Cash Receipts, ASB and Audit Update

1. Cash Receipts, ASB and Audit Update Secretarial Clerical In-Service August 13, 2009 Presenters: Cindy Coleman 354-7243 Terry Watanabe 354-7226

2. What’s New Starting to gather information to update secondary school cash registers Starting to research the district accepting credit card payments ASB journal entries to be sent to Terry Watanabe for review and posting

3. Annual Audit - Summary NO FINDINGS Management Letter again…. Some audit recommendations

4. Annual Audit – Sites with No Reported Audit Issues Sites audited: North Central High School Rogers High School Shadle Park High School Garry Middle School Glover Middle School Woodridge Elementary School Sites audited as a follow up to previous year’s audit Garry Middle School Shaw Middle School Cooper Elementary School Linwood Elementary School

5. Annual Audit – Management Letter ASB fundraiser intent and reconciliation form was not completed either before or after the fundraiser A portion of the ASB revenue raised, amounting to $1,260 was deposited into the general fund Pledge forms were not always complete or accurate Required District forms for fundraising approval, tracking and reconciling were not complete

6. Annual Audit – Management Letter Recommendation Continue to train faculty and staff on proper internal controls ASB procedures manual is on the district website under Staff, Forms, Budget and Accounting General Remember to schedule an ASB training for faculty and staff at your site. Please contact Terry If you have questions call Terry or Cindy

7. Annual Audit – Exit Comment Recommendations Fundraiser intent forms should be completed in accordance with District policy ASB advisors should read and sign the Acknowledgement of Responsibilities form prior to beginning fundraising activities Concession sales inventory and cash should be monitored and safeguarded to prevent and detect theft or loss Improve controls over inventory adjustments

8. Annual Audit – Exit Comment Recommendations - continued Reconciliations should be prepared at the end of fundraisers Ensure reconciliations are complete, accurate and timely Refunds need to be included on fundraiser reconciliation form Someone independent of collecting, receipting and reconciling GSL cards and stickers should review the year end reconciliation Ensure fundraiser documentation is retained

9. Performance Audits Audit of the 10 Largest School District Travel Audit

10. Performance AuditOverview and Goals: Initiative 900 passed in 2005 election Identification of: Cost Savings Gaps or overlaps Feasibility of pooling IT systems Programs that can be reduced, eliminated or privatized Best practices Analysis and recommendations: Analysis of the role of audited organizations Recommendations for statutory or regulatory changes

11. Performance Audit Conditions by District There were no dollar cost savings attached to SPS’s conditions.

12. Performance AuditSPS Response to Conditions Financial Management and Cost Analysis – Every district in the audit received this finding. In addition to achieving consistent good audit results, SPS routinely considers cost effectiveness, as evidenced by: Transportation having the lowest weighted cost per mile of the 10 largest districts Food Services being held to a self-supporting financial model Efficient and cost saving Print Shop and Warehouse Operations

13. Performance AuditSPS Response to Findings Internal Auditor Function- Nine of the ten districts received this finding recommending a fully independent Internal Audit Function. We believe the district’s risk profile as evidenced by financial and compliance audit results, does not justify the cost of a full-scope independent audit function.

14. Performance AuditBest Practices SPS was commended for using best practices in the following areas: Purchasing card usage rate that ranks as the leader of the 10 districts in this review Procurement costs reduced by $150,000 per year Small inventory of portable classrooms

15. Performance Audit - Travel School Districts Audited: Central Valley Sunnyside Clover Park Tacoma Evergreen - (Clark County) Toppenish Pasco Vancouver Port Angeles Walla Walla Seattle Yakima Spokane

16. Performance Audit – Cost Savings

17. Performance Audit – Policies

18. Performance Audit – Issues Districts could save money by using GSA federal lodging limits and verifying the purpose of additional travel days paid for with public funds (SPS issue) District could save money by holding retreats within district boundaries Certain travel and conference expenditures were questionable when compared to reasonable and necessary business practices Hotel reservation practices did not align with reasonable and necessary business practices

19. Performance Audit – Issues Continued Districts could achieve additional cost savings by purchasing airfare through the State of Washington’s Procurement contract when it is cheaper than using Web-based travel services (applies to all districts)

20. Performance Audit – Commendations No state or federal law mandates room-sharing, but many districts encourage room-sharing, if appropriate, in order to save lodging costs. Although our audit was not designed to note all instances in which room-sharing occurred, we did note instances of room-sharing among instructional and support services employees and commend the following districts for their cost-saving efforts.  Employees in the following districts shared rooms and saved money as listed: Spokane: $13,727 Yakima: $ 4,836 Port Angeles: $ 2,212 Tacoma: $ 685 Pasco $ 533 Toppenish: $ 169 *These amounts were calculated using the GSA base rates. Spokane was the only district in which savings were achieved by district administrators, in addition to instructional and support staff. Two Spokane assistant principals saved the District $1,110 when they shared rooms. These savings represent the difference between what the districts would have paid by booking individual rooms at the GSA per diem rates and the amounts actually paid. We also noted instances of room-sharing by employees that did not result in cost savings but enabled the district to meet GSA limits. Other employees who stayed in individual rooms at the same hotels exceeded GSA rates. Eight employees from the Pasco School District shared rooms and avoided $2,190 in lodging costs they would have incurred had they stayed in single-occupancy rooms. Approximately half of that amount would have been included in the calculation for excess costs.

21. Outcome of Audits Drafting a revised travel policy Drafting a revised food and beverage policy

22. Questions??? Accounting Department Contacts: Cashiers Brenda Beyer 7336 Ann Reinhart 7258 Accounts Payable Vicki Adelquist 7247 Barbara Anderson 7260 Sherri Bangs 7246 Carol Hartl 7202 Accountants Cindy Coleman 7243 Joyce Daley 7311 Bob Hutchinson 7276 Craig Numata 7328 Craig Skillestad 7244 Terry Watanabe 7226