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NoRTEC FINANCIAL ACCOUNTING INTERNAL CONTROLS

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NoRTEC FINANCIAL ACCOUNTING INTERNAL CONTROLS Powered By Docstoc
					   NoRTEC
   FINANCIAL ACCOUNTING, INTERNAL
   CONTROLS & PROCUREMENT CLIENT
   QUESTIONNAIRE




Contractor: _________________________________


Program Year:_______________________________
Preparer’s Name: ____________________________
Preparer’s Title: _____________________________


Preparer’s Signature: ________________________


Date: ______________________________________




Apr-11Fiscal Monitoring Questionnaire             Page 1 of 13
1.      Are you aware of, and have access to, WIA/ARRA regulations and
        NoRTEC policies and contracts?


2.      Have any unallowable costs been charged to the WIA/ARRA program?


3.      Approximately what percentage of the organization's income comes from
        NoRTEC funds? ________%


4.      Does the accounting system provide for accumulating and recording
        accurate expenditures and receipts by contract, title and fund source?


5.      Does the accounting system provide for accumulating and recording
        accurately direct participant expenditures by participant, by funding source,
        and by cost category?


6.      Does the accounting system provide for accumulating and recording
        accurately total organizational expenditures against an annual line-time
        budget?


7.      Are expenditures reports prepared on an accrual basis?


8.      Are NoRTEC bank deposits covered by the Federal Deposits Insurance
        Corporation (FDIC)?


9.      Do you have a source of funds to make reimbursement for costs that might
        be disallowed?


10.     What will be the source of reimbursement? Is it acceptable?


11.     How long are financial records retained? __________ years.


12.     Is there a written cost allocation plan describing the general methodology
        and rationale for distributions of costs?


      a) Does the plan include all joint costs to be allocated under the plan?


      b) Is the plan supported by formal accounting records and documentation?


Apr-11Fiscal Monitoring Questionnaire                                      Page 2 of 13
13.     Are W-4 forms on file for each employee?


14.     Are cumulative sick leave and vacation time accrual records kept?


15.     Are time sheets signed by the employee and approved by the supervisor?


16.     Are payments to individuals based on actual hours worked?


17.     Are gross wages computed using an approved rate of pay?


18.     Are there controls to prevent loans to non-NoRTEC programs from
        NoRTEC funds?


19.     Are there any current equipment, property, or service leases or
        agreements? Are payments in conformance with the agreements


20.     Have the following items been charged to NoRTEC funds?


      a) Costs resulting from violations of, or failure to comply with Federal, State,
         or local laws and regulations? Fines? Penalties?


      b) Back pay, unless it represents additional pay for NoRTEC services
         performed for which the individual was underpaid.


      c) Entertainment costs?


      d) Bad debts expense?


      e) Insurance policies offering protection against debts established as a result
         of an audit of NoRTEC funds?


      f) Legal expenses for the prosecution of claims against the Federal
         government?


      g) Buildings, Capital Assets?



Apr-11Fiscal Monitoring Questionnaire                                       Page 3 of 13
      h) Contributions to a contingency reserve or any similar provision for
         unforeseen events?


      i) Rent/lease of real property or equipment from individuals with less-than-
         an-arms-length-relationship (employee, Board of Directors, Board
         Member, (or their immediate family))? If yes, what was the methodology
         for determining costs?


      j) Lobbying costs or any costs related to any activity designed to influence
         legislation or appropriations pending before the Congress of the United
         States?


      k) Legal expenses for the prosecution of claims against the Federal
         Government, including appeals to an Administrative Law Judge?


      l) Interest Costs, except as provided for as part of an allowable rent or lease
         agreement?


21.     Are the accounting system and accounting procedures uniform for all
        operating programs? Any exceptions?


22.     Are all accounting source documents prepared and signed in ink (time
        sheets, vouchers, travel claims, etc.)?


23.     How and where are fiscal records retained? Safe place? Limited access?


24.     Do personnel policies limit maximum sick leave and vacation payable?


      a) Is vacation leave and sick leave accrued on an annual basis?


      b) Are procedures in place to cover vacation leave and sick leave liabilities in
         the event of program closure?


25.     Are any NoRTEC activities subcontracted? Subcontractor, type, amount?


26.     Are any of the subcontractors considered WIA subrecipients?




Apr-11Fiscal Monitoring Questionnaire                                      Page 4 of 13
27.    If so, have those subrecipients been monitored according to WIA/ARRA
       regulations?


