Roles/ResponsibilitiesTreasurers and Encumbrance

ClerksKatherine Black, Executive Director

Financial Accounting/OCAS/AuditingOklahoma State Department of Education

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Roles/ResponsibilitiesTreasurers and Encumbrance Clerks

• Encumbrance Clerk – Roles/Responsibilities• Audit Findings• Training Requirements• Child Nutrition Loan Agreement• Reference Publications• End of Year Reports• Ethics• Frequently Asked Questions

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Surety BondsEncumbrance Clerk and Treasurer

• Must be executed BEFORE any duties are performed!

• “Blanket” or position bonds must list the amount for the specific position.

• A financial officer must have a surety bond of not less than $100,000.00

O.S. § 70-5-116a

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Surety Bonds - Treasurer

• Estimated amount on hand at any one time during year but not less than $100,000

• Not greater than required by county treasurer of resident county

• Function 2313, Object 525

O.S. § 70-5-115

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Surety Bonds – Encumbrance Clerk

• Not less than $1,000.00 • Function 2511, Object 525

O.S. § 70-5-119

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Surety Bonds

• Minutes Clerk – Not less than $1,000.00• Function 2312 Object 525

O.S. § 70-5-119

• County Treasurer – Does not require an additional bond.

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Treasurers• All districts require a treasurer.

• Employed –• Function 2313, Object 100 & 200 Series

• Contracted (Independent Contractor) –• Function 2313, Object 310

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Treasurer

• Must be a resident of the state.• Cannot be employed as the encumbrance clerk of the

same school district.

• Cannot serve as a school board member of the same school district.

• May serve more than one school district.

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Treasurer• The primary responsibility of the school district treasurer is to

receive and disburse monies of the district as provided by law and to maintain an accurate accounting of such receipts/disbursements.

• The treasurer must adhere to the following principles and procedures and classify all receipts according to Source of Revenue from the Oklahoma Cost Accounting System (OCAS) as provided for operation of local treasurer’s office of the school district . . .

70-5-159• Ensure that warrants shall show warrant number, fiscal year

and fund against which the warrant is being drawn.

• Code all receipts using OCAS

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Treasurer• Keep the following computerized records based on the

following format:Treasurer’s General Ledger Treasurer’s Cash Ledger Treasurer’s Investment LedgerTreasurer’s Warrant Ledger Treasurer’s ReceiptTreasurer’s Check Bond RegisterDeposit BooksOther records as may be deemed advisable or useful

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Treasurer

• Maintain adequate files of:Paid and Voided WarrantsPaid and Canceled Bonds and CouponsBank and fiscal agency statementsDirectives from the County Clerk or County Excise Board affecting the district’s appropriation balancesOSDE allocations of State and Federal AidBoard resolutions, letters, memos, or other supporting data pertinent to the district or treasurer

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Temporary Appropriations

• Completed before July 1• Must be approved by the county excise board.• Anticipated General Fund and Building Fund revenue• Basic operating budget until Estimate of Needs is

approved

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Estimate of Needs (EON)

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Estimate of Needs (EON)

• Upload in OCAS on or before October 1 – Excise Board approval not required

• Financial Statements of the previous fiscal year• Appropriations for the current fiscal year • District Valuations

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Supplemental Appropriations

• Revenue not included in the original appropriation (EON)

S.A.&I. 307 – State Aid and/or Federal Money

S.A.&I. 308 – Cash Funds

S.A.&I. 150 – Local Money

• Should have approval before expended.

• May be filed until September 30

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Encumbrance Clerks

• Must be a district employee

• Cannot be employed as superintendent, principal, treasurer or assistant treasurer, instructor, or teacher.

• Cannot be a board member

• May serve as minutes clerk

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Encumbrance Clerks

Maintain Appropriation and Encumbrance Ledger

Determine that encumbrances do not exceed appropriations and are for purpose of appropriation charged

May complete purchase orders

Transmit warrants to vendor(s)

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Encumbrance Clerks

Keep a supply of approved purchase order blanks and warrant blanks

Keep a copy of the district’s Temporary Appropriations

Keep a copy of the district’s Estimate of Needs

Keep a copy of the district’s Supplemental Appropriations

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Encumbrance Clerks

Keep the following original documents for all purchases:

• Purchase Request or Requisition

• Purchase Order

• Invoice

• Billing Statement

• Payment Information

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Child Nutrition

• Deposited in an appropriated fund –General Fund (11) or Child Nutrition Fund (22)

• Cannot be a separate bank account –Exception: local collections in School Activity Fund (60)

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Audit Findings

• Invoice dated before the purchase order• Invoice not signed confirming receipt of goods or

services• Backup documentation is missing• Purchase order missing

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Audit Findings

• Purchase order not signed• Purchase order not approved• Paid from a statement rather than an invoice• Math inaccurate

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Training Requirements

• New to position –

Within nine (9) months of first day of employment every encumbrance clerk or treasurer shall complete at least twelve (12) hours of approved instruction that meets all of the requirements

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Training Requirements

• Continuing Education –

Complete twelve (12) hours of approved continuing education instruction every three (3) years from the date of initial employment in the position

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Training Requirements

• Subject requirements are as follows:

• School Finance Laws of the State• Accounting• Ethics• Duties and responsibilities of the position

• Any course of instruction or workshop must be approved by the State Department of Education.

• Certificates of completion must be kept on file at the school district.

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Reference Publications

• OCAS Manual Policies and Procedures

• CODED – Coding Obstacles Districts Encounter Daily

• Technical Assistance Document

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End of Year Reports

• District Review Sheet• District Check Report• District Expenditure Report• District Revenue Report• Superintendent SPR Comparison Report• District Maintenance of Effort Special Ed• Administrative Cost Details• OCAS Compared to State Aid Allocations

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Work Ethics

• All school system employee hold position of public trust. Each employee is responsible for both the integrity and the consequences of his or her own actions.

• As school business officials you have fiduciary responsibility over large amounts of public funds.

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Work Ethics

• This responsibility involves budgeting, coding, monitoring and properly dispensing of public funds. Both Local, State and Federal Funds.

• Supporting and enhancing the educational programs of the district are an important aspect of the school business official’s role.

• As the school business official who research and makes purchases for districts can sometimes bring about unethical or illegal activity

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Work Ethics• It is expected that school business officials will

• Support the goals and objectives of the district• Implement the policies and procedures of the district• Build the best possible image of the school district• Refrain from publicly criticizing board members,

administrators, or other employees

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Work Ethics

• In discharge of responsibilities the school business official will

• Report to work on time and tend to district business the whole time while at work

• To treat district resources, equipment and products with care

• To treat district employees and students with dignity and respect

• Avoid preferential treatment

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Ethics

• All employees should act with integrity and diligence in duties involving the district’s financial resources.Forgery or unauthorized alteration of documentsMisappropriation of funds - including employee time Impropriety in handling moneyDestroying, removing or inappropriately using

records or equipment

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Ethics

• The single biggest threat to finance is ethical failure.• People have tendencies to rationalize unethical

behaviors• Ethical dilemmas arise as tests of personal ethics and

values.

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Contact Information• Katherine Black, Executive Director 522-0275

• Financial Specialist/Auditing • Paula Koch, 521-3197 (Counties 1-20 & 77)• Kelly Freeman, 521-2349 (Counties 21-45) • Pam Honeysuckle, 522-3273 (Counties 46-60)• Iona Martin, 522-3272 (Counties 61-76)

Email is firstname.lastname@sde.ok.govMain Number : (405) 521-2517