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...