Financial Information

The Finance Committee develops the annual budget for JEN and makes sure that JEN remains on budget.

The Finance Committee also makes recommendations on fiscal issues to the JEN Board and makes sure JEN operates according the the Financial Procedures developed by the committee.

Please Note: This information is provided to members of the Jazz Education Network. Distribution to non-members is strictly forbidden.

Financial Procedures

Financial Procedures

(as Amended JEN Board of Directors 1/4/11)


  1. The Finance Committee formulates financial policies, delegates administration of the financial policies to the Board of Directors and reviews operations and activities.
  2. The Executive Committee has management responsibility including financial management.
  3. Financial duties and responsibilities must be separated so that no one director has sole control over cash receipts; disbursements; reconciliation of bank accounts; etc.
  4. Professional financial service providers will be established annually. For 2010-2011 these include QuickBooks Online, the Let’s Talk Insurance broker, Bank of America and RSM McGladrey, Inc..
  5. The Treasurer will maintain a current and accurate log of the chart of accounts, job accounts and accounting classes.
  6. These policies and procedures will be reviewed annually by Finance Committee

II. CASH RECEIPTS (includes checks)

  1. The Operations Manager opens any mail addressed to Jazz Education Network or without specific addressee. The receipt of checks or cash will be recorded in the accounting system. All other checks or cash will be immediately forwarded to the Treasurer.
  2. The Treasurer will endorse all checks by rubber stamp to read as follows: a) PAY TO THE ORDER OF ________; b) BankAccount #; c) FOR DEPOSIT ONLY; d) Organization Name; e) Account Number; and f) The endorsement stamp will specify into which corporate account (savings, checking) the deposit will be made.
  3. A report will be created that includes the source and amount of the receipt as well as the total daily deposit amount for checks or cash only.
  4. Documentation for all receipts (a copy of check, letter, etc.) will be attached to the duplicate slip and filed chronologically.
  5. All receipts will be deposited intact. No disbursements will be made from cash or check receipts prior to deposit.
  6. Cash shall be locked in a secure location until taken to the bank.
  7. The Treasurer will receive a copy of all deposit reports for review.
  8. Checks received by the Operations Manager location will be endorsed as in #2 above and mailed to the mail office for processing. Receipts will be given for cash as in #8 above.



  1. All invoices will be immediately forwarded to the Treasurer who will review all invoices for mathematical accuracy, validity, conformity to the budget (or other board authorization) and compliance with bid requirements.
  2. Prior to payment, all invoices will be approved (indicated by initialing) by the Treasurer, who will code the invoice with an appropriate expense or other chart of accounts line item number, class and job number (where applicable). By approving an invoice, the Treasurer indicates that it has been reviewed and authorizes a check.
  3. Approved invoices will be entered into the accounting system using the “Enter Bills” screen.
  4. The Treasurer will prepare checks on a weekly basis.5. Authorized signers on Jazz Education Network accounts include those as current in the By-Laws of the organization.


  1. The Treasurer will be responsible for all blank checks.
  2. All checks and online payment transactions, including payroll will be signed by designated members of the Board of Directors and must be authorized by the Treasurer.
  3. The Treasurer will generate checks for approved invoices through the accounting system using “Pay Bills” and/or “Write Checks” screens where appropriate.
  4. Voided checks will have “VOID” written boldly in ink on the face and have the signature portion of the check torn out. Voided checks will be kept on file.
  5. In no event will: a. invoices be paid unless approved by an authorized signer; b. blank checks (checks without a date or payee designated) be signed in advance; c. checks be made out to “cash”, “bearer”, “petty cash”, etc.d. checks be prepared on verbal authorization, unless approved by the Finance Committee.
  6. In the event that it is necessary to issue a duplicate check for checks in an amount over$50, a stop payment will be ordered at the bank on the original check.


