Cash management ppt @ mba

FINANCIAL MANAGEMENT

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Cash Management

1. The district’s allocation should agree to the SEA approved budget.

2. Are funds requested on a regular basis?

3. Is the Three-Day Rule being followed for cash advances?

4. Does the district qualify for the one-time 30-day cash advance? If yes, did they request it? Was the advance used within 30 days?

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Cash Management

5. Are the final expenditure reports filed on time?6. Determine if the final expenditure report equals the

cumulative total of the funds requested. If not, does an overpayment exist? If yes, did MDE receive a refund?

7. a. Are all recipients (e.g., federal grant funds and all other funds including program income) deposited promptly?

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Cash Management

7. b. Are all receipts deposited intact?

8. Are all receipts controlled by registers/logs?

9. Is the cash receipts function performed by someone other than the person who is responsible for signing checks, reconciling bank accounts or maintaining non-cash accounting records, such as accounts receivable, the general ledger, or the general journal?

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Cash Management

10. Are bank statements received directly and unopened by the person who prepares the bank reconciliation?

11. Are bank statements reconciled at least monthly?

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Cash Management

12. Are paid checks examined for date, name, cancellation, and endorsements at the time the reconciliation is prepared?

13. Are vouchers or supporting documents identified by grant, number, date and expense classification?

14. Do supporting documents accompany checks when they are submitted for signature?

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Cash Management

15. Are supporting documents canceled to prevent reuse?

16. Are invoices or vouchers approved in advance by authorized officials?

17. Are voided checks properly canceled and retained for future examination?

18. Are blank checks secured?

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Cash Management

19. Is the practice of drawing cash payable to “cash” or “bearer” prohibited?

20. Are procedures in place to prevent checks from being issued on oral authority?

21. Are employees prohibited from having custody of any unrecorded cash or negotiable instruments of the agency?

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Cash Management

22. a. Does the agency have written policies and procedures on the receipt and obligation/expenditure of program income?

b. Do the policies and procedures assure that program income is obligated properly and during the required period?

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Cash Management

23. a. Is there an individual assigned the responsibility for the obligation of program income funds?

b. Are these two different individuals?

24. Were there any costs incident to the generation of program income?

If yes, were costs deducted from gross income to determine net program income?

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Inventory Procedure

1. Does the LEA have written procedures and controls in place to protect assets acquired with grant funds?

2. Are equipment records maintained that include a description, serial number, location, source, acquisition cost and date, and percent and source of federal funds?

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Inventory Procedure

3. Was a physical inventory taken within the last 12 months and reconciled with the equipment records? What was the date of the last inventory?

4. Does the LEA have adequate maintenance procedures that keep the equipment in good condition?

5. Does the LEA have procedures for the disposition of equipment?

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Inventory Procedure

6. Are the procedures being followed?

7. Does a control system exist that safeguards against loss, damage, or theft of equipment? Does that system require the investigation of loss, damage or theft of equipment?

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Inventory Procedure

8. During the period under review, were there any audit/monitoring findings related to equipment use, management or disposition?

If so, was corrective action implemented?

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Program/Grant Budgeting

1. Are line item costs for the grant award consistent with the program office approved budget for the grant?

2. Does the grant have an established policy/ threshold related to moving expenditures between functions? If so, did the district exceed the threshold for any function?

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3. Were there expenditures recorded in a function that were not approved by the program office?

4. Does the agency have an operating budget for each of its grants?

5. Who are the key persons responsible for developing the budget for the agency?

6. Is responsibility for budget preparation defined at all organizational levels?

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7. Does the agency’s operating budget reflect sufficient non-federal funds to match the federal funds during the grant period for the fiscal years under review? (This control should assure continuation of services and that the associated federal funds can be claimed.)

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Supplanting

1. For any salary added to the grant, ask if the employee is a new hire. If not, how has the job description for the employee changed?

2. Is the service being offered by the grant one that the district has offered in the past using local/state funds to support?

3. Are there other sources of information to confirm that the funds are being used to fund an activity that was not previously funded by a local/state source of revenue?

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Procurement – Allowable Costs and Contract Administration

1. Does the district have procurement procedures? Do they reflect state and local laws, as well as conform to federal law and standards in Section 34.CFR80.36(b)?

2. Does the agency have a written code of conduct for all employees engaged in the award and administration of contracts (must address conflicts of interest and must have protest procedures to handle disputes)?

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3. Did the agency engage in situations that restrict competition, including:a. Unreasonable requirements on vendors to qualify to do business?b. Prequalified lists should not limit competition?c. Requiring unnecessary experience or bonding?

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3. d. Noncompetitive pricing practices?

e. Noncompetitive awards to consultants on retainer – in EDGAR?

f. Organizational conflicts of interest?

g. Specifying a brand name?

h. In-state or local preferences?

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4. a. Does the agency have written vendor selection procedures?

b. Did it determine that the vendor was not suspended or debarred – http://www.epls.gov/?

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5. Did the agency do an appropriate cost/price analysis which includes:

a. A clear and accurate description of technical requirements?

b. Identification of all requirements the vendor must fulfill?

c. Identification of evaluation factors?

