Accounting & Financial Procedures

/Accounting & Financial Procedures

Accounting for Contributions

NCWVCAA shall recognize contribution income in the period in which the Agency receives restricted or unrestricted assets in nonreciprocal transfers, or unconditional promises of future nonreciprocal asset transfers, from donors. Contribution income shall be classified as increases in unrestricted, temporarily restricted, or permanently restricted net assets based on the existence or absence of such restrictions. Unconditional promises to give shall be recorded as assets and increases in temporarily restricted net assets (contribution income) of NCWVCAA in the

Distinguishing Contributions from Exchange Transactions

NCWVCAA may receive income in the form of contributions, revenue from exchange transactions, and income from activities with characteristics of both contributions and exchange transactions. NCWVCAA shall consider the following criteria, and any other relevant factors, in determining whether income will be accounted for as contribution income, exchange transaction revenue, or both: 1. NCWVCAA’s intent in pursuing the asset, as stated in the accompanying materials; 2. The expressed intent of the entity providing resources to NCWVCAA


The following definitions shall apply with respect to the policies described in this manual: Contribution – An unconditional transfer of cash or other assets to the Agency, or a settlement or cancellation of the Agency’s liabilities, in a voluntary nonreciprocal transfer by another entity or individual. Condition – A donor-imposed stipulation that specifies a future and uncertain event whose occurrence or failure to occur gives the promisor a right of return of the assets it has

The Role of the Board of Directors

The Board of Directors governs and directs the affairs of the agency consistent with the Articles of Incorporation and the By-Laws. The basic functions of the Board Members include: A. Defining the vision and the mission of the agency. B. Setting the goals and select the strategies that will enable the agency to achieve the desired future. C. Ensuring that agency finances are properly secured and those resources are properly mobilized. D. Managing the relationship of the Board


The following accounting manual is intended to provide an overview of the accounting policies and procedures applicable to North Central West Virginia Community Action Association, Inc., which shall be referred to as “NCWVCAA” or “the Agency” throughout this manual. Since accommodations may need to be made for instances such as illness, annual leave and open positions, the specific positions referred to in this document as having the responsibility for certain functions may need to be reassigned. This


Effective Date(s) of Accounting Policies The effective date of all accounting policies described in this manual is July 1, 2019. If a policy is added or modified subsequent to this date, the effective date of the new/revised policy will be indicated parenthetically immediately following the policy heading. Disclaimer: It is recognized that not every situation that may arise in performing the financial obligations of the corporation may be addressed in this document. The Finance Director