FY14 CLOSE ACTIVITIESBUDGET, PROCUREMENT AND PAYROLL

HOW TO AVOID COMMON MISTAKES AND EMERGENCIES

Network 533

February 2014

Common Mistakes and How to Avoid Emergencies

1. Budget2. Procurement3. Payroll

Budget Mistakes to Avoid1. Not budgeting for spring activities or

not budgeting enough. Be careful to:• Create vacancies for returns from leave using the right dates

• Estimate your Absence Coverage needs through the end of June

• Make sure to cover ALL Graduation Costs

• Make sure to calculate the true cost of trips including what you will be submitting through TRAC

• Make sure to estimate per session costs through the end of June

• Make sure you have budgeted the right amount for SLT based on the actual number of members who need to be reimbursed x $300

• Look up the exact cost of items and budget precisely

Budget Mistakes to Avoid2. Not unbundling activities• A trip may involve transportation (400 or 633), per session,

admissions (400), supplies (100)

• A PD activity may involve a contracted vendor (689), conference registration or workshop (451), per session on teachers and supervisors, software (199)

• A computer purchase may involve equipment (100 or 300), software (199), supplies (100), curriculum & staff development (689). This may or may not be bundled by the vendor.

Budget Mistakes to Avoid3. Budgeting on the wrong line/object code

• Match what you need to purchase against the correcting budgeting object code using the Object Code Crosswalk

• Check FAMIS Vendor Inquiry for correct object code for that vendor/services

• Watch out for these common areas of confusion• Transportation for trips• Use 633 for NON-CONTRACTED coach buses for pupil field trips• Use 400 for CONTRACTED coach buses for pupil field trips• Use 451 for transportation for staff attending PD outside the school

• Admissions Fees – Budget on Non-Contractual Services (400); Expense on 461• Parental involvement – Budget on Non-Contractual Services (400); Expense on 489• Professional Development Activities: Curriculum & Staff Development 689 or

Transportation of Staff 451• Services to Students provided by a vendor is Educational Consultants 685• Equipment/Hardware < $5,000 in Title I or other Reimbursable is budgeted as Supplies

100• Upgrade Phone System is Telecommunications Maintenance 602, not 402

Budget Mistakes to Avoid4. Not removing accruals (unspent/unneeded) funds off lines including:.• Where positive balances remain on lines, review POs to see if

prices were lower and whether accruals can be removed (reduce or eliminate budget lines)

• For per session and per diem lines, confirm actual expenditures in EIS/PDPS and then calculate how many more hours/days are needed through June. Compare to budget and act accordingly.o See Monitoring Bulk Jobso Use Per Session Planner

Budget Mistakes to Avoid5. Not budgeting in the right Allocation

Category• Some items, like Internal Services, must be

budgeted in TL Fair Student Funding

• Some grants require pre-approval before modifying the budget (VATEA, SIG)

• You must use TL funds for the DPPI (see DPPI link on myGalaxy logon screen.

Procurement Mistakes to Avoid

1. Not using the correct Object Code• Double check the Object Code crosswalk and

descriptions here: o Object Code Description Detail

o Object Code / Galaxy Title Crosswalk

• Watch out for these common mistakes:o Use 331 for computers when using a reimbursable allocation (not

TL) for items with unit cost < $5,000. This rolls up to Object Code 100 (Supplies)

o Use 332 for computers when using a TL allocation, or for reimbursably funded items with unit cost >$5000. This rolls up to Object Code 300 (Equipment)

Procurement Mistakes to Avoid

2. Not planning properly for out of town travel and not following SOP guidelines

• Submit TRAC requests 1 month before the trip.

• Follow GSA guidelines regarding lunch, dinner and snacks.

• Meals are allowed only when traveling out of town

• Read this! NYC DOE SOP Chapter on Travel

Procurement Mistakes to Avoid

3. Not encumbering annual contractsPurchase Orders should be written so that partial payments can be made after certain completion points. Itemize or quantify the deliverables so that partial payments can be made after completion. This ensures that funds are fully encumbered prior to the deadline. Do not encumber new POs for vendors after each deliverable to avoid bill-splitting.

Procurement Mistakes to Avoid

4. Inappropriate or undocumented food purchases.

• All food purchases must be related to an official Professional Development activity and accompanied by an agenda and sign-in sheet

• Invoices and bids are required

• No holiday or year-end parties for staff can be charged to the DOE

Procurement Mistakes to Avoid

5. General purchasing guidelines are not followed:

• Get bids when required (phone or written as per thresdholds chart)

• Invoices are required and must be attached to all documentation

• Delivery must be certified

For more common mistakes and audit findings, go here:

or here: Internal Controls Training Doc Nov 2013

Payroll1. Review all bulk job codes with payroll secretary to ensure

the correct codes are being charged

2. Enter payrolls timely or you will be charged interest

3. Make sure the activity supervisor and employee working know how many hours they are entitled to work

4. All timesheets should have Job activity codes on them and must be signed by a supervisor

5. For pedagogic per session, consult the PDPS Bulk Job Inquiry (Functions 8 and 11) to ensure you know the actual # hours remaining. This screen includes pending expenditures in addition to actual expenditures

Payroll Problems to Avoid1. Postings must be advertised 20 days prior to commencing

the activity.

2. Avoid emergency waivers. Monitor each person’s hours’ worked against the limit.

a. Per Session employees cannot work more than 500 hours without a waiver

b. F Status (retired) employees cannot earn more than $30,000/year

3. Timeclocks must be used

4. Time entered must not exceed timecard entries

Per Session – Common Audit Findings Time Clock was not used to punch in/out Per session hours overlap resulting in an overpayment Per session time records/payments are not approved by the

individuals’ supervisor or maintained on file Per session time records are not accurate, e.g. time card

does not agree with service report Number of per session hours entered in TBNK was more

than the individual’s time card Teachers were absent (sick) from their regular job

assignment and also worked and were paid for a per-session assignment on the same day

Per Diem – Common Audit Findings Per Diem and class coverage payments were made for the same

absent teacher on the same day Paid class coverage payments are made to an absent teacher

covered by a per diem EIS is not updated to reflect the absent teacher and/or non-

attendance Poor recordkeeping, e.g. logs are not maintained for paid class

coverages Payments are made to F-status employees for services not

rendered Teachers were assigned less than the contract minimum number of

teaching periods was paid for a class coverage(s) Postings were not available for compensatory time positions

Purchasing – Common Audit Findings

Purchases could not be substantiated by any type of supporting documentation

No proof/confirmation that purchases were actually received

No written justification nor approval of sole-source vendor purchases

Bidding documentation, when required, was not solicited thereby circumventing DOE procurement policies

Vendor invoices were not on file to support payment

Purchases were paid without proper authorization and approval

Payments were split to circumvent bidding procedures

Purchasing – Common Audit Findings

Expenditures were not in accordance with the intended use of grant funds

Purchase was not allowed as per DOE policy

Vendors were paid before goods are delivered or services are rendered

No separation of duties

Food/refreshments exceeded allowable limits as per SOP

Meetings held in restaurants; public funds used for celebrations

Personal purchases

Purchasing – Common Audit Findings

No indication that vendor’s invoices were paid.

Schools paid sales tax for non-taxable items.

Inappropriate staff incentives.

P-Card Log is not maintained to record all purchases.

Commercial card statements are not reconciled with P-Card usage records.

P-Cards are not secured in a safe location when not being used.

For More Information

For more information about Standard Operating Procedures, common mistakes and audit findings, go here: Internal Controls Training Doc Nov 2013