Sales Tax Laws and the State of Georgia Book

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Sales Tax Laws and the State of Georgia Book Powered By Docstoc
					                                                                                        INSTRUCTIONS
Please select the Auditable area (TAB):
           ACCOUNTS PAYABLE, ACCRUED LIABILITIES, AND OTHER LIABILITIES
           ACCOUNTS RECEIVABLE
           CAPITAL ASSETS
           CASH HANDLING & MANAGEMENT
           CLOSING PROCESS
           FINANCIAL AID
           GENERAL

Within each section, the following columns are:
           Risk Area (see above)
           Sub Area (For instance "Payroll" or "Purchasing" in AP, not all risks areas have sub areas.)
           Risk (What could happen if Control in place were eliminated or not completed)
           Control Name (What is in place to mitigate the potential Risk)
           Question (What you should be able to answer on an monthly basis. Is the Control being completed/monitored/addressed?)
           DTAE/SAO P&P (The policy or procedure behind the control in place. Please note that this is NOT a comprehensive listing)
           Link(s) (Website to view policy/procedure)
           Objective (Why these controls are important to completing the objectives f DTAE and the Technical College)
           Months completed (July - June) (Sign/initial by individual in charge of governance that the control took place that month)

TO DO:
           Simply be prepared to answer all questions within the auditible area
           On those applicable Control areas, initial, or otherwise provide documentation to your auditor that the risk has been addressed by either:
                Accepting the risk
                Preventing or reducing the risk to an acceptable level
                Avoiding the risk

Additional information
            Risk Universe (Other areas of risk not specifically addressed by SAS 112)

           All controls area's are combined within the worksheet titled "All Key Contol Documentation". These are sorted by the frequency that they should be addressed.
           The codes are as follows:
           E = Each Occurance
           M = Monthly
           O = Ongoing process
           P = Periodically
           PA = Pre Audit Questions for which you should have the answers available upon our (or other audit team) arrivals
           Q - Quarterly
           W - Weekly
           Y - Yearly / Annually
Reference:
http://www.aicpa.org/download/members/div/auditstd/AU-00325.PDF
            Key Control Documentation                                                                                                                                                                                                                                                                                        Fiscal Year 2006/07
                                                                                                                                        Technical College __________________                                                                                                                                               Note: Initial and Date
                                                                                                                                                                                                                                                                                                                       the box to document step


#           Risk Area                                    Sub Area                                   Risk                      Control Name                                      Question                                                                 DTEA/SAO P&P                                                                  Link(s)
                                                                                                                           Financial system                                                                          SECTION: THREE – ACCOUNTING PROCEDURES
                                                                                                                                                                                                                                                                                                                       http://www.dtae.org/adminservices/
    ACCOUNTS PAYABLE, ACCRUED                                                                                              prevention of duplicate      Is there a system for comparing the invoice, purchase        TOPIC: NOTES AND BONDS PAYABLE, UNAMORTIZED BOND PREMIUMS AND
                                        ACCOUNTS PAYABLE: ACCOUNT RANGE: 200000-                                                                                                                                                                                                                                       acct-
E   LIABILITIES, AND OTHER                                                       Duplicate payments                        invoices                     order, and receiving report prior to entry in the accounts   DISCOUNTS
                                        202999, 210000, 214000-215999 and 220                                                                                                                                                                                                                                          procedures/ManualJournalVoucher
    LIABILITIES                                                                                                            System edit for duplicate    payable record and issuance of payment?                      Under the modified accrual basis of accounting, expenditures are usually recognized at the
                                                                                                                                                                                                                                                                                                                       PreparationandApproval.doc
                                                                                                                           invoice number                                                                            same time as the related liability.
                                                                                                                                                                                                                                                                                                                       http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                       acct-
                                                                                                                                                                                                                                                                                                                       procedures/VendorMaintenance.do
                                                                                 Fraud can occur in various forms                                                                                                    GA ACCOUNTING PROCEDURES MANUAL
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                          c
                                        ACCOUNTS PAYABLE: ACCOUNT RANGE: 200000- such as ghost vendors,                    Documented policies and      Is the mathematical accuracy of invoices checked before      SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
E   LIABILITIES, AND OTHER                                                                                                                                                                                                                                                                                             http://www.dtae.org/adminservices/f
                                        202999, 210000, 214000-215999 and 220    kickbacks, purchase of personal           procedures                   payment?                                                     In cases where tasks cannot be effectively separated, management can substitute increased
    LIABILITIES                                                                                                                                                                                                                                                                                                        orms/Purchasing.doc
                                                                                 items, etc.                                                                                                                         supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                                       http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                       gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                       /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                                       http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                       acct-
                                                                                 Fraud can occur in various forms
                                                                                                                           Documented Policies and                                                                                                                                                                     procedures/VendorMaintenance.do
                                                                                 such as ghost vendors,                                                                                                            GA ACCOUNTING PROCEDURES MANUAL
    ACCOUNTS PAYABLE, ACCRUED                                                                                              Procedures                   Are all disbursements properly authorized and supported by                                                                                                     c
                                        ACCOUNTS PAYABLE: ACCOUNT RANGE: 200000- kickbacks, purchase of personal                                                                                                   SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
E   LIABILITIES, AND OTHER                                                                                                 Checks are restrictively     appropriate documentation? If so, please describe these                                                                                                        http://www.dtae.org/adminservices/f
                                        202999, 210000, 214000-215999 and 220    items, etc.                                                                                                                       In cases where tasks cannot be effectively separated, management can substitute increased
    LIABILITIES                                                                                                            endorsed at time of          policies and procedures which help ensure this result.                                                                                                         orms/Purchasing.doc
                                                                                 Cash is not adequately                                                                                                            supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                           receipt.                                                                                                                                                                                    http://statepurchasing.doas.georgia.
                                                                                 safeguarded
                                                                                                                                                                                                                                                                                                                       gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                       /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                                       http://www.dtae.org/adminservices/
                                                                                 Fraud can occur in various forms                                                                                                                                                                                                      acct-
                                                                                 such as ghost vendors,                    Checks are restrictively                                                                                                                                                                    procedures/VendorMaintenance.do
                                                                                                                                                        1. Are all checks made payable to a specific payee? 2.       General
    ACCOUNTS PAYABLE, ACCRUED                                                    kickbacks, purchase of personal           endorsed at time of                                                                                                                                                                         c
                                        ACCOUNTS PAYABLE: ACCOUNT RANGE: 200000-                                                                        Does the Technical College ever issue checks to “Cash” or    Bank reconciliations for all bank accounts should be performed monthly. All bank
E   LIABILITIES, AND OTHER                                                       items, etc.                               receipt.                                                                                                                                                                                    http://www.dtae.org/adminservices/f
                                        202999, 210000, 214000-215999 and 220                                                                           “Bearer?” If so, please describe these circumstances in      reconciliations should be approved and signed by the Vice President of Administrative
    LIABILITIES                                                                  Data relating to cash transactions        supervisory review of all                                                                                                                                                                   orms/Purchasing.doc
                                                                                                                                                        detail.                                                      Services. The person performing the bank reconciliation should also sign the reconciliation
                                                                                 is improperly created, altered or         reconciliations                                                                                                                                                                             http://statepurchasing.doas.georgia.
                                                                                 deleted                                                                                                                                                                                                                               gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                       /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                                       http://www.dtae.org/adminservices/
                                                                                 Fraud can occur in various forms                                                                                                                                                                                                      acct-
                                                                                 such as ghost vendors,                                                                                                                                                                                                                procedures/VendorMaintenance.do
                                                                                                                           Documented Policies and                                                                   GA ACCOUNTING PROCEDURES MANUAL
    ACCOUNTS PAYABLE, ACCRUED                                                    kickbacks, purchase of personal                                                                                                                                                                                                       c
                                        ACCOUNTS PAYABLE: ACCOUNT RANGE: 200000-                                           Procedures                   Are all paid invoices or other supporting documents          SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
E   LIABILITIES, AND OTHER                                                       items, etc.                                                                                                                                                                                                                           http://www.dtae.org/adminservices/f
                                        202999, 210000, 214000-215999 and 220                                              Management approval for      adequately cancelled so as to prevent their reuse?           In cases where tasks cannot be effectively separated, management can substitute increased
    LIABILITIES                                                                  Data relating to cash transactions                                                                                                                                                                                                    orms/Purchasing.doc
                                                                                                                           refunds.                                                                                  supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                 is improperly created, altered or                                                                                                                                                                                                     http://statepurchasing.doas.georgia.
                                                                                 deleted                                                                                                                                                                                                                               gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                       /53901646procurementmanual.pdf
                                                                                                                                                                                                                     "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                        process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                      Failure to identify fictitious / ghost Compare benefits register Can the Technical College provide documentation assuring                                                                                                        http://www.dtae.org/adminservices/
E   LIABILITIES, AND OTHER              PAYROLL                                                                                                                                                                      generated from this system.
                                                                                      employees                              to payroll                that comparison of register to actual payroll occurs?                                                                                                           new_acct_procedures/1099S.doc
    LIABILITIES                                                                                                                                                                                                      The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                                                                                                                                                     generation of individual payroll checks for Department employees."
                                                                                                                                                                                                                     "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
                                                                                                                           Require written
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                        process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                                                           authorization for            Is there uniform application of payroll policies regarding                                                                                                     http://www.dtae.org/adminservices/
E   LIABILITIES, AND OTHER              PAYROLL                                       Inaccurate or invalid deductions                                                                                               generated from this system.
                                                                                                                           deductions from              application of employee benefits?                                                                                                                              new_acct_procedures/1099S.doc
    LIABILITIES                                                                                                                                                                                                      The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                                                           employees
                                                                                                                                                                                                                     generation of individual payroll checks for Department employees."
                                                                                                                                                                                                                     "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
    ACCOUNTS PAYABLE, ACCRUED                                                                                              Utilize time clock and                                                                    process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                      Incorrect amounts disbursed to                                                                                                                                                                                                   http://www.dtae.org/adminservices/
E   LIABILITIES, AND OTHER              PAYROLL                                                                            management approval of       Are payrolls approved by someone in authority?               generated from this system.
                                                                                      employees                                                                                                                                                                                                                        new_acct_procedures/1099S.doc
    LIABILITIES                                                                                                            time cards                                                                                The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                                                                                                                                                     generation of individual payroll checks for Department employees."
                                                                                                                                                                                                                     "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                        process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                                                           Positive pay agreement       Can the Technical College provide documentation assuring                                                                                                       http://www.dtae.org/dtaepolicy/men
E   LIABILITIES, AND OTHER              PAYROLL                                       Misappropriation of payroll checks                                                                                             generated from this system.
                                                                                                                           with Bank                    that positive pay agreement with bank occurs?                                                                                                                  u.html
    LIABILITIES                                                                                                                                                                                                      The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                                                                                                                                                     generation of individual payroll checks for Department employees."
                                                                                      Non-compliance with payroll laws     Documented policies and                                                                   "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
    ACCOUNTS PAYABLE, ACCRUED                                                         (fair labor standards, IRS           procedures.                  Is written approval required for changes in rate of pay?     process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                                                                                                                                                                                                                                                       http://www.dtae.org/dtaepolicy/men
E   LIABILITIES, AND OTHER              PAYROLL                                       deposits, etc)                       Management oversight         Is there uniform application of payroll policies regarding   generated from this system.
                                                                                                                                                                                                                                                                                                                       u.html
    LIABILITIES                                                                       Incorrect amounts disbursed to       (i.e., variance reports of   changes in rates of pay?                                     The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                      employees                            hours)                                                                                    generation of individual payroll checks for Department employees."
                                                                                                                                                                                                                     "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                        process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                                                           Documented policies and      Are employees required to be identified or to produce some                                                                                                     http://www.dtae.org/dtaepolicy/men
E   LIABILITIES, AND OTHER              PAYROLL                                       Untimely payroll disbursements                                                                                                 generated from this system.
                                                                                                                           procedures                   identification before receiving their paychecks?                                                                                                               u.html
    LIABILITIES                                                                                                                                                                                                      The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                                                                                                                                                     generation of individual payroll checks for Department employees."
                                                                                                                                                                                                                     "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                        process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                                                           Documented policies and      Are the payroll checks distributed by someone other than                                                                                                       http://www.dtae.org/dtaepolicy/men
E   LIABILITIES, AND OTHER              PAYROLL                                       Untimely payroll disbursements                                                                                                 generated from this system.
                                                                                                                           procedures                   the payroll department?                                                                                                                                        u.html
    LIABILITIES                                                                                                                                                                                                      The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                                                                                                                                                     generation of individual payroll checks for Department employees."
                                                                                                                                                                                                                                                                                                                       http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                       acct-
                                                                                                                                                                                                                                                                                                                       procedures/VendorMaintenance.do
                                                                                                                                                                                                                    GA ACCOUNTING PROCEDURES MANUAL
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                          c
                                                                                                                           Documented policies and      How frequently are purchasing card activities entered into  SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
E   LIABILITIES, AND OTHER              PURCHASING CARDS                              Fraudulent activity                                                                                                                                                                                                              http://www.dtae.org/adminservices/f
                                                                                                                           procedures                   the accounting system? Who is responsible for this process? In cases where tasks cannot be effectively separated, management can substitute increased
    LIABILITIES                                                                                                                                                                                                                                                                                                        orms/Purchasing.doc
                                                                                                                                                                                                                    supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                                       http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                       gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                       /53901646procurementmanual.pdf




             DTAE Confidential                                                                                                                                     8/4/2010                                                                                                                                                            Page 2
            Key Control Documentation                                                                                                                                                                                                                                                                              Fiscal Year 2006/07
                                                                                                                                 Technical College __________________                                                                                                                                            Note: Initial and Date
                                                                                                                                                                                                                                                                                                             the box to document step


#           Risk Area                                    Sub Area                                   Risk                Control Name                                  Question                                                                   DTEA/SAO P&P                                                                Link(s)
                                                                                                                                                                                                                                                                                                             http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                             acct-
                                                                                                                                                                                                                                                                                                             procedures/VendorMaintenance.do
                                                                                                                                                                                                              GA ACCOUNTING PROCEDURES MANUAL
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                c
                                                                                                                     Documented policies and   What procedures are in place to make sure that purchasing      SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
E   LIABILITIES, AND OTHER              PURCHASING CARDS                              Fraudulent activity                                                                                                                                                                                                    http://www.dtae.org/adminservices/f
                                                                                                                     procedures                cards are collected from departing employees?                  In cases where tasks cannot be effectively separated, management can substitute increased
    LIABILITIES                                                                                                                                                                                                                                                                                              orms/Purchasing.doc
                                                                                                                                                                                                              supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                             http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                             gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                             /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                             http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                             acct-
                                                                                                                                                                                                                                                                                                             procedures/VendorMaintenance.do
                                                                                  Fraud can occur in various forms                                                                                            Georgia Procurement Manual
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                c
                                        PURCHASING: ACCOUNT RANGE: 200000-202999, such as ghost vendors,             Documented policies and   Are all purchases, other than those from petty cash, made      All purchases for the Department and state technical institutes in excess of $25,000 and any
E   LIABILITIES, AND OTHER                                                                                                                                                                                                                                                                                   http://www.dtae.org/adminservices/f
                                        210000, 214000-215999 and 220             kickbacks, purchase of personal    procedures                on properly approved orders?                                   change order or contract addendum which is either greater than $5,000 or would increase the
    LIABILITIES                                                                                                                                                                                                                                                                                              orms/Purchasing.doc
                                                                                  items, etc.                                                                                                                 total purchase or contract to an amount in
                                                                                                                                                                                                                                                                                                             http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                             gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                             /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                             http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                             acct-
                                                                                                                                               Are at least three (3) competitive bids obtained for                                                                                                          procedures/VendorMaintenance.do
                                                                                                                                                                                                              GA ACCOUNTING PROCEDURES MANUAL
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                  purchases exceeding $5k? Can the Technical College, for                                                                                                       c
                                        PURCHASING: ACCOUNT RANGE: 200000-202999,                                    Documented policies and                                                                  SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
E   LIABILITIES, AND OTHER                                                        Fraudulent activity                                          all purchases or change orders / contract addendums which                                                                                                     http://www.dtae.org/adminservices/f
                                        210000, 214000-215999 and 220                                                procedures                                                                               In cases where tasks cannot be effectively separated, management can substitute increased
    LIABILITIES                                                                                                                                would increase the total purchase contract to exceed $25K,                                                                                                    orms/Purchasing.doc
                                                                                                                                                                                                              supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                               provide documentation to verify DTAE Board approval?                                                                                                          http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                             gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                             /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                             http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                             acct-
                                                                                                                                                                                                                                                                                                             procedures/VendorMaintenance.do
                                                                                                                                                                                                              GA ACCOUNTING PROCEDURES MANUAL
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                  Are invoices compared to receiving reports, packing slips,                                                                                                    c
                                        PURCHASING: ACCOUNT RANGE: 200000-202999,                                    Documented policies and                                                                  SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
E   LIABILITIES, AND OTHER                                                        Fraudulent activity                                          and purchase orders prior to payment? If so, please briefly                                                                                                   http://www.dtae.org/adminservices/f
                                        210000, 214000-215999 and 220                                                procedures                                                                               In cases where tasks cannot be effectively separated, management can substitute increased
    LIABILITIES                                                                                                                                describe this process.                                                                                                                                        orms/Purchasing.doc
                                                                                                                                                                                                              supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                             http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                             gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                             /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                             http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                             acct-
                                                                                                                                                                                                                                                                                                             procedures/VendorMaintenance.do
                                                                                                                                                                                                              GA ACCOUNTING PROCEDURES MANUAL
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                  Are invoices, shipping/receiving information, and other                                                                                                       c
                                        PURCHASING: ACCOUNT RANGE: 200000-202999,                                    Documented policies and                                                                  SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
E   LIABILITIES, AND OTHER                                                        Fraudulent activity                                          supporting documentation maintained for subsequent                                                                                                            http://www.dtae.org/adminservices/f
                                        210000, 214000-215999 and 220                                                procedures                                                                               In cases where tasks cannot be effectively separated, management can substitute increased
    LIABILITIES                                                                                                                                review?                                                                                                                                                       orms/Purchasing.doc
                                                                                                                                                                                                              supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                             http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                             gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                             /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                             http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                             acct-
                                                                                                                                                                                                                                                                                                             procedures/VendorMaintenance.do
                                                                                                                                                                                                              GA ACCOUNTING PROCEDURES MANUAL
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                c
                                        PURCHASING: ACCOUNT RANGE: 200000-202999,                                    Documented policies and   Are purchases reviewed to ensure proper account coding?        SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
E   LIABILITIES, AND OTHER                                                        Fraudulent activity                                                                                                                                                                                                        http://www.dtae.org/adminservices/f
                                        210000, 214000-215999 and 220                                                procedures                If so, please describe this process.                           In cases where tasks cannot be effectively separated, management can substitute increased
    LIABILITIES                                                                                                                                                                                                                                                                                              orms/Purchasing.doc
                                                                                                                                                                                                              supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                             http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                             gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                             /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                             http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                             acct-
                                                                                                                                                                                                                                                                                                             procedures/VendorMaintenance.do
                                                                                                                                                                                                              GA ACCOUNTING PROCEDURES MANUAL
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                c
                                        PURCHASING: ACCOUNT RANGE: 200000-202999,                                    Documented policies and   Are receiving reports signed by the individuals who actually   SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
E   LIABILITIES, AND OTHER                                                        Fraudulent activity                                                                                                                                                                                                        http://www.dtae.org/adminservices/f
                                        210000, 214000-215999 and 220                                                procedures                receive the goods?                                             In cases where tasks cannot be effectively separated, management can substitute increased
    LIABILITIES                                                                                                                                                                                                                                                                                              orms/Purchasing.doc
                                                                                                                                                                                                              supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                             http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                             gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                             /53901646procurementmanual.pdf

                                                                                                                                                                                                              GA ACCOUNTING PROCEDURES MANUAL                                                                http://www.dtae.org/adminservices/
    ACCOUNTS PAYABLE, ACCRUED
                                        PURCHASING: ACCOUNT RANGE: 200000-202999, Improper use of cash and / or      Positive pay agreement    Are returned purchases controlled in a manner which            SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES                                    acct-
E   LIABILITIES, AND OTHER
                                        210000, 214000-215999 and 220             blank / voided checks              with Bank                 assures proper credit?                                         In cases where tasks cannot be effectively separated, management can substitute increased      procedures/ManualJournalVoucher
    LIABILITIES
                                                                                                                                                                                                              supervision as an alternative control activity that can help prevent or reduce these risks.    PreparationandApproval.doc

                                                                                                                                                                                                                                                                                                             http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                             acct-
                                                                                                                                                                                                                                                                                                             procedures/VendorMaintenance.do
                                                                                                                                                                                                              Georgia Procurement Manual
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                c
                                        PURCHASING: ACCOUNT RANGE: 200000-202999,                                    Documented policies and   Is a system of competitive bidding used? If "sole source" is   All purchases for the Department and state technical institutes in excess of $25,000 and any
E   LIABILITIES, AND OTHER                                                        Inadequate bidding procedures                                                                                                                                                                                              http://www.dtae.org/adminservices/f
                                        210000, 214000-215999 and 220                                                procedures                used, is justification documentation available?                change order or contract addendum which is either greater than $5,000 or would increase the
    LIABILITIES                                                                                                                                                                                                                                                                                              orms/Purchasing.doc
                                                                                                                                                                                                              total purchase or contract to an amount in
                                                                                                                                                                                                                                                                                                             http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                             gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                             /53901646procurementmanual.pdf




             DTAE Confidential                                                                                                                            8/4/2010                                                                                                                                                           Page 3
             Key Control Documentation                                                                                                                                                                                                                                                                                        Fiscal Year 2006/07
                                                                                                                                       Technical College __________________                                                                                                                                                 Note: Initial and Date
                                                                                                                                                                                                                                                                                                                        the box to document step


#            Risk Area                                    Sub Area                                   Risk                    Control Name                                     Question                                                                    DTEA/SAO P&P                                                                  Link(s)
                                                                                                                                                                                                                                                                                                                        http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                        acct-
                                                                                                                                                                                                                                                                                                                        procedures/VendorMaintenance.do
                                                                                                                                                                                                                     Georgia Procurement Manual
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                           c
                                         PURCHASING: ACCOUNT RANGE: 200000-202999, Physical safeguarding of stock         Documented policies and      Are confirming (after the fact) purchase orders properly      All purchases for the Department and state technical institutes in excess of $25,000 and any
E   LIABILITIES, AND OTHER                                                                                                                                                                                                                                                                                              http://www.dtae.org/adminservices/f
                                         210000, 214000-215999 and 220             and storerooms is inadequate           procedures                   used and controlled?                                          change order or contract addendum which is either greater than $5,000 or would increase the
    LIABILITIES                                                                                                                                                                                                                                                                                                         orms/Purchasing.doc
                                                                                                                                                                                                                     total purchase or contract to an amount in
                                                                                                                                                                                                                                                                                                                        http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                        gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                        /53901646procurementmanual.pdf

                                                                                                                                                                                                                   Due diligence shall be practiced in the collection of debt. The probability of collecting a
                                                                                                                                                                                                                   past due receivable is equivalent to the quality of the information obtained at the time
                                                                                                                                                       Are non-cash credits, bad debt write-offs, credit memos and the debt is incurred. Therefore, when a debt to the Department of Technical and Adult
E
                                                                                                                                                                                                                                                                                                                        http://www.dtae.org/adminservices/
                                         ACCOUNTS RECEIVABLE: ACCOUNT RANGE:           Failure to accurately and timely   Supervisory review of        allowances approved independently of processing,            Education and/or one of the Technical Colleges is incurred, the Department should                    new_acct_procedures/due_diligenc
    ACCOUNTS RECEIVABLE                  121000-140999 and 160000-160999               bill external revenue sources      reconciliations              recording, and collecting the charge?                       obtain as much information from the debtor as possible.                                              e.doc
                                                                                                                                                                                                                   Due diligence shall be practiced in the collection of debt. The probability of collecting a
                                                                                                                                                                                                                   past due receivable is equivalent to the quality of the information obtained at the time
E                                                                                                                                                                                                                  the debt is incurred. Therefore, when a debt to the Department of Technical and Adult                http://www.dtae.org/adminservices/
                                         ACCOUNTS RECEIVABLE: ACCOUNT RANGE:                                                                           Are partial payments adequately reflected in the subsidiary Education and/or one of the Technical Colleges is incurred, the Department should                    new_acct_procedures/due_diligenc
    ACCOUNTS RECEIVABLE                  121000-140999 and 160000-160999               Improper cut-off                   Training                     records?                                                    obtain as much information from the debtor as possible.                                              e.doc
                                                                                                                                                                                                                   Due diligence shall be practiced in the collection of debt. The probability of collecting a
                                                                                                                                                       Are all claims for valid receivables such items as freight  past due receivable is equivalent to the quality of the information obtained at the time
                                                                                                                                                       damage, shortages, and unsatisfactory merchandise and
E
                                                                                       Lapping of accounts receivable                                  expenditures under cost reimbursement contract promptly     the debt is incurred. Therefore, when a debt to the Department of Technical and Adult                http://www.dtae.org/adminservices/
                                         ACCOUNTS RECEIVABLE: ACCOUNT RANGE:           payments / Unrecorded              Documented complaint         recorded on the books or otherwise controlled, as soon as   Education and/or one of the Technical Colleges is incurred, the Department should                    new_acct_procedures/due_diligenc
    ACCOUNTS RECEIVABLE                  121000-140999 and 160000-160999               receivables                        resolution process           the claims are prepared for filing?                         obtain as much information from the debtor as possible.                                              e.doc
                                                                                                                                                                                                                     Due Diligence
                                                                                                                          Documented policies and                                                                    General
E                                                                                                                         procedures on                                                                              Due diligence shall be practiced in the collection of debt. The probability of collecting a past   http://www.dtae.org/adminservices/
                                         ACCOUNTS RECEIVABLE: ACCOUNT RANGE:                                              adjustments and write-offs Are there controls to insure that individuals with delinquent   due receivable is equivalent to the quality of the information obtained at the time the debt is    new_acct_procedures/due_diligenc
    ACCOUNTS RECEIVABLE                  121000-140999 and 160000-160999               Unrecorded receivables             to receivable accounts     accounts are precluded from receiving additional credit?        incurred. Therefore, when a debt to the                                                            e.doc
                                                                                                                                                                                                                     SYNOPSIS OF SIGNIFICANT GAAP VARIANCE FROM BUDGET BASIS
                                                                                                                          Proper documentation of                                                                    If GAAP financial statements are not provided, auditors must be furnished with information to      http://sao.georgia.gov/vgn/images/p
E
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-         Asset is not owned by the          the acquisition of the                                                                     meet the following GAAP reporting requirements:                                                    ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000                     Technical College                  property                     Are all equipment additions controlled by a budget?           "DueCentral Office and all Technical Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                                     The to’s" are only recorded when goods have been delivered                                         rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                                     statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                     expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                     software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                     the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                     all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                     The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                     property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                     employment relationship ends. State property includes but is not limited to keys, credit cards,
E
                                                                                                                                                                                                                     telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                     issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                     the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                     to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                     accounted for by the employee.
                                                                                                                          Proper documentation of                                                                    The Central Office and all Technical Colleges shall have the option to maintain inventory          http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-         Asset is not owned by the          the acquisition of the                                                                     records for all property items costing less than $1,000. Such inventory shall be separately        ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000                     Technical College                  property                     Are capital expenditures authorized by appropriate officials? maintained.                                                                                        rev5[1].pdf - Capital Asset Guide
                                                                                       Asset is not owned by the
                                                                                       Technical College                                                                                                             Controlled assets are assets of the state that must be secured and tracked as inventory as set http://sao.georgia.gov/vgn/images/p
E
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-         Assets do not exist/overstated     Asset tags - Required        Is identifying information Removed from equipment prior to    forth by Ga. Code Section 50-16-161. This Code Section states that movable personal property ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000                     assets                             asset tagging                disposal?                                                     with an acquisition cost of $1,000 or more must be inventoried and                             rev5[1].pdf - Capital Asset Guide
                                                                                                                          Physical verification upon
                                                                                                                          acquisition and annual                                                                    Controlled assets are assets of the state that must be secured and tracked as inventory as set      http://sao.georgia.gov/vgn/images/p
E
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-         Assets do not exist/overstated     verification for capital                                                                  forth by Ga. Code Section 50-16-161. This Code Section states that movable personal property        ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000                     assets                             assets                                                                                    The an acquisition cost of $1,000 or more must be maintain accurate
                                                                                                                                                       Is identifying information promptly placed on the equipment? with Central Office and all Technical Colleges shall inventoried and inventory records on the       rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                                    statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                    expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                    software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                    the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                    all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                    The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                    property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                    employment relationship ends. State property includes but is not limited to keys, credit cards,
E
                                                                                                                                                                                                                    telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                    issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                    the equipment upon request or upon separation from employment will authorize the employer
                                                                                       Capital assets/controlled items                                                                                              to withhold any monies due the employee until such property is returned or otherwise
                                                                                       are acquired by Technical                                                                                                    accounted for by the employee.
                                                                                       College departments and are not                                                                                              The Central Office and all Technical Colleges shall have the option to maintain inventory           http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-         recorded in the Technical          Review of purchase                                                                        records for all property items costing less than $1,000. Such inventory shall be separately         ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000                     College's inventory system         requisitions                 Are purchases made by requisition/purchase order only?       maintained.                                                                                         rev5[1].pdf - Capital Asset Guide




              DTAE Confidential                                                                                                                                   8/4/2010                                                                                                                                                              Page 4
             Key Control Documentation                                                                                                                                                                                                                                                                                 Fiscal Year 2006/07
                                                                                                                                  Technical College __________________                                                                                                                                               Note: Initial and Date
                                                                                                                                                                                                                                                                                                                 the box to document step


#            Risk Area                                  Sub Area                              Risk                     Control Name                                      Question                              The Central Office and all Technical DTEA/SAO P&P accurate inventory records on the
                                                                                                                                                                                                                                                     Colleges shall maintain                                                     Link(s)
                                                                                                                                                                                                               statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                               expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                               software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                               the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                               all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                               The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                               property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                               employment relationship ends. State property includes but is not limited to keys, credit cards,
E
                                                                                                                                                                                                               telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                               issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                               the equipment upon request or upon separation from employment will authorize the employer
                                                                                 Capital assets/controlled items                                                                                               to withhold any monies due the employee until such property is returned or otherwise              http://sao.georgia.gov/vgn/images/p
                                                                                 are acquired by Technical          Management Oversight                                                                       accounted for by the employee.                                                                    ortal/cit_1210/13/27/48538431apm_
                                                                                 College departments and are not    (i.e. analysis of all items                                                                The Central Office and all Technical Colleges shall have the option to maintain inventory         rev5[1].pdf - Capital Asset Guide
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-   recorded in the Technical          recorded in capital asset     Do you have documented evidence on all Capital Asset         records for all property items costing less than $1,000. Such inventory shall be separately       http://www.dtae.org/adminservices/f
    CAPITAL ASSETS                       176999, 180000 and 183000               College's inventory system         expenditure codes).           transactions?                                                maintained.                                                                                       orms/asset_form.doc
                                                                                 Capital assets/controlled items                                                                                               Assets Acquired by the Exchange of Other Assets
                                                                                 are acquired by Technical                                                                                                     Similar assets – When recording an exchange of similar assets, agencies must use a book
E                                                                                College departments and are not                                                                                               value basis for the assets surrendered or                                                         http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-   recorded in the Technical          Documented policies and       Is all equipment recorded at cost or fair market value at    acquired.                                                                                         ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000               College's inventory system         procedures                    time of acquisition?                                         • When assets are exchanged and no monetary consideration is paid inventory records on the
                                                                                                                                                                                                               The Central Office and all Technical Colleges shall maintain accurate                             rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                               statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                               expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                               software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                               the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                               all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                               The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                               property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                               employment relationship ends. State property includes but is not limited to keys, credit cards,
E
                                                                                                                                                                                                               telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                               issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                               the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                               to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                               accounted for by the employee.
                                                                                                                                                                                                               The Central Office and all Technical Colleges shall have the option to maintain inventory         http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-   Equipment is improperly removed                                  Are pre-numbered receiving reports used and copies           records for all property items costing less than $1,000. Such inventory shall be separately       ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000               from campus                     Inventory mgt. system            thereof forwarded to the accounting department?              maintained.                                                                                       rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                               Sale of Capital Assets
                                                                                                                                                                                                               When an asset is sold to a non-state entity or another state agency, a gain or loss must be
E                                                                                                                                                                                                              recognized in the accounting records when:                                                        http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-                                      Documented policies and       Does the sale, transfer, scrapping or dismantling of         • cash is exchanged and the amount paid does not equal the net book value of the asset            ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000               Improper disposal of property      procedures                    equipment require written approval?                          • cash is
                                                                                                                                                                                                               The Central Office and all Technical Colleges shall maintain accurate inventory records on the    rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                               statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                               expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                               software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                               the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                               all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                               The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                               property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                               employment relationship ends. State property includes but is not limited to keys, credit cards,
E
                                                                                                                                                                                                               telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                               issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                               the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                               to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                               accounted for by the employee.
                                                                                                                                                                                                               The Central Office and all Technical Colleges shall have the option to maintain inventory         http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-   Improper safeguarding of capital   Tagging and periodic          Are additions to inventory records referenced to insure easy records for all property items costing less than $1,000. Such inventory shall be separately       ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000               assets                             Inventory counts.             verification of the records?                                 maintained.                                                                                       rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                               General
                                                                                                                                                                                                               Bank reconciliations for all bank accounts should be performed monthly. All bank                  http://sao.georgia.gov/vgn/images/p
E
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-   Improper safeguarding of capital                                 Are the postings to the stock records made promptly from     reconciliations should be approved and signed by the Vice President of Administrative             ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000               assets                             reconciliations               Issue requisitions?                                          The Central Office and all Technical bank reconciliation should also sign the reconciliation
                                                                                                                                                                                                               Services. The person performing the Colleges shall maintain accurate inventory records on the     rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                               statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                               expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                               software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                               the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                               all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                               The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                               property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                               employment relationship ends. State property includes but is not limited to keys, credit cards,
E
                                                                                                                                                                                                               telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                               issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                               the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                               to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                               accounted for by the employee.
                                                                                 Improper transfer of assets                                                                                                   The Central Office and all Technical Colleges shall have the option to maintain inventory         http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-   between departments or to an       Documented policies and       Are releases from accountability properly handled for        records for all property items costing less than $1,000. Such inventory shall be separately       ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000               agency                             procedures                    transfers of equipment?                                      maintained.                                                                                       rev5[1].pdf - Capital Asset Guide




              DTAE Confidential                                                                                                                              8/4/2010                                                                                                                                                            Page 5
             Key Control Documentation                                                                                                                                                                                                                                                                                    Fiscal Year 2006/07
                                                                                                                                  Technical College __________________                                                                                                                                                  Note: Initial and Date
                                                                                                                                                                                                                                                                                                                    the box to document step


