internal audit
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Internal Audit. Presented by: Carol Oman Director of Internal Audit. What is Internal Audit?. Internal Audit reviews or audits procedures and processes to determine if a school or department handles areas properly and to make suggestions on improving these areas. - PowerPoint PPT PresentationTRANSCRIPT
Presented by:Carol Oman
Director of Internal Audit
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Internal Audit reviews or audits procedures and processes to determine if a school or department handles areas properly and to make suggestions on improving these areas.
If concerns are noted, Internal Audit works with pertinent personnel to resolve the concerns and prevent them in the future.
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Determine if internal controls (checks & balances) are in place to safeguard assets.
Determine if procedures are being followed.
Provide an independent / objective perspective.
Conduct investigations of fraud.
Uncover problems and concerns before they become material.
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Reports functionally to the Board of Trustees.
Reports administratively to the Superintendent.
Follows the Institute of Internal Auditors’ International Standards for the Professional Practice of Internal Auditing.
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Projects performed annually
High Risk Areas based on a risk assessment
Requests from Board / Superintendent / Associate Superintendents / Principals
Special Projects & Questions
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Annual Financial Audit Conflict of Interest
◦ Employees with Primary Purchasing Responsibilities◦ Vendors◦ Officers (Superintendent) & Board Members
Financial Audits – Schools & Departments Human Resources / Payroll
◦ Salaries Parent Organizations
◦ PTOs◦ Booster Clubs
Travel Expenditures
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Contact Principal about the audit (unless a surprise audit). Petty cash is always a surprise audit.
Document procedures and processes.
Perform testing.
Discuss results of the work.
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Draft Report is provided to the Principal.
◦ Details and results of testing performed.
◦ Commendations for areas being handled well.
◦ Recommendations if concerns are noted.
Final Report is issued.
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Money Received
All money received should be:
◦ receipted,
◦ counted in front of the person turning in the money,
◦ recorded to the proper account, and
◦ deposited daily.
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Money HandlingMoney should not be kept in a desk, filing cabinet, or other location. All money should be kept in the safe.
Activity funds are centralized; therefore, no bank accounts, except those set up by the Finance Office, should be used.
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Money HandlingAll money received must be submitted to the Financial Secretary daily. Money cannot be held to make change and cannot be used to make purchases.
Money received cannot be used to cash personal checks.
All petty cash funds or change funds must be approved by the Principal and the Finance Office.
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Money in SafeWhen money is to be placed in the safe and a face-to-face count cannot be done at that time:
◦ Money should be put in a sealed courier bag with the name of the person turning in the money, the date, the club or reason money was collected.
◦ Financial Secretary should also sign and date the sealed courier bag and then secure the bag in the safe.
◦ The sealed courier bag should not be opened unless the person turning in the money and the Financial Secretary are present.
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Fund-Raisers Fund-Raising Activity Report
◦ Permission to hold fund-raiser◦ Account for the fund-raiser
School / School Group Fund-Raisers◦ Financial Secretary - Verify the deposits and
expenditures reported on the Operating Report.
PTO / Booster Club Fund-Raisers◦ Treasurer – Verify Operating Report information.
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Fund-Raisers – IRS ProhibitionsCannot require anyone to participate in a fund-raiser.
Cannot require that a certain amount be sold or that a certain amount be donated in lieu of fund-raising.
Cannot penalize anyone for not participating in a fund-raiser.
Cannot use individual accounts. Cannot credit an individual based on revenues raised to
offset that individual’s expenses. Amount raised must benefit a campus / organization as a
whole.
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PurchasesMoney expended should be:
◦ Approved prior to order being placed,
◦ paid to appropriate vendors,
◦ for school-related expenses, and
◦ paid through the District’s Accounts Payable Department.
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Purchases Are funds available for the purchase?
Are the items being purchased appropriate for the school?
How was the vendor selected? Has this vendor been used before?
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How to select a Vendor for a Purchase1)Available from the Distribution Center?
2)Included in a Bid or Contract?
3)If not in bid or contract, then estimate annual district purchases of type of item.
a) Less than $5,000 – No Quotesb) $5,000 to less than $25,000 – Written Quotesc) $25,000 or more – Competitive Bids / Proposals by Purchasing Dept.
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Purchases Bid or Contract
Use the bid or contract price. Document bid or contract # on PO.
Quotes - $5,000 or more and less than $25,000 Receive written quotes. Complete quotation form. Indicate quote # on the PO. Submit the quotation form and written quotes to the
Finance Office.
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Petty Cash
Money on hand plus receipts must equal the petty cash amount allocated for your school.
No cash advances should be made.
No personal checks should be cashed.
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Reconciliations Financial secretary must reconcile the
school’s accounting records with the general ledger balances monthly.
Document the reconciliations.
Principal should review and approve the monthly reconciliations.
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Spot Checks by PrincipalSuggest that the Principal do surprise counts of petty cash periodically.
Suggest that the Principal check the contents of the school safe periodically to ensure that money is being deposited timely.
Have the financial secretary and another person present when these counts / checks are done.
Maintain a log of when these counts / checks are conducted and have pertinent people initial the log.
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In accordance with the Institute of Internal Auditors’ Standards, a quality assessment review of the Internal Audit Department must be performed every five years by an independent external reviewer.
Conroe ISD performed the last review and the next review is planned for the current year.
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Finance – http://inside.cfisd.net/depts/finance/default.htm
Sales Tax Tips
Purchasing – http://inside.cfisd.net/depts/purchasing/purchasing.htm
Requirements for Competitive Quotes and Bids Bid and Contract Awards
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Fund-Raisers – http://inside.cfisd.net/policies/fundraiser.htm
Fund-Raiser Guidelines Word Version of Fund-Raising Activity Report Approved Fund-Raiser Vendors List
Booster Clubs – http://www.cfisd.net/campuses/booster/booster.htm
PTOs – http://www.cfisd.net/campuses/pto/pto.htm
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Carol Oman, CPA, CIADirector of Internal [email protected]
Pat StefanInternal Auditor [email protected]
Janett Tapia-GonzalezInternal Auditor [email protected]
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Audit, Fraud, PTO & Booster Club Questions Internal Audit
Financial QuestionsKaren Smith
Assistant Supt. / Business & Financial [email protected]
Mable IslesDirector of Financial [email protected]
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Accounts Receivable and Sales TaxSha Shena CooperAccounts Receivable [email protected]
Fund-RaisersMarty EdwardsDirector of General [email protected]
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Finance Webpage Purchasing Webpage Requirements for Competitive Quotes and Bids Fund-Raiser Information Webpage Record Retention – School Financial Records PTO and Booster Club Webpages
Questions???Questions???
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