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Three Principles of Sound Financial Practice

1. Proper documentation

• Have a written policy that requires proper documentation for all financial transactions (receipts, contracts, reimbursements, etc.).
• Keep invoices from all suppliers/contractors for the required period of time (seven years according to government regulations).
• Have a requisition/approval form for large expenses.
   

2. Proper financial procedures, policies and controls

• Require two out of three/four authorized signatories on cheques.
• Draft a list of authorized signatories.
• Approve all expenses to be reimbursed beforehand.
• Implement processes to ensure compliance with all policies and procedures, including periodic reviews of various expenses and reconciliation of bank accounts.
   

3. Proper accounting records

• Leave an audit trail; organize and keep all receipts, invoices, contracts, cheque stubs and any other relevant documentation in a secure location.
• Keep separate accounting books for revenue, expenses and petty cash (float).
• Use either a general ledger book or an accounting software to record all financial transactions; this will facilitate the transfer of information to your accountant at the end of the fiscal year.

Things to Avoid

• Leaving blank cheques in publicly accessible areas
• Keeping cash in publicly accessible areas
• Storing more cash than is necessary
• Having the person claiming expenses approve them
• Having cheque signatories write/approve their own cheques
• Pre-signing blank cheques
• Issuing reimbursements without proper and complete documentation

Things to Remember

• Prepare budgets for everything: events, projects, initiatives, meeting expenditures, etc.
• Pay off debts as soon as possible to avoid interest.
• Deposit cash and cheques in a timely manner.
• Be informed about Revenu Québec's and Registraire des Entreprises du Québec (REQ)'s policies and documentation.
• Be informed about documentation required by your MOA with McGill University (e.g., insurance policy, annual declaration of incorporation, audited financial statements, etc.).