#            Risk Area                                  Sub Area                                 Risk                   Control Name                                     Question                                The Central Office and all Technical DTEA/SAO P&P accurate inventory records on the
                                                                                                                                                                                                                                                       Colleges shall maintain                                                      Link(s)
                                                                                                                                                                                                                 statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                 expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                 software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                 the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                 all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                 The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                 property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                 employment relationship ends. State property includes but is not limited to keys, credit cards,
E
                                                                                                                                                                                                                 telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                 issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                 the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                 to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                 accounted for by the employee.
                                                                                   Improper transfer of assets                                                                                                   The Central Office and all Technical Colleges shall have the option to maintain inventory          http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-     between departments or to an      Documented policies and      Are the detailed accounts for equipment promptly adjusted      records for all property items costing less than $1,000. Such inventory shall be separately        ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000                 agency                            procedures                   when equipment is disposed of or transferred?                  maintained.                                                                                        rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                                 Periodic Physical Counts
                                                                                                                     Documented and                                                                              Under this system, inventory is determined by a physical count as of a specific date. The extent   http://sao.georgia.gov/vgn/images/p
E
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-                                       approved justification for   Is all inventorial equipment identified with a Technical       of records maintained depends upon the frequency of the counts. The inventory at year-end is       ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000                 Improper valuation                every journal voucher        College inventory tag?                                         determined by the physical count and is
                                                                                                                                                                                                                 The Central Office and all Technical Colleges shall maintain accurate inventory records on the     rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                                 statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                 expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                 software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                 the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                 all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                 The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                 property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                 employment relationship ends. State property includes but is not limited to keys, credit cards,
E
                                                                                                                                                                                                                 telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                 issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                 the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                 to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                 accounted for by the employee.
                                                                                                                     Documented and               Can the Technical College provide documentation assuring The Central Office and all Technical Colleges shall have the option to maintain inventory                http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-                                       approved justification for   that documented and approved justification for every journal records for all property items costing less than $1,000. Such inventory shall be separately          ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000                 Improper write-off                every journal voucher        voucher occurs?                                                maintained. Office and all Technical Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                                 The Central                                                                                        rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                                 statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                 expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                 software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                 the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                 all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                 The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                 property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                 employment relationship ends. State property includes but is not limited to keys, credit cards,
E
                                                                                                                                                                                                                 telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                 issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                 the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                 to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                 accounted for by the employee.
                                                                                   Inventory is lost or stolen and                                                                                               The Central Office and all Technical Colleges shall have the option to maintain inventory          http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-     surplus is not accounted for      Periodic counting and        Are materials released from the storeroom only on receipt      records for all property items costing less than $1,000. Such inventory shall be separately        ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000                 effectively                       inspection of inventory      of approved requisitions?                                      maintained. Office and all Technical Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                                 The Central                                                                                        rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                                 statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                 expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                 software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                 the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                 all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                 The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                 property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                 employment relationship ends. State property includes but is not limited to keys, credit cards,
E
                                                                                                                                                                                                                 telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                 issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                 the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                 to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                 accounted for by the employee.
                                                                                                                                                                                                                 The Central Office and all Technical Colleges shall have the option to maintain inventory
                                                                                   Assets do not exist/overstated                                 Are all costs of constructed fixed assets accumulated by       records for all property items costing less than $1,000. Such inventory shall be separately
    CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS   assets                            GSFIC                        work order or contract?                                        maintained. Office and all Technical Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                                 The Central                                                                                        http://www.dtae.org/architect.html
                                                                                                                                                                                                                 statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                 expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                 software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                 the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                 all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                 The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                 property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                 employment relationship ends. State property includes but is not limited to keys, credit cards,
E
                                                                                                                                                                                                                 telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                 issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                 the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                 to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                  Are requests for purchase of capital assets supported by       accounted for by the employee.
                                                                                                                                                  approved requisition or other justification that shows A.      The Central Office and all Technical Colleges shall have the option to maintain inventory
                                                                                   Assets do not exist/overstated                                 Description of addition B. Justification of acquisition C.     records for all property items costing less than $1,000. Such inventory shall be separately
    CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS   assets                            Proper record keeping        Estimated cost D.Accounts to be charged?                       maintained.                                                                                        http://www.dtae.org/architect.html
                                                                                                                                                                                                                 Assets Acquired by the Exchange of Other Assets
                                                                                                                                                                                                                 Similar assets – When recording an exchange of similar assets, agencies must use a book
E                                                                                                                                                 Are fixed assets carried in the accounting records at cost or, value basis for the assets surrendered or
                                                                                   Assets do not exist/overstated                                 for assets acquired by gift, at fair market value at the date  acquired.
    CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS   assets                            Proper record keeping        of gift? (If not indicate basis of valuation.)                 • When assets are exchanged and no monetary consideration is paid                                  http://www.dtae.org/architect.html




              DTAE Confidential                                                                                                                              8/4/2010                                                                                                                                                               Page 6
             Key Control Documentation                                                                                                                                                                                                                                                                                       Fiscal Year 2006/07
                                                                                                                                    Technical College __________________                                                                                                                                                   Note: Initial and Date
                                                                                                                                                                                                                                                                                                                       the box to document step


#            Risk Area                                  Sub Area                                 Risk                    Control Name                                      Question                                                                    DTEA/SAO P&P                                                                    Link(s)
                                                                                                                                                                                                                 Depreciation Capital Assets
E                                                                                                                                                                                                                Capital assets should be depreciated over their estimated useful lives unless they are
                                                                                   Assets do not exist/overstated                                                                                                inexhaustible. For a definition of an “inexhaustible asset,” see the Works of Art and Historical
    CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS   assets                             Proper record keeping       Are idle plant facilities depreciation fully funded?           Treasures section of this guide The straight shall maintain accurate inventory records on the
                                                                                                                                                                                                                 The Central Office and all Technical Colleges                                                         http://www.dtae.org/architect.html
                                                                                                                                                                                                                 statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                 expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                 software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                 the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                 all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                 The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                 property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                 employment relationship ends. State property includes but is not limited to keys, credit cards,
E
                                                                                                                                                                                                                 telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                 issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                 the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                 to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                 accounted for by the employee.
                                                                                                                                                  Are interim construction costs initially charged to            The Central Office and all Technical Colleges shall have the option to maintain inventory
                                                                                   Assets do not exist/overstated                                 construction in progress and distributed to permanent asset    records for all property items costing less than $1,000. Such inventory shall be separately
    CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS   assets                             GSFIC                       accounts on project completion?                                maintained.                                                                                           http://www.dtae.org/architect.html

                                                                                                                                                                                                                 Depreciation Capital Assets
E                                                                                                                                                                                                                Capital assets should be depreciated over their estimated useful lives unless they are
                                                                                                                                                  Are depreciation charges discontinued when an asset or         inexhaustible. For a definition of an “inexhaustible asset,” see the Works of Art and Historical
    CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS   Over / Under statement of assets   Proper record keeping       group of assets becomes fully depreciated?                     Treasures section of this guide The straight
                                                                                                                                                                                                                 General Procedure                                                                                     http://www.dtae.org/architect.html
                                                                                                                                                                                                                 Only Administrative Services Staff, or those identified by the VPA or Assistant Commissioner,
                                                                                                                                                                                                                 will be allowed to collect incoming funds. If other DTAE Central Office or other Technical
                                                                                                                                                                                                                 College staff should happen to obtain funds (via mail, etc) the funds should be immediately
                                                                                                                                                                                                                 routed to a central collection point, typically the identified staff in the Administrative Services
                                                                                                                                                                                                                 Office for processing. Appropriate staff from the Technical College or DTAE Central Office            http://www.dtae.org/adminservices/
                                                                                                                                                                                                                 should log all incoming funds in a log or receipt book. In those instances where Banner is not        acct-
                                                                                                                                                                                                                 used, pre-numbered receipts are preferred, as it facilitates verification that duplications, skips,   procedures/BankAccountReconcilia
E                                                                                                                                                                                                                or deletions of receipt numbers are avoided and that receipts are properly recorded. Any funds        tion.doc
                                                                                                                                                                                                                 coming by mail should be secured in a safe/vault until such time they can be appropriately            http://www.dtae.org/adminservices/
                                                                                                                                                                                                                 logged and processed. DTAE Central Office and each Technical College should have written              acct-procedures/PettyCash.doc
                                                                                                                                                                                                                 guidelines to identify the person responsible for securing those receipts in order to insure          http://www.dtae.org/adminservices/
                                                                                                                                                                                                                 correct separation of duties. All incoming checks should be made out to the appropriate               new_acct_procedures/Safeguarding
                                                                                                                                                                                                                 Technical College or DTAE Central Office and should be immediately stamped with a                     _Cash_Handling_Incoming_Funds.
                                                                                   Cash is not adequately             Monitoring by                                                                              restrictive endorsement. All funds, once logged, should be placed in a secure cash drawer,            doc
    CASH HANDLING & MANAGEMENT           CASH AND / OR CASH EQUIVALENTS            safeguarded                        management                  Is a cash register receipt given to each customer?             box, or vault. In a timely manner (at least daily), the cashier(s) should empty cash drawer and
                                                                                                                                                                                                                 General Procedure                                                                                     http://www.
                                                                                                                                                                                                                 Only Administrative Services Staff, or those identified by the VPA or Assistant Commissioner,
                                                                                                                                                                                                                 will be allowed to collect incoming funds. If other DTAE Central Office or other Technical
                                                                                                                                                                                                                 College staff should happen to obtain funds (via mail, etc) the funds should be immediately
                                                                                                                                                                                                                 routed to a central collection point, typically the identified staff in the Administrative Services
                                                                                                                                                                                                                 Office for processing. Appropriate staff from the Technical College or DTAE Central Office            http://www.dtae.org/adminservices/
                                                                                                                                                                                                                 should log all incoming funds in a log or receipt book. In those instances where Banner is not        acct-
                                                                                                                                                                                                                 used, pre-numbered receipts are preferred, as it facilitates verification that duplications, skips,   procedures/BankAccountReconcilia
E                                                                                                                                                                                                                or deletions of receipt numbers are avoided and that receipts are properly recorded. Any funds        tion.doc
                                                                                                                                                                                                                 coming by mail should be secured in a safe/vault until such time they can be appropriately            http://www.dtae.org/adminservices/
                                                                                                                                                                                                                 logged and processed. DTAE Central Office and each Technical College should have written              acct-procedures/PettyCash.doc
                                                                                                                                                                                                                 guidelines to identify the person responsible for securing those receipts in order to insure          http://www.dtae.org/adminservices/
                                                                                                                                                                                                                 correct separation of duties. All incoming checks should be made out to the appropriate               new_acct_procedures/Safeguarding
                                                                                                                                                                                                                 Technical College or DTAE Central Office and should be immediately stamped with a                     _Cash_Handling_Incoming_Funds.
                                                                                   Cash is not adequately             Monitoring by               Is there daily posting of cash receipts to subsidiary accounts restrictive endorsement. All funds, once logged, should be placed in a secure cash drawer,            doc
    CASH HANDLING & MANAGEMENT           CASH AND / OR CASH EQUIVALENTS            safeguarded                        management                  receivable records?                                            box, or vault. In a timely manner (at least daily), the cashier(s) should empty cash drawer and
                                                                                                                                                                                                                 General Procedure                                                                                     http://www.
                                                                                                                                                                                                                 Only Administrative Services Staff, or those identified by the VPA or Assistant Commissioner,
                                                                                                                                                                                                                 will be allowed to collect incoming funds. If other DTAE Central Office or other Technical
                                                                                                                                                                                                                 College staff should happen to obtain funds (via mail, etc) the funds should be immediately
                                                                                                                                                                                                                 routed to a central collection point, typically the identified staff in the Administrative Services
                                                                                                                                                                                                                 Office for processing. Appropriate staff from the Technical College or DTAE Central Office            http://www.dtae.org/adminservices/
                                                                                                                                                                                                                 should log all incoming funds in a log or receipt book. In those instances where Banner is not        acct-
                                                                                                                                                                                                                 used, pre-numbered receipts are preferred, as it facilitates verification that duplications, skips,   procedures/BankAccountReconcilia
E                                                                                                                                                                                                                or deletions of receipt numbers are avoided and that receipts are properly recorded. Any funds        tion.doc
                                                                                                                                                                                                                 coming by mail should be secured in a safe/vault until such time they can be appropriately            http://www.dtae.org/adminservices/
                                                                                                                                                                                                                 logged and processed. DTAE Central Office and each Technical College should have written              acct-procedures/PettyCash.doc
                                                                                                                                                                                                                 guidelines to identify the person responsible for securing those receipts in order to insure          http://www.dtae.org/adminservices/
                                                                                                                      Terminal security, i.e.,                                                                   correct separation of duties. All incoming checks should be made out to the appropriate               new_acct_procedures/Safeguarding
                                                                                                                      automatic time-out                                                                         Technical College or DTAE Central Office and should be immediately stamped with a                     _Cash_Handling_Incoming_Funds.
                                                                                   Controls over wire transfers are   controls or time-of-day     Are receipts which are given to individuals who deposit        restrictive endorsement. All funds, once logged, should be placed in a secure cash drawer,            doc
    CASH HANDLING & MANAGEMENT           CASH AND / OR CASH EQUIVALENTS            not adequate                       controls.                   cash with the cashier Identifiable to a specific cashier?      box, or vault. In a timely manner (at least daily), the cashier(s) should empty cash drawer and       http://www.
                                                                                                                                                                                                                                                                                                                       http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                       acct-
                                                                                                                                                                                                                 The Department encourages employees to develop and improve their skills and knowledge. A              procedures/BankAccountReconcilia
                                                                                                                                                                                                                 variety of resources for training and educational opportunities are available to employees who        tion.doc
                                                                                                                                                                                                                 need additional training to improve operations, efficiency, effectiveness, and to expand and          http://www.dtae.org/adminservices/
E                                                                                                                                                                                                                enrich the scope of programs for which the employees are responsible.                                 acct-procedures/PettyCash.doc
                                                                                                                                                                                                                 All employees, upon obtaining the appropriate approval, are eligible to participate in staff          http://www.dtae.org/adminservices/
                                                                                                                                                                                                                 development activities. The policy shall be administered in accordance with the Department's          new_acct_procedures/Safeguarding
                                                                                                                      Staff properly trained in                                                                  Statement of Equal Opportunity.                                                                       _Cash_Handling_Incoming_Funds.
                                                                                   Inadequate segregation of duties   segregation of duties and   Is a restrictive endorsement placed on incoming checks as                                                                                                            doc
    CASH HANDLING & MANAGEMENT           CASH AND / OR CASH EQUIVALENTS            within the cash handling process   rotation.                   soon as they are received?                                                                                                                                           http://www.




              DTAE Confidential                                                                                                                              8/4/2010                                                                                                                                                                  Page 7
              Key Control Documentation                                                                                                                                                                                                                                                                                Fiscal Year 2006/07
                                                                                                                            Technical College __________________                                                                                                                                                     Note: Initial and Date
                                                                                                                                                                                                                                                                                                                 the box to document step


#             Risk Area                                     Sub Area                     Risk                     Control Name                                      Question                               General Procedure                      DTEA/SAO P&P                                                                   Link(s)
                                                                                                                                                                                                           Only Administrative Services Staff, or those identified by the VPA or Assistant Commissioner,
                                                                                                                                                                                                           will be allowed to collect incoming funds. If other DTAE Central Office or other Technical
                                                                                                                                                                                                           College staff should happen to obtain funds (via mail, etc) the funds should be immediately
                                                                                                                                                                                                           routed to a central collection point, typically the identified staff in the Administrative Services
                                                                                                                                                                                                           Office for processing. Appropriate staff from the Technical College or DTAE Central Office            http://www.dtae.org/adminservices/
                                                                                                                                                                                                           should log all incoming funds in a log or receipt book. In those instances where Banner is not        acct-
                                                                                                                                                                                                           used, pre-numbered receipts are preferred, as it facilitates verification that duplications, skips,   procedures/BankAccountReconcilia
E                                                                                                                                                                                                          or deletions of receipt numbers are avoided and that receipts are properly recorded. Any funds        tion.doc
                                                                                                                                                                                                           coming by mail should be secured in a safe/vault until such time they can be appropriately            http://www.dtae.org/adminservices/
                                                                                                                                                                                                           logged and processed. DTAE Central Office and each Technical College should have written              acct-procedures/PettyCash.doc
                                                                                                                                                                                                           guidelines to identify the person responsible for securing those receipts in order to insure          http://www.dtae.org/adminservices/
                                                                                                                                                                                                           correct separation of duties. All incoming checks should be made out to the appropriate               new_acct_procedures/Safeguarding
                                                                                                               Limited access devices       Are all cash receipts recorded through the use of 3 part, pre- Technical College or DTAE Central Office and should be immediately stamped with a                     _Cash_Handling_Incoming_Funds.
                                                                           Lack of or inadequate security of   such as locks, cameras,      numbered receipts (or cash registers) by an individual         restrictive endorsement. All funds, once logged, should be placed in a secure cash drawer,            doc
    CASH HANDLING & MANAGEMENT            CASH AND / OR CASH EQUIVALENTS   facility and safety of personnel    badges, etc                  designated to receive cash?                                    box, or vault. In a timely manner (at least daily), the cashier(s) should empty cash drawer and       http://www.
                                                                                                                                                                                                                                                                                                                 http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                 acct-
                                                                                                                                                                                                                                                                                                                 procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                                 tion.doc
                                                                                                                                                                                                                                                                                                                 http://www.dtae.org/adminservices/
E                                                                                                                                                                                                           Disbursing Petty Cash Funds                                                                          acct-procedures/PettyCash.doc
                                                                                                                                                                                                                                                                                                                 http://www.dtae.org/adminservices/
                                                                                                                                                                                                            Each disbursement made from the petty cash fund shall be approved by the VPAS of the                 new_acct_procedures/Safeguarding
                                                                                                                                                                                                            college or his/her designee. A petty cash voucher must be completed for each payment.                _Cash_Handling_Incoming_Funds.
                                                                           Cash is not adequately              Monitoring by                Are petty cash vouchers prepared in ink and required for        Payment is made in either of the following manners:                                                  doc
    CASH HANDLING & MANAGEMENT            Petty Cash Disbursements         safeguarded                         management                   each expenditure?                                               1. I                                                                                                 http://www.
                                                                                                                                                                                                                                                                                                                 http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                 acct-
                                                                                                                                                                                                                                                                                                                 procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                                 tion.doc
                                                                                                                                                                                                                                                                                                                 http://www.dtae.org/adminservices/
E                                                                                                                                                                                                           Disbursing Petty Cash Funds                                                                          acct-procedures/PettyCash.doc
                                                                                                                                                                                                                                                                                                                 http://www.dtae.org/adminservices/
                                                                                                                                                                                                            Each disbursement made from the petty cash fund shall be approved by the VPA of the college          new_acct_procedures/Safeguarding
                                                                                                                                                                                                            or his/her designee. A petty cash voucher must be completed for each payment. Payment is             _Cash_Handling_Incoming_Funds.
                                                                           Cash is not adequately              Log receipts and deposit     Are petty cash vouchers signed by the person receiving the      made in either of the following manners:                                                             doc
    CASH HANDLING & MANAGEMENT            Petty Cash Disbursements         safeguarded                         daily                        cash?                                                           1. I                                                                                                 http://www.
                                                                                                                                                                                                                                                                                                                 http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                 acct-
                                                                                                                                                                                                                                                                                                                 procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                                 tion.doc
                                                                                                                                                                                                                                                                                                                 http://www.dtae.org/adminservices/
E                                                                                                                                                                                                           Disbursing Petty Cash Funds                                                                          acct-procedures/PettyCash.doc
                                                                                                                                                                                                                                                                                                                 http://www.dtae.org/adminservices/
                                                                                                                                                                                                            Each disbursement made from the petty cash fund shall be approved by the VPA of the college          new_acct_procedures/Safeguarding
                                                                                                                                                                                                            or his/her designee. A petty cash voucher must be completed for each payment. Payment is             _Cash_Handling_Incoming_Funds.
                                                                           Cash is not adequately                                           Are petty cash vouchers supported by an invoice with the        made in either of the following manners:                                                             doc
    CASH HANDLING & MANAGEMENT            Petty Cash Disbursements         safeguarded                         Surprise cash counts         amounts spelled out?                                            1. I                                                                                                 http://www.
                                                                                                                                                                                                                                                                                                                 http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                 acct-
                                                                                                                                                                                                                                                                                                                 procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                                 tion.doc
                                                                                                                                                                                                                                                                                                                 http://www.dtae.org/adminservices/
E                                                                                                                                                                                                           Disbursing Petty Cash Funds                                                                          acct-procedures/PettyCash.doc
                                                                                                                                                                                                                                                                                                                 http://www.dtae.org/adminservices/
                                                                                                                                                                                                            Each disbursement made from the petty cash fund shall be approved by the VPA of the college          new_acct_procedures/Safeguarding
                                                                                                                                                                                                            or his/her designee. A petty cash voucher must be completed for each payment. Payment is             _Cash_Handling_Incoming_Funds.
                                                                           Cash is not adequately              Access to locked-up cash     Are the vouchers and attachments properly cancelled to          made in either of the following manners:                                                             doc
    CASH HANDLING & MANAGEMENT            Petty Cash Disbursements         safeguarded                         is limited                   preclude their reuse?                                           1. I                                                                                                 http://www.
                                                                                                                                                                                                                                                                                                                 http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                 acct-
                                                                                                                                                                                                                                                                                                                 procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                                 tion.doc
                                                                                                                                                                                                            The Georgia Department of Technical and Adult Education Central Office and all of the                http://www.dtae.org/adminservices/
E                                                                                                                                                                                                           Technical Colleges shall follow the Statewide Travel Regulations issued by the Georgia               acct-procedures/PettyCash.doc
                                                                                                                                                                                                            Department of Audits and Accounts and the Office of Planning and Budget. The regulations             http://www.dtae.org/adminservices/
                                                                                                                                                                                                            are updated annually and posted on the Georgia Department of Audit and Account’s website at          new_acct_procedures/Safeguarding
                                                                                                                                                                                                            http://www2.state.ga.us/Departments/AUDIT/m&lg/travlreg.htm which also includes frequently           _Cash_Handling_Incoming_Funds.
                                                                           Cash receipts are misplaced, lost                                Is the fiscal officer's travel voucher approved by his or her   asked questions and other information not addressed in this procedure. All travel must be            doc
    CASH HANDLING & MANAGEMENT            Travel Disbursements             or mishandled                       Training                     superior?                                                       approved prior to traveling.                                                                         http://www.
                                                                                                                                            Can the Technical College provide documentation assuring        The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
                                                                                                               Supervisory review of
E   FINANCIAL AID                         FINANCIAL AID                    Awards to ineligible students                                    the accuracy of awards and the eligibility of the students      Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
                                                                                                               awards and award reports
                                                                                                                                            receiving them?                                                 student records.
                                                                                                               System within Banner to
                                                                                                               ensure SARs (Student Aid
                                                                                                               Reports) are loaded          Can the Technical College provide documentation assuring
E   FINANCIAL AID                         FINANCIAL AID                    Awards to ineligible students       correctly and that all flags that Banner & Student Aid Reports are loaded correctly and
                                                                                                               from the Dept. of            that all flags from the DOE are identified appropriately?       The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
                                                                                                               Education are identified                                                                     Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
                                                                                                               appropriately                                                                                student records.
                                                                                                                                                                                                            Adjustment vouchers may be entered using the accounts payable module to transfer
                                                                                                               Document policies and                                                                        expenditures from one chart field value to another chart field value or to adjust the dollar
                                                                           Accountability over recorded                                     Can the Technical College provide documentation of                                                                                                                   http://www.dtae.org/adminservices/
                                                                                                               procedures for all journal                                                                   amount of P.O. vouchers whose differences are less than the 10% threshold allowable by the
E   GENERAL                               FINANCIAL ACTIVITY               transactions may not be                                          policies and procedures for all journal entry origination and                                                                                                        new_acct_procedures/adjustment_v
                                                                                                               entry origination and                                                                        accounting system supported by the State of Georgia which is currently PeopleSoft. All
                                                                           maintained                                                       support?"                                                                                                                                                            ouchers.doc
                                                                                                               support                                                                                      expenditure re-rates or purchase order adjustments greater than 10% must be approved by the
                                                                                                                                                                                                            Vice President of Administrative Services or Director of Accounting. .
                                                                                                                                                                                                            GA ACCOUNTING PROCEDURES MANUAL
                                                                                                               Documented policies and      Are construction invoices reviewed for accuracy prior to        SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
E   GENERAL                               MANAGEMENT REVIEW                Fraudulent activity
                                                                                                               Procedures                   payment? If so, by whom?                                        In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                                                                                            supervision as an alternative control activity that can help prevent or reduce these risks.




               DTAE Confidential                                                                                                                       8/4/2010                                                                                                                                                                  Page 8
              Key Control Documentation                                                                                                                                                                                                                                             Fiscal Year 2006/07
                                                                                                   Technical College __________________                                                                                                                                           Note: Initial and Date
                                                                                                                                                                                                                                                                              the box to document step


#             Risk Area                                Sub Area                 Risk      Control Name                                    Question                                                                 DTEA/SAO P&P                                                               Link(s)
                                                                                                                                                                                GA ACCOUNTING PROCEDURES MANUAL
                                                                                        Documented policies and   Are fully executed contracts for construction contracts in    SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
E   GENERAL                               MANAGEMENT REVIEW       Fraudulent activity
                                                                                        Procedures                place before construction work begins? If not, why not?       In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                                                                supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                  Prior to signing any employee expense reports do you verify   GA ACCOUNTING PROCEDURES MANUAL
                                                                                        Documented policies and   that the amounts claimed for reimbursement are supported      SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
E   GENERAL                               PURCHASING              Fraudulent activity
                                                                                        Procedures                by adequate documentation including original receipts, a      In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                  statement of business purpose, etc.?                          supervision as an alternative control activity that can help prevent or reduce these risks.




               DTAE Confidential                                                                                             8/4/2010                                                                                                                                                         Page 9
            Key Control Documentation                                                                                                                                                                                                                                                                                            Fiscal Year 2006/07
                                                                                                                                         Technical College __________________                                                                                                                                                  Note: Initial and Date
                                                                                                                                                                                                                                                                                                                           the box to document step


#           Risk Area                                    Sub Area                                    Risk                     Control Name                                      Question                                                                     DTEA/SAO P&P                                                                  Link(s)
                                                                                 1. Duplicate payments. 2.
                                                                                                                                                                                                                        SECTION: THREE – ACCOUNTING PROCEDURES
                                                                                 Expenses not recorded or                                                                                                                                                                                                                  http://www.dtae.org/adminservices/
    ACCOUNTS PAYABLE, ACCRUED                                                                                              Management review of                                                                         TOPIC: NOTES AND BONDS PAYABLE, UNAMORTIZED BOND PREMIUMS AND
                                        ACCOUNTS PAYABLE: ACCOUNT RANGE: 200000- classified according to applicable                                     Are the liability control accounts reconciled at frequent                                                                                                          acct-
M   LIABILITIES, AND OTHER                                                                                                 monthly ledgers /                                                                            DISCOUNTS
                                        202999, 210000, 214000-215999 and 220    accounting standards. 3.                                               intervals (at least monthly) with subsidiary records?                                                                                                              procedures/ManualJournalVoucher
    LIABILITIES                                                                                                            reconciliations                                                                              Under the modified accrual basis of accounting, expenditures are usually recognized at the
                                                                                 Improper use of cash and / or                                                                                                                                                                                                             PreparationandApproval.doc
                                                                                                                                                                                                                        same time as the related liability.
                                                                                 blank / voided checks.
                                                                                                                                                                                                                        SECTION: THREE – ACCOUNTING PROCEDURES
                                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                           TOPIC: NOTES AND BONDS PAYABLE, UNAMORTIZED BOND PREMIUMS AND
                                        ACCOUNTS PAYABLE: ACCOUNT RANGE: 200000-                                           Management review of                                                                                                                                                                            acct-
M   LIABILITIES, AND OTHER                                                       Duplicate payments                                                     Are debit balances in accounts payable reviewed?                DISCOUNTS
                                        202999, 210000, 214000-215999 and 220                                              monthly ledgers                                                                                                                                                                                 procedures/ManualJournalVoucher
    LIABILITIES                                                                                                                                                                                                         Under the modified accrual basis of accounting, expenditures are usually recognized at the
                                                                                                                                                                                                                                                                                                                           PreparationandApproval.doc
                                                                                                                                                                                                                        same time as the related liability.
                                                                                                                                                                                                                        All purchases for the Department and state technical institutes in excess of $25,000 and any
                                                                                 Expenditures not authorized               3-way match for payment                                                                      change order or contract addendum which is either greater than $5,000 or would increase the        http://www.dtae.org/adminservices/
    ACCOUNTS PAYABLE, ACCRUED
                                        ACCOUNTS PAYABLE: ACCOUNT RANGE: 200000- Expenses not recorded or                  of accounts payable /                                                                        total purchase or contract to an amount in excess of $25,000, shall be approved by the State       acct-
M   LIABILITIES, AND OTHER                                                                                                                              Are accounts payable adjustments properly reviewed?
                                        202999, 210000, 214000-215999 and 220    classified according to applicable        Chart of Accounts /                                                                          Board; except change orders for capital outlay projects in excess of $5,000, providing the total   procedures/ManualJournalVoucher
    LIABILITIES
                                                                                 accounting standards.                     Supervisory review.E15                                                                       amendments do not exceed 20% of the original contract cost. Quick Start contracts for              PreparationandApproval.doc
                                                                                                                                                                                                                        personal services may be approved by the Commissioner."
                                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                           acct-
                                                                                                                                                                                                                                                                                                                           procedures/VendorMaintenance.do
                                                                                 Fraud can occur in various forms                                                                                                       GA ACCOUNTING PROCEDURES MANUAL
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                              c
                                        ACCOUNTS PAYABLE: ACCOUNT RANGE: 200000- such as ghost vendors,                    Documented policies and                                                                      SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
M   LIABILITIES, AND OTHER                                                                                                                              How are voided checks handled?                                                                                                                                     http://www.dtae.org/adminservices/f
                                        202999, 210000, 214000-215999 and 220    kickbacks, purchase of personal           procedures                                                                                   In cases where tasks cannot be effectively separated, management can substitute increased
    LIABILITIES                                                                                                                                                                                                                                                                                                            orms/Purchasing.doc
                                                                                 items, etc.                                                                                                                            supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                                           http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                           gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                           /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                           acct-
                                                                                                                                                        Is the bank reconciliation reviewed and approved by                                                                                                                procedures/VendorMaintenance.do
                                                                                       Fraud can occur in various forms                                                                                                 GA ACCOUNTING PROCEDURES MANUAL
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                           someone who is not responsible for disbursements? Please                                                                                                           c
                                        BANK RECONCILIATIONS: ACCOUNT RANGE:           such as ghost vendors,              Documented policies and                                                                      SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
M   LIABILITIES, AND OTHER                                                                                                                              provide the names of those who are responsible for                                                                                                                 http://www.dtae.org/adminservices/f
                                        200000-202999, 210000, 214000-                 kickbacks, purchase of personal     procedures                                                                                   In cases where tasks cannot be effectively separated, management can substitute increased
    LIABILITIES                                                                                                                                         preparing bank reconciliations and those who are                                                                                                                   orms/Purchasing.doc
                                                                                       items, etc.                                                                                                                      supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                        responsible for disbursements.                                                                                                                                     http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                           gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                           /53901646procurementmanual.pdf

                                                                                       1. Failure to timely report payroll
                                                                                       deductions and fringe benefits
                                                                                           2. Failure to make payments
                                                                                                                                                        Can the Technical College provide documentation assuring        General
    ACCOUNTS PAYABLE, ACCRUED                                                          to retirement, insurance vendors
                                                                                                                           reconciliation of withheld   that reconciliation of withheld to remitted funds occurs?       Bank reconciliations for all bank accounts should be performed monthly. All bank                   http://www.dtae.org/adminservices/
M   LIABILITIES, AND OTHER              PAYROLL                                        and other outside agencies (other
                                                                                                                           to remitted funds            Can they provide documentation assuring that supervisory        reconciliations should be approved and signed by the Vice President of Administrative              new_acct_procedures/1099S.doc
    LIABILITIES                                                                        than the IRS)
                                                                                                                                                        review of the reconciliations occur?                            Services. The person performing the bank reconciliation should also sign the reconciliation
                                                                                                        3. Failure to
                                                                                       withhold and deposit required
                                                                                       payroll taxes.
                                                                                                                                                                                                                        "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                           process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                                                           reconcile W-2 file to        Can the Technical College provide documentation assuring                                                                                                           http://www.dtae.org/adminservices/
M   LIABILITIES, AND OTHER              PAYROLL                                        Failure to file W-2 form                                                                                                         generated from this system.
                                                                                                                           payroll file                 that reconciliation of W-2 file to payroll file occurs?                                                                                                            new_acct_procedures/1099S.doc
    LIABILITIES                                                                                                                                                                                                         The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                                                                                                                                                        generation of individual payroll checks for Department employees."
                                                                                                                                                        Can the Technical College provide documentation assuring
                                                                                                                                                                                                                        44-12-206. When unpaid wages presumed abandoned. Unpaid wages, including wages
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                           that reconciliation of outstanding checks occurs and that
                                                                                       Failure to identify unclaimed       reconciliation of                                                                            represented by unpresented payroll checks owing in the                                             http://www.dtae.org/adminservices/
M   LIABILITIES, AND OTHER              PAYROLL                                                                                                         checks are voided after certain time frame occurs? Do
                                                                                       wages                               outstanding checks                                                                           ordinary course of the holder's business, that have remained unclaimed by the owner for more       new_acct_procedures/1099S.doc
    LIABILITIES                                                                                                                                         procedures exist to properly control and dispose of old
                                                                                                                                                                                                                        than one year after become
                                                                                                                                                        outstanding checks?
                                                                                                                                                                                                                        "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
    ACCOUNTS PAYABLE, ACCRUED                                                                                              supervisory review and                                                                       process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                       Failure to reconcile payroll bank                                Are payroll subsidiary accounts reconciled with control                                                                                                            http://www.dtae.org/adminservices/
M   LIABILITIES, AND OTHER              PAYROLL                                                                            approval of review of                                                                        generated from this system.
                                                                                       statements and/or accounts                                       accounts?                                                                                                                                                          new_acct_procedures/1099S.doc
    LIABILITIES                                                                                                            reconciliations                                                                              The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                                                                                                                                                        generation of individual payroll checks for Department employees."
                                                                                                                                                                                                                        "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
                                                                                                                                                        Are appropriate regulations being followed in regard to
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                           process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                       Failure to report taxable income                                 FICA, wages and hours, and other federal, state, and local                                                                                                         http://www.dtae.org/adminservices/
M   LIABILITIES, AND OTHER              PAYROLL                                                                            Management oversight                                                                         generated from this system.
                                                                                       to the IRS                                                       requirements concerning employment? Can they also                                                                                                                  new_acct_procedures/1099S.doc
    LIABILITIES                                                                                                                                                                                                         The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                                                                                        provide proof of supervisory review of reconciliations?
                                                                                                                                                                                                                        generation of individual payroll checks for Department employees."
                                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                           acct-
                                                                                                                                                        1. Are purchasing card expenditures monitored? 2. Are                                                                                                              procedures/VendorMaintenance.do
                                                                                                                                                                                                                        GA ACCOUNTING PROCEDURES MANUAL
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                           there policies and procedures are in place to prevent                                                                                                              c
                                                                                                                           Documented policies and                                                                      SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
M   LIABILITIES, AND OTHER              PURCHASING CARDS                               Fraudulent activity                                              employees from making personal purchases with the                                                                                                                  http://www.dtae.org/adminservices/f
                                                                                                                           procedures                                                                                   In cases where tasks cannot be effectively separated, management can substitute increased
    LIABILITIES                                                                                                                                         purchasing cards? If so, please briefly describe this                                                                                                              orms/Purchasing.doc
                                                                                                                                                                                                                        supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                        process.                                                                                                                                                           http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                           gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                           /53901646procurementmanual.pdf


