Business Practices Assessment Checklist
A “yes” answer suggests an appropriate level of control is in place. A “no” answer suggests that there is an internal control concern that may require correction or improvement. Call the Office of Audit and Advisory Services at 478-1652 if you have any questions or need assistance in completing this checklist. Not all categories may be applicable to your operations.
Departmental staff are familiar with Georgia Southern’s Business Policies and Procedures.
Department staff have access to departmental policies and procedures.
The department has documented, department-specific policies and procedures.
Department policies and procedures are communicated to staff consistently and on a recurring basis.
The department designates a specific individual to reconcile monthly financial reports to supporting revenue and expenditure documentation. Who? __________________________________
The monthly financial reconciliation is documented. How? __________________________
At least one specific individual is designated to review and approve departmental financial transactions. Who? ________________________________________________________
The individual who reviews and approves financial transactions is someone other than the individual who reconciles the monthly financial reports.
At least one specific individual is designated to monitor actual expenditures with budgeted amounts. Who? ________________________________________________________
The department has an organized filing system in place for financial documents and required supporting documentation to assure easy retrieval.
_ Documents are retained for the appropriate time period as prescribed by University policy, BOR policy, and the State Records Management Act.
The department maintains a central file location for the required documentation related to grants (matching expenditures, time & effort reporting, P-card documentation, etc)?
The department issues standard University receipts (or approved alternative receipt forms) when funds are collected by/received for the University.
Receipts are pre-numbered and used in sequential order.
The department immediately prepares receipts when funds are collected.
A restrictive endorsement is placed on incoming checks and money orders when they are received.
Receipts are regularly reconciled to assure all receipts are accounted for.
Sales registers or point-of-sale-terminals record receipts from cash sales.
All funds collected are deposited with the University Cashier’s Office.
An employee who does not have access to cash verifies daily totals from cash registers/POS terminals.
Collected funds are secured until deposited.
Funds collected are deposited in accordance with University deposit policies (generally the next business day).
Duties of opening mail, processing cash received by mail, and account reconciliation are separated among several individuals (i.e., one individual is not responsible for two or more of these activities).
Duties of collecting cash, preparing receipts, and account reconciliation are separated among several individuals (i.e., one individual is not responsible for two or more of these activities).
Individuals primarily responsible for handling cash take at least five consecutive days of leave (i.e., vacation) annually.
Safe combinations and keys to cash boxes or files are restricted to a limited number of essential employees.
Safe combinations and locks to files are changed periodically, and after turnover in personnel assigned direct responsibility for the combinations or locks.
All external bank accounts are established only through the University Controller.
An employee’s supervisor or another individual designated by the department,who has specific knowledge regarding the hours worked by the employee,approves time in ADP.
Hourly totals on time cards are recalculated for accuracy by the employee’s supervisor or other designated individual.
Estimating time worked is prohibited (i.e., entering hours worked in ADP before these hours are actually worked) unless authorized by the Controller’s Division.
Employees request leave time in ADP.
Each employee’s supervisor approves leave time in ADP.
Departmental payroll documents are maintained in a secure location.
Individuals are not allowed to supervise, or be supervised, by a relative.
Personnel Action forms for employee terminations and transfers are processed prior to the effective date of termination or transfer, if practical.
Employees are not allowed to make personal long-distance phone calls.
If personal long-distance calls are made, employees reimburse, by personal check payable to the University, any personal long distance calls made on University-provided phones.
The traveler requesting reimbursement signs travel vouchers.
Travel vouchers are submitted within 5 days of the conclusion of reimbursable travel.
Travel vouchers reflect only authorized business travel expenditures.
Staff members who are assigned University purchasing cards secure the card to prevent unauthorized use.
Purchasing card supporting documentation is reviewed before purchasing card transactions are approved for payment by department reconcilers.
Purchases using University funds are made only for business purposes.
All purchases using University funds are delivered directly to the department or Central Receiving (e.g., no purchases are delivered to addresses other than the University).
Cell phone bills are reviewed monthly for appropriateness and business applicability of calls made.
A designated individual in the department is assigned property control responsibilities.
