January 2019 Spotlight on Finance
Over the next few months, we will look at each of the findings included in the State Audit and share what we have done to address their recommended control procedures in a series of updates called Spotlight on Finance. Many of these changes actually took place prior to the audit being released and others were already on our list of planned tasks to complete.
Segregation of Duties
- Director of Business Services has been meeting with building secretaries and others involved in cash handling to review current procedures. After review, the process will be adjusted and new procedures will be put into place ensuring that there are proper internal controls.
- Bank reconciliations are performed by the Director of Business Services and reviewed by the CFO.
- ACH and transfer procedures have been updated. CFO performs the transfers/ ACH and Director of Business Services completes the bank recs.
- Positive pay has been implemented on all bank accounts to ensure that no unauthorized checks can be written.
- An approval process for refunds has been created.
- All deposit information is scanned into the accounting system.
- User access in RevTrak has been reviewed and revised to reduce the number of people with access.
- A journal entry approval process has been implemented so that one person may enter a journal entry but another must approve before it is posted.
- Inventory is only recorded within the Nutrition and Child Care funds. Since these are primarily food items, they are routinely only reconciled at year-end on the books, however, Directors track inventory daily or as needed to ensure that proper quantities are on hand. Purchase orders are required when these purchases are made whether they are on a PCard or not.
- Every two years an external company is brought in to perform a comprehensive inventory of fixed assets. This will happen in summer of 2019 and once that inventory is complete, we hope to utilize the financial accounting software to maintain the asset inventory.
- Mileage logs are now being turned into the CFO on a monthly basis. These will eventually be put onto one spreadsheet.
- Segregation of duties and responsibilities have been reviewed and adjusted to enhance internal controls.
- Access in Infinite Visions (financial accounting software) has been adjusted to limit access of each function to only those that need it.
- CFO and/or Director of Business Services reviews and approves each requisition.
- Staff member reviewing PCard statements no longer writes checks or processes payment.
- Checks are reviewed and mailed by a different staff member than the one that writes the check.
- Checks are not mailed until after Board approval with the exception of certain expenditures allowed under board policy such as utilities and those with approved contracts.
- All expenditures either are marked “okay to pay” by a supervisor or are attached to a Purchase order that has been approved and verified by Central Receiving and the building.
- Check register and supporting documentation is reviewed by Director of Business Services.
- All invoices and supporting documents are scanned into the accounting system.
- Plan to start quarterly communication to all staff with reminders on Business Procedures.
- Working on Business Procedures manual which will be sent to all employees as well as uploaded to the district website.
- Timecards are approved by Supervisors.
- Non-teacher coaches are required to submit time sheets.
- Employees have been notified and encouraged to review their timecards each week. A link was sent out and put on iVisions website and mentioned in monthly payroll email.
- Any additional pay is signed off on by Building Administrator or Supervisor. CFO reviews any out of the ordinary requests.
- Controls have been added so that only those that need access to payroll have it.
- Procedures have been revised so that the Payroll Specialist does not enter employees.
- Director of Business Services confirms each month that all withholdings and taxes have been paid and all reports are filed timely.