                                                                                                                                                        1. Are credit and collection policies in writing and properly   Due diligence shall be practiced in the collection of debt. The probability of collecting a
                                                                                                                                                        approved? 2. Do adequate procedures exist for follow-up         past due receivable is equivalent to the quality of the information obtained at the time
M                                                                                                                                                       and collection of delinquent accounts? 3. Can the
                                                                                                                                                        Technical College provide documentation showing that all        the debt is incurred. Therefore, when a debt to the Department of Technical and Adult http://www.dtae.org/adminservices/
                                        ACCOUNTS RECEIVABLE: ACCOUNT RANGE:            Failure to accurately and timely                                 due diligence efforts, according to DTAE policy, has been       Education and/or one of the Technical Colleges is incurred, the Department should           new_acct_procedures/due_diligenc
    ACCOUNTS RECEIVABLE                 121000-140999 and 160000-160999                bill external revenue sources       Due Diligence                completed in attempting to collect outstanding debts?           obtain as much information from the debtor as possible.                                     e.doc

                                                                                                                                                                                                                        GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                                                                                        SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
M                                                                                                                                                                                                                                                                                                                          http://www.dtae.org/adminservices/
                                                                                                                                                                                                                        In cases where tasks cannot be effectively separated, management can substitute increased
                                        ACCOUNTS RECEIVABLE: ACCOUNT RANGE:            Failure to accurately and timely                                                                                                                                                                                                    new_acct_procedures/due_diligenc
                                                                                                                                                                                                                        supervision as an alternative control activity that can help prevent or reduce these risks.
    ACCOUNTS RECEIVABLE                 121000-140999 and 160000-160999                bill external revenue sources       Segregation of duties        Are credit balances reviewed periodically?                                                                                                                         e.doc




             DTAE Confidential                                                                                                                                     8/4/2010                                                                                                                                                              Page 10
             Key Control Documentation                                                                                                                                                                                                                                                                                   Fiscal Year 2006/07
                                                                                                                                    Technical College __________________                                                                                                                                               Note: Initial and Date
                                                                                                                                                                                                                                                                                                                   the box to document step


#            Risk Area                                  Sub Area                                Risk                      Control Name                                    Question                                                                    DTEA/SAO P&P                                                                 Link(s)
                                                                                                                                                                                                                Due diligence shall be practiced in the collection of debt. The probability of collecting a
                                                                                                                                                                                                                past due receivable is equivalent to the quality of the information obtained at the time
M
                                                                                   Improper valuation of allowance                                                                                              the debt is incurred. Therefore, when a debt to the Department of Technical and Adult http://www.dtae.org/adminservices/
                                         ACCOUNTS RECEIVABLE: ACCOUNT RANGE:       for doubtful accounts and/or        Aging of accounts                                                                        Education and/or one of the Technical Colleges is incurred, the Department should           new_acct_procedures/due_diligenc
    ACCOUNTS RECEIVABLE                  121000-140999 and 160000-160999           inappropriate account write-offs    receivable                 Are accounts aged periodically?                               obtain as much information from the debtor as possible.                                     e.doc
                                                                                                                                                                                                                ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS
                                                                                   Improper valuation of allowance                                                                                              (Accounts 126000, 128000, 128500, 130000, 132000, & 134000)                                        http://www.dtae.org/adminservices/
M
                                         ACCOUNTS RECEIVABLE: ACCOUNT RANGE:       for doubtful accounts and/or                                                                                                 GAAP requires an estimate to be made of uncollectible accounts receivable. Simply writing off      new_acct_procedures/due_diligenc
    ACCOUNTS RECEIVABLE                  121000-140999 and 160000-160999           inappropriate account write-offs    Independent audit          Are aged accounts reviewed by a responsible official?         receivables when it becomes known that a receivable is not co                                      e.doc
                                                                                                                                                                                                                GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                                                                                SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
M                                                                                                                      Periodic review of AR                                                                                                                                                                       http://www.dtae.org/adminservices/
                                                                                                                                                                                                                In cases where tasks cannot be effectively separated, management can substitute increased
                                         ACCOUNTS RECEIVABLE: ACCOUNT RANGE:       Lapping of accounts receivable      Aging and dating by        Is there adequate control over the mailing of statements to                                                                                                      new_acct_procedures/due_diligenc
                                                                                                                                                                                                                supervision as an alternative control activity that can help prevent or reduce these risks.
    ACCOUNTS RECEIVABLE                  121000-140999 and 160000-160999           payments                            supervisors                prevent interception prior to mailing?                                                                                                                           e.doc
                                                                                                                       Prescribed follow-up                                                                     Due diligence shall be practiced in the collection of debt. The probability of collecting a past   http://www.dtae.org/adminservices/
M                                        ACCOUNTS RECEIVABLE: ACCOUNT RANGE:       Revenue not received due to         procedures for past due    Are appropriate measures in force to insure prompt            due receivable is equivalent to the quality of the information obtained at the time the debt is    new_acct_procedures/due_diligenc
    ACCOUNTS RECEIVABLE                  121000-140999 and 160000-160999           inadequate collection process       amounts                    collection of employee and student accounts receivables?      incurred. Therefore, when a debt to the Department of Technical                                    e.doc
                                                                                                                                                                                                                Due diligence shall be practiced in the collection of debt. The probability of collecting a
                                                                                                                                                                                                                past due receivable is equivalent to the quality of the information obtained at the time
M                                                                                                                                                                                                               the debt is incurred. Therefore, when a debt to the Department of Technical and Adult http://www.dtae.org/adminservices/
                                         ACCOUNTS RECEIVABLE: ACCOUNT RANGE:       Revenue not received due to         Documented policies and    Are there documented policies governing the posting of        Education and/or one of the Technical Colleges is incurred, the Department should           new_acct_procedures/due_diligenc
    ACCOUNTS RECEIVABLE                  121000-140999 and 160000-160999           inadequate collection process       procedures                 revenue and collection of accounts?                           obtain as much information from the debtor as possible.                                     e.doc

                                                                                   1.Credit card activity not
                                                                                   recorded timely and accurately.
                                                                                   2. Failure to log checks as they
M
                                                                                   are received. 3. Improper                                                                                                    General                                                                                            http://www.dtae.org/adminservices/
                                                                                   calculation and refunding of                                                                                                 Bank reconciliations for all bank accounts should be performed monthly. All bank                   acct-
                                                                                   tuition and fees. 4. Unrecorded                                Can the Technical College provide documentation assuring      reconciliations should be approved and signed by the Vice President of Administrative              procedures/BankAccountreconciliati
    ACCOUNTS RECEIVABLE                  REVENUE                                   or incorrectly recorded revenue.    Reconciliation             that timely reconciliations occurs ?                          Services. The person performing the Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                                The Central Office and all Technical bank reconciliation should also sign the reconciliation       ononciliation.doc
                                                                                                                                                                                                                statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                employment relationship ends. State property includes but is not limited to keys, credit cards,
M
                                                                                                                                                                                                                telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                accounted for by the employee.
                                                                                                                                                                                                                The Central Office and all Technical Colleges shall have the option to maintain inventory          http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-     Assets do not exist/overstated                                 Are detailed records regularly reconciled to the general      records for all property items costing less than $1,000. Such inventory shall be separately        ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000                 assets                              Proper record keeping      ledger by fund?                                               maintained. Office and all Technical Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                                The Central                                                                                        rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                                statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                employment relationship ends. State property includes but is not limited to keys, credit cards,
M
                                                                                                                                                                                                                telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                to withhold any monies due the employee until such property is returned or otherwise
                                                                                   Failure to withhold penalty                                                                                                  accounted for by the employee.
                                                                                   amounts for untimely reporting of                                                                                            The Central Office and all Technical Colleges shall have the option to maintain inventory          http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-     operations / missed milestones      Penalty for misreporting   Can the Technical College provide documentation assuring      records for all property items costing less than $1,000. Such inventory shall be separately        ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000                 by contractors.                     or untimely reporting      that penalty for missed milestones by contractors occurs?     maintained.                                                                                        rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                                SYNOPSIS OF SIGNIFICANT GAAP VARIANCE FROM BUDGET BASIS
                                                                                   Fiscal controls are not adequate    Documented policies and                                                                  If GAAP financial statements are not provided, auditors must be furnished with information to      http://sao.georgia.gov/vgn/images/p
M
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-     to ensure the safeguarding of       procedures on              Do variations between budget and actual costs require         meet the following GAAP reporting requirements:                                                    ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000                 assets                              safeguarding assets        approval of appropriate officials?                            Due Central Office and all Technical Collegesbeen delivered accurate inventory records on the
                                                                                                                                                                                                                The to’s are only recorded when goods have shall maintain                                          rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                                statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                employment relationship ends. State property includes but is not limited to keys, credit cards,
M
                                                                                                                                                                                                                telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                accounted for by the employee.
                                                                                                                                                                                                                The Central Office and all Technical Colleges shall have the option to maintain inventory
                                                                                   Assets do not exist/overstated                                 Are plant ledgers balanced regularly to the control           records for all property items costing less than $1,000. Such inventory shall be separately
    CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS   assets                              BLIPP system               accounts?                                                     maintained.                                                                                        http://www.dtae.org/architect.html




              DTAE Confidential                                                                                                                              8/4/2010                                                                                                                                                            Page 11
            Key Control Documentation                                                                                                                                                                                                                                                                               Fiscal Year 2006/07
                                                                                                                          Technical College __________________                                                                                                                                                    Note: Initial and Date
                                                                                                                                                                                                                                                                                                              the box to document step


#           Risk Area                                     Sub Area                    Risk                      Control Name                                     Question                                                                    DTEA/SAO P&P                                                                     Link(s)
                                                                                                                                                                                                                                                                                                              http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                              acct-
                                                                                                                                                                                                                                                                                                              procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                              tion.doc
                                                                                                                                                                                                        GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                                                                                                                                                                              http://www.dtae.org/adminservices/
                                                                                                                                                                                                        SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
M                                                                                                                                                                                                                                                                                                             acct-procedures/PettyCash.doc
                                                                                                                                                                                                        In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                                                                                                                                                                                              http://www.dtae.org/adminservices/
                                                                                                                                                                                                        supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                              new_acct_procedures/Safeguarding
                                                                                                                                                                                                                                                                                                              _Cash_Handling_Incoming_Funds.
                                                                         Cash is not adequately              Monitoring by                Are checks returned by the bank controlled and is follow-up                                                                                                         doc
    CASH HANDLING & MANAGEMENT          CASH AND / OR CASH EQUIVALENTS   safeguarded                         management                   maintained independently of the cash function? (NSF)          General Procedure                                                                                     http://www.
                                                                                                                                                                                                        Only Administrative Services Staff, or those identified by the VPA or Assistant Commissioner,
                                                                                                                                                                                                        will be allowed to collect incoming funds. If other DTAE Central Office or other Technical
                                                                                                                                                                                                        College staff should happen to obtain funds (via mail, etc) the funds should be immediately
                                                                                                                                                                                                        routed to a central collection point, typically the identified staff in the Administrative Services
                                                                                                                                                                                                        Office for processing. Appropriate staff from the Technical College or DTAE Central Office            http://www.dtae.org/adminservices/
                                                                                                                                                                                                        should log all incoming funds in a log or receipt book. In those instances where Banner is not        acct-
                                                                                                                                                                                                        used, pre-numbered receipts are preferred, as it facilitates verification that duplications, skips,   procedures/BankAccountReconcilia
M                                                                                                                                                                                                       or deletions of receipt numbers are avoided and that receipts are properly recorded. Any funds        tion.doc
                                                                                                                                                                                                        coming by mail should be secured in a safe/vault until such time they can be appropriately            http://www.dtae.org/adminservices/
                                                                                                                                                                                                        logged and processed. DTAE Central Office and each Technical College should have written              acct-procedures/PettyCash.doc
                                                                                                                                                                                                        guidelines to identify the person responsible for securing those receipts in order to insure          http://www.dtae.org/adminservices/
                                                                                                                                                                                                        correct separation of duties. All incoming checks should be made out to the appropriate               new_acct_procedures/Safeguarding
                                                                                                                                                                                                        Technical College or DTAE Central Office and should be immediately stamped with a                     _Cash_Handling_Incoming_Funds.
                                                                         Cash is not adequately              Monitoring by                Is a record of cash overages and shortages by cashier         restrictive endorsement. All funds, once logged, should be placed in a secure cash drawer,            doc
    CASH HANDLING & MANAGEMENT          CASH AND / OR CASH EQUIVALENTS   safeguarded                         management                   Recorded on the books and Regularly reviewed?                 box, or vault. In a timely manner (at least daily), the cashier(s) should empty cash drawer and       http://www.
                                                                                                                                                                                                        General
                                                                                                                                                                                                        Bank reconciliations for all bank accounts should be performed monthly. All bank
M
                                                                         Untimely bank account               Management review and        Can the Technical College provide documentation assuring      reconciliations should be approved and signed by the Vice President of Administrative
    CASH HANDLING & MANAGEMENT          CASH AND / OR CASH EQUIVALENTS   reconciliations                     approval.                    that untimely bank account reconciliations does not occur?    Services. The person performing the bank reconciliation should also sign the rec
                                                                                                                                                                                                                                                                                                    http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                    acct-
                                                                                                                                                                                                                                                                                                    procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                    tion.doc
                                                                                                                                                                                                                                                                                                    http://www.dtae.org/adminservices/
M                                                                                                                                                                                                                                                                                                   acct-procedures/PettyCash.doc
                                                                                                                                                                                                                                                                                                    http://www.dtae.org/adminservices/
                                                                                                                                                                                                        General                                                                                     new_acct_procedures/Safeguarding
                                                                         Data relating to cash transactions                                                                                             Bank reconciliations for all bank accounts should be performed monthly. All bank            _Cash_Handling_Incoming_Funds.
                                                                         is improperly created, altered or  Pre-numbered or machine Is the sequence of check numbers accounted for when                 reconciliations should be approved and signed by the Vice President of Administrative       doc
    CASH HANDLING & MANAGEMENT          Check Disbursements              deleted                            generated cash controls reconciling the bank accounts?                                      Services. The person performing the bank reconciliation should also sign the rec            http://www.
                                                                                                                                                                                                                                                                                                    http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                    acct-
                                                                                                                                                                                                                                                                                                    procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                    tion.doc
                                                                                                                                                                                                        GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                                                                                                                                                                    http://www.dtae.org/adminservices/
                                                                                                                                                                                                        SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
M                                                                                                                                                                                                                                                                                                   acct-procedures/PettyCash.doc
                                                                                                                                                                                                        In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                                                                                                                                                                                    http://www.dtae.org/adminservices/
                                                                                                                                                                                                        supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                    new_acct_procedures/Safeguarding
                                                                                                                                                                                                                                                                                                    _Cash_Handling_Incoming_Funds.
                                                                         Inadequate segregation of duties    Monitoring and               Are bank statements delivered unopened directly to the                                                                                                    doc
    CASH HANDLING & MANAGEMENT          Check Disbursements              within the cash handling process    management review            reconciler?                                                                                                                                               http://www.
                                                                                                                                                                                                                                                                                                    http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                    acct-
                                                                                                                                                                                                                                                                                                    procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                    tion.doc
                                                                                                                                                                                                        The Georgia Department of Technical and Adult Education Central Office and all of the       http://www.dtae.org/adminservices/
M                                                                                                                                                                                                       Technical Colleges shall follow the Statewide Travel Regulations issued by the Georgia      acct-procedures/PettyCash.doc
                                                                                                                                                                                                        Department of Audits and Accounts and the Office of Planning and Budget. The regulations    http://www.dtae.org/adminservices/
                                                                                                                                                                                                        are updated annually and posted on the Georgia Department of Audit and Account’s website at new_acct_procedures/Safeguarding
                                                                                                                                                                                                        http://www2.state.ga.us/Departments/AUDIT/m&lg/travlreg.htm which also includes frequently  _Cash_Handling_Incoming_Funds.
                                                                         Cash receipts are misplaced, lost   Documented policies and      Are travel vouchers independently reviewed for allowability   asked questions and other information not addressed in this procedure. All travel must be   doc
    CASH HANDLING & MANAGEMENT          Travel Disbursements             or mishandled                       procedures                   and reasonableness?                                           approved prior to traveling.                                                                http://www.
                                                                                                                                                                                                                                                                                                    http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                    acct-
                                                                                                                                                                                                                                                                                                    procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                    tion.doc
                                                                                                                                                                                                        The Georgia Department of Technical and Adult Education Central Office and all of the       http://www.dtae.org/adminservices/
M                                                                                                                                                                                                       Technical Colleges shall follow the Statewide Travel Regulations issued by the Georgia      acct-procedures/PettyCash.doc
                                                                                                                                                                                                        Department of Audits and Accounts and the Office of Planning and Budget. The regulations    http://www.dtae.org/adminservices/
                                                                                                                                                                                                        are updated annually and posted on the Georgia Department of Audit and Account’s website at new_acct_procedures/Safeguarding
                                                                                                                                                                                                        http://www2.state.ga.us/Departments/AUDIT/m&lg/travlreg.htm which also includes frequently  _Cash_Handling_Incoming_Funds.
                                                                         Cash receipts are misplaced, lost   Security cameras directed Does the fiscal officer or an appointed agent approve all        asked questions and other information not addressed in this procedure. All travel must be   doc
    CASH HANDLING & MANAGEMENT          Travel Disbursements             or mishandled                       at each cashier station.  travel vouchers?                                                 approved prior to traveling.                                                                http://www.

                                                                                                             Review the volume of
                                                                                                             journal entry transactions
M                                                                                                            for reasonableness and       Can the Technical College provide documentation assuring      General
                                                                         Closing entries not recorded or     consistency in volume and    that review of the volume of journal entry transactions for   Monthly system balancing is required to detect and correct any errors that may have occurred  http://www.dtae.org/adminservices/f
                                                                         classified in accordance with       dollar amount from period    reasonableness and consistency in volume and dollar           due to either system problems or data entry errors. This procedure must be performed monthly. orms/System_Balancing_Procedure
    CLOSING PROCESS                     FINANCIAL ACTIVITY               applicable accounting standards     to period.                   amount from period to period. occurs?                         See the bank account reconciliation procedure for balancing                                   s.doc




             DTAE Confidential                                                                                                                       8/4/2010                                                                                                                                                               Page 12
              Key Control Documentation                                                                                                                                                                                                                                                                   Fiscal Year 2006/07
                                                                                                                     Technical College __________________                                                                                                                                               Note: Initial and Date
                                                                                                                                                                                                                                                                                                    the box to document step


#             Risk Area                                   Sub Area                 Risk                    Control Name                                    Question                                                                   DTEA/SAO P&P                                                                  Link(s)
                                                                                                                                                                                                  General
                                                                                                                                                                                                  Bank reconciliations for all bank accounts should be performed monthly. All bank
                                                                                                                                                                                                  reconciliations should be approved and signed by the Vice President of Administrative
                                                                                                                                                                                                  Services. The person performing the bank reconciliation should also sign the reconciliation.
                                                                                                                                                                                                  Note: When using the People Soft accounting system, prior to performing the reconciliations,
                                                                                                                                                                                                  the monthly balancing of the AP and AR modules should be done and any reconciling items
                                                                                                                                                                                                  should be resolved. Also all journal vouchers that hit the cash accounts should be identified.
                                                                                                                                                                                                  Deposits
                                                                                                                                                                                                  Run Monthly Cash Receipts Journal (AR408) for the month being reconciled. Check off and
                                                                                                                                                                                                  put the deposit number next to the deposits listed on the bank statement. Any deposits not on
                                                                                                                                                                                                  the Cash Receipts Journal should be a reconciling item to the GL on the bank recon. Any
                                                                                                                                                                                                  deposits on the Cash Receipts Journal and not on the bank statement are deposits in transit.
                                                                                                                                                                                                  Checks
                                                                     Inaccurate or untimely financial   Conduct reconciliations     Can the Technical College provide documentation assuring      Run Cash Disbursements (Query AP004) and sort by pay status. Subtract any checks issued           http://www.dtae.org/adminservices/
M   GENERAL                               FINANCIAL ACTIVITY         reports (IRS, Federal, State,      between financial reports   that all sub-ledgers (AR, AP, PR, PO) are reconciled to the   in previous period and voided in current period. Omit any checks issued and voided in current     new_acct_procedures/adjustment_v
                                                                     GASB, etc)                         and the General Ledger      general ledger on a regular basis?                            period. Balance this amount to the AP transactions on the Trial Balance by Business Unit          ouchers.doc
                                                                                                                                                                                                  (GL44M) for the cash account being reconciled.
                                                                                                                                                                                                  Account for all the checks cleared on the bank statement on both the Cash Disbursements
                                                                                                                                                                                                  Query and the previous month’s outstanding check list. List all other checks as outstanding. If
                                                                                                                                                                                                  a check cleared the bank, but was not posted on the Cash Disbursements Query, it should be
                                                                                                                                                                                                  listed as a reconciling item to the GL on the bank recon.
                                                                                                                                                                                                  If checks are run out of the Banner A/R system, obtain the check register for Banner. Check
                                                                                                                                                                                                  off all checks that cleared the bank and have been recorded in the General Ledger and list all
                                                                                                                                                                                                  others as outstanding. If a check cleared the bank, but was not recorded in the General
                                                                                                                                                                                                  Ledger, it should be listed as a reconciling item to the GL on the bank recon.
                                                                                                                                                                                                  Account for all manual checks issued thru month end to ensure they have been entered into
                                                                                                                                                                                                  the accounting system. If they have not been entered into the accounting system, an entry
                                                                                                                                                                                                  should be made to the bank side and the GL side. Entries will be offsetting.
                                                                                                                                                                                                  See the procedure for Outstanding Checks for instructions on following up on outstanding
                                                                                                                                                                                                  checks.


                                                                                                                                                                                                  Schedule “1A” of this section provides a listing of funds which are included in the State of
                                                                                                                                                                                                  Georgia Comprehensive Annual Financial Report (CAFR) and the organizations which have
                                                                                                                                                                                                  transactions and balances included within these funds. The accounting records of these
                                                                                                                                                                                                  organizations must be maintained in such a manner as to allow for the preparation of GAAP
                                                                                                                                                                                                  financial statements. GAAP financial statements will be required in order to ensure that all
                                                                     Inaccurate or untimely financial                                Can the Technical College provide documentation assuring                                                                                                      http://www.dtae.org/adminservices/
                                                                                                        Create a reminder system                                                                  transactions and balances are properly recorded in the appropriate CAFR GAAP fund. GAAP
M   GENERAL                               FINANCIAL ACTIVITY         reports (IRS, Federal, State,                                   that a reminder system for due dates of all reports is in                                                                                                     new_acct_procedures/adjustment_v
                                                                                                        for due dates of all reports                                                              financial reporting encompasses both the government-wide financial statements and the fund
                                                                     GASB, etc)                                                      effect?"                                                                                                                                                      ouchers.doc
                                                                                                                                                                                                  financial statements. The procedures in Section Three of this manual describe the differences
                                                                                                                                                                                                  in
                                                                                                                                                                                                  accounting for items on the budgetary basis and in accordance with GAAP. For organizations
                                                                                                                                                                                                  that do not prepare GAAP financial statements, there is a listing of information which should be
                                                                                                                                                                                                  provided to the auditors in order to make the adjustments/conversions to GAAP reporting.



                                                                     1.Departments do not report
                                                                     capital assets/controlled items
                                                                     that are missing or stolen or do
                                                                     not report this information in a
M
                                                                     timely manner 2. Significant                                                                                                 General
                                                                     discrepancies between inventory                                                                                              Bank reconciliations for all bank accounts should be performed monthly. All bank                  http://sao.georgia.gov/vgn/images/p
                                                                     and state property accounting                                  Can the Technical College provide documentation assuring      reconciliations should be approved and signed by the Vice President of Administrative             ortal/cit_1210/13/27/48538431apm_
    General                               GENERAL                    records exist.                     Reconciliations             that reconciliations occurs?                                  Services. The person performing the bank reconciliation should also sign the rec                  rev5[1].pdf - Capital Asset Guide

                                                                     1.Diversion of Funds for personal
                                                                     use.                 2. Failure to
                                                                     log checks as they are received.
                                                                              3. Financial records
                                                                     may be inaccurate / amounts
M                                                                    could be deposited to the wrong
                                                                     funds. 4. Improper calculation
                                                                     and refunding of tuition and fees.
                                                                      5. Lack of timely and accurate                                                                                              General                                                                                           http://www.dtae.org/adminservices/
                                                                     reconciliation of revenue.     6.                              Can the Technical College provide documentation assuring      Bank reconciliations for all bank accounts should be performed monthly. All bank                  acct-
                                                                     Unrecorded or incorrectly          Supervisory review and      that Supervisory review and approval of reconciliations       reconciliations should be approved and signed by the Vice President of Administrative             procedures/BankAccountReconcilia
    GENERAL                               GENERAL                    recorded revenue.                  approval of reconciliations occurs?                                                       Services. The person performing the bank reconciliation should also sign the reconciliation       tion.doc
                                                                                                                                    Can the Technical College provide documented proof of
                                                                                                                                    regular supervisory review of all areas of responsibility:    GA ACCOUNTING PROCEDURES MANUAL
                                                                                                        Documented policies and Bank Reconciliations, Cash Management, Accounts                   SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
M   GENERAL                               MANAGEMENT REVIEW
                                                                                                        Procedures                  Payable, Accounts Receivable, Standard and nonstandard        In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                    Journal Entries, Payroll, Banner and PeopleSoft entries,      supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                     Fraudulent activity                                            Bookstore operations




               DTAE Confidential                                                                                                               8/4/2010                                                                                                                                                           Page 13
            Key Control Documentation                                                                                                                                                                                                                                                                                        Fiscal Year 2006/07
                                                                                                                                         Technical College __________________                                                                                                                                              Note: Initial and Date
                                                                                                                                                                                                                                                                                                                       the box to document step


#           Risk Area                                   Sub Area                                    Risk                      Control Name                                    Question                                                                    DTEA/SAO P&P                                                                 Link(s)
                                                                                                                                                                                                                     vendor who conducts business with the State of Georgia.
                                                                                                                                                                                                                     All vendors are required to complete a Federal W-9 form before conducting business with
                                                                                                                                                                                                                     DTAE Central Office and/or the Technical Colleges. Each Technical College and DTAE Central
                                                                                                                                                                                                                     Office is responsible for maintaining the completed W-9 forms for each vendor they conduct
                                                                                                                                                                                                                     business with. The W-9 form can be found at http://www.irs.gov/pub/irs-pdf/fw9.pdf.
                                                                                                                                                                                                                     Setting up vendors
                                                                                                                                                                                                                     In order for Administrative Services personnel to process payments in Accounts Payable, the
                                                                                                                                                                                                                     recipient of the payment must be established as a vendor (e.g., travel, rents, regular payments,
                                                                                                                                                                                                                     etc…) in the state vendor file. Users should first try thoroughly searching by TIN/FEI number
                                                                                                                                                                                                                     and alphabetically by vendor name to confirm that the vendor does not already exist in
                                                                                                                                                                                                                     Peoplesoft before any vendors are added. The Administrative Services personnel must have
                                                                                                                                                                                                                     attended the appropriate training and have security access to process vendor additions. The
                                                                                                                                                                                                                     Administrative Services personnel will add vendor information in Peoplesoft. A “New Vendor
    ACCOUNTS PAYABLE, ACCRUED           ACCOUNTS PAYABLE / PURCHASING: ACCOUNT                                                                                                                                       Information Form” should be completed. (See Attached for form.) The vendor is added in an        http://statepurchasing.doas.georgia.
                                                                                                                                                       Can the Technical College provide documentation assuring
O   LIABILITIES, AND OTHER              RANGE: 200000-202999, 210000, 214000-215999   Related party transactions (fraud) Approved vendor list                                                                        unapproved status. The Financial System Solutions (FSS) Vendor Maintenance Group with            gov/vgn/images/portal/cit_11783501
                                                                                                                                                       that Approved vendor list occurs ?
    LIABILITIES                         and 220                                                                                                                                                                      Phoenix will approve all vendors. Users should check for an approved vendor status at the end /53901646procurementmanual.pdf
                                                                                                                                                                                                                     of or throughout the day by viewing the Identifying Information panel.
                                                                                                                                                                                                                     Users at various Technical Colleges and DTAE Central Office can enter vouchers to a vendor
                                                                                                                                                                                                                     in an unapproved status but system checks and express checks can only be produced for
                                                                                                                                                                                                                     vendors with an approved status. If users do enter vouchers before the vendor has been
                                                                                                                                                                                                                     approved then it is important to remember that the effective date on a vendor location must be
                                                                                                                                                                                                                     less than the accounting date on the voucher in order for a system check to be produced.
                                                                                                                                                                                                                     Recommend waiting until vendor is approved before entering any vouchers.
                                                                                                                                                                                                                     Steps to take when adding a vendor in Peoplesoft:
                                                                                                                                                                                                                     1. User must go to the Phoenix website www.phoenix.gagta.com
                                                                                                                                                                                                                     2. User must click on the Financials Button
                                                                                                                                                                                                                     3. User must next click on the AP Button
                                                                                                                                                                                                                     4. User must then click on the AP-001 (AP Business Processes) for adding a new vendor and
                                                                                                                                                                                                                     follow the THREE – ACCOUNTING PROCEDURES
                                                                                                                                                                                                                     SECTION:step by step instructions for adding a new vendor.          (Special attention should be
                                                                                                                           AP accepts only original                                                                                                                                                                   http://www.dtae.org/adminservices/
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                        TOPIC: NOTES AND BONDS PAYABLE, UNAMORTIZED BOND PREMIUMS AND
                                        ACCOUNTS PAYABLE: ACCOUNT RANGE: 200000-                                           invoice                                                                                                                                                                                    acct-
O   LIABILITIES, AND OTHER                                                       Duplicate payments                                                    Do procedure exist to prevent duplicate payments?             DISCOUNTS
                                        202999, 210000, 214000-215999 and 220                                              AP cancels invoices upon                                                                                                                                                                   procedures/ManualJournalVoucher
    LIABILITIES                                                                                                                                                                                                      Under the modified accrual basis of accounting, expenditures are usually recognized at the
                                                                                                                           payment.                                                                                                                                                                                   PreparationandApproval.doc
                                                                                                                                                                                                                     same time as the related liability.
                                                                                                                                                                                                                                                                                                                       http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                       acct-
                                                                                                                                                                                                                                                                                                                       procedures/VendorMaintenance.do
                                                                                 Fraud can occur in various forms                                                                                                    GA ACCOUNTING PROCEDURES MANUAL
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                          c
                                        ACCOUNTS PAYABLE: ACCOUNT RANGE: 200000- such as ghost vendors,                    Documented policies and     Are all cash disbursements, except those made from petty      SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
O   LIABILITIES, AND OTHER                                                                                                                                                                                                                                                                                             http://www.dtae.org/adminservices/f
                                        202999, 210000, 214000-215999 and 220    kickbacks, purchase of personal           procedures                  cash, made by check?                                          In cases where tasks cannot be effectively separated, management can substitute increased
    LIABILITIES                                                                                                                                                                                                                                                                                                        orms/Purchasing.doc
                                                                                 items, etc.                                                                                                                         supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                                       http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                       gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                       /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                                       http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                       acct-
                                                                                                                                                                                                                                                                                                                       procedures/VendorMaintenance.do
                                                                                 Fraud can occur in various forms                                                                                               GA ACCOUNTING PROCEDURES MANUAL
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                          c
                                        ACCOUNTS PAYABLE: ACCOUNT RANGE: 200000- such as ghost vendors,                    Documented policies and     Are only printed pre-numbered checks used? How is access SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
O   LIABILITIES, AND OTHER                                                                                                                                                                                                                                                                                             http://www.dtae.org/adminservices/f
                                        202999, 210000, 214000-215999 and 220    kickbacks, purchase of personal           procedures                  to supply of blank checks controlled?                    In cases where tasks cannot be effectively separated, management can substitute increased
    LIABILITIES                                                                                                                                                                                                                                                                                                        orms/Purchasing.doc
                                                                                 items, etc.                                                                                                                    supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                                       http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                       gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                       /53901646procurementmanual.pdf

                                                                                                                                                                                                                     GA ACCOUNTING PROCEDURES MANUAL                                                                   http://www.dtae.org/adminservices/
    ACCOUNTS PAYABLE, ACCRUED
                                        ACCOUNTS PAYABLE: ACCOUNT RANGE: 200000- Improper use of cash and / or                                         Do procedures preclude payment for damaged or spoiled         SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES                                       acct-
O   LIABILITIES, AND OTHER                                                                                                 Management review
                                        202999, 210000, 214000-215999 and 220    blank / voided checks                                                 goods?                                                        In cases where tasks cannot be effectively separated, management can substitute increased         procedures/ManualJournalVoucher
    LIABILITIES
                                                                                                                                                                                                                     supervision as an alternative control activity that can help prevent or reduce these risks.       PreparationandApproval.doc

                                                                                                                                                                                                                     GA ACCOUNTING PROCEDURES MANUAL
    ACCOUNTS PAYABLE, ACCRUED
                                        ACCOUNTS PAYABLE: ACCOUNT RANGE: 200000- Improper use of cash and / or             Restricted access to        Can the Technical College provide documentation assuring      SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
O   LIABILITIES, AND OTHER
                                        202999, 210000, 214000-215999 and 220    blank / voided checks                     signature plates.           that restricted access to signature plates occurs?            In cases where tasks cannot be effectively separated, management can substitute increased
    LIABILITIES
                                                                                                                                                                                                                     supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                     "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
                                                                                      1. Improper recording of PTO
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                          Is there uniform application of payroll policies regarding    process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                      (vacation/sick leave            Limited access to                                                                                                                                                                                http://www.dtae.org/adminservices/
O   LIABILITIES, AND OTHER              PAYROLL                                                                                                        time worked or not worked (such as vacations, sick leave,     generated from this system.
                                                                                      paid/disability). 2. Incorrect  employee records                                                                                                                                                                                 new_acct_procedures/1099S.doc
    LIABILITIES                                                                                                                                        holidays)?                                                    The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                      amounts disbursed to employees.
                                                                                                                                                                                                                     generation of individual payroll checks for Department employees."
                                                                                                                                                                                                                     "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                          Are complete personnel records stored securely and            process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                      Failure to identify fictitious / ghost Payroll system access                                                                                                                                                                     http://www.dtae.org/adminservices/
O   LIABILITIES, AND OTHER              PAYROLL                                                                                                        restricted to those with legitimate need? Can they provide    generated from this system.
                                                                                      employees                              controls                                                                                                                                                                                  new_acct_procedures/1099S.doc
    LIABILITIES                                                                                                                                        proof that employee confidentiality is enforced?              The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                                                                                                                                                     generation of individual payroll checks for Department employees."
                                                                                                                                                                                                                     "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
                                                                                                                                                       Can the Technical College provide documentation assuring
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                        process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                      Failure to identify fictitious / ghost Documented hiring and     that documented hiring and termination procedures occurs?                                                                                                       http://www.dtae.org/adminservices/
O   LIABILITIES, AND OTHER              PAYROLL                                                                                                                                                                      generated from this system.
                                                                                      employees                              termination procedures.    Does this include the circulation of a termination checklist                                                                                                   new_acct_procedures/1099S.doc
    LIABILITIES                                                                                                                                                                                                      The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                                                                                       to the HR department?
                                                                                                                                                                                                                     generation of individual payroll checks for Department employees."
                                                                                                                                                                                                                     "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
    ACCOUNTS PAYABLE, ACCRUED                                                                                              Use of imprest fund or                                                                    process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                      Failure to reconcile payroll bank                                Are payroll bank accounts maintained on an imprest basis                                                                                                        http://www.dtae.org/adminservices/
O   LIABILITIES, AND OTHER              PAYROLL                                                                            sweep account for payroll                                                                 generated from this system.
                                                                                      statements and/or accounts                                       and reconciled by someone having no payroll duties?                                                                                                             new_acct_procedures/1099S.doc
    LIABILITIES                                                                                                            disbursements                                                                             The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                                                                                                                                                     generation of individual payroll checks for Department employees."
                                                                                                                                                                                                                     "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
    ACCOUNTS PAYABLE, ACCRUED                                                                                              Utilize time clock and      Can the Technical College provide documentation assuring process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                                                                                                                                                                                                                                                       http://www.dtae.org/adminservices/
O   LIABILITIES, AND OTHER              PAYROLL                                       Falsified time reports               management approval of      that time clock utilization and management approval of time generated from this system.
                                                                                                                                                                                                                                                                                                                       new_acct_procedures/1099S.doc
    LIABILITIES                                                                                                            time cards                  cards occurs?                                                 The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                                                                                                                                                     generation of individual payroll checks for Department employees."
                                                                                                                                                                                                                     "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                        process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                      Incorrect amounts disbursed to       Documented policies and     Do procedures exist to insure that employees do not receive                                                                                                     http://www.dtae.org/adminservices/
O   LIABILITIES, AND OTHER              PAYROLL                                                                                                                                                                      generated from this system.
                                                                                      employees                            procedures                  more than the authorized salary payment?                                                                                                                        new_acct_procedures/1099S.doc
    LIABILITIES                                                                                                                                                                                                      The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                                                                                                                                                     generation of individual payroll checks for Department employees."


