YES | NO | N/A | Notes Reference | ||
PART A: This section should be completed by all applicable agencies | |||||
PROCUREMENT (Purchasing) | |||||
Statutory References - CGS 4-98 | |||||
1. Are separate individuals responsible for the following functions? | |||||
a. Requisitioning | ______ | ______ | ______ | ______ | |
Requisition Approval | ______ | ______ | ______ | ______ | |
Purchasing | ______ | ______ | ______ | ______ | |
b. Receiving | ______ | ______ | ______ | ______ | |
c. Invoice Preparation and Processing | ______ | ______ | ______ | ______ | |
d. Accounts Payable | ______ | ______ | ______ | ______ | |
e. General Ledger Functions | ______ | ______ | ______ | ______ | |
Disbursement Approval | ______ | ______ | ______ | ______ | |
In the absence of compensating controls, if you answered "NO" to more than one item on this list, there is an indication of lack of segregation of duties and your internal control structure may be weak. | |||||
Procedural Controls | |||||
Requisitioning: | |||||
2. Is the initiation of goods and services purchases properly approved using requisitions bearing the authorization of officials designated for this duty? | ______ | ______ | ______ | ______ | |
3. Are prenumbered requisitions used and accounted for? | ______ | ______ | ______ | ______ | |
4. Is the appropriation to be charged on the purchase requisition indicated by the person requesting the purchase? | ______ | ______ | ______ | ______ | |
5. Before commitment, does the accounting or budget department verify that there are sufficient unobligated funds remaining under the appropriation to meet the proposed expenditures? | ______ | ______ | ______ | ______ | |
6. Do technical specifications accompanying requests for special purpose (nonshelf items) materials or personal services? | ______ | ______ | ______ | ______ | |
Purchasing: | |||||
7. Are purchase orders used for all purchases? | ______ | ______ | ______ | ______ | |
8. Are purchases made in accordance with applicable legal requirements? | ______ | ______ | ______ | ______ | |
9. Are purchasing authorizations structured to give appropriate recognition to the nature and size of purchases and the experience of purchasing personnel? | ______ | ______ | ______ | ______ | |
10. Do procedures exist to prohibit splitting orders to avoid higher levels of approval? | ______ | ______ | ______ | ______ | |
11. Are competitive bids required and bid copies retained on file? | ______ | ______ | ______ | ______ | |
12. Do procedures exist for public advertisement of nonshelf item procurements in accordance with legal requirements, if any? | ______ | ______ | ______ | ______ | |
13. Are an adequate number of price quotations obtained before placing orders not subject to competitive bidding? | ______ | ______ | ______ | ______ | |
14. Are price lists and other appropriate records of price quotations maintained by the purchasing department? | ______ | ______ | ______ | ______ | |
15. Are purchase orders: | |||||
a. Prenumbered and used in sequence? | ______ | ______ | ______ | ______ | |
b. Initiated on the basis of purchase requisitions approved by a responsible employee? | ______ | ______ | ______ | ______ | |
16. Are copies of purchase orders distributed to: | |||||
a. Vendors? | ______ | ______ | ______ | ______ | |
b. The acquiring department and placed in historical vendor files? | ______ | ______ | ______ | ______ | |
c. Accounting? | ______ | ______ | ______ | ______ | |
d. Receiving? | ______ | ______ | ______ | ______ | |
e. Others? (list) | ______ | ______ | ______ | ______ | |
_______________________________________ | ______ | ______ | ______ | ______ | |
_______________________________________ | ______ | ______ | ______ | ______ | |
17. Are purchase orders required to have independent approval that: | |||||
a. An appropriation exists for the purchase contemplated? | ______ | ______ | ______ | ______ | |
b. A sufficient amount is available in the appropriation account to which the purchase is chargeable? | ______ | ______ | ______ | ______ | |
18. Is the numerical sequence of purchase orders checked and appropriate action taken on those open beyond the usual processing time by an employee independent of initiation of purchases? | ______ | ______ | ______ | ______ | |
