1) Are responsibilities for the final review and approval of financial reports adequately segregated from those for the preparation of the reports?
2) Are responsibilities for maintaining the general ledger adequately segregated from those for maintaining subsidiary ledgers?
3) Are responsibilities for maintaining the general ledger adequately segregated from those for the custody of assets?
4) Are the responsibilities for preparation and approval functions adequately segregated from those for journal entries?
5) Are responsibilities for principal accounting, for the treasury, and for custody functions adequately segregated?
6) If EDP is used, is the principle of segregation of duties maintained within processing activities?
1) Do general ledger procedures and controls include the following?
a) A formal plan of organization for the unit of government under which reporting responsibilities are clearly defined and reasonably aligned?
b) Supervision of a principal accounting officer over accounting records and accounting employees at all locations?
c) General ledger control over all assets and transactions for all departments of the organization?
d) Bonding employees in positions of trust in amounts required by statutes or organization policy?
e) Written accounting policy and procedural manuals distributed to appropriate personnel?
f) Updating the accounting policy and procedural manuals, as necessary?
g) Procedures to ensure only authorized persons can alter or establish a new accounting principle, policy, or procedure to be used by the organization?
h) Security for accounting records?
i) A formal policy regarding conflicts of interest?
j) Requiring written representations from appropriate personnel as to compliance with accounting policies and procedures and with ethics policies?
k) Prohibiting loans to officials or employees?
l) Periodically evaluating the adequacy and effectiveness of the internal accounting controls related to the organization’s transaction systems (procurement, revenues, receivables, etc.)?
m) Implementing measures to correct weaknesses?
2) Do closing procedures and controls include the following?
a) Procedures and policies for closing the accounts for a reporting period, sufficient to ensure accounts are closed, adjusted, and reviewed on a timely basis?
b) Procedures to ensure all accounting systems have included all transactions applicable to the reporting period?
c) Review and approval of valuation reserves or other account balances based on estimates?
d) Having all journal entries reviewed, approved, and supported by adequate descriptions or documentation?
e) Controls to ensure only authorized individuals can initiate entries?
3) Do combining procedures and controls include the following?
a) Procedures to ensure orderly and effective accumulation of financial data?
b) Procedures for orderly processing of financial data received from departments and other accounting units?
c) Procedures to permit recording and review of special entries generated in the combining process?
4) Do preparation, review, and approval procedures and controls include the following?
a) Procedures to ensure financial reports are supported by either underlying account records or other documentation?
b) Procedures providing reasonable assurances all data required to be included in legal, as well as public reports, are properly disclosed?
c) Procedures to ensure financial reports are prepared on a consistent basis?
d) Review and approval of financial reports at appropriate levels of management and, if appropriate, the legislature before public release?
e) Procedures to ensure all requirements for filing of financial reports are met (bonds, public, etc.)?
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