board will uphold the mission of the Organization while providing guidance, business planning oversight, and advocating for the long term health of the Organization.
• The Board of Directors for the Organization is comprised of the following positions: President, Vice President, Treasurer, Director, and Secretary. All Directors on the Board must abide by the provisions set forth in the Texas Center for Local Food Bylaws. When changes are made to a position, notification will be sent to the Texas Secretary of State.

 

Financial Records and Reports

The Organization will employ a regular process for assessing the status of organizational finances and assets. The Board of Directors will ensure that timely and accurate financial information is available, understood, and used to guide decision-making.

• The fiscal year for the Organization will be January 1 – December 31.
• The financial records will be maintained using the cash basis of accounting.
• The bookkeeper will reconcile the bank statement with bookkeeping records monthly.
• The Financial and Administrative Manager will prepare reports quarterly. Reports will include Balance Sheet, Income Statement, Budget-to-Actual comparison, and Cash Flow Report. The Board will review reports quarterly.
• The Executive Director will make an annual presentation on finances to the Board during the first quarter of every fiscal year.
• The Board of Directors will review the Form 990 annually.
• The Organization will have a regular External Audit according to the requirements in the section below entitled “External Audit”.

 

Segregation of Duties

• The Organization is committed to sound internal controls that ensure segregation of duties to create accountability and prevent misuse of organizational assets. The Organization is small and is expecting to grow significantly. These internal controls reflect the current small size while maximizing the effectiveness of internal controls with a small group of people and allowing for effective ongoing controls as the Organization grows.
• There will be separation of financial duties and responsibilities so that no person has sole control over cash receipts, payroll, bank reconciliations, accounts payable or other financial functions. Guidelines as referenced in the applicable standard operating procedures are followed. All standard operating procedures must be approved by the Financial and Administrative Manager and Executive Director.
• The Financial and Administrative Manager and Executive Director will be authorized to sign all checks subject to the limitations of this Financial Policies and Procedures document.
• The Financial and Administrative Manager will manage daily accounting operations (including accounts payable and receivable, payroll and general ledger), develop and maintain financial reports, manage personnel administration tasks, lead the annual budgeting process and ensure compliance with funder requirements.
• The Executive Director will oversee the work of the Financial and Administrative Manager and provide guidance on the Organization’s business planning, budget priorities and goals, personnel management, resource allocation, and reporting standards.
• The Treasurer will serve as the financial liaison between the Board of Directors and administrative staff. The Treasurer will advise on financial reporting, ensure compliance with legal requirements and Generally Accepted Accounting Principles (GAAP), prevent and limit risk, conduct internal audits and advise on internal controls.
• Bank statements and bookkeeping files will be reviewed monthly by at least one person in addition to the person performing the reconciliation. In a small organization, it is not always feasible for bank deposits to be made by someone other than the person recording receipts and so this is not required. However, the monthly review of bookkeeping files and bank statements by someone other than the person recording the information will ensure that sufficient controls are in place.
• No checks or payments should be signed or solely authorized by the person to whom they are issued.

 

Safeguarding Assets

The following policies and procedures will ensure the security of organizational resources:

• The Financial and Administrative Manager under the direction of the Executive Director shall have primary responsibility for ensuring that proper financial management procedures are maintained and that the policies of the Organization are carried out. The Treasurer shall provide oversight on all financial management procedures and have regular check-ins outside of the Board meeting.
• The Board of Directors will provide fiscal oversight in the safeguarding of the organizational assets and shall have primary responsibilities for ensuring that all internal and external financial reports fairly present its financial condition.
• A filing system that supports efficiency and accurate document retrieval will be maintained for all financial records, as outlined by standard operating procedures. Files will be labeled with a consistent naming convention, organized for efficient tracking and monitoring, and stored on secure, cloud-based software.
• Checks, credit, and debit cards will be stored under lock and key when not in use.
• Actual income and expenditures will be compared to the budget on a quarterly basis.
• All funds will be kept at Frontier Bank, Elgin, Texas.
• No bank account should contain more than the FDIC insured amount.
• Bank statements will be reconciled monthly by the Executive Director, Financial and Administrative Manager, or
  bookkeeper/accountant.
• The Board of Directors shall approve any new signers for each bank account and any new and necessary bank accounts.
• The Financial and Administrative Manager is responsible for promptly notifying financial institutions of any changes
  to authorized signers on organizational accounts.
• Documents on all fixed assets will be kept in a locked file.
• Appropriate insurance for all assets will be maintained.

 

Funds Received/Receipts Policy

The following policies govern how funds received by the Organization will be processed:

• All checks are endorsed with “For deposit only” immediately upon receipt.
• All cash receipts are recorded in the Organization’s financial management system.
• The Financial and Administrative Manager will record all receipts in the donor database.
• The Executive Director and Financial and Administrative Manager will verify that online receipts are being transferred to the bank account on a regular schedule.
• Cash will be managed in a way that its receipt is tracked and the associated deposit matched to the cash log.

Procedures

• All checks and cash receipts received through the mail or in person are restrictively endorsed immediately by the
  Financial and Administrative Manager or Executive Director and recorded in the bookkeeping system, listing the date received, payor, check #, and amount received, as well as other pertinent information about the funds.
• Cash and checks will be deposited promptly and stored safely until deposit.
• The Financial and Administrative Manager or Executive Director shall prepare the bank deposit and either make the
  deposit or forward the entire package to the bookkeeper. Reasonable efforts will be made to ensure that cash
  deposits are verified by an authorized person different from the person preparing the cash deposit.
• For funds received online via ACH or by credit card, the Financial and Administrative Manager or Executive Director
  or bookkeeper will post the deposit to the bookkeeping system promptly.
• The Financial and Administrative Manager, Executive Director, or bookkeeper shall code all funds received according to the chart of accounts and ensure that all deposits are properly entered into the bookkeeping system.
• The Financial and Administrative Manager, Executive Director, or bookkeeper will review the bookkeeping account
  monthly and, in this way, they will check each other’s work and provide for internal control.

 

Accounts Payable and Fund Disbursement Policies

The following policies and procedures govern how funds disbursed by the Organization will be approved and processed:

• The Treasurer or President will approve expenditures within the parameters set by the approved annual operating budget, with the exception of their personal expense reimbursement items, which must be approved by another person having check signing authority. Another Board member may approve expenditures in rare instances when neither authorized person is available.
• The Financial and Administrative Manager and Executive Director have authority over the Organization bank account. Each has single signature authority up to and including $5,000.
• The President and/or Treasurer may, at their discretion, approve certain expenditures over $5,000 in advance, including recurring expenditures over $5,000. The President, at their discretion, may elect to have the board
  approve certain expenditures over $5,000.
• All payments must be accompanied by an invoice, receipt, or other documentation that validates the payee, amount, date, items purchased, and purpose of the purchase.
• All disbursements, except petty cash, are made by check or credit card and are accompanied by substantiating documentation. Credit card statements will be reconciled to substantiating documentation monthly.
• All checks are prenumbered and accounted for monthly.
• Blank checks are stored in a locked and fire-proof container.
• When a check is issued, the signer is responsible for marking “PAID” on the substantiating documentation.
• Blank checks may never be signed in advance.
• Electronic banking allows wire transfers, electronic transfers, stop payments on checks, and account balance inquiries be initiated and completed via computer or telephone. Wire transfers, electronic transfers, and stop payments cannot be set up and approved by the same person. The Executive Director or Financial and Administrative Manager may approve a transaction that is to be completed by the bookkeeper/accountant.

Procedures

• All invoices received are marked with the date received by the Financial and Administrative Manager or Executive
  Director and placed in the accounts payable file.
• The Executive Director and/or the Finance and Administrative Manager approves all invoices and expenditures.
• At least monthly, the Financial and Administrative Manager will review the bank account and bookkeeping records
  ensuring that each expenditure makes sense and has acceptable substantiating documentation. The Financial and
  Administration Manager will have a monthly check-in with the Executive Director to review the Organization’s financial reports.
• The Financial and Administrative Manager and Executive Director or designee will record all disbursements in the
  bookkeeping system within seven days of disbursement.
• Costs will be allocated to programs in the bookkeeping system using the “customer” field.
• Costs paid by contracts including grants, whether directly or through reimbursements are allocated to the contract using the “customer” field to which the funded program applies.
• Copies of all paid invoices and all receipts for debit/credit card transactions will be maintained in a file that can be
  accessed by the Treasurer upon request.
• The bookkeeper/accountant reconciles the bookkeeping system to the bank statement on a monthly basis and must notify the Financial and Administrative Manager and/or Executive Director once complete.

 

Petty Cash Fund

The Organization will maintain a petty cash fund and use of petty cash should only be used when there is no electronic option. The Petty Cash Fund will be reconciled at least every 60 days in the bookkeeping system. All cash not in use will be stored in a secure place. Only the Executive Director, Treasurer, Financial and Administrative Manager or President may authorize use of petty cash.

 

Payroll

The following procedures govern payroll:

• Employees will enter their time into the timekeeping system.
• The Executive Director and / or the Financial and Administrative Manager will review all time sheets and grant
  approval to the bookkeeper to run payroll.
• The bookkeeper will send payroll amounts to the Executive Director or designee who will then write and disburse payroll checks.
• An employee may not sign their own payroll check. The Finance and Administrative Manager will sign the Executive
  Director’s check and the Executive Director will sign the Finance and Administrative Manager’s check. The President will sign checks if the Executive Director and/or Finance and Administrative Manager are unavailable.