19. Is there is a proper cutoff of purchases at the end of the fiscal year? | ______ | ______ | ______ | ______ | |
20. Are changes to contracts or purchase orders subjected to the same controls and approvals as the original agreements? | ______ | ______ | ______ | ______ | |
21. Is an adequate record of open purchase orders and agreements maintained? | ______ | ______ | ______ | ______ | |
22. Do procedures exist that prohibit or adequately control purchases made for the accommodation of employees? | ______ | ______ | ______ | ______ | |
Receiving: | |||||
23. Are receiving reports prepared for all purchased goods, and is the receiving department properly notified? | ______ | ______ | ______ | ______ | |
24. Are steps taken to ensure that all goods received are accurately counted and examined to see that they meet quality standards? | ______ | ______ | ______ | ______ | |
25. With respect to procurements of special purpose materials, services, or facilities, is a State technical representative assigned to monitor and evaluate contractor performance and approve receipt of services? | ______ | ______ | ______ | ______ | |
26. Do procedures exist for the filing of claims against carriers or vendors for shortages or damaged materials? | ______ | ______ | ______ | ______ | |
27. Does the receiving department report shortages, rejections, etc., to: | |||||
a. Purchasing? | ______ | ______ | ______ | ______ | |
b. Accounting? | ______ | ______ | ______ | ______ | |
28. Is a permanent record of material received maintained by the receiving department, along with a permanent chronological record of receipts? | ______ | ______ | ______ | ______ | |
29. Are copies of receiving reports sent directly to purchasing, accounting and, if appropriate, inventory record keeping? | ______ | ______ | ______ | ______ | |
30. Are controlling receiving reports accounted for numerically (or otherwise) to ensure that all are reported to the accounting department? | ______ | ______ | ______ | ______ | |
31. a. If a receiving department is not used, are adequate procedures in place to ensure that goods that have been paid for have been received? | ______ | ______ | ______ | ______ | |
b. Is the verification that goods have been received and meet quality standards done by someone other than the individual approving payment? | ______ | ______ | ______ | ______ |
PAYABLES (Payments) | |||||
Statutory References - CGS 3-25, 3-112, 3-117, 4-69, 4-86, 4-89, 4a-71 | |||||
Invoice Processing: | |||||
1. Are there invoice processing procedures that ensure that: | |||||
a. Copies of purchase orders and receiving reports are received directly from issuing departments? | ______ | ______ | ______ | ______ | |
b. Invoice quantities, prices, and terms are compared with those indicated on purchase order? | ______ | ______ | ______ | ______ | |
c. Invoice quantities are compared with those indicated on receiving reports? | ______ | ______ | _____ | ______ | |
d. Accuracy of calculations is checked,as appropriate? | ______ | ______ | ______ | ______ | |
2. a. Are all copies of vendors' invoices: | |||||
Routed directly to accounting from the mail room? | ______ | ______ | ______ | ______ | |
Duplicate invoices are destroyed or stamped to indicate that they are duplicates? | ______ | ______ | ______ | ______ | |
b. Are original vendors' invoices: | |||||
Invoiced and listed/recorded in an invoice/purchases register immediately on receipt? | ______ | ______ | ______ | ______ | |
Maintained in the accounting department and only copies distributed when required? | ______ | ______ | ______ | ______ | |
3. Do procedures exist to ensure that the accounts payable system is properly accounting for unmatched receiving reports and invoices? | ______ | ______ | ______ | ______ | |
4. Do procedures exist for processing invoices that do not involve materials or supplies (for example, lease or rental payments, utility bills)? | ______ | ______ | ______ | ______ | |
5. Do procedures exist to ensure accurate account distribution of all entries resulting from invoice processing? | ______ | ______ | ______ | ______ | |
6. Is access to EDP master vendor file limited to employees authorized to make changes? | ______ | ______ | ______ | ______ | |
7. Does the accounting department maintain a current list of those authorized to approve expenditures? | ______ | ______ | ______ | ______ | |
