Finance Procedures. Finance Advisory Council Meeting May 9, 2014

Transcription

1 End-of-Year Finance Procedures Region One ESC Region One ESC Finance Advisory Council Meeting May 9, 2014

2 Getting Started Select a CPA Firm Select a firm as early as possible in the fiscal year Request for Qualifications FASRG: Module 4 - Appendix 1 Considerations in selecting a CPA Firm Cost Expertise, # of staff, # of hours, P/Y Findings and Selection Timeframe Obtain & Follow-up with References Board Policy requiring change every X years

3 Getting Started Select a CPA Firm Read the Engagement Letter carefully Auditor Independence Gone as the days that the external CPA firm can prepare journal entries.. They can t prepare the financials and audit them, too

4 The Client-Prepared List The CPA Firm s List Planning Phase Confirmations Field Work

5 Auditor s List. Client Prepared Documents

6 Auditee s (ISD) List. Audit Things to Do Audit Checklist with Supporting Documents

7 Audit Planning Calendar Develop an Audit Planning Calendar Start with the Board Approval date and work backwards Sample Calendar Planning Field Review Board TEA Work Final Draft Approval Submission

8 Planning Phase

9 Audit Confirmations i Cash & Investment Verifications Bank confirmations All bank accounts, including sweep account, if any All CD accounts Confirmation of depository securities ii Depository Contract Confirmation

10 Audit Confirmations i Determining Risks Confirmation from board members Legal confirmation to each attorney used during year Run a 6211 inquiry to verify attorneys used Equal Employment Opportunity Commission

11 Audit Data File ASCII file Finance system extract as of 8/31 With all final EOY general journal entries Remember that t any additional changes will have to be entered by you in the finance system and by the auditor in their system

12 Preparing for p g Audit Field Work

13 Accounts Payable Determine what is and what isn t an Accounts Payable Were the goods received by 8/31? Was an invoice received by 8/31? What is your accounts payable cut-off (except for material items)?

14 Sample Accounts Payable List

15 Sample Accounts Payable List FUND CK/JV VENDOR ACCOUNT AMOUNT DATE PD 199 CK HOME DEPOT $ /8/2011 CK T. OSBURN $ /15/2011 CK A.GREENESS $ /15/2011 CK SCHOOL CENTER $ /15/2011 CK FT. SAM $ 99, /5/2011 $ 100, CK BEVIX $ /15/ CK DFAS $ 16, /15/2011 CK DFAS $ /15/2011 CK DFAS $ 2, /15/2011 $ 19, JV 1686 CONSOLIDATED EL $ 20, /13/2011 DBR Engineering $ 3, /13/2011 $ 23, Grand Total $ 143,818.02

16 Accounts Receivable Determine what is and what isn t an Accounts Receivable Was is owed to the district as of 8/31? Is the amount collectible? If it s collectible, what is the timeframe?

17 Accounts Receivable The revenue accrual policy should be disclosed in the notes to the financial statements. Example from Lackland ISD Financial Audit Note A. The District considers all revenues reported in the Governmental Funds to be available if the revenues are collected within 60 days after year-end.

18 Accounts Receivable FUND DUE FROM ACCOUNT NO. AMOUNT DATE PAID AMT PAID 199 TEA Settle Up $ 152, /16/2011 $ 152, TEA Aug Accrual $ 430, /25/2011 $ 430, BOA INT $ 4.14 Sep 11 $ 4.14 DUE FROM PARENT $ Sep $ DUE FROM PARENT $ /19/2011 $ INS AUTO DAMAGE $ 1, /10/2011 $ 1, DUE FROM PARENT $ Subtotal $ 584, SYSTEMS DESIGN $ 5, /9/2011 $ 5, TEA Aug Claim X $ 5, Subtotal $ 10, ARRA TTL XIV SFSF $ 135, /20/2011 / $ 135, DODEA $ 176, /27/2011 $ 176, DODEA $ 12, /27/2011 $ 12, NCS PEARSON $ Subtotal $ 189,710.82

19 Activity i Accounts Centralized & Decentralized Activity Accounts must be recorded on the general ledger by year-end end Campus Activity Account (Fund 461) Student Activity Account (Fund 865)

20 Fixed Assets Purchases 66XX Surplus Sales? Category Beginning Balance Ending Balance 9/1/2010 Additions Deletions 8/31/2011 Buildings $ 30,088,275.93, $ 103, $ 30,191,461.93, Equipment $ 838, $ 122, $ 961, Vehicles $ 883, $ 95, $ 978, Subtotal $ 1,721, $ 218, $ - $ 1,940, Total $ 31,809, $ 321, $ - $ 32,131, Const IP $ - $ 440, $ 440, Grand Total $ 31,809, $ 762, $ - $ 32,572,

21 Fund Balances Detail for any budgetary fund balances (3700) Detail for any assigned, committed, or restricted fund balances Provide copy of board resolution(s), if any Copy of Board Minutes

22 Inter-fund Transfers Inter-fund receivables and payables should be in balance PY balances should be cleared out 126X 217X

