Office of Audit and Advisory Services
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Business Practices Assessment Checklist A “yes” answer
suggests an appropriate level of control is in place. A “no” answer
suggests that there is an internal control concern that may require
correction or improvement. Call the Office of Audit and Advisory
Services at 478-1652 if you have any questions or need assistance
in completing this checklist. Not all categories may be applicable
to your operations.
General Financial
YES NO
Departmental
staff are familiar with Georgia Southern’s Business Policies and
Procedures. Department
staff have access to departmental policies and procedures. The Department
has documented, department-specific policies and procedures. Department policies and
procedures are communicated to staff consistently and on a recurring
basis. The Department
designates a specific individual to reconcile monthly financial
reports to supporting revenue and expenditure documentation. The monthly financial
reconciliation is documented. At least one
specific individual is designated to review and approve departmental
financial transactions. Who? __________________________________________________________ The individual
who reviews and approves financial transactions is someone other
than the individual who reconciles the monthly financial reports. At least one
specific individual is designated to monitor actual expenditures
with budgeted amounts. Who? __________________________________________________________ _ The Department has an organized filing system
in place for financial documents and required supporting documentation
to assure easy retrieval.
_
Documents are retained for the appropriate time period as
prescribed by University policy, BOR policy, and the State Records
Management Act. The Department
maintains a central file location for the required documentation
related to grants (matching expenditures, time & effort reporting,
P-card documentation, etc)?
Cash
Handling
YES NO
The Department
issues standard University receipts (or approved alternative receipt
forms) when funds are collected by/received for the University. Receipts are
pre-numbered and used in sequential order.
The Department immediately prepares receipts when funds are
collected. A restrictive
endorsement is placed on incoming checks and money orders when they
are received. Receipts are
regularly reconciled to assure all receipts are accounted for. Sales registers
or point-of-sale-terminals record receipts from cash sales. All funds collected are deposited with the University Cashier’s Office. An employee who
does not have access to cash verifies daily totals from cash registers/POS
terminals. Collected funds are secured until deposited. Funds collected
are deposited in accordance with University deposit policies (generally
the next business day). Duties of opening
mail, processing cash received by mail, and account reconciliation
are separated among several individuals (i.e., one individual is
not responsible for two or more of these activities). Duties of collecting
cash, preparing receipts, and account reconciliation are separated
among several individuals (i.e., one individual is not responsible
for two or more of these activities). Individuals primarily
responsible for handling cash take at least five consecutive days
of leave (i.e., vacation) annually.
Safe combinations
and keys to cash boxes or files are restricted to a limited number
of essential employees. Safe combinations
and locks to files are changed periodically, and after turnover
in personnel assigned direct responsibility for the combinations
or locks. All external
bank accounts are established only through the University Controller. Payroll
YES NO
An employee’s supervisor or another individual
designated by the Department, who has specific knowledge regarding
the hours worked by the employee, signs time sheets. Hourly totals
on time sheets are recalculated for accuracy by the employee’s supervisor
or other designated individual. Estimating time
worked is prohibited (i.e., entering the hours worked on a time
sheet before these hours are actually worked). Employees prepare
leave slips whenever they are absent from work.
Each employee’s supervisor approves leave slips. Employee leave
records are balanced and verified by the employee and the appropriate
departmental representative on a monthly basis. A designated individual is responsible for
maintaining payroll documents Departmental
payroll documents are maintained in a secure location.
Individuals are
not allowed to supervise, or be supervised, by a relative. Personnel Action
forms for employee terminations and transfers are processed prior
to the effective date of termination or transfer, if practical. General
Expenditures
YES NO
Department employees
are not allowed to make personal long-distance phone calls. Monthly telephone
bills are reviewed for accuracy and possible unauthorized personal
long-distance phone calls. Staff members reimburse, by personal check
payable to the University, any personal long distance calls made
on University-provided phones. The traveler
requesting reimbursement signs travel vouchers. Travel vouchers
are submitted within 5 days of the conclusion of reimbursable travel. Travel vouchers
reflect only authorized business travel expenditures. Staff members
who are assigned University purchasing cards secure the card to
prevent unauthorized use. Purchasing card
supporting documentation is reviewed before purchasing card transactions
are approved for payment by department reconcilers. Purchases using
University funds are made only for business purposes. All purchases using University funds are delivered
directly to the department or Central Receiving (e.g., no purchases
are delivered to addresses other than the University). Cell phone bills
are reviewed monthly for appropriateness and business applicability
of calls made. Safeguarding
Assets
YES NO
A designated individual
in the Department is assigned property control responsibilities.
