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

2. 240 N. Crockett, San Benito, TX 78586
Contact Information
Jessica Montalvo – Internal Auditor
(956)
Bertha Esparza – Activity Fund Bookkeeper
(956)
240 N. Crockett, San Benito, TX 78586

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

4. 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 $ 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,

5. 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,

6. 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,

7. 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

8. 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

9. 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

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

11. 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

12. 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

13. 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.

14. 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

15. 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

16. Expenditures: Voucher Request Form

17. 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.

18. 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.

19. 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

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

21. References Board Policy Activity Fund Manual, 2017-2018 Forms
Activity Fund Manual,
Forms

22. Questions or Comments?