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Article 7 - Audit & Payment Procedures
| Section 7.1 | Purpose |
| Section 7.2 | Definitions |
| Section 7.3 | Audit of Claims Required |
| Section 7.4 | Audit Procedures |
| Section 7.5 | Exceptions to Audit |
| Section 7.6 | Payment of Audited & Approved Claims |
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| Section 7.1 | Purpose |
| Section 7.2 | Definitions |
| Section 7.3 | Audit of Claims Required |
| Section 7.4 | Audit Procedures |
| Section 7.5 | Exceptions to Audit |
| Section 7.6 | Payment of Audited & Approved Claims |
Article 7
AUDIT & PAYMENT PROCEDURES
The Board of Education desires to ensure
that District funds are used and expended only for the payment of valid claims. In order for the District to comply with legal requirements set forth in the Education Law relating to the audit of claims and the disbursement of District funds, a procedure for the processing and payment of claims is established and rigorously followed
The following terms shall have the meanings indicated below:
(A) "Claim" shall mean a written and itemized bill, account or demand for payment of moneys due for services rendered or goods and materials furnished to the District.
(B) "Purchase Order@ shall mean a consecutively numbered document prepared by the Purchasing Agent or his/her designee for the purpose of procuring goods, materials, or services:
(1) containing the following minimum information:
(a) the name of the vendor-
(b) the District's shipping and billing address-
(c) the quantity of each item of goods or materials purchased,
(d) catalog number (if available) of each item purchased;
(e) a description of each item of goods or materials purchased, or of the services furnished;
(f) the unit price;
(g) the extended or total price; and
(h) the identification of the specific fund and budget account from which payment is to be made; and
(2) to which is attached all necessary supporting documentation.
(C) "Warrant@ shall mean a document prepared by the District Treasurer and summarizing those claims which have been audited and approved for payment, and which shall include the following information for each claim audited and approved for payment:
(1) the number of the claim;
(2) the name and address of the payee,
(3) the payee=s social security number or federal i.d. #
(4) the amount allowed,
(5) the fund and appropriation account chargeable; and
(6) any other relevant information to facilitate payment.
Section 7.3 Audit of Claims Required
(A) Subject to the exceptions contained in section 5 hereof,
(1) no claim shall be allowed or approved for payment unless the same shall have been approved by the District officer or employee who gave rise to the claim, and
(2) all claims shall be audited by the District's Internal Auditor, or if there is no such auditor by the Board of Education.
(B) The District's Internal Auditor, Business Manager, and Treasurer, shall make every effort to expedite the payment of claims in order to take advantage of discounts offered by vendors for prompt payment, including but not limited to notifying vendors of the schedule of review by the District's Internal Auditor, or of regularly scheduled Board meetings in the absence of such Auditor, so that the vendors may conform their billing cycles to permit prompt action-
Audit of each and every claim shall be performed in a careful and thorough manner, and shall include:
(A) ascertaining that the claim is
(1) complete, including
(a) submission of all necessary supporting documentation,
(b) contains sufficient detail (dates, descriptions, accounts)
(c) payee=s name, address and federal i.d. #, and
(d) signature of payee=s rep and District officials
(2) mathematically correct, and
(3) agrees in all respects with the purchase order or contract upon which it is based
(B) confirming that the goods were received or service rendered;
(C) checking all supporting documentation such as delivery tickets and receipts for reimbursable expenses;
(D) confirming that the purchase was properly authorized by the appropriate
District official or employee:
(E) ensuring that the payment is for a valid and legal purpose- and
(F) ascertaining that there are available unencumbered funds, or that a transfer of funds has been made if needed.
Section 7.5 Exceptions to Audit
(A) In accordance with the State Comptroller's policy, the following claims shall not ordinarily be subject to the pre-audit and approval procedure before payment is made:
(1) payment of agreed wages or compensation to regularly engaged employees and officers-,
(2) payment of principal and interest on indebtedness-,
(3) payments made pursuant to a court order,
(4) amounts becoming due on a contract for a period exceeding one year- and
(5) payments by the District as a participating employer to
(a) a State retirement fund,
(b) a health insurance plan, and/or
(c) an unemployment insurance fund.
(B) The payment of expenses such as utilities, postage, freight, telephone charges, and conference registration/attendance charges may be made prior to audit provided that the same are audited and approved by the District's Internal Auditor, or in the absence of such Auditor by the Board of Education, within ten (10) business days following payment.
Section 7.6 Payment of Audited & Approved Claims
After a claim has been audited and approved for payment, the District Treasurer shall have the authority to make payment thereof. Payment shall be made upon the completion of a warrant by the District Treasurer.1
1Education Law ''1709(20-a); 1718; 1719; 1720; 1804; 1950; 2122; 2523; 2524; 2526; 2554(2-a); 2562; 2580; Office of the State Comptroller Fiscal Management Guide - 6410, Authorized Signatures; 6650, Internal Auditor.