Taking time now to detect issues related to select leading indicators will save you a lot of time at the end of the instructional year and fiscal year. Accordingly, this is the time of year to visit campuses and departments to identify various financial management issues could readily escalate. At the very least, you should make it a priority to visit campuses and departments where there has been turnover in clerical staff, principals and supervisors assigned to various financial-management related functions.
Visits on campuses and in departments to review leading indicators connected with select key controls may include:
- Verifying appropriate campus and departmental staff have a copy of and are accessing the relevant business procedure manual(s), in addition to the activity fund or campus sponsor manual(s);
- Verifying campus and departmental reports of personnel assignments to central administration are updated for the new instructional and fiscal year to support accurate stipend and overtime calculations;
- Reviewing a sample of select transactions to verify adherence with the school district’s established standards for procedures, policies and process workflows, in addition to adequate segregation of duties;
- Verifying supporting documentation is being maintained for all transactions, in addition to records that support payroll for hourly employees;
- Verifying principals and supervisors have not delegated their approval responsibilities for records and reports related to payroll or various fiscal transactions;
- Requesting and reviewing copies of the completed and signed monthly reconciliations for all locally maintained checking accounts;
- Reviewing local supervisors’ and managers’ approval of and monitoring of all credit card and p-card transactions;
- Verifying advance approval in writing from the principal and central business office before any new fundraisers are started;
- Verifying monthly and final financial reports are being provided to campus and departmental staff responsible for oversight of each fund raising or revenue generating activity;
- Verifying consistent practices are being followed in recording ALL exchanges of money on either a tabulation sheet and receipt book;
- Verifying use of only authorized receipt books with pre-numbered receipts;
- Verifying consistent cash handling and financial management practices by ALL campus and departmental staff across the districts;
- Verifying nightly or prompt deposits by someone separate from the activity fund accountant or bookkeeper;
- Verifying separation of duties between receiving and depositing all proceeds; and
- Verifying principal or departmental supervisors have reviewed, initialed and dated all financial and activity fund reports and reconciliations.
It’s also recommended that central office staff or internal auditors randomly visit campuses and departments through the end of the instructional and fiscal year to test corrective actions, as needed, and ongoing adherence with established procedures and processes. Invest time now to review leading indicators to save a lot of time later.