Useful Accounting Tips

2 Presented by Andrew Smith Database Business Consultant ESC Region 2 September 25, 2008

3 Disclaimer The information in this presentation is provided as general information only. Consult a CPA or other appropriate advisors prior to making any significant changes in accounting procedures.

4 About me: 9 years providing support for the RSCCC and iTCCS systems My job includes providing software support, procedural and technical guidance Training on specific program modules – Budget – Asset Management – Payroll – Finance – Requisition -PEIMS Business

5 Today’s Presentation: Some Useful Tips for Success in the School Business Office Questions and Comments A look at some great websites

6 TIPS

7 1.Always remember why there is a business office – to support the process of educating the children of the State of Texas. It is possible to get so involved in day to day work activities that we are not conscious of the bigger picture. Remembering that we are supporting a worthy cause can be motivational and inspiring.

8 2.Use a software package designed specifically for the needs of Texas schools. RSCCC is my recommendation for schools with under 500 employees.*

9 3. Develop and use the various “lifelines” that are available. RESC Consultants – Finance Specialist – Regional PEIMS Coordinator – Software Consultants Student Systems Business Systems PEIMS Resource Center for Charter Schools Accounting Consultants Auditors Mentors developed through TASBO or other professional organizations.

10 4.Maintain or develop a good workingknowledge of Fund Accounting. TASBO Certification Course or Conference Take a class in a local university or community college. Resource Center for Charter Schools DVD Training Purchase a book and study it - – Norvelle, Joan W. Introduction to Fund Accounting, 4 th ed. Phoenix: Thoth, – Razek, Joseph; Hosch, Gordon, Ives, Martin. Introduction to Governmental and Not-For-Profit Accounting, 4 th ed. Upper Saddle River, NJ: Prentice-Hall, 2000.

11 Definitions Fund – A self-balancing set of accounts.... a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. (1.1.4 TEA FAR GUIDE)

12 THE TEA Account Code Structure

13 Definitions (cont.) The Accounting Equation: Assets = Liabilities + Fund Balance Ex: 100,000 = 20, ,000 Balance Sheet Accounts – Assets (object 1xxx) -Liabilities (2xxx) – Fund Balance (3xxx) -Clearing (4xxx)

14 Temporary Balance Sheets accounts – aka Revenues and Expenditures – Estimated and Realized Revenues (5XXX) – Appropriations and Expenditures (6XXX) – Transfers-In (7XXX) – Transfers-Out (8XXX) Balance Sheet accounts carryover from one year to the next. Temporary Balance Sheet accounts begin and end in the same fiscal year.

15 Analyze transactions to fully understand their effect on the general ledger.

16 5. Hire qualified personnel, and provide an environment that promotes their growth and professional development. … management must provide for the adequate training of all staff that has significant roles and responsibilities involving business management. If open-enrollment charter school personnel do not have adequate skills and expertise, then management should contract with outside consultants to ensure adherence with generally accepted standards of business management and the effective and efficient use of public funds. (if you are the employer)

17 5(a). If you are employed by an organization that provides an opportunity for professional growth and development, then take full advantage of that situation. Attend relevant trainings, learn, use and share the knowledge that you gain. (if you are the employee)

18 6. Read the following documents: The TEA Financial Accounting Resource Guide (FASRG of FAR Guide) The TEA Charter School Supplement The TEA Charter School Chart of Accounts These documents can be viewed and downloaded directly from the TEA website.

19 7. Become an expert at using your financial accounting software. Read available software manuals and help screens as needed. Attend all relevant training provided by your software provider. Have your software consultant conduct onsite visits to conduct specialized training.

20 8. Develop skills with software such as MS Excel, Word and Access, etc. Check with your region’s ESC, to see if they offer training for common desktop applications. ESC 2 Instructional Technology provides training in MS Excel, Word, Access, Front Page, Dreamweaver, Photoshop, and other applications. Customized training can be developed and delivered.

21 9. Reconcile all bank accounts promptly. Bank statement information is usually available online prior to it’s arrival in the mail – so don’t hesitate to start reconciling at the earliest possible time. A record of past bank reconciliations is the first thing that many auditors ask for when arriving at a district to conduct an audit.

Develop a detailed business office procedures manual containing specific work instructions for critical processes. Smaller schools may only have one or two employees performing all business office functions. In the event of the absence of key people will the school be able to run payroll and vendor checks? If a software consultant is asked to come in to assist in payroll or finance, will there be detailed work instructions to help assure accuracy?

23 Questions or Comments Questions? Comments? Please contact me at a later time if I can assist you in any way: – Andrew Smith – Database Business Consultant – ESC Region 2 – 209 N. Water St. – Corpus Christi, TX – Ph