New County Extension Directors In-Service Suzanne McNatt Extension Finance May 18,

 Agency Account Responsibilities  Agency Account Income  Agency Account Disbursements  Agency Account Transfers  Monthly Reconciliations  Audits: Periodic & Unannounced 2

 Accounting Policies & Procedures for OCES Agency Funds, Revised November, 2006   On the left, type “accounting” in the search box. Choose “Accounting Policy & Procedure for Agency Funds” from list. (is a Word Document) 3

Who is responsible for what?  The CED is responsible for the agency bank account  Tasks may be and should be delegated, but the responsibility can not be delegated  CED should be the overseer  More than one person should be involved 4

 One bank account only -  CED is the only authorized signer 5

 What money has to go into the agency account?  If it comes into the office or if staff are handling money as part of their job, run it through the agency account. 6

 This may include “in & out” money being held for others -  Fairboard rental money, carnival money, etc.  Stock show-pre-entered at fair, livestock premium sale money  Sales of HCE cookbooks, 4-H Club t-shirts etc.  Membership dues for HCE groups, Cattlemen’s Assn, 4-H groups 7

 Issue an official OSU receipt for all income –  Except for publications costing < $1.00, which are receipted in total on a daily basis  Receipt must be issued to person remitting the funds  Date on receipt must reflect date funds were received  Retain yellow copies & voided white copies in receipt book 8

 Receipt # from official OSU receipt should be documented on –  Soil Logs (there is/should be a column for that)  Deposit Register 9

 The CED is Responsible for Making the Deposit –  May delegate  Segregate duties where possible  Mandatory 5 consecutive days Annual Leave 10

 State Law, Statute 62 Okl. St. Ann. § 7.1 –  Within 5 days of receipt -OR -  By next business day if cumulative un- deposited funds is $100 or more…  WHICHEVER COMES FIRST 11

 -OR – As directed in your last Audit:  Due to non-compliance, your office may have been instructed to deposit twice a week, in addition to…  By next business day if cumulative un- deposited funds is $100 or more…  WHICHEVER COMES FIRST 12

 Essential - Have a Backup Plan For:  Busy times such as Fair, where only one person may be holding down the office  Times when personnel are on annual leave  Unexpected absences 13

 Deposit Register:  Shows the detail of each deposit  Should match receipts  Review it – Reasonable/Reality  Sign or initial it 14

 Disbursements – As CED you should:  Review the supporting documentation of the disbursement. This is what gives you the authority to sign the check. 15

 Note about handling the payout of funds for activities and obligations of outside groups (e.g. HCE, Cattlemen’s Association, Producer Associations, Fairboards) -  Do not spend their money for them  Remit the funds you collect for them to them  Have an agreement regarding how often you remit their money to them 16

 An Agency check may be used to reimburse staff & others for items they purchased, provided:  Infrequent and for legitimate reason  Prior approval  Original, itemized vendor receipt-no exception  Note-volunteer travel is handled differently  Note- Employee travel must be reimbursed on a travel claim/voucher 17

 An Agency check may be used to pay up to $600 annually to Independent Contractors -  Determination-Independent Contractor Form  20-Factor Test  Invoice  If amount > $600 then…… 18

 For Speaker/Independent Contractor Payments over $600 – Send to OSU:  Determination-Independent Contractor Form  20-Factor Test  Invoice  Agency check to OSU Extension Finance 19

 Note – part-time or one-time office help is NOT considered to be an Independent Contractor situation  Note – OSU employees cannot provide “independent contractor” services on the side to the office. 20

 Refunds to individuals must have supporting documentation –  Ex. Written request from participant unable to attend program, or a memo on office letterhead communicating the cancellation of a workshop and thus returning registration fees.  Reference to the receipt # and the deposit # of the original funds received should be part of the backup documentation for the refund check. 21

 What transfers can be/should be made between categories  T ransfer residue at end of program to maintenance category  Transfer amount not needed for current expenditures in soil testing and publication categories to the maintenance category periodically 22

 Transfers (Continued) –  If have several 4-H categories, may transfer among the 4-H categories  Document transfers with a memo to the file 23

 CED is responsible for the reconciliation between the bank statement & the checkbook –  If delegated, the CED must review & initial  Reconciliation & reports due to District office within 10 days of statement date  Segregation of duties….Due care 24

 Audits are performed periodically of the financial, inventory, County, Soil, leave and other records  Reviews of cash/bank activity and change funds are also conducted on an UNANNOUNCED basis. 25

 Call ahead. There is probably a prescribed way already of how to handle.  Resources for Agency Account Activity:  Your District Director  Extension Finance: ▪ Steve Bonds (405) ▪ Barbara Krajacic (405) ▪ Suzanne McNatt (405)

 Questions? 27