“Audit” is a 5-letter word that sends shudders to many individuals both in the education and corporate world. A panic erupts, as the individual must quickly gather the required documentation in a short span of time.
Regrettably many schools, districts, and other educational organizations are ill prepared for the audit. This is because educators often feel that they are “too little to be noticed” or that only the “bad schools” get audited. Unfortunately, in this age of accountability the prospect of being audited has increased exponentially. With this in mind, the following are a few guidelines to consider:
1. Keep good records- Every purchase order should be printed (or documented electronically) and should include a copy of the invoice and related documentation. Related documentation may include Professional Development Agenda, Attendance Sheets for Professional Development, and a description of materials that are purchased. A good practice is to have an administrative assistant to create folders for each funding source or school month and create a backup copy of the relevant documentation.
2. Stay away from food; especially catered food- Auditors hate when schools purchase food; especially if it is for a social gathering. If you insist on purchasing food, make sure the food was purchased as part of a professional development gathering, and that you can include documentation to justify the purchase. It is also a good idea to use a contracted vendor for food purchases and make every effort to keep the cost of food inexpensive.
3. Stay away from hotels- Auditors will question why a school needed to hold a school based professional development outside of the school and incur an unnecessary cost. Obviously, major professional development initiatives sometimes call for the use of hotels. If you choose to expense the hotel on the school’s dime, prepare the appropriate justification and documentation to support this need.
4. Do not buy sanitary napkins or postage materials with professional development funds- Simply put, one cannot co-mingle professional development funds to cover other costs. For example, one should not purchase computers for the office with money that is slated to offer student tutorial services. A good rule of thumb is to review the intent of the funding source and use funds only for the expressed purpose. If you are unsure of the funding purpose check with your district or appropriate official.
5. Avoid Flashy Technology- In these austere times; auditors are suspicious of schools that purchase plasma screens and other high tech gizmos. If schools need to purchase these materials, they should have documentation that supports the need for the said equipment. For example, if a school wishes to purchase a television studio equipped with high end Avid equipment it should be mentioned explicitly in the grant application, the School Comprehensive Education Plan, or other relevant documents.
6. Always follow the grant’s intent- If a grant states that teachers will receive 20 days of professional development centered on the Common Core Standards, it is incumbent upon us to implement this plan. We should never view the grant as our personal piggy bank and spend the money as we please.
7. Good Payroll Records Matter- Payroll records should match the dollars that school personnel are paid. For example, if a pedagogue charges 20 hours to the school, the documented record should reflect this charge. Records should also include required approval signatures.
8. Know your equipment well- Auditors love to pull a laptop or a mobile device for an audit. Make sure that the laptop or mobile device is in a secure location. If it is in use, you should know its location. If the equipment is being used off-site and off-site utilization form should document its whereabouts.
9. Good Bank Account Records are Critical- Many schools hold book fairs and other charitable events during which funds are collected for the local school bank account. A journal/ledger should document the collection and transfer of funds into the school account. Similarly, the journal/ledger should document how funds are used to cover school costs. One should also remember that school-bank accounts often have specific purposes. Make sure the bank account is used for the expressed purpose.
10. Text Book Inventory- Much like the equipment inventory, the textbook inventory should be complete and include new purchases. An annual physical inventory should be conducted thereby assuring that written records match the physical inventory. The inventory list should also include model, serial number, and funding source.
Final Thoughts- The following guidelines were developed to help schools, districts, and educational organizations avoid common bookkeeping mistakes. Having said that, one should check always check with their district or appropriate official for further guidance on this subject. If you have other suggestions, questions, or comments, feel free to share your thoughts.
31 comments:
It is important for teachers and administrators to maintain good records. Whether the funds are being used for professional development or for new school equipment, schools should be able to provide documentation of all their spending. This will ensure that the funds are being used for appropriate materials, equipment, and pd. G. Torres
Organization and keep it to business. Records are so important. Invoices and purchase orders should indicate what why purchased. It would be a good idea to know why these items were purchased. So many things can be purchased or written up as one thing but really for more personal use. Having to say how and what purchases were used for may help to keep those in line, purchase for the right reasons.
Food and hotels are a luxury. Technology bought should be reasonable and not flashy as you said. Why should a school need fancy things anyway. Simple models work just fine.
These guidelines are a great for school to follow.
Vanessa McMellon
I am not familiar with bookkeeping in school systems; however, I agree that any schools, districts and organizations should be fully ready to be audited anytime. Therefore, it is a great idea to follow the ten tips as the article mentions. Thank you for making a highlight on this important issue. Keiko Shari
I found this article to be very informative. You brought up many great points that I would have never thought that an auditor would be looking for. I knew that they would want to verify what was purchased, but did not know that they would dissect the reasoning behind different purchases.