             DTAE Confidential                                                                                                                                    8/4/2010                                                                                                                                                           Page 14
             Key Control Documentation                                                                                                                                                                                                                                                                                         Fiscal Year 2006/07
                                                                                                                                          Technical College __________________                                                                                                                                               Note: Initial and Date
                                                                                                                                                                                                                                                                                                                         the box to document step


#            Risk Area                                    Sub Area                                    Risk                      Control Name                                    Question                                                                   DTEA/SAO P&P                                                                  Link(s)
                                                                                                                                                                                                                       "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                          process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                                                             Physical controls over                                                                                                                                                                      http://www.dtae.org/dtaepolicy/men
O   LIABILITIES, AND OTHER               PAYROLL                                        Misappropriation of payroll checks                               Are blank payroll checks adequately controlled?               generated from this system.
                                                                                                                             paper checks                                                                                                                                                                                u.html
    LIABILITIES                                                                                                                                                                                                        The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                                                                                                                                                       generation of individual payroll checks for Department employees."
                                                                                                                                                                                                                                                                                                                         http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                         acct-
                                                                                                                                                                                                                                                                                                                         procedures/VendorMaintenance.do
                                                                                   Fraud can occur in various forms                                                                                                    Georgia Procurement Manual
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                            c
                                         PURCHASING: ACCOUNT RANGE: 200000-202999, such as ghost vendors,                    Documented policies and                                                                   All purchases for the Department and state technical institutes in excess of $25,000 and any
O   LIABILITIES, AND OTHER                                                                                                                               Are all purchase orders pre-numbered?                                                                                                                           http://www.dtae.org/adminservices/f
                                         210000, 214000-215999 and 220             kickbacks, purchase of personal           procedures                                                                                change order or contract addendum which is either greater than $5,000 or would increase the
    LIABILITIES                                                                                                                                                                                                                                                                                                          orms/Purchasing.doc
                                                                                   items, etc.                                                                                                                         total purchase or contract to an amount in
                                                                                                                                                                                                                                                                                                                         http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                         gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                         /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                                         http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                         acct-
                                                                                                                                                                                                                                                                                                                         procedures/VendorMaintenance.do
                                                                                   Fraud can occur in various forms                                                                                                    Georgia Procurement Manual
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                            c
                                         PURCHASING: ACCOUNT RANGE: 200000-202999, such as ghost vendors,                    Documented policies and                                                                   All purchases for the Department and state technical institutes in excess of $25,000 and any
O   LIABILITIES, AND OTHER                                                                                                                               Are all purchase orders accounted for?                                                                                                                          http://www.dtae.org/adminservices/f
                                         210000, 214000-215999 and 220             kickbacks, purchase of personal           procedures                                                                                change order or contract addendum which is either greater than $5,000 or would increase the
    LIABILITIES                                                                                                                                                                                                                                                                                                          orms/Purchasing.doc
                                                                                   items, etc.                                                                                                                         total purchase or contract to an amount in
                                                                                                                                                                                                                                                                                                                         http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                         gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                         /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                                         http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                         acct-
                                                                                                                                                                                                                                                                                                                         procedures/VendorMaintenance.do
                                                                                                                                                                                                                       Georgia Procurement Manual
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                            c
                                         PURCHASING: ACCOUNT RANGE: 200000-202999, Inefficient and ineffective               Documented policies and     Are blanket orders and long-term contracts under adequate     All purchases for the Department and state technical institutes in excess of $25,000 and any
O   LIABILITIES, AND OTHER                                                                                                                                                                                                                                                                                               http://www.dtae.org/adminservices/f
                                         210000, 214000-215999 and 220             purchasing function                       procedures                  control?                                                      change order or contract addendum which is either greater than $5,000 or would increase the
    LIABILITIES                                                                                                                                                                                                                                                                                                          orms/Purchasing.doc
                                                                                                                                                                                                                       total purchase or contract to an amount in
                                                                                                                                                                                                                                                                                                                         http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                         gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                         /53901646procurementmanual.pdf
                                                                                                                             Segregation of duties
                                                                                                                                                                                                                       GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                             Review transactions
                                                                                                                                                                                                                       SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
O                                                                                       Failure to accurately and timely     immediately precluding                                                                                                                                                                      http://www.dtae.org/adminservices/
                                                                                                                                                                                                                       In cases where tasks cannot be effectively separated, management can substitute increased
                                         ACCOUNTS RECEIVABLE: ACCOUNT RANGE:            bill external revenue sources        and subsequent to cutoff    Are accounts receivable maintained independently of cash                                                                                                        new_acct_procedures/due_diligenc
                                                                                                                                                                                                                       supervision as an alternative control activity that can help prevent or reduce these risks.
    ACCOUNTS RECEIVABLE                  121000-140999 and 160000-160999                Unrecognized receivables             date                        receipts and disbursement functions?                                                                                                                            e.doc
                                                                                                                                                                                                                       Due diligence shall be practiced in the collection of debt. The probability of collecting a
                                                                                                                                                                                                                       past due receivable is equivalent to the quality of the information obtained at the time
O                                                                                                                                                                                                                      the debt is incurred. Therefore, when a debt to the Department of Technical and Adult http://www.dtae.org/adminservices/
                                         ACCOUNTS RECEIVABLE: ACCOUNT RANGE:            Revenue not received due to          Develop relationships with Are disputed liabilities handled by person(s) other than       Education and/or one of the Technical Colleges is incurred, the Department should           new_acct_procedures/due_diligenc
    ACCOUNTS RECEIVABLE                  121000-140999 and 160000-160999                inadequate collection process        key customers              those Receiving payment?                                       obtain as much information from the debtor as possible.                                     e.doc
                                                                                                                                                                                                                       The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
O                                                                                       Credit Card information not          Documented policies and     Can the Technical College provide documentation assuring      Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
    ACCOUNTS RECEIVABLE                  REVENUE                                        properly safeguarded                 procedures                  that Credit Card information is properly safeguarded?         student records.
                                                                                        Financial records may be                                                                                                       Sales tax shall be collected by the Technical Colleges on the sale of goods and remitted to the   http://www.dtae.org/adminservices/
O                                                                                       inaccurate / amounts could be        Documented policies and                                                                   Georgia Department of Revenue on a monthly or quarterly basis, depending on volume.               new_acct_procedures/sales_tax.do
    ACCOUNTS RECEIVABLE                  REVENUE                                        deposited to the wrong funds         procedures                  Are all Sales Tax properly recorded?                          Quarterly returns shall cover three calendar months ending on the last day                        c
                                                                                                                                                                                                                       GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                                                                                       SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
O                                                                                                                            Revenue tracking from       Can the Technical College provide documentation assuring
                                                                                                                                                                                                                       In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                        Funds may be diverted for            the point of receipt to     that Revenue tracking from the point of receipt to deposit
                                                                                                                                                                                                                       supervision as an alternative control activity that can help prevent or reduce these risks.
    ACCOUNTS RECEIVABLE                  REVENUE                                        personal use                         deposit                     occurs ?
                                                                                                                                                                                                                       GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                                                                                       SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
O                                                                                                                                                        Can the Technical College provide documentation assuring
                                                                                                                                                                                                                       In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                        Improper calculation and             Documented policies and     that Improper calculation and refunding of tuition and fees
                                                                                                                                                                                                                       supervision as an alternative control activity that can help prevent or reduce these risks.
    ACCOUNTS RECEIVABLE                  REVENUE                                        refunding of tuition and fees        procedures                  does not occur?
                                                                                                                                                                                                                   GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                                                                                   SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
O
                                                                                                                                                                                                                   In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                                        Does the Technical College require that all checks be made
                                                                                                                                                                                                                   supervision as an alternative control activity that can help prevent or reduce these risks.
    ACCOUNTS RECEIVABLE                  REVENUE                                        Misappropriated of Receipts          Account Reconciliation     payable to the college and not cash?                       The Central Office and all Technical Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                                   statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                   expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                   software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                   the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                   all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                   The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                   property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                   employment relationship ends. State property includes but is not limited to keys, credit cards,
O
                                                                                                                                                                                                                   telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                   issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                   the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                   to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                   accounted for by the employee.
                                                                                                                                                                                                                   The Central Office and all Technical Colleges shall have the option to maintain inventory             http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-          Assets do not exist/overstated       Proper security measures                                                              records for all property items costing less than $1,000. Such inventory shall be separately           ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000                      assets                               for movable capital assets Are detailed subsidiary records of equipment maintained?   maintained.                                                                                           rev5[1].pdf - Capital Asset Guide




              DTAE Confidential                                                                                                                                     8/4/2010                                                                                                                                                           Page 15
             Key Control Documentation                                                                                                                                                                                                                                                                                  Fiscal Year 2006/07
                                                                                                                                 Technical College __________________                                                                                                                                                 Note: Initial and Date
                                                                                                                                                                                                                                                                                                                  the box to document step


#            Risk Area                                  Sub Area                               Risk                    Control Name                                      Question                              The Central Office and all Technical DTEA/SAO P&P accurate inventory records on the
                                                                                                                                                                                                                                                     Colleges shall maintain                                                      Link(s)
                                                                                                                                                                                                               statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                               expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                               software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                               the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                               all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                               The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                               property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                               employment relationship ends. State property includes but is not limited to keys, credit cards,
O
                                                                                                                                                                                                               telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                               issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                               the equipment upon request or upon separation from employment will authorize the employer
                                                                                 Capital assets/controlled items                                                                                               to withhold any monies due the employee until such property is returned or otherwise
                                                                                 are acquired by Technical                                                                                                     accounted for by the employee.
                                                                                 College departments and are not                                                                                               The Central Office and all Technical Colleges shall have the option to maintain inventory          http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-   recorded in the Technical                                       Are receiving, issuing, accounting, and storing               records for all property items costing less than $1,000. Such inventory shall be separately        ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000               College's inventory system         Segregation of duties        responsibilities properly separated?                          maintained.                                                                                        rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                               Periodic Physical Counts
                                                                                 Fiscal controls are not adequate   Segregation of the duties                                                                  Under this system, inventory is determined by a physical count as of a specific date. The extent   http://sao.georgia.gov/vgn/images/p
O
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-   to ensure the safeguarding of      of recording, approving,                                                                   of records maintained depends upon the frequency of the counts. The inventory at year-end is       ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000               assets                             and safekeeping              Are scrap material inventories properly controlled?           determined by the physical count and is                                                            rev5[1].pdf - Capital Asset Guide

                                                                                                                    The depreciation method
                                                                                                                    and useful life used for
                                                                                                                    depreciation individual
O                                                                                                                   assets should be
                                                                                                                    established in compliance                                                                  Periodic Physical Counts
                                                                                                                    with Corporate guidelines                                                                  Under this system, inventory is determined by a physical count as of a specific date. The extent   http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-                                      and, where appropriate,      Is the location of all inventorial equipment accurately       of records maintained depends upon the frequency of the counts. The inventory at year-end is       ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000               Improper valuation                 with statutory guidelines.   recorded?                                                     determined by the physical count and is
                                                                                                                                                                                                               The Central Office and all Technical Colleges shall maintain accurate inventory records on the     rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                               statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                               expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                               software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                               the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                               all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                               The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                               property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                               employment relationship ends. State property includes but is not limited to keys, credit cards,
O
                                                                                                                                                                                                               telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                               issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                               the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                               to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                               accounted for by the employee.
                                                                                                                                                 Has adequate protection against spoilage and pilferage        The Central Office and all Technical Colleges shall have the option to maintain inventory          http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-                                                                   been provided for, with special care being given to sensitive records for all property items costing less than $1,000. Such inventory shall be separately        ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000               Improper write-off                 Training                     items?                                                        maintained. Office and all Technical Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                               The Central                                                                                        rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                               statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                               expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                               software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                               the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                               all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                               The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                               property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                               employment relationship ends. State property includes but is not limited to keys, credit cards,
O
                                                                                                                                                                                                               telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                               issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                               the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                               to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                    reconciliation of physical                                                                 accounted for by the employee.
                                                                                 Inventory is lost or stolen and    counts to recorded                                                                         The Central Office and all Technical Colleges shall have the option to maintain inventory          http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-   surplus is not accounted for       amounts' and                 Are all incoming shipments, including returns by customers, records for all property items costing less than $1,000. Such inventory shall be separately          ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000               effectively                        investigation of differences handled by a central receiving department?                    maintained. Office and all Technical Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                               The Central                                                                                        rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                               statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                               expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                               software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                               the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                               all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                               The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                               property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                               employment relationship ends. State property includes but is not limited to keys, credit cards,
O
                                                                                                                                                                                                               telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                               issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                               the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                    1. All visitors must be                                                                    to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                    escorted at all times while                                                                accounted for by the employee.
                                                                                 Inventory is lost or stolen and    on property. 2.              Are all store rooms (ie small tools area) properly            The Central Office and all Technical Colleges shall have the option to maintain inventory          http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-   surplus is not accounted for       Safeguards / limited         safeguarded or controlled to prevent access to materials by records for all property items costing less than $1,000. Such inventory shall be separately          ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000               effectively                        access                       unauthorized persons.                                         maintained. Office and all Technical Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                               The Central                                                                                        rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                               statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                               expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                               software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                               the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                               all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                               The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                               property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                               employment relationship ends. State property includes but is not limited to keys, credit cards,
O
                                                                                                                                                                                                               telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                               issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                               the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                               to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                               accounted for by the employee.
                                                                                 Inventory is lost or stolen and                                                                                               The Central Office and all Technical Colleges shall have the option to maintain inventory          http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-   surplus is not accounted for       Inventory management                                                                       records for all property items costing less than $1,000. Such inventory shall be separately        ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000               effectively                        system                       Is a central storeroom and receiving station maintained?      maintained.                                                                                        rev5[1].pdf - Capital Asset Guide


              DTAE Confidential                                                                                                                             8/4/2010                                                                                                                                                            Page 16
             Key Control Documentation                                                                                                                                                                                                                                                                                         Fiscal Year 2006/07
                                                                                                                                   Technical College __________________                                                                                                                                                      Note: Initial and Date
                                                                                                                                                                                                                                                                                                                         the box to document step


#            Risk Area                                  Sub Area                                 Risk                   Control Name                                         Question                                  The Central Office and all Technical DTEA/SAO P&P accurate inventory records on the
                                                                                                                                                                                                                                                             Colleges shall maintain                                                     Link(s)
                                                                                                                                                                                                                       statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                       expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                       software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                       the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                       all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                       The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                       property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                       employment relationship ends. State property includes but is not limited to keys, credit cards,
O
                                                                                                                     Asset identification/bar-                                                                         telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                     code tags must be                                                                                 issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                     promptly affixed to fixed                                                                         the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                     asset receipts except                                                                             to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                     where inappropriate (e.g.,                                                                        accounted for by the employee.
                                                                                   Inventory is lost or stolen and   modular furniture, building                                                                       The Central Office and all Technical Colleges shall have the option to maintain inventory         http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-     surplus is not accounted for      partitions, P.C. boards,                                                                          records for all property items costing less than $1,000. Such inventory shall be separately       ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000                 effectively                       etc.).                      Is a record kept on keys to storerooms, storage areas, etc.?          maintained.                                                                                       rev5[1].pdf - Capital Asset Guide

                                                                                                                                                                                                                       Controlled assets are assets of the state that must be secured and tracked as inventory as set    http://sao.georgia.gov/vgn/images/p
O
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-                                       Asset tags - Required          Is the identifying information difficult for individuals to        forth by Ga. Code Section 50-16-161. This Code Section states that movable personal property      ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000                 Theft of assets                   asset tagging                  remove - other than college employees at time of disposal?         with Central Office and all Technical Colleges shall inventoried and inventory records on the
                                                                                                                                                                                                                       The an acquisition cost of $1,000 or more must be maintain accurate                               rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                                       statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                       expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                       software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                       the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                       all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                       The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                       property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                       employment relationship ends. State property includes but is not limited to keys, credit cards,
O
                                                                                                                                                                                                                       telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                       issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                       the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                       to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                       accounted for by the employee.
                                                                                                                                                                                                                       The Central Office and all Technical Colleges shall have the option to maintain inventory
                                                                                   Assets do not exist/overstated                                                                                                      records for all property items costing less than $1,000. Such inventory shall be separately
    CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS   assets                            Proper record keeping          Are idle plant facilities adequately secured?                      maintained. Office and all Technical Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                                       The Central                                                                                       http://www.dtae.org/architect.html
                                                                                                                                                                                                                       statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                       expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                       software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                       the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                       all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                       The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                       property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                       employment relationship ends. State property includes but is not limited to keys, credit cards,
O
                                                                                                                                                                                                                       telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                       issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                       the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                       to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                       accounted for by the employee.
                                                                                                                                                                                                                       The Central Office and all Technical Colleges shall have the option to maintain inventory
                                                                                                                                                    Is there adequate signage in construction and dangerous            records for all property items costing less than $1,000. Such inventory shall be separately
    CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS   Construction accidents            Signage                        areas?                                                             maintained.                                                                                       http://www.dtae.org/architect.html
                                                                                                                                                                                                                       Sale of Capital Assets
                                                                                                                                                                                                                       When an asset is sold to a non-state entity or another state agency, a gain or loss must be
O                                                                                                                                                                                                                      recognized in the accounting records when:
                                                                                                                     Periodic valuation of          Is there proper accounting treatment for recording of sales        • cash is exchanged and the amount paid does not equal the net book value of the asset
    CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS   Improper valuation                assets                         proceeds?                                                          • cash is
                                                                                                                                                                                                                       The Central Office and all Technical Colleges shall maintain accurate inventory records on the    http://www.dtae.org/architect.html
                                                                                                                                                                                                                       statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                       expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                       software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                       the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                       all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                       The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                       property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                       employment relationship ends. State property includes but is not limited to keys, credit cards,
O
                                                                                                                                                                                                                       telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                       issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                       the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                       to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                       accounted for by the employee.
                                                                                                                                                                                                                       The Central Office and all Technical Colleges shall have the option to maintain inventory
                                                                                   Failure to perform deferred                                                                                                         records for all property items costing less than $1,000. Such inventory shall be separately
    CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS   maintenance on facilities         BLIPP system                   Is a work order system used for major repair jobs?                 maintained.                                                                                       http://www.dtae.org/architect.html
                                                                                                                                                    Can the Technical College provide documentation assuring           GA ACCOUNTING PROCEDURES MANUAL
                                                                                   Credits for returned books are
                                                                                                                     Maintain a database of         that they maintain a database of credits from vendors, that        SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
O   CASH HANDLING & MANAGEMENT           BOOKSTORE                                 not properly accounted for and/or
                                                                                                                     credits from vendors           the database is reviewed prior to making payments and that         In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                   utilized
                                                                                                                                                    credit requests are reconciled to billings?                        supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                                                                                                GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                     Excess cash in safe with       Can the Technical College provide documentation assuring
                                                                                                                                                                                                                SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
O   CASH HANDLING & MANAGEMENT           BOOKSTORE                                 Robbery                           combination known only         that excess cash is kept in a safe with a combination known
                                                                                                                                                                                                                In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                     by a few                       by only a select few?
                                                                                                                                                                                                                supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                                                                                                       GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                    Can the Technical College provide physical proof assuring
                                                                                                                                                                                                                       SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
O   CASH HANDLING & MANAGEMENT           BOOKSTORE                                 Robbery                           Sufficient lighting at night   that sufficient lighting, visible security camera's and / or On-
                                                                                                                                                                                                                       In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                                    duty security officers are available and functioning?
                                                                                                                                                                                                                       supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                                                                                                       GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                    Can the Technical College provide documentation assuring           SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
O   CASH HANDLING & MANAGEMENT           BOOKSTORE                                 Unavailable textbooks             Perpetual inventory system
                                                                                                                                                    that Perpetual inventory system is in place?                       In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                                                                                                       supervision as an alternative control activity that can help prevent or reduce these risks.


              DTAE Confidential                                                                                                                                8/4/2010                                                                                                                                                                Page 17
            Key Control Documentation                                                                                                                                                                                                                                                                                   Fiscal Year 2006/07
                                                                                                                           Technical College __________________                                                                                                                                                       Note: Initial and Date
                                                                                                                                                                                                                                                                                                                  the box to document step


#           Risk Area                                    Sub Area                      Risk                     Control Name                                        Question                                General Procedure                      DTEA/SAO P&P                                                                   Link(s)
                                                                                                                                                                                                            Only Administrative Services Staff, or those identified by the VPA or Assistant Commissioner,
                                                                                                                                                                                                            will be allowed to collect incoming funds. If other DTAE Central Office or other Technical
                                                                                                                                                                                                            College staff should happen to obtain funds (via mail, etc) the funds should be immediately
                                                                                                                                                                                                            routed to a central collection point, typically the identified staff in the Administrative Services
                                                                                                                                                                                                            Office for processing. Appropriate staff from the Technical College or DTAE Central Office            http://www.dtae.org/adminservices/
                                                                                                                                                                                                            should log all incoming funds in a log or receipt book. In those instances where Banner is not        acct-
                                                                                                                                                                                                            used, pre-numbered receipts are preferred, as it facilitates verification that duplications, skips,   procedures/BankAccountReconcilia
O                                                                                                                                                                                                           or deletions of receipt numbers are avoided and that receipts are properly recorded. Any funds        tion.doc
                                                                                                                                                                                                            coming by mail should be secured in a safe/vault until such time they can be appropriately            http://www.dtae.org/adminservices/
                                                                                                                                                                                                            logged and processed. DTAE Central Office and each Technical College should have written              acct-procedures/PettyCash.doc
                                                                                                                                                                                                            guidelines to identify the person responsible for securing those receipts in order to insure          http://www.dtae.org/adminservices/
                                                                                                                                                                                                            correct separation of duties. All incoming checks should be made out to the appropriate               new_acct_procedures/Safeguarding
                                                                                                                                                                                                            Technical College or DTAE Central Office and should be immediately stamped with a                     _Cash_Handling_Incoming_Funds.
                                                                         Cash is not adequately              Monitoring by                   Are adequate physical facilities provided for safeguarding     restrictive endorsement. All funds, once logged, should be placed in a secure cash drawer,            doc
    CASH HANDLING & MANAGEMENT          CASH AND / OR CASH EQUIVALENTS   safeguarded                         management                      cash prior to deposit?                                         box, or vault. In a timely manner (at least daily), the cashier(s) should empty cash drawer and
                                                                                                                                                                                                            General Procedure                                                                                     http://www.
                                                                                                                                                                                                            Only Administrative Services Staff, or those identified by the VPA or Assistant Commissioner,
                                                                                                                                                                                                            will be allowed to collect incoming funds. If other DTAE Central Office or other Technical
                                                                                                                                                                                                            College staff should happen to obtain funds (via mail, etc) the funds should be immediately
                                                                                                                                                                                                            routed to a central collection point, typically the identified staff in the Administrative Services
                                                                                                                                                                                                            Office for processing. Appropriate staff from the Technical College or DTAE Central Office            http://www.dtae.org/adminservices/
                                                                                                                                                                                                            should log all incoming funds in a log or receipt book. In those instances where Banner is not        acct-
                                                                                                                                                                                                            used, pre-numbered receipts are preferred, as it facilitates verification that duplications, skips,   procedures/BankAccountReconcilia
O                                                                                                                                                                                                           or deletions of receipt numbers are avoided and that receipts are properly recorded. Any funds        tion.doc
                                                                                                                                                                                                            coming by mail should be secured in a safe/vault until such time they can be appropriately            http://www.dtae.org/adminservices/
                                                                                                                                                                                                            logged and processed. DTAE Central Office and each Technical College should have written              acct-procedures/PettyCash.doc
                                                                                                                                                                                                            guidelines to identify the person responsible for securing those receipts in order to insure          http://www.dtae.org/adminservices/
                                                                                                                                                                                                            correct separation of duties. All incoming checks should be made out to the appropriate               new_acct_procedures/Safeguarding
                                                                                                                                             Are cashiers provided separate cash drawers to establish       Technical College or DTAE Central Office and should be immediately stamped with a                     _Cash_Handling_Incoming_Funds.
                                                                         Cash is not adequately              Monitoring by                   accountability and are these drawers locked during the         restrictive endorsement. All funds, once logged, should be placed in a secure cash drawer,            doc
    CASH HANDLING & MANAGEMENT          CASH AND / OR CASH EQUIVALENTS   safeguarded                         management                      cashier's absence?                                             box, or vault. In a timely manner (at least daily), the cashier(s) should empty cash drawer and
                                                                                                                                                                                                            General Procedure                                                                                     http://www.
                                                                                                                                                                                                            Only Administrative Services Staff, or those identified by the VPA or Assistant Commissioner,
                                                                                                                                                                                                            will be allowed to collect incoming funds. If other DTAE Central Office or other Technical
                                                                                                                                                                                                            College staff should happen to obtain funds (via mail, etc) the funds should be immediately
                                                                                                                                                                                                            routed to a central collection point, typically the identified staff in the Administrative Services
                                                                                                                                                                                                            Office for processing. Appropriate staff from the Technical College or DTAE Central Office            http://www.dtae.org/adminservices/
                                                                                                                                                                                                            should log all incoming funds in a log or receipt book. In those instances where Banner is not        acct-
                                                                                                                                                                                                            used, pre-numbered receipts are preferred, as it facilitates verification that duplications, skips,   procedures/BankAccountReconcilia
O                                                                                                                                                                                                           or deletions of receipt numbers are avoided and that receipts are properly recorded. Any funds        tion.doc
                                                                                                                                                                                                            coming by mail should be secured in a safe/vault until such time they can be appropriately            http://www.dtae.org/adminservices/
                                                                                                                                                                                                            logged and processed. DTAE Central Office and each Technical College should have written              acct-procedures/PettyCash.doc
                                                                                                                                                                                                            guidelines to identify the person responsible for securing those receipts in order to insure          http://www.dtae.org/adminservices/
                                                                                                             Maintain audit trails for all                                                                  correct separation of duties. All incoming checks should be made out to the appropriate               new_acct_procedures/Safeguarding
                                                                                                             transactions and for data                                                                      Technical College or DTAE Central Office and should be immediately stamped with a                     _Cash_Handling_Incoming_Funds.
                                                                         Cash receipts are misplaced, lost   exchange points in the                                                                         restrictive endorsement. All funds, once logged, should be placed in a secure cash drawer,            doc
    CASH HANDLING & MANAGEMENT          CASH AND / OR CASH EQUIVALENTS   or mishandled                       system                          Do you Always secure cash in locked storage.                   box, or vault. In a timely manner (at least daily), the cashier(s) should empty cash drawer and       http://www.
                                                                                                                                                                                                                                                                                                                  http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                  acct-
                                                                                                                                                                                                                                                                                                                  procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                                  tion.doc
                                                                                                                                                                                                                                                                                                                  http://www.dtae.org/adminservices/
O                                                                                                                                                                                                                                                                                                                 acct-procedures/PettyCash.doc
                                                                                                                                                                                                                                                                                                                  http://www.dtae.org/adminservices/
                                                                                                                                             1. Are cashiers' daily cash reports subjected to supervisory   General                                                                                               new_acct_procedures/Safeguarding
                                                                         Data relating to cash transactions                                  review and approval? 2. Age receipts which are given to        Bank reconciliations for all bank accounts should be performed monthly. All bank                      _Cash_Handling_Incoming_Funds.
                                                                         is improperly created, altered or  Daily reconciliation of          individuals who deposit cash with the cashier dated and        reconciliations should be approved and signed by the Vice President of Administrative                 doc
    CASH HANDLING & MANAGEMENT          CASH AND / OR CASH EQUIVALENTS   deleted                            receipts to deposits             numerically controlled>                                        Services. The person performing the bank reconciliation should also sign the rec
                                                                                                                                                                                                            General Procedure                                                                                     http://www.
                                                                                                                                                                                                            Only Administrative Services Staff, or those identified by the VPA or Assistant Commissioner,
                                                                                                                                                                                                            will be allowed to collect incoming funds. If other DTAE Central Office or other Technical
                                                                                                                                                                                                            College staff should happen to obtain funds (via mail, etc) the funds should be immediately
                                                                                                                                                                                                            routed to a central collection point, typically the identified staff in the Administrative Services
                                                                                                                                                                                                            Office for processing. Appropriate staff from the Technical College or DTAE Central Office
                                                                                                                                                                                                            should log all incoming funds in a log or receipt book. In those instances where Banner is not
                                                                                                                                                                                                            used, pre-numbered receipts are preferred, as it facilitates verification that duplications, skips,
O                                                                                                                                                                                                           or deletions of receipt numbers are avoided and that receipts are properly recorded. Any funds
                                                                                                                                                                                                            coming by mail should be secured in a safe/vault until such time they can be appropriately
                                                                                                                                                                                                            logged and processed. DTAE Central Office and each Technical College should have written
                                                                                                             All entrances to cash                                                                          guidelines to identify the person responsible for securing those receipts in order to insure
                                                                                                             handling areas are                                                                             correct separation of duties. All incoming checks should be made out to the appropriate
                                                                                                             secured, alarmed, and                                                                          Technical College or DTAE Central Office and should be immediately stamped with a
                                                                         Lack of or inadequate security of   visible on security             Are all entrances to cash handling areas secured, alarmed,     restrictive endorsement. All funds, once logged, should be placed in a secure cash drawer,
    CASH HANDLING & MANAGEMENT          CASH AND / OR CASH EQUIVALENTS   facility and safety of personnel    cameras.                        and visible on security cameras.                               box, or vault. In a timely manner (at least daily), the cashier(s) should empty cash drawer and
                                                                                                                                                                                                            Printing of Financial System Checks
                                                                                                                                                                                                            DTAE Central Office and each Technical College shall determine the frequency of system
                                                                                                                                                                                                            check runs. In order for a check to be generated during the regular cycle, all documentation
                                                                                                                                                                                                            must be received by the Accounts Payable Department by the designated cut off date and time
                                                                                                                                                                                                            determined by each Technical College and DTAE Central Office.
                                                                                                                                                                                                            Every effort should be made to adhere to the designated cut off date and time.
                                                                                                                                                                                                            Emergency payment requests are considered on a case by case basis as determined by each               http://www.dtae.org/adminservices/
                                                                                                                                                                                                            Technical College and DTAE Central Office. When an emergency arises that requires a                   acct-
                                                                                                                                                                                                            manual check, the Administrative Services Office should be notified as soon as possible.              procedures/BankAccountReconcilia
O
                                                                                                                                                                                                            Though the timing of the processing may change, emergency payment requests still require              tion.doc
                                                                                                                                                                                                            the same documentation and support as other disbursements. In addition, the supporting                http://www.dtae.org/adminservices/
                                                                                                                                                                                                            documentation should explain the nature of the emergency, why the payment is needed                   acct-procedures/PettyCash.doc
                                                                                                                                                                                                            immediately and why paperwork wasn’t submitted to the Administrative Services Office in a             http://www.dtae.org/adminservices/
                                                                                                                                                                                                            timely manner.                                                                                        new_acct_procedures/Safeguarding
                                                                         Data relating to cash transactions                                                                                                 Check Signing                                                                                         _Cash_Handling_Incoming_Funds.
                                                                         is improperly created, altered or  Maintain/Review audit                                                                           After the Administrative Services Office at a Technical College produces system checks, the           doc
    CASH HANDLING & MANAGEMENT          Check Disbursements              deleted                            trails                           Is each bank account under separate ledger control?            checks shall be signed by the person authorized to sign checks (whose signature must be on a          http://www.




