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IS IT TIME TO RE-EMPHASIZE 'OLD FASHIONED' INTERNAL AUDITS CONTROLS?

NCJ Number
64608
Journal
School Business Affairs Volume: 44 Issue: 7 Dated: (JULY 1978) Pages: 220-223
Author(s)
B T EDWARDS
Date Published
1978
Length
4 pages
Annotation
OFTEN THE FIRST TO BE ELIMINATED IN A BUDGETARY SQUEEZE, THE INTERNAL AUDIT FUNCTION CAN LITERALLY EXTEND THE EYES AND EARS OF TOP MANAGEMENT TO EVEY FACET OF A SCHOOL SYSTEM'S OPERATION AND CAN SAVE MONEY.
Abstract
IT CAN ALSO CRITICALLY REVIEW HOW PURCHASING DECISIONS ARE MADE THROUGHOUT THE SCHOOL SYSTEM, REVIEW THE BUDGET REVISION PROCESS FOR PROCEDURAL ADHERENCE, AND, WHEN NECESSARY, PERFORM SPECIAL INVESTIGATIONS, ENSURE THAT EQUIPMENT IS ON HAND WHEN NEEDED, CHECK ON THE EFFICIENT MANAGEMENT AND STEWARDSHIP OF THE SCHOOL ACTIVITY FUNDS, AND SUPERVISE FOOD SALES IN THE SCHOOL CAFETERIA. IN ADDITION, THE SYSTEM CAN SERVE AS A TRAINING GROUND FOR INDIVIDUALS NEEDED TO FILL KEY VACANCIES IN FINANCIAL AND OPERATING MANAGEMENT. INTERNAL AUDIT FUNCTIONS CAN HANDLE 'ARM'S-LENGTH' TRANSACTIONS BETWEEN SCHOOL SYSTEM EMPLOYEES AND VENDORS AND CAN INSURE THAT ALL MAJOR PROCEDURAL AREAS ARE COVERED BY AN UPDATED WRITTEN PROCEDURES MANUAL AVAILABLE TO ALL SCHOOL SYSTEM EMPLOYEES. AUDITORS CAN DEVELOP METHODS TO MINIMIZE PAYCHECK ERRORS AND CONTROL UNAUTHORIZED PAYROLL DISBURSEMENTS. THEY CAN DEVELOP ACCOUNTING RECORDS TO SUPPORT THE DETERMINATION OF COSTS ON A SCHOOL-BY-SCHOOL OR A PROGRAM-BY-PROGRAM BASIS. OTHER IMPORTANT INTERNAL AUDIT FUNCTIONS MAY INCLUDE A DAILY OPERATIONS REPORT BY THE INDIVIDUAL CAFETERIA MANAGER AND PROVISION FOR DAILY DEPOSIT OF CAFETERIA RECEIPTS TO MINIMIZE THEFT; A PROCEDURE FOR REVIEW OF MULTIPLE PAYCHECKS AND RELATING PAYMENTS TO SUBSTITUTE TEACHERS TO AUTHORIZED ABSENCES OF REGULAR PERSONNEL; THE PLANNING OF A DATA PROCESSING STEERING COMMITTEE AND LONG-RANGE DATA PROCESSING SYSTEM; AND THE PROMPT PREPARATION OF PERIODIC INTERIM FINANCIAL STATEMENTS. (AOP)

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