Questionaire on Inventory Management Systems - DOC by snd62618

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									     Control Self-Assessment Workshop - Internal Control

Appendix M: Gifts, Grants, and Contracts
Internal Control Questionnaire

                                          Que stion                                            Ye s   No   N/A

Do procedures exist to ensure that differences bet ween gifts, grants and contract are
recognized, and that the appropriate accounts are properly established in UFAS?

Has the unit developed its own criteria for the approval of grant and contract proposals, to
include, at a minimum, the University’s criteria?

Has the unit developed its own criteria for the acceptance of gifts, to include, at a
minimum, the University’s criteria?

Do procedures ensure that expendit ures from restricted gift accounts comply with the
donor’s intent ?

Are all expenditures, including payroll expenses, incurred under a grant agreement or
contract reviewed for allowability by the principal investigator or another individual with
suitable means of verific ation?

Does the unit have a procedure to ensure that all potential matching fund requi rements
are met?

Are there procedures to ensure that all technical and progress reports are prepared by
employees directly involved wit h the grant program or contract and submitted to the
sponsor or contractor in accordance with the terms of the agreement ?

Does the unit award subgrants/subcontracts to other organizations only on the basis or
properly completed and approved sub-award proposals filed in a timely manner?

Are disbursements to subgrantees/subcontractees approved by management and based
only on properly completed reports or billings submitted in a timely manner?

Do procedures require the monitoring of subgrantees/subcontractees, and is appropriate
corrective action taken to address material problems and abuses prior to the final payment
of subgrant/subcont ract funds?

Does your department have all its grants and contracts on file at the Grant and Contract
Office, with proper approvals?
Appendix N: Budgeting and Accounting
Internal Control Questionnaire

                                         Que stion                                           Ye s   No   N/A

Are written accounting, policy, and procedural manuals regularly updated and
distributed to appropriat e personnel?

Is a current copy of the University’s Manual for Business and Finance; General Policy
and Guidelines available to the staff with responsibility for the key business activities?

Have Approval A uthorization forms or signature cards approved by the University
been reviewed periodically to ensure that authority to initiate or approve accounting
transactions, contract, receiving reports, Standard Time Reports and employment
authorizations are limited to appropriate personnel?

Is signature authority promptly revoked when the employee leaves the unit or
significantly changes job duties?

Are large expenditures for purc hases, travel, etc., obligated ahead of time to ensure
budgeted funds are available?

Is a system in place to provide appropriat e management with explanations of
significant variations between budgeted and actual financial status?

On a monthly basis, are UFAS statements reconciled to unit copies of trans action

If the Unit maintains a separate accounting system, is it reconciled to UFAS each

Are UFAS reconciliations reviewed by the unit head, and is action taken to correct
errors and ans wer questions?

Are anticipat ed fund deficits reported to the appropriat e level of University
management on a timely basis?
Appendix O: Cash Receipts
Internal Control Questionnaire

                                        Que stion                                         Ye s   No   N/A

Have procedures been developed which specify how the unit is to comply with
University requirements regarding the receipt, rec ording, safeguarding, deposit, and
reconciliation of receipts? (Receipts include cash, checks, and credit card

Are cash receipts physically safeguarded against theft and loss?

Are prenumbered or cash register receipts promptly issued to individuals for in -person

Are customers instructed to make the checks payable to the University of Illin ois?

Are all checks promptly restrictively endorsed for deposit only to the University of

Are receipts deposited in accordance with University policy (i.e., at least weekly, or
when $200 or more has accumulated)?

Are receipts deposited intact, with no cash ret ained or ex pended?

Are cash shortages identified and analyzed to det ermine if corrective action is

Does an individual independent of the person who deposits the funds verify that the
validated report of cash received (returned from Cashiering) agrees to the unit’s
Appendix P: Electronic Data Processing
Internal Control Questionnaire

                                        Que stion                                           Ye s   No   N/A

Does a business continuation plan exist which identifies critical activities, contains
plans for continued operations for short and long term emergencies, and identifies the
location of backup files, programs, and documentation, as well as alternative
processing sites?

Are copies of operating systems, critical data, and key software programs made
periodically and stored in an off-site location.

Is access to computer terminals and equipment limited to authorized personnel?

Is sensitive data protected by restricted access or other cont rols?

If student dat a is maintained on unit computers, is security over the data sufficient to
ensure compliance with the Family Educational Right to Privacy Act (FERPA)?

 Appendix Q: Expenditures (Non-Payroll)
Internal Control Questionnaire

                                        Que stion                                           Ye s   No   N/A

Has the unit developed written proc edures regarding the initiation, review, and
approval of all non-payroll expenditures?

Are all expenditure transactions and related vouchers independently reviewed for
completeness, accuracy, and compliance with Unive rsity policies, and agreement to
supporting documentation before being approved?

Are procedures in place to ensure that UFAS statements are reviewed by an
individual who does not approved vouchers and requisitions?

Are there procedures in place to prevent or detect duplicate payments to vendors, or
payment for material not received?

Are vendor invoices checked for accuracy and agreed to purchas e orders, contract
terms, receiving reports, etc. ensure proper payment?

Do procedures ensure that the person who benefits from an expenditure does not
approve the voucher?
 Appendix R: Inventory
Internal Control Questionnaire

                                       Que stion                                           Ye s   No   N/A

Have written procedures been developed regarding the receipt, storage, and issuance
of, and the accounting for, merchandise inventory ?

Are inventories physically safeguarded from unauthorized access and physical

Are all reductions of invent ory supported by appropriate documentation (e.g.,
requisition, sales document)?