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6. Were appropriate methods of procurement used (See 34CFR80.36[d]) which include:

a. Small purchase procedures?

b. Competitive sealed bids?

c. Competitive proposals?

d. Noncompetitive proposals?

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7. Are purchases in writing (purchase order okay) and include the following clearly defined deliverables:

a. Include a description of services to be performed or goods to be delivered?

b. Include a description of dates when services will be performed or goods delivered?

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7. c. Include a description of locations where services will be performed or goods will be delivered?

d. Include a description of number of students/teachers/etc., to be served (if applicable)?

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8. Are payments based on written invoices which include:

a. Description of services performed or goods delivered?

b. Description of dates services were performed or goods delivered?

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8. c. Description of location services were performed or goods delivered?

d. Description of students/teachers, etc., served (if applicable)?

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9. Are costs charged to each grant incurred during the grant period in the grant approval letter?

10. Are costs eligible under the terms of the funding source?

11. Are the costs reasonable, necessary and allowable under the applicable OMB Cost Circular A-87, A-21 or A-122?

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12. Were grant funds only expended on programs listed in the approved application?

13. Were grants not commingled by identifying each funding source separately in the accounting records?

14. Were revenue and expenditures accounted for by project, funding source and grant fiscal year?

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15. Did the grantee charge equipment (capital outlay) greater than $5,000 to the grant? If yes, answer questions a-c.

a. Did the grantee obtain prior approval from MDE for the purchase?

b. Was all equipment purchased with grant funds properly tagged and inventoried?

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15. c. Was all equipment disposed of that was purchased with grant funds according to federal criteria?

16. Were contracted services explained in the contract, grant application, and budget detail provided?

17. Does the district have contract administration procedures? Are they in compliance with 43CFR80.36(i)?

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18. Do contracts supported with federal funds contain the following required provisions:

a. Remedies for breach, sanctions and penalties?

b. Termination for cause and convenience?

c. Compliance with federal statutes and executive orders?

d. Reporting requirements?

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18. e. Patent rights?

f. Copyrights?

g. Access by federal agency, Comptroller General of the United States to records of contractor?

h. Retention of records for three years after final payment?

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19. Does the agency maintain a contract administration system that ensures contractors perform in accordance with the terms, conditions, and specifications of the contract?

20. Does the contract administration system have controls to ensure that contracts are in writing (purchase order okay) and include clearly defined deliverables:

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20. a. A description of services to be performed or goods to be delivered?b. A description of dates when services will be performed or goods delivered?c. A description of locations where services will be performed or goods will be delivered?d. A description of number of students/ teachers/etc., to be served (if applicable)?

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21. Does the system have controls to ensure that payments are based on written invoices which include:

a. Description of services performed or goods delivered?

b. Description of dates services were performed or goods delivered?

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21. c. Description of location services were performed or good delivered?

d. Description of students/teachers, etc., served (if applicable)?

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Payroll

1. Are there written policies and procedures governing payroll administration?

2. Do salaries from the DS-4044 agree to the district’s general ledger payroll accounts for all federal grant programs?

3. Are all salary costs for work performed within the grant period?

4. Salaries must comply with the employment contract which indicates the annual salary scale for the grant period.

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Timekeeping

1. Are there written policies on recording time distribution for employees who work on one or more federal cost objectives?

2. For split-funded employees:

a. Does the district have Personnel Activity Reports (PARs)? Instructional staff may use their lesson plans to confirm their written schedules if they meet all of the other PAR requirements.

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Timekeeping

2. b. Are the PARs prepared at least monthly?

c. Are the PARs signed and dated by the employee? A-122 allows PARs to be signed by the supervisor for non-profit agencies.

d. Do the PARs account for the staff person’s total activity?

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Timekeeping

2. e. Are the PARs contemporaneous and not prepared in advance? If lesson plans are used as PARs, the teacher must

make daily progress notations.

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TImekeeping

3, For 100% federal funded or “single cost objective” school district employees:

a. Does the district have certifications or a blanket certification showing that the employees worked solely on a single federal award or cost objective?

b. Are the certifications prepared at least semi-annually?

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Timekeeping

3. c. Are the certifications signed by the employees or a supervisor with first-hand knowledge of the work performed by the employees and dated?

d. Are the certifications contemporaneous and not prepared in advance?

Note: This section does not apply to non-profits. A-122 requires non-profit employees to prepare PARs monthly.

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Timekeeping

4. Paraprofessionals may use their regular time sheets as long as they meet the following:

a. Are the time sheets an after-the-fact distribution of their actual activity?

b. Do the time sheets account for the total activity for which they are compensated, showing the hours or percentages for the programs that they worked on?

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Timekeeping

4. c. Are they prepared at least monthly and coincide with one or more pay periods?d. Are they signed by the employee?

5. Does the system for establishing estimates produce reasonable approximations of the activity performed?

6. Are at least quarterly comparisons made of actual costs to budgeted distributions based on monthly activity reports?

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Timekeeping

7. Are adjustments made to costs charged to federal awards based on the activity actually performed?

Note: These adjustments can be made annually only if the quarterly comparisons show differences between budgeted and actual costs of less than 10%

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Timekeeping

8. Are the budget estimates or other distribution percentages revised at least quarterly, if necessary, to reflect changed circumstances?

