YES | NO | N/A | Notes Reference | ||
PART A: This section to be completed by all applicable agencies. | |||||
PROPERTY Statutory References - CGS 4-33a and 4-36 | |||||
Segregation of Duties | |||||
1. Are responsibilities for initiating, evaluating, and approving capital expenditures, leases, and maintenance or repair projects segregated from those for project accounting, property records, and general ledger functions? | ______ | ______ | ______ | ______ | |
2. Are responsibilities for maintaining detail records or subsidiary ledgers for capitalized assets segregated from those for general ledger, cash, purchasing, payable, and capital expenditure authorizing functions? | ______ | ______ | ______ | ______ | |
3. Are responsibilities for initiating capitalized asset transactions segregated from those for final approvals that commit funds? | ______ | ______ | ______ | ______ | |
4. Are responsibilities for the custodial function segregated from the project accounting and property records functions? | ______ | ______ | ______ | ______ | |
5. Are responsibilities for the project accounting and property records functions segregated from the general ledger function? | ______ | ______ | ______ | ______ | |
6. Are responsibilities for the periodic physical inventories of capitalized assets assigned to responsible officials who have no custodial or record keeping responsibilities? | ______ | ______ | ______ | ______ | |
7. If EDP is used, is the principle of segregation of duties maintained within processing activities? | ______ | ______ | ______ | ______ | |
Procedural Controls | |||||
Authorization: | |||||
8. Are those individuals who are authorized to initiate capitalized asset transactions clearly identified and are the limits of their authority clearly defined? | ______ | ______ | ______ | ______ | |
9. Are guidelines with respect to key considerations such as prices to be paid, acceptable vendors and terms, asset quality standards, and the provisions of grants or bonds that may finance the expenditures clearly established? | ______ | ______ | ______ | ______ | |
10. Is a separate capital projects budget prepared? | ______ | ______ | ______ | ______ | |
Executive or Legislative Approval: | |||||
11. Is written executive or legislative approval required for all significant capital assets projects or acquisitions? | ______ | ______ | ______ | ______ | |
12. Do procedures exist for authorizing, approving, and documenting sales or other dispositions of capital assets? | ______ | ______ | ______ | ______ | |
13. Do procedures exist for approving decisions regarding financing alternatives and accounting principles, practices, and methods? | ______ | ______ | ______ | ______ | |
14. Do procedures provide for obtaining grantor (federal/state) approval, if required, for the use of grant funds for capital asset acquisitions? | ______ | ______ | ______ | ______ | |
15. Are grant-funded acquisitions subjected to the same controls as internally funded acquisitions? | ______ | ______ | ______ | ______ | |
16. Are supplemental authorizations required, including those of the grantor agency, if appropriate, for expenditures in excess of originally approved amounts? | ______ | ______ | ______ | ______ | |
Asset Accountability: | |||||
17. Are detailed property records maintained for all self-constructed, donated, purchased, or leased capitalized assets? | ______ | ______ | ______ | ______ | |
18. Is accountability established for each asset? | ______ | ______ | ______ | ______ | |
19. Do procedures exist for the periodic inventory of documents that evidence property rights (e.g., deeds, leases, and the like)? | ______ | ______ | ______ | ______ | |
20. Are reviews and appraisals made periodically for insurance considerations? | ______ | ______ | ______ | ______ | |
21. Are items adequately safeguarded from loss due to fire, theft or misplacement? | ______ | ______ | ______ | ______ | |
22. Do procedures exist that ensure that materials, services and repair projects paid for by capital expenditures are subjected to the same levels of controls as for all other procurements (for example, receiving, approval, checking)? | ______ | ______ | ______ | ______ | |
23. Are detailed property records and physical counts compared periodically and records adjusted to reflect shortages? | ______ | ______ | ______ | ______ | |
24. Are differences between records and physical counts investigated and records adjusted to reflect shortages? | ______ | ______ | ______ | ______ | |
