COMPTROLLER'S SEAL STATE OF CONNECTICUT
STATE OF CONNECTICUT
OFFICE OF THE STATE COMPTROLLER
Kevin Lembo
State Comptroller
55 ELM STREET
HARTFORD, CONNECTICUT
06106-1775
Martha Carlson
Deputy Comptroller

MEMORANDUM NO. 2014-11

June 16, 2014

TO THE HEADS OF ALL STATE AGENCIES

Attention: Chief Administrative and Fiscal Officers, and Business Managers
Subject: Procedural changes to post-audit of vouchers and pre-audit of certain purchase orders.

I. PURPOSE

To provide State agencies with information regarding the changes to post audit document selection and workflow for pre-audit of certain purchase orders.

II. AUTHORITY

Connecticut General Statute 4-98

III. PROCEDURES

Post-Audit document selection

The number of transactions selected for post audit will be determined based on three criteria, overall statistical sample size, the volume of processed transactions, and the results from previous period audits. Based on these items, the Accounts Payable Division (OSC APD) will request 10, 15, or 20 documents from the agency at the beginning of the month. This change will be effective beginning August 1, 2014, for vouchers paid in July, 2014.

While the number of transactions selected is determined by the criteria, the actual documents are selected randomly. Although agencies are generally audited once per quarter, an agency may be subject to additional audits should the error rate remain at an unacceptable level.
There will be no additional changes to the procedure. Agencies will continue to be provided with a list of randomly selected vouchers and have five business days to submit the required supporting documentation.

Audit of purchase orders of $1,000,000.00 or more

Comptroller's Memorandum 2004-6 introduced the pre-audit requirement for purchase orders of $1 million or more. Effective July 1, 2014, requisition and purchase order workflow in Core-CT will include an OSC approval group for requisitions and purchase orders where the encumbered amount equals or exceