EFTA00584233.pdf

IMPROVING THE FINANCE FUNCTION Prepared by R Joslin DRAFT • Establish and centralize finance function o Various finance functions performed by multiple persons in piecemeal/ incomplete fashion o Finance function most "bill pay" currently o Expand review and checking function, eg plane boat o Define review function 1. Lack of clarity of nature and extent of review and accountability • Ensure accurate record keeping and complete documentation o Ensure contracts and financial records are centralized and retained by Finance 1. Individual file retention in email or private directory/ folder limits financial function 2. Risk of inaccurate and incomplete accounting/ financial/ tax reporting 3. Centralized documentation serves all FO team use 4. Ensure 3r' party reporting directly to Finance vs mail forwarding to Finance o Eliminate processes conducted my multiple parties and centralize to FO • Charity payment and recordkeeping performed by Home staff, Melanie, FO o Define party responsible for maintaining records • Charity pledge recordkeeping and compliance to single person! department • Ensure tax/ accounting/ finance are involved in legal / investment/ estate/ art planning o Ensures comprehensive attention to diverse issues and ensure non-financial interests are communicated to Finance o Risk of inaccurate or incomplete reporting o Enhances oversight/ compliance and attending to details of contract, eg avoid credit line expiration • Develop robust internal control process o Ensure segregation of approval and payment responsibilities o Segregate functions to ensure check and balances o Mail opened by Finance team • Implement robust banking/ investment function o Eliminate centralization of approval and payment responsibilities with single individual o Addition of Finance team members to institute segregation of duties o Eliminate processes that have inherent risk, eg email communications to brokers/ bankers for wires/ transactions; photocopied signature on wires o Expand 3rd party reporting directly to FO! trustees of financial information EFTA00584233  o Segregate functions — account opening and closing„ make investments decisions; payment/ approval • Delegate responsibilities to Finance team o Move ministerial functions to bookkeepers, eg obtain valuations, invoices o Expand review function to bookkeeping/ controller o Develop defined list of vendors that Finance has final bill approval responsibility o Allow Finance team to communicate directly with 3 n° parties, eg investment contacts • Improve and Define Approval function o Trustee approval centralized to Finance team similar to FO approvals o LDB/ DRB — define items or levels that require their sign off o Finance team — Maintain open item list of items requiring approval to ensure timely signoff, eg invoices do not remain unpaid for long periods or with multiple persons o Implement set of Authorized Persons/ Officers 1. Use officers to have agency to perform financial functions • Approve wires; open accounts; transfer assets, eg transfer partnership interests to related party; sign wires/ tax returns. EFTA00584234