Transcript Internal Audit

Presented by:
Carol Oman
Director of Internal Audit
12/05/2014
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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 & Projects
 Reports 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
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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 Course
 Financial Section
 Money Handling Procedures
 Purchasing Procedures
 Fund-Raisers
 Conflict of Interest
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Financial Audit - Schools
Money 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 - Schools
Money 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 - Schools
Money 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 - Schools
Face-to-Face Count
 When money is to be placed in the safe and a face-toface 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 - Schools
Purchases
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 - Schools
How to select a Vendor for a Purchase
1) Distribution Center
2) Bid or Contract Vendors
3) If not in bid or contract, then estimate annual
district purchases of type of item.
a)
b)
c)
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Less than $5,000 – No Quotes
$5,000 to less than $25,000 – Written Quotes
$25,000 or more – Competitive Bids / Proposals by Purchasing Dept.
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Financial Audit - Schools
Purchases
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Bid or Contract
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Use the bid or contract price.
Document bid or contract # on PO.
Quotes - $5,000 or more and less than $25,000
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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 - Schools
Petty Cash
 Money 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 - Schools
Fund-Raisers
 Fund-Raising Activity Report
 Permission to hold fund-raiser
 Account for the fund-raiser
 School / School Group Fund-Raisers
 Financial Secretary - Verify the deposits and
expenditures reported on the Operating Report.
 PTO / Booster Club Fund-Raisers
 Treasurer – Verify Operating Report information.
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Financial Audit - Schools
Fund-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.
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Cannot credit an individual based on revenues raised to offset
that individual’s expenses.
Amount raised must benefit a campus / organization as a
whole.
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Financial Audit - Schools
Collections for Specific Individuals & Families
 Service 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.
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Financial Audit - Schools
Reconciliations
 Financial 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 - Schools
Spot 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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Websites
 Finance –
http://inside.cfisd.net/depts/finance/default.htm
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Financial Procedures Manual
Sales Tax Tips
 Purchasing –
http://inside.cfisd.net/depts/purchasing/purchasing.htm
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Requirements for Competitive Quotes and Bids
Bid and Contract Awards
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Websites
 Fund-Raisers – http://inside.cfisd.net/policies/fundraiser.htm
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Fund-Raiser Guidelines
Word Version of Fund-Raising Activity Report
Approved Fund-Raiser Vendors List
 PTOs – http://www.cfisd.net/en/communityinvolvement/community-engagement/pto-guidelines/
 Booster Clubs – http://www.cfisd.net/en/communityinvolvement/community-engagement/booster-clubs-guidelines/
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Internal Audit Staff

Carol Oman, CPA, CIA
Director of Internal Audit
281-897-4111
[email protected]

Pat Stefan
Internal Auditor III
281-517-6537
[email protected]
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Janett Tapia-Gonzalez
Internal Auditor II
281-517-2941
[email protected]
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Contacts
 Audit, Fraud, PTO & Booster Club Questions
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Internal Audit
 Financial Questions
Karen Smith
Assistant Supt. / Business & Financial Services
281-897-4020
[email protected]
Mable Isles
Director of Financial Services
281-897-4067
[email protected]
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Contacts
 Accounts Receivable and Sales Tax
Sharla Sheffield
Accounts Receivable Specialist
281-897-4106
[email protected]
 Fund-Raisers & Booster Clubs
Kristi Giron
Director of General Administration
281-517-6367
[email protected]
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Contacts
 PTOs
Leslie Francis
Director of Marketing & Business Relations
281-894-3951
[email protected]
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Handouts
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Budget Reconciliation and Detail
Finance Webpage
Purchasing Webpage
Requirements for Competitive Quotes and Bids
Fund-Raiser Information Webpage
Fund-Raising Activity Report Example
Excerpt from Financial Procedures Manual
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Fund-Raisers
Community Service Projects
Collections for Needy Families
Collections for Specific Individuals and Families
 PTO and Booster Club Webpages
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Questions???
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