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District-Wide Budget

1. Are actual expenditures (in total) within the board adopted budget?

2. Are actual revenues (in total) as great as the board adopted budget? If not, did the district either get board approval or reduce expenditures so that the fund balance would not be depleted below the board approved amount?

3. Does the district have a reasonable policy related to detecting violations to the Uniform Budgeting and Accounting Act?

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4. Does the organization have fiscal controls which result in:

a. Control of expenditures within the approved operating budget?

b. A management review and approval prior to issuing budget amendments or incurring obligations or expenditures which deviate from the operating budget?

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5. Is there timely, periodic financial reporting to management which permits:

a. Comparison of actual expenditures with the budget for the same period?

b. Comparison of revenue estimates with actual revenue (including program income) for the same period?

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6. Is the responsibility for maintaining budget control established at all appropriate levels?

7. What steps are taken if projected revenues are not sufficient to cover project expenditures?

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Maintenance of Effort

1. Was the district on MDE’s list of districts who failed to maintain effort in the previous year?

2. If so, was the current year grant allocation reduced by the amount by which the district failed to maintain effort in the previous year?

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Internal Controls

1. Is there adequate separation of duties to assure that more than one person authorizes payment and reviews cash receipts?

2. Does the district maintain procedures to assure that cash received is appropriately accounted for?

3. Does the district maintain and follow procedures related to the disbursement of funds?

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Internal Controls

4. Does that procedure assure that disbursement of funds is made only on the basis of approved vouchers with supporting documentation attached?

5. Does the district maintain a receiving document to assure that items paid for are actually received?

6. Are expenditures posted to the accounting records as they occur?

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Internal Controls

7. Does the agency have written accounting policies and procedures to assure uniform practice?

8. Do accounting staff receive and maintain federal policies, procedures and instructions on accounting for and expending federal funds?

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Internal Controls

9. Does the agency utilize the same policies and procedures for accounting for and expending federal funds as it does for its state funds?

10. Are manual records kept?a. If so, why?b. What type?

11. Is there sufficient staff to carry out the accounting function?

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Internal Controls

12. When the agency reports on the modified accrual basis, are there adequate controls, such as checklists for statement-closing procedures, to insure that open invoices and amounts for goods and services received are properly accrued or recorded in the books or controlled through worksheet entries?

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Internal Controls

13. a. Are sources of federal funds identified and tracked in the accounting system?b. Are sources of non-federal funds identified and tracked in the accounting system?

14. Does the agency’s accounting manual describe the criteria for an obligation?

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Internal Controls

15. For each federal grant selected, does the accounting system provide information on the following:

a. Authorizations?

b. Obligations?

c. Funds received?

d. Program income?

e. Subgrants?

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Internal Controls

15. f. Outlays?

g. Unobligated balances?

16. Are obligations recorded by:

a. Funding Source?

b. Object Code?

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Internal Controls

17 a. Does the accounting system allow for the liquidation of prior-year obligations?b. If not, how is this done?

18. Are accounting records supported by source documentation (e.g., canceled checks, paid bills, payrolls, contract and subgrant award documents, etc.)?

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Internal Controls

19. Are payment vouchers identified by:

a. Grant Number?

b. Expense classification?

c. Funding source?

d. Transaction date?

20. Are purchasing and payment functions separate?

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Internal Controls

21. Do accounting staff review the following prior to entry into the system?

a. Authorizations?

b. Purchase Orders?

c. Payments?

22. Are requests for payment to GCMRS and CMS based on information from the accounting system?

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Internal Controls

23. Does the system provide for prompt and timely recording and reporting of all financial transactions?

24. Are there controls to preclude:a. Over-obligation?b. Under- or Overstatement of unliquidated obligation?c. Duplicate payments?d. Inappropriate charges to grants?

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Internal Controls

25. Does the accounting system provide meaningful data to management on a timely basis?

26. Are federal reports prepared on the same basis as the accounting system (modified accrual?

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Internal Controls

27.a. For the fiscal year(s) under review, do the accounting records support the expenditures reported on the GCMRS and CMS?

b. If not, are work papers available to support adjustments to the financial information reported?

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Internal Controls

28. a. During the fiscal year(s) under review, did the agency comply with the requirement to liquidate outstanding obligations within 90 days of the end of the grant period?

b. If no, did the agency obtain a waiver to extend this liquidation period?

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Internal Controls

29. Does the agency have policies and procedures governing the retention of records that are:

a. Fiscal?

b. Programmatic?

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Internal Controls

30. Do agency policies meet or exceed federal retention requirements for:a. General Requirement – Three years from the final expenditure report or audit resolution or other action, whichever is later?b. Real Property and Equipment – Three years from the date of disposition or replacement or transfer at the direction of the awarding agency?

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Internal Controls

31. Has the grantee retained all records related to pending litigation, claims, negotiations, audits, or other actions involving records, if beyond the regular record retention requirement?

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Cash management ppt @ mba