             DTAE Confidential                                                                                                                          8/4/2010                                                                                                                                                                Page 18
              Key Control Documentation                                                                                                                                                                                                                                                                    Fiscal Year 2006/07
                                                                                                                       Technical College __________________                                                                                                                                              Note: Initial and Date
                                                                                                                                                                                                                                                                                                     the box to document step


#             Risk Area                                     Sub Area                 Risk                     Control Name                                    Question                                                                   DTEA/SAO P&P                                                                Link(s)
                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                     acct-
                                                                                                                                                                                                                                                                                                     procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                     tion.doc
                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
O                                                                                                                                                                                                     Disbursing Petty Cash Funds                                                                    acct-procedures/PettyCash.doc
                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                Each disbursement made from the petty cash fund shall be approved by the VPA of the college          new_acct_procedures/Safeguarding
                                                                                                                                                                                                or his/her designee. A petty cash voucher must be completed for each payment. Payment is             _Cash_Handling_Incoming_Funds.
                                                                       Cash is not adequately              Cash is locked-up           Are the reimbursement vouchers approved by a responsible made in either of the following manners:                                                             doc
    CASH HANDLING & MANAGEMENT            Petty Cash Disbursements     safeguarded                         overnight                   employee who has no direct access to cash?               1. I                                                                                                 http://www.
                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                     acct-
                                                                                                                                                                                                                                                                                                     procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                     tion.doc
                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
O                                                                                                                                                                                                     Disbursing Petty Cash Funds                                                                    acct-procedures/PettyCash.doc
                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                      Each disbursement made from the petty cash fund shall be approved by the VPA of the college    new_acct_procedures/Safeguarding
                                                                                                                                                                                                      or his/her designee. A petty cash voucher must be completed for each payment. Payment is       _Cash_Handling_Incoming_Funds.
                                                                       Cash is not adequately              Cash is locked-up                                                                          made in either of the following manners:                                                       doc
    CASH HANDLING & MANAGEMENT            Petty Cash Disbursements     safeguarded                         overnight                   Is Petty Cash properly safeguarded?                            1. I                                                                                           http://www.
                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                     acct-
                                                                                                                                                                                                                                                                                                     procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                     tion.doc
                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
O                                                                                                                                                                                                     Disbursing Petty Cash Funds                                                                    acct-procedures/PettyCash.doc
                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                      Each disbursement made from the petty cash fund shall be approved by the VPA of the college    new_acct_procedures/Safeguarding
                                                                                                                                                                                                      or his/her designee. A petty cash voucher must be completed for each payment. Payment is       _Cash_Handling_Incoming_Funds.
                                                                       Cash is not adequately              Monitoring by                                                                              made in either of the following manners:                                                       doc
    CASH HANDLING & MANAGEMENT            Petty Cash Disbursements     safeguarded                         management                  Is the petty cash fund properly authorized?                    1. I                                                                                           http://www.
                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                     acct-
                                                                                                                                                                                                                                                                                                     procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                     tion.doc
                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
O                                                                                                                                                                                                     Disbursing Petty Cash Funds                                                                    acct-procedures/PettyCash.doc
                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                      Each disbursement made from the petty cash fund shall be approved by the VPA of the college    new_acct_procedures/Safeguarding
                                                                                                                                                                                                      or his/her designee. A petty cash voucher must be completed for each payment. Payment is       _Cash_Handling_Incoming_Funds.
                                                                       Cash is not deposited in a timely                               Are petty cash fund balances adequate for the activity's       made in either of the following manners:                                                       doc
    CASH HANDLING & MANAGEMENT            Petty Cash Disbursements     manner                              Training                    needs?                                                         1. I                                                                                           http://www.
                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                     acct-
                                                                                                                                                                                                                                                                                                     procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                     tion.doc
                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
O                                                                                                                                                                                                     Disbursing Petty Cash Funds                                                                    acct-procedures/PettyCash.doc
                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                      Each disbursement made from the petty cash fund shall be approved by the VPA of the college    new_acct_procedures/Safeguarding
                                                                                                                                                                                                      or his/her designee. A petty cash voucher must be completed for each payment. Payment is       _Cash_Handling_Incoming_Funds.
                                                                       Cash is not deposited in a timely   Supervisory review of       Is the custodian prohibited from handling more than one        made in either of the following manners:                                                       doc
    CASH HANDLING & MANAGEMENT            Petty Cash Disbursements     manner                              reconciliations             fund or other cash receipts?                                   1. I                                                                                           http://www.
                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                     acct-
                                                                                                                                                                                                                                                                                                     procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                     tion.doc
                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
O                                                                                                                                                                                                     Disbursing Petty Cash Funds                                                                    acct-procedures/PettyCash.doc
                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                      Each disbursement made from the petty cash fund shall be approved by the VPA of the college    new_acct_procedures/Safeguarding
                                                                                                                                                                                                      or his/her designee. A petty cash voucher must be completed for each payment. Payment is       _Cash_Handling_Incoming_Funds.
                                                                       Cashiers not knowledgeable of                                   If petty cash or change funds are present, are they formally   made in either of the following manners:                                                       doc
    CASH HANDLING & MANAGEMENT            Petty Cash Disbursements     proper cash handling                Training                    authorized by the campus cashier?                              1. I                                                                                           http://www.
                                                                                                           Continual monitoring of     Can the Technical College provide documentation assuring       The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
                                                                       Inadequate monitoring of off-
O   FINANCIAL AID                         FINANCIAL AID                                                    off-campus Federal Work     that Continual monitoring of off-campus Federal Work           Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
                                                                       campus Federal Work Study
                                                                                                           Study                       Study occurs ?                                                 student records.
                                                                                                           Documented policies and     Can the Technical College provide documentation assuring
                                                                       Inadequate monitoring of off-                                                                                                  The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
O   FINANCIAL AID                         FINANCIAL AID                                                    procedures to manage        that Documented policies and procedures to manage
                                                                       campus Federal Work Study                                                                                                      Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
                                                                                                           Federal Work Study          Federal Work Study occurs ?
                                                                                                                                                                                                      student records.
                                                                                                                                                                                                      The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
                                                                       Ineffective monitoring of non-                                  Can the Technical College provide documentation assuring
O   FINANCIAL AID                         FINANCIAL AID                                                    Monitoring aid process                                                                     Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
                                                                       collegial aid                                                   that Monitoring aid process occurs ?
                                                                                                                                                                                                      student records.
                                                                                                           Communication between       Can the Technical College provide documentation assuring       The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
                                                                       Late decision-making on
O   FINANCIAL AID                         FINANCIAL AID                                                    admissions and financial    that Communication between admissions and financial aid        Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
                                                                       enrollment by students
                                                                                                           aid                         occurs ?                                                       student records.
                                                                                                           they maintain a complaint
                                                                                                                                       Can the Technical College provide documentation assuring
                                                                                                           log or monitoring system
O   FINANCIAL AID                         FINANCIAL AID                Unmet student needs                                             that they maintain a complaint log or monitoring system        The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
                                                                                                           and perform student
                                                                                                                                       and perform student surveys to assess need?                    Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
                                                                                                           surveys to assess need
                                                                                                                                                                                                      student records.




               DTAE Confidential                                                                                                                  8/4/2010                                                                                                                                                         Page 19
              Key Control Documentation                                                                                                                                                                                                                                                                      Fiscal Year 2006/07
                                                                                                                         Technical College __________________                                                                                                                                              Note: Initial and Date
                                                                                                                                                                                                                                                                                                       the box to document step


#             Risk Area                                      Sub Area                 Risk                    Control Name                                  Question                                                                    DTEA/SAO P&P                                                                   Link(s)
                                                                                                                                                                                                    An enterprise fund is a fund used to account for revenues received for goods or services
                                                                                                                                                                                                    provided to the students or the general public on a continuing basis and primarily financed
                                                                                                                                                                                                    through user charges. Three criteria used to determine if an operation should be an enterprise
                                                                                                                                                                                                    fund include:
                                                                                                                                                                                                    1) Generates revenues,
                                                                                                                                                                                                    2) Provides services or goods to students or the community, and
                                                                                                                                                                                                    3) Operates as a stand-alone entity.
                                                                                                                                                                                                    Enterprise funds shall be considered as a source of revenue when developing annual budgets
                                                                        Accountability over recorded                                                                                                beginning in fiscal year 1988 in accordance with procedures developed by the Office of
                                                                                                           Documented Policies and   Are procedures in place to ensure that fund overdrafts are
O   GENERAL                               Cash Management               transactions may not be                                                                                                     Administrative Services.
                                                                                                           Procedures                prevented, or detected and corrected, as soon as possible?
                                                                        maintained                                                                                                                  Enterprise funds shall not be used to supplant existing State or Federal funding.
                                                                                                                                                                                                    Any revenues exceeding budgeted estimates shall be amended into the annual operating
                                                                                                                                                                                                    budget during the course of the fiscal year.
                                                                                                                                                                                                    Funds remaining in these enterprise accounts at the end of each fiscal year may be put in
                                                                                                                                                                                                    reserve funds to finance enterprise operations including capital outlay projects, maintenance of
                                                                                                                                                                                                    buildings and equipment, purchase of new equipment, or support of enterprise operations
                                                                                                                                                                                                    which are not self-sustaining.



                                                                                                                                                                                                    GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                                                                    SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
O                                                                                                                                                                                                                                                                                                      http://sao.georgia.gov/vgn/images/p
                                                                                                                                                                                                    In cases where tasks cannot be effectively separated, management can substitute increased
                                                                        Lack of documentation to support Proper storage of           Can the Technical College provide documentation assuring                                                                                                          ortal/cit_1210/13/27/48538431apm_
                                                                                                                                                                                                    supervision as an alternative control activity that can help prevent or reduce these risks.
    General                               Documentation                 capitalization                   documentation               that proper storage of documentation occurs?                                                                                                                      rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                    GA ACCOUNTING PROCEDURES MANUAL
                                                                        1. Employees may act unethically
                                                                                                                                     Can the Technical College provide documentation assuring       SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
O   GENERAL                               FINANCIAL ACTIVITY            or illegally. 2. Lack of team work.
                                                                                                                                     that proper "Tone at the Top" is in effect?                    In cases where tasks cannot be effectively separated, management can substitute increased
                                                                        3. Management override of
                                                                                                                                                                                                    supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                        existing policies and procedures    Tone at the top



                                                                                                                                                                                                    Schedule “1A” of this section provides a listing of funds which are included in the State of
                                                                                                                                                                                                    Georgia Comprehensive Annual Financial Report (CAFR) and the organizations which have
                                                                                                                                                                                                    transactions and balances included within these funds. The accounting records of these
                                                                                                                                                                                                    organizations must be maintained in such a manner as to allow for the preparation of GAAP
                                                                                                                                                                                                    financial statements. GAAP financial statements will be required in order to ensure that all
                                                                                                           Log of all management                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                        Management override of existing                              Does the Technical College utilize a log of all management     transactions and balances are properly recorded in the appropriate CAFR GAAP fund. GAAP
O   GENERAL                               FINANCIAL ACTIVITY                                               overrides is maintained                                                                                                                                                                   new_acct_procedures/adjustment_v
                                                                        policies and procedures                                      overrides, and is it maintained and reviewed?                  financial reporting encompasses both the government-wide financial statements and the fund
                                                                                                           and reviewed                                                                                                                                                                              ouchers.doc
                                                                                                                                                                                                    financial statements. The procedures in Section Three of this manual describe the differences
                                                                                                                                                                                                    in
                                                                                                                                                                                                    accounting for items on the budgetary basis and in accordance with GAAP. For organizations
                                                                                                                                                                                                    that do not prepare GAAP financial statements, there is a listing of information which should be
                                                                                                                                                                                                    provided to the auditors in order to make the adjustments/conversions to GAAP reporting.




                                                                                                                                                                                                    Schedule “1A” of this section provides a listing of funds which are included in the State of
                                                                                                                                                                                                    Georgia Comprehensive Annual Financial Report (CAFR) and the organizations which have
                                                                                                                                                                                                    transactions and balances included within these funds. The accounting records of these
                                                                                                                                                                                                    organizations must be maintained in such a manner as to allow for the preparation of GAAP
                                                                                                           Open door policy                                                                         financial statements. GAAP financial statements will be required in order to ensure that all
                                                                                                                                     Can the Technical College provide documentation assuring                                                                                                        http://www.dtae.org/adminservices/
                                                                                                           established with new                                                                     transactions and balances are properly recorded in the appropriate CAFR GAAP fund. GAAP
O   GENERAL                               FINANCIAL ACTIVITY            Poor tone at the top                                         that Open door policy established with new ideas welcome                                                                                                        new_acct_procedures/adjustment_v
                                                                                                           ideas welcome and                                                                        financial reporting encompasses both the government-wide financial statements and the fund
                                                                                                                                     and appreciated occurs?                                                                                                                                         ouchers.doc
                                                                                                           appreciated                                                                              financial statements. The procedures in Section Three of this manual describe the differences
                                                                                                                                                                                                    in
                                                                                                                                                                                                    accounting for items on the budgetary basis and in accordance with GAAP. For organizations
                                                                                                                                                                                                    that do not prepare GAAP financial statements, there is a listing of information which should be
                                                                                                                                                                                                    provided to the auditors in order to make the adjustments/conversions to GAAP reporting.




                                                                                                                                     Is use of Technical College resources that might be subject    GA ACCOUNTING PROCEDURES MANUAL
                                                                        Accountability over recorded
                                                                                                           Documented Policies and   to personal use (such as phones, fax, photocopier,             SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
O   GENERAL                               GENERAL                       transactions may not be
                                                                                                           Procedures                FedEx/DHL, Technical College vehicles, office supplies),       In cases where tasks cannot be effectively separated, management can substitute increased
                                                                        maintained
                                                                                                                                     monitored?                                                     supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                                                                                                                                                                                       http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                       acct-
                                                                                                                                     Is there adequate separation of duties in connection with                                                                                                         procedures/VendorMaintenance.do
                                                                                                                                                                                                    GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                     the following functions :  A. Control Over Blank PO's, B.                                                                                                         c
                                                                                                                                                                                                    SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
O   GENERAL                               GENERAL                       Fraudulent activity                Segregation of duties     Placing of orders with Vendors (including preparing of PO's,                                                                                                      http://www.dtae.org/adminservices/f
                                                                                                                                                                                                    In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                      C. Receiving, D. Approving of Vouchers for Payment, E.                                                                                                           orms/Purchasing.doc
                                                                                                                                                                                                    supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                     Processing of Approved Vouchers, F. Disbursing                                                                                                                    http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                       gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                       /53901646procurementmanual.pdf

                                                                                                                                                                                                    DTAE Central Office and the Technical Colleges Financial, HRMS, Document Direct, Citrix and
                                                                                                                                                                                                    Flex systems are supported by the State of Georgia. The Banner System is supported jointly by
                                                                                                                                                                                                    DTAE Central Office and the Technical Colleges. Data in these systems will be controlled and
                                                                                                                                                                                                    safeguarded to ensure accuracy and privacy. A person (user) who demonstrates a need to use
                                                                                                                                                                                                    the information contained in these systems to perform their job duties should have access to
                                                                                                                                                                                                    that data. The state of Georgia, DTAE and the Technical Colleges protect the privacy of this
O
                                                                                                                                                                                                    data by limiting access to authorized users for approved purposes. Unauthorized access to the
                                                                                                                                                                                                    financial, HRMS Document Direct, Citrix, Flex and Banner systems is prohibited.
                                                                                                                                                                                                    When data is transferred from a protected environment, the data may be used only for
                                                                                                                                                                                                    approved purposes. Individuals who transfer and/or receive data are responsible for its security
                                                                                                                                                                                                                                                                                                     http://sao.georgia.gov/vgn/images/p
                                                                                                                                                                                                    and unauthorized use or distribution is prohibited.
                                                                        Loss of system, building and/or                              Can the Technical College provide documentation assuring                                                                                                        ortal/cit_1210/13/27/48538431apm_
    General                               Information Technology        records                            Nightly backups           that nightly backups occurs?                                                                                                                                    rev5[1].pdf - Capital Asset Guide




               DTAE Confidential                                                                                                                8/4/2010                                                                                                                                                             Page 20
              Key Control Documentation                                                                                                                                                                                                                                                                  Fiscal Year 2006/07
                                                                                                                      Technical College __________________                                                                                                                                             Note: Initial and Date
                                                                                                                                                                                                                                                                                                   the box to document step


#             Risk Area                                  Sub Area                 Risk                      Control Name                                  Question                                                                    DTEA/SAO P&P                                                                 Link(s)

                                                                                                                                                                                                  Commitment to Competence
                                                                                                                                                                                                  Introduction
                                                                                                                                                                                                  The need for competent employees is obvious. Competence is a characteristic of people who
                                                                                                                                                                                                  have the skill, knowledge and ability to perform a task. This is especially true in an Information
                                                                                                                                                                                                  Technology environment. People who are poorly trained or just don't know what to do in a crisis
                                                                                                                                                                                                  cannot be expected to support and promote controls, as they are too busy merely trying to get
                                                                                                                                                                                                  the
                                                                                                                                                                                                  job done. Management is responsible for ensuring the competency of its personnel and can
                                                                                                                                                                                                  accomplish this by establishing appropriate human resource policies and procedures.
                                                                                                                                                                                                  Management sets standards for how well tasks should be performed and must then consider
                                                                                                                                                                                                  the
                                                                                                                                                                                                  balance between competence and cost. Higher competence requires less supervision but must
                                                                    1. Poor investment
                                                                                                                                                                                                  be
                                                                    decisions/strategy. 2. Improper                                                                                                                                                                                                  http://www.dtae.org/adminservices/
                                                                                                                                   Can the Technical College provide documentation assuring       weighed against the higher cost of retaining more experienced personnel. Supervisors analyze
O   GENERAL                               PERSONNEL                 allocation of investment earnings. Hiring of qualified staff                                                                                                                                                                     new_acct_procedures/adjustment_v
                                                                                                                                   that Hiring of qualified staff occurs?                         what knowledge and skills are needed by employees to perform their jobs adequately. Formal
                                                                    3. Violation of arbitrage                                                                                                                                                                                                        ouchers.doc
                                                                                                                                                                                                  and informal job descriptions assist staff in defining the tasks their particular jobs entail.
                                                                    provisions and bond indentures.
                                                                                                                                                                                                  Implementation Guidance
                                                                                                                                                                                                  1. Establish formal written job descriptions to define tasks comprising the jobs/positions.
                                                                                                                                                                                                  a. Formally analyze the tasks comprising the job.
                                                                                                                                                                                                  b. Consider the extent to which individuals must exercise judgment.
                                                                                                                                                                                                  c. Consider the extent of supervision needed.
                                                                                                                                                                                                  d. Formally analyze and document the knowledge and skills needed by individuals to
                                                                                                                                                                                                  perform the job.
                                                                                                                                                                                                  2. Evaluate the knowledge and skill exhibited by employees in performing their jobs.
                                                                                                                                                                                                  a. Document evidence showing your employees appear to have these skills and
                                                                                                                                                                                                  knowledge.
                                                                                                                                                                                                  b. Provide training opportunities for all employees, as necessary, to update and
                                                                                                                                                                                                  increase their knowledge and skills.



                                                                                                                                   Is there adequate separation of duties between persons         GA ACCOUNTING PROCEDURES MANUAL
                                                                                                        Documented policies and    who handle the inventories and those who handle the            SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
O   GENERAL                               SEPARATION OF DUTIES      Fraudulent activity
                                                                                                        Procedures                 inventory records, recording of purchases and the sales        In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                   billings?                                                      supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                   Is there adequate separation of duties between the             GA ACCOUNTING PROCEDURES MANUAL
                                                                                                        Documented policies and    preparation of documents for payment, approval of              SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
O   GENERAL                               SEPARATION OF DUTIES      Fraudulent activity
                                                                                                        Procedures                 documents for payment, the preparation of checks, and the      In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                   signing of checks                                              supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                   Is there adequate separation of duties between persons         GA ACCOUNTING PROCEDURES MANUAL
                                                                                                        Documented policies and    responsible for receiving cash, deposition cash, reconciling   SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
O   GENERAL                               SEPARATION OF DUTIES      Fraudulent activity
                                                                                                        Procedures                 cash deposits to supporting documents, and reviewing           In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                   recorded cash deposits?                                        supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                                                                                  GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                   Is there adequate separation of duties between cashier
                                                                                                        Documented policies and                                                                   SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
O   GENERAL                               SEPARATION OF DUTIES      Fraudulent activity                                            duties, accounts receivable duties and cash disbursement
                                                                                                        Procedures                                                                                In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                   duties?
                                                                                                                                                                                                  supervision as an alternative control activity that can help prevent or reduce these risks.




               DTAE Confidential                                                                                                              8/4/2010                                                                                                                                                           Page 21
             Key Control Documentation                                                                                                                                                                                                                                                                                          Fiscal Year 2006/07
                                                                                                                                         Technical College __________________                                                                                                                                                 Note: Initial and Date
                                                                                                                                                                                                                                                                                                                          the box to document step


#            Risk Area                                   Sub Area                                   Risk                      Control Name                                      Question                                                                     DTEA/SAO P&P                                                                 Link(s)
                                                                                                                                                                                                                                                                                                                          http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                          acct-
                                                                                                                                                                                                                                                                                                                          procedures/VendorMaintenance.do
                                                                                  Fraud can occur in various forms                                                                                                     GA ACCOUNTING PROCEDURES MANUAL
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                           Has the Technical College ever experienced someone                                                                                                                c
                                         ACCOUNTS PAYABLE: ACCOUNT RANGE: 200000- such as ghost vendors,                   Documented policies and                                                                     SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
P   LIABILITIES, AND OTHER                                                                                                                              attempting to create fake checks in its name? Are paid                                                                                                            http://www.dtae.org/adminservices/f
                                         202999, 210000, 214000-215999 and 220    kickbacks, purchase of personal          procedures                                                                                  In cases where tasks cannot be effectively separated, management can substitute increased
    LIABILITIES                                                                                                                                         checks scrutinized for suspicious or irregular features?                                                                                                          orms/Purchasing.doc
                                                                                  items, etc.                                                                                                                          supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                                          http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                          gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                          /53901646procurementmanual.pdf
                                                                                                                                                                                                                    "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                           Can the Technical College provide documentation assuring process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                                                           Confirm deductions with                                                                                                                                                                        http://www.dtae.org/adminservices/
P   LIABILITIES, AND OTHER               PAYROLL                                      Inaccurate or invalid deductions                                  that confirmation of deductions with employees periodically generated from this system.
                                                                                                                           employees periodically                                                                                                                                                                         new_acct_procedures/1099S.doc
    LIABILITIES                                                                                                                                         occurs?                                                     The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                                                                                                                                                    generation of individual payroll checks for Department employees."
                                                                                                                                                                                                                                                                                                                          http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                          acct-
                                                                                                                                                                                                                                                                                                                          procedures/VendorMaintenance.do
                                                                                                                                                        Are open purchase orders periodically reviewed and             GA ACCOUNTING PROCEDURES MANUAL
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                             c
                                         PURCHASING: ACCOUNT RANGE: 200000-202999,                                         Documented policies and      investigated? If so, please describe how frequently these      SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
P   LIABILITIES, AND OTHER                                                         Fraudulent activity                                                                                                                                                                                                                    http://www.dtae.org/adminservices/f
                                         210000, 214000-215999 and 220                                                     procedures                   purchase orders are reviewed, and please describe the          In cases where tasks cannot be effectively separated, management can substitute increased
    LIABILITIES                                                                                                                                                                                                                                                                                                           orms/Purchasing.doc
                                                                                                                                                        process used to investigate these situations.                  supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                                          http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                          gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                          /53901646procurementmanual.pdf
                                                                                                                                                                                                                       Periodic Physical Counts
                                                                                      Improper transfer of assets                                                                                                      Under this system, inventory is determined by a physical count as of a specific date. The extent   http://sao.georgia.gov/vgn/images/p
P
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-        between departments or to an                                      Is equipment on site verified to the Technical College's       of records maintained depends upon the frequency of the counts. The inventory at year-end is       ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000                    agency                               Periodic count of assets     official inventory listing?                                    determined by the physical count and is
                                                                                                                                                                                                                       The Central Office and all Technical Colleges shall maintain accurate inventory records on the     rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                                       statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                       expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                       software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                       the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                       all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                       The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                       property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                       employment relationship ends. State property includes but is not limited to keys, credit cards,
P
                                                                                                                                                                                                                       telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                       issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                       the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                       to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                       accounted for by the employee.
                                                                                                                           Test security systems at a   Can the Technical College provide documentation assuring       The Central Office and all Technical Colleges shall have the option to maintain inventory          http://sao.georgia.gov/vgn/images/p
                                         CAPITAL ASSETS ACCOUNT RANGE: 170000-        Loss of system, building and/or      minimum semi-annually        that test of security systems at a minimum semi-annually       records for all property items costing less than $1,000. Such inventory shall be separately        ortal/cit_1210/13/27/48538431apm_
    CAPITAL ASSETS                       176999, 180000 and 183000                    records                              and maintain records.        and maintain records. occurs?                                  maintained. Office and all Technical Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                                       The Central                                                                                        rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                                       statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                       expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                       software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                       the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                       all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                       The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                       property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                       employment relationship ends. State property includes but is not limited to keys, credit cards,
P
                                                                                                                                                                                                                       telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                       issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                       the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                       to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                       accounted for by the employee.
                                                                                                                                                                                                                       The Central Office and all Technical Colleges shall have the option to maintain inventory
                                                                                      Failure to perform deferred                                       Can the Technical College provide documentation assuring       records for all property items costing less than $1,000. Such inventory shall be separately
    CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS      maintenance on facilities            Routine inspections          that routine inspections occurs?                               maintained.                                                                                        http://www.dtae.org/architect.html

                                                                                                                                                                                                                       Depreciation Capital Assets
P                                                                                                                                                                                                                      Capital assets should be depreciated over their estimated useful lives unless they are
                                                                                      Improper valuation / Incorrect       Periodic valuation of        When assets are to be depreciated - Are records                inexhaustible. For a definition of an “inexhaustible asset,” see the Works of Art and Historical
    CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS      Financial Statements                 assets                       maintained of fully depreciated assets which are still in use? Treasures section of this guide The straight                                                       http://www.dtae.org/architect.html

                                                                                                                                                                                                                       Depreciation Capital Assets
P                                                                                                                                                                                                                      Capital assets should be depreciated over their estimated useful lives unless they are
                                                                                                                           Periodic valuation of        When assets are to be depreciated - Are useful lives           inexhaustible. For a definition of an “inexhaustible asset,” see the Works of Art and Historical
    CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS      Improper valuation                   assets                       reasonable?                                                    Treasures section of this guide The straight shall maintain accurate inventory records on the
                                                                                                                                                                                                                       The Central Office and all Technical Colleges                                                      http://www.dtae.org/architect.html
                                                                                                                                                                                                                       statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                       expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                       software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                       the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                       all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                       The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                       property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                       employment relationship ends. State property includes but is not limited to keys, credit cards,
P
                                                                                                                                                                                                                       telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                       issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                       the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                       to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                       accounted for by the employee.
                                                                                                                                                                                                                       The Central Office and all Technical Colleges shall have the option to maintain inventory
                                                                                      Substantial heating or cooling                                    Can the Technical College provide documentation assuring       records for all property items costing less than $1,000. Such inventory shall be separately
    CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS      loss due to infrastructure failure   Inspections                  that inspections occurs?                                       maintained.                                                                                        http://www.dtae.org/architect.html




              DTAE Confidential                                                                                                                                    8/4/2010                                                                                                                                                             Page 22
             Key Control Documentation                                                                                                                                                                                                                                                                                     Fiscal Year 2006/07
                                                                                                                                     Technical College __________________                                                                                                                                                Note: Initial and Date
                                                                                                                                                                                                                                                                                                                     the box to document step


#            Risk Area                                  Sub Area                                 Risk                     Control Name                                     Question                                The Central Office and all Technical DTEA/SAO P&P accurate inventory records on the
                                                                                                                                                                                                                                                         Colleges shall maintain                                                     Link(s)
                                                                                                                                                                                                                   statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                   expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                   software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                   the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                   all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                   The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                   property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                   employment relationship ends. State property includes but is not limited to keys, credit cards,
P
                                                                                                                                                                                                                   telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                   issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                   the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                   to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                   accounted for by the employee.
                                                                                                                                                                                                                   The Central Office and all Technical Colleges shall have the option to maintain inventory
                                                                                   Substantial heating or cooling      Periodic assessment of       Can the Technical College provide documentation assuring       records for all property items costing less than $1,000. Such inventory shall be separately
    CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS   loss due to infrastructure failure  renovations                  that periodic assessment of renovations occurs?                maintained.                                                                                       http://www.dtae.org/architect.html
                                                                                   1.Failure to properly calculate or
                                                                                   account for sales tax. 2. Ghost
                                                                                                                                                                                                                   Georgia sales and use tax shall be collected and reported as required by the Georgia Sales
                                                                                   Vendors. 3. Ineffective cash
                                                                                                                                                                                                                   and Use Tax Laws and Regulations.
                                                                                   mgmt. 4. Unable to furnish
                                                                                                                                                                                                                   The Technical Colleges shall charge and collect sales and use tax where appropriate.
                                                                                   students with correct financial aid                              Can the Technical College provide documentation assuring
P   CASH HANDLING & MANAGEMENT           BOOKSTORE                                                                     Periodic audits                                                                             The Technical Colleges shall report taxes in accordance with accounting procedures
                                                                                   balance. 5. Unauthorized,                                        that stated risks do not have the opportunity to occur?
                                                                                                                                                                                                                   established by the Department of Audits and Accounts and the State Accounting Office.
                                                                                   untimely or inaccurate
                                                                                                                                                                                                                   Technical Colleges shall direct specific questions to the Georgia Department of Revenue or a
                                                                                   departmental charge backs. 6.
                                                                                                                                                                                                                   Regional Sales Tax Office."
                                                                                   Unplanned and / or uncontrolled
                                                                                   book buyback process.
                                                                                                                                                                                                                   General
                                                                                                                                                                                                                   Bank reconciliations for all bank accounts should be performed monthly. All bank
                                                                                                                                                                                                                   reconciliations should be approved and signed by the Vice President of Administrative
                                                                                                                                                                                                                   Services. The person performing the bank reconciliation should also sign the reconciliation.
                                                                                                                                                                                                                   Note: When using the People Soft accounting system, prior to performing the reconciliations,
                                                                                                                                                                                                                   the monthly balancing of the AP and AR modules should be done and any reconciling items
                                                                                                                                                                                                                   should be resolved. Also all journal vouchers that hit the cash accounts should be identified.
                                                                                                                                                                                                                   Deposits
                                                                                                                                                                                                                   Run Monthly Cash Receipts Journal (AR408) for the month being reconciled. Check off and
                                                                                                                                                                                                                   put the deposit number next to the deposits listed on the bank statement. Any deposits not on
                                                                                                                                                                                                                   the Cash Receipts Journal should be a reconciling item to the GL on the bank recon. Any
                                                                                                                                                                                                                   deposits on the Cash Receipts Journal and not on the bank statement are deposits in transit.
                                                                                   1.Unauthorized, untimely or                                                                                                     Checks
                                                                                                                                                                                                                   Run Cash Disbursements (Query AP004) and sort by pay status. Subtract any checks issued           http://www.dtae.org/adminservices/
                                                                                   inaccurate departmental charge
                                                                                                                       Periodic reconciliation of   Can the Technical College provide documentation assuring       in previous period and voided in current period. Omit any checks issued and voided in current     acct-
P   CASH HANDLING & MANAGEMENT           BOOKSTORE                                 backs. 2. Unable to furnish
                                                                                                                       ledgers                      that stated risks do not have the opportunity to occur?        period. Balance this amount to the AP transactions on the Trial Balance by Business Unit          procedures/BankAccountReconcilia
                                                                                   students with correct financial aid
                                                                                                                                                                                                                   (GL44M) for the cash account being reconciled.                                                    tion.doc
                                                                                   balance. 3. Ghost vendors.
                                                                                                                                                                                                                   Account for all the checks cleared on the bank statement on both the Cash Disbursements
                                                                                                                                                                                                                   Query and the previous month’s outstanding check list. List all other checks as outstanding. If
                                                                                                                                                                                                                   a check cleared the bank, but was not posted on the Cash Disbursements Query, it should be
                                                                                                                                                                                                                   listed as a reconciling item to the GL on the bank recon.
                                                                                                                                                                                                                   If checks are run out of the Banner A/R system, obtain the check register for Banner. Check
                                                                                                                                                                                                                   off all checks that cleared the bank and have been recorded in the General Ledger and list all
                                                                                                                                                                                                                   others as outstanding. If a check cleared the bank, but was not recorded in the General
                                                                                                                                                                                                                   Ledger, it should be listed as a reconciling item to the GL on the bank recon.
                                                                                                                                                                                                                   Account for all manual checks issued thru month end to ensure they have been entered into
                                                                                                                                                                                                                   the accounting system. If they have not been entered into the accounting system, an entry
                                                                                                                                                                                                                   should be made to the bank side and the GL side. Entries will be offsetting.
                                                                                                                                                                                                                   See the procedure for Outstanding Checks for instructions on following up on outstanding
                                                                                                                                                                                                                   checks.
                                                                                                                                                                                                                   GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                       Periodic comparison of       Can the Technical College provide documentation assuring
                                                                                                                                                                                                                   SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
P   CASH HANDLING & MANAGEMENT           BOOKSTORE                                 Ghost vendors                       vendor and employee          that Periodic comparison of vendor and employee
                                                                                                                                                                                                                   In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                       addresses                    addresses occurs?
                                                                                                                                                                                                                   supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                                                                                                   GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                       Periodic calculation of      Can the Technical College provide documentation assuring       SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
P   CASH HANDLING & MANAGEMENT           BOOKSTORE                                 Obsolete inventory
                                                                                                                       inventory turnover rate      that Periodic calculation of inventory turnover rate occurs?   In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                                                                                                   supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                                                                                                   GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                    Can the Technical College provide documentation assuring
                                                                                                                                                                                                                   SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
P   CASH HANDLING & MANAGEMENT           BOOKSTORE                                 Poor customer service               Customer surveys             that customer surveys and secret shoppers are used to
                                                                                                                                                                                                                   In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                                    evaluate customer service?
                                                                                                                                                                                                                   supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                     acct-
                                                                                                                                                                                                                                                                                                                     procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                                     tion.doc
                                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
P                                                                                                                                                                                                                                                                                                                    acct-procedures/PettyCash.doc
                                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                                   General                                                                                           new_acct_procedures/Safeguarding
                                                                                                                       Reconciliation of cash       Can the Technical College provide documentation assuring       Bank reconciliations for all bank accounts should be performed monthly. All bank                  _Cash_Handling_Incoming_Funds.
                                                                                   Cash receipts are misplaced, lost   receipts logs to daily       the performance of unannounced verifications of change         reconciliations should be approved and signed by the Vice President of Administrative             doc
    CASH HANDLING & MANAGEMENT           CASH AND / OR CASH EQUIVALENTS            or mishandled                       deposits                     and petty cash funds on a regular but random basis.            Services. The person performing the bank reconciliation should also sign the rec                  http://www.
                                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                     acct-
                                                                                                                                                                                                                                                                                                                     procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                                     tion.doc
                                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
P                                                                                                                                                                                                                                                                                                                    acct-procedures/PettyCash.doc
                                                                                                                                                                                                                   Sale of Capital Assets                                                                            http://www.dtae.org/adminservices/
                                                                                                                                                                                                                   When an asset is sold to a non-state entity or another state agency, a gain or loss must be       new_acct_procedures/Safeguarding
                                                                                                                                                  If cash is received from sales of items, are recorded sales      recognized in the accounting records when:                                                        _Cash_Handling_Incoming_Funds.
                                                                                   Controls over wire transfers are    Electronic access controls reconciled to the amount of items on hand regularly and          • cash is exchanged and the amount paid does not equal the net book value of the asset            doc
    CASH HANDLING & MANAGEMENT           Live Works                                not adequate                        are maintained             timely?                                                          • cash is                                                                                         http://www.



              DTAE Confidential                                                                                                                                8/4/2010                                                                                                                                                            Page 23
              Key Control Documentation                                                                                                                                                                                                                                                                    Fiscal Year 2006/07
                                                                                                                         Technical College __________________                                                                                                                                            Note: Initial and Date
                                                                                                                                                                                                                                                                                                     the box to document step


#             Risk Area                                     Sub Area                 Risk                     Control Name                                        Question                                                               DTEA/SAO P&P                                                                Link(s)
                                                                                                                                                                                                                                                                                                  http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                  acct-
                                                                                                                                                                                                                                                                                                  procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                  tion.doc
                                                                                                                                                                                                                                                                                                  http://www.dtae.org/adminservices/
P                                                                                                                                                                                                     Disbursing Petty Cash Funds                                                                 acct-procedures/PettyCash.doc
                                                                                                                                                                                                                                                                                                  http://www.dtae.org/adminservices/
                                                                                                                                                                                                      Each disbursement made from the petty cash fund shall be approved by the VPA of the college new_acct_procedures/Safeguarding
                                                                                                                                                                                                      or his/her designee. A petty cash voucher must be completed for each payment. Payment is    _Cash_Handling_Incoming_Funds.
                                                                       Cash is not deposited in a timely                                                                                              made in either of the following manners:                                                    doc
    CASH HANDLING & MANAGEMENT            Petty Cash Disbursements     manner                          Deposit receipts daily             Is the fund verified by surprise counts?                    1. I                                                                                        http://www.
                                                                                                       Random reviews of
                                                                                                       selected student records           Can the Technical College provide documentation assuring
P   FINANCIAL AID                         FINANCIAL AID                Inadequate aid packaging system to ensure that automated           that Random reviews of selected student records to ensure   The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
                                                                                                       processes are working              that automated processes are working properly occurs ?      Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
                                                                                                       properly                                                                                       student records.
                                                                                                                                                                                                      The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
                                                                                                           Plan for different levels of   Can the Technical College provide documentation on any
P   FINANCIAL AID                         FINANCIAL AID                Uncertainty of funding levels                                                                                                  Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
                                                                                                           funding                        contingency plans for differing levels of funding?
                                                                                                                                                                                                      student records.



