Financial Protocol

This Standard Operating Procedure (SOP) defines the mandatory financial processes for American Legion Post 86, ensuring the integrity and accuracy of the Post’s financial records and resource management.

I. Core Doctrine & Authority

Governing Authority: The Post Finance Officer is responsible for managing all Post finances and ensuring funds are safely deposited.
Authorization: The Post Executive Committee is entrusted with the general financial authority to authorize and approve all expenditures. No funds shall be disbursed without proper authorization documented in the approved minutes of a Post or Executive Committee meeting.
Required Accounts: The Post must maintain, at minimum, a General Account (primary operating funds) and a Benevolent Account (charity funds).

II. Accounting & Record-Keeping

Function	Protocol (SOP)	Compliance/Tool
Receipt & Reconciliation	All financial transactions, receipts, and source documents shall be tracked, reconciled, and categorized within the Post’s designated cloud-based accounting system.	WAVEAPPS
Internal Ledger Management	The Post Finance Officer shall maintain supplementary tracking ledgers to provide financial continuity and historical data.	Excel Spreadsheets (Monthly & Annual)
Document Retention	Tax returns, bank statements, and accounts payable/receivable ledgers must be retained for a period of seven (7) years.	C&BL Directive

III. Funds Management & Deposit Protocol

Deposit Timeline: All cash, checks, and electronic payments received by the Post must be prepared for deposit as soon as practically possible, and in no case later than two (2) weeks (14 calendar days) from the date of receipt.
Disbursement Authority (Checks): The signature of the Post Finance Officer is the sole requirement for the disbursement of funds by check.
Alternate Authority: Should the Finance Officer be unavailable, a check may be signed by the Commander, Adjutant, or (1st) Vice Commander, provided the reason for the Finance Officer’s unavailability is documented.

IV. Expenditure & Reimbursement Protocol

To receive payment or reimbursement, all members and officers must adhere to the following procedures:

Deadline: All receipts, invoices, and requests for reimbursement related to an expenditure must be submitted to the Post Finance Officer by the deadline set for the next regular General Membership Meeting.
Consequence of Failure: Failure to submit required documentation by the established deadline may result in the rejection of the reimbursement request.
Approved Submission Channels: Documents may be submitted through the following official methods:

Emailed directly to the Post Finance Officer.
Delivered in person to the Post Finance Officer.
Placed in the Finance Officer’s designated mailbox at the Post office.
Uploaded to the designated receipt folder on the Post’s shared drive.
For authorized users, receipts may be uploaded directly into the Post’s accounting software (WaveApps).

V. Reporting & Accountability

Periodic Reports

Monthly Report: The Post Finance Officer shall report in writing on the financial condition of the Post to the Executive Committee and general membership once a month. This report shall include the monthly Excel ledger.
Executive Review: The Executive Committee shall receive the monthly financial report at its meeting preceding the General Membership Meeting.
Annual Review: A comprehensive annual financial report, including the year-end Excel ledger, shall be presented to the general membership at the January regular meeting.

Compliance

Annual Financial Review: An annual financial review of all Post records will be conducted at the end of the fiscal year, led by the Post Judge Advocate.