 

Purchasing

The following policies govern how purchasing decisions will be made:

• Only the President, Treasurer, Financial and Administrative Manager, or Executive Director is authorized to make purchasing decisions for regular supplies and large equipment, including furniture, computers, and software.
• When Federal or State funds are being spent, all applicable procurement rules and guidelines must be followed.
• Purchasing decisions using grant funds or otherwise restricted funds must be verified in advance as allowable costs and approved by the grant project manager.
• Some form of cost or value analysis shall be made in connection with every procurement action.
• Price should be one of the factors in the evaluation of responses, but the Organization is not required to take the
  lowest price if other factors are important to the decision. Environmental, sustainability, and Made in USA factors
  should also be considered.
• Food purchases should use locally grown and made products to the maximum extent possible.

 

Organizational Credit Cards

The Organization authorizes credit and debit cards for the purpose of facilitating online and business purchases, including business travel that is not easily handled through normal disbursement processing. The use of organizational credit and debit cards creates the opportunity for expenditures to be made without prior approval. The following policies govern how these transactions will be handled:

• Due to the potential for theft, misuse, and auditing problems, use of credit cards is monitored carefully. Only the Financial and Administrative Manager and Executive Director or their designee may be issued an organizational credit or debit card. A debit card will be issued to the Executive Director and Financial and Administrative Manager for the Organization’s bank accounts.
• Other Board members or staff may request that purchases be made for business purposes on their behalf using one of these cards.
• In every instance of credit card usage, the individual using the card will be held personally responsible in the event that the charge is deemed personal or unauthorized.
• All credit card purchases must be reconciled and attached to supporting documentation on a monthly basis.
• The Financial and Administrative Manager will review all credit card purchases monthly for approval and payment.
• The Finance and Administrative Manager, Executive Director, or bookkeeper/accountant will enter all credit card
  transactions into the accounting software monthly.
• The Financial and Administrative Manager, Treasurer, and Executive Director must be notified immediately if a card
  is lost or stolen.
• Misuse of credit cards or failure to follow these procedures will lead to restrictions or loss of credit card privileges.

 

Vendor and Contractual Agreements and Leases

The following policies govern how decisions to enter into agreements with vendors or contractors or leases will be
conducted:

• Only the President, Executive Director or designee may sign a contractual, vendor agreement or lease.
• The Financial and Administrative Manager and Executive Director will maintain a secure file of all vendor, contract,
  and lease agreements according to the document retention policy.
• All vendors who are required to do so by the IRS, must submit an IRS Form W-9 Request for Taxpayer Identification and Certification or equivalent prior to payment.
• A determination is made by the bookkeeper/accountant on the need to file an annual IRS Form 1099-Misc. on payments made to vendors.
• Contracts will be monitored for performance and conformance regularly and always prior to paying any invoice from the contractor.

 

Gift Acceptance Policy

The following policies govern how nonstandard gifts will be handled:

• The Organization solicits and accepts gifts that are consistent with its mission.
• Donations will generally be accepted from individuals, partnerships, corporations, foundations, government agencies, or other entities, without limitations.
• In the course of its regular fundraising activities, the Organization will accept donations of cash, marketable
  securities, bequests, life insurance policies, commercial annuities, retirement funds, and in-kind services.
• Certain types of gifts must be reviewed prior to acceptance due to the special liabilities they may pose. Examples of
  gifts that may be subject to review include gifts of real property, gifts of personal property, and gifts of securities.
• All decisions to solicit and/or accept potentially controversial gifts will be made by the Board of Directors. The primary consideration will be the impact of the gift on the Organization.
• The Organization will not accept gifts that (a) would result in violating its corporate charter, (b) would result in
  losing its status as an IRS § 501(c)(3) not-for-profit organization, (c) are too difficult or too expensive to administer in relation to their value, (d) would result in any unacceptable consequences, or (e) are for purposes outside the Organization’s mission.

