1. County Extension Directors In-Service Suzanne McNatt Extension Finance May 19, 2011 1

2.  Update on Audits  Unannounced Reviews  Travel Issues  Records Retention  Miscellaneous  Your County, Your Issues 2

3.  Corrective Actions Noticed –  Deposit registers are being reviewed & signed by you  Elimination of vendor credit cards, loans, lines of credit  Independent Contractor form (& 20 Factor Test, when applicable) being used  More timely deposits 3

4.  Still seeing some of the following –  Sales tax being paid on purchases  Checks received not restrictively endorsed upon receipt  Soils log - Receipt # issued to customer not documented  Purchases of flowers out of M&O for employees &/or family  Receipt book missing dates or have a lot of strikeovers  Late Deposits (Still seeing too many of these) 4

5.  What we look at in an Audit –  Disbursements – Checks / Backup documentation  Deposits / Registers / Receipts / Cash on Hand  Bank Reconciliations / bank statements / Quicken  Leave Records  Inventory  County-paid Expenditures  Soils Lab Logs / Postage / Fair Board Judges List 5

6. Purpose is Three-Fold:  (1) Verify Adequate Internal Control/Security over Cash –  Restrictive endorsement of checks  Money/checkbook locked up at night  No signed, blank checks on hand 6

7. Purpose is Three-Fold (Continued):  (2) Verify All Incoming Cash Is Properly Receipted & Documented –  Receipt is written and issued to customer  Deposit register/Deposit/Bank/Quicken/Bank Reconciliation/Annual Leave  Trace cash transactions through the system 7

8. Purpose is Three-Fold (Continued):  (3) Verify Timely Deposit of Cash Per Oklahoma Statute or Your Last Audit –  Clock starts ticking when the funds are received 8

9.  Out of State Requests – How Far in Advance to be Submitted?  30 + Days; Not 4, 5, or 6 months  Allows enough time for signatures if/when people are out  Airline Ticket prices 9

10.  For Out of State “Day” Trips (not over-night), the Out-of-State Request is not Required  For County-Paid claims – include on your monthly travel  For State-Paid (AIRS) claims – File a separate in-state “paper” voucher 10

11.  Request for Overnight Stay Within 60 Miles -  OSF – 60-mile distance is the rule  Exception – when there is a valid reason  Examples – Required to chaperone 4-H’rs; Required to prepare/coordinate/stay on-site for workshop or programs  List specific reason (i.e. “why”) you had to stay on-site. 11

12.  How Long must you keep financial records?  The records most recently audited + the unaudited records since that date...  BUT NOT LESS THAN 5 YEARS  Items to keep permanently (next slide) 12

13.  Keep these records permanently:  The single-sheet Leave Summaries  Invoices of “big-ticket” items (ex.copier)  Inventory records (additions, disposals)  Certain Civil Rights records (ask Ag HR)  Shred SSNs, sensitive info 13

14.  “Pink” (County) Sheets Due to District Office by 15 th  …District to Ext. Finance by 30 th  …Ext. Finance completes audit of county-paid travel by 15 th (45-day turn- around) 14

15.  Completed Bank Reconciliations Due to District Office before the 10 th working day after the bank statement date  CED is responsible for effecting  Reconciliation should be done by someone other than person who maintains the checkbook 15

16.  Soil Test Price: $10  $9 for cost of test; $1 for postage  The postage portion collected “stays” in your Agency Account (you are using your District postage allocation on your postage machine to mail samples). 16

17.  The soils postage in your Agency Account may be transferred periodically to your M&O category for…  putting additional postage on your meter (by sending Agency check & ‘request to increase’ allocation to your District office)  Making M&O type expenditures for your office (no food) 17

18.  What Questions or Concerns Do You Have in Your Office/County? 18

19.  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) 744-5514 ▪ Barbara Krajacic (405) 744-9700 ▪ Suzanne McNatt (405) 744-9697 19