1. Jack H. Jenkins, CPA, P.C.

2. Organization of board and employees – Assigned responsibilities Procedures for accounting functions – Recording and reporting requirements Policies – Travel reimbursement policy Mileage reimbursement rate Restrictions (budgets) – Credit card policy Authorized user Purpose of credit card Limits of single purchases – Any policies more restrictive than statute Activity fund purchase orders Additional approval/quotes for major purchases

3. Superintendent Treasurer Encumbrance Clerk Activity Fund Custodians Activity Fund Sponsors Payroll Clerk Federal Programs Mgr. Special Education Director Child Nutrition Director Child Nutrition Custodian Business Manager

4. Open meeting compliance – Following approved meeting calendar – Special meeting approval – Complete documentation of meeting minutes Annual approval of management positions – see Organization of Management Events affecting the financial statements – Approval of encumbrances – Approval of major transactions Sale of bonds Construction – Public Competitive Bidding Act (61 O.S. § 103)(61 O.S. § 103) – Approval of Activity Funds “The board of education, at the beginning of each fiscal year and as needed during each fiscal year, shall approve all school activity fund subaccounts” (70 O.S. § 5-129)(70 O.S. § 5-129)

5. Reconciliation to bank statements – Document any differences Verify Certificates of Deposit Review FDIC coveragesFDIC – Currently $250,000 for Demand accounts (grouped) Time and savings (grouped) Per custodian – Discuss with banker for additional coverage

6. – Treasurer Confirm County remittances – Distinguish current ad valorem tax from prior year’s tax » Will not be received until new tax rolls are in place – Flood Control and other Federal revenue Confirm OSDE payment notices with OCAS codes Confirm Federal payments with screenshots, email correspondence, etc. – Activity Fund Custodian Collections are coded to appropriate subaccount (see Approval of Activity Funds) Timely deposits (70 O.S. § 5-129)(70 O.S. § 5-129) – $100+ required deposit within business day – At least one deposit weekly

7. – Encumbrance Clerk System for making payments (70 O.S. § 5-135)(70 O.S. § 5-135) See Purchasing Procedure – Does not apply to Sinking Fund or Activity Fund OCAS codes – Focus on object code accuracy – Activity Fund custodian Adequate supporting documentation – Payment request from sponsor – Itemized invoice with signed as received – Support references check number cross-reference to register – Any policies that are more restrictive than statute (e.g. purchase orders) Countersignature on payments required

8. Requisition Purchase Order Order From Vendor Verify Delivery Pay Invoice

9. I.Thou shalt enter a purchase order prior to ordering goods or services, including the proper OCAS code that best describes what is being purchased. II.Thou shalt sign the actual purchase order document to approve the order and verify there is a sufficient amount of appropriations. III.Thou shalt request bids or quotes, if competitive bidding act or procurement and/or purchasing policies require this, for what is being purchased and request a non-kickback affidavit, if contract, product or service might exceed $25,000. IV.Thou shalt have approval at regularly scheduled board meetings of all purchase orders and specified by number in the official minutes. V.Thou shalt obtain a W9 from an individual for any contract labor that is paid from a purchase order.

10. VI.Thou shalt pay no sales taxes directly to a company relating to the purchase of a product. VII.Thou shalt sign or initial the invoice and/or packing slip to verify the goods or services have been received. VIII.Thou shalt attach adequate supporting documentation for the amount paid. IX.Thou shalt pay for no goods or services that were ordered or committed from another fiscal year. X.Thou shalt not pay for any employee compensation through a purchase order not generated from the school’s payroll software.

11. – Payroll Clerk Instruments authorizing clerk to pay employee – Employee Contract » Approved by Board, management and employee – Time sheet with an adopted pay scale or contract stating rate » Time sheet signed by employee and supervisor Retirement – Document participants and employees opting out – Matching Transaction – Board approved direct deposit procedures – Signature sheets to indicate paycheck received by employee (if board policy required)

12. – Insurance proof of coverage for each Property Insurance Educators’ Legal Liability (ELL) Fleet Insurance Workers’ Compensation – Surety Bonds Superintendent/Financial Officer – “…not less than One Hundred Thousand Dollars…” (70 O.S. § 5-116a)(70 O.S. § 5-116a) – Financial Officer as defined by Board of Education Treasurer – “…in an amount which it is estimated by the board of education the treasurer will have on hand at any one time during the current year…” (70 O.S. § 5-115)(70 O.S. § 5-115) Encumbrance Clerk/Minute Clerk – …not less than One Thousand Dollars…” (70 O.S. § 5-119)(70 O.S. § 5-119) Activity Fund custodians – “…not less than One Thousand Dollars…” (70 O.S. § 5-129)(70 O.S. § 5-129)

13. – Bond issues Attorney General opinion – Includes official payment terms Payments made from Sinking Fund – Payment typically wired by Treasurer – Municipal Lease/Purchase agreements Agreement document – Terms of agreement » Annual Board (re)approval » Date of agreement » Payment amount » Interest rate » First and final payment » Equipment description

14. – Copies of budgets Official final amended version – Copies of claims Claims resulting in reimbursement – Schedule of Expenditures of Federal Awards (SEFA)

15. – Fund Balance Penalty – Administrative Costs – Maintenance of Effort – Reconciliation of Federal Revenue to Expenditures

16. Jack H. Jenkins, CPA, P.C.

17. – Auditing for over 60 Oklahoma Schools – Consulting for over 20 Oklahoma Schools Training Budgeting Treasurer Purchasing Payroll Performance Reviews for Office of Educational Quality and Accountability Jack H. Jenkins, CPA, P.C. jhjcpa@jackhjenkinscpa.com 918.366.4440