Accounting Internal Controls
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.
Documents the steps completed each pay period to ensure necessary transfers, tax payments, and direct deposit are completed on schedule.
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.
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...