Questionnaire for Audit Proposals Salado ISD

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3 Questionnaire for Audit Proposals Salado ISD MANAGEMENT 1 Who are the key personnel in financial management and what are their areas of responsibility? Superintendent Prepares budget along with Finance Director & approves final budget presented for adoption. Monitors revenue and expenditure budgets throughout the year. Signs checks for accounts payable and payroll. Finance Director Assists superintendent with budget preparation, monitoring and amendments. Purchasing & accounts payable. Payroll and payroll benefits. Signs checks for accounts payable and payroll jointly with Superintendent. Oversees food service business operations jointly with Child Nutrition Director and files monthly claims. PEIMS Coordinator Responsible for student PEIMS data, attendance. Child Nutrition Director Oversees food service business operations, taking and accounting for student payments, balancing daily totals & making deposits. Salado Intermediate School Principal Oversees afterschool business operations, taking and accounting for student payments, balancing daily totals & making deposits. Activty Specialist Processes other cash receipts in the office and posts cash receipts. 2 Where are these key personnel located and how close in proximity? The Superintendent, Finance Director and Activty Specialist are located at the SISD Administration Building. The PEIMs Coordinator and Intermediate School Prinicipal are located in the office at Salado Intermediate School. The Child Nutrition Director is located in the cafeteria at Salado High School. 3 What is the experience, qualifications and tenure of the current business manager? Started with District November 2016; previous experience as Staff Accountant III at ESC Region 12 ( ) and Staff Accountant at Florence ISD ( ). 4 What financial reports are provided to the Board? Summary revenues & expenditures by fund, function & object group. Check registers. Monthly cash flow and investment report. 5 In general, how active is the board in their financial management role? Very. The financial information is reviewed in each board meeting; trustees will generally ask questions about expenditures, budget, etc. FINANCIAL REPORTING 1 What financial software is used? TxEIS 2 Will the auditor have access to the primary financial software (i.e. ability to have remote access, download trial balances, etc.)? Yes 3 What is the involvement of management in preparation or review of financial statements, including the MD&A? Auditor prepares draft for Finance Director to review & approve. The Superintendent prepares the Major Initiaions and Accomplishment section of the MD&A.

4 4 Who is responsible for preparing GASB 34 statements? Auditor 5 Is the district committed to using the current financial statement No - auditor is free to use other formats format? 6 How many copies of the annual audit report? 12 is sufficient 7 Are there any anticipated problems that will be encountered in the audit? None 8 Are there any significant changes in the number of funds reported, such as grant funds, or other changes in the AFR? No changes in funds. We are changing our fiscal year effective June 30, 2017 and therefore, will need the auditor to prepare additional disclosures and required 12 month statements for TEA although will only have 10 operating months.

5 BUDGETS / JOURNAL ENTRIES 1 Who prepares the annual budgets? Superintendent & Finance Director 2 How often are amendments between functions taken to the Board? Monthly, if needed. 3 What is the process for preparing and approving journal entries (other than routine entries posted from CR, CD & PR)? Finance Director prepares and posts all journal entries. AUDIT SERVICES 1 Why is the district seeking audit proposals? Disatisfaction with current firm over timliness, data feed and PDF submission. 2 Describe the relationship with the prior audit firm. Good. 3 Was there a management letter issued last year? If so, what were No the major items discussed? 4 Has there been any problems in completing prior audits? No 5 How many audit adjustments have been made in prior audits? 14 in 15-16; 16 in What adjustments are typically posted by the audit firm? Property tax receivables and correcting entries for bond refunding. 7 What other adjustments has the audit firm proposed? Coding changes or late entries; these are generally not material amounts. 8 What schedules or other information has the District provided in the past? Bank reconciliations. State funding adjustments & support. Accounts payable & receivable details. Schedule of TRS monthly payments. Schedule of monthly fd svc claims. 9 What months are acceptable for board presentation? No later than October. 10 Does the District anticipate needing a Single Audit? No DOCUMENTATION OF CONTROLS & PROCEDURES 1 What written controls or procedures does the district have in place? Minimal written procedures are in place, but the small size of staff mitigate the need for written procedures. 2 Are there written federal & state grant management procedures that Yes meet EDGAR requirements? 3 Are there any written activity fund procedures in place? Yes; however campus activity accounts have been treated as student activity funds. We are in the process of getting this corrected for the school year. 4 Have there been any misappropriations, irregularities, major noncompliance matters, etc.? No CLIENT FINANCIAL CLOSE & ASSISTANCE 1 Who is responsible for year end close and preparation for the audit? Finance Director 2 Is there assistance from others (ESCs, etc.)? No 3 What is the Auditor's involvement in the TEA filings? Auditor uploads data and pdf; Finance Director finalize. CASH & INVESTMENTS 1 Who is the District's Investment Officer? Finance Director 2 Has the predecessor auditor noted any noncompliance with the PFIA, or is District management aware of any noncompliance? No REVENUES Property Taxes: 1 Who collects property taxes? Bell County Appraisal District

