CASH CONTROL AND PED CASH REPORT

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CASH CONTROL AND PED CASH REPORT NMASBO 2017 BOOT CAMP Nancy J Ross 505-330-3203 nancyross@q.

1 CASH CONTROL AND PED CASH REPORT NMASBO 2017 BOOT CAMP Nancy J Ross nancyross@q.com TAKE AWAYS Safeguarding cash includes not only currency and coins but also petty cash, blank check stock and blank receipt books Primary passwords should NEVER be shared. Non-sufficient checks and electronic payments found on the bank statement should tie to transactions in the General Ledger An Actuals report from OBMS may NOT match a budget report pulled from your accounting system. An increase in enrollment this current year does NOT particularly equate to additional funding next year. 1

Budgeted vs Actual Train all staff and hold them accountable to follow the established system of financial procedures (INTERNAL CONTROLS) Handling and safeguarding cash Record transactions as soon as

2 Budgeted vs Actual Train all staff and hold them accountable to follow the established system of financial procedures (INTERNAL CONTROLS) Handling and safeguarding cash Record transactions as soon as possible after transaction occurs Reconcile bank statements monthly Management oversight CASH CONTROL Budgeted vs Actual Budgeted cash balance vs actual cash balance Audit exception Submit a BAR Budgeted revenue Monitor the flow Budgeted expenditures Deficit spending not allowed Train for planned expenditures 2

Train Accountable Staff Hold yourself and staff accountable Their protection as well as that of the District/ Charter DO NOT share passwords while I m away

Safeguarding Cash Includes access control of blank check stock and receipt books Includes handling requirements where large amounts of cash are collected

3 Train Accountable Staff Hold yourself and staff accountable Their protection as well as that of the District/ Charter DO NOT share passwords while I m away passwords Thorough training is CRITICAL Monitor compliance Monitor effectiveness Consider staff input for full buy-in and an all inclusive system Handling and Safeguarding Cash Includes access control of blank check stock and receipt books Includes handling requirements where large amounts of cash are collected especially over weekends Deposit revenue within 24 hours Systemic procedures for: timely deposits submission of deposit documents funding printed checks posting electronic payments 3

4 Record Transactions Timely Timely submission of transactions from school sites Record in financial software as soon as possible after transaction occurs Includes NSF checks Includes entries made by bank on bank statements Monthly Bank Reconciliation MONTHLY even though reporting quarterly!! Be careful with adjustments All entries on a bank statement must represent transactions that have posted to your general ledger Not reconciled until it ties to your general ledger trial balance report Assets and liabilities Management oversight is critical Dead in the water 4

5 Management Oversight Looks like Timely review Thorough review Sign off Train, train, train The Buck Stops Here!! QUESTIONS, EXCHANGE OF IDEAS 5

6 Resources for information Funds section Bank Reconciliation section Explanation section Actuals You re not balanced until you are TOTALLY BALANCED!! PED CASH REPORT RESOURCES FOR INFORMATION Instructions READ Prior year audit report Reports pulled from your accounting system considering the layout of the PED cash report (after no errors Actuals upload) Rolled up revenue and expenditure reports Grant funds are rolled up to the second digit of the fund number Reports for other transactions Trial Balance report Bank statements and bank reconciliations 6

7 FUNDS SECTION Prior year audited cash balance Revenue Prior year voided checks Expenditures Permanent cash transfers and reversions Total cash Payroll Liabilities Other adjustments Total reconciled cash balance Total outstanding loans Total ending cash BANK RECONCILIATION SECTION Utilize bank statements and bank reconciliations Bank statement ending balance Investments Outstanding checks and deposits Outstanding interbank transfers Includes vendor electronic payments not yet made Adjusted bank balance Clearing bank accounts should be zero Column total must equal cell J169 Description Adjustment amount 7

8 EXPLANATION SECTION Include for all data with * Provide Full Explanation on Last Page after the data request Provide amounts and fund numbers involved Provide explicit explanation QUESTIONS 8

9 ACTUALS Pull an Actuals report from your accounting software and upload into OBMS Ensure your masking is up-to-date An FTE must be included for all account strings After uploading the file, ensure that all errors have been properly fixed prior to actual submission to PED Will require a new file to be generated for upload again until there are no errors Do NOT hardcode Actuals file to fix errors unless absolutely necessary Pull an Actuals report from OBMS reports for the reporting period to ensure it matches the revenue and expenditure figures (fund totals) on the reports pulled from your financial software ACTUALS REPORT 9

10 Errors: Invalid COA Line Invalid COA Line Error COA Line Period Amount YTD Amount FTE Encumbrance , No program code for benefits - fix masking , Requires program code, revise PO if no pay history; otherwise, revise balance of PO and correct expenditure while determining JE date - hard code possibility Invalid COA Line , function 2200 and beyond = no program code; With this YTD of $1, I can assume a prior month correction was made using the amount on the Errors Report and not what was actually paid Invalid COA Line Invalid COA Line Invalid COA Line , Requires a program code, JE expenditure to correct account string , negative in current period which requires hard code , Payment from requires a job class and fte, journal entry to correct job class and add fte to Actuals rpt 1,043 1, Inactivate all erroneous account #'s in your accounting software; restrict access YOU RE NOT BALANCED UNTIL.. The Total Cash for each fund column equals the Trial Balance report pulled from your accounting software Includes Assets and Liabilities OBMS actuals report matches the revenue and expenditure figures in the funds section Bank reconciliation section equals funds section 10

11 IT LOOKS LIKE - School District: AZTEC Charter Name: MOSAIC ACADEMY CHARTER Month/Quarter 06/30/2015 PED Cash Report for Fiscal Year Previous Year 06/30/2014 OPERATIONAL TEACHERAGE TRANSPORTATIO N Report ending date 06/30/2015 FUND FUND FUND Refer to "Instructions for PED Cash Report" for details on how to properly complete this form. Line 1 Total Cash Balance 06/30/2014 +OR- 335, Line 2 Current Year Rev. to Date (Per Receipts Reportexcluding Refunds & including any Deposits in Transit) + 1,341, Line 3 Prior Year Warrants Voided Line 4 Total Resources to Date for Current Year 06/30/2015 = 1,677, Line 5 Current Year Expenditures to Date Enter as a Minus (Per Expenditure Report) - (1,333,806.01) Line 6 Permanent Cash Transfers/Reversions +OR- (2,241.67) * Provide Full Explanation on Last Page Line 7 Total Cash = 341, Other Reconciling Items Line 8 Payroll Liabilities Line 9 **Adjustments - Provide Full Explanation on Last Page +OR FEDERAL FEDERAL LOCAL FLOWTHROUG H DIRECT GRANTS FUND FUND FUND Line 1 Total Cash Balance 06/30/2014 = (3,176.78) = O/S RfR s Current Year Rev. to Date (Per Receipts Report-excluding Line 2 Refunds & including any Deposits in Transit) + 55, Line 3 Prior Year Warrants Voided Line 4 Total Resources to Date for Current Year 06/30/2015 = 52, Line 5 Current Year Expenditures to Date Enter as a Minus (Per Expenditure Report) - (52,745.52) Line 6 Permanent Cash Transfers/Reversions +OR * Provide Full Explanation on Last Page Line 7 Total Cash = management Other Reconciling Items Line 8 Payroll Liabilities Line 9 **Adjustments - Provide Full Explanation on Last Page Line 10 TOTAL RECONCILED CASH BALANCE 06/30/2015 = Line 11 Total Outstanding Loans +OR *** Provide Full Explanation on Last Page Line 12 Total Ending Cash 06/30/2015 +OR

Bank Reconciliation, AP Bank Reconciliation, PR Bank Reconciliation,

12 Hands-on Activity Cash Report Revenue Expenditures Permanent Cash Transfer Bank Statement AP Bank Statement PR Bank Statement Operating Bank Reconciliation, AP Bank Reconciliation, PR Bank Reconciliation, Operating Trial Balance Actuals Revenue Actuals Expenditures Signature Page Cash Report 12

13 BEGINNING CASH Equals the prior year EOY cash report unless the audit report has been released then the audit report numbers IT IS CRITICAL THAT YOU UNDERSTAND THE CASH BALANCE NUMBERS IN YOUR AUDIT REPORT Legitimate conversation with PED when the EOY cash report differs from the audit report: NMPSIA accruals are added back into cash in the audit report Loans If they are simply to cover grant deficit cash balances and aren t recorded in your Trial Balance MANAGEMENT OPPORTUNITIES Budget Analysis mid-year Living Within Our Means Are we collecting revenue at the level budgeted Tax collections Food service and Athletics Are expenditures in line with budget available Salaries and benefit costs Utilities Ancillary costs Legal costs includes potential settlements E-rate collections Projection of subsequent year s 910B-5 CAN BE A REAL EYE-OPENER 13

Current Year Rev. to Date (Per Receipts Report-excluding Refunds & including any Deposits in Transit) + 663, ,682.

Current Year Rev. to Date (Per Receipts Report-excluding Refunds & including any Deposits in Transit) + 663, ,682. Previous Year 06/30/2017 OPERATIONAL TEACHERAGE TRANSPORTATION INST. MATERIALS FOOD SERVICES ATHLETICS NON-INSTRUCT. Report ending date 09/30/2017 FUND FUND FUND FUND FUND FUND FUND 11000 12000 13000 14000