23 Payroll Calculate and post TRS On-Behalf expenditures to the general ledger Object code 6144 should match revenue code 5831 Calculate and post all accrued wages (earned but not paid) Object code 2161 Reconcile payroll liability accounts such as object codes 215X

24 PEIMS PEIMS Edit Reports Statement of Revenues, Expenditures, and Changes in Fund Balance Mid-year collection for prior fiscal year Verify that the PEIMS report matches the Financial Audit, Schedule C-2 Prior to submission of Mid-Year PEIMS in January

25 Prepaid Expenses Costs applicable to future accounting periods are recorded as deferred (prepaid) expenditures. Object code 141X Example of prepaid p expense: Payment of 1 year of software maintenance (Jan 1 Dec 31) Post 6 months to expense account 6249 Post 6 months to prepaid expense 141X

26 Pre-Paid Items FUND CK#/JV# VENDOR ACCT. # AMOUNT NCS PEARSON $ JV 1599 NMSA $ STARS $ THE CHAMBER $ RCI $ TIMECLOCK $ 1, GENERAL ASP $ SCHOLASTIC $ STARS $ TASC $ STUDY ISLAND $ 8, NAFIS $ 4, CCAT $ RESOURCE FOR E $ ATT $ AMEX $ NEOPOST $ NEOPOST $ NEOPOST $ $ 20,311.82

27 Revenues Reconcile all local, state and federal revenues Object codes 57XX, 58XX, and 59XX to source documents Object codes 231X deferred revenues For example, CNP claim reports should match Fund 240, object code 59XX Hint: The revenue (59XX) and expenditures (6XXX) for grants must match

28 Revenues - State Month Foundation (199) Per Capita Total September 681, , , October 431, , , November 429, , , December 447, , , December - TxVSN January 447, , , February 217, , , March 435, , , April - 29, , May 434, , , June 435, , , July 435, , August Total 4,397, , ,678,771.00

29 Revenues - State Total 4,397, , ,678, Reverse P/Y Receivable - Reverse P/Y Receivable (287,445.84) (287,445.84) Prior Year Revenue 14, , Prior Year Revenue 103, , Due from State (Aug 10) 430, , Due from State per NF SoF 152, , SubTotal 4,811, , ,092, Prior Year State Revenue - - Other Grants: AEP, Rider State Matching, Food Svs 2, TRS On-Behalf - Fund , TRS On-Behalf - F 199 Medicare TRS On-Behalf - Fund , Accelerate Reading/Math 3, Technology Allotment 15, Pre-Kinder Grant 114, HS Allotment - Fund 428 6, Grand Total 4,811, ,848, GL 5,848, Difference 0.00 AP/IB Campus Aw ards F397 -

30 Revenues Federal - CNP Federal Revenue Month Breakfast Lunch Total NSLP Sept $ $ 12, $ 13, Oct $ $ 12, $ 13, Nov $ $ 10, $ 11, Dec $ $ 9, $ 10, Jan $ $ 13, $ 14, Feb $ $ 13, $ 13, March $ $ 12, $ 13, April $ $ 14, $ 15, May $ $ 15, $ 15, June $ $ 1, $ 1, August $ $ 4, $ 5, Total $ 7, $ 120, $ 128, Commodities $ 26, Grand Total $ 154,702.96

31 Revenues Federal -CNP RECAP: Local Revenue 159, Federal 154, State 15, Subtotal 330, Transfer from General Fund 113, Grand Total 444, Post 79XX and 89XX Entry

32 Other Items District and Campus Plans Might be on the district s website Reference material Internal Control Procedures Employee Handbooks Fiscal Manual, if any Organizational Chart

33 Review Financial i Audit Draft Read it carefully.auditors auditors can make mistakes, too The Notes are only as good as the information that we give them.example: District Insurance Contribution C th fi i l t t t t th Compare the financial statements to the prior year for reasonableness

34 Approval & Submission of Audit Report Submit the Audit Report for review and approval by the Board of Trustees Allow plenty of time for their review Obtain the Board signature on the Board Certification Electronically submit the audit data to TEA prior to the deadline 150 th day after end of fiscal year

35 Best Practices

36 Start t the Year Off Update and distribute all policies, procedures, forms, and internal controls Annual training of administrative staff and campus secretaries is recommended

37 Daily Oversight Monitor cash balances & collateral pledged Adhere to procedures document exceptions Seek accounting guidance as needed External CPA may be a great resource! Every expenditure should be perfect because every expenditure is subject to random selection for audit review.

38 Monthly Oversight End-of-Month Procedures How do you eat an elephant? One month at a time! Sample EOM Checklist Sample EOM Procedures

39 Be honest with your Auditor.Tell Them What s New New staff New processes and procedures Pending litigation or other threats IT/Technology Changes Software, Infrastructure, lost data, etc. And, especially if any Fraud or Theft occurred High focus on fraud due to recent events!

40 Questions

41 Presenter Contact Information Rebecca Estrada Executive Director of Finance Lackland ISD 2460 Kenly Ave., Bldg. #8265 Lackland Air Force Base San Antonio, Texas