School districts pay millions of dollars in payroll, benefits and invoices for goods and services during the year. The accuracy, efficiency and timeliness of all fiscal operations inevitably affect public trust, employee morale, and student success levels. Pay must be accurately calculated, reported and distributed to staff. Bills must be paid in reasonable time upon receipt of goods or services. The fiscal records of the district must be capable of the close scrutiny of auditing by independent auditors.

The district has two experienced people working in the accounting and payroll areas of the central office. A third experienced secretary assists with some functions to provide excellent internal control. Analysis of the division of labor in the district office shows trained business professionals working with high morale and efficiency. Internal controls requested by the independent auditor have been implemented, including periodic Superintendent review of the bank statement. They have completed cross training in essential duties. Payroll and accounting software serves the district needs effectively. One member of the board personally reviews the current bill file by taking it home for what may be several days.

Recommendation

It is recommended that the bill file not leave the district office, and that the trustee review the file without the valuable documents leaving the building. This will also assist in the timeliness of the documents being there for the semi-monthly bill payments.

The current procedure is to allow timesheet aides to choose between annualization of estimated pay over twelve equal payments, or by monthly pay as per each individual timesheet. Persons who choose the latter method and continue working over many years for the district, in effect are forfeiting future PERSI benefits for the summer unpaid months. This practice also complicates the payment of health insurance when there is no paycheck for the deduction.

Recommendation

If the district wants to continue the voluntary method instead of mandatory twelve-month equal payments for these employees, it is recommended that written communication and signature of understanding by the employee be obtained. This may help avoid the possible circumstance of an employee later complaining that the district directly contributed to their receiving a lower retirement benefit because of the months of service issue.

2.1.3    Observation

Federal and state regulations allow school districts to provide compensatory time to classified employees working more than forty hours in a week. This time is to be agreed upon and documented and compensated at time and one half for either time off or payroll compensation. Most school districts have this situation during extremely busy periods, including Kellogg. There is no written district procedure or form for this purpose.

Recommendation

It is recommended that a written procedure be prepared so that the classified employees who occasionally work more than their assigned hours and their supervisors, can understand the rule. Also recommended is a uniform comp time log to be used by the employee. (The supervisor would initial to approve the comp time).

The district had a professional appraisal company, Valuations Northwest, prepare a comprehensive property and assets report in recent years.

Recommendation

It is recommended that the district keep the assets documentation up-to-date as time and staff permit.

2.1.5    Observation

Currently, the district pays benefits for twenty hours of employment per week.

Recommendation

As the district reviews its financial condition, it is recommended that a survey be made of districts of like size within the state to determine if the hours per week need to be increased for benefits to be received.