  1. Bank statements will be reviewed by the Treasurer, President Elect and one other Finance Committee Member.
  2. The Treasurer will reconcile the bank statement monthly.
  3. The Treasurer of the Board will receive monthly statements of checks paid on all accounts.
  4. The President Elect shall verify the reconciliation of the bank accounts on a monthly basis.
  5. On all checks outstanding over 90 days, the Treasurer should take appropriate action.


A. PURCHASES $10,000 or less

  1. Approval levels: a. $0-$1,000 no approval necessary; b. $1,001-$10,000 two of the following individuals—President, Treasurer or a member of the Finance Committee must approve the purchase
  2. The Event Director is responsible to know if the item ordered is within the budget and guidelines.
  3. If purchase is less than $1,000, persons authorized by the Bylaws for immediate purchase and delivery can make the purchase. When this is done, invoice copies are to be turned into the Event Director and then forwarded to the Treasurer.


  1. Purchases over $10,000 will be required to undergo a competitive bid procedure.
  2. All bid requests will contain clear specifications and will not contain features which unduly restrict competition.
  3. The Event Director will be responsible to ensure that all conditions and specifications of a contract, bid, or order have been satisfactorily fulfilled and will be responsible for timely follow-up of these purchases.
  4. The Event Director will obtain at least 3 bids wherever possible unless prior approval by Finance Committee has been obtained.
  5. Purchases of over $10,000 will not be fragmented or reduced to components of less than $10,000 to avoid the bid process.


  1. Consideration will be made of internal capabilities to accomplish services before contracting for them.
  2. Written contracts clearly defining work to be performed, terms and conditions will be maintained for all consultant and contract services.
  3. The qualifications of the consultant and reasonableness of fees will be considered in hiring consultants.
  4. Consultant services will be paid for as work is performed or as delineated in the contract.
  5. The Board of Directors will approve audit and other significant contracts.
  6. The Bookkeeper, in consultation with the Treasurer will prepare 1099 returns for consultants at yearend as required.



  1. Equipment shall be defined as all items (purchased or donated) with a unit cost of $500 or more and a useful life of more than one year.
  2. The Treasurer will maintain an inventory log; which shall list a description of the item, date of purchase or acquisition, price or fair value of the item and its location.
  3. A depreciation schedule shall be prepared at least annually for the audited financial statements.
  4. The Treasurer will record all equipment in the accounting system. An entry must be made whenever property is disposed of or acquired.



  1. The Executive Committee will review leases prior to submission to the Board of Directors for approval.
  2. All leases, clearly delineating terms and conditions, will be approved by the Board of Directors and signed by the proper designates of the Board of Directors.
  3. The Treasurer will keep a copy of each lease on file.
  4. The Consulting Accountant will be notified of each lease and lease specifications, and will make proper general journal entries for same.


  1. The Finance Committee will review all leases.
  2. All leases, clearly delineating terms and conditions, will be approved and signed by the Executive Committee.
  3. The Treasurer will keep a copy of each lease on file.
  4. The Consulting Accountant will be notified of each lease and lease specifications, and will make proper general journal entries for same.


  1. Reasonable, adequate coverage will be maintained to safeguard the assets of the corporation. Such coverage will include Board and Officer Insurance, property and liability, worker’s compensation, employee dishonesty and other insurance deemed necessary.
  2. The Treasurer will carefully review insurance policies before renewal.
  3. The Treasurer will maintain insurance policies in insurance files.
  4. Insurance policies will correspond to the calendar year whenever possible.
  5. The Treasurer will prepare and maintain an insurance register.



  1. Jazz Education Network will utilize a double entry system for accounting for all funds.
  2. Adequate documentation will be maintained to support all general entries.
  3. At the end of each month, the Treasurer will prepare a Balance Sheet, Statement of Activities, and Statement of Activities by Project that will be reviewed by the Executive Committee.
  4. The Statement of Activities report will include a comparison to the budget.
  5. Jazz Education Network will maintain its accounting records on the accrual basis in a manner that facilitates the preparation of audited financial statements conforming to generally accepted accounting principles.


