Auxiliar xiliary Operations y Operations Auxiliar Auxiliary - - PDF document

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District Le District Level l Ov Over ersight sight

Presen Presented ed By: By: Cris Cris Cab Cable, Elizab e, Elizabeth Whit eth Whitak aker er, , and and Gret Gretch chen en Gilliam Gilliam Ap April 9, ril 9, 20 2013

Auxiliar xiliary Operations y Operations

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• 1. The Bas

The Basics cs -

• Augus

ugust t 20 2012 2.

• 2. Extrac

Extracurricular urricular Activities F ctivities Fees ees Tax x Credits - Credits - Oct October 20 ber 2012 3.

• 3. District-le

District-level Over el Oversight - sight - Toda

• day

Auxiliar Auxiliary Operations Operations The Series: The Series:

Increased Increased risk of loss or risk of loss or misuse due t misuse due to:

 Dec Decentrali lized oper zed operation ations  Cash vs. c Cash vs. chec ecks ks  Bank accounts Bank accounts

Wh Why f y focus on cus on Auxiliar Auxiliary Operations? Operations?

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• Assess c

Assess changes in anges in data data fr from period

• m period to period
• period
• Small v

Small variance riances s are t are to be e be expect pected

Comparisons Comparisons

p.2

Comparisons Comparisons

Prio ior Per erio iod ______ ___________ ________ (m (mon

• nth, ye

year) Current ent Per erio iod ______ ___________ ________ (month, , year ar) $ C Chang ange % C % Chang ange Are C Are Chan anges Re Reason

• nable?

(Ye (Yes/No) Books

• okstore Re

Reve venues Sal Sales Fees Fees Do Donati nations ( (tax ax cred edit) Ath Athlet etic ic P Program R m Revenu nues es Gate ( (tic icket s sales les) Con Concession s sales Fees Fees Bo Bookstor

• re Expens

e Expenses es Non Nonpayroll Pa Payroll Ath Athlet etic Pro Program Expen m Expense ses Non Nonpayroll

• Con

Concession

• ns
• O
• Other

ther Pa Payroll Inv nvent entor

• ry o

y on n Hand Hand (fisc iscal y l year ear end) end) Book

• okstore (F

(FY E Y End) Conces essi sions ( s (FY End) Other a r area: _________ ________ __

p.2

Comparisons Comparisons

Parking Permit Fees ($10 per parking permit)

Ba Bala lanc nce = Fr Fraud Cha Change for Sa for Sales les = NO NOT Re Reas asona

• nable

le

Aug‐Sept 2011 Aug‐Sept 2012 Chang Change % % Chang Change Ar Are Chang Changes s Reas asonab able? (Y (Yes es/No) Books Bookstor

• re R

Revenues Parkin ing S Sales les

$1,210 $40 ($1,170) (97%) No

# o

• f permits

s is issued sued

121 130 9 7% Yes

p.2

Comparisons Comparisons

Detect Change, NOT Accuracy of Account Balances

Pri Prior P r Peri riod

• d

FY 20 FY 2011 11 Curre urrent nt Pe Period

• d

FY 20 FY 2012 $ Chang $ Change % % Chang Change Ar Are Chang Changes s Reas asonab able? (Y (Yes es/No) Books Bookstor

• re R

Revenues Sal Sales

$156,000 $143,500 ($12,500) (8%) Yes

Books Bookstor

• re Expen

Expenses No Nonpayroll

$100,000 $110,000 $10,000 10% Yes

No No

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Reve Revenues

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List List the A the Auxil xiliary Operat Operatio ions ns activ activiti ties es based on based on the method the method used t used to do docume cument s sales ales: Issu Issuing tic ing ticket ets s (e.g., sport event admission, dance admission, etc.)

1. 2.

Issu Issuing re ing rece ceipts ipts without u without using a ing a ca cash re sh regist gister (e.g., fees collected in the school office or library, yearbook sales, etc.)

