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ARRA Fund Audits – A School District’s Experience

ARRA Fund Audits – A School District’s Experience. Presented by Eduardo Ramos, Asst. Supt. Of Finance/Operations (512) 759-3771X1005 ed.ramos@hutto.txed.net Mary Newcomb, Asst. Business Manager (512) 759-3771X1012 mary.newcomb@hutto.txed.net Hutto I.S.D. Background Info.

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ARRA Fund Audits – A School District’s Experience

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  1. ARRA Fund Audits – A School District’s Experience Presented by Eduardo Ramos, Asst. Supt. Of Finance/Operations (512) 759-3771X1005 ed.ramos@hutto.txed.net Mary Newcomb, Asst. Business Manager (512) 759-3771X1012 mary.newcomb@hutto.txed.net Hutto I.S.D.

  2. Background Info • TEA Division of Financial Audits is conducting district onsite reviews of fiscal controls over federal grants-more specifically ARRA grant funds (Feds) • ARRA Fund Review Threshold: $750,000 • TEA may send you a notice with a very short time frame (1-2 week notice)

  3. Background Info cont. • Focus of Review: Fiscal Controls • Did the school district develop policies and procedures for the effective control of ARRA Funds • Did the school district implement a program that adhered to the fiscal program and other requirements applicable to ARRA Funds. • Large amount of documents requested. Suggestion is to convert what you can electronically and give to auditors in a jump drive as well as hard copies. • No donuts!!

  4. Documentation Requested • District’s Organizational Chart • Accounting Policy and Procedures Manual • HR Policy and Procedures Manual • Chart of Accounts • Working papers used to prepare ARRA budgets and budget amendments. • Amounts on these source documents should agree with amounts on schedules submitted on grant application. • Needs assessments, plans, other source documents that support information submitted on Federal ARRA or Special Ed ARRA grant applications.

  5. Documents Requested cont. • IMPORTANT: A written statement that identifies how the district’s proposed use of ARRA Funds supports the 4 principles of ARRA Funding. • Spend quickly, avert layoffs, create jobs • Improve student achievement through school improvement and reform • Ensure transparency, reporting and accountability-differentiate between ARRA and non-ARRA funds, process to report use of ARRA funds, documentation maintained to support information reported. • Minimize the “funding cliff” by avoiding unsustainable continuing commitments.

  6. Documents Requested cont. • Detailed GL and Payroll Journals • District and Campus Improvement Plans • Completed Audit Questionnaire

  7. Audit Questionnaire • Audit questionnaire questions will look to see if the attached questions are covered in your policies and procedures. IT MUST BE IN WRITING! • 45 Audit Questions

  8. Audit Questionnaire cont. • Q1: Expenditure Reports • Q2-9: Account Coding, GL, Payroll Journals, Personnel Training • Q10: Contracted Services, Contract Monitoring, Contract Billing-detailed • Q11: Expenditures-policies, P.O. systems, documentation, returns • Q12: Travel Policies-Authorization, reimbursement, documentation, max amounts, records of meetings-agendas, certificates • Q13: Real Property/Fixed Assets/Competitive Bidding-fixed asset tracking/disposal

  9. Audit Questionnaire cont. • Q14: Reimbursement policies-consequences • Q15: Credit Cards/Revolving Accounts • Q16-20: Petty cash, manual checks, gift cards, allowable costs, retention policy • Q21: Budget Development and Amendments • Q22-24: Cash Management-additional measures implemented for proper control of ARRA funds, bank reconciliations, segregation of duties, monitoring deposits • Q25-33: Time and Effort Questions-job descriptions or contracts should contain ARRA coding

  10. Audit Questionnaire cont. • Q34-42: Data Quality and reporting- “Has the subrecipient developed criteria or methodologies for the estimates of the number of jobs created and retained that were funded by ARRA funds? If “No” when and if district will be developing these criteria. • Q43: Written plan for use of ARRA funds • Q44: Were new budgets developed or existing budgets amended to coincide with written plan-tie budget to written plan • Q45: Mitigate Supplement vs supplant requirements

  11. Summary • ARRA Audit Trigger: $750,000 • TEA and Feds performing Audits • Notice of Audit: Short Timeframe (1-2 weeks • Team Effort: Business Office, HR, Spec Ed departments • Warning: Final Exit Interview Results may not be the same as letter findings • If letter findings suggest weaknesses, disagree and submit additional documentation

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