YES | NO | N/A | Notes Reference | |
This section should be completed only by agencies that collect revenues. | ||||
RECEIVABLES AND REVENUES | ||||
Statutory References - CGS-3-17, 3-112, 3-114, 4-32, 4-33, and 4-69 | ||||
Segregation of Duties | ||||
1. Is the billing department completely separate from: | ||||
a. Usage measurement? | ______ | ______ | ______ | ______ |
b. Accounts Receivable? | ______ | ______ | ______ | ______ |
c. Collection functions? | ______ | ______ | ______ | ______ |
2. Are the responsibilities for maintaining detail accounts receivable records segregated from collections, general ledger posting, and all other cash functions? | ______ | ______ | ______ | ______ |
3. Are the collection, control, and deposit of funds activities segregated from maintaining accounting records? | ______ | ______ | ______ | ______ |
4. Are the responsibilities for entries in the cash receipts records segregated from those for general ledger entries? | ______ | ______ | ______ | ______ |
5. If EDP is used, is the principle of segregation of duties maintained within processing activities? | ______ | ______ | ______ | ______ |
Procedural Controls | ||||
License fees and permits | ||||
6. If annual payments are involved, do procedures exist to ensure that previous years' records are properly updated for new registrants and withdrawals? | ______ | ______ | ______ | ______ |
7. Are the updated records used as the basis for billing persons subject to payment? | ______ | ______ | ______ | ______ |
8. Are duties for initiating permit transactions segregated from those for account or collections? | ||||
9. Are current year receipts compared to those for prior years and reviewed by senior officials for explanations of variations. | ||||
Fines, forfeitures, and court fees | ||||
10. Are court and other records of payments due maintained and used as a basis for collections? | ______ | ______ | ______ | ______ |
11. Do procedures for control, issuance, and disposition of traffic violations exist to ensure that amounts due are assessed and collected? | ______ | ______ | ______ | ______ |
12. a. Do procedures exist for correlation of amounts collected with records of court proceedings? | ______ | ______ | ______ | ______ |
b. Are tickets for fines, arrests, etc. sequentially numbered revenues? | ______ | ______ | ______ | ______ |
Enterprise and other service revenues: | ||||
13. Are controls utilized that provide assurance that customer data base and, where appropriate, usage records are accurately maintained and amounts due are billed? | ______ | ______ | ______ | ______ |
14. If billing is based on usage, are service readings performed in a timely fashion? | ______ | ______ | ______ | ______ |
15. Are the assignments of meter readers rotated periodically? | ______ | ______ | ______ | ______ |
16. Do billing procedures provide for identification and investigation of unusual patterns of use? | ______ | ______ | ______ | ______ |
17. Are the duties for initiating billings segregated from those for accounting and collections? | ______ | ______ | ______ | ______ |
General | ||||
18. Is billing of taxes, special assessments and fees done in a timely fashion? | ______ | ______ | ______ | ______ |
19. Do procedures exist for revenue collection to ensure timely payment of amounts due? | ______ | ______ | ______ | ______ |
20. Are rates for taxes, fines, fees, and services periodically reviewed and approved by the proper governing body? | ______ | ______ | ______ | ______ |
21. Are programs of tax exemption or relief periodically reviewed and approved by the proper governing body? | ______ | ______ | ______ | ______ |
22. Are tuition rate schedules authorized by the appropriate governing body? | ______ | ______ | ______ | ______ |
23. Do procedures exist to ensure that the accounting department is notified in a timely manner when tax, service, or other billings or claims are prepared and rendered? | ______ | ______ | ______ | ______ |
24. Are numerical or batch-processing controls maintained over tax, fees, service, or other billings? | ______ | ______ | ______ | ______ |
25. Are controls maintained over the billing of miscellaneous revenues (for example, sidewalk replacement and tree removal assessments)? | ______ | ______ | ______ | ______ |
26. Do procedures exist to prevent the interception or alteration of billings or statements by unauthorized persons after preparation but before they are mailed? | ______ | ______ | ______ | ______ |
27. Is there prompt investigation of billings disputed by taxpayers or service recipients by an individual independent of receivables record keeping functions? | ______ | ______ | ______ | ______ |