25. Do procedures exist to ensure that capitalized assets are adequately insured? | ______ | ______ | ______ | ______ | |
26. Are the titles of sites, buildings, vehicles, etc., held in name of the proper authority? | ______ | ______ | ______ | ______ | |
27. Are lease transactions subject to control procedures similar to those required for other capital expenditures? | ______ | ______ | ______ | ______ | |
28. Is equipment properly identified by metal numbered tags or other means of positive identification and is an inventory conducted on a systematic basis? | ______ | ______ | ______ | ______ | |
29. Do procedures exist for identifying and monitoring the appropriate disposition of property? | ______ | ______ | ______ | ______ | |
30. Are custodians of property required to report any changes in the status thereof (i.e., transfers, sales, scrapping, obsolescence, or excess)? | ______ | ______ | ______ | ______ | |
General Ledger: | |||||
31. Are detailed property records reconciled periodically with the general ledger control accounts? | ______ | ______ | ______ | ______ | |
32. Do procedures and policies exist to: | |||||
a. Distinguish between capital project fund expenditures and operating budget expenditures? | ______ | ______ | ______ | ______ | |
b. Distinguish between capital and operating leases? | ______ | ______ | ______ | ______ | |
c. Differentiate between capitalizable additions, freight, installation costs, replacements and maintenance expenditures? | ______ | ______ | ______ | ______ | |
33. Are accounting records promptly adjusted when capitalized assets are retired, sold, or transferred? | ______ | ______ | ______ | ______ |
PROPERTY PART B: This section to be completed by those agencies that handle project accounting. | ||||
Project Accounting: | ||||
1. Is a qualified employee or independent firm engaged to inspect and monitor technically complex projects? | ______ | ______ | ______ | ______ |
2. Are project cost records established and maintained for capital expenditure and repair projects? | ______ | ______ | ______ | ______ |
3. Do reporting procedures exist for in-progress and completed projects? | ______ | ______ | ______ | ______ |
4. If construction work is performed by contractors, do procedures exist to provide for and maintain control over construction projects and program billings? | ______ | ______ | ______ | ______ |
5. Is the accounting distribution reviewed to ensure proper allocation of charges to fixed asset and expenditure projects? | ______ | ______ | ______ | ______ |
6. Do procedures exist to identify completed projects so that timely transfers can be made to the appropriate accounts? | ______ | ______ | ______ | ______ |
7. Does the agency have the right to audit contractors' records? | ______ | ______ | ______ | ______ |
8. Is the right to audit contractor records executed during project performance? | ______ | ______ | ______ | ______ |
9. In addition to costs, is the audit of contractor conducted in compliance with EEO, Davis Bacon, and other regulations and contract terms? | ______ | ______ | ______ | ______ |
PROPERTY PART C: This section to be completed by those agencies that must depreciate assets. | ||||
Asset Accountability: | ||||
1. Are fully depreciated assets carried in the accounting records as means of providing accounting control? | ______ | ______ | ______ | ______ |
2. For depreciable property: | ||||
a. Are estimated lives and methods of depreciation initially reviewed and authorized by a responsible official or employee? | ______ | ______ | ______ | ______ |
b. Is the computation of depreciation reviewed by a responsible official or employee? | ______ | ______ | ______ | ______ |
c. Are estimated lives periodically reconsidered by a responsible official or employee for adequacy based on actual experience? | ______ | ______ | ______ | ______ |
3. Do procedures and policies exist to govern depreciation methods and practices? | ______ | ______ | ______ | ______ |
4. a. If costs are expected to be charged against federal grants, are depreciation policies or methods of computing allowances in accordance with the standards outlined in OMB circulars or grantor agency regulations? | ______ | ______ | ______ | ______ |
b. If not, is adjusting depreciation charged to grants appropriately? | ______ | ______ | ______ | ______ |
DO NOT WRITE IN THIS BOX --AUDITORS USE ONLY
Preliminary opinion on the above Internal Control matters: Property Good Fair Poor |