                                                                                                                                                                                                      Schedule “1A” of this section provides a listing of funds which are included in the State of
                                                                                                                                                                                                      Georgia Comprehensive Annual Financial Report (CAFR) and the organizations which have
                                                                                                                                                                                                      transactions and balances included within these funds. The accounting records of these
                                                                                                                                                                                                      organizations must be maintained in such a manner as to allow for the preparation of GAAP
                                                                                                           Scheduled regular                                                                          financial statements. GAAP financial statements will be required in order to ensure that all
                                                                                                                                          Can the Technical College provide documentation assuring                                                                                                     http://www.dtae.org/adminservices/
                                                                                                           meetings to discuss                                                                        transactions and balances are properly recorded in the appropriate CAFR GAAP fund. GAAP
P   GENERAL                               FINANCIAL ACTIVITY           Inadequate communication                                           that Scheduled regular meetings to discuss projects,                                                                                                         new_acct_procedures/adjustment_v
                                                                                                           projects, common issues                                                                    financial reporting encompasses both the government-wide financial statements and the fund
                                                                                                                                          common issues and individual needs occurs?                                                                                                                   ouchers.doc
                                                                                                           and individual needs                                                                       financial statements. The procedures in Section Three of this manual describe the differences
                                                                                                                                                                                                      in
                                                                                                                                                                                                      accounting for items on the budgetary basis and in accordance with GAAP. For organizations
                                                                                                                                                                                                      that do not prepare GAAP financial statements, there is a listing of information which should be
                                                                                                                                                                                                      provided to the auditors in order to make the adjustments/conversions to GAAP reporting.




                                                                                                                                                                                                      Schedule “1A” of this section provides a listing of funds which are included in the State of
                                                                                                                                                                                                      Georgia Comprehensive Annual Financial Report (CAFR) and the organizations which have
                                                                                                                                                                                                      transactions and balances included within these funds. The accounting records of these
                                                                                                                                                                                                      organizations must be maintained in such a manner as to allow for the preparation of GAAP
                                                                                                           Responsible parties                                                                        financial statements. GAAP financial statements will be required in order to ensure that all
                                                                                                                                          Can the Technical College provide documentation assuring                                                                                                     http://www.dtae.org/adminservices/
                                                                       Inadequate management of high       assigned to all high risks                                                                 transactions and balances are properly recorded in the appropriate CAFR GAAP fund. GAAP
P   GENERAL                               FINANCIAL ACTIVITY                                                                              that Responsible parties assigned to all high risks meet                                                                                                     new_acct_procedures/adjustment_v
                                                                       risk areas                          meet periodically to                                                                       financial reporting encompasses both the government-wide financial statements and the fund
                                                                                                                                          periodically to discuss emerging issues occurs?                                                                                                              ouchers.doc
                                                                                                           discuss emerging issues                                                                    financial statements. The procedures in Section Three of this manual describe the differences
                                                                                                                                                                                                      in
                                                                                                                                                                                                      accounting for items on the budgetary basis and in accordance with GAAP. For organizations
                                                                                                                                                                                                      that do not prepare GAAP financial statements, there is a listing of information which should be
                                                                                                                                                                                                      provided to the auditors in order to make the adjustments/conversions to GAAP reporting.




                                                                                                                                                                                                      Schedule “1A” of this section provides a listing of funds which are included in the State of
                                                                                                                                                                                                      Georgia Comprehensive Annual Financial Report (CAFR) and the organizations which have
                                                                                                                                                                                                      transactions and balances included within these funds. The accounting records of these
                                                                                                                                                                                                      organizations must be maintained in such a manner as to allow for the preparation of GAAP
                                                                                                                                                                                                      financial statements. GAAP financial statements will be required in order to ensure that all
                                                                                                           Performance goals and       Can the Technical College provide documentation assuring                                                                                                        http://www.dtae.org/adminservices/
                                                                       Non-existent or inadequate                                                                                                     transactions and balances are properly recorded in the appropriate CAFR GAAP fund. GAAP
P   GENERAL                               FINANCIAL ACTIVITY                                               objectives are periodically that Performance goals and objectives are periodically                                                                                                          new_acct_procedures/adjustment_v
                                                                       performance measures                                                                                                           financial reporting encompasses both the government-wide financial statements and the fund
                                                                                                           review for appropriateness review for appropriateness occurs?                                                                                                                               ouchers.doc
                                                                                                                                                                                                      financial statements. The procedures in Section Three of this manual describe the differences
                                                                                                                                                                                                      in
                                                                                                                                                                                                      accounting for items on the budgetary basis and in accordance with GAAP. For organizations
                                                                                                                                                                                                      that do not prepare GAAP financial statements, there is a listing of information which should be
                                                                                                                                                                                                      provided to the auditors in order to make the adjustments/conversions to GAAP reporting.




               DTAE Confidential                                                                                                                     8/4/2010                                                                                                                                                      Page 24
             Key Control Documentation                                                                                                                                                                                                                                                                                  Fiscal Year 2006/07
                                                                                                                                  Technical College __________________                                                                                                                                                Note: Initial and Date
                                                                                                                                                                                                                                                                                                                  the box to document step


#            Risk Area                                  Sub Area                              Risk                      Control Name                                     Question                                                                   DTEA/SAO P&P                                                                  Link(s)
                                                                                                                                                                                                                                                                                                                  http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                  acct-
                                                                                                                                                                                                                                                                                                                  procedures/VendorMaintenance.do
                                                                                Fraud can occur in various forms                                                                                                GA ACCOUNTING PROCEDURES MANUAL
     ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                    c
                                         BANK RECONCILIATIONS: ACCOUNT RANGE:   such as ghost vendors,               Documented policies and     What specific security features do Technical College           SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   LIABILITIES, AND OTHER                                                                                                                                                                                                                                                                                       http://www.dtae.org/adminservices/f
                                         200000-202999, 210000, 214000-         kickbacks, purchase of personal      procedures                  checks have which help protect them against alteration?        In cases where tasks cannot be effectively separated, management can substitute increased
     LIABILITIES                                                                                                                                                                                                                                                                                                  orms/Purchasing.doc
                                                                                items, etc.                                                                                                                     supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                                  http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                  gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                  /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                                  http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                  acct-
                                                                                Fraud can occur in various forms
                                                                                                                                                                                                                                                                                                                  procedures/VendorMaintenance.do
                                                                                such as ghost vendors,                                                                                                          GA ACCOUNTING PROCEDURES MANUAL
     ACCOUNTS PAYABLE, ACCRUED                                                                                                                   What is the procedure for notifying a bank of changes in                                                                                                         c
                                         BANK RECONCILIATIONS: ACCOUNT RANGE:   kickbacks, purchase of personal      Documented policies and                                                                    SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   LIABILITIES, AND OTHER                                                                                                                      authorized checking account signors? Who is currently                                                                                                            http://www.dtae.org/adminservices/f
                                         200000-202999, 210000, 214000-         items, etc.                          procedures                                                                                 In cases where tasks cannot be effectively separated, management can substitute increased
     LIABILITIES                                                                                                                                 authorized to sign Technical College checks?                                                                                                                     orms/Purchasing.doc
                                                                                Cash is not adequately                                                                                                          supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                                  http://statepurchasing.doas.georgia.
                                                                                safeguarded
                                                                                                                                                                                                                                                                                                                  gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                  /53901646procurementmanual.pdf
                                                                                                                                                                                                                "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
     ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                  process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                Failure to identify fictitious / ghost Management review and        Do procedures exist to insure that all employees are bona                                                                                                     http://www.dtae.org/adminservices/
PA   LIABILITIES, AND OTHER              PAYROLL                                                                                                                                                                generated from this system.
                                                                                employees                              approval of payroll register fide?                                                                                                                                                         new_acct_procedures/1099S.doc
     LIABILITIES                                                                                                                                                                                                The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                                                                                                                                                generation of individual payroll checks for Department employees."
                                                                                                                                              Do procedures exist to prevent employees from receiving           GA ACCOUNTING PROCEDURES MANUAL
     ACCOUNTS PAYABLE, ACCRUED                                                                                       Segregation of duties
                                                                                                                                              pay other than through properly approved and processed            SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES                                       http://www.dtae.org/adminservices/
PA   LIABILITIES, AND OTHER              PAYROLL                                Falsified time reports               (Independent timekeeping
                                                                                                                                              payroll procedures for services performed (for example,           In cases where tasks cannot be effectively separated, management can substitute increased         new_acct_procedures/1099S.doc
     LIABILITIES                                                                                                     function)
                                                                                                                                              consulting services)?                                             supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                     Documented policies and                                                                 "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
     ACCOUNTS PAYABLE, ACCRUED                                                  Improper recording of PTO            procedures for recording                                                                process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                                                                                 Are vacation, sick leave and compensating time off properly                                                                                                      http://www.dtae.org/adminservices/
PA   LIABILITIES, AND OTHER              PAYROLL                                (vacation/sick leave                 of PTO and submission of                                                                generated from this system.
                                                                                                                                                 documented and controlled?                                                                                                                                       new_acct_procedures/1099S.doc
     LIABILITIES                                                                paid/disability)                     information to Payroll                                                                  The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                                                     Office                                                                                  generation of individual payroll checks for Department employees."
                                                                                                                                                                                                                "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
     ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                  process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                                                     Limited access to           Can the Technical College provide documentation assuring                                                                                                         http://www.dtae.org/dtaepolicy/men
PA   LIABILITIES, AND OTHER              PAYROLL                                Misappropriation of payroll checks                                                                                              generated from this system.
                                                                                                                     signature plates            that limited access to signature plates occurs?                                                                                                                  u.html
     LIABILITIES                                                                                                                                                                                                The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                                                                                                                                                generation of individual payroll checks for Department employees."


                                                                                                                                                                                                                Commitment to Competence
                                                                                                                                                                                                                Introduction
                                                                                                                                                                                                                The need for competent employees is obvious. Competence is a characteristic of people who
                                                                                                                                                                                                                have the skill, knowledge and ability to perform a task. This is especially true in an Information
                                                                                                                                                                                                                Technology environment. People who are poorly trained or just don't know what to do in a crisis
                                                                                                                                                                                                                cannot be expected to support and promote controls, as they are too busy merely trying to get
                                                                                                                                                                                                                the
                                                                                                                                                                                                                job done. Management is responsible for ensuring the competency of its personnel and can
                                                                                                                                                                                                                accomplish this by establishing appropriate human resource policies and procedures.
                                                                                                                                                                                                                Management sets standards for how well tasks should be performed and must then consider
                                                                                                                                                                                                                the
                                                                                                                                                                                                                balance between competence and cost. Higher competence requires less supervision but must
                                                                                                                                                                                                                be
     ACCOUNTS PAYABLE, ACCRUED                                                  Non-compliance with payroll laws
                                                                                                                                                 Is there uniform application of payroll policies regarding Job weighed against the higher cost of retaining more experienced personnel. Supervisors analyze http://www.dtae.org/dtaepolicy/men
PA   LIABILITIES, AND OTHER              PAYROLL                                (fair labor standards, IRS       Hire & train qualified staff
                                                                                                                                                 classifications and salary ranges?                             what knowledge and skills are needed by employees to perform their jobs adequately. Formal         u.html
     LIABILITIES                                                                deposits, etc)
                                                                                                                                                                                                                and informal job descriptions assist staff in defining the tasks their particular jobs entail.
                                                                                                                                                                                                                Implementation Guidance
                                                                                                                                                                                                                1. Establish formal written job descriptions to define tasks comprising the jobs/positions.
                                                                                                                                                                                                                a. Formally analyze the tasks comprising the job.
                                                                                                                                                                                                                b. Consider the extent to which individuals must exercise judgment.
                                                                                                                                                                                                                c. Consider the extent of supervision needed.
                                                                                                                                                                                                                d. Formally analyze and document the knowledge and skills needed by individuals to
                                                                                                                                                                                                                perform the job.
                                                                                                                                                                                                                2. Evaluate the knowledge and skill exhibited by employees in performing their jobs.
                                                                                                                                                                                                                a. Document evidence showing your employees appear to have these skills and
                                                                                                                                                                                                                knowledge.
                                                                                                                                                                                                                b. Provide training opportunities for all employees, as necessary, to update and
                                                                                                                                                                                                                increase their knowledge and skills.



                                                                                                                                                                                                                                                                                                                  http://www.dtae.org/adminservices/
                                                                                                                                                                                                                The Department encourages employees to develop and improve their skills and knowledge. A          acct-
                                                                                                                                                                                                                variety of resources for training and educational opportunities are available to employees who    procedures/VendorMaintenance.do
     ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                  need additional training to improve operations, efficiency, effectiveness, and to expand and      c
                                                                                                                     Documented policies and     Are cardholders trained before receiving a purchasing
PA   LIABILITIES, AND OTHER              PURCHASING CARDS                       Fraudulent activity                                                                                                             enrich the scope of programs for which the employees are responsible.                             http://www.dtae.org/adminservices/f
                                                                                                                     procedures                  card? If so, please briefly describe this training.
     LIABILITIES                                                                                                                                                                                                All employees, upon obtaining the appropriate approval, are eligible to participate in staff      orms/Purchasing.doc
                                                                                                                                                                                                                development activities. The policy shall be administered in accordance with the Department's      http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                Statement of Equal Opportunity                                                                    gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                  /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                                  http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                  acct-
                                                                                                                                                                                                                                                                                                                  procedures/VendorMaintenance.do
                                                                                                                                                                                                                GA ACCOUNTING PROCEDURES MANUAL
     ACCOUNTS PAYABLE, ACCRUED                                                                                                                   What policies and procedures are in place to ensure that                                                                                                         c
                                                                                                                     Documented policies and                                                                    SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   LIABILITIES, AND OTHER              PURCHASING CARDS                       Fraudulent activity                                              purchasing card transactions do not exceed transaction                                                                                                           http://www.dtae.org/adminservices/f
                                                                                                                     procedures                                                                                 In cases where tasks cannot be effectively separated, management can substitute increased
     LIABILITIES                                                                                                                                 limits or monthly credit limits?                                                                                                                                 orms/Purchasing.doc
                                                                                                                                                                                                                supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                                  http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                  gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                  /53901646procurementmanual.pdf


              DTAE Confidential                                                                                                                              8/4/2010                                                                                                                                                           Page 25
             Key Control Documentation                                                                                                                                                                                                                                                                                     Fiscal Year 2006/07
                                                                                                                                      Technical College __________________                                                                                                                                               Note: Initial and Date
                                                                                                                                                                                                                                                                                                                     the box to document step


#            Risk Area                                    Sub Area                                   Risk                    Control Name                                   Question                                                                  DTEA/SAO P&P                                                                   Link(s)
                                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                     acct-
                                                                                                                                                                                                                                                                                                                     procedures/VendorMaintenance.do
                                                                                       Incorrect persons being issued                                                                                           GA ACCOUNTING PROCEDURES MANUAL
     ACCOUNTS PAYABLE, ACCRUED                                                                                                                       In your opinion, are purchasing cards being used in                                                                                                             c
                                                                                       cards. Sales Tax charges to         Documented policies and                                                              SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   LIABILITIES, AND OTHER              PURCHASING CARDS                                                                                            accordance with established Technical College policies and                                                                                                      http://www.dtae.org/adminservices/f
                                                                                       state. Split purchases - types of   procedures                                                                           In cases where tasks cannot be effectively separated, management can substitute increased
     LIABILITIES                                                                                                                                     procedures?                                                                                                                                                     orms/Purchasing.doc
                                                                                       items purchased.                                                                                                         supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                                     http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                     gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                     /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                     acct-
                                                                                                                                                                                                                                                                                                                     procedures/VendorMaintenance.do
                                                                                   Fraud can occur in various forms                                  Does the purchasing agent have sole authority to obligate    Georgia Procurement Manual
     ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                       c
                                         PURCHASING: ACCOUNT RANGE: 200000-202999, such as ghost vendors,                  Documented policies and   funds for purchases? If not, have delegations of authority   All purchases for the Department and state technical institutes in excess of $25,000 and any
PA   LIABILITIES, AND OTHER                                                                                                                                                                                                                                                                                          http://www.dtae.org/adminservices/f
                                         210000, 214000-215999 and 220             kickbacks, purchase of personal         procedures                been specifically approved by the appropriate governing      change order or contract addendum which is either greater than $5,000 or would increase the
     LIABILITIES                                                                                                                                                                                                                                                                                                     orms/Purchasing.doc
                                                                                   items, etc.                                                       board?                                                       total purchase or contract to an amount in
                                                                                                                                                                                                                                                                                                                     http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                     gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                     /53901646procurementmanual.pdf
                                                                                                                                                                                                                  vendor who conducts business with the State of Georgia.
                                                                                                                                                                                                                  All vendors are required to complete a Federal W-9 form before conducting business with
                                                                                                                                                                                                                  DTAE Central Office and/or the Technical Colleges. Each Technical College and DTAE Central
                                                                                                                                                                                                                  Office is responsible for maintaining the completed W-9 forms for each vendor they conduct
                                                                                                                                                                                                                  business with. The W-9 form can be found at http://www.irs.gov/pub/irs-pdf/fw9.pdf.
                                                                                                                                                                                                                  Setting up vendors
                                                                                                                                                                                                                  In order for Administrative Services personnel to process payments in Accounts Payable, the
                                                                                                                                                                                                                  recipient of the payment must be established as a vendor (e.g., travel, rents, regular payments,
                                                                                                                                                                                                                  etc…) in the state vendor file. Users should first try thoroughly searching by TIN/FEI number
                                                                                                                                                                                                                  and alphabetically by vendor name to confirm that the vendor does not already exist in
                                                                                                                                                                                                                  Peoplesoft before any vendors are added. The Administrative Services personnel must have           http://www.dtae.org/adminservices/
                                                                                                                                                                                                                  attended the appropriate training and have security access to process vendor additions. The        acct-
                                                                                                                                                                                                                  Administrative Services personnel will add vendor information in Peoplesoft. A “New Vendor         procedures/VendorMaintenance.do
     ACCOUNTS PAYABLE, ACCRUED                                                                                                                       Are contract terms and conditions clearly documented to      Information Form” should be completed. (See Attached for form.) The vendor is added in an          c
                                         PURCHASING: ACCOUNT RANGE: 200000-202999,                                         Documented policies and
PA   LIABILITIES, AND OTHER                                                        Fraudulent activity                                               support effective vendor management? If so, please briefly   unapproved status. The Financial System Solutions (FSS) Vendor Maintenance Group with              http://www.dtae.org/adminservices/f
                                         210000, 214000-215999 and 220                                                     procedures
     LIABILITIES                                                                                                                                     describe this documentation process.                         Phoenix will approve all vendors. Users should check for an approved vendor status at the end      orms/Purchasing.doc
                                                                                                                                                                                                                  of or throughout the day by viewing the Identifying Information panel.                             http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                  Users at various Technical Colleges and DTAE Central Office can enter vouchers to a vendor         gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                  in an unapproved status but system checks and express checks can only be produced for              /53901646procurementmanual.pdf
                                                                                                                                                                                                                  vendors with an approved status. If users do enter vouchers before the vendor has been
                                                                                                                                                                                                                  approved then it is important to remember that the effective date on a vendor location must be
                                                                                                                                                                                                                  less than the accounting date on the voucher in order for a system check to be produced.
                                                                                                                                                                                                                  Recommend waiting until vendor is approved before entering any vouchers.
                                                                                                                                                                                                                  Steps to take when adding a vendor in Peoplesoft:
                                                                                                                                                                                                                  1. User must go to the Phoenix website www.phoenix.gagta.com
                                                                                                                                                                                                                  2. User must click on the Financials Button
                                                                                                                                                                                                                  3. User must next click on the AP Button
                                                                                                                                                                                                                  4. User must then click on the AP-001 (AP Business Processes) for adding a new vendor and
                                                                                                                                                                                                                  follow the step by step instructions for adding a new vendor.       (Special attention should be
                                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                     acct-
                                                                                                                                                                                                                                                                                                                     procedures/VendorMaintenance.do
                                                                                                                                                                                                                  GA ACCOUNTING PROCEDURES MANUAL
     ACCOUNTS PAYABLE, ACCRUED                                                                                                                       Can you describe how you are able to determine which                                                                                                            c
                                         PURCHASING: ACCOUNT RANGE: 200000-202999,                                         Documented policies and                                                                SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   LIABILITIES, AND OTHER                                                        Fraudulent activity                                               individuals are allowed to sign for goods and services on                                                                                                       http://www.dtae.org/adminservices/f
                                         210000, 214000-215999 and 220                                                     procedures                                                                             In cases where tasks cannot be effectively separated, management can substitute increased
     LIABILITIES                                                                                                                                     specific accounts?                                                                                                                                              orms/Purchasing.doc
                                                                                                                                                                                                                  supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                                     http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                     gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                     /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                     acct-
                                                                                                                                                                                                                                                                                                                     procedures/VendorMaintenance.do
                                                                                                                                                                                                                  GA ACCOUNTING PROCEDURES MANUAL
     ACCOUNTS PAYABLE, ACCRUED                                                                                                                       1. Can you describe the physical safeguards and security                                                                                                        c
                                         PURCHASING: ACCOUNT RANGE: 200000-202999,                                         Documented policies and                                                                SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   LIABILITIES, AND OTHER                                                        Fraudulent activity                                               over received goods? 2. Is there a designated centralized                                                                                                       http://www.dtae.org/adminservices/f
                                         210000, 214000-215999 and 220                                                     procedures                                                                             In cases where tasks cannot be effectively separated, management can substitute increased
     LIABILITIES                                                                                                                                     receiving area for all incoming goods?                                                                                                                          orms/Purchasing.doc
                                                                                                                                                                                                                  supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                                     http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                     gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                     /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                     acct-
                                                                                                                                                                                                                                                                                                                     procedures/VendorMaintenance.do
                                                                                                                                                                                                                  GA ACCOUNTING PROCEDURES MANUAL
     ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                       c
                                         PURCHASING: ACCOUNT RANGE: 200000-202999,                                         Documented policies and   Can you describe the policies and procedures for             SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   LIABILITIES, AND OTHER                                                        Fraudulent activity                                                                                                                                                                                                               http://www.dtae.org/adminservices/f
                                         210000, 214000-215999 and 220                                                     procedures                merchandise returns?                                         In cases where tasks cannot be effectively separated, management can substitute increased
     LIABILITIES                                                                                                                                                                                                                                                                                                     orms/Purchasing.doc
                                                                                                                                                                                                                  supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                                     http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                     gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                     /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                                     http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                     acct-
                                                                                                                                                                                                                                                                                                                     procedures/VendorMaintenance.do
                                                                                                                                                     What policies and procedures are in place to avoid the       GA ACCOUNTING PROCEDURES MANUAL
     ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                       c
                                         PURCHASING: ACCOUNT RANGE: 200000-202999,                                         Documented policies and   overpayment of sales tax? For example, what would            SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   LIABILITIES, AND OTHER                                                        Fraudulent activity                                                                                                                                                                                                               http://www.dtae.org/adminservices/f
                                         210000, 214000-215999 and 220                                                     procedures                prevent a vendor from erroneously charging the Technical     In cases where tasks cannot be effectively separated, management can substitute increased
     LIABILITIES                                                                                                                                                                                                                                                                                                     orms/Purchasing.doc
                                                                                                                                                     College sales tax on non-taxable transportation charges?     supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                                     http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                     gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                     /53901646procurementmanual.pdf




              DTAE Confidential                                                                                                                                 8/4/2010                                                                                                                                                           Page 26
             Key Control Documentation                                                                                                                                                                                                                                                                                             Fiscal Year 2006/07
                                                                                                                                         Technical College __________________                                                                                                                                                    Note: Initial and Date
                                                                                                                                                                                                                                                                                                                             the box to document step


#            Risk Area                                    Sub Area                                    Risk                     Control Name                                     Question                                                                      DTEA/SAO P&P                                                                   Link(s)
                                                                                                                                                                                                                        vendor who conducts business with the State of Georgia.
                                                                                                                                                                                                                        All vendors are required to complete a Federal W-9 form before conducting business with
                                                                                                                                                                                                                        DTAE Central Office and/or the Technical Colleges. Each Technical College and DTAE Central
                                                                                                                                                                                                                        Office is responsible for maintaining the completed W-9 forms for each vendor they conduct
                                                                                                                                                                                                                        business with. The W-9 form can be found at http://www.irs.gov/pub/irs-pdf/fw9.pdf.
                                                                                                                                                                                                                        Setting up vendors
                                                                                                                                                                                                                        In order for Administrative Services personnel to process payments in Accounts Payable, the
                                                                                                                                                                                                                        recipient of the payment must be established as a vendor (e.g., travel, rents, regular payments,
                                                                                                                                                                                                                        etc…) in the state vendor file. Users should first try thoroughly searching by TIN/FEI number
                                                                                                                                                                                                                        and alphabetically by vendor name to confirm that the vendor does not already exist in
                                                                                                                                                                                                                        Peoplesoft before any vendors are added. The Administrative Services personnel must have             http://www.dtae.org/adminservices/
                                                                                                                                                                                                                        attended the appropriate training and have security access to process vendor additions. The          acct-
                                                                                                                                                                                                                        Administrative Services personnel will add vendor information in Peoplesoft. A “New Vendor           procedures/VendorMaintenance.do
     ACCOUNTS PAYABLE, ACCRUED                                                                                                                          What policies and procedures are in place to ensure that        Information Form” should be completed. (See Attached for form.) The vendor is added in an            c
                                         PURCHASING: ACCOUNT RANGE: 200000-202999,                                          Documented policies and
PA   LIABILITIES, AND OTHER                                                        Fraudulent activity                                                  preferred vendors (and negotiated discounts) are used for       unapproved status. The Financial System Solutions (FSS) Vendor Maintenance Group with                http://www.dtae.org/adminservices/f
                                         210000, 214000-215999 and 220                                                      procedures
     LIABILITIES                                                                                                                                        routine purchase such as office supplies or furniture?          Phoenix will approve all vendors. Users should check for an approved vendor status at the end        orms/Purchasing.doc
                                                                                                                                                                                                                        of or throughout the day by viewing the Identifying Information panel.                               http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                        Users at various Technical Colleges and DTAE Central Office can enter vouchers to a vendor           gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                        in an unapproved status but system checks and express checks can only be produced for                /53901646procurementmanual.pdf
                                                                                                                                                                                                                        vendors with an approved status. If users do enter vouchers before the vendor has been
                                                                                                                                                                                                                        approved then it is important to remember that the effective date on a vendor location must be
                                                                                                                                                                                                                        less than the accounting date on the voucher in order for a system check to be produced.
                                                                                                                                                                                                                        Recommend waiting until vendor is approved before entering any vouchers.
                                                                                                                                                                                                                        Steps to take when adding a vendor in Peoplesoft:
                                                                                                                                                                                                                        1. User must go to the Phoenix website www.phoenix.gagta.com
                                                                                                                                                                                                                        2. User must click on the Financials Button
                                                                                                                                                                                                                        3. User must next click on the AP Button
                                                                                                                                                                                                                        4. User must then click on the AP-001 (AP Business Processes) for adding a new vendor and
                                                                                                                                                                                                                        follow the step by step instructions for adding a new vendor.       (Special attention should be
                                                                                                                                                                                                                                                                                                                             http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                             acct-
                                                                                                                                                                                                                                                                                                                             procedures/VendorMaintenance.do
                                                                                                                                                                                                                        GA ACCOUNTING PROCEDURES MANUAL
     ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                               c
                                         PURCHASING: ACCOUNT RANGE: 200000-202999,                                          Documented policies and     What policies and procedures are in place to ensure that        SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   LIABILITIES, AND OTHER                                                        Fraudulent activity                                                                                                                                                                                                                       http://www.dtae.org/adminservices/f
                                         210000, 214000-215999 and 220                                                      procedures                  purchases are validly approved by management?                   In cases where tasks cannot be effectively separated, management can substitute increased
     LIABILITIES                                                                                                                                                                                                                                                                                                             orms/Purchasing.doc
                                                                                                                                                                                                                        supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                                             http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                             gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                             /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                                             http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                             acct-
                                                                                                                                                        What policies and procedures are in place to ensure that                                                                                                             procedures/VendorMaintenance.do
                                                                                                                                                                                                                        GA ACCOUNTING PROCEDURES MANUAL
     ACCOUNTS PAYABLE, ACCRUED                                                                                                                          purchasing contracts are appropriately reviewed and signed                                                                                                           c
                                         PURCHASING: ACCOUNT RANGE: 200000-202999,                                          Documented policies and                                                                     SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   LIABILITIES, AND OTHER                                                        Fraudulent activity                                                  by authorized employees? Who has the authority to sign                                                                                                               http://www.dtae.org/adminservices/f
                                         210000, 214000-215999 and 220                                                      procedures                                                                                  In cases where tasks cannot be effectively separated, management can substitute increased
     LIABILITIES                                                                                                                                        purchasing contracts and what are their dollar amount                                                                                                                orms/Purchasing.doc
                                                                                                                                                                                                                        supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                        limitations?                                                                                                                                                         http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                             gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                             /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                                             http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                             acct-
                                                                                                                                                                                                                                                                                                                             procedures/VendorMaintenance.do
                                                                                                                                                        1.Are the purchasing policies in accordance with applicable     Georgia Procurement Manual
     ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                               c
                                         PURCHASING: ACCOUNT RANGE: 200000-202999, Non-compliance with applicable           Documented policies and     statutes, contract specifications, and collegial policies? 2.   All purchases for the Department and state technical institutes in excess of $25,000 and any
PA   LIABILITIES, AND OTHER                                                                                                                                                                                                                                                                                                  http://www.dtae.org/adminservices/f
                                         210000, 214000-215999 and 220             laws, regs, policies & procedures        procedures                  Are state wide contracts used when available and / or           change order or contract addendum which is either greater than $5,000 or would increase the
     LIABILITIES                                                                                                                                                                                                                                                                                                             orms/Purchasing.doc
                                                                                                                                                        applicable?                                                     total purchase or contract to an amount in
                                                                                                                                                                                                                                                                                                                             http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                             gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                             /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                                             http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                             acct-
                                                                                                                                                                                                                                                                                                                             procedures/VendorMaintenance.do
                                                                                                                                                                                                                        Georgia Procurement Manual
     ACCOUNTS PAYABLE, ACCRUED                                                     Policies and procedures do not                                                                                                                                                                                                            c
                                         PURCHASING: ACCOUNT RANGE: 200000-202999,                                          Documented policies and     In regard to leasing, do procedures insure compliance with      All purchases for the Department and state technical institutes in excess of $25,000 and any
PA   LIABILITIES, AND OTHER                                                        exist for all areas of the                                                                                                                                                                                                                http://www.dtae.org/adminservices/f
                                         210000, 214000-215999 and 220                                                      procedures                  statutory and collegial purchasing rules and regulations?       change order or contract addendum which is either greater than $5,000 or would increase the
     LIABILITIES                                                                   purchasing process.                                                                                                                                                                                                                       orms/Purchasing.doc
                                                                                                                                                                                                                        total purchase or contract to an amount in
                                                                                                                                                                                                                                                                                                                             http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                             gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                             /53901646procurementmanual.pdf

                                                                                                                                                                                                                                                                                                                             http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                             acct-
                                                                                                                                                        1. Do policies provide for the assignment of responsibility
                                                                                                                                                                                                                                                                                                                             procedures/VendorMaintenance.do
                                                                                   Purchases, including individual                                      for final purchasing decisions at the appropriate level? 2.     Georgia Procurement Manual
     ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                               c
                                         PURCHASING: ACCOUNT RANGE: 200000-202999, and standing purchase orders, do Documented policies and             Does the purchasing agent have sole authority to obligate       All purchases for the Department and state technical institutes in excess of $25,000 and any
PA   LIABILITIES, AND OTHER                                                                                                                                                                                                                                                                                                  http://www.dtae.org/adminservices/f
                                         210000, 214000-215999 and 220             not follow established approval  procedures                          funds for purchases? If not, have delegations of authority      change order or contract addendum which is either greater than $5,000 or would increase the
     LIABILITIES                                                                                                                                                                                                                                                                                                             orms/Purchasing.doc
                                                                                   processes.                                                           been specifically approved by the appropriate governing         total purchase or contract to an amount in
                                                                                                                                                                                                                                                                                                                             http://statepurchasing.doas.georgia.
                                                                                                                                                        board?
                                                                                                                                                                                                                                                                                                                             gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                             /53901646procurementmanual.pdf
                                                                                                                                                                                                                        50-16-18. Writing off small amounts due to state.
                                                                                        Improper valuation of allowance     Documented write-off        Is there documented policies governing valuation of              (a) It is the intent of this Code section to implement the provisions of Article III, Section VI,   http://www.dtae.org/adminservices/
PA
                                         ACCOUNTS RECEIVABLE: ACCOUNT RANGE:            for doubtful accounts and/or        policy and procedures (in   allowance for doubtful accounts and/or inappropriate            Paragraph VI of the Constitution of the State of Georgia which generally prohibit gratuities by      new_acct_procedures/due_diligenc
     ACCOUNTS RECEIVABLE                 121000-140999 and 160000-160999                inappropriate account write-offs    accordance with GAAP)       account write-offs?                                             devising                                                                                             e.doc
                                                                                        Breach of student confidentiality
                                                                                        laws                                                                                                                            The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
PA
                                                                                        Credit Card information not                                     Can the Technical College provide documentation assuring        Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
     ACCOUNTS RECEIVABLE                 REVENUE                                        properly safeguarded                Access controls             that Access controls occurs ?                                   student records.




