Additional information about internal controls is available at the Office of Internal Audit website. The new tool is designed for ease of use, an electronic completion option, tracking of responses by the department if desired and more targeted questions that are aligned with the components of internal control. There are two options for completing the checklist:. For information about how to import internal controls from a Microsoft Excel workbook, see Import internal controls to the Compliance site.
Chris clicks Compliance on the top link bar, and then clicks Set up control environment on the Quick Launch. On the Set up control environment page, Chris sets up the following site structure. For detailed steps, see Set up the Internal controls site. A significant account corresponds to a ledger account in a chart of accounts. Phyllis clicks Compliance on the top link bar, and then clicks Internal controls on the Quick Launch.
On the Internal controls page, Phyllis clicks Purchasing - Domestic. A process is a prescribed way that an organization accomplishes a series of steps. In the context of the Internal controls site, Phyllis creates a compliance process document to prove that the process has been reviewed and that it is working effectively. On the Internal controls page, Phyllis clicks the Cash significant account.
On the Edit document page, in the Owner field, Phyllis enters the compliance owner. This is the person who signs off to confirm that this process is working correctly. In the Process Owner and Transaction Type fields, Phyllis can set properties for the compliance document.
These properties are displayed on control reports. In the Workflow section, under 1. Review , Phyllis clicks the Edit line icon. In the Assigned to column, Phyllis enters the user who is responsible for reviewing the process, and then clicks the Validate user icon. The users in the Assigned to fields must be set up as users on the Enterprise Portal SharePoint site.
In the Assigned to column, Phyllis enters the user who is responsible for verifying that the compliance review is complete, and then clicks the Validate user icon. Phyllis selects Create and post a vendor invoice example. She previously uploaded this file to the Process documentation shared document library on the Compliance site. A risk is associated with a process. In this example, a risk is that the same user might approve vendor invoices and payments. On the Internal controls page, Phyllis clicks the Pay vendor invoices process.
In the Name field, Phyllis enters Same user approves vendor invoices and payments. On the Edit document page, in the Owner field, Phyllis enters the compliance owner for this risk and then clicks the Validate user icon.
Opening of bids is documented for the project files. When a proper bid is selected and authorized, the funds required as per the PR are encumbered, and the Purchasing Agent creates a purchase order PO. Each quote received.
All POs. This review is performed on a timely basis; i. Regardless of dollar amounts: The Purchasing Manager selects and approves the final vendor. Proper segregation of duties exists over the bid opening process. Campus lacks evidence of Director of Purchasing has the final approval on all purchase orders POs.
For the same judgmental sample used above, for each item trace back to and obtain the PO. Note proper approval, according to its dollar amount. For each item for which a contract is applicable, noted whether the contract was signed as per the SUNY Procurement Policy.
Departments planning to retain the services of a contractor may use standard consultant or service contracts developed by SUNY and approved by the NYS. This list is. Therefore, the dollar limits detailed above are also applicable to expenditure contracts. Campus uses a checklist when putting together a contract package for OSC, so that all information and documentation required by OSC is included. This checklist is prepared by the purchasing area and reviewed and signed off by someone senior to the preparer, before the contract package is sent to OSC.
ACL report is generated by University Audit periodically to identify contract activity over a period of time; doing this can reveal contracts that have spending greater than the flexibility limits. An RFP is typically issued for large dollar amount contracts, very technical purchases such as computer or scientific equipment , or contracts that span a number of years.
These are: Multi-campus agreements Contracts with campus-related organizations, i. Contracts pertaining to capital facilities, such as construction contracts, building maintenance services, repair or rehabilitation of facilities and real property leases.
Purchase Orders The secretary for the Purchasing Dept. Copies of the PR and the PO are returned to the requisitioner. A copy is mailed or faxed to the vendor, an Accounts Payable Clerk and a copy without the quantities of items ordered is forwarded to Central Receiving,. The Purchasing Clerk reviews and approves the following: Inquire and observe with the purchasing staff on the The sequence of PO following: numbers assigned.
Are PO numbers in Compares the batch control sequence? Check a number with the PO log of POs. Note number. Contract History Report ENC is reviewed, showing activity and encumbered and unencumbered balances. Process Narrative example wording located in the warehouse. The PO directs the vendor to deliver the goods to the Central Delivery and to mail the invoice to the Accounting Dept.
