Internal Controls

  • Accounting Internal Controls 

    Positive Pay:
    Defends against check fraud by providing the bank with a data file of all checks. Checks presented for payment are matched against the data file and if discrepancies are found, the District is notified.

    Division of Responsibilities:
    Duties are assigned to Business Office staff to maintain a series of cross checks. This includes payroll processing, accounts payable and cash receipts from time of receipt to time of deposit.

    Payroll Checklist:
    Documents the steps completed each pay period to ensure necessary transfers, tax payments, and direct deposit are completed on schedule.

    Data Security:
    Access for individuals using the District Accounting/Payroll/Human Resources System is reviewed monthly, checking for invalid logins, off-hours logins, and transactions entered by an individual who is not responsible for that type of transaction.

    Purchasing Card:
    The purchases made with a purchasing card are restricted to the cardholder, a product category and the dollar amount of the purchase order linked to the card. Purchasing cards are restricted to a minimal number of staff to ensure the purchasing agent can thoroughly verify that purchases adhere to bidding laws and district policy.

    Fixed Assets Inventory:
    Fixed assets over $1,000 are tagged with sequentially numbered labels and any movement/disposal of equipment is submitted for tracking in the Fixed Asset System.

    More on Internal Controls in Audits...