6 2 How are property tax revenues processed? Payments are sent by ACH every few days during high activity & monthly otherwise. Reports are provided by for payments that are used for posting; monthly reports are also received. State Aid: 1 Who prepares the budget for state aid? Finance Director with assistance from ESC Are projections updated periodically during the year? By whom? Yes. 6 times per year. Finance Director updates, with assistance from ESC Who adjusts revenues at the year end to the final TEA Summary of Finance? Fiannce Director with assistance from ESC 12. DISBURSEMENTS, PURCHASING & ACCOUNTS PAYABLE 1 In general, what is the process for purchasing? Budget Manager and Finance Director approval is documented on a PO prepared in TxEIS; the Finance Director Manager verifies account coding. The Accounts Payable specialist verifies the proper documentation and invoice are received before paying and liquidating a PO. Currently the Junior High is still utilizing a paper PO process. 2 To what extent and how are credit cards used? Who has access? Credit cards are used on a limited basis. Cards are kept in the Business Office and issued to staff based on approved PO's. 3 How are accounts payable and cash disbursements processed? Invoices come to the Business Office and are processed for payment by the Accounts Payable Specialist and Activity Specialist. Checks are prepared in the TxEIS system by the Accounts Payable Specialist and Activity Specialist and then a check payments list is generated to be approved by the Finance Director. Upon approval checks are printed and signed electronically by the Superintendent and Finance Director. Activity checks are proofed and mailed by the Accounts Payable Specialist and budget checks are proofed and mailed by the Activity Specialist. 4 Are ACH or online payments authorized? ACH payments are prepared in the same manner as accounts payable is processed. Instead of printing a check, an ACH file is created by the Finance Director after the check payments list has been approved and all paper check checks have been processed. 5 What controls insure accurate coding? The Budget Manager and Finance Director review the account coding in the PO approval process. The Accounts Payable Specialist and Activity Specialist also review when mathcing processing disbursements. The Finance Director also reviews the account coding from the check payments list. Superintendent and Board Members review budget and expenditure reports at least monthly. PAYROLL 1 What is the general nature of payrolls? How frequent? Three payroll cycles, two semi-monthly and one monthly. 2 Approximate number of staff? Admin - 12; teachers - 126; paraprofessionals - 18; fd svc & other auxiliary - 45; bus drivers/maintenance How frequent is extra duty for teachers and exempt positions? What is the process for reporting, authorizing and approving extra duty? Extra Duty for teachers and exempt positions consists of afterschool, tutorials, bus driving, game workers, and administrative duty. Recorded by employee on preprinted form; approved by Supervisor and Finance Director.

