Fiscal Responsibility Through an Audit Lens

1. Fiscal Responsibility Through an Audit Lens Director Session #1 Anne B. Wall, CPA & Thomas P. Smith, CPA Robinson, Farmer, Cox Associates

2. Responsibility for District Financial Operations • Desktop Guide for Fiscal Operations • Develop Budgets and Budget Reports • Ensure Finances are Administered in Accordance with Sound Policies and Practices (Review Annually) • Personnel • Purchasing • Credit Card • Vehicle Usage • Reserve Funds

3. Review and Involvement in Financial Operations Flowchart for Purchasing Flowchart for Receiving Flowchart for Voucher Payable Flowchart for Treasurer [for Payment] • Segregation of Duties in a Large Organization

4. Review and Involvement (cont) • Realistic Organization of a SWCD • Considerations for Segregation of Duties • Director Involvement in Processing and Review • Significant Purchases • Disbursement of Funds • Bank Reconciliation • Financial Reporting – Monthly and Quarterly • Public Records

5. Compliance • Payroll Processing and Reporting • Fringe Benefits • “Extra” compensation • Vendor Payments – goods and services • Program Payments to Property Owners • Public Deposits

6. Never Do’s • Have one employee write checks, sign checks and reconcile bank accounts • Sign a check without two (2) approvals on the invoice • Sign a blank check • Direct your accountant to post an expense to an improper account to keep the proper account from going over budget

7. Never Do’s (continued) • Authorize a bank account not included in your accounting system • Give only verbal approval for payroll adjustments • Pay employees for services and not include them in payroll processing

8. Conclusion and Questions • Potential Consequences of Not Being Involved • Fraud • Abuse • Late fees, fines, etc. • Negative publicity • Questions • Thank you for having us