1. 2.

Using a Using a ca cash re sh regist gister er to

• issu

issue re e rece ceipt ipts (e.g., bookstore sales, concessions, etc.)

1. 2.

Tic Ticket/ R / Receipt Sales eceipt Sales

Sal Sales Re Report # Re Report Dat Date Na Name me o

• f

Tic Ticket Sel Seller/ Re Receipt ipt Issu ssuer Ne Next T Tick cket / / Re Receipt # ipt # to to b be Issued Beginning T nning Ticket / R / Receipt # # Issu ssued Fo For T Ticket Sales Only Only To Total Sal Sales Total # of Tickets Sold Ticket Price 5 2/12/13 John M 4029 3876 153 $3 $459 12 2/20/13 Donna B 1320 1210 n/a n/a $2,200

• Total sales
• Review & signature
• Overages & shortages resolved
• Ticket numbers
• Receipt book

Activity Description dance ticket and yearbook sales

Sales Report #4 (previous report) Varsity Football Game Next Ticket # to be Issued: 3500

Difference = 376 p.4

Cash R Cash Regist egister Sales er Sales

Da Daily Sa ily Sales les Rep Report Re Regist ster To Total Ta Tape Report # Date Cashier Total Sales Tape # Total Sales 57 3/15/13 David $250.00 Z-0651 $298.00 65 3/27/13 David $175.00 Z-0660 $175.00 Activity Description concession sales Select 5 events/dates from the district’s calendar of scheduled events/ business days and document the following information based on a review of the applicable Daily Sales Reports.

• Audit tape
• Mathematical accuracy
• Total sales
• Over rings/cancelled sales
• Daily Cash Collections Summary Report

Difference = $48

p.5

3/26/13 = Z-0658 Z-0659 = missing

Deposits Deposits

Daily Daily Cash Cash Col Collection n Summar Summary Vali alida dated Depos Deposit R Receip ceipt

Report # Date Total Cash Collected Deposit Date Deposit Amount 574 2/18/13 $828.25 3/4/13 $828.25

Select 5 days and document the following information based on review of the applicable days’ Daily Cash Collection Summaries.

• Review total cash collected
• Deposited within 7 days
• Accounting records

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Daily Daily Cash Cash Col Collection n Summar Summary R Repor port #574

Sales Report # Date Account Code Description Total Cash 1094 2/18/13 1750 JV Football Concession Sales $278.25 1096 2/18/13 1790 Tax Credit $550.00

Deposit is 2 weeks after received

= $828.25

Where is sales report # 1095?

Snow cone sales $150 Never deposited!

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Expenditures Expenditures

Check eck # # Dat ate Amoun mount Payee Desc ee Description

3568 1/23/13 $254.28 Staples 3580 2/11/13 $48.57 Jane Smith

Select 5 payments from the District’s auxiliary operations bank account check register and document the following information based on review of the check register.

• Supporting documentation
• Purchase order
• Check register
• 2 authorized signatures
• Approved vender
• Proper procurement

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Cas Cash-handling Re Recordke keeping Au Authorizat

• rization

ion

Separation of Separation of Responsibilities sponsibilities

Receiving Cash and Preparing Checks Recording Transactions in the Accounting Records Approving Documentation and Signing Checks

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Responsibility Assigned Employee Actual Employee Issues change fund and verifies change fund upon return Issues receipt book or tickets, logs numbers, and verifies upon return Collects cash and issues receipt/ticket Counts cash and prepares Daily Sales Report‐ Cash Collected portion Recounts cash, determines total sales, and completes Daily Sales Report Safeguards cash until deposited Prepares Daily Cash Collection Summary Report Prepares and makes deposit daily if significant or at least weekly Compares Sales Reports to Daily Cash Collection Summaries and total cash collected to the validated deposit documentation Records revenue in the accounting records Responsibility Assigned Employee Actual Employee Prepares Purchase Requisition Approves Purchase Requisition Prepares Purchase Order (PO) Approve PO Places order Receives and verifies items Prepares check/ payment (has access to unused checks) 1st check signer(may record expenditure after 2nd signature) 2nd check signer, issues check, and records expenditure

Reve Revenue e Exp Expendit nditur ure e

Same Color= Compatible Different Colors= Not Compatible

Separation of Separation of Responsibilities sponsibilities

p.8

Assigned Employee Actual Employee Issues change fund and verifies change fund upon return

Sam Sam

Issues receipt book or tickets, log numbers, and verifies upon return

Sam Sam

Collects cash and issues receipt/ ticket

Debbie Debbie

Counts cash and prepares Daily Sales Report‐ Cash Collected portion Debbie

Sam

Recounts cash, determines total sales, and completes Daily Sales Report

Sam Sam

Safeguards cash until deposited

Sam Sam

Prepares Daily Cash Collection Summary Report

Sam Sam

Prepares and makes deposit daily if significant or at least weekly

Sam Sam

Compares Sales Reports to Daily Cash Collection Summaries and total cash collected to the validated deposit documentation

Joe Joe

Records revenue in the accounting records

Sam Sam

Separation of Separation of Responsibilities sponsibilities

Rev Revenue

p.8

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Bank Accounts Bank Accounts

Accounts Must Be Authorized by the Governing Board

• 1 AO Fund Bank

Account per Di Distri trict ct

• 1 AO Fund Revolving

volving Bank Account per Cam Campus us

p.9

Bank Accounts Bank Accounts

Select 3 months’ bank reconciliations and review reconciliations and supporting documents to determine:

• Independently reviewed
• Prepared within a reasonable amount of time
• Compared to supporting documentation
• Bank transfers were investigated
• No cash withdrawals (ATM or otherwise)

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Month Month 1 1 Month

• nth 2

2 Month

• nth 3

3 August 2012 October 2012 January 2013

In Invent ntor

• ry

Inventory A Area: Date of

• f las

last in inventory: Circle response below Do Does es t the Di Distri rict ct maint intai ain P Perp rpetual al o

• r P

Perio riodic ic Inv Invent ntory reco cords? Perpetual Periodic If Perpetua ual, l, w was a an inventory c comple lete ted w d within in t the l last 3 3 years? Yes No If If Peri riod

• dic, wa

was a an invent ntory c comple leted w within thin t the l e last y year? Yes No Do Does es t the Di Distri rict’s ’s Inv Invent ntory Li List include: Ite Item/ U / Unit D it Descrip iptio ion Yes No Purchase D se Docu cument N ment Numb mber er Yes No Quanti tity ty o

• n Hand

Yes No Uni Unit Co Cost Yes No Ext Extend nded C Cost Yes No Page To Totals a and G Grand To Total Yes No p.10, 11

In Invent ntor

• ry

Item Item/Uni /Unit Des t Descriptio ion Quanti tity ty

• n H
• n Hand

nd Do Does es t the Des Descri ription and Q Quan anti tity ty on Ha Hand A Agree t e to t the e Inv Invent ntor

• ry Li

List? (Y (Yes/No) Soda cups (Medium) 214 Yes Select 5 items from the District’s stock

• f items for sale and agree them to the

District’s Inventory List. Item Item/Uni /Unit Des t Descriptio ion Quanti tity ty

• n H
• n Hand

nd Uni Unit Cos Cost PO PO # # Ag Agre reed inf information t to st stock on

• n han

hand and and/or P PO (Y (Yes/No) Cans of Nacho Cheese 5 9.15 10456 Yes

Inventory Area: Concessions .

Select 5 items from the District’s Inventory List and agree the following information for each item to the District’s stock of items for sale and/or to related purchase documentation.

Compare to List

Compare to Items on Hand Compare to P.O.

p.10, 11

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Questions Questions

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