The property control individual is responsible for ensuring that each piece of equipment has an inventory control tag, if applicable, and may be found in its designated location.
The department safeguards University assets through use of appropriate security measures.
The property control individual documents University equipment (e.g., type, quality, condition, etc.) removed from the department for off-campus work-related activities.
A checklist is completed by a departmental individual to ensure that all University property on loan to an employee (e.g., keys, credit/purchasing cards, computers, cameras, cell phones, etc.) is returned prior to the employee’s termination date or before transferring to another department.
The property control manager periodically performs an inventory of equipment indicated on the University’s inventory listing for the unit.
Administration of Sponsored Programs
At least one individual in the department has been trained to administer external sponsored programs (i.e., any program sponsored and funded by external agencies) by knowledgeable Office of Research Services and Sponsored Programs staff.
The department administrator receives regular (i.e., at least annual) refresher training related to management of sponsored programs by knowledgeable Office of Research Services and Sponsored Programs staff.
The department administrator is knowledgeable in the applicable OMB circulars (A-133, A-110, A-21) relative to appropriate management of sponsored program funds.
The department administrator reviews each request for reimbursement from grant funds for compliance with grant provisions and OMB circulars.
Effort reports are prepared on a regular basis in accordance with University or sponsoring agency requirements.
Effort reports reflect actual effort applied to sponsored programs, and not payroll distribution or appointment status unless it is identical to actual effort.
Effort reports are signed by the individual whose effort is being reported, or by someone with direct knowledge of the effort expended.
Grant funds are expended as authorized by the sponsoring agency and University rules.
Equipment purchases using grant funds are made in accordance with sponsoring agency and federal rules.
Change and Petty Cash Funds
Change funds are balanced daily to ensure cash equals the fund balance.
Change funds are audited on a regular, unannounced basis by an individual other than the fund custodian.
Employees are prohibited from using change funds to make loans (IOU’s), or to cash personal or payroll checks.
The change fund custodian reimburses the fund on at least a monthly basis through the University cashier for any ‘overs’ or ‘shorts’ accumulated during the month.
Change funds are kept locked in a secure location except when being used to accept funds or transact business (i.e., a locked drawer out of public view during business hours).
The change fund authorized balance is assessed at least annually for the appropriateness of the assigned fund (e.g., not too large or too small.)
The department has documented accounts receivable policies and procedures.
The Controller’s Office and Bursar’s Office have approved the department policies, practices, and procedures for accounts receivable.
Accounts receivable collection and accounts receivable recording duties are performed by different individuals.
A summary of total cash received is reconciled to total cash posted on a daily basis.
Someone other than the accounts receivable clerk/processor approves credit memos or adjustments to accounts.
An edit report of all non-cash adjustments to accounts receivable is produced and reviewed monthly by someone other than the accounts receivable clerk/processor.
Accounts receivable are billed at least monthly.
An aging of accounts receivable is prepared at least monthly.
Follow-up actions and collection policies and procedures for delinquent accounts are documented.
The department has a documented policy for managing the write-off of delinquent accounts.
Accounts receivable referred to collection agencies are written off the active accounts receivable at the time of referral.
Write-offs of accounts receivable are approved by someone other than accounts receivable clerk/processor
Miscellaneous Department Operations
The department has an up-to-date organizational chart that depicts employees’ current responsibilities and reporting relationships.
The department has a policy detailing the delegation of duties when employees are absent.
The department maintains written job descriptions for each staff member and updates them as needed.
The department has processes in place to ensure that staff receive the training necessary to do their job to the best of their ability.
The department has periodic staff meetings in which relevant information is communicated within the unit.
Information Technology Management
Each person in the Department with system access is assigned a unique (not shared) user ID.
Staff members in the department keep their computer log-in I.D.’s and passwords secret.
Staff members log in to secure systems only under their own, unique I.D. and/or password.
Staff members change their passwords on a regular basis.
Files on personal computers in the department are backed-up on a regular basis and/or saved directly to a server.
The department, if applicable, maintains the appropriate individual/site licenses for each piece of program software that is installed or used on department personal computers.
Last updated: 4/6/2018