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Local Agency Funds

Local Agency Funds. Presented to Virginia Cooperative Extension: September 21, 2010 September 24, 2010 September 28, 2010 October 14, 2010. Objectives. Session 1 Local Agency Fund Update and Audit Results Session 2 UAAs Reconciliations. Background. Transition to Local Agency Funds

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Local Agency Funds

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  1. Local Agency Funds Presented to Virginia Cooperative Extension: September 21, 2010 September 24, 2010 September 28, 2010 October 14, 2010

  2. Objectives • Session 1 • Local Agency Fund Update and Audit Results • Session 2 • UAAs Reconciliations

  3. Background • Transition to Local Agency Funds • Updates • Acknowledgements • Process improvements were noted for the Extension offices visited as disbursements were not made from checking accounts but through HokieMart or purchase cards, which provided an additional level of scrutiny. (August 2010 Internal Audit Report)

  4. Audit Findings and Training Emphasis • Need to emphasize the following areas: • Independent Deposit Certification • Local Agency Funds policy guidance • P-card pre-approval process • Identifying and Depositing Donations (when to use VT Foundation) • Policy guidance on funds handling and conflict of interest • Reconciliation training

  5. Independent Deposit Certification • Separation of Duties is Critical • Deposits should be routinely certified by someone other than the cash handler/depositor. • Audit FindingThis is not being done. In six of the ten units audited, there was no indication that the deposit had been certified. • Your office MUST certify the deposit either before or after it has gone to the bank. How to do this? • Someone, other than the cash handler/depositor must compare the deposit slip to the pre-numbered receipts. The best practice is to certify before the deposit is made. This should be done by the Unit Coordinator. • The certification can be done by someone else in the office, as long as the deposit slip is certified to the pre-numbered receipts. However, it is the unit coordinator’s responsibility. • Finance Office will be incorporating this as part of our monthly review process.

  6. Local Agency Funds – Policy Guidance 9 out of 10 offices reviewed did not consistently adhere to the VCE Local Funds Policy • Areas that we need to focus on improving: • Timeliness of Deposits • Deposits must be made within 24 hours when funds exceed $400 or at a minimum of weekly when funds are on-hand. 31% of deposits tested did not meet the standard. • Tracking receipt of funds • Your unit must have a pre-numbered receipt book and you must use it to record incoming funds. • This is a necessary tool when certifying your deposits. You must compare this to your deposit slip as part of the process. • Note: a mail log is not necessary if you have a pre-numbered receipt book. • Voided Receipts • For all voided receipts you must provide an explanation for the void. No exceptions. • For all voided receipts you must have the initials of the supervisor (UC) approving the void. No exceptions. • Endorsing Checks • Checks must be endorsed immediately upon receipt. Do not set the check aside and wait to endorse it later. A stamp can be purchased for endorsement purposes. • Posting a returned check fee sign • Units using Wachovia – You must post a sign in your office indicating a $25 fee for returned checks. • Units using other banks – You must post a sign in your office indicating the corresponding fee that your bank charges for returned checks.

  7. Purchasing Card: The Pre-approval Process • All P-card transactions are subject to pre-approval. This pre-approval must be documented and retained on file in your office. • This is an internal VCE requirement. Not a VT requirement. Why do we require this? • What level of pre-approval is necessary? • Always consult your district office. If there is a district guideline, that is the one to use. Otherwise: • Pre-approval per transaction • Pre-approval per event • Pre-approval per time-period

  8. Purchasing Card: Refresher • Please make sure to retain your receipts for all purchases. • Please make sure that your p-card log is prepared. • Please make sure that you get the certification form and original statement to the controllers office in a timely manner. • For more information, go to: • http://www.purch.vt.edu/Department/Procedures/ge.html

  9. Local Agency Funds v. Foundation • Gifts from individuals who are seeking to claim that gift as a charitable contribution MUST be deposited into the Virginia Tech Foundation. • Local Agency Funds can account for other transactions. • We will be working on more extensive training in the coming months as the 4H club tax status issue begins to take shape.

  10. Other Training • Policy guidance on funds handling. • Currently working with the Bursars Office on the funds handling plans and what accommodations can be made for VCE. Work within the existing VCE funds handling guidelines until further notice. • Conflict of Interest. • Training will be forthcoming to address the VT conflict of interest policy. Anticipate some training on this in Winter 2011. • Reconciliations • Up next for UAAs (provided by Julia Gregory)

  11. Questions?

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