SCHOOL INTERNAL ACCOUNTS TRAINING. Presented by Yvonne Clayborne, Partner

Transcription

1 SCHOOL INTERNAL ACCOUNTS TRAINING Presented by Yvonne Clayborne, Partner 1

2 Today s Presentation Review various phases of this year s audit Review common audit findings noted Preparing for next year s audit Opportunity for Q&As and to provide your feedback 2

3 Internal Accounts Policies & Procedures Florida Dept of Education 2018 Red Book Chapter 8 Internal Accounts / SBAA Principal s Manual for Internal Accounts Checklists Sample forms finance/bookkeepersecretary-resources 3

4 Developing our Audit Program FDoE Red Book District Policy Risk Assessment 4

5 Ensuring Compliance District Policy FDoE Red Book Special Circumstances 5

6 Audit Approach Audits were completed in July through August Open items still coming in through October Schools asked to complete the Internal Control and Fraud Questionnaire in advance Information Request List (School Want List) posted to Smart Sheet School audit schedule posted to Smart Sheet Auditors on-site at schools for audits 6

7 Audit Sampling Sampling - selection of less than 100% of the population for testing Sampling is used when it is not practical to test all items Evaluating exceptions noted during testing Obtain understanding of nature and cause of exception Due to number of samples at each school, each exception is noted on report to District 7

8 Breakdown of Audit Findings 2018 Audits PERCENTAGE OF SCHOOLS BY NUMBER OF FINDINGS 5 or more findings 28% No findings 3% 1 finding 18% NUMBER OF FINDINGS NUMBER OF SCHOOLS None 1 3% % % 4 findings 10% 2 findings 20% % % % 3 findings 21% 5 or more 11 28% Total % 8

9 Changes in Findings Changes in # of Findings From Prior Year Audits 26% 23% 51% Increase Decrease Constant Decrease in findings Constant number of findings Increase in findings 10 schools 9 schools 20 schools 9

10 Average Findings per School Type 2017 Audits 2018 Audits Elementary Schools Middle & K-8 Schools High Schools Other (Special Centers)

11 Common Audit Findings Top 5 Incomplete or missing student receipts or other documentation to support monies collected form (38 occurrences) Fundraiser financial form missing or incomplete (22 occurrences) Check requests completed/approved after goods are purchased (16 occurrences) 11

12 Common Audit Findings Top 5 Ticket sales report not completed and/or no ticket inventory log (13 occurrences) Monies collected not turned in to bookkeeper/secretary daily (12 occurrences) 12

13 Report of Monies Collected Forms Use of a MCF is required by the Red Book and by District policy Must be completed by the teacher or sponsor Should not be prepared by the bookkeeper/secretary Must be turned in no later than the next business day after the funds were collected Minimum required information Beginning & ending receipt numbers Total cash amount & detail of individual checks 13

14 Report of Monies Collected Forms Teacher/sponsor must wait for the bookkeeper / secretary to count the monies (verify the MCF) in their presence Lock box alternative allowed by District Teachers/sponsors should retain their copy of the MCF Student receipt books should be turned back in to the bookkeeper/secretary to be available for audit Student receipt books must remain intact 14

15 Report of Monies Collected Forms Class roster or log can be used in lieu of receipts if individual receipts are less than $5.00 Individual student receipts not needed if MCF is supported by an inventory or ticket sales report Other situations Concessions Car washes Book fairs 15

16 Check Requests SLCSD uses check requests in lieu of purchase order to provide for internal control over purchases The check request is required to be approved by the principal before the purchase is made Purchases that require obtaining quotes or bids $8,001 to $49,999 requires 3 quotes $50,000 or more requires competitive bid through Purchasing 16

17 Other Comments Inventory What is inventory? Requirements for inventory & sales report Fundraiser financial form (reconciliation) Ticket inventory reports & ticket sales Donations Receipt of a donation of $250 or more requires contemporaneous written acknowledgment Donated fixed assets must complete a Fixed Asset Acquisition form 17

18 Checklist for Monthly Internal Accounts There are now four reports included in the monthly report package: Bank statement Bank reconciliation report Principal s report Sponsor s report** ** New 18

19 Sales Tax Sales tax exemption can only be used for items purchased that have an educational purpose for the benefit of the school, teachers and/or students Pay at the point of sale (to the vendor) or collect tax & send payment to the District office to be paid to the Dept of Revenue 19

20 Sales Tax Exemptions yearbooks & other publications, certain grocery items, admission charges to school-sponsored events, classroom supplies, textbooks, workbooks, uniforms & instruments that will be returned to the school (i.e., rentals) Taxable fundraising activities, items purchase for resale, concession items, school store sales, uniform & shirt sales 20

21 Sales Tax Fundraising events pay sales tax to the vendor, collect tax at point of sale, or report & pay use tax Popcorn sales When in doubt, ask Make the determination at the time the fundraising activity request is being approved, not after the activity is completed 21

22 Other High Risk Areas Inventory reports Monthly reports not reviewed / approved timely Missing or incomplete support for disbursements Fund transfer proof sheet missing or not supported 22

23 Closing Comments We acknowledge that many schools were working with new bookkeepers / secretaries. If you have a question during the year, contact the District Office or other school bookkeepers/secretaries (depending on the question). The auditors cannot make the decision to waive policies. If the District is making an exception, get it in writing & retain for audit. 23

24 Closing Comments Audits of the Internal Accounts are required by Florida Administrative Code 6A These audits are not assessments of the bookkeepers job performance. The principals are ultimately responsible for internal accounts. Principals and bookkeepers working together can help reduce audit findings. 24

25 Closing Comments Thank you for your cooperation during this year s audits. Questions? 25

26 Yvonne Clayborne, Partner Melbourne, Florida