Presented by:
Carol Oman
Director of Internal Audit
12/05/2012
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Internal Audit reviews or audits procedures
and processes to determine if a school or
department handles areas properly and to
make suggestions on improving these areas.
If concerns are noted, Internal Audit works
with pertinent personnel to resolve the
concerns and prevent them in the future.
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Determine if internal controls (checks &
balances) are in place to safeguard assets.
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Determine if procedures are being followed.
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Provide an independent / objective
perspective.
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Conduct investigations of fraud.
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Uncover problems and concerns before they
become material.
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Reports functionally to the Board of Trustees.
Reports administratively to the
Superintendent.
Follows the Institute of Internal Auditors’
International Standards for the Professional
Practice of Internal Auditing.
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Projects performed annually
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High Risk Areas based on a risk assessment
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Requests from Board / Superintendent /
Associate Superintendents / Principals
Special Projects & Questions
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Annual Financial Audit
Conflict of Interest
◦ Employees with Primary Purchasing Responsibilities
◦ Vendors
◦ Officers (Superintendent) & Board Members
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Financial Audits – Schools & Departments
Human Resources / Payroll
◦ Salaries
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Parent Organizations
◦ PTOs
◦ Booster Clubs
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Travel Expenditures
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Contact Principal about the audit (unless a
surprise audit). Petty cash is always a
surprise audit.
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Document procedures and processes.
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Perform testing.
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Discuss results of the work.
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Draft Report is provided to the Principal.
◦ Details and results of testing performed.
◦ Commendations for areas being handled well.
◦ Recommendations if concerns are noted.
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Final Report is issued.
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Money Received
All money received should be:
◦ receipted,
◦ counted in front of the person turning in the
money,
◦ recorded to the proper account, and
◦ deposited daily.
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Money Handling
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Money should not be kept in a desk, filing
cabinet, or other location. All money should
be kept in the safe.
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Activity funds are centralized; therefore, no
bank accounts, except those set up by the
Finance Office, should be used.
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Money Handling
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All money received must be submitted to the
Financial Secretary daily. Money cannot be held to
make change and cannot be used to make
purchases.
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Money received cannot be used to cash personal
checks.
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All petty cash funds or change funds must be
approved by the Principal and the Finance Office.
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Money in Safe
 When money is to be placed in the safe and a faceto-face count cannot be done at that time:
◦ Money should be put in a sealed courier bag with the
name of the person turning in the money, the date,
the club or reason money was collected.
◦ Financial Secretary should also sign and date the
sealed courier bag and then secure the bag in the
safe.
◦ The sealed courier bag should not be opened unless
the person turning in the money and the Financial
Secretary are present.
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Fund-Raisers
 Fund-Raising Activity Report
◦ Permission to hold fund-raiser
◦ Account for the fund-raiser

School / School Group Fund-Raisers
◦ Financial Secretary - Verify the deposits and
expenditures reported on the Operating Report.
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PTO / Booster Club Fund-Raisers
◦ Treasurer – Verify Operating Report information.
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Fund-Raisers – IRS Prohibitions
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Cannot require anyone to participate in a fund-raiser.
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Cannot require that a certain amount be sold or that a
certain amount be donated in lieu of fund-raising.
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Cannot penalize anyone for not participating in a
fund-raiser.
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Cannot use individual accounts.
 Cannot credit an individual based on revenues raised to
offset that individual’s expenses.
 Amount raised must benefit a campus / organization as a
whole.
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Purchases
Money expended should be:
◦ Approved prior to order being placed,
◦ paid to appropriate vendors,
◦ for school-related expenses, and
◦ paid through the District’s Accounts Payable
Department.
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Purchases
 Are funds available for the purchase?
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Are the items being purchased appropriate
for the school?
How was the vendor selected? Has this
vendor been used before?
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How to select a Vendor for a Purchase
1) Available from the Distribution Center?
2)
3)
Included in a Bid or Contract?
If not in bid or contract, then estimate
annual district purchases of type of item.
a)
b)
c)
Less than $5,000 – No Quotes
$5,000 to less than $25,000 – Written Quotes
$25,000 or more – Competitive Bids / Proposals by Purchasing Dept.
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Purchases
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Bid or Contract
 Use the bid or contract price.
 Document bid or contract # on PO.
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Quotes - $5,000 or more and less than $25,000
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Receive written quotes.
Complete quotation form.
Indicate quote # on the PO.
Submit the quotation form and written quotes to the
Finance Office.
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Petty Cash
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Money on hand plus receipts must equal the
petty cash amount allocated for your school.
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No cash advances should be made.
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No personal checks should be cashed.
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Reconciliations
 Financial secretary must reconcile the
school’s accounting records with the general
ledger balances monthly.
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Document the reconciliations.
Principal should review and approve the
monthly reconciliations.
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Spot Checks by Principal
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Suggest that the Principal do surprise counts of petty
cash periodically.
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Suggest that the Principal check the contents of the
school safe periodically to ensure that money is
being deposited timely.
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Have the financial secretary and another person
present when these counts / checks are done.
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Maintain a log of when these counts / checks are
conducted and have pertinent people initial the log.
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
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In accordance with the Institute of Internal
Auditors’ Standards, a quality assessment
review of the Internal Audit Department must
be performed every five years by an
independent external reviewer.
Conroe ISD performed the last review and the
next review is planned for the current year.
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
Finance –
http://inside.cfisd.net/depts/finance/default.htm
 Sales Tax Tips
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Purchasing –
http://inside.cfisd.net/depts/purchasing/purchasing.htm
 Requirements for Competitive Quotes and Bids
 Bid and Contract Awards
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Fund-Raisers –
http://inside.cfisd.net/policies/fundraiser.htm
 Fund-Raiser Guidelines
 Word Version of Fund-Raising Activity Report
 Approved Fund-Raiser Vendors List
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Booster Clubs –
http://www.cfisd.net/campuses/booster/booster.htm
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PTOs –
http://www.cfisd.net/campuses/pto/pto.htm
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
Carol Oman, CPA, CIA
Director of Internal Audit
281-897-4111
carol.oman@cfisd.net

Pat Stefan
Internal Auditor III
281-517-6537
patricia.stefan@cfisd.net

Janett Tapia-Gonzalez
Internal Auditor II
281-517-2941
janett.tapia-gonzalez@cfisd.net
12/05/2012
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Audit, Fraud, PTO & Booster Club Questions
 Internal Audit

Financial Questions
Karen Smith
Assistant Supt. / Business & Financial Services
281-897-4020
karen.smith1@cfisd.net
Mable Isles
Director of Financial Services
281-897-4067
mable.isles@cfisd.net
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Accounts Receivable and Sales Tax
Sha Shena Cooper
Accounts Receivable Specialist
281-897-4106
shashena.cooper@cfisd.net
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Fund-Raisers
Marty Edwards
Director of General Administration
281-517-6367
terry.edwards@cfisd.net
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
Finance Webpage
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Purchasing Webpage
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Requirements for Competitive Quotes and Bids
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Fund-Raiser Information Webpage
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Record Retention – School Financial Records
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PTO and Booster Club Webpages
Questions???
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