Office of the Controller Self-Assessment of Internal Controls Cash Receipts Cycle Objectives and Agency ____________________________ Year-End _________ Objectives Risks All collections are properly identified, control totals developed, and collections promptly deposited intact. Failure to record cash receipts; withholding or delaying the recording of cash receipts. All bank accounts and cash on hand are subject to effective custodial accountability procedures and physical safeguards. Misappropriated cash or petty cash funds; diverted cash receipts; unauthorized cash disbursements; loss of funds. All transactions are promptly and accurately recorded in adequate detail records and appropriate reports are issued. Covering unauthorized transactions by substituting unsupported credits or fictitious expenditures to cover misappropriated collections; under or overestimating cash or receivables. All transactions are properly accumulated, correctly classified and summarized in the general ledger; balances are properly and timely reconciled with bank statement balances. Misstating cash balances; covering unauthorized transactions by falsifying bank reconciliation.
Office of the State Controller Self-Assessment of Internal Controls Purchasing/Accounts Payable Cycle Objectives and Risks Agency ____________________________ Year-End _________ Objectives All requests for goods and services are initiated and approved by authorized individuals, and are in accordance with budget and appropriation guidelines. Purchases from unauthorized vendors. Purchases are in violation of a conflict of interest policy. Purchases are not timely. Purchases not in accordance with budget and/or appropriations provisions. All purchase orders are based on valid, approved requests and are properly executed as to price, quantity and vendor. Payment in excess of optimum Quantities not adequate or in excess of need. All materials and services received agree with the original orders. Payment for materials or services not received. Damaged or missing goods not reported. All invoices processed for payment represent goods and services received and are accurate as to terms, quantities, prices and extensions; account distributions are accurate and agree with established account classifications. Payment based on improper price or terms. Accounting distribution of cost is inaccurate. All checks are prepared on the basis of adequate and approved documentation, compared with supporting data and properly approved, signed and mailed. Incorrect or duplicate payments. Alteration of checks. Disbursement for materials or services not properly documented or approved. All disbursement, accounts payable, encumbrance transactions are promptly and accurately recorded as to and amount. Improper cash, accounts payable, and encumbrance balances. All entries to accounts payable, reserve for encumbrances, asset and expense accounts and cash disbursements are properly accumulated, classified and summarized in the accounts. Misstated financial statements. Misstated internal financial data.
Payments for employee compensation and benefits are made to or on behalf of only bona fide employees for services performed as authorized. Payments made to unauthorized individuals. Employees paid for unauthorized benefits. Employee compensation and benefit costs are properly accumulated, classified and summarized in the accounts. The accounting distribution of payroll and related costs are classified improperly. Accrued liabilities or disclosures for employee benefits are misstated.
Office of the Controller Self-Assessment of Internal Controls Inventory Cycle Objectives and Risks Agency ____________________________ Year-End _________ Objectives All transactions are approved by authorized individuals. Purchase unauthorized materials acquired in excess of need, at appropriate prices, or at unfavorable All inventory items are subject to effective custodial accountability procedures and physical safeguards. Theft by employees or outsiders; inadequate insurance coverage. All receipts and withdrawals of inventory are properly recorded and the records reflect actual quantities on hand. No for comparing actual usage with expected usage; inability to determine material reorder points. All transactions are properly accumulated, classified and summarized in the accounts. Misstated financial statements; concealment of shortages.
Office of the State Controller Self-Assessment of Internal Controls Capital Assets Cycle Objectives and Risks Agency ____________________________ Year-End _________ Objectives Risks All capital asset transactions are initiated by authorized individuals in accordance with established criteria. Fictitious purchases or payments to contractors or suppliers, with or without kickbacks to employees. Purchases from vendors whose interests are in conflict with the organization. Purchases of unnecessary assets. Disposal or scrapping of serviceable assets. Purchases of assets which do not meet established quality standards. Advance approval is obtained for all significant capital asset transactions. Unauthorized purchases, construction contracts or leases with companies or individuals related to executive or legislative representatives. Purchases from related parties without the knowledge of senior officials. Delay or cancellation of a project due. Expenditures in excess of originally approved amounts without review and approval. Adequate project cost records are maintained, and in progress and completed project reports are issued. Actual costs that exceed projected amounts. Overpayments to contractors. Misclassification of costs between capital and operating budgets.
Office of the State Controller Self-Assessment of Internal Controls Investment Cycle Objectives and Risks Agency ____________________________ Year-End _________ Objectives Risks All purchase or sales transaction are initiated by authorized individuals, conform to investment objectives, policies and regulations and are properly documented and approved. Unrecorded or unauthorized transactions; transactions at inappropriate prices or at unfavorable terms; payment of fictitious or inflated prices. All documents evidencing ownership or other rights are subject to effective custodial accountability procedures and physical safeguards. Unauthorized use of assets for personal gain; loss or theft of assets. All transactions are promptly and accurately recorded in adequate detail records and appropriate reports are issued. Misappropriation of interest income, proceeds from sales transactions; concealment of unauthorized transactions. All transaction are properly accumulated, classified and summarized in the accounts. Misstating financial statements; concealment of misappropriations.