 

Security and Computer Controls

The following policies govern the security procedures that will be taken to ensure the safety of physical and electronic records:

• Only the Financial and Administrative Manager, Treasurer, and Executive Director will have access to the passwords
  required to make changes to all Organization bank accounts, online purchasing accounts including those that maintain credit card information, payroll systems, bookkeeping systems, and government system accounts.
• Access codes will be stored in a safe location.
• All passwords will be changed annually.
• Passwords for the organization will be shared on a secure password vault and accessible by staff members requiring entry to the website and databases for their job duties.
• Any password lost or stolen or suspected as such will be changed immediately and reported to the Financial and
  Administrative Manager and Executive Director.
• Access to computer or online systems for accounting, personnel, payroll, and online, and phone banking is controlled by the Financial and Administrative Manager and/or Executive Director.
• Within each system, access permission is set to allow the appropriate level of access depending on staff positions
  and job duties.
• The Financial and Administrative Manager will ensure that regular backups of essential records are conducted on an appropriate schedule.
• All confidential and financial information will be kept in secure files, including personnel files, financial records, invoices or expenses to be paid, cash or gifts to be deposited, fixed asset listings, and petty cash funds.

 

External Audit

• Every three (3) years, as funding permits, an independent CPA will conduct an audit or review.
• The selected auditing firm will not be used for other services except tax form preparation.
• Every three (3) years, a Request for Proposal will be sent to audit firms qualified to provide the type of audit that meets the Organization and/or funder need.
• The Board of Directors will select the audit firm and award the audit contract.
• The audit is reviewed in detail by the Treasurer, but presented to the Board by the auditor, and accepted (or rejected) by the Board of Directors based upon recommendation by the Treasurer.

 

IRS Form 990 Preparation

• A CPA firm or individual will prepare the Organization’s annual Form 990.
• The Financial and Administration Manager will oversee preparation of the form. Once complete, they will submit to the Executive Director for preliminary review.
• The Treasurer or Executive Director will present the form to the Board for review and approval.
• The Financial and Administrative Manager will then ensure it is submitted to the IRS.

 

Risk Management

• The Organization will ensure those risks which the Board deems appropriate using an insurance professional who is
  knowledgeable about the market, understands or is willing to learn about the Organization’s operations, is an assertive advocate for the Organization’s interests, and is organized and responsive to the Organization’s needs.
• The Board will approve purchase of insurance and will review insurance requirements as needed.

 

APPENDIX A

Employee Expense Reimbursement Policies

Travel Expense Reimbursement Policy

Employees are encouraged to track their un-reimbursed employee business expenses in the event they may be itemized on individual tax returns [See: http://www.irs.gov/pub/irs-pdf/p463.pdf and
http://www.irs.gov/taxtopics/tc511.html].

Mileage

The Organization, as funds permit, will reimburse mileage at the Federal mileage rate. Employees should make an effort to carpool with other employees, volunteers, or allies whenever practicable to minimize mileage expenses. Mileage is
reimbursed for legitimate business-related travel by personal vehicle, excluding travel between home and office.

Local transportation

When traveling, employees should attempt to take a local bus or use a ride sharing service. Taking a taxi or renting a car
should be done only when other solutions are not practical. Parking fees and toll fees are reimbursable. Traffic or parking fines are not reimbursable.

Airfare

Employees should generally seek the lowest cost airfare that reasonably allows them to reach their destination efficiently. This doesn’t mean employees should arrive exhausted because they chose a cheap flight with lots of stops. Employees are directed to find a reasonable schedule keeping the goal of the trip in mind. If an employee prefers to drive, reimbursement will be issued for the lesser of the mileage cost and plane fare, taking into account other costs related to mode of travel such as ground transportation and parking.

Overnight Accommodations

When paid accommodations have been approved in advance, employees should generally select a low or average cost hotel.

Meals

While travelling, as funds permit, the Organization will reimburse employees for meals according to the following schedule:

Breakfast $10
Lunch $20
Dinner $40

These are total amounts including tax and tips. Employees are encouraged to eat locally grown food. Partial days will be
reimbursed according to the travel schedule.

No receipts are required, and exceptions require the approval of the Financial and Administrative Manager or Executive
Director.

Employees are not to pay for meals for volunteers or donors, except when unavoidable or with prior approval of Executive Director or Financial and Administrative Manager.

Any deviations from this policy require approval by the Executive Director or Financial and Administrative Manager prior to reimbursement.

Other Expense Reimbursement Policy

Technology Reimbursement

Employees will receive reimbursement for costs associated with technology used for work purposes including but not limited to mobile devices, internet access, computers and software applications. Full-time employees will receive a technology reimbursement at the rate of $150/month. Part-time employees will receive a technology reimbursement at a rate determined by the Executive Director based on the need of the part-time employee’s job duties.

Receipts and Documentation

• All expenses submitted for reimbursement must be documented showing date, purpose, amount, and to whom
  expense was paid.
• Original receipts must be in the form of a PDF document.
• No reimbursement for expenses will be issued without a receipt, except as previously indicated for meals.
• All expenses to be reimbursed, including business travel require pre-approval from the Finance and Administrative
  Manager or Executive Director.

Approved by Board of Directors on 05/14/2025