8. Do procedures exist for submission and approval of reimbursement to employees for travel and other expenses? | ______ | ______ | ______ | ______ | |
9. Is control established by the accounting department over invoices received before releasing them for departmental approval and other processing? | ______ | ______ | ______ | ______ | |
10. Are the distribution of charges in the accounting department reviewed by a person competent to pass on the propriety of the distribution? | ______ | ______ | ______ | ______ | |
11. a. Are vouchers (CO-17 document type)invoices prenumbered and in numerical sequence? | ______ | ______ | ______ | ______ | |
b. Are invoices periodically checked byan employee independent of voucher preparation? | ______ | ______ | ______ | ______ | |
12. Are invoices (vouchers) reviewed and approved for completeness of supporting documents and required clerical checking by a senior employee? | ______ | ______ | ______ | ______ | |
13. In processing the invoice and related payable: | |||||
a. Are all data thereon checked to approved copies of the purchase order and receiving report? | ______ | ______ | ______ | ______ | |
b. Are all extensions, footings, discounts, and freight terms checked for accuracy as required by established policy? | ______ | ______ | ______ | ______ | |
c. Is the performance of (a) and (b) clearly indicated on the face of the invoice? | ______ | ______ | ______ | ______ | |
14. If an invoice is received from a supplier not previously dealt with, are steps taken to ascertain that the supplier actually exists? | ______ | ______ | ______ | ______ | |
15. Are payments made only on the basis of original invoices? | ______ | ______ | ______ | ______ | |
16. Is responsibility fixed for seeing that all cash discounts are taken and, if applicable, that exemptions from sales, federal excise, and other taxes are claimed? | ______ | ______ | ______ | ______ | |
17. Are differences in invoice and purchase order price, terms, shipping arrangements, or quantities referred to purchasing for review and approval? | ______ | ______ | ______ | ______ | |
18. Are partial deliveries recorded and followed up by the accounting department? | ______ | ______ | ______ | ______ | |
19. Are the accounting and purchasing departments promptly notified of returned purchases and are such purchases correlated with vendor credit advances? | ______ | ______ | ______ | ______ | |
20. Are debit memos for returned goods shortages, etc.: | |||||
a. Issued only on receipt of proper authorization? | ______ | ______ | ______ ______ | ||
b. Controlled numerically? | ______ | ______ | ______ | ______ | |
21. Are vendor debit balances periodically reviewed and collected? | ______ | ______ | ______ | ______ | |
22. Are the program and expenditure account to be charged reviewed for propriety and budget conformity? | ______ | ______ | ______ | ______ | |
23. Do responsible officials determine that restricted revenues are expended only for restricted purposes? | ______ | ______ | ______ | ______ | |
24. If applicable, do procedures exist to ensure that the reserve for encumbrances (obligations) is adjusted when invoices are prepared for payment? | ______ | ______ | ______ | ______ | |
Accounts Payable and Encumbrances: | |||||
25. Is there a monthly reconciliation of outstanding purchase orders to the reserve for encumbrances? | ______ | ______ | ______ | ______ | |
26. Is the recording encumbrance entries based only on approved purchase orders? | ______ | ______ | ______ | ______ | |
27. Do procedures exist to ensure that accounts payable and encumbrances are applied against the appropriate account? | ______ | ______ | ______ | ______ | |
28. Do procedures exist to ensure that department heads are notified of the payments made against accounts payable and encumbrances? | ______ | ______ | ______ | ______ | |
Common Ledger: | |||||
29. Are trial balances of reserve for encumbrances and accounts payable prepared regularly? | ______ | ______ | ______ | ______ | |
30. Does an employee other than the accounts payable clerk checking the footing and test the trial balances to the individual items as well as compare the total to the general ledger balance? | ______ | ______ | ______ | ______ | |
