Oklahoma Cooperative Extension Service New County Extension Directors

Oklahoma Cooperative Extension Service New County Extension Directors In-Service Suzanne Mc. Natt Extension Finance May 18, 2011 1

Agency Bank Account. Overview Agency Account Responsibilities Agency Account Income Agency Account Disbursements Agency Account Transfers Monthly Reconciliations Audits: Periodic & Unannounced 2

Agency Bank Accounting Policies & Procedures for OCES Agency Funds, Revised November, 2006 http: //intranet. okstate. edu/ On the left, type “accounting” in the search box. Choose “Accounting Policy & Procedure for Agency Funds” from list. (is a Word Document) 3

Agency Acct Responsibilities Who is responsible for what? The CED is responsible for the agency bank account Tasks may be and should be delegated, but the responsibility can not be delegated CED should be the overseer More than one person should be involved 4

Agency Acct Responsibilities One bank account only CED is the only authorized signer 5

Agency Account Income What money has to go into the agency account? If it comes into the office or if staff are handling money as part of their job, run it through the agency account. 6

Agency Account Income This may include “in & out” money being held for others Fairboard rental money, carnival money, etc. Stock show-pre-entered at fair, livestock premium sale money Sales of HCE cookbooks, 4 -H Club t-shirts etc. Membership dues for HCE groups, Cattlemen’s Assn, 4 -H groups 7

Income – Receipt of Funds Issue an official OSU receipt for all income – Except for publications costing < $1. 00, which are receipted in total on a daily basis Receipt must be issued to person remitting the funds Date on receipt must reflect date funds were received Retain yellow copies & voided white copies in receipt book 8

Income – Receipt of Funds Receipt # from official OSU receipt should be documented on – Soil Logs (there is/should be a column for that) Deposit Register 9

Income – Depositing Funds The CED is Responsible for Making the Deposit – May delegate Segregate duties where possible Mandatory 5 consecutive days Annual Leave 10

Income – Depositing Funds State 7. 1 – Law, Statute 62 Okl. St. Ann. § Within 5 days of receipt -OR By next business day if cumulative un- deposited funds is $100 or more… WHICHEVER COMES FIRST 11

Income – Depositing Funds -OR – As directed in your last Audit: Due to non-compliance, your office may have been instructed to deposit twice a week, in addition to… By next business day if cumulative undeposited funds is $100 or more… WHICHEVER COMES FIRST 12

Income – Depositing Funds Essential - Have a Backup Plan For: Busy times such as Fair, where only one person may be holding down the office Times when personnel are on annual leave Unexpected absences 13

Income – Depositing Funds Deposit Register: Shows the detail of each deposit Should match receipts Review it – Reasonable/Reality Sign or initial it 14

Agency Fund Disbursements should: – As CED you Review the supporting documentation of the disbursement. This is what gives you the authority to sign the check. 15

Disbursements - Outside Groups Note about handling the payout of funds for activities and obligations of outside groups (e. g. HCE, Cattlemen’s Association, Producer Associations, Fairboards) Do not spend their money for them Remit the funds you collect for them to them Have an agreement regarding how often you remit their money to them 16

Disbursements – Employee & others Reimbursements An Agency check may be used to reimburse staff & others for items they purchased, provided: Infrequent and for legitimate reason Prior approval Original, itemized vendor receipt-no exception Note-volunteer travel is handled differently Note- Employee travel must be reimbursed on a travel claim/voucher 17

Disbursements – Speakers & Independent Contractors An Agency check may be used to pay up to $600 annually to Independent Contractors Determination-Independent Contractor Form 20 -Factor Test Invoice If amount > $600 then…… 18

Disbursements – Speakers & Independent Contractors For Speaker/Independent Contractor Payments over $600 – Send to OSU: Determination-Independent Contractor Form 20 -Factor Test Invoice Agency check to OSU Extension Finance 19

Disbursements – Speakers & Independent Contractors Note – part-time or one-time office help is NOT considered to be an Independent Contractor situation Note – OSU employees cannot provide “independent contractor” services on the side to the office. 20

Agency Account Refunds to individuals must have supporting documentation – Ex. Written request from participant unable to attend program, or a memo on office letterhead communicating the cancellation of a workshop and thus returning registration fees. Reference to the receipt # and the deposit # of the original funds received should be part of the backup documentation for the refund check. 21

Agency Account Transfers What transfers can be/should be made between categories Transfer residue at end of program to maintenance category Transfer amount not needed for current expenditures in soil testing and publication categories to the maintenance category periodically 22

Agency Account Transfers (Continued) – If have several 4 -H categories, may transfer among the 4 -H categories Document transfers with a memo to the file 23

Agency Account – Monthly Reconciliations CED is responsible for the reconciliation between the bank statement & the checkbook – If delegated, the CED must review & initial Reconciliation & reports due to District office within 10 days of statement date Segregation of duties…. Due care 24

Agency Account – Audits & Reviews Audits are performed periodically of the financial, inventory, County, Soil, leave and other records Reviews of cash/bank activity and change funds are also conducted on an UNANNOUNCED basis. 25

Agency Account – When in doubt about how to handle a transaction 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 Mc. Natt (405) 744 -9697 26

In Closing Questions? 27