Parent and Booster Club Audit Training 2016

Transcription

1 Parent and Booster Club Audit Training 2016

2 Presented By Jan Coker, Director of Internal Audit Services

3 Just a reminder Tyler ISD encourages and appreciates parental support for the District s students. Our goal is to support parental groups with clear guidance. This presentation is a training covering basic techniques on booster club financial selfaudits.

4 We Appreciate You

5 Training Goals Board Policy Requirements District Booster Club Guidelines Audits Information Sheet Annual Audits - Self-Audit Training Select an Audit Committee Audit Objectives Organizing the Audit Treasurer s Preparation for the Audit The Audit

6 Board Policy GE (LOCAL) Relations with Parent Organizations GE (LOCAL) updates were issued September 9, 2015.

7 Board Policy Requirements By September 1, 2016, provide your organization s audit report and audited financial statements to the campus principal. Financial statements should include all assets, liabilities and expenditures. Audit should be completed by an audit committee or at least two members of the club, including one non-officer. Club members performing the audit should not have checkbook signing authority.

8 District Booster Club Guidelines PTA & Booster Club Guidelines Located on the district s website

9 District Booster Club Guidelines At the end of each school year, the club s financial records be audited by an Audit Committee. At least 2 people with no check signing authority. Include on committee at least 1 non-officer The treasurer cannot be on the Audit Committee. Upon audit completion, report to general membership the audit s findings and recommendations. Submit audit report and financials to the campus principal or designee. Submit by September 1. Effective beginning 9/1/2016.

10 District Booster Club Guidelines Continued Sample audit review checklist located on pages of the guidelines. Sample audit report is provided at this training. Sample Financial Report is located on page 13 of the guidelines. Also, by September 1, or as information changes, submit the PTA & Booster Club Information Sheet to your campus principal or designee. Worksheet is located on pages 9-10 of the guidelines.

11 PTA and Booster Club Information Sheet PTA & Booster Club Guidelines, page 9 Provide updated form to principal annually by September 1 and when information changes. Organization s name Related Campus Employer Identification Number Mailing Address Sponsor Liaison Officer s Names and Contact Information

12 Annual Audits Audit Committee Select an audit committee to conduct a yearly audit of the club s financial activities. Question: Who can be on the audit committee? Audit Objectives Verify accuracy of the Treasurer s reports Ensure cash balances are accurate Ensure that established procedures for handling funds have been followed Ensure that all revenues have been appropriately received and recorded Ensure expenditures occurred in a manner consistent with bylaws

13 Organizing the Audit Time saver! Efficient organization of club records under audit. Example breakdown of audit responsibilities for two audit committee members performing the audit. Balance Sheet, Statement of Income and Expenses (Income), Bank Reconciliations, Cash Receipts and Deposits Statement of Income and Expenses (Expenses), Checks, Disbursements, Debit Cards, Fundraisers and State Sales Tax, Federal Taxes

14 Treasurer s Preparation for the Audit Treasurer has prepared a Balance Sheet and Statement of Income and Expenses Bank reconciliations are prepared and provided in consecutive order. Bank statements are provided in consecutive order.

15 Treasurer s Preparation for the Audit All cash receipt forms, bank deposit slips, bank deposit receipts and check register are available and in sequential order. Include listing of all deposits Include an itemized listing of what budget category/account the items were coded to on the Statement of Income and Expenses Bank deposit slips may be viewed online with online banking.

16 Treasurer s Preparation for the Audit Have all cash on hand together that needs to be counted. (For Balance Sheet) Have a listing of inventory i.e. t-shirts (5 small,25 mediums, etc ) Provide the invoices for unpaid invoices (Bills Payable) Have all remaining check stock available Have all debit cards available

17 Treasurer s Preparation for the Audit Have a copy of authorized signers on the club bank account. Have front and back copies of all checks written printed. These can be viewed online also. Have supporting documentation for the checks: invoices, receipts

18 Treasurer s Preparation for the Audit Have budget approved by the membership or meeting minutes in consecutive order. Have documentation for bank withdrawals for change funds and subsequent change fund deposit records identified. Fundraisers Provide invoices for value of items sold, corresponding deposits, and listing of remaining inventory.

