presented by: carol oman director of internal audit 12/05/20141
TRANSCRIPT
Internal AuditPresented by:
Carol OmanDirector of Internal Audit
12/05/2014 1
Internal Audit Responsibilities 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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Reporting Structure & ProjectsReports functionally to the Board of Trustees.
Reports administratively to the Superintendent.
Prepares an Annual Audit Plan that includes high risk areas, requested audits, projects performed annually, and special projects.
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Audit Process 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. Draft report, Principal reviews report, and
receive responses if concerns are noted. Issue final report.
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CFISD Compliance CourseFinancial Section
Money Handling Procedures
Purchasing Procedures
Fund-Raisers
Conflict of Interest
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Financial Audit - SchoolsMoney Received
All money received should be:
receipted or documented on a Cash Receipt Sheet,
counted in front of the person turning in the money (face-to-face count), and
delivered to the Financial Secretary daily for deposit.
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Financial Audit - SchoolsMoney Handling Money should not be kept in a desk, filing
cabinet, or other location. All money should be kept in the school’s safe.
Activity funds are centralized; therefore, no bank accounts, except those set up by the Finance Office, should be used.
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Financial Audit - SchoolsMoney Handling All 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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Financial Audit - SchoolsFace-to-Face CountWhen money is to be placed in the safe and a face-to-
face count (verification) 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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Financial Audit - SchoolsPurchases
Money 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 or reimbursed through Petty Cash.
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Financial Audit - SchoolsHow to select a Vendor for a Purchase1) Distribution Center
2) Bid or Contract Vendors
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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Financial Audit - SchoolsPurchases 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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Financial Audit - SchoolsPetty CashMoney 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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Financial Audit - SchoolsFund-RaisersFund-Raising Activity Report
Permission to hold fund-raiserAccount for the fund-raiser
School / School Group Fund-RaisersFinancial Secretary - Verify the deposits and
expenditures reported on the Operating Report.
PTO / Booster Club Fund-RaisersTreasurer – Verify Operating Report information.
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Financial Audit - SchoolsFund-Raisers – IRS Prohibitions• Cannot 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.12/05/2014 15
Financial Audit - SchoolsCollections for Specific Individuals & FamiliesService projects or fund-raisers cannot be held at
the school or in the name of the school for individuals or families for death or injuries in tragic accidents, major illnesses, fires, or similar situations.
Family can establish a special account at a bank or credit union.
Donations can be sent by individuals or businesses to the bank or credit union.
Donations are not tax deductible.12/05/2014 16
Financial Audit - SchoolsReconciliationsFinancial 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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Financial Audit - SchoolsSpot Checks by Principal• Suggest that the Principal check the contents of the
school safe periodically to ensure that money is being deposited timely.
• Suggest that the Principal do surprise counts of petty cash periodically.
• 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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WebsitesFinance –
http://inside.cfisd.net/depts/finance/default.htm
Financial Procedures Manual 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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WebsitesFund-Raisers –
http://inside.cfisd.net/policies/fundraiser.htm Fund-Raiser Guidelines Word Version of Fund-Raising Activity Report Approved Fund-Raiser Vendors List
PTOs – http://www.cfisd.net/en/community-involvement/community-engagement/pto-guidelines/
Booster Clubs – http://www.cfisd.net/en/community-involvement/community-engagement/booster-clubs-guidelines/
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Internal Audit Staff Carol Oman, CPA, CIA
Director of Internal [email protected]
Pat StefanInternal Auditor [email protected]
Janett Tapia-GonzalezInternal Auditor [email protected]
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Contacts Audit, Fraud, PTO & Booster Club Questions
Internal Audit
Financial QuestionsKaren SmithAssistant Supt. / Business & Financial [email protected]
Mable IslesDirector of Financial [email protected]
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Contacts Accounts Receivable and Sales Tax
Sharla SheffieldAccounts Receivable [email protected]
Fund-Raisers & Booster ClubsKristi GironDirector of General [email protected]
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HandoutsBudget Reconciliation and DetailFinance WebpagePurchasing WebpageRequirements for Competitive Quotes and BidsFund-Raiser Information WebpageFund-Raising Activity Report ExampleExcerpt from Financial Procedures Manual
Fund-RaisersCommunity Service ProjectsCollections for Needy FamiliesCollections for Specific Individuals and Families
PTO and Booster Club Webpages12/05/2014 25
Questions???
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