              DTAE Confidential                                                                                                                                    8/4/2010                                                                                                                                                                Page 27
              Key Control Documentation                                                                                                                                                                                                                                                                                            Fiscal Year 2006/07
                                                                                                                                      Technical College __________________                                                                                                                                                       Note: Initial and Date
                                                                                                                                                                                                                                                                                                                             the box to document step


#             Risk Area                                  Sub Area                               Risk                      Control Name                                           Question                                  The Central Office and all Technical DTEA/SAO P&P accurate inventory records on the
                                                                                                                                                                                                                                                                 Colleges shall maintain                                                     Link(s)
                                                                                                                                                                                                                           statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                           expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                           software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                           the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                           all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                           The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                           property issued to any employee and ensures the return of such property when the
                                                                                  1. Lack of documentation to                                                                                                              employment relationship ends. State property includes but is not limited to keys, credit cards,
PA
                                                                                  support capitalization. 2. Loss of                                                                                                       telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                  system, building and/ or records.                                                                                                        issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                  3. Inventory is lost or stolen and                                                                                                       the equipment upon request or upon separation from employment will authorize the employer
                                                                                  surplus is not accounted for         Documented policies and                                                                             to withhold any monies due the employee until such property is returned or otherwise
                                                                                  effectively 4. Missing equipment     procedures for the               Can the Technical College provide documentation assuring           accounted for by the employee.
                                                                                  is not reported to inventory when    capitalization of asset          that adherence to documented policies and procedures for           The Central Office and all Technical Colleges shall have the option to maintain inventory         http://sao.georgia.gov/vgn/images/p
                                          CAPITAL ASSETS ACCOUNT RANGE: 170000-   found.             5. Improper       costs (i.e. freight, interest,   the capitalization of asset costs (i.e. freight, interest, etc.)   records for all property items costing less than $1,000. Such inventory shall be separately       ortal/cit_1210/13/27/48538431apm_
     CAPITAL ASSETS                       176999, 180000 and 183000               write-off occur.                     etc.)                            occurs?                                                            maintained. Office and all Technical Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                                           The Central                                                                                       rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                                           statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                           expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                           software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                           the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                           all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                           The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                           property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                           employment relationship ends. State property includes but is not limited to keys, credit cards,
PA
                                                                                                                                                                                                                           telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                           issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                           the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                           to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                           accounted for by the employee.
                                                                                  1. Misuse of asset. 2. Failure to Documented policies and                                                                                The Central Office and all Technical Colleges shall have the option to maintain inventory         http://sao.georgia.gov/vgn/images/p
                                          CAPITAL ASSETS ACCOUNT RANGE: 170000-   perform deferred maintenance on procedures on                         Does a written policy exist for the normal inspection and          records for all property items costing less than $1,000. Such inventory shall be separately       ortal/cit_1210/13/27/48538431apm_
     CAPITAL ASSETS                       176999, 180000 and 183000               facilities.                       appropriate use of assets           maintenance of equipment and / or capital assets?                  maintained. Office and all Technical Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                                           The Central                                                                                       rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                                           statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                           expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                           software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                           the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                           all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                           The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                           property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                           employment relationship ends. State property includes but is not limited to keys, credit cards,
PA
                                                                                                                                                                                                                           telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                           issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                           the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                           to withhold any monies due the employee until such property is returned or otherwise
                                                                                  1.Inventory is lost or stolen and                                                                                                        accounted for by the employee.
                                                                                  surplus is not accounted for                                                                                                             The Central Office and all Technical Colleges shall have the option to maintain inventory         http://sao.georgia.gov/vgn/images/p
                                          CAPITAL ASSETS ACCOUNT RANGE: 170000-   effectively 2. Construction                                           Can the Technical College provide documentation assuring           records for all property items costing less than $1,000. Such inventory shall be separately       ortal/cit_1210/13/27/48538431apm_
     CAPITAL ASSETS                       176999, 180000 and 183000               accidents                            Training                         that training occurs?                                              maintained. Office and all Technical Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                                           The Central                                                                                       rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                                           statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                           expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                           software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                           the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                           all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                           The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                           property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                           employment relationship ends. State property includes but is not limited to keys, credit cards,
PA
                                                                                                                                                                                                                           telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                           issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                           the equipment upon request or upon separation from employment will authorize the employer
                                                                                  Capital assets/controlled items      Analysis of other                                                                                   to withhold any monies due the employee until such property is returned or otherwise
                                                                                  are acquired by Technical            expenditure codes for                                                                               accounted for by the employee.
                                                                                  College departments and are not      amounts or vendors that          Can the Technical College provide documentation assuring           The Central Office and all Technical Colleges shall have the option to maintain inventory         http://sao.georgia.gov/vgn/images/p
                                          CAPITAL ASSETS ACCOUNT RANGE: 170000-   recorded in the Technical            could indicate a capital         that analysis of other expenditure codes for amounts or            records for all property items costing less than $1,000. Such inventory shall be separately       ortal/cit_1210/13/27/48538431apm_
     CAPITAL ASSETS                       176999, 180000 and 183000               College's inventory system           purchase                         vendors that could indicate a capital purchase occurs?             maintained. Office and all Technical Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                                           The Central                                                                                       rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                                           statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                           expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                           software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                           the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                           all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                           The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                           property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                           employment relationship ends. State property includes but is not limited to keys, credit cards,
PA
                                                                                                                                                                                                                           telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                           issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                           the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                           to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                           accounted for by the employee.
                                                                                                                                                                                                                           The Central Office and all Technical Colleges shall have the option to maintain inventory
                                          CAPITAL ASSETS ACCOUNT RANGE: 170000-                                        Certifications if applicable     Can the Technical College provide documentation assuring           records for all property items costing less than $1,000. Such inventory shall be separately
     CAPITAL ASSETS                       176999, 180000 and 183000               Construction accidents               and training                     that certifications if applicable and training occurs?             maintained.                                                                                       http://www.dtae.org/architect.html




               DTAE Confidential                                                                                                                                   8/4/2010                                                                                                                                                                Page 28
              Key Control Documentation                                                                                                                                                                                                                                                                                      Fiscal Year 2006/07
                                                                                                                                    Technical College __________________                                                                                                                                                   Note: Initial and Date
                                                                                                                                                                                                                                                                                                                       the box to document step


#             Risk Area                                  Sub Area                                Risk                   Control Name                                         Question                                The Central Office and all Technical DTEA/SAO P&P accurate inventory records on the
                                                                                                                                                                                                                                                           Colleges shall maintain                                                     Link(s)
                                                                                                                                                                                                                     statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                     expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                     software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                     the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                     all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                     The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                     property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                     employment relationship ends. State property includes but is not limited to keys, credit cards,
PA
                                                                                                                                                                                                                     telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                     issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                     the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                     Documented policies and                                                                         to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                     procedures for the               Can the Technical College provide documentation assuring       accounted for by the employee.
                                                                                                                     capitalization of asset          that documented policies and procedures for the                The Central Office and all Technical Colleges shall have the option to maintain inventory         http://sao.georgia.gov/vgn/images/p
                                          CAPITAL ASSETS ACCOUNT RANGE: 170000-                                      costs (i.e. freight, interest,   capitalization of asset costs (i.e. freight, interest, etc.)   records for all property items costing less than $1,000. Such inventory shall be separately       ortal/cit_1210/13/27/48538431apm_
     CAPITAL ASSETS                       176999, 180000 and 183000                 Improper valuation               etc.)                            occurs?                                                        maintained. Office and all Technical Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                                     The Central                                                                                       rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                                     statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                     expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                     software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                     the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                     all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                     The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                     property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                     employment relationship ends. State property includes but is not limited to keys, credit cards,
PA
                                                                                                                                                                                                                     telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                     issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                     the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                     to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                      Documented internal                                                                            accounted for by the employee.
                                                                                    Significant discrepancies         Policies & Procedures are Can the Technical College provide documentation assuring             The Central Office and all Technical Colleges shall have the option to maintain inventory         http://sao.georgia.gov/vgn/images/p
                                          CAPITAL ASSETS ACCOUNT RANGE: 170000-     between inventory records and     consistent with State     that documented internal Policies & Procedures are                   records for all property items costing less than $1,000. Such inventory shall be separately       ortal/cit_1210/13/27/48538431apm_
     CAPITAL ASSETS                       176999, 180000 and 183000                 State Property Accounting records Policies & Procedures     consistent with State Policies & Procedures occurs?                  maintained. Office and all Technical Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                                     The Central                                                                                       rev5[1].pdf - Capital Asset Guide
                                                                                                                                                                                                                     statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                     expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                     software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                     the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                     all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                     The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                     property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                     employment relationship ends. State property includes but is not limited to keys, credit cards,
PA
                                                                                                                                                                                                                     telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                     issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                     the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                     to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                     accounted for by the employee.
                                                                                                                                                                                                                     The Central Office and all Technical Colleges shall have the option to maintain inventory
                                                                                    1. Construction accidents 2.                                      Can the Technical College provide documentation assuring       records for all property items costing less than $1,000. Such inventory shall be separately
     CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS   Improper disposal of property    Insurance                        that adequate insurance coverage is in effect?                 maintained. Office and all Technical Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                                     The Central                                                                                       http://www.dtae.org/architect.html
                                                                                                                                                                                                                     statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                     expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                     software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                     the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                     all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                     The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                     property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                     employment relationship ends. State property includes but is not limited to keys, credit cards,
PA
                                                                                                                                                                                                                     telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                     issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                     the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                     to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                     accounted for by the employee.
                                                                                                                                                                                                                     The Central Office and all Technical Colleges shall have the option to maintain inventory
                                                                                                                                                      Can the Technical College provide documentation assuring       records for all property items costing less than $1,000. Such inventory shall be separately
     CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS   Construction accidents           Protective gear                  that protective gear usage occurs?                             maintained. Office and all Technical Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                                     The Central                                                                                       http://www.dtae.org/architect.html
                                                                                                                                                                                                                     statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                     expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                     software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                     the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                     all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                     The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                     property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                     employment relationship ends. State property includes but is not limited to keys, credit cards,
PA
                                                                                                                                                                                                                     telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                     issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                     the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                     to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                     accounted for by the employee.
                                                                                                                                                                                                                     The Central Office and all Technical Colleges shall have the option to maintain inventory
                                                                                    Failure to oversee in-house      Accurate project                 Can the Technical College provide documentation assuring       records for all property items costing less than $1,000. Such inventory shall be separately
     CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS   construction projects            accounting                       that accurate project accounting occurs?                       maintained.                                                                                       http://www.dtae.org/architect.html




               DTAE Confidential                                                                                                                                 8/4/2010                                                                                                                                                            Page 29
              Key Control Documentation                                                                                                                                                                                                                                                                                        Fiscal Year 2006/07
                                                                                                                                      Technical College __________________                                                                                                                                                   Note: Initial and Date
                                                                                                                                                                                                                                                                                                                         the box to document step


#             Risk Area                                  Sub Area                                 Risk                      Control Name                                      Question                               The Central Office and all Technical DTEA/SAO P&P accurate inventory records on the
                                                                                                                                                                                                                                                           Colleges shall maintain                                                       Link(s)
                                                                                                                                                                                                                     statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                     expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                     software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                     the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                     all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                     The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                     property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                     employment relationship ends. State property includes but is not limited to keys, credit cards,
PA
                                                                                                                                                                                                                     telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                     issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                     the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                     to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                     accounted for by the employee.
                                                                                                                                                      Can the Technical College provide documentation assuring       The Central Office and all Technical Colleges shall have the option to maintain inventory
                                                                                    Failure to provide services at a     Repair and maintenance       that evaluation of cost controls, bids and quotes, and         records for all property items costing less than $1,000. Such inventory shall be separately
     CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS   competitive cost                     of assets is on a schedule   assignments of contracts occurs?                               maintained. Office and all Technical Colleges shall maintain accurate inventory records on the
                                                                                                                                                                                                                     The Central                                                                                         http://www.dtae.org/architect.html
                                                                                                                                                                                                                     statewide computer system for all property items costing $1,000 or more and having a life
                                                                                                                                                                                                                     expectancy of at least three years, with the exception of computer software. Computer
                                                                                                                                                                                                                     software shall be inventoried by the Central Office and Technical Colleges in accordance with
                                                                                                                                                                                                                     the state guidelines issued by the State Accounting Office. In addition, the Central Office and
                                                                                                                                                                                                                     all Technical Colleges shall maintain appropriate licensing records for all computer software.
                                                                                                                                                                                                                     The Central Office and each Technical College shall develop a system that records all state
                                                                                                                                                                                                                     property issued to any employee and ensures the return of such property when the
                                                                                                                                                                                                                     employment relationship ends. State property includes but is not limited to keys, credit cards,
PA
                                                                                                                                                                                                                     telephone cards, uniforms, computers and other electronic equipment. When such property is
                                                                                                                                                                                                                     issued, the employee shall acknowledge that he or she has been advised that failure to return
                                                                                                                                                                                                                     the equipment upon request or upon separation from employment will authorize the employer
                                                                                                                                                                                                                     to withhold any monies due the employee until such property is returned or otherwise
                                                                                                                                                                                                                     accounted for by the employee.
                                                                                                                                                                                                                     The Central Office and all Technical Colleges shall have the option to maintain inventory
                                                                                                                                                      Are there formal recording procedures for gifts of fixed       records for all property items costing less than $1,000. Such inventory shall be separately
     CAPITAL ASSETS                       LAND, BUILDINGS, AND OTHER IMPROVEMENTS   Maximo / BLIPP+D173                  Safeguarding of Assets       assets?                                                        maintained.                                                                                         http://www.dtae.org/architect.html
                                                                                    1.Failure to properly calculate or
                                                                                    account for sales tax. 2. Failure
                                                                                    to reconcile data from multiple IT
                                                                                                                                                                                                               Georgia sales and use tax shall be collected and reported as required by the Georgia Sales
                                                                                    system. 3. Management
                                                                                                                                                                                                               and Use Tax Laws and Regulations.
                                                                                    Override. 4. Poor Customer
                                                                                                                                                                                                               The Technical Colleges shall charge and collect sales and use tax where appropriate.
                                                                                    Service.. 5. Unable to furnish      Documented policies and       Can the Technical College provide documentation assuring
PA   CASH HANDLING & MANAGEMENT           BOOKSTORE                                                                                                                                                            The Technical Colleges shall report taxes in accordance with accounting procedures
                                                                                    students with correct financial aid procedures                    that documented policies and procedure adherence occurs?
                                                                                                                                                                                                               established by the Department of Audits and Accounts and the State Accounting Office.
                                                                                    balances. 6. Unauthorized,
                                                                                                                                                                                                               Technical Colleges shall direct specific questions to the Georgia Department of Revenue or a
                                                                                    untimely or inaccurate
                                                                                                                                                                                                               Regional Sales Tax Office."
                                                                                    departmental charge backs. 7.
                                                                                    Unplanned and / or uncontrolled
                                                                                    book buyback process

                                                                                                                                                      Can the Technical College provide documentation assuring       GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                         Limit individuals who can
                                                                                                                                                      that there only limited individuals / positions who can add    SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   CASH HANDLING & MANAGEMENT           BOOKSTORE                                 Ghost vendors                        add vendors to master
                                                                                                                                                      vendors to master vendor file? Who are these individuals       In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                         vendor file
                                                                                                                                                      and what are their positions?                                  supervision as an alternative control activity that can help prevent or reduce these risks.


                                                                                                                                                                                                                     TOPIC: OUTSTANDING CHECKS
                                                                                                                                                                                                                     4- 6-2
                                                                                                                                                                                                                     This guidance is provided for all State organizations in regards to how outstanding checks
                                                                                                                                                                                                                     should
                                                                                                                                                                                                                     be accounted for. Although this guidance was written with the “Disposition of Unclaimed
                                                                                                                                                                                                                     Property” Act in mind, it is not guidance for complying with Act itself. The forms and
                                                                                                                                                                                                                     instructions for reporting and remitting unclaimed property should be obtain directly from the      http://www.dtae.org/adminservices/
                                                                                                                         Establish access and         Can the Technical College provide documentation assuring
                                                                                    Improper use of cash and/or                                                                                                      Department of Revenue.                                                                              acct-
PA   CASH HANDLING & MANAGEMENT           CASH                                                                           security controls for cash   that establish access and security controls for cash and
                                                                                    blank/voided checks                                                                                                              An outstanding check is any check that has not cleared the bank and that has not been               procedures/ManualJournalVoucher
                                                                                                                         and cash equivalents         cash equivalents occurs ?
                                                                                                                                                                                                                     cancelled                                                                                           PreparationandApproval.doc
                                                                                                                                                                                                                     or voided. Outstanding checks may be one of two types: 1) uncashed or 2) unclaimed. An
                                                                                                                                                                                                                     uncashed check is one that has been mailed or delivered to the payee but which remains
                                                                                                                                                                                                                     outstanding. Uncashed checks are those which are no longer in the possession of the issuing
                                                                                                                                                                                                                     organization. An unclaimed check is one which is pending delivery to the payee; this includes
                                                                                                                                                                                                                     checks that have been mailed out but then returned to the issuing organization. Unclaimed
                                                                                                                                                                                                                     checks are those which are in the possession of the issuing organization.

                                                                                                                                                                                                                     Each Technical College may adopt a local policy concerning personal checks and how to
                                                                                                                                                                                                                     handle bad checks, as long as the local policy is not substantially inconsistent with the
                                                                                                                                                                                                                     following personal check procedures. If no local policy has been adopted, then the "Local
                                                                                                                                                                                                                     Personal Check Policy" set forth in the accompanying procedures shall control.
                                                                                                                                                                                                                     Personal checks shall be accepted with proper identification by the college for fees, tuition,      http://www.dtae.org/adminservices/
                                                                                                                                                                                                                     services, books or class supplies. When a bank refuses to honor such a personal check, the          acct-
                                                                                                                                                                                                                     college shall charge a service fee to the person who presented the check. This service fee may      procedures/BankAccountReconcilia
                                                                                                                                                                                                                     not exceed $25 or 5% of the face value of the check, whichever is greater, plus the amount of       tion.doc
PA
                                                                                                                                                                                                                     any fee charged to the college by the bank.                                                         http://www.dtae.org/adminservices/
                                                                                                                                                                                                                     Students shall be notified by mail of a dishonored check and given ten (10) days to satisfy this    acct-procedures/PettyCash.doc
                                                                                                                                                                                                                     debt. If payment to the college in the form of cash, postal money order, or cashier's check is      http://www.dtae.org/adminservices/
                                                                                                                                                                                                                     not made within ten (10) days, the college shall place an "administrative hold" on the student's    new_acct_procedures/Safeguarding
                                                                                                                                                                                                                     accounts and records. Until the Vice President of Administration clears the "administrative         _Cash_Handling_Incoming_Funds.
                                                                                    Controls over wire transfers are     Supervisory review of        Do you ever allow staff to cash personal checks from cash      hold", the student shall not be issued quarterly grade reports, transcripts, or any other student   doc
     CASH HANDLING & MANAGEMENT           CASH AND / OR CASH EQUIVALENTS            not adequate                         transfer activity            received in your unit?                                         records, or allowed to register, graduate or receive college services. If the dishonored check      http://www.
                                                                                                                                                                                                                     GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                                                                                     SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA                                                                                                                                                    Can the Technical College provide documentation assuring
                                                                                                                                                                                                                     In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                    Failure to collect balances due at   Documented policies and      that failure to collect balances due at time of service does
                                                                                                                                                                                                                     supervision as an alternative control activity that can help prevent or reduce these risks.
     CASH HANDLING & MANAGEMENT           CASH AND / OR CASH EQUIVALENTS            time of service                      procedures                   not occur?




               DTAE Confidential                                                                                                                                 8/4/2010                                                                                                                                                              Page 30
               Key Control Documentation                                                                                                                                                                                                                                                                         Fiscal Year 2006/07
                                                                                                                            Technical College __________________                                                                                                                                               Note: Initial and Date
                                                                                                                                                                                                                                                                                                           the box to document step


#              Risk Area                                     Sub Area                     Risk                     Control Name                                    Question                                                                    DTEA/SAO P&P                                                                Link(s)
                                                                                                                                                                                                           General                                                                                         http://www.dtae.org/adminservices/
                                                                                                                                                                                                           All funds for student clubs and/or organizations are to be maintained in Trust Funds. These     new_acct_procedures/student_activ
                                                                                                                                                                                                           funds belong to the student club and/or organization and the student club and/or organization   ity_fund.doc
PA
                                                                                                                                           Can the Technical College provide documentation assuring        must approve any receipts or expenditures.                                                      http://www.dtae.org/adminservices/
                                                                            Improper management of Club         Documented policies and    that improper management of Student Activity Accounts           Establishment                                                                                   new_acct_procedures/student_club
     CASH HANDLING & MANAGEMENT            CASH AND / OR CASH EQUIVALENTS   Accounts                            procedures                 does not occur?                                                 I                                                                                               s_and_organizations.doc
                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                           acct-
                                                                                                                                                                                                                                                                                                           procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                           tion.doc
                                                                                                                                                                                                           GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
                                                                                                                                                                                                           SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA                                                                                                                                                                                                                                                                                                         acct-procedures/PettyCash.doc
                                                                                                                                                                                                           In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
                                                                                                                                                                                                           supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                           new_acct_procedures/Safeguarding
                                                                                                                                                                                                                                                                                                           _Cash_Handling_Incoming_Funds.
                                                                            Lack of or inadequate security of   Documented policies and                                                                                                                                                                    doc
     CASH HANDLING & MANAGEMENT            CASH AND / OR CASH EQUIVALENTS   facility and safety of personnel    procedures                 Are cash register procedures in writing?                                                                                                                        http://www.
                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                           acct-
                                                                                                                                                                                                                                                                                                           procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                           tion.doc
                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
PA                                                                                                                                                                                                         Disbursing Petty Cash Funds                                                                     acct-procedures/PettyCash.doc
                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
                                                                                                                                                                                                           Each disbursement made from the petty cash fund shall be approved by the VPA of the college     new_acct_procedures/Safeguarding
                                                                                                                                                                                                           or his/her designee. A petty cash voucher must be completed for each payment. Payment is        _Cash_Handling_Incoming_Funds.
                                                                            Cash is not adequately                                                                                                         made in either of the following manners:                                                        doc
     CASH HANDLING & MANAGEMENT            Petty Cash Disbursements         safeguarded                         DTAE Petty Cash Policy     Is Petty Cash controlled by an imprest system?                  1. I                                                                                            http://www.
                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                           acct-
                                                                                                                                                                                                                                                                                                           procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                           tion.doc
                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
PA                                                                                                                                                                                                         Disbursing Petty Cash Funds                                                                     acct-procedures/PettyCash.doc
                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
                                                                                                                                                                                                           Each disbursement made from the petty cash fund shall be approved by the VPA of the college     new_acct_procedures/Safeguarding
                                                                                                                                                                                                           or his/her designee. A petty cash voucher must be completed for each payment. Payment is        _Cash_Handling_Incoming_Funds.
                                                                            Cash is not adequately              Monitoring by                                                                              made in either of the following manners:                                                        doc
     CASH HANDLING & MANAGEMENT            Petty Cash Disbursements         safeguarded                         management                 Is the petty cash fund the responsibility of only one person?   1. I                                                                                            http://www.
                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                           acct-
                                                                                                                                                                                                                                                                                                           procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                           tion.doc
                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
PA                                                                                                                                                                                                         Disbursing Petty Cash Funds                                                                     acct-procedures/PettyCash.doc
                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
                                                                                                                                                                                                           Each disbursement made from the petty cash fund shall be approved by the VPA of the college     new_acct_procedures/Safeguarding
                                                                                                                Record receipts in                                                                         or his/her designee. A petty cash voucher must be completed for each payment. Payment is        _Cash_Handling_Incoming_Funds.
                                                                            Cash is not deposited in a timely   appropriate ledger         Are IOU's, unauthorized advances, and personal checks           made in either of the following manners:                                                        doc
     CASH HANDLING & MANAGEMENT            Petty Cash Disbursements         manner                              accounts daily             prohibited?                                                     1. I                                                                                            http://www.
                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                           acct-
                                                                                                                                                                                                                                                                                                           procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                           tion.doc
                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
PA                                                                                                                                                                                                         Disbursing Petty Cash Funds                                                                     acct-procedures/PettyCash.doc
                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
                                                                                                                                                                                                           Each disbursement made from the petty cash fund shall be approved by the VPA of the college     new_acct_procedures/Safeguarding
                                                                                                                                                                                                           or his/her designee. A petty cash voucher must be completed for each payment. Payment is        _Cash_Handling_Incoming_Funds.
                                                                            Cash is not deposited in a timely   Documented policies and    Are petty cash funds restricted to expenditures not             made in either of the following manners:                                                        doc
     CASH HANDLING & MANAGEMENT            Petty Cash Disbursements         manner                              procedures                 exceeding a fixed amount?                                       1. I                                                                                            http://www.
                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                           acct-
                                                                                                                                                                                                                                                                                                           procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                           tion.doc
                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
PA                                                                                                                                                                                                         Disbursing Petty Cash Funds                                                                     acct-procedures/PettyCash.doc
                                                                                                                                                                                                                                                                                                           http://www.dtae.org/adminservices/
                                                                                                                                                                                                            Each disbursement made from the petty cash fund shall be approved by the VPA of the college    new_acct_procedures/Safeguarding
                                                                                                                                                                                                            or his/her designee. A petty cash voucher must be completed for each payment. Payment is       _Cash_Handling_Incoming_Funds.
                                                                            Cash is not deposited in a timely                                                                                               made in either of the following manners:                                                       doc
     CASH HANDLING & MANAGEMENT            Petty Cash Disbursements         manner                              Reconciliations           How are reimbursements to petty cash handled?                     1. I                                                                                           http://www.
                                                                                                                                                                                                            • Employee Travel Expense Statement (Required)
                                                                                                                Separate cash drawers                                                                       Employees requesting reimbursement for travel expenses are required to submit their claim to http://www.dtae.org/adminservices/
PA
                                                                            Cash receipts are misplaced, lost   for each cashier/use of a                                                                   the Administrative Services office on the Employee Travel Expense Statement. The form        new_acct_procedures/DTAE_Empl
     CASH HANDLING & MANAGEMENT            Travel Disbursements             or mishandled                       safe                      Are all travelers familiar with the college's travel regulations? should be complete and approved                                                              oyee_Travel_Regulations.doc
                                                                                                                                                                                                                                                                                                         http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                         acct-
                                                                                                                                                                                                                                                                                                         procedures/BankAccountReconcilia
                                                                                                                                                                                                                                                                                                         tion.doc
                                                                                                                                                                                                            The Georgia Department of Technical and Adult Education Central Office and all of the        http://www.dtae.org/adminservices/
PA                                                                                                                                                                                                          Technical Colleges shall follow the Statewide Travel Regulations issued by the Georgia       acct-procedures/PettyCash.doc
                                                                                                                                                                                                            Department of Audits and Accounts and the Office of Planning and Budget. The regulations     http://www.dtae.org/adminservices/
                                                                                                                                                                                                            are updated annually and posted on the Georgia Department of Audit and Account’s website at new_acct_procedures/Safeguarding
                                                                                                                                                                                                            http://www2.state.ga.us/Departments/AUDIT/m&lg/travlreg.htm which also includes frequently   _Cash_Handling_Incoming_Funds.
                                                                            Cash receipts are misplaced, lost   Pre-numbered or machine Is the authority for approval of travel requests established at asked questions and other information not addressed in this procedure. All travel must be        doc
     CASH HANDLING & MANAGEMENT            Travel Disbursements             or mishandled                       generated cash receipts   all organizational levels?                                        approved prior to traveling.                                                                 http://www.
                                                                            1.Failure to provide accurate and
                                                                                                                                           Can the Technical College provide proof that failure to
                                                                            timely information to students.
                                                                                                                                           provide accurate and timely information to students, the
PA   FINANCIAL AID                         FINANCIAL AID                    2.Improper student loans.           Adequate supervision                                                                       The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
                                                                                                                                           issuance of improper student loans, and the ineffective
                                                                            3.Ineffective monitoring of non-                                                                                               Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
                                                                                                                                           monitoring of non-collegial aid does not occur?
                                                                            collegial aid.                                                                                                                 student records.



                DTAE Confidential                                                                                                                     8/4/2010                                                                                                                                                           Page 31
               Key Control Documentation                                                                                                                                                                                                                                                                        Fiscal Year 2006/07
                                                                                                                       Technical College __________________                                                                                                                                                   Note: Initial and Date
                                                                                                                                                                                                                                                                                                          the box to document step


#              Risk Area                                   Sub Area                    Risk                 Control Name                                        Question                                                                   DTEA/SAO P&P                                                                   Link(s)
                                                                                                                                         Does the Technical College have policies and procedures in    The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
                                                                      Failure to maximize available      Monitoring availability of
PA   FINANCIAL AID                         FINANCIAL AID                                                                                 place so that only the necessary and available funds are      Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
                                                                      funds                              funds
                                                                                                                                         drawn down?                                                   student records.
                                                                                                                                         Can the Technical College provide assurance that access to
                                                                                                         Limit access to student         the student financial aid information system is limited to    The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
PA   FINANCIAL AID                         FINANCIAL AID              Identity Theft
                                                                                                         information system              only those individuals whose job description requires         Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
                                                                                                                                         access?                                                       student records.
                                                                                                         Ensure records retention
                                                                                                                                         Can the Technical College provide documentation assuring
                                                                      Insufficient documentation in      policy satisfies all federal,                                                                 The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
PA   FINANCIAL AID                         FINANCIAL AID                                                                                 that Ensure records retention policy satisfies all federal,
                                                                      student files                      state, and college                                                                            Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
                                                                                                                                         state, and college requirements occurs ?
                                                                                                         requirements                                                                                  student records.



                                                                                                                                                                                                       Schedule “1A” of this section provides a listing of funds which are included in the State of
                                                                                                                                                                                                       Georgia Comprehensive Annual Financial Report (CAFR) and the organizations which have
                                                                                                                                                                                                       transactions and balances included within these funds. The accounting records of these
                                                                                                                                                                                                       organizations must be maintained in such a manner as to allow for the preparation of GAAP
                                                                                                         Maintain accounting
                                                                                                                                                                                                       financial statements. GAAP financial statements will be required in order to ensure that all
                                                                      Inaccurate or untimely financial   policies and procedures         Does the Technical College maintain accounting policies
                                                                                                                                                                                                       transactions and balances are properly recorded in the appropriate CAFR GAAP fund. GAAP
PA   GENERAL                               FINANCIAL ACTIVITY         reports (IRS, Federal, State,      that are consistent with        and procedures that are consistent with GAAP and
                                                                                                                                                                                                       financial reporting encompasses both the government-wide financial statements and the fund
                                                                      GASB, etc)                         GAAP and regulatory             regulatory reporting requirements?
                                                                                                                                                                                                       financial statements. The procedures in Section Three of this manual describe the differences
                                                                                                         reporting requirements
                                                                                                                                                                                                       in
                                                                                                                                                                                                       accounting for items on the budgetary basis and in accordance with GAAP. For organizations
                                                                                                                                                                                                       that do not prepare GAAP financial statements, there is a listing of information which should be
                                                                                                                                                                                                       provided to the auditors in order to make the adjustments/conversions to GAAP reporting.




                                                                                                                                                                                                       Schedule “1A” of this section provides a listing of funds which are included in the State of
                                                                                                                                                                                                       Georgia Comprehensive Annual Financial Report (CAFR) and the organizations which have
                                                                                                                                                                                                       transactions and balances included within these funds. The accounting records of these
                                                                                                                                                                                                       organizations must be maintained in such a manner as to allow for the preparation of GAAP
                                                                                                         Maintain accounting
                                                                                                                                                                                                       financial statements. GAAP financial statements will be required in order to ensure that all
                                                                      Inaccurate or untimely financial   policies and procedures
                                                                                                                                         Can you describe the various account reconciliations which    transactions and balances are properly recorded in the appropriate CAFR GAAP fund. GAAP
PA   GENERAL                               FINANCIAL ACTIVITY         reports (IRS, Federal, State,      that are consistent with
                                                                                                                                         are prepared?                                                 financial reporting encompasses both the government-wide financial statements and the fund
                                                                      GASB, etc)                         GAAP and regulatory
                                                                                                                                                                                                       financial statements. The procedures in Section Three of this manual describe the differences
                                                                                                         reporting requirements
                                                                                                                                                                                                       in
                                                                                                                                                                                                       accounting for items on the budgetary basis and in accordance with GAAP. For organizations
                                                                                                                                                                                                       that do not prepare GAAP financial statements, there is a listing of information which should be
                                                                                                                                                                                                       provided to the auditors in order to make the adjustments/conversions to GAAP reporting.




                                                                                                                                                                                                       Schedule “1A” of this section provides a listing of funds which are included in the State of
                                                                                                                                                                                                       Georgia Comprehensive Annual Financial Report (CAFR) and the organizations which have
                                                                                                                                                                                                       transactions and balances included within these funds. The accounting records of these
                                                                                                                                                                                                       organizations must be maintained in such a manner as to allow for the preparation of GAAP
                                                                                                         Maintain accounting
                                                                                                                                                                                                       financial statements. GAAP financial statements will be required in order to ensure that all
                                                                      Inaccurate or untimely financial   policies and procedures
                                                                                                                                         To the best of your knowledge, has anyone on your staff       transactions and balances are properly recorded in the appropriate CAFR GAAP fund. GAAP
PA   GENERAL                               FINANCIAL ACTIVITY         reports (IRS, Federal, State,      that are consistent with
                                                                                                                                         ever been accused of theft or embezzlement?                   financial reporting encompasses both the government-wide financial statements and the fund
                                                                      GASB, etc)                         GAAP and regulatory
                                                                                                                                                                                                       financial statements. The procedures in Section Three of this manual describe the differences
                                                                                                         reporting requirements
                                                                                                                                                                                                       in
                                                                                                                                                                                                       accounting for items on the budgetary basis and in accordance with GAAP. For organizations
                                                                                                                                                                                                       that do not prepare GAAP financial statements, there is a listing of information which should be
                                                                                                                                                                                                       provided to the auditors in order to make the adjustments/conversions to GAAP reporting.




                                                                                                                                                                                                       Schedule “1A” of this section provides a listing of funds which are included in the State of
                                                                                                                                                                                                       Georgia Comprehensive Annual Financial Report (CAFR) and the organizations which have
                                                                                                                                                                                                       transactions and balances included within these funds. The accounting records of these
                                                                                                                                                                                                       organizations must be maintained in such a manner as to allow for the preparation of GAAP
                                                                                                         Maintain accounting
                                                                                                                                                                                                       financial statements. GAAP financial statements will be required in order to ensure that all
                                                                      Inaccurate or untimely financial   policies and procedures         What policies and procedures are in place to ensure that
                                                                                                                                                                                                       transactions and balances are properly recorded in the appropriate CAFR GAAP fund. GAAP
PA   GENERAL                               FINANCIAL ACTIVITY         reports (IRS, Federal, State,      that are consistent with        restricted gifts are properly classified as temporarily
                                                                                                                                                                                                       financial reporting encompasses both the government-wide financial statements and the fund
                                                                      GASB, etc)                         GAAP and regulatory             restricted or permanently restricted?
                                                                                                                                                                                                       financial statements. The procedures in Section Three of this manual describe the differences
                                                                                                         reporting requirements
                                                                                                                                                                                                       in
                                                                                                                                                                                                       accounting for items on the budgetary basis and in accordance with GAAP. For organizations
                                                                                                                                                                                                       that do not prepare GAAP financial statements, there is a listing of information which should be
                                                                                                                                                                                                       provided to the auditors in order to make the adjustments/conversions to GAAP reporting.




                DTAE Confidential                                                                                                                   8/4/2010                                                                                                                                                            Page 32
               Key Control Documentation                                                                                                                                                                                                                                                                  Fiscal Year 2006/07
                                                                                                                      Technical College __________________                                                                                                                                              Note: Initial and Date
                                                                                                                                                                                                                                                                                                    the box to document step


#              Risk Area                                   Sub Area                  Risk                   Control Name                                   Question                                                                  DTEA/SAO P&P                                                                   Link(s)


                                                                                                                                                                                                 Schedule “1A” of this section provides a listing of funds which are included in the State of
                                                                                                                                                                                                 Georgia Comprehensive Annual Financial Report (CAFR) and the organizations which have
                                                                                                                                                                                                 transactions and balances included within these funds. The accounting records of these
                                                                                                                                                                                                 organizations must be maintained in such a manner as to allow for the preparation of GAAP
                                                                                                         Maintain accounting
                                                                                                                                                                                                 financial statements. GAAP financial statements will be required in order to ensure that all
                                                                      Inaccurate or untimely financial   policies and procedures    What specific policies and procedures are in place to help
                                                                                                                                                                                                 transactions and balances are properly recorded in the appropriate CAFR GAAP fund. GAAP
PA   GENERAL                               FINANCIAL ACTIVITY         reports (IRS, Federal, State,      that are consistent with   ensure compliance with Generally Accepted Accounting
                                                                                                                                                                                                 financial reporting encompasses both the government-wide financial statements and the fund
                                                                      GASB, etc)                         GAAP and regulatory        Principles?
                                                                                                                                                                                                 financial statements. The procedures in Section Three of this manual describe the differences
                                                                                                         reporting requirements
                                                                                                                                                                                                 in
                                                                                                                                                                                                 accounting for items on the budgetary basis and in accordance with GAAP. For organizations
                                                                                                                                                                                                 that do not prepare GAAP financial statements, there is a listing of information which should be
                                                                                                                                                                                                 provided to the auditors in order to make the adjustments/conversions to GAAP reporting.




