1. Session 38 Tuesday, May 24, 2011

2.  Bob Casey  Extension Auditor  Kansas State University  Jeff Bassford  Business Officer  University of Nebraska

5.  There is no “magic bullet” ◦ Every situation is unique  Development of the best system for a specific situation involves: ◦ Evaluating the environmental factors ◦ Determining the level of risk tolerance

6.  Extension system structure  Sources of revenue  Responsibility for oversight  Level of financial autonomy  Governmental legislation  Ownership/control of resources  Financial reporting expectations  Others…..

7.  Kansas State Oversight Model ◦ Monthly review of Financial Statement and supporting documents. ◦ Independent Annual Audit. ◦ Financial Operation Support.

8.  County Extension program revenue of over $1M annually  Accounted for in a historical structure that generated questions during the annual audit  To claim or disclaim ownership responsibility, that was the question…..

9.  Are your county extension offices separate legal entities?  Do they have taxing authority?  Who is responsible for managing the daily operations?  Do they have local checking accounts to receive cash and pay bills?  Does state law govern the ownership and management of these funds?  Who establishes procedures/reviews transactions in those accounts?  Who is viewed as the “owner of those funds?  Is the financial activity reflected in your institution’s financial statements?

10. 12345 No Inst. Yes NoMabeNoYes Inst. ????Inst. NoYes 6789 NoYes Cnty Inst. Yes Some Yes No Inst. CntyBoth Cnty YesNo

11.  County extension legal entity status appears to drive fund ownership recognition  Fund ownership drives level of involvement and oversight necessary by institution to manage risk  Level of involvement and necessary oversight will help define the system and structure that needs be developed

13.  Bob Casey  Extension Auditor  Kansas State University  rcasey@ksu.edu rcasey@ksu.edu  785-532-7170  Jeff Bassford  Business Officer  University of Nebraska  jbassford2@unl.edu jbassford2@unl.edu  402-472-1426