28.    Are there any subcontracts valued at over $50,000? NoRTEC authorized?


29.    How often does the Board meet?


30.    Does the Board review and approve policies and procedures?


31.    Does the Board review and approve an annual operating budget and
       budget updates?


      a) Date of annual budget approval?


      b) Last update approval?


      c) Does the budget reflect all NoRTEC funding?


32.    Does the Board review and approve all contracts?


33.    Does the Board review and approve expenditures?


34.    Do Board reports show expenditures by contract and title?


      a) YTD comparison to budget?


      b) Line-item?


35.    Are there any investigations, audit findings, or litigation (current or pending)
       which might affect organizational activity or fiscal abilities?


36.    When is the audit of the current fiscal year scheduled?


37.    How does the subcontractor ensure any disallowed costs will be repaid?




Apr-11Fiscal Monitoring Questionnaire                                       Page 5 of 13
38.   How does the subcontractor ensure audits of subcontractors are performed
      annually ($300,000 or more)?


39.   Does the subcontractor have any current subcontractors subject to annual
      audit requirements?


40.   Has the subcontractor entered into any personal services contracts in
      excess of $50,000 in the last year? List.


41.   Were NoRTEC funds used for payments for these services? If yes, was the
      contract authorized by NoRTEC? NoRTEC amount charged? How
      procured?


42.   Were there any findings from the prior fiscal monitoring? List.


43.   Have these findings been resolved? Explain.


44.   Are there any findings from previous fiscal monitoring to be re-reviewed
      during this monitoring? List.


45.   Were there any findings, questioned or disallowed costs in the last audit?
      List.


46.   Have these findings been resolved? Explain.


47.   Are there any audit findings to be re-reviewed during this monitoring? List.


48.   Is subcontractor's written Procurement Policy in compliance with NoRTEC
      requirements?


49.   Is the written procedure for the maintenance and retention of accounting
      records in conformance with NoRTEC requirements?


50.   Is the subcontractor's Property Management Policy in compliance with
      NoRTEC requirements?


51.   Is all NoRTEC property tagged? Date of last physical inventory?


Apr-11Fiscal Monitoring Questionnaire                                    Page 6 of 13
52.    Has the subcontractor disclosed all PIC/GB financial interests in compliance
       with NoRTEC requirements?


53.    Does the subcontractor have a written conflict-of-interest policy?


54.    Does the subcontractor have a written debt collection policy?


55.    Does the subcontractor have a written policy which addresses non-
       NoRTEC use of NoRTEC equipment? Does the policy identify
       determination of use charges? Are there any current non-NoRTEC users?
       Have use fees been appropriately determined, collected, credited to
       NoRTEC funds?


56.    Has the organization been debarred or suspended by any Federal or State
       funding source?


57. Disbursement Procedures

58.    Are there written disbursement procedures?


59.    How is access to accounting records controlled?


60.    Who has access and what is necessary to gain access?


      a) manual records:


      b) automated records:


61.    What is the policy on mandatory vacations or rotation of duties among
       accounting personnel?


62.    Do individuals with check signing authority have access to accounting
       records?


63.    Where are blank checks and signature machines kept? Who has access to
       them?



Apr-11Fiscal Monitoring Questionnaire                                       Page 7 of 13
64.   Are there any automatic teller cards issued? Where are they kept and how
      are they controlled?


65.   Can authorized signers sign their own expense or payroll checks?


66.   How many signatures are required on a check? __________


67.   When a person is no longer authorized to sign checks, what action is
      taken?


68.   How are long-term outstanding checks handled?


69.   How are undelivered checks handled?


70.   How are voided checks handled?


71.   How do you handle situations when there is an immediate need to disburse
      a check but the authorized signers are not available?


72.   Under what circumstances are checks signed in advance?


73.   When can checks be made out to "cash" or "bearer"?


74.   When can disbursements be made other than by check?


75.   Are funds sometimes transferred (other than by writing checks) from one
      bank account to another? If so, what documentation is required to support
      the transfer?


76.   (If multi-funded) When you run short of funds for a project, do you make
      internal short-term loans to it? Are these transfers considered to be loans?
      Are there written procedures guiding these transactions?


77.   Do salaries and bonuses of any employees for WIA and ARRA programs
      exceed the 2009 $177,000 limit under Public Law 109-234? (Please
      provide a list of the five highest paid employees and salaries.)



Apr-11Fiscal Monitoring Questionnaire                                   Page 8 of 13
78.    Do you have policies with respect to salary advances or loans to staff
       members


      a) How are advanced or loaned funds protected?


      b) Can salary advances exceed earnings-to-date?


