Activity Fund - Update August 16, 2017 PRESENTERs: Jessica Montalvo, CPA, Internal Auditor, & Bertha Esparza, Accounting Specialist

240 N. Crockett, San Benito, TX 78586 Contact Information Jessica Montalvo – Internal Auditor (956) 361-6176 jmontalvo@sbcisd.net Bertha Esparza – Activity Fund Bookkeeper (956) 361-6172 besparza@sbcisd.net 240 N. Crockett, San Benito, TX 78586

Internal Audit Observations Daily Deposits Cash Transactions Voucher Request Form Bypass Vendor Late Payments Club Statements Commingling of PTO Funds

Internal Audit Observation: Daily Deposits Issue: Deposits are not being made daily. 4.1 Deposits, “Deposits shall be made to the Bookkeeper or other designated employee on a daily basis, unless there is less than $100.00 to be deposited; however, all money received should be deposited at least once a week, regardless of the amount.” Source: San Benito CISD Activity Fund Manual, 2017-2018

Internal Audit Observation: Cash Transactions Issue: Vendor invoices paid with cash. 2.1 Bank Accounts, “Monies receives will be deposited…and disbursements will be made by check…No transactions should be made from cash.” 6.1 Expenditures, “Expenditures shall be processed through the Business Office and paid by check from the Activity Fund checking account. Cash transactions are strictly prohibited.” 6.2 Voucher Request Form, “Voucher Request Forms are the means by which disbursements are made.” Source: San Benito CISD Activity Fund Manual, 2017-2018

Internal Audit Observation: Voucher Request Form Bypass Issue: Staff are ordering goods/services before completing Voucher Request Form. 6.1 Expenditures, “Persons making unauthorized purchases shall assume full responsibility for all debt.” 6.2 Voucher Request Form, “Before a check may be written from Activity Funds, it must be authorized in writing using the Voucher Request Form prior to any order/purchase.” Source: San Benito CISD Activity Fund Manual, 2017-2018

Internal Audit Observation: Vendor Late Payments Issue: Vendors are being paid after 30 days. State law requires the District to pay within 30 days of receipt of goods/services or final invoice whichever is later. Source: Prompt Payment Act

Internal Audit Observation: Club Statements Issue: Sponsors are not receiving their club statements. 1.3 Activity Fund Bookkeepers, “Reporting club statements to sponsors on a monthly basis.” TxEIS Login >> Finance >> Inquiry >> General Ledger Inquiry >> complete fund, sub-object & organization code Source: San Benito CISD Activity Fund Manual 2017-2018

Internal Audit Observation: Commingling of PTO/Booster Funds Issue: PTO/Booster funds found on Campus. 2.1 Bank Accounts, “Transactions controlled by outside organizations such as the PTA/PTO or booster clubs, must be handled through these groups' own bank account.” Source: San Benito CISD Activity Fund Manual 2017-2018

Business Office Observations Deposit Slips Lacking Triplicates Incomplete Voucher Request Forms Contracts – Timely Payments Sunshine Accounts

Procedures for Deposits Teachers, librarians, club sponsors must deposit with bookkeeper weekly or when amount reaches $100 All money must be secure overnight in the campus safe Sponsor Prepares Student Activity Fund - Detailed Deposit Slip, in triplicate An original (white) Business Office First copy (yellow)  Bookkeeper Second copy (pink)  Club Sponsor Submits to Bookkeeper Bookkeeper verifies amount

Procedures for Deposits -continued- Bookkeeper Prepares Student Activity Fund - Detailed Deposit Slip RECAP, in triplicate An original (white)Sent to Business Office First copy (yellow)  Kept by bookkeeper Second copy (pink)  Kept by bookkeeper Prepares Bank Deposit Slip, in triplicate An original (white)Sent to bank First copy (yellow) Sent to bank & returned to Business Office Places deposit in Tamper Proof Bag Schedule SBCISD PD for deposit pick-up Submits completed Student Activity Fund - Detailed Deposit Slip RECAP to the Business Office for recording in TxEIS

Procedures for Deposits -continued- Business Office Records deposit in TxEIS Must be in Business Office no later than 3:00PM for processing. After 3pm will be processed the next business day The original copy of deposit is retained by the bank. The duplicate copy is validated and returned to the Business Office. Business Office will post to TxEIS using the bank validated deposit slip. The sum of the amounts of the supporting cash receipts must agree with the amount of the deposit slip.

Expenditures Processed through the Business Office Paid by check from the activity fund bank account Sufficient funds need to be available in the appropriate activity account Principal approves all voucher requests

Expenditures - continued - Purpose of the form Provide authorization of the expenditure Document the purpose of the expenditure Identify the account to be charged Verify adequate funds exist to cover the check

Expenditures: Voucher Request Form

Expenditures: Voucher Request Form Voucher Request Form Procedures Club Sponsor must complete, to include all required signatures & account number Fund (461 or 865), Organization code (Campus #), & Sub- object code (Club account) Use qualified vendors Original quotes/invoices/receipts must accompany the form the Business Office Checks are processed every Tuesday and Thursday Forms should not be pre-signed.

Expenditures: Payments to Non-Employees for Contracted Services For employment of non-district personnel as a consultant/instructor the Non-District Consultant Contract form must be completed prior to the services being rendered. The form should be attached to the Voucher Request Form and New Vendor Listing Form Vendor/Consultant needs to complete the Internal Revenue Service W-9 Request for Taxpayer identification Number and Certification and submit to campus Bookkeeper. Bookkeeper should attach W-9 to the Voucher Request Form.

Business Office Observation Sunshine/Courtesy Clubs All Sunshine/Courtesy Clubs should be under fund 865 Transfers will be made to properly classify Transfers will be completed by August 31, 2017

Compliance to policies & procedures Internal Audit When we audit, we look for: Compliance to policies & procedures

References Board Policy Activity Fund Manual, 2017-2018 Forms http://pol.tasb.org/Home/Index/260 Activity Fund Manual, 2017-2018 Forms http://www.sbcisd.net/2014/04/sbcisd-forms-2/

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