Marlon Campbell
These are great tips for someone who has the career goal of Principal. Most charter schools have a business model where teams of people are assigned the role of keeping the school financially sound. This alleviates some of the financial responsibility from the Principal.
I never thought of these things. Now reading this, it does make sense that all money spent should have records. There is no need to buy expensive lunches or to hold off site PDs. I also did not think schools would spend grant money on things other than what it was intended for. That is a very good point, I hope school are not doing that.
Kimberly Braga
These ten tips are great. As a principal you should read these tips and use them. I agree with all of them especially the ones that state you shouldn't be spending money on hotels or catering food. Our economy right now is bad and schools should not be spending the money they have on things that are not necessities. It should be applied to educational material and other things that could help make your school a better one.
Nancy Mandarino
This is a useful list that can help eliminate some of the anxiety and nerves associated with being audited. What I appreciate about this blog is that it encourages schools to be proactive and to plan, and think ahead for a possible audit. These are great practices for staying organized and prepared.
Nitzeida George
I think these guidelines are very useful for avoiding mistakes. Although I do not know much about the audit process, this post gave me an insight on the important aspects of good bookkeeping, and common mistakes to avoid in order to have a successful audit. I especially like: #6, "always follow the grant's intent". I'm not sure if there are many schools that do not follow this, but I think it is vital to use the grant for the purpose it was intended for. With proper book keeping and account records, it should be relatively easy for a school to prove that they did this.
Christina Ferrara
As a teacher, I never give thought to audits. But I would assume it is good practice and essentially necessary for administrators and/or their assistants to keep good records of their purchases and pay attention to where textbooks and computer equipment exist.
I also never thought of the fact that schools may use money to purchase personal items, but I guess it may happen. However, it would cause major problems with the school board if this was found out. Great tips.
Ayesha
You are quite knowledgeable on many different topics that must be considered to help a school run efficiently and correctly. It is nice to read all of your posts on the many ways schools can ensure that the best and most appropriate actions can and will be taken. This is something I have never had to think about, but I am aware of its importance. There are so many things to consider in order to make sure that everything is up to code in your school. If I ever become involved in a schools audit preparation or take part in the actions necessary to make sure it is "audit proofed," I definitely have/know of one resource I will visit again!
Courtney Weiner
Keeping good records is ideal for schools, corporations as well as individuals. They say individuals should hold onto seven-ten years worth of documentation for the IRS. Organizing the information into folders is a great idea. It makes it easier to find and it minimizes the chance of you losing it.
I wasn't aware that auditors frown on schools catering events but it make since given that catering can be very expensive. For the same reason, I can see why auditors would also frown on schools using hotels. They're also expensive and schools already have a building where they can hold workshops and conferences.
I understand why schools that are run on tax dollars or special funds have to make sure they use the funds in the way that they are meant to be used.
I’m not very familiar with school audits, since my role as a teacher does not go too far beyond the classroom. However, our school’s accountant is on top of her game! When I take something from the school supply room as little as chart paper, I have to sign a form stating that I received chart paper. I also have laptop computers, an overhead projector, and Leap Frog Pads in my classroom and each year, the school aid would come in and make sure that I have all these items in my inventory and I have to sign for it. My principal very rarely orders food for the staff. He usually does it only once or twice a year and it is incorporated with Professional Development. Our school, thankfully, sticks to the budget criteria. Every dollar is accounted for and used accordingly (I assume).
Alla Priemyshev
Keeping good records is something I feel every teacher should do. It is very important. Keeping good records will protect yourself. Notes on students, and grades are two very important things you need to keep record of. If parents question their child's grade you can pull the fill and there will be no argument as to why the grade is what it is.
This article reminds us that education itself is also a business and it is important not to lose sight of the little things that may get passed over. Tips such as making sure to not use monies intended for one purchase not be used for overlaying, non-related purchases is great because this probably happens more than you realize. The whole theme of this blog though really hits home that even though educators might only want to view their field as a way to reach children and prepare them for a bright future, there are business things to consider in this pursuit that cannot be ignored.
Stella Gindel
Ten ways to audit proof your school, district or educational office. This is very helpful article because districts shouldn't be afraid to be audited at anytime if they do not have anything to hide. In case they are, for future references they can follow your ten tips.
It is very important for schools to keep accurate records of all their activities. Board of Education or School District Auditors are very strict when they examine and review records of school activities. If anything is not the way it is supposed to be, schools are in danger of being penalized and losing much, if not all of their government funding.If schools want to ensure a quality education for all their students, it is essential that they maintain accurate, correct and transparent records of all their educational as well as financial activities.
