County Extension
Directors In-Service
Suzanne McNatt
Extension Finance
May 19, 2011
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Update on Audits
Unannounced Reviews
Travel Issues
Records Retention
Miscellaneous
Your County, Your Issues
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 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
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 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)
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 What we look at in an Audit –
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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
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Purpose is Three-Fold:
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(1) Verify Adequate Internal
Control/Security over Cash –
 Restrictive endorsement of checks
 Money/checkbook locked up at night
 No signed, blank checks on hand
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Purpose is Three-Fold (Continued):
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(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
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Purpose is Three-Fold (Continued):
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(3) Verify Timely Deposit of Cash Per
Oklahoma Statute or Your Last Audit –
 Clock starts ticking when the funds are
received
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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
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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
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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
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List specific reason (i.e. “why”) you had
to
stay on-site.
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 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)
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 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
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 “Pink”
(County) Sheets Due to
District Office by 15th
 …District to Ext. Finance by 30th
 …Ext. Finance completes audit of
county-paid travel by 15th (45-day turnaround)
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Completed Bank Reconciliations Due to
District Office before the 10th 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
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 Soil Test Price: $10
 $9 for cost of test; $1 for postage
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The postage portion collected “stays” in
your Agency Account (you are using your
District postage allocation on your
postage machine to mail samples).
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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)
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 What
Questions or Concerns Do
You Have in Your Office/County?
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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
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