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KSRE Employee Resources

EXTENSION ADMINISTRATIVE HANDBOOK - USE OF EXTENSION FUNDS

Chapter 2 Section C2

C2.      Suggestions Concerning Audit-Minimum Requirements

Audits should be conducted in accordance with the current Kansas Municipal Audit and Accounting Guide. The following may be requested for an audit:

1.    Minutes: They are required to read the minutes of all meetings:

a.    to see that there has been compliance with the orders of the Board.

b.    to see that statutes are being complied with.

c.    to see that all minutes are properly approved and signed.

2.    Bonds: They are to check the Treasurer’s bond:

a.    to see that it meets the statutory requirements of 100% of the maximum amount on deposit during the year.

b.    to see that the bond was filed with each County Clerk.


3.    Insurance: They are required to examine all insurance policies for coverage, endorsements and co- insurance clauses to determine that the insurance company is authorized to do business in Kansas and that policies are written in accordance with statutory requirements.


4.    Money (Cash or Checks):

a.    They will count cash on hand and review deposit slips to determine that all money has been deposited.

b.    They will determine that all monies were deposited promptly.

c.    They will obtain written confirmation from the bank of beginning and ending balances.


5.    Receipts: Receipts (KSU 8-12) see if issued at the time money is received


6.    Checks: The auditor will examine warrant checks for number, date, payee, amount, signatures, payee endorsement, and bank cancellation. Warrant checks must be audited and approved by the County/District Extension Director.


7.    Comparison: Receipts and expenditures will be compared with budgeted receipts and expenditures.


8.    Expenditures: The auditor will establish the reliability and recording of warrant checks. All expenditures must be authorized by the Extension Board. An entry in the Minutes should read, “The Treasurer and (list two Extension Board members) are hereby authorized to pay bills totaling ($) dollars as listed on the financial report for the month of                         .”


9.    Inventories: The auditor will examine the Equipment Inventory (KSU 8-10), (Exhibit L).


10.    Petty Cash Funds – Are not allowed and are illegal


11.    Excise and Sales Taxes: The auditor will examine invoices to determine that State Sales Tax and Federal Excise Tax were not paid.