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Mt. San Antonio College fo  Web view Mt. San Antonio Community College District. Commercial & Payroll Warrants. Fiscal Accountability Plan Table of Contents. Introduction. 5. I. Governing

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Mt. San Antonio College

Mt. San Antonio Community College District

Commercial & Payroll Warrants

Fiscal Accountability Plan

Table of Contents

5Introduction

5I. Governing Board Actions

5A. Request for Fiscal Accountability Status

6B. Governing Board Designation of the District’s Disbursing Officer

6C. Disbursing Officer Fidelity Bond Amount

6II. Organizational Structure

6A. Organizational Chart

6B. Associate Vice President, Fiscal Services (Formally Director, Fiscal Services) Disbursing Officer’s Job Description

6C. Budget & Accounting Technician Job Description

7D. Disbursing Officer Responsibilities

8III. Fiscal Services Internal Control Procedures

8A. Timely Reconciliation

8B. Management Review of Reconciliation

8C. Removal of Authorized Custodian (Check Signer)

8D. System of Authority

8E. Separation of Duties

9F. Internal Audit Staff

9G. Audit Findings

9H. Rotation of Duties

9I. Employee In-service Training

9J. Review of internal controls

9K. Detailed Records

9L. Credit Card Controls

10M. Custodian of Records

10IV. Commercial Warrant Audit Process

10V. Commercial Warrant Audit Program

11VI. Commercial Warrant Internal Control Procedures

11A. Assumption of Duties

11Mt. San Antonio College will assume the same internal control and operating procedures from the Los Angeles County Superintendent of Schools.

111. Issuance of Duplicate Warrant Procedure

11a) Lost Warrants

12b) Damaged Warrants

12c) Stolen Warrants

122. Outlawed (Stale Dated) Warrant Internal Control Procedure

133. Internal Control Procedure for Reissuing Outlawed Warrants

134. Cash in County Treasury Reconciliation Internal Control Procedure

145. Warrant Issue and Signature Control Internal Control Procedure

14a) Signature and Warrant Micro Code

14b) Warrant Stock Control

14c) Release of Warrants

14d) Assignment of Warrant Numbers

14e) Printing Warrants

14f) Spoiled Warrants

15g) Verifications

15h) Voided Warrants

156. Paid Warrant Retention Internal Control Procedure

177. Warrant Stock, Order, Security Internal Control Procedure

17a) Ordering of Warrant Stock

17b) Retention (Physical Security) of Warrant Stock

17c) Security (Control) of Warrant Issued and Retained

18B. Commercial Warrants Internal Control Procedures

181. Policy & Procedures

182. Access to Purchasing Software

183. Purchase Authorization

184. Purchase Data Integrity

185. Budget Validation

186. Purchase Approval

187. Approval Threshold

188. Requisition Review

199. Special Events and Activities

1910. Appropriation Transfers

1911. Budget Revisions

1912. Cost Review

1913. Purchasing Approval

1914. Bid Process Procedures

2015. Proof of Competitive Pricing

2016. Purchase Order Issued

2017. Verification of Receipt

2018. Purchase Order Info Access

2019. Fixed Assets Identification

2020. 3-Way Matching Process

2021. Mathematical Accuracy

2022. Change Order Review & Procedures

2123. Supporting Documentation Retention

2124. Invoice Report Approval

2125. B-Warrant Audit

2126. Audit Guidance

2127. B-Warrant Authorization

2128. Warrant Issued

2129. Warrant Control

2230. Signature Plate Security & Control

2231. Bank Statement Reconciliation

22C. Assumed Budget Authority operating internal control procedures from the Los Angeles County Superintendent of Schools:

221. Budget Development and Monitoring

222. Budget Authority Review Procedure

23D. Assumed cash control operating internal control procedures from the Los Angeles County Superintendent of Schools:

231. Cash Control Procedures

232. Cash Clearing Procedures

233. Revolving Cash Procedures

23VII. Payroll Warrant Internal Control Procedures

23A. Payroll Processing

231. Payroll Payment – Academic Employees (EC 87821 & 87822)

241. Reissuance of “ damaged and spoiled” payroll warrants

24B. Direct Deposit

24C. Garnishments

25D. TSA (Tax Shelter Annuity)