A copy is given to the Accounts Payable Dept. It is therefore necessary to maintain complete and sufficient documentation, which is able to withstand audit standards. Procedure is in place with purchasing agent and management, to update system and notify Business Office staff responsible for voucher processing of any changes or amendments to active contracts. The dollar amount of a purchase and nature of the item s being purchased may require additional information or documentation, such as: Sole source justifications Waivers from the appropriate administrative office Detailed specifications of item s to be purchased A statement of reasonableness of price for sole source purchases.
Campus-determined period. Note whether the checklist was retained and whether the review was evidenced with a signoff.
Contract will be Campus uses a checklist when rejected by the putting together a contract Office of the package for OSC, so that all State information and documentation Comptroller required by OSC is included. OSC This checklist is prepared by the purchasing area and reviewed Work is and signed off by someone initiated, or senior to the preparer, before the goods are contract package is sent to OSC. As a result, it will be necessary to expand the sample for this test only.
See expansion of the sample done in the bid section of this testing program, above. To ensure unauthorized payments are not attempted by subverting legitimate POs and other controls. All open POs are followed up on periodically; if goods have been in fact received or services have been performed since prior review, the PO is closed.
There is a review of open encumbrances- report SUPO or equivalent- performed on a monthly basis. To ensure Contract Procedure is in place with contract changes and purchasing agent and changes and amendments are management, to update system amendments not properly and notify Business Office staff are properly communicated, responsible for voucher noted so that leading to processing, of any relevant payables get mismatching changes that take place.
Note how any distributed. Shipments are received at the Central Receiving. It is sent to the Receiving Manager for approval. If the goods are damaged, they will be rejected and the Receiving Dept. Once the goods have been accepted, the ordering department is notified to arrange for delivery. Upon receipt of the goods by the ordering department, the department secretary signs the RR. For receipt of services, the original vendor invoice is forwarded to the.
Process Narrative example wording department receiving the services. The employee who received the services then signs the invoice and returns it to Accounts Payable Dept. Utilities are purchased under State contracts i. See the Property Control cycle narrative for more detail on those procedures. The RR is co-signed by the department chair.
Observe and take notes on the receiving process. The employee receiving the Walk through, i. In this screens of all of the process the individual responsible documents and processing for this process examines steps done for a receipt as supporting documents to check for it takes place, from any unusual features. Ensure access to received goods is See below for description of adequately restricted. See the Property Control controls workplan for description of receiving controls for fixed assets.
He then forwards it to attempt to post a voucher made. OSC for vouchering. Access is monitored by Note whether the Quick management via a periodic Pay voucher or batch was review of users and their access certified by the Financial. The Accounts Payable Clerk reviews all the purchase-related documents before vouchering. The quantities received per the RR are matched to the PO and to the vendor invoice, and the prices per the PR are matched to the vendor invoice.
If any discrepancies are noted, the clerk will call the vendor to settle the discrepancy. For partial deliveries, the clerk stamps Partial Shipment on the invoice and the PO to indicate that the corresponding invoice is for a partial payment and the PO number should be kept open in the system. For full shipments, the clerk stamps Closed on the PO.
If no discrepancies are noted, the clerk forwards the package to the Accounts Payable Manager before sending it to authorized personnel for vouchering. This allows for entry of the payment into the system and electronic submission of the voucher to OSC. The Campus does not submit the documents supporting the purchase to OSC, but maintains them in a file on-site for post-auditing by OSC.
Note whether the invoice was canceled. Obtain a listing of authorized users to Quick Pay. Determine if the list is current. Review a report of users and their access rights. Determine if anyones rights exceeded their proper authority. Perform inquiry and observation of check stock custody for local bank and petty cash account disbursements.
Note whether the check stock is kept in a locked cabinet, and whether there is a log evidencing the control of stock by check number. Review the most recently used check number per the log, against current check stock to ensure sequence is kept.
Note segregation of duties between local check handling and potentially conflicting duties such as cash receipts handling, bank reconciliations.
If potential conflict exists, note whether the there is a review process to reduce the risk of misstatements. Access is monitored by management via a periodic review of users and their access rights. Access rights to perform data entry are segregated from rights to perform certification functions for Quick Pay vouchers, as well as other overlapping control functions such as PO creation and voucher processing.
At the end of each day they are sent to the Financial Analyst for signature. One copy is forwarded to OSC along with the original vendor invoice and other required documents.
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