The property control individual is responsible for ensuring
that each piece of equipment has an inventory control tag, if applicable,
and may be found in its designated location. The Department
safeguards University assets through use of appropriate security
measures. The property
control individual documents University equipment (e.g., type, quality,
condition, etc.) removed from the department for off-campus work-related
activities. A checklist
is completed by a departmental individual to ensure that all University
property on loan to an employee (e.g., keys, credit/purchasing cards,
computers, cameras, cell phones, etc.) is returned prior to the
employee’s termination date or before transferring to another department.
The property control manager periodically
performs an inventory of equipment indicated on the University’s
inventory listing for the unit.
Administration
of Sponsored Programs
YES NO
At least one individual
in the Department has been trained to administer external sponsored
programs (i.e., any program sponsored and funded by external agencies)
by knowledgeable Office of Research Services and Sponsored Programs
staff. The department administrator receives regular
(i.e., at least annual) refresher training related to management
of sponsored programs by knowledgeable Office of Research Services
and Sponsored Programs staff. The department administrator is knowledgeable
in the applicable OMB circulars (A-133, A-110, A-21) relative to
appropriate management of sponsored program funds. The department administrator reviews each request
for reimbursement from grant funds for compliance with grant provisions
and OMB circulars. Effort reports are prepared on a regular basis
in accordance with University or sponsoring agency requirements. Effort reports reflect actual effort applied to sponsored programs,
and not payroll distribution or appointment status unless it is
identical to actual effort.
Effort reports are signed by the individual
whose effort is being reported, or by someone with direct knowledge
of the effort expended. Grant
funds are expended as authorized by the sponsoring agency and University
rules.
Equipment purchases using grant funds are made
in accordance with sponsoring agency and federal rules. Change
and Petty Cash Funds
YES NO
Change
funds are balanced daily to ensure cash equals the fund balance. Change funds are audited on a regular, unannounced
basis by an individual other than the fund custodian. Employees are prohibited from using change funds
to make loans (IOU’s), or to cash personal or payroll checks. The change fund custodian reimburses the fund
on at least a monthly basis through the University cashier for any
‘overs’ or ‘shorts’ accumulated during the month. Change funds are kept locked in a secure location
except when being used to accept funds or transact business (i.e.,
a locked drawer out of public view during business hours). The change fund authorized balance is assessed
at least annually for the appropriateness of the assigned fund (e.g.,
not too large or too small.) Accounts
Receivable
YES NO
The Department has documented accounts receivable
polices and procedures.
The
Accounting department and Controller’s Office have approved the
Department policies, practices, and procedures for accounts receivable. Accounts receivable collection and accounts
receivable recording duties are performed by different individuals.
A summary of total cash received is reconciled
to total cash posted on a daily basis. Someone other than the accounts receivable clerk/processor
approves credit memos or adjustments to accounts.
An edit report of all
non-cash adjustments to accounts receivable is produced and reviewed
monthly by someone other than the accounts receivable clerk/processor. Accounts receivable are billed at least monthly. An aging of accounts receivable is prepared
at least monthly. Follow-up actions and collection policies and
procedures for delinquent accounts are documented. The Department has a documented policy for managing
the write-off of delinquent accounts. Accounts receivable referred to collection agencies
are written off the active accounts receivable at the time of referral. Write-offs of accounts receivable are approved
by someone other than accounts receivable clerk/processor Miscellaneous
Department Operations
YES NO
The Department
has an up-to-date organizational chart that depicts employees’ current
responsibilities and reporting relationships. The Department
has a policy detailing the delegation of duties when employees are
absent. The Department maintains written job descriptions
for each staff member and updates them as needed. The Department has processes in place to ensure
that staff receive the training necessary to do their job to the
best of their ability. The Department
has periodic staff meetings in which relevant information is communicated
within the unit. Information
Technology Management
YES NO
Each person in
the Department with system access is assigned a unique (not shared)
user ID. Staff members
in the department keep their computer log-in I.D.’s and passwords
secret. Staff members
log in to secure systems only under their own, unique I.D. and/or
password. Staff members
change their passwords on a regular basis?
Files on personal
computers in the Department are backed-up on a regular basis. The Department,
if applicable, maintains the appropriate individual/site licenses
for each piece of program software that is installed or used on
Department personal computers.
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