Redbook: 13/14 Findings

KDE Finance Officer Workshop 2015

KDE: Division of District Support• 173 Districts–AFR–Annual Audit Report

Audit Reviews

Management Letter Points/Comments

• We find many extremes as far as auditor scrutiny:– Some districts had 0 Redbook findings/comments– I reviewed one district who had 120 Redbook findings!

Find a Balance

• Nobody is perfect– Always room for improvement

• Can be a teaching moment for those with issues

2013/2014 Findings• Invoices dated before PO date• Bookstores not using the inventory control

sheet• Students not signing the MRF• Gift cards being purchased• Teachers/sponsors not turning in money

collected in a timely manner

• Not obtaining liability insurance• Not submitting an annual financial report and/or budget as

required by the Redbook– Annual Financial Report due to the principal by July 15 for the

previous year ended– Budget Worksheet due to the principal within first thirty days of the

school year or within thirty days of the first transaction of the group

External Support/Booster Organizations

Purchasing Operational Items• Installing mailboxes• Resealing the gym floor• Gas to mow the lawn• New baseball fence• Lighting in the auditorium• Software for curriculum• Two-way radios

Cash Advances

• No receipts attached• Receipts plus change

not adding up to theadvance amount

Staff Accounts

• Staff purchasing food with student generated funds

Transfers• Transfer forms not signed by appropriate

sponsor of the activity fund• Transfer forms not containing an explanation

describing the purpose of the transfer

Signatures• Dual signatures not found on cancelled checks• Vendor invoice missing a confirmation

signature of person receiving the goods or service before payment is made

• Principal not signing bank statement before giving to bookkeeper

Steve.Lyles@education.ky.gov502-546-3930 ext. 4416