79.    How do you ensure that an invoice is not paid twice?


80.    How do you ensure that planned expenditures are allowable?


81.    How often is the bank statement reconciled?


82.    How often are the subsidiary accounts reconciled with the general ledger?


83.    How often are other accounts/records/systems reconciled?


84.    Cost allocation plan available?


85.    Which costs are sometimes shared by different projects/funding sources?


86.    Were there any major NoRTEC purchases in the past three years that are
       also used by a non-NoRTEC project?


87.    How do you ensure that expenditures, especially non-routine ones, are
       charged to the correct project/contract?


88.    Who actually makes this decision and/or how is this information
       communicated to the bookkeeper?


89.    How are shared administrative costs handled?




Apr-11Fiscal Monitoring Questionnaire                                    Page 9 of 13
90.   Which staff members, other than those charged exclusively to indirect cost,
      work for more than both NoRTEC and non-NoRTEC projects?


91.   What is the basis of allocating their salaries and benefits?


92.   What is the basis for allocating use of space?


93.   What is the basis for allocating utilities costs?


94.   What is the basis for allocating telephone expenses?


95.   What is the basis for allocating travel, supplies, and other routine
      expenses?


96.   What are the policies regarding travel advances and their reconciliation?


97.   What procedures are required for local travel for both use of personal and
      organization-owned vehicles?
      What procedures are required for local travel for both use of personal and
      organization-owned vehicles? Allowance: __________ ¢ per mile for
      owner's use __________ ¢ per mile for organization owned vehicle.



98. Do you ( ) rent or ( ) own the building(s) used to house NoRTEC activities?
      (If space is rented) Who owns the building(s)? Why was the space selected
      and how was the amount of rent determined?


99.   Is there any type of relationship between the landlord and anyone on the
      NoRTEC staff, or anyone at NoRTEC. Does anyone on the WIB or the
      Governing Board of the subcontractor have any financial interest in the
      building(s)? Are the individual owners of the building known?


100. (If the building is owned by the contractor) How is the organization
     compensated for use of its building(s) and how was this amount
     determined?


101. Was the building constructed with Federal funds?




Apr-11Fiscal Monitoring Questionnaire                                    Page 10 of 13
102. Is the building depreciated?


103. Is the location and size/ structure of the building appropriate for NoRTEC
     programs and participants?


104. Has subcontractor purchased any equipment, in the last year, using
     NoRTEC funds?


   a) List items with a unit value greater than $5,000




   b) For items over $50,000 was NoRTEC approval received?


105. Does the Board authorize equipment purchases? Value? Who authorizes
     non-Board approved equipment purchases? Value?


106. Has any NoRTEC equipment been lost or stolen in the last year? Was
     NoRTEC notified? Was there a police report?


107. Has subcontractor maintained all equipment procurement/purchase
     documentation for three years from date of disposal?


108. Does the subcontractor maintain general liability of at least $1,000,000?
     NoRTEC named insured?


109. Does the subcontractor maintain property coverage sufficient to cover
     NoRTEC assets? NoRTEC named insured?


110. Does the subcontractor maintain non-owned/owned automobile liability of at
     least $500,000? NoRTEC named insured?


111. Does the subcontractor maintain a $25,000 fidelity bond/employee
     dishonesty coverage for all employees handling funds?


112. Does the subcontractor maintain worker's compensation coverage in
     accordance with State requirements?


Apr-11Fiscal Monitoring Questionnaire                                 Page 11 of 13
 113. Does the subcontractor maintain Directors & Officers Liability or Audit
      Exception Insurance? If yes, what funds are used to pay the premium?




           INSURANCE COVERAGE WORKSHEET

                            Carrier      Amount of   Cost           Date           Paid
                                         Coverage                                 Check #

                                                            Start          End


General Liability


Property Coverage


Auto Liability


Fidelity Bond*


Worker's Comp


Directors & Officers


* Staff members covered :




 Apr-11Fiscal Monitoring Questionnaire                                      Page 12 of 13
114. (If multi-funded) Do you maintain a cash control ledger which provides the
     daily balance in the NoRTEC account?


115. Is this done separately for different NoRTEC titles?


116. Have you established a cash forecasting system that reflects daily cash
     needs on a monthly basis?


117. Who is responsible for monitoring and testing cash position? How is it
     done?




Apr-11Fiscal Monitoring Questionnaire                                Page 13 of 13

				
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