Internal Control Procedures

The purpose of internal control procedures is to set safeguards against the misuse of Region assets and create transparency, especially regarding cash receipts and cash disbursements.

HANDLING CASH & CHECKS

Regions should avoid transacting in cash as much as possible. Regions may not maintain a “petty cash” fund, but may fund a cash box for temporary use at in-person registrations, fundraisers, tournaments, training events, or other specific events. Online registration and payments in the AYSO Registration System of Record is preferred and most secured method. Also consider accepting credit cards or other secure payment methods. The following are best practices when transacting in cash is necessary:

•        Only withdraw as much cash as you estimate is reasonably necessary to make change.

•        When handling cash, at least two people over the age of 18 must be present, one of whom should be a trained and certified volunteer.

•        Use a lockable cash box and ensure cash is kept in a secure location at the event and during transport.

•        A cash receipt book (available at any office supply store) must be used to record payments received in cash. The original cash receipt slip must be given to the customer and the copy kept in the book.

•        The cash receipt book should contain per-numbered receipts and like Region checks, every receipt must be accounted for.

•        Checks and money orders should be made payable to “American Youth Soccer Organization” or “AYSO.”  It is also acceptable to include the Region number (e.g. AYSO Region 999).

•        The player’s or volunteer’s name and/or purpose of payment should be listed in the memo line as applicable.

•        Use a cash tally sheet to count the cash and checks at the end of the day.  A form is available at Cash Tally Sheet.

•        Any cash or checks received must be reconciled to the cash receipt book and the bank deposit slip at the end of each day/event by two registered volunteers, one of whom should be the treasurer.

•        All cash and checks must be deposited to the checking account on the first banking day possible.

EXPENSE REIMBURSEMENTS

Volunteers who incur expenses on behalf of the Region should be given access to a Divvy Card or may be reimburse.  No reimbursements should be made without proper approval and proper budget verification according to the AYSO Schedule of Limits and Volunteer Reimbursement Policy.

•        Reimbursement for expenses for regional volunteers other than the Regional Commissioner must be approved by the Regional Commissioner. Reimbursement for expenses for the Regional Commissioner must be approved by the Area Director.

•        The Schedule of Limits can be found at Schedule of Limits.

•        The Volunteer Reimbursement Policy can be found in National Policy Statement 3.1.

•        The mileage reimbursement rate is equal to the charitable mileage rate as defined by the IRS, which is lower than the rate paid by commercial business.

•        The use of gift cards is subject to restrictions and record keeping requirements as explained in the Volunteer Reimbursement Policy.

•        Reimbursement using Divvy Cards is explained at Divvy Reimbursements.

OTHER CONTROLS

A Region’s internal controls should also include the following:

•        Under no circumstances should anyone sign blank checks.

•        When accepting credit cards or other secure payment methods such as Zelle, ensure that all funds go directly to the Region’s checking account.  Do not use payment methods that are received by a volunteer and must be transferred or paid over to the Region.

•        The Region’s financial records must be audited at least annually by the Area or Section Auditor .

WARNING SIGNS AND RED FLAGS

Some of the warning signs and red flags that might indicate the misuse of funds or potential fraud include:

•        The Region is running out of cash.

•        The Region’s checks are bouncing.

•        The Region’s savings are being depleted without documentation.

•        Vendors are complaining about not being paid in a timely fashion.

•        The Regional Board is not being provided with written periodic financial reports.

•        Fundraising activities brought in much less cash than expected.

Contact the AYSO Finance Department immediately if fraud or the misuse of funds is suspected.

REGIONAL AUDITS

An audit of the Region’s books and records must be done annually, each time there is a change in a bank account signer, the Treasurer or Regional Commissioner, and/or from time to time as may be requested in order to ensure that proper internal controls are used and that Region assets are protected. To request an audit, please contact your Area Director.

Note: The person performing the audit must NOT be a person who is authorized to sign on the accounts and must NOT be a member of the same household as the Regional Commissioner or Regional Treasurer.

The basic function of the Auditor is to assist the Regional Board and the applicable Area and Section in the fiduciary responsibilities to protect the Region’s assets by reviewing and monitoring the Region’s financial controls and records.

For more information about Regional audits, see Auditor.