25E. Retirement Reporting

26F. Direct Interface to Banner Financial System

26G. New-Hire Reporting to EDD

26H. Replacement Warrants

26I. W-2 Generation

26J. Quarterly Reporting – EDD

27K. Social Security / Name Match

27L. Payroll Tax Payments

27M. Cost of payroll warrant stock

27N. Issuance of Payroll Warrants

27O. New Hire Approvals

28P. Position Control

28Q. Separation of Duties

28R. Authorizations

28S. Payroll Registers

28T. Account Distribution

28U. Payroll Expenses

28V. Federal & State Reporting

29W. Garnishment Deductions

29X. Check Release to Third Party

29Y. Unclaimed Payroll Checks

29Z. Payroll Deductions

29AA. Security Access

29VIII. Data Processing Internal Control Procedures

29A. Adequate Data Processing

29B. Data Backups and Data Recovery

30C. Data/System Security

30IX. Education Code 85266/85266.5, Community College Fiscal Accountability (Appendix J)

31X. Appendix

Introduction

Mt. San Antonio College (District) is requesting fiscal accountability status to assume statutory and legal responsibilities, as specified in California Education Code 85266 & 85266.5 (Appendix J), of the County Superintendent of Schools with regard to the approval and examination of District warrants and accounts.

The Fiscal Accountability concept was designed to provide an alternative to the present pre-audit process required by the county superintendent of schools in the review and approval of the District’s financial transactions.

Mt. San Antonio Community College District is requesting “Full Accountability”- Commercial & Payroll Warrants. The District would issue both payroll and commercial warrants directly against the County Treasury.

The assumption of “Fiscal Accountability” permits recognition of District’s competence, minimizes duplication of effort between the District and the Los Angeles County Superintendent of Schools, and grants increased control at the local level, while maintaining adequate safeguards over the expenditures of public funds.

PERIODIC REVIEW

In accordance with Education Code 85237.5, the County Superintendent of Schools will audit the expenditures and internal controls of school districts which have been granted Fiscal Accountability and may revoke Fiscal Accountability at any time upon determination that the District’s financial or management controls are inadequate. The Governing Board must notify the County Superintendent of Schools of proposed actions on the findings and recommendation after receipt of such findings and recommendations. The Periodic Review performed by the County Superintendent of Schools may consist of, but is not limited to the following:

· Review of the Annual Audit Report

· Discussion with the District’s Auditor

· On-site visitation by the Los Angeles County Superintendent of Schools for further review of the District’s Financial Transactions

· Recommend changes to the Fiscal Accountability Plan

The extent and frequency of the Periodic Review will be determined by the Los Angeles County Superintendent of Schools.

I. Governing Board Actions A. Request for Fiscal Accountability Status

On August 27, 2008, the District’s Board of Trustees formally approved the submission of an application on behalf of the Governing Board and the College President/CEO to the Los Angeles County Superintendent of Schools requesting Fiscal Accountability Status, effective July 1, 2009.

Board Agenda Item: Request for Fiscal Accountability Status (Appendix A)

Completed and signed Fiscal Accountability Application (Appendix B)

B. Governing Board Designation of the District’s Disbursing Officer

The District’s request to implement fiscal accountability from the Los Angeles County Superintendent of Schools for both commercial and payroll warrants pursuant of Education Code 85266 - Warrant for District Expenses is contingent on the District’s designation of a Disbursing Officer. The District’s Governing Board designates this position. The position description for the District’s current Associate Vice President, Fiscal Services has been revised to include the Disbursing Officer functions of the District.

The District’s Governing Board designated the position of Associate Vice President, Fiscal Services to include the District’s Disbursing Officer functions at the February 22, 2008 board meeting.

Board Agenda Item: Designation of Disbursing Officer (Appendix C)

C. Disbursing Officer Fidelity Bond Amount

1. The Disbursing Officer authorized by the Board to issue warrants pursuant to Education Code section 85266 would execute an official bond in an amount fixed by the Board conditioned upon faithful performance of his/her duties under this section. Fidelity Bond Amount $1,000,000.00 is the current fixed amount.

2. Coverage is provided by ASCIP. (Appendix D)

II. Organizati

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