Are all additions to inventory supported by appropriat e documentation (e. g., receiving

Are inventory records maint ained by individuals who do not have access to the
inventory ?

Is the inventory counted periodically and reconciled to inventory records?

Are discrepancies between the records and physical counts documented and brought
to the attention of appropriate management and the employee responsible for
inventory records?

Are discrepancies between the records and physical counts appropriately
investigated, and rec ords adjusted?

Are inventory records reconciled (and differences explained) to UFAS accounts on an
regular basis?
Appendix S: Moveable Equipment
Internal Control Questionnaire

                                        Que stion                                          Ye s   No   N/A

Does the unit conduct periodic equipment inventory counts are required by University

Is University equipment properly tagged and identified?

Are there added safeguards on easily stolen equipment?

Are Property Accounting System (PAS) records reviewed to ensure that all additions,
disposals, or thefts are properly recorded?

Are Property Accounting System records updated to reflect changes in condition and
availability of equipment?

 Appendix T: Organization and Management
Internal Control Questionnaire

                                        Que stion                                          Ye s   No   N/A

Has the responsibility for achieving objectives been assigned and documented?

Have the lines of authority and responsibility been clearly communicated throughout
the unit?

Do written procedures exist for systems that are critical to the operations of the unit?

Has unit management developed a system or proc edures for communicating
expectations and for coordinating efforts between offices, programs, and staf f
members (e.g., staff or management meetings, newsletters, memorandums)?

Are reports that summarize activities, programs, transactions, and financial status
reviewed by unit management on a regular basis?

Have procedures been implemented in the unit to verify the accuracy of data in
management and monit oring reports?

Have measurement criteria been developed to assess progress toward objectives
specified in planning and budget documents?
Appendix U: Personnel and Payroll
Internal Control Questionnaire

                                       Que stion                                          Ye s   No   N/A

Does the unit maintain personnel files that include current job descriptions and
performance appraisals?

Are procedures in place to ensure compliance with the University’s Conflict of Interest

Have procedures been established to record the usage of employee benefit time (e. g.,
sick leave, vacation, other leave) for Academic and Staff employees?

Are attendance records reviewed by management so that excessive absences are
dealt with properly?

For non-exempt employees (those eligible for overtime pay) do procedures exist to
ensure that overtime and other non-standard work hours are appropriate and
approved in advance by an employee’s supervisor?

Are the reports that provide the det ails of the payroll amounts charged to the unit’s
accounts (Payroll Account Distribution Vouchers) reviewed and compared to a copy of
the approved Standard Time Report (and any approved Time Report Adjustments, if
applicable) by someone who did not prepare the Standard Time Report?

Appendix V: Petty Cash
Internal Control Questionnaire

                                       Que stion                                          Ye s   No   N/A

Have the unit’s petty cash funds been authorized by the Office of Business Affairs?

Are petty cash funds used only for appropri ate purposes that are supported by
receipts signed by the person making the expenditure?

Is the fund periodically counted by someone ot her than the custodian and who is not
under the control of the custodian?
Appendix W: Purchasing and Leasing
Internal Control Questionnaire

                                        Que stion                                         Ye s   No   N/A

Have procedures been developed to determine, prior to placing the requisition,
whet her the purchase is appropriate for the UFAS account to be charged?

When preparing a Departmental Purchase Order (DP O), do proc edures exist to
ensure that the best combination of quality, total price, and delivery is obtained?

Are the persons responsible for approving the requisitioning of goods and/or
negotiating cont ract separate from those involved in reconciling UFAS statements?

Are procedures in place to prevent multiple purchases that are intended to circumvent
bid or approval limitations?

Do procedures exist to ensure to all goods rec eived are accurately counted and
examined to se that they meet quality standards and fulfill the requirements of the
purchase order?

Are procedures in effect the require the person rec eiving goods or servic es to
document the receipt by signing the invoice or receiving report?

Are the persons responsible for receiving and inspecting goods received separate
from those responsible for requisitioning goods or initiating accounting transactions?

Are written contracts used for all professional and artistic services?

Do procedures exist to review billings for contractors for compliance with the contract
prior to making payments?

Do procedures exist to insure that the leasing of equipment does not exceed the cost
of purchasing and maintaining similar equipment?
Appendix X: Revenue
Internal Control Questionnaire

                                      Question                                         Ye s   No   N/A

Have written procedures been developed regarding the recording and reconciliation of
revenue generating transactions?

Is the dispensing of all goods and services recorded?

Are sales records reconciled to appropriate accounting entries.

Does unit management review data showing trends regarding sales, cash receipts,

Do procedures exist to ensure that pric es of goods and services are adequate to
recover all direct and indirect costs?

Are all appropriate taxes charged?
Appendix Y: Accounts Receivable
Internal Control Questionnaire

                                        Que stion                                         Ye s   No   N/A

Has the unit received permission from the Office of Business Affairs to maintain a
separate accounts receivable system?

Have written procedures been developed regarding the recording and reconciliation of
receivables, payments, and other credit adjustments?

Are duties related to accounts receivable delegated so that no one individual c an
collect funds, update receivable rec ords, and reconcile accounts receivable details to

Do procedures exist to ensure that all refunds and adjustments are documented and

Is the total of departmental accounts receivable outstanding reconciled to UFAS

Are account billings issued at least monthly, or as required by contract or ot her

Are accounts rec eivable aged regularly, with older accounts receiving appropriat e

Do procedures exist which are intended to provide assurance that collection and
write-off of delinquent accounts is in compliance with the University’s policy?

Does unit management review data showing trends regarding the status of receivable
balances and take corrective action when required?

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