31. Are posting transactions between funds in all affected funds done in the same accounting period and on a timely basis? | ______ | ______ | ______ | ______ | |
Purchasing: | |||||
32. Are policies regarding conflicts of interest and business practice policies (code of conduct) established, documented, and distributed? | ______ | ______ | ______ | ______ | |
33. Are procedures for issuing and approving purchase orders and contracts established? | ______ | ______ | ______ | ______ | |
34. Are bid and performance bonds considered when awarding construction contracts? | ______ | ______ | ______ | ______ | |
35. Are selection criteria predetermined for awarding personal service or construction contracts and is adequate documentation of the award process required? | ______ | ______ | ______ | ______ | |
36. Are purchase prices reviewed periodically by a responsible employee independent of the purchasing department? | ______ | ______ | ______ | ______ | |
37. Are recurring purchases reviewed periodically and is the justification for informal rather than competitive bids documented? | ______ | ______ | ______ | ______ | |
38. Is a record of suppliers who have not met quality or other performance standards maintained by the purchasing department? | ______ | ______ | ______ | ______ | |
39. If practicable, is there rotation of contract or purchasing officer's areas of responsibility on a regular basis? | ______ | ______ | ______ | ______ | |
Invoice Procedures: | |||||
40. Are requests for progress payments under long-term contracts related to contractor's efforts and are they formally approved? | ______ | ______ | ______ | ______ | |
PROCUREMENT AND PAYABLES PART B: This section to be completed only by agencies that administer grants or entitlement payments. | |||||
Grants and Contracts: | |||||
1. Are procedures modified when grant or loan agreements and related regulations impose requirements that differ from the organization's normal policies? | ______ | ______ | ______ | ______ | |
2. Are procedures instituted to identify costs and expenditures not allowable under grant (federal/state) program before orders are entered? | ______ | ______ | ______ | ______ | |
3. Do contracts contain provisions for materials, services, or facilities acquired on other than a fixed price basis and for an audit of contractors' costs, with payments subject to audit results? | ______ | ______ | ______ | ______ | |
Grant and Entitlement Monitoring: | |||||
4. Are grants disbursed only on the basis of approved applications? | ______ | ______ | ______ | ______ | |
5. Are reporting and compliance requirements defined (e.g., in regulations) and communicated to grantees? | ______ | ______ | ______ | ______ | |
6. Do procedures exist to monitor grantee compliance with grant terms? | ______ | ______ | ______ | ______ | |
7. Are the financial operations of grantees subject to periodic and timely audit? | ______ | ______ | ______ | ______ | |
8. Does sufficiently timely monitoring of recipients exist to permit curtailment of any abuse before complete funds disbursement? | ______ | ______ | ______ | ______ | |
9. Are funds disbursed to grantees only on an as needed basis? | ______ | ______ | ______ | ______ | |
10. Is there a level of grant approval authority that appears appropriate? | ______ | ______ | ______ | ______ | |
11. Is the failure by grantees to meet financial reporting requirements investigated on a timely basis? | ______ | ______ | ______ | ______ | |
12. Are grantees required to evidence correction of previously detected deficiencies before approval of an extension or renewal of a grant? | ______ | ______ | ______ | ______ | |
13. Do entitlement procedures exist to ensure that statistics or data used to allocate funds are accurately accumulated (for example, census bureau forms)? | ______ | ______ | ______ | ______ | |
14. Are statements of recipient compliance with entitlement conditions required to be filed and are they reviewed by a responsible official? | ______ | ______ | ______ | ______ | |
15. Are audited financial statements or other compliance requirements of entitlement recipients reviewed on a timely basis and are unusual items investigated? | ______ | ______ | ______ | ______ |
DO NOT WRITE IN THIS BOX --AUDITORS USE ONLY
Preliminary opinion on the above Internal Control matters: Procurement and Payables Good Fair Poor |