28. Do controls exist that provide reasonable assurances that restricted revenues are expended only for restricted purposes? | ______ | ______ | ______ | ______ |
Collection | ||||
29. Do procedures exist so that incoming checks are restrictively endorsed as soon as received? | ______ | ______ | ______ | ______ |
30. Do procedures exist that provide reasonable assurances that interest and penalties are properly charged on delinquent taxes, fees, or charges for service? | ______ | ______ | ______ | ______ |
31. Do procedures exist that provide for the timely filing of liens on property for nonpayment of claims in all cases permitted by law? | ______ | ______ | ______ | ______ |
32. Are controls maintained surrounding the collection, timely deposit, and recording of collections in the accounting records for each collection location? | ______ | ______ | ______ | ______ |
33. Is there timely notice of cash receipts from separate collection centers to general accounting department? | ______ | ______ | ______ | ______ |
34. : | ||||
a. If payments are made in person, are receipts used for payment? | ______ | ______ | ______ | ______ |
b. Are they also used to account for and balance such receipts to collections | ______ | ______ | ______ | ______ |
35. Is there segregation and timely remittance of amounts collected on behalf of other governments? | ______ | ______ | ______ | ______ |
36. Do procedures exist for assuring timely receipt of taxes and fees collected by another unit of government, and reviewing such amounts for reasonableness? | ______ | ______ | ______ | ______ |
37. Are all non-routine entries and disputed items posted to receivable subsidiary ledgers and subject to the approval of a responsible official? | ______ | ______ | ______ | ______ |
38. Are individual accounts in all receivable ledgers periodically aged and reviewed? | ______ | ______ | ______ | ______ |
39. Are delinquent accounts reviewed and collection action taken on a regular basis? | ______ | ______ | ______ | ______ |
40. Are write-offs or other reductions of receivables authorized in accordance with applicable legal requirements and approved by responsible official who is not associated with detail receivable and cash functions? | ______ | ______ | ______ | ______ |
41. Do procedures exist that provide for the execution of all legal remedies to collect charged-off or uncollectible accounts, including tax sale of property, liens, etc.? | ______ | ______ | ______ | ______ |
42. Are credit balances reviewed by responsible officials before a refund is made? | ______ | ______ | ______ | ______ |
43. Are all refunds made by check? | ______ | ______ | ______ | ______ |
44. Are charge vouchers and/or credits authorized and transmitted to bookkeeping promptly? | ______ | ______ | ______ | ______ |
45. Are all credit memoranda prenumbered and reviewed and approved by a responsible official? | ______ | ______ | ______ | ______ |
Accounts Receivable Record keeping | ||||
46. Are controls maintained in the system that provide assurances that individual receivable records are posted only from authorized source documents? | ______ | ______ | ______ | ______ |
47. Are aggregate collections reconciled with postings to individual receivable accounts? | ______ | ______ | ______ | ______ |
48. Where appropriate (for example, in proprietary funds), are statements of account mailed regularly to all debtors or customers? | ______ | ______ | ______ | ______ |
49. Are periodic statements from outsiders or data resulting from independent requests by the State or County (e.g., brokers position listing, etc.) reconciled on receipt to detail records? | ______ | ______ | ______ | ______ |
General Ledger | ||||
50. Are trial balances of individual receivable accounts prepared regularly and reconciled? | ______ | ______ | ______ | ______ |
51. Are surprise counts of evidence of ownership periodically made and reconciled to detail records and other controls? | ______ | ______ | ______ | ______ |
52. Are receivable subsidiary ledgers (trial balances) balanced monthly to control accounts? | ______ | ______ | ______ | ______ |
53. Are aged accounts receivable balances periodically reviewed by supervisory personnel? | ______ | ______ | ______ | ______ |
54. Do procedures exist that provide for timely and direct notification of the accounting department of billings and collection activity? | ______ | ______ | ______ | ______ |
Intergovernmental Grant and Entitlement Monitoring Grants | ||||
55. Is responsibility properly fixed for specific grant activities? | ______ | ______ | ______ | ______ |
56. Is there a central grants monitoring activity? | ______ | ______ | ______ | ______ |
57. Are there procedures in the finance department to monitor compliance with: | ||||