  1. The Executive Committee will carefully review each award and contract to ensure compliance with all financial and programmatic provisions. The Treasurer will maintain originals of all grants and contracts in a file. The Consulting Accountant will prepare initial entries as appropriate to record each award.
  2. The Treasurer will prepare and maintain on a current basis a Grant/Contract Summary form for each grant or contract awarded to Jazz Education Network. This form shall include the name, address, contact person, and phone number for the funding organization; the time period applicable to expenditures; all significant covenants (such as bonding or liability insurance requirements) and restrictions on expenditures; all require financial and program report and due dates; and the chart of accounts line item number for the revenue deposited.
  3. Payments for projects for which Jazz Education Network serves as fiscal agent shall be paid out within one week.
  4. The Consulting Accountant will prepare financial reports to funding sources as required.
  5. The Executive Committee will review and approve all reports to funding sources.
  6. It will be the responsibility of the Treasurer to insure that all financial reports are submitted on a timely basis.


  1. The Finance Committee and the Executive Committee will prepare the financial budget.
  2. The Treasurer will insure that budgets are on file.
  3. The Board of Directors must approve proposed changes in the budget, should they exceed $500 or 25% of the line item, whichever is greater.


  1. Loans shall be handled in accordance with the current by-laws of the Jazz Education Network.



  1. The Secretary of the Board will prepare accurate minutes of all meetings of the Board of Directors and committees.
  2. The Treasurer will note all items in the minutes relating to finance and take appropriate action.


  1. Donations of cash and non-program related income will be separately accounted for.


  1. Documentation will be maintained for accounts receivable.
  2. Accounts receivable will be recorded in the books and collected on a timely basis.


  1. Financial procedures will be reviewed annually by the Finance Committee. The Board of Directors must approve changes to the financial procedure manual prior to implementation.

E. FORM 9901.

  1. The Board of Directors in conjunction with the audit will authorize preparation of Form 990. Form 990 will be signed by a designate of the Board of Directors.
  2. Copies of Form 990 will be files in the Treasurer’s files, and a copy of the Jazz Education Network Form 990 and Form 1023 shall be located at the Treasurer’s Office for public inspection and/or copying.


  1. The Board of Directors shall annually contract with an independent auditing firm a full audit of the books, to be completed prior to the following first of September.


  1. The Jazz Education Network executive committee must authorize all fiscal sponsorship arrangements, which are then approved by the board.
  2. All fiscal sponsorship arrangements will begin with a written agreement, stating the terms of the relationship and the purpose for the use of funds.
  3. Fiscal sponsorships will be limited to projects for which the Jazz Education Network executive committee determines that the project is charitable and consistent with the mission of strengthening the corporation, and that no real or perceived conflicts of interest exist with board or executive committee members.
  4. The Jazz Education Network will negotiate with the sponsored project a rate for indirect or direct costs to cover the corporation’s expenses of administering the temporarily restricted fund.
  5. Sponsored projects will be required to submit full and complete quarterly and year end reports to the corporation by the end of the fiscal year, June 30, and must include:

• detailed expenses using budget categories for original grant;

• program accomplishments and activities;
• amount of remaining funds.

       6. Any changes in the purpose for which grant funds are spent must be approved in writing by the Executive
Committee before implementation. The Jazz Education Network retains the right, if sponsored project’s
breaches the fiscal sponsorship agreement, or if a sponsored project jeopardizes the legal or tax status, to
withhold, withdraw, or demand immediate return of grant funds.

7. The Jazz Education Network’s Treasurer will submit quarterly reports to the Executive
Committee, to be circulated to the entire board, on the status of active fiscal sponsorships.

8. The Jazz Education Network will file appropriate tax forms for sponsored projects, including IRS form 1099.

2018-2019 Financials