ASBSD/SASD 2013 COMPLIANCE AND OTHER

MATTERS

Rod Fortin—Director of Local Gov’t Assistance Department of Legislative Audit300 S. Sycamore Avenue, Suite 102Sioux Falls, SD 57110-1323ph. (605) 367-5810rod.fortin@state.sd.us 1

OUTLINE ANNUAL REPORTS AUDITS CHARGING OF FEES BUDGETS BID LIMITS SURPLUS PROPERTY FEDERAL COMPLIANCE

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ANNUAL REPORTS 13-8-47. Annual report to department--Contents, filing, and

auditing--Past-due reports Before the first day of August every school board shall file an annual report with

the Department of Education. The report shall contain all the educational and financial information and statistics of the school district as requested in a format established by the Department of Education. The business manager with assistance of the secretary of the Department of Education shall make the annual report, and it shall be approved by the school board. The business manager shall sign the annual report and file a copy with the Department of Education as provided in > § 13-13-37. The division shall audit the report and return one copy to the school district. Reports not filed prior to August thirtieth are considered past due and are subject to the past-due provisions of > § 13-13-38.

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ANNUAL REPORT FORFEITURE OF FUNDS

Per SDCL 13-13-38… if complete and accurate information is past due according to the reporting dates specified in SDCL 13-8-47, the secretary of the Department of Education on August thirtieth shall declare the school district to be fiscally delinquent. The school district, unless granted an extension, shall forfeit from its entitlement one hundred dollars for each day that the data is past due for seven days and two hundred dollars for each day past due thereafter starting with the eighth day.

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AUDITS Audit timetable –

Governing board selects an audit firm Engagement letter sent to DLA for approval Auditor performs audit Audit report draft sent to DLA for approval Final payment may be made to audit firm

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AUDITS Most schools have annual audits but you may

elect to have a two year audit Entities with over $500,000 of federal funding

must have audit completed within 9 months Engage your services early so that a timely

audit may occur DLA maintains a “Locate an Auditor”

function on its website

CHARGING OF FEES School Districts are encouraged to seek legal

guidance when charging for “for credit” classes. SDCL 13-28-5 states “…privileges of the public schools of any district shall be free to all persons with school residence within the district until they complete the secondary school program or until they reach the age of twenty-one.”

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CHARGING OF FEES School needs to identify under “what

authority” is the charge being assessed. Governing Board needs to be involved in the

establishment and approval of fees. Evaluation of fee based programs should be

done to determine the amount of non-fee support required.

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CHARGING OF FEES 2012 Legislative Session provided an

allowance for school districts to charge a fee for “before and after school programming” (SDCL 13-8-50)

Schools districts are required by SDCL 13-8-50.1 to account for the revenue and expenditures for such a program in an enterprise fund (Fund #53)

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CHARGING OF FEES Fund #53-Other Enterprise Fund—fund used

to account for multiple programs (daycare, before & after school, etc.) School should be able to “track” both the revenue and expenditures of each program.

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CHARGING OF FEES Statutes Allowing Districts to Charge a Fee

SDCL 13-8-39.2 daycare for children of enrolled students SDCL 13-8-50 before and after school programming SDCL 13-24-21 parking fee SDCL 13-28-5, amended in 2012 to include early

childhood services SDCL 13-28-35 adult programs SDCL 13-29-19 bus transportation < 5 miles

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BUDGETS STATUTORY DATES

Proposed Budget—Regular Meeting in May Published—Not later than July 15th/ with Notice of Budget Hearing held before Aug 1st

Approve Budget before October 1st

By “resolution” adopt levies Changes from proposed to final budget shall be

published in minute within 30 days of adopting final budget

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BUDGETS The Budget is one of the most IMPORTANT

documents governing financial transactions of any government as it represents the Master Financial Plan of the school district.

It is the governing board’s responsibility to adopt a budget for all funds except trust and agency funds.

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BID - LIMITS

$25,000 for supplies or services

$50,000 for any public improvement

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BID - APPLICATIONS Multiple purchases – Aggregate for FY Installment payments – focus on contract Trade-in ---value of what you are acquiring Piecemeal – breaking down a project

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BID - DEFINITIONS Public Improvement – the process of

building, altering, repairing, improving or demolishing any public infrastructure facility, including any structure, building, or other improvements of any kind to real property

Supplies – any property, including equipment, materials, and printing;

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BID - EMERGENCY When there is a threat to public health,

welfare or safety or for other urgent or compelling reason

Bid notices are not required Consider rentals Declaration in minutes Procurement must be made with such

competition as practicable

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BID - EXEMPTIONS Federal surplus property Purchases from (any) other government From the state price list Local vendor matching the state price list Real estate and auction services Legal, audit, architectural, insurance

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BID - EXEMPTIONS Transportation of students (5 yr limit) Computer software Communication technologies, computers,

peripheral equipment and related connectivity Perishable or unprepared foodstuffs Raw materials used in construction or

manufacture of products for resale May buy off of GSA contracts

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BID - BONDING Bid bond – 5% cashiers or certified check or

10% bid bond ---provided by each bidder Performance bond – in the amount of the

contract----provided by the winning bidder Bonding is only “required” for construction

contracts

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BID - OPENING Two notices – first notice at least 10 days

prior to the opening Bids may not be faxed – must be sealed Bids received “late” should not be considered Board has 30 days to accept or reject all bids

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BIDS – FUEL (SDCL 5-18C-6) Not required to publish two notices Shall contact and attempt to obtain 3 quotes Record of the names of suppliers, quotes received,

and the procurement procedures used in purchasing shall be documented, noted in the minutes, and retained on file by the governing body.

May include a procedure for adjusting prices to meet changing market conditions not within the control of the vendor

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SURPLUS PROPERTY Auction –

Declare surplus Two notices, first notice 10 days prior auction An appraisal is not required Hold the auction Governing board members may buy at an auction

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SURPLUS PROPERTY Sealed bid process –

Declare surplus Appraisal by three property tax payers $500 or less -

Public or private sale without notice

Over $500 Two notices May award to highest bidder

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SURPLUS PROPERTY Proceeds of a sale may be placed into the

General Fund, the CO Fund or if it is a food service item, into that fund

Real estate may also be sold through a realtor Governing board has the right to accept or

reject any sale

FEDERAL COMPLIANCE A-133 Single Audit

When a school district expends federal awards (either direct or indirect) in excess of $500,000 they are subject to the provisions of OMB Circular A-133.

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FEDERAL COMPLIANCE Audit Scope and Objective of an A-133 Audit

Conducted in accordance with Generally Accepted Government Auditing Standards (GAGAS)

Covers entire operations of the entity Financial statements are presented fairly Adequate internal control structure Compliance with laws and regulations Follow-up on prior audit findings

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FEDERAL COMPLIANCE Auditor’s Requirements

Obtain SEFA from School District Complete Risk Assessment/ Determine Major

Programs Test Major Programs Test Compliance with Grant Regulations and

Effectiveness of Internal Controls Develop Reports on Compliance and Controls

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FEDERAL COMPLIANCE Entity’s Requirements

Schedule of Expenditures of Federal Awards (SEFA)

Data Collection Form Status of Prior Findings Corrective Action Plan Filing Reporting Package with the Clearinghouse

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