Financial Management Best Practices for County, Area, or District Operations

1. Financial Management Best Practices for County, Area, or District Operations

2. Objectives This lesson will help you learn best practices for financial management and apply them to the areas of: • Ethical Handling of Funds • Collecting Funds • Making Purchases • Monitoring Financial Activity

3. Core Principles • Ethics are rules of conduct. • Ethics principles are guidelines that help individuals know what is expected from those handling funds and what is and what is not acceptable. • Ethics are based on the values of the organization. Lesson 1

4. Core Principles • Principles should be: • simple, understandable, concise and active. • communicated to everyone who handles or manages funds for the county. • reviewed periodically to identify any adjustments that are needed. • Using ethical standards could result in better community relationships as well as in a higher trust level among those in the organization. Lesson 1

5. Collecting Funds - Sources • Training Class Fees • Newsletter Subscriptions and Publications • Diagnostic Services: Plants, Soil and Water Testing • Fund Raising • Food and Snacks • T-Shirt Sales • Other Items Lesson 2

6. Collecting Funds- Receipts • Cash Receipt Form • Pre-Numbered • Date of Payment • Payee • Amount • Method of Payment • Program (Purpose) • Cashier’s Name Lesson 2

7. Collecting Funds - Safeguarding • Designate Custodian (different than the person who collected funds) • Make Timely Deposits • Administrative Verification Lesson 2

8. Collecting Funds Common Audit Weaknesses • Not depositing funds intact • Paying expenses out of collections before the funds are deposited • Mixing change funds with revenue • No designated custodian • Not depositing funds timely • Deposits not independently verified ◦ Cash receipts not pre-numbered ◦ Cash receipts not used in numerical order ◦ No supporting records necessary to facilitate verification Lesson 2

9. Making Purchases – Invoice Approval • Received in good condition • Billed to appropriate unit • Original invoice • Fair price • Math is correct • Signature of employee • Pre-approval (if required) • Tax exempt Lesson 3

10. Making Purchases - Checks • Voucher • Invoice or receipt • Administrative approval • Proper # of signatures • Do not pre-sign checks • No food or alcohol • Not made out to “cash” Lesson 3

11. Making Purchases – Procurement Card • No food or alcohol • Only card-holder or card-holder approval • Submit receipts in timely fashion Lesson 3

12. Making Purchases - Travel Advances • To employees or pay registration, airline tickets, etc. directly • Approval of administrator • Employee submits receipts within a few days after returning • Administrater verifies advances in a timely manner Lesson 3

13. Making Purchases - Common Audit Weaknesses • Pre-sign checks • Making checks payable to cash • Not independently monitoring expenditures • Not saving expenditure documentation Lesson 3

14. Reconciling • Use standard computer accounting program • Administrator compares bank statements with computer printout - monthly Lesson 4

15. Donations and Gifts • Types: • In-kind • Cash • restricted or unrestricted? • Reporting: • In-kind • Cash • What are the benefits of reporting? Lesson 5

16. Audits • What exactly is an audit? • What will an auditor be evaluating? • Record of audit filed • What are some benefits to using an internal audit committee? Lesson 6

17. What to do if you suspect…… • DO NOT confront the suspected perpetrator • DO NOT investigate the case yourself • Work within your management chain of command, • Contact your supervisor