Four Common Audit Findings & How to Avoid Them
By Gasper Magallanes, Senior Director of Client Management & Development, EdTec
Originally published May 2015
Whether you’re a new school leader or a veteran, a good audit comes down to knowing what to expect, the preparation put in months in advance, and the follow through during the audit and afterwards. Summer’s around the corner, but audit season pops up before you know it. As you’re going through your pre-audit checklist this summer, here are a few common audit findings to keep front of mind. Touch base with your auditor ASAP if any of these hit too close to home and you need a refresher on best practices!
One of the most common audit findings is for missing documentation such as back-up for expenses or deposits (e.g. receipts, invoices, check copies). Make copies and keep them.
Shortcutting AP Processes or Approvals
From opening mail to signing checks, controls need to be in place to ensure all expenditures are properly approved prior to payment.
Inadequate Tracking of Restricted Funds
Allocating funds to non-allowable costs or failing to record required budgets, board policies, and reports is a quick way to earn a finding on state or federal program funds. Stay current on funding requirements and restrictions.
Letting Checks Languish
Making deposits in a timely manner is important for preventing fraud, not to mention paying bills on time. Deposit cash and checks as soon as possible after receipt.
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