Copyright 1995

One of the selling points for a corporate American Express card is a monthly summary statement that lists where each charge was made, who made it and basically what it was for.

Diane Howard, a school district attorney, says the summary statement is more useful than actual receipts and provides a safeguard against manufactured receipts.

It also provides a useful tool to monitor how much was spent for food or lodging in a particular month.

Howard said a detailed receipt isn't required when the summary is available.

But both the Missouri state auditor and the Internal Revenue Service said the summary statement may not always provide adequate information to justify business expenses.

Frank Ybarra in the office of State Auditor Margaret Kelley said if the district's intention is to reimburse for expenses, the auditor would recommend very detailed receipts be submitted.

School districts are to reimburse for actual costs, and the only way to determine actual costs is with very detailed receipts.

Ybarra said, "The summary, depending on the circumstances, may not be a detailed accounting. That would be something we would look at. Is this a detailed enough record?"

Ybarra said a school district may negotiate a contract for a superintendent that would include a predetermined dollar amount for expenses. Documentation for those expenses wouldn't be necessary if it were spelled out in the contract.

Ybarra said the auditor would recommend against this arrangement, but it is legal. The amount for expenses would have to be reported to the IRS as income.

Ybarra said the state auditor doesn't conduct routine audits of school districts. School districts contract with independent accountants to perform regular audits.

Sandra Peterson, acting public affairs officer for the Internal Revenue Service, said when the IRS audits a company's business expenses, an American Express summary wouldn't be sufficient to establish a business expense, especially for a hotel bill.

"You could buy anything at a hotel and have it charged to a room," Peterson said. "You could get a massage, dinner, a bar bill, even buy things in the gift shop."

She said IRS auditors would look for the actual hotel bill that lists specific charges.

"Even though the summary shows he was there, how much he spent and may give his signature, it doesn't tell why he spent the money," she said.

Stephen C. Del Vecchio, audit manager for Hillin & Clark certified public accountants, met Tuesday with Larry Dew, the school district's busines manager, to review specific questions raised in Amy Randol's letter concerning some travel expenses.

"We pulled the various invoices and looked at the documentation or lack of documentation," he said.

On Friday, Clark asked Del Vecchio to meet with Dan Tallent, Central High School principal, to make recomendations for improvements in documentation of travel expenses. The school district has a policy concerning travel, but Del Vecchio said it could be more detailed.

"It gets into a matter of policy, what the board wants to have," the auditor said. "That's one of the things Dan Tallent and I will discuss -- to what degree the documentation should be attached."

Del Vecchio said documentation for pre-paid bills is good. "The expenses incurred once they arrive at a meeting is probably the area that could be better documented."