7 4 What time keeping system is used for paraprofessional and auxiliary Time Clock Plus. Approved by employee, Supervisor and Finance Director. staff? Who approves? 5 What is the general process for para and auxiliary payroll? Pay for paraprofessional and auxilliary staff is annualized and paid monthly. Time cards are reviewed by Supervisor and Finance Director for overtime or other pay adjustments. 6 What controls are in place to assure accuracy of payroll? Payroll edit report is reviewed by Finance Director. Changes in pay totals are reconciled to prior month payroll by Payroll Specialist and Finance Director. 7 Is there any review and approval of payroll? Finance Director reviews & initials payroll register. 8 What is the process to insure accurate payroll account coding? Finance Director provides Payroll Specialist with staff duties and coding. Account distribution journal is reviewed periodically by both. Payroll budgets are also reviewed by Budget Manager, Finance Director and Superintendent. 9 How often are payroll liability accounts reviewed and reconciled? Reviewed monthly and reconciled at least annually. 10 What is the process for preparing the payroll accrual as of year end? Finance Director runs in TxEIS & reviews for accuracy. FIXED ASSETS 1 Who maintains the fixed asset inventory and depreciation schedule Auditor; Finance Director reviews & approves. for financial reporting? 2 What major building programs are in process or planned? Anticipating a major building program Fall DEBT 1 Are there any new or anticipated debt issues? Anticipating a bond election May FUND BALANCE / EQUITIES 1 Are fund balances reconciled to the prior year AFR? By who? Yes, by Finance Director. 2 Does the District have a current fund balance policy adopted by the Board? No GRANT COMPLIANCE 1 What desk audits or other reviews have been done by TEA or others TDA Child Nutrition Audit and Procurement Review during the past year? 2 Who monitors state spending requirements? Does the District expect Finance Director with assistance from ESC 12. The District is compliant. to be compliant? 3 Who monitors special education MOE? Was the District compliant last year? Does the District expect to be compliant in ? Finance Director with assistance from ESC 13. The District was compliant for and expects to be compliant in Are SCE & Title I expenditures documented in the campus improvement plans? Yes

8 Bank Accounts SALADO ISD FYE 8/31/16 Account Name Depository Bank: # Req'd Authorized Signers Type / Process Who does? Horizon Bank Signatures Reconciliation Who reviews / approves? Miscellaneous Information Notes General Operating 2 Interest & Sinking 2 Workers' Comp Fund 2 Medical Reimbursement Account 2 Activity Fund 1 FFA Activity Fund 1, FFA Teachers Manual Finance Director None Working on consolidating this account into the Activity Fund and subject to same requirements Scholorship 2 Van Bibber Scholorship 2 TexPool 2 Van Bibber Scholorship 2

9 Other Bank Accounts Texas Class Gen Op 1 Electronic Wires Only Finance Director None Texas Class I&S 1 Director Electronic Wires Only Finance Director None Texas Class Tax Clearing 1 Director Electronic Wires Only Finance Director None LoneStar Investment 1 Director Electronic Wires Only Finance Director None How long after the end of the month are reconciliations complete? Generally within two weeks.

10 Salado Independent School District Request for Audit Proposals Evaluation Matrix Rec'd RFP <<DATE REC'D>> <<DATE REC'D>> <<DATE REC'D>> <<DATE REC'D>> <<FIRM NAME>> <<FIRM NAME>> <<FIRM NAME>> <<FIRM NAME>> A. Technical Experience of the firm 1. Auditing experience in Texas Public Schools (0-15) 2. Auditing experience in government entities (0-5) B. Characteristics of staff, including consultants, if applicable 1. Size and Structure of the firm (0-5) 2. Qualifications of personnel assigned to audit team (0-15) 3. General direction and supervision to be exercised over the audit team by the firm's management personnel (0-15) C. Clear understanding of the work to be perfermed: 1. Comprehensiveness of the audit work plan (0-5) 2. Realistic time estimates of each major segment of the work plan, and the estimated number of hours for each staff level including consultants assigned (0-10) D. Estimated cost over five years (0-30): TOTAL POINTS (out of 100) RANKING Estimated cost over five years: