Internal Audit Update 2016-2017 August 4, 2016 PRESENTER: Jessica Montalvo, cpa

Contact Information: Internal Audit Jessica Montalvo – Internal Auditor (956) 632-8442 jessica.montalvo@mcallenisd.net Aissa Herrera – Staff Internal Auditor (956) 632-8442 aissa.herrera@mcallenisd.net Donna Rork – Internal Audit Clerk (956) 632-2804 donna.rork@mcallenisd.net Crockett Administrative Annex, Room E4

Audit Observations Fundraising Procedures Purchasing Department’s Approval Vendor Late Payments Receipts Deposit Daily

Audit Observation: Fundraiser Procedures Issue: Missing and/or incomplete fundraising forms Fundraiser Application Form (AF-2) Prior to the beginning of the fundraiser Completed by Sponsor Approved by Principal Fundraiser Revenue & Expense Form (AF-3) Upon completion of the fundraiser Source: McAllen ISD Activity Fund Manual

Audit Observation: Purchasing Approval Issue: Goods/services are being ordered/rendered prior to a purchase order being created A purchase for goods or services cannot be made using District funds without prior approval from Purchasing Services in the form of an approved Purchase Order form with an approval signature from Purchasing Services. A District employee who purchases or orders any goods or services in the name of the District or who obligates the credit of the District without following the purchasing policies and procedures shall be held personally responsible for payments to the vendors or return of the items. Source: McAllen ISD Purchasing Services Policies and Procedures

Audit Observation: Purchasing Approval - Continued

Audit Observation: Vendor Late Payments Issue: Vendors are being paid after 30 days. State law requires the District to pay with 30 days of receipt of goods or services. Source: McAllen ISD Purchasing Services Policies and Procedures

Audit Observation: Receipting Issue: Lack of pre-numbered, hand-written campus receipts for deposits All monies received shall be acknowledged by immediately preparing a receipt. Pre-numbered campus receipts are the means for recording cash, acknowledging receipt, and substantiating bank deposits. Campus Administration is responsible for all issued and unused receipts. Source: McAllen ISD Activity Fund Manual

Audit Observation: Deposit Daily Issue: Deposits are not being made daily. Monies remitted for deposit may be in the form of cash and/or checks and are tabulated in the Cash Distribution Form AF-1. Deposits must be submitted to the Secretary/ Bookkeeper on a daily basis unless the aggregate amount is less than $10. Deposits less than $10 need to be deposited by Friday at 8:00 AM or until the aggregate amount is greater than $10, whichever comes first. All money received MUST be deposited. Deposit all funds daily Source: McAllen ISD Activity Fund Manual

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