Chaya Dusowitz
Raisa Mykho
"Ten Ways to Audit Proof your School, District, or Educational Office" is about respect and value of the teacher and students.The quality of education depends on it. But why is it so difficult to maintain these 10 ways?
These ten tips were very clear and concise. The bottom line is honesty and clarity. When a school is honest with all its actions and clear in its records it should not run into problems. The problems only occur once the actions are shady and not clear-cut. It is so important for every school to have an accountant/bookkeeper who is on top of every purchase.
Audits are horrible for everyone. At my job, each teacher is in charge of keeping their staff development folder in order. There is absolutely no money in the budget for fancy catered lunches. Sandwiches from Key Food are our catering budget. A few years ago, the daycare gave use some funding from one program to help pay for the extra aids hours in the summer that was desperately needed at that time. As a result, they lost the program funding. There’s a lesson here, even if you do something with good intentions, it can be still wrong timing. I strongly agree that always documenting what you brought and why for the business is a good habit to have.
I work in social services and we get audited and have deadlines t input our data. I agree that schools and organizations, although it can be challenging, they should be ready to be audited sporadically. Ten tips are a great idea and guide.
Excellent points are mentioned in the article. In general, it is always a good idea to be prepared and have all your ducks in a row. The guidelines mentioned in the article really allow for school administrators and staff to see the importance of somethings versus the exclusion of others. There is clearly a lot of experience that comes with this article and it is a great asset to anyone who is looking for good standing in the school environment.
I never though of the details of school funds. This article brought up a lot of good points. Even if a school isn't audited, its important to keep track of all purchases, so it won't be a question as to where all the money went.
I never though of the details of school funds. This article brought up a lot of good points. Even if a school isn't audited, its important to keep track of all purchases, so it won't be a question as to where all the money went.
Here are written 10 great tips to keep auditors off your back. Schools should implement these tips, and have each administrator be in charge of certain expenses and have them document everything they use school money for. Even if your school does get audited it would be no problem because everybody would be responsible and liable for the things they take care of.
I haven't thought about where school funds go previously. As a substitute teacher it is not something that has been brought to my attention. All of these tips seem like great tips. Not only for schools, but personally. You should always keep records of what you buy in case something happens to it. For schools though it is especially important. At the end of the year principals should be able to know where their money from the school year has gone and how much is left. These are all great tips for administrators. These tips can not only help administrators keep track of what they are spending but they can also help administrators save money in the long run. So they don't over spend on certain things.
-Angelique Ramsing
It is good to be knowledgeable of how to manage and appropriate funds. Administrators and teachers need to be careful when spending money allotted for specific purposes. Teachers and administrators should maintain good record keep records and justifications not only for audits but also for professional checks and balances.
EDSN 650
Hyunsook Chung
I think that auditing is important in various area especially in food, school supplies, and other areas of wasting. In the school where I work, I always feel that people throw a lot of good stuff at the end of day. For example, wasting food in cafeteria during breakfast or lunch. Also, a lot of books or unused class supplies such as half used pencil, erasers, notebooks, and many more are thrown out at the end of each year. I think, it is important to keep inventory to find if there is any wasting with this reason, I think auditing is necessary for all schools. It would be great to go to observe or attend to seminars to learn how other countries deliver school lunch and check for the amount of waste each day. For example, in Korea, the students serve the lunch for their friends in elementary. When the students takes the amount of lunch they have to finish, because of that most of students will take the amount that they can eat.
As a result, I agree with the article that someone should check every school if they are doing the right things or needed extra support.
Schools depend on many different ways to which money/ funding is depended on. Its from my experience working in the NYCDOE I have seen school audited and lose funding due to records/ proof of necessary documentations. I feel its very important that schools stay up to date with documentation and records for the use of proof. This will eliminate auditing or any kind. I thought the reading ten ways to audit proof your school, district or educational office was a good read, I do agree with some of the points listed and would recommend others to read as I thought some points where very helpful.
The principal of the school that I work at always tells the teachers to be "audit ready." She tells us to always keep good records and consistently update our bulletin boards/classroom environment. I believe that her intention is the reduce the stress that occurs when being audited, but for me, it has the opposite effect. After experiencing an audit for the first time last year, I now feel the pressure of being "perfect" all the time just in case we get audited again. Although audits are often more stressful for the administration, I believe that this pressure to be perfect is passed down to the teachers, too. Many of these tips seem to be catered to the role the administration plays in the school, but are still helpful for all-around "audit ready" practices. Since schools are run on tax dollars and special funding, the city and state must ensure every dollar is used appropriately. Audits are important to keep schools accountable.
I agree with the Author. I think that it's important for teachers are prepared to be accountable. I Think that though most teachers may not think that they would be held accountable for large school expenses, they are responsible for purchases made for their classroom. Being prepared for a possible audit helps to prevent waste of resources.
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