19 Treasurer s Preparation for the Prior Year Financials Audit State Sales Tax Reports and Confirmation of Filing with the State Confirmation from the IRS that Federal Taxes Were Filed

20 The Audit

21 Financial Statements Balance Sheet Statement of Income and Expenses

22 ABC Booster Club Balance Sheet As at June 30, 2016 Current Assets Cash $ 3, Cash On Hand T-shirt Inventory Total Assets $ 3, Current Liabilities Bills Payable $ Total Liabilities $ Net worth, June 30, , Surplus (Loss) (250.00) Net worth, June 30, , Total Liabilities and Net Worth $ 3,940.00

23 ABC Booster Club Statement of Income and Expenses For the Year June 30, 2016 Income: Members' Fees $ 2, Fundraising Income Bank Interest Donations Total Income $ 3, Expenses: Fundraising Expense $ Business Expense Events Expense 2, Bank Charges Total Expenses 3, Surplus (Loss) for the Year $ (250.00)

24 Balance Sheet Steps Verify Balance Sheet Cash is the same amount as the final cash amount on the last bank statement for the period under review. Cash on Hand - Count all cash on hand. T-Shirt Inventory Verify reasonableness of inventory value by reviewing the remaining inventory worksheet and amounts paid for that inventory. Bills Payable Verify amounts of unpaid invoices for period audited.

25 Balance Sheet Steps Net Worth, June 30, 2015 Trace to prior year s balance sheet amount for June 30, Surplus (Loss) Does this tie to the surplus (loss) on the Statement of Income and Expense?

26 Bank Reconciliation Steps Verify bank reconciliations are performed within 30 days of the bank statement ending date. Verify beginning and ending bank recon balances to monthly bank statements. Verify outstanding items from prior month cleared in the following month. If not.why?

27 Cash Receipts and Deposits Check addition and subtraction on cash receipts and corresponding deposits. Compare deposit slip amounts to those listed in the bank statement. Verify that income has appropriate backup (cash receipts, cash count form). Total amount collected should match amount deposited in the bank. Verify receipts are allocated to the correct budget/account category on the Statement of Income and Expenses. Members Fees Fundraising Income

28 Cash Receipts and Deposits Verify checks received from parents or vendors are deposited in 1-3 business days. Create a spreadsheet with each deposit listed and verify cash receipts are presented in a timely manner to the person depositing funds. Also, compare cash receipt dates with the date of deposit on the bank statement.

29 Checks Inventory remaining - check stock to confirm all unused checks are present and in sequential order. Is the last check issued and the first check available in the check stock sequential? If not, why? Confirm check stock is retained in a secure place when not in use. Determine if any checks were voided. Were they retained in the records?

30 Checks Who are the authorized signers on the bank account? Former officers should not be signers District employee sponsor should not be a signer

31 Disbursements Review canceled checks to ensure agreement of payee name, endorsement and check amount. Can be printed front/back by the bank for the audit. Reviewed online. Review canceled check to ensure check has two signatures and the signatures are from authorized signers. Verify check sequence Trace checks to supporting documentation Trace disbursements to budget approved by the membership or in meeting minutes Verify expenses are allocated to the correct budget/account category. Fundraising Expense Business Expense Change funds used? Confirm money was withdrawn from bank and later redeposited.

32 Debit Cards Determine if debit cards are being used and who the authorized users are. Ask if the debit cards are being passed around to unauthorized users. Trace supporting documentation (receipts) to bank statements. Trace debit card disbursements to budget approved by the membership or in meeting minutes.

33 Fundraisers and State Sales Tax Evaluate each fundraiser individually. Products Sold and State Sales Tax Was state sales tax collected for taxable items sold? Was applicable sales tax paid to the State of Texas? Were state sales tax reports prepared and filed timely? Look for receipts or confirmation of filing.

34 Federal Taxes Were taxes filed? Look for a confirmation page from the IRS or for the following: E Postcard Form 990 EZ Form 990

35 Audit Report Examples - Handouts Report Example A no exceptions Report Example B exceptions with recommendations Note: Immaterial exceptions could be listed on the report without providing a recommendation. Example: Check #5257 did not have 2 authorized signatures as required by the Booster Club by-laws. The check only contained 1 authorized signature.

36 Sample Financial Reports - Handouts PTA & Booster Club Guidelines Page 13 Balance Sheet Handout Statement of Income and Expense Handout

37 What Does Your Campus Principal Need by September 1, 2016? PTA and Booster Club Information Sheet Audit Report Financial Statements All assets All liabilities All revenue All expenses Time period the audit should cover prior school year

38 Questions???

39 Thank You