a. Financial reporting requirements? | ______ | ______ | ______ | ______ |
b. Use of funds and other conditions in accordance with grant terms? | ______ | ______ | ______ | ______ |
c. Timely billing of amounts due under grants? | ______ | ______ | ______ | ______ |
58. Is accounting for grant activity separated from the accounting for locally funded activities? | ______ | ______ | ______ | ______ |
59. Does a system exist for obtaining grantor approval before incurring expenditures in excess of budgeted amounts or for unbudgeted expenditures? | ______ | ______ | ______ | ______ |
60. Is the processing grant revenues and disbursements under the same degree of controls applicable to the organization's other transactions (budget, procurement, etc.)? | ______ | ______ | ______ | ______ |
61. Are intergovernmental revenues consistently accrued each fiscal year in accordance with GAAP? | ______ | ______ | ______ | ______ |
62. Do subgrantee agreements include requirements that the subgrantee comply with primary grant agreement conditions as well as grantee's standards? | ______ | ______ | ______ | ______ |
63. Do reasonable procedures and controls exist to provide assurances of compliance with recipient eligibility requirements established by grants? | ______ | ______ | ______ | ______ |
64. Is an indirect cost allocation plan established and approved? | ______ | ______ | ______ | ______ |
65.. Has audit cognizance been established for rates generated by the plan? | ______ | ______ | ______ | ______ |
66. Are the reports issued to grantor agencies reconciled with the accounting records? | ______ | ______ | ______ | ______ |
Entitlements | ||||
67. Is the amount of funds received compared with the amount anticipated by a responsible official and are unusual variances investigated? | ______ | ______ | ______ | ______ |
68. Do procedures exist to ensure that funds received are expended in accordance with legal requirements and spending restrictions? | ______ | ______ | ______ | ______ |
69. Are any statistical or data reports that form the basis for revenue distribution reviewed by a responsible official before submission? | ______ | ______ | ______ | ______ |
Interfund Receivables and Payables | ||||
70. Are interfund receivables and payables balanced monthly? | ______ | ______ | ______ | ______ |
71. Are interfund receivables and payables classified as current and long-term as appropriate? | ______ | ______ | ______ | ______ |
72. Are interfund receivables and payables properly authorized? | ______ | ______ | ______ | ______ |
Other Receivables | ||||
73. | ||||
a. Are reimbursement claims are filed or bills prepared on a timely basis? | ______ | ______ | ______ | ______ |
b. Are claims or bills reviewed for accuracy by an individual other than the preparer? | ______ | ______ | ______ | ______ |
c. Are all receivables recorded in the records at the time a claim is filed or at the time service is billed? | ______ | ______ | ______ | ______ |
d. Is the receivable ledger reconciled to the general ledger periodically, preferably monthly? | ______ | ______ | ______ | ______ |
e. Are uncollectible receivables subject to approval by the governing body before being written off? | ______ | ______ | ______ | ______ |
f. Is a periodic review made of all uncollected items and is a report prepared for the governing body? | ______ | ______ | ______ | ______ |
g. Are credit balances in receivables properly reviewed and followed up? | ______ | ______ | ______ | ______ |
Notes Receivable | ||||
74. | ||||
a. Do acceptance, terms, renewals or extensions, write-offs, and release of collateral on notes require prior approval of a designated official or the governing body? | ______ | ______ | ______ | ______ |
b. Are detailed records of notes receivable maintained by designated employees separate from the physical custodianship for such notes? | ______ | ______ | ______ | ______ |
c. Are periodic physical counts made and reconciled to control notes receivable by personnel independent of custodial and recording functions? | ______ | ______ | ______ | ______ |
d. Is access to and responsibility for custody of notes and collateral vested in a designated employee? | ______ | ______ | ______ | ______ |
e. Is a schedule of notes delinquent as to interest or principal periodically prepared and reviewed by a responsible employee? | ______ | ______ | ______ | ______ |
f. Are reconciliations periodically prepared for income accrued on notes and compared with detailed records and interest rates? | ______ | ______ | ______ | ______ |
DO NOT WRITE IN THIS BOX --AUDITORS USE ONLY
Preliminary opinion on the above Internal Control matters: Receivables and Revenues Good Fair Poor |