                                                                                                                                                                                                 Schedule “1A” of this section provides a listing of funds which are included in the State of
                                                                                                                                                                                                 Georgia Comprehensive Annual Financial Report (CAFR) and the organizations which have
                                                                                                                                                                                                 transactions and balances included within these funds. The accounting records of these
                                                                                                                                                                                                 organizations must be maintained in such a manner as to allow for the preparation of GAAP
                                                                                                         Mechanism (e-mails, staff                                                               financial statements. GAAP financial statements will be required in order to ensure that all
                                                                                                                                     Can the Technical College provide documentation assuring                                                                                                     http://www.dtae.org/adminservices/
                                                                                                         meetings, etc) to provide                                                               transactions and balances are properly recorded in the appropriate CAFR GAAP fund. GAAP
PA   GENERAL                               FINANCIAL ACTIVITY         Inadequate communication                                       that Mechanism (e-mails, staff meetings, etc) to provide                                                                                                     new_acct_procedures/adjustment_v
                                                                                                         accurate information to all                                                             financial reporting encompasses both the government-wide financial statements and the fund
                                                                                                                                     accurate information to all employees occurs?                                                                                                                ouchers.doc
                                                                                                         employees                                                                               financial statements. The procedures in Section Three of this manual describe the differences
                                                                                                                                                                                                 in
                                                                                                                                                                                                 accounting for items on the budgetary basis and in accordance with GAAP. For organizations
                                                                                                                                                                                                 that do not prepare GAAP financial statements, there is a listing of information which should be
                                                                                                                                                                                                 provided to the auditors in order to make the adjustments/conversions to GAAP reporting.




                                                                                                                                                                                                 Schedule “1A” of this section provides a listing of funds which are included in the State of
                                                                                                                                                                                                 Georgia Comprehensive Annual Financial Report (CAFR) and the organizations which have
                                                                                                                                                                                                 transactions and balances included within these funds. The accounting records of these
                                                                                                                                                                                                 organizations must be maintained in such a manner as to allow for the preparation of GAAP
                                                                                                                                    Has the Technical College completed any analysis of          financial statements. GAAP financial statements will be required in order to ensure that all
                                                                                                         Analysis of energy use
                                                                                                                                    energy use and consumption monitoring? If so, please         transactions and balances are properly recorded in the appropriate CAFR GAAP fund. GAAP
PA   GENERAL                               FINANCIAL ACTIVITY         Rising utility costs               and consumption
                                                                                                                                    provide documentation. If not, how would the Technical       financial reporting encompasses both the government-wide financial statements and the fund
                                                                                                         monitoring
                                                                                                                                    College compensate for rising utility costs?                 financial statements. The procedures in Section Three of this manual describe the differences
                                                                                                                                                                                                 in
                                                                                                                                                                                                 accounting for items on the budgetary basis and in accordance with GAAP. For organizations
                                                                                                                                                                                                 that do not prepare GAAP financial statements, there is a listing of information which should be
                                                                                                                                                                                                 provided to the auditors in order to make the adjustments/conversions to GAAP reporting.



                                                                                                                                                                                                 The Department encourages employees to develop and improve their skills and knowledge. A
                                                                                                                                                                                                 variety of resources for training and educational opportunities are available to employees who
                                                                      1. Credits for returned books are
                                                                                                                                                                                                 need additional training to improve operations, efficiency, effectiveness, and to expand and
                                                                      not properly accounted for and/or Training and awareness      Can the Technical College provide documentation assuring
PA   GENERAL                               GENERAL                                                                                                                                               enrich the scope of programs for which the employees are responsible.
                                                                      utilized. 2. Failure to properly    program                   that Training and awareness program occurs?
                                                                                                                                                                                                 All employees, upon obtaining the appropriate approval, are eligible to participate in staff
                                                                      calculate or account for sales tax.
                                                                                                                                                                                                 development activities. The policy shall be administered in accordance with the Department's
                                                                                                                                                                                                 Statement of Equal Opportunity.
                                                                                                                                                                                                 GA ACCOUNTING PROCEDURES MANUAL
                                                                      Accountability over recorded                                  Are employee-vendor relationships and outside business
                                                                                                         Documented Policies and                                                                 SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               GENERAL                    transactions may not be                                       interests of departmental employees identified (for
                                                                                                         Procedures                                                                              In cases where tasks cannot be effectively separated, management can substitute increased
                                                                      maintained                                                    consideration of potential conflict of interest issues)?
                                                                                                                                                                                                 supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                                                                                 GA ACCOUNTING PROCEDURES MANUAL
                                                                      Accountability over recorded                                                                                                                                                                                                  http://www.dtae.org/adminservices/
                                                                                                         Documented Policies and    Does the organization have a statement of mission and        SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               GENERAL                    transactions may not be                                                                                                                                                                                                       new_acct_procedures/risk_manage
                                                                                                         Procedures                 objectives?                                                  In cases where tasks cannot be effectively separated, management can substitute increased
                                                                      maintained                                                                                                                                                                                                                    ment.doc
                                                                                                                                                                                                 supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                                                                                 GA ACCOUNTING PROCEDURES MANUAL
                                                                      Accountability over recorded
                                                                                                         Documented Policies        Is Technical College policy on personal use of               SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               GENERAL                    transactions may not be
                                                                                                         and Procedures             equipment communicated to all employees?                     In cases where tasks cannot be effectively separated, management can substitute increased
                                                                      maintained                                                                                                                 supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                 Each state Technical College shall develop and implement a Technical College Emergency
                                                                                                                                                                                                 Operations and Safety Plan to address preparedness for acts of violence, acts of terrorism,
                                                                                                                                                                                                 accidents, hazardous materials and natural disasters.
                                                                                                                                                                                                 Each state Technical College should involve students, employees and representatives of local
                                                                                                                                                                                                 law enforcement, fire services, emergency medical services, hospitals and emergency
PA
                                                                                                                                                                                                 management in the planning and development of the Technical College Emergency
                                                                                                                                                                                                 Operations and Safety Plan. O.C.G.A. §20-2-1185, School Safety, mandates such local
                                                                                                                                    Can the Technical College provide documentation assuring     involvement in emergency plans developed by elementary and secondary schools and the               http://sao.georgia.gov/vgn/images/p
                                                                      Loss of system, building and/or    Business Continuity Plan / that a Business Continuity Plan and a Disaster Recover       Technical Colleges are encouraged to participate with their local communities in the               ortal/cit_1210/13/27/48538431apm_
     General                               GENERAL                    records                            Disaster Recover Plan      Plan has been established and tested?                        development of their plan                                                                          rev5[1].pdf - Capital Asset Guide




                DTAE Confidential                                                                                                              8/4/2010                                                                                                                                                           Page 33
               Key Control Documentation                                                                                                                                                                                                                                                              Fiscal Year 2006/07
                                                                                                                 Technical College __________________                                                                                                                                               Note: Initial and Date
                                                                                                                                                                                                                                                                                                the box to document step


#              Risk Area                                      Sub Area                 Risk            Control Name                                   Question                                                                   DTEA/SAO P&P                                                                   Link(s)
                                                                                                                                                                                             DTAE Central Office and the Technical Colleges Financial, HRMS, Document Direct, Citrix and
                                                                                                                                                                                             Flex systems are supported by the State of Georgia. The Banner System is supported jointly by
                                                                                                                                                                                             DTAE Central Office and the Technical Colleges. Data in these systems will be controlled and
                                                                                                                                                                                             safeguarded to ensure accuracy and privacy. A person (user) who demonstrates a need to use
                                                                                                                                                                                             the information contained in these systems to perform their job duties should have access to
                                                                                                    Assign a liaison with IT   Can the Technical College provide documentation assuring      that data. The state of Georgia, DTAE and the Technical Colleges protect the privacy of this
PA   General                               Information Technology        Lack of IT support
                                                                                                    office                     that there is an assigned liaison with IT office?             data by limiting access to authorized users for approved purposes. Unauthorized access to the
                                                                                                                                                                                             financial, HRMS Document Direct, Citrix, Flex and Banner systems is prohibited.
                                                                                                                                                                                             When data is transferred from a protected environment, the data may be used only for
                                                                                                                                                                                             approved purposes. Individuals who transfer and/or receive data are responsible for its security
                                                                                                                                                                                             and unauthorized use or distribution is prohibited.


                                                                                                                                                                                             DTAE Central Office and the Technical Colleges Financial, HRMS, Document Direct, Citrix and
                                                                                                                                                                                             Flex systems are supported by the State of Georgia. The Banner System is supported jointly by
                                                                                                                                                                                             DTAE Central Office and the Technical Colleges. Data in these systems will be controlled and
                                                                                                                                                                                             safeguarded to ensure accuracy and privacy. A person (user) who demonstrates a need to use
                                                                                                                                                                                             the information contained in these systems to perform their job duties should have access to
                                                                                                    Emergency preparedness     Can the Technical College provide documentation assuring      that data. The state of Georgia, DTAE and the Technical Colleges protect the privacy of this
PA   General                               Information Technology        Major damage to facility
                                                                                                    plan                       that Emergency preparedness plan occurs?                      data by limiting access to authorized users for approved purposes. Unauthorized access to the
                                                                                                                                                                                             financial, HRMS Document Direct, Citrix, Flex and Banner systems is prohibited.
                                                                                                                                                                                             When data is transferred from a protected environment, the data may be used only for
                                                                                                                                                                                             approved purposes. Individuals who transfer and/or receive data are responsible for its security
                                                                                                                                                                                             and unauthorized use or distribution is prohibited.


                                                                                                                                                                                             The Department encourages employees to develop and improve their skills and knowledge. A
                                                                                                                               Are employee training programs adequate within the areas      variety of resources for training and educational opportunities are available to employees who
                                                                                                                               of Accounts Payable, Accounts Receivable, Financial Aid,      need additional training to improve operations, efficiency, effectiveness, and to expand and       http://www.dtae.org/adminservices/f
                                                                                                    Documented policies and
PA   GENERAL                               MANAGEMENT REVIEW             Fraudulent activity                                   Bookstore operations, Human Resources Management,             enrich the scope of programs for which the employees are responsible.                              orms/DTAE_Local_Board_Approval.
                                                                                                    Procedures
                                                                                                                               Cash Management, Bank Reconciliations and Banner and          All employees, upon obtaining the appropriate approval, are eligible to participate in staff       doc
                                                                                                                               PeopleSoft entries?                                           development activities. The policy shall be administered in accordance with the Department's
                                                                                                                                                                                             Statement of Equal Opportunity.
                                                                                                                                                                                             GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                               Are managers and supervisors required, as part of the                                                                                                            http://www.dtae.org/adminservices/f
                                                                                                    Documented policies and                                                                  SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               MANAGEMENT REVIEW             Fraudulent activity                                   evaluation process, to suggest measures to correct                                                                                                               orms/DTAE_Local_Board_Approval.
                                                                                                    Procedures                                                                               In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                               weaknesses or inadequacies?                                                                                                                                      doc
                                                                                                                                                                                             supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                               Are there current policies, procedures, and processes in
                                                                                                                               place that provide reasonable assurance that the Office of    GA ACCOUNTING PROCEDURES MANUAL
                                                                                                    Documented policies and    Business and Finance is in compliance with applicable         SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               MANAGEMENT REVIEW             Fraudulent activity
                                                                                                    Procedures                 Technical College policies and procedures, as well as         In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                               applicable laws and regulations? If so, please briefly        supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                               describe these policies, procedures, and processes.

                                                                                                                                                                                             GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                                                                                                                                                                http://www.dtae.org/adminservices/f
                                                                                                    Documented policies and    Do fiscal officers understand the importance of internal      SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               MANAGEMENT REVIEW             Fraudulent activity                                                                                                                                                                                                    orms/DTAE_Local_Board_Approval.
                                                                                                    Procedures                 controls, including division of responsibility?               In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                                                                                                                                                                                doc
                                                                                                                                                                                             supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                                                                             GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                                                                                                                                                                http://www.dtae.org/adminservices/f
                                                                                                    Documented policies and    Do policy and procedures manuals reference Applicable         SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               MANAGEMENT REVIEW             Fraudulent activity                                                                                                                                                                                                    orms/DTAE_Local_Board_Approval.
                                                                                                    Procedures                 federal and state regulations?                                In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                                                                                                                                                                                doc
                                                                                                                                                                                             supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                                                                             GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                                                                                                                                                                http://www.dtae.org/adminservices/f
                                                                                                    Documented policies and    Do policy and procedures manuals reference Bylaws and         SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               MANAGEMENT REVIEW             Fraudulent activity                                                                                                                                                                                                    orms/DTAE_Local_Board_Approval.
                                                                                                    Procedures                 statutes of the governing board of the system?                In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                                                                                                                                                                                doc
                                                                                                                                                                                             supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                                                                             GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                                                                                                                                                                http://www.dtae.org/adminservices/f
                                                                                                    Documented policies and    Do policy and procedures manuals reference Internal           SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               MANAGEMENT REVIEW             Fraudulent activity                                                                                                                                                                                                    orms/DTAE_Local_Board_Approval.
                                                                                                    Procedures                 policies?                                                     In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                                                                                                                                                                                doc
                                                                                                                                                                                             supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                               Do reports and summaries of operations provide essential
                                                                                                                               and timely information necessary for 1.Managerial             GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                                                                                                                                                                http://www.dtae.org/adminservices/f
                                                                                                    Documented policies and    monitoring and control, 2. Adequately focus on the            SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               MANAGEMENT REVIEW             Fraudulent activity                                                                                                                                                                                                    orms/DTAE_Local_Board_Approval.
                                                                                                    Procedures                 management information requirements, 3. Highlight             In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                                                                                                                                                                                doc
                                                                                                                               significant or unusual variations and 4. Provide timely and   supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                               complete information needed both internally and externally?

                                                                                                                                                                                             GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                               Do you have any particular areas of concern within your
                                                                                                    Documented policies and                                                                  SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               MANAGEMENT REVIEW             Fraudulent activity                                   department which you would like to see addressed by the
                                                                                                    Procedures                                                                               In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                               Department of Internal Audit?
                                                                                                                                                                                             supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                                                                             GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                                                                                                                                                                http://www.dtae.org/adminservices/f
                                                                                                    Documented policies and    Has a system been established to insure that fiscal           SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               MANAGEMENT REVIEW             Fraudulent activity                                                                                                                                                                                                    orms/DTAE_Local_Board_Approval.
                                                                                                    Procedures                 responsibility exists at all management levels?               In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                                                                                                                                                                                doc
                                                                                                                                                                                             supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                                                                             GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                               Has the Office of Business and Finance experienced any
                                                                                                    Documented policies and                                                                  SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               MANAGEMENT REVIEW             Fraudulent activity                                   theft losses of $1,000 or more during the last twelve
                                                                                                    Procedures                                                                               In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                               months? If so, please describe each occurrence in detail.
                                                                                                                                                                                             supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                               Have proper safeguards been established to protect the        GA ACCOUNTING PROCEDURES MANUAL
                                                                                                    Documented policies and    Office of Business and Finance’s assets from damage,          SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               MANAGEMENT REVIEW             Fraudulent activity
                                                                                                    Procedures                 theft, misuse, abuse, neglect, waste, and unauthorized        In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                               access? If so, please briefly describe these safeguards.      supervision as an alternative control activity that can help prevent or reduce these risks.



                DTAE Confidential                                                                                                         8/4/2010                                                                                                                                                            Page 34
               Key Control Documentation                                                                                                                                                                                                                                                                 Fiscal Year 2006/07
                                                                                                                Technical College __________________                                                                                                                                                   Note: Initial and Date
                                                                                                                                                                                                                                                                                                   the box to document step


#              Risk Area                                Sub Area                 Risk                  Control Name                                    Question                                                                    DTEA/SAO P&P                                                                    Link(s)
                                                                                                                               Have the contracts for the bookstore, foodservice, and
                                                                                                                               janitorial services been reviewed by the General Counsel?      GA ACCOUNTING PROCEDURES MANUAL
                                                                                                    Documented policies and    Were competitive bids used for each of these contracts?        SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               MANAGEMENT REVIEW       Fraudulent activity
                                                                                                    Procedures                 What policies and procedures are in place to monitor           In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                               compliance with these contracts? Do each of these              supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                               contracts contain a right to audit clause?
                                                                                                                                                                                              GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                               In your opinion, what are the five most significant risks
                                                                                                    Documented policies and                                                                   SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               MANAGEMENT REVIEW       Fraudulent activity                                         currently faced by the Office of Business and Finance?
                                                                                                    Procedures                                                                                In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                               What steps have been taken to mitigate these risks?
                                                                                                                                                                                              supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                                                                              GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                               In your opinion, what are the five most significant risks
                                                                                                    Documented policies and                                                                   SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               MANAGEMENT REVIEW       Fraudulent activity                                         currently faced by the Technical College? What steps have
                                                                                                    Procedures                                                                                In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                               been taken to mitigate these risks?
                                                                                                                                                                                              supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                                                                              GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                               What criteria, if any, have you established for evaluating
                                                                                                    Documented policies and                                                                   SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               MANAGEMENT REVIEW       Fraudulent activity                                         and monitoring the Office of Business and Finance’s goals
                                                                                                    Procedures                                                                                In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                               and objectives?
                                                                                                                                                                                              supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                                                                          GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                               What steps does the Office of Business and Finance take to
                                                                                                    Documented policies and                                                               SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               MANAGEMENT REVIEW       Fraudulent activity                                         ensure that Technical College policies and procedures are
                                                                                                    Procedures                                                                            In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                               upheld?
                                                                                                                                                                                          supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                                                                              GA ACCOUNTING PROCEDURES MANUAL
                                                                                                    Documented policies and    Who in your department have you authorized to have a cell      SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               MANAGEMENT REVIEW       Fraudulent activity
                                                                                                    Procedures                 phone that is paid for by the Technical College?               In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                                                                              supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                                                                              GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                                                              SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                                                                                                                   Can the Technical College provide documentation assuring
                                                                                                                                                                                              In cases where tasks cannot be effectively separated, management can substitute increased
                                                                   Failure to comply with regulatory Documented policies and   that failure to comply with regulatory standards (Medicare,
                                                                                                                                                                                              supervision as an alternative control activity that can help prevent or reduce these risks.
                                           Payroll                 standards (Medicare, HIPPA, etc) procedures                 HIPPA, etc) does not occur?


                                                                                                                                                                                              Commitment to Competence
                                                                                                                                                                                              Introduction
                                                                                                                                                                                              The need for competent employees is obvious. Competence is a characteristic of people who
                                                                                                                                                                                              have the skill, knowledge and ability to perform a task. This is especially true in an Information
                                                                                                                                                                                              Technology environment. People who are poorly trained or just don't know what to do in a crisis
                                                                                                                                                                                              cannot be expected to support and promote controls, as they are too busy merely trying to get
                                                                                                                                                                                              the
                                                                                                                                                                                              job done. Management is responsible for ensuring the competency of its personnel and can
                                                                                                                                                                                              accomplish this by establishing appropriate human resource policies and procedures.
                                                                                                                                                                                              Management sets standards for how well tasks should be performed and must then consider
                                                                                                                                                                                              the
                                                                                                                                                                                              balance between competence and cost. Higher competence requires less supervision but must
                                                                                                                               Does each individual in the Office of Business and Finance     be
                                                                                                    Documented policies and    have a current written job description available for review?   weighed against the higher cost of retaining more experienced personnel. Supervisors analyze
PA   GENERAL                               PAYROLL                 Fraudulent activity
                                                                                                    Procedures                 If available, for each employee at the manager level or        what knowledge and skills are needed by employees to perform their jobs adequately. Formal
                                                                                                                               above please provide a copy of their job description.          and informal job descriptions assist staff in defining the tasks their particular jobs entail.
                                                                                                                                                                                              Implementation Guidance
                                                                                                                                                                                              1. Establish formal written job descriptions to define tasks comprising the jobs/positions.
                                                                                                                                                                                              a. Formally analyze the tasks comprising the job.
                                                                                                                                                                                              b. Consider the extent to which individuals must exercise judgment.
                                                                                                                                                                                              c. Consider the extent of supervision needed.
                                                                                                                                                                                              d. Formally analyze and document the knowledge and skills needed by individuals to
                                                                                                                                                                                              perform the job.
                                                                                                                                                                                              2. Evaluate the knowledge and skill exhibited by employees in performing their jobs.
                                                                                                                                                                                              a. Document evidence showing your employees appear to have these skills and
                                                                                                                                                                                              knowledge.
                                                                                                                                                                                              b. Provide training opportunities for all employees, as necessary, to update and
                                                                                                                                                                                              increase their knowledge and skills.



                                                                                                                                                                                              GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                               Have you ever encountered any irregular purchasing card
                                                                                                    Documented policies and                                                                   SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
PA   GENERAL                               PURCHASING              Fraudulent activity                                         charges from anyone presently employed by the Technical
                                                                                                    Procedures                                                                                In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                               College?
                                                                                                                                                                                              supervision as an alternative control activity that can help prevent or reduce these risks.




                DTAE Confidential                                                                                                         8/4/2010                                                                                                                                                               Page 35
              Key Control Documentation                                                                                                                                                                                                                                                                                          Fiscal Year 2006/07
                                                                                                                                          Technical College __________________                                                                                                                                                 Note: Initial and Date
                                                                                                                                                                                                                                                                                                                           the box to document step


#             Risk Area                                   Sub Area                                       Risk                   Control Name                                      Question                                                                   DTEA/SAO P&P                                                                  Link(s)
                                                                                                                                                                                                                        vendor who conducts business with the State of Georgia.
                                                                                                                                                                                                                        All vendors are required to complete a Federal W-9 form before conducting business with
                                                                                                                                                                                                                        DTAE Central Office and/or the Technical Colleges. Each Technical College and DTAE Central
                                                                                                                                                                                                                        Office is responsible for maintaining the completed W-9 forms for each vendor they conduct
                                                                                                                                                                                                                        business with. The W-9 form can be found at http://www.irs.gov/pub/irs-pdf/fw9.pdf.
                                                                                                                                                                                                                        Setting up vendors
                                                                                                                                                                                                                        In order for Administrative Services personnel to process payments in Accounts Payable, the
                                                                                                                                                                                                                        recipient of the payment must be established as a vendor (e.g., travel, rents, regular payments,
                                                                                                                                                                                                                        etc…) in the state vendor file. Users should first try thoroughly searching by TIN/FEI number
                                                                                                                                                                                                                        and alphabetically by vendor name to confirm that the vendor does not already exist in
                                                                                                                                                                                                                        Peoplesoft before any vendors are added. The Administrative Services personnel must have
                                                                                                                                                                                                                        attended the appropriate training and have security access to process vendor additions. The
                                                                                                                                                                                                                        Administrative Services personnel will add vendor information in Peoplesoft. A “New Vendor
    ACCOUNTS PAYABLE, ACCRUED             ACCOUNTS PAYABLE / PURCHASING: ACCOUNT                                           Matching of employee            Can the Technical College provide documentation assuring     Information Form” should be completed. (See Attached for form.) The vendor is added in an        http://www.dtae.org/adminservices/
Q   LIABILITIES, AND OTHER                RANGE: 200000-202999, 210000, 214000-215999   Related party transactions (fraud) addresses to vendor             that matching of employee addresses to vendor addresses      unapproved status. The Financial System Solutions (FSS) Vendor Maintenance Group with            new_acct_procedures/fuel_cards.d
    LIABILITIES                           and 220                                                                          addresses                       occurs?                                                      Phoenix will approve all vendors. Users should check for an approved vendor status at the end oc
                                                                                                                                                                                                                        of or throughout the day by viewing the Identifying Information panel.
                                                                                                                                                                                                                        Users at various Technical Colleges and DTAE Central Office can enter vouchers to a vendor
                                                                                                                                                                                                                        in an unapproved status but system checks and express checks can only be produced for
                                                                                                                                                                                                                        vendors with an approved status. If users do enter vouchers before the vendor has been
                                                                                                                                                                                                                        approved then it is important to remember that the effective date on a vendor location must be
                                                                                                                                                                                                                        less than the accounting date on the voucher in order for a system check to be produced.
                                                                                                                                                                                                                        Recommend waiting until vendor is approved before entering any vouchers.
                                                                                                                                                                                                                        Steps to take when adding a vendor in Peoplesoft:
                                                                                                                                                                                                                        1. User must go to the Phoenix website www.phoenix.gagta.com
                                                                                                                                                                                                                        2. User must click on the Financials Button
                                                                                                                                                                                                                        3. User must next click on the AP Button
                                                                                                                                                                                                                        4. User must then click on the AP-001 (AP Business Processes) for adding a new vendor and
                                                                                                                                                                                                                        follow the step by step instructions for adding a new vendor.       (Special attention should be
                                                                                                                                                                                                                                                                                                                         http://www.dtae.org/adminservices/
                                                                                                                                                                                                                                                                                                                         acct-
                                                                                                                                                                                                                                                                                                                         procedures/VendorMaintenance.do
                                                                                        Fraud can occur in various forms                                   What policies and procedures exist with respect to the       GA ACCOUNTING PROCEDURES MANUAL
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                                                                                                                            c
                                          BANK RECONCILIATIONS: ACCOUNT RANGE:          such as ghost vendors,               Documented policies and       disposition of old outstanding checks which have not been    SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
Q   LIABILITIES, AND OTHER                                                                                                                                                                                                                                                                                               http://www.dtae.org/adminservices/f
                                          200000-202999, 210000, 214000-                kickbacks, purchase of personal      procedures                    cashed? When does the Technical College cancel old           In cases where tasks cannot be effectively separated, management can substitute increased
    LIABILITIES                                                                                                                                                                                                                                                                                                          orms/Purchasing.doc
                                                                                        items, etc.                                                        outstanding checks?                                          supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                                                                                                                                                                                                                         http://statepurchasing.doas.georgia.
                                                                                                                                                                                                                                                                                                                         gov/vgn/images/portal/cit_11783501
                                                                                                                                                                                                                                                                                                                         /53901646procurementmanual.pdf
                                                                                                                                                                                                                        "The Central Office and Technical Colleges shall use the State of Georgia's HRMS System to
    ACCOUNTS PAYABLE, ACCRUED                                                                                                                                                                                           process all payroll and HRMS related transactions. All individual payroll checks will be
                                                                                                                             Void checks after             Can the Technical College provide documentation assuring                                                                                                        http://www.dtae.org/dtaepolicy/men
Q   LIABILITIES, AND OTHER                PAYROLL                                       Misappropriation of payroll checks                                                                                              generated from this system.
                                                                                                                             standard time frame           that checks are voided within the allotted time frame?                                                                                                          u.html
    LIABILITIES                                                                                                                                                                                                         The Central Office and Technical Colleges shall process all payroll transactions to include the
                                                                                                                                                                                                                        generation of individual payroll checks for Department employees."
                                                                                                                                                                                                                        Due Diligence
                                                                                                                                                                                                                        General
Q                                                                                                                                                                                                                       Due diligence shall be practiced in the collection of debt. The probability of collecting a past   http://www.dtae.org/adminservices/
                                          ACCOUNTS RECEIVABLE: ACCOUNT RANGE:           Revenue not received due to          Periodic review of AR         Do adequate procedures exist for follow-up and collection    due receivable is equivalent to the quality of the information obtained at the time the debt is    new_acct_procedures/due_diligenc
    ACCOUNTS RECEIVABLE                   121000-140999 and 160000-160999               inadequate collection process        Aging by supervisors          of delinquent accounts?                                      incurred. Therefore, when a debt to the                                                            e.doc
                                                                                                                                                                                                                        GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                             Documented policies and       Can the Technical College provide documentation assuring
                                                                                                                                                                                                                        SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
Q   CASH HANDLING & MANAGEMENT            BOOKSTORE                                     Obsolete inventory                   procedures for surplus        that Documented policies and procedures for surplus
                                                                                                                                                                                                                        In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                             inventory                     inventory occurs?
                                                                                                                                                                                                                        supervision as an alternative control activity that can help prevent or reduce these risks.

                                                                                                                                                                                                                        GA ACCOUNTING PROCEDURES MANUAL
                                                                                                                                                           Can the Technical College provide documentation assuring
                                                                                                                             System to determine                                                                        SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
Q   CASH HANDLING & MANAGEMENT            BOOKSTORE                                     Unavailable textbooks                                              the availability of and purchasing of proper quantities of
                                                                                                                             textbook needs by class                                                                    In cases where tasks cannot be effectively separated, management can substitute increased
                                                                                                                                                           textbooks needed for classes occurs?
                                                                                                                                                                                                                        supervision as an alternative control activity that can help prevent or reduce these risks.
                                                                                                                             System within Banner to
                                                                                                                             award only students that
                                                                                                                             are eligible based on         Can the Technical College provide documentation assuring
                                                                                                                             admittance, enrollment,       awarding only students who are eligible based upon
Q   FINANCIAL AID                         FINANCIAL AID                                 Awards to ineligible students
                                                                                                                             grade level, need and         admittance, enrollment, grade level, need and other
                                                                                                                             other collegial, state and    regulations are adhered to?                                  The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
                                                                                                                             federal regulations and                                                                    Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
                                                                                                                             until a FAFSA is verified                                                                  student records.
                                                                                                                             Ensure Awarding Policy
                                                                                                                             includes procedures to        Can the Technical College provide documentation assuring
                                                                                                                             identify funds remaining      that the awarding policy includes procedures to identify
                                                                                        Failure to maximize available
Q   FINANCIAL AID                         FINANCIAL AID                                                                      after initial packaging.      funds remaining after initial packaging and awarding
                                                                                        funds
                                                                                                                             Awarding projects are         projects are established to maximize the use of available    The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
                                                                                                                             established to maximize       funds?                                                       Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
                                                                                                                             the use of available funds.                                                                student records.
                                                                                                                             Up-to-date information
                                                                                                                                                           Can the Technical College provide documentation assuring
                                                                                        Failure to provide accurate and      regarding the financial aid                                                                The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
Q   FINANCIAL AID                         FINANCIAL AID                                                                                                    that Up-to-date information regarding the financial aid
                                                                                        timely information to students       process on the financial                                                                   Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
                                                                                                                                                           process on the financial aid website occurs ?
                                                                                                                             aid website                                                                                student records.
                                                                                                                             Perform verification of
                                                                                                                                                           Can the Technical College provide documentation assuring
                                                                                                                             information submitted on
                                                                                                                                                           that they have performed verification of information
Q   FINANCIAL AID                         FINANCIAL AID                                 Identity Theft                       the Free Application for                                                                   The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
                                                                                                                                                           submitted on the Free Application for Federal Student Aid
                                                                                                                             Federal Student Aid                                                                        Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
                                                                                                                                                           (FAFSA)?
                                                                                                                             (FAFSA)                                                                                    student records.
                                                                                                                             Professional judgment
                                                                                                                                                           Can the Technical College provide documentation assuring
                                                                                                                             decisions are supported
                                                                                        Improper professional judgment                                     that professional judgment decisions and reviews are
Q   FINANCIAL AID                         FINANCIAL AID                                                                      by documentation and                                                                       The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
                                                                                        decisions                                                          supported by documentation and comments in the financial
                                                                                                                             comments in the financial                                                                  Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
                                                                                                                                                           aid system?
                                                                                                                             aid system.                                                                                student records.
                                                                                        Inadequate verification of
                                                                                                                             documentation of              Can the Technical College provide assurance that the
                                                                                        information submitted on the                                                                                                    The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
Q   FINANCIAL AID                         FINANCIAL AID                                                                      verification in the financial verification of documentation and supervisory review of
                                                                                        Free Application for Federal                                                                                                    Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
                                                                                                                             aid system                    those documents within the financial aid system occurs?
                                                                                        Student Aid (FAFSA)                                                                                                             student records.




               DTAE Confidential                                                                                                                                     8/4/2010                                                                                                                                                            Page 36
              Key Control Documentation                                                                                                                                                                                                                                                        Fiscal Year 2006/07
                                                                                                                Technical College __________________                                                                                                                                         Note: Initial and Date
                                                                                                                                                                                                                                                                                         the box to document step


#             Risk Area                                   Sub Area                Risk                 Control Name                                  Question                                                                DTEA/SAO P&P                                                                Link(s)
                                                                                                                                                                                          The Technical Colleges shall adhere to the requirements of the Family Educational Rights and
                                                                     Insufficient documentation in   Review of documentation   Can the Technical College provide documentation assuring
Q   FINANCIAL AID                         FINANCIAL AID                                                                                                                                   Privacy Act of 1974 and Department procedures concerning the accuracy and privacy of
                                                                     student files                   in student files          that Review of documentation in student files occurs ?
                                                                                                                                                                                          student records.




               DTAE Confidential                                                                                                         8/4/2010                                                                                                                                                      Page 37
            Key Control Documentation                                                                                                                                                                                                                                                                              Fiscal Year 2006/07
                                                                                                                         Technical College __________________                                                                                                                                                    Note: Initial and Date
                                                                                                                                                                                                                                                                                                             the box to document step


#           Risk Area                                  Sub Area                        Risk                     Control Name                                   Question                                                                     DTEA/SAO P&P                                                                     Link(s)
                                                                                                                                                                                                       GA ACCOUNTING PROCEDURES MANUAL
                                                                         Failure to ensure physical          Receipts should be
                                                                                                                                                                                                       SECTION: FIVE – INTERNAL CONTROLS TOPIC: CONTROL ACTIVITIES
W                                                                        security of Business Office         properly recorded and      Can the Technical College provide documentation assuring
                                                                                                                                                                                                       In cases where tasks cannot be effectively separated, management can substitute increased
                                                                         operations. Failure to log checks   deposited in a timely      that receipts(checks) are properly recorded / logged in and
                                                                                                                                                                                                       supervision as an alternative control activity that can help prevent or reduce these risks.
    ACCOUNTS RECEIVABLE                 REVENUE                          as they are received.               manner                     deposited in a timely manner?                                  General Procedure
                                                                                                                                                                                                       Only Administrative Services Staff, or those identified by the VPA or Assistant Commissioner,
                                                                                                                                                                                                       will be allowed to collect incoming funds. If other DTAE Central Office or other Technical
                                                                                                                                                                                                       College staff should happen to obtain funds (via mail, etc) the funds should be immediately
                                                                                                                                                                                                       routed to a central collection point, typically the identified staff in the Administrative Services
                                                                                                                                                                                                       Office for processing. Appropriate staff from the Technical College or DTAE Central Office            http://www.dtae.org/adminservices/
                                                                                                                                                                                                       should log all incoming funds in a log or receipt book. In those instances where Banner is not        acct-
                                                                                                                                                                                                       used, pre-numbered receipts are preferred, as it facilitates verification that duplications, skips,   procedures/BankAccountReconcilia
W                                                                                                                                                                                                      or deletions of receipt numbers are avoided and that receipts are properly recorded. Any funds        tion.doc
                                                                                                                                                                                                       coming by mail should be secured in a safe/vault until such time they can be appropriately            http://www.dtae.org/adminservices/
                                                                                                                                                                                                       logged and processed. DTAE Central Office and each Technical College should have written              acct-procedures/PettyCash.doc
                                                                                                                                                                                                       guidelines to identify the person responsible for securing those receipts in order to insure          http://www.dtae.org/adminservices/
                                                                                                                                                                                                       correct separation of duties. All incoming checks should be made out to the appropriate               new_acct_procedures/Safeguarding
                                                                                                                                                                                                       Technical College or DTAE Central Office and should be immediately stamped with a                     _Cash_Handling_Incoming_Funds.
                                                                         Cash is not adequately              Monitoring by              Are bank deposits verified by means of a duplicate deposit     restrictive endorsement. All funds, once logged, should be placed in a secure cash drawer,            doc
    CASH HANDLING & MANAGEMENT          CASH AND / OR CASH EQUIVALENTS   safeguarded                         management                 slip or other means?                                           box, or vault. In a timely manner (at least daily), the cashier(s) should empty cash drawer and
                                                                                                                                                                                                       General Procedure                                                                                     http://www.
                                                                                                                                                                                                       Only Administrative Services Staff, or those identified by the VPA or Assistant Commissioner,
                                                                                                                                                                                                       will be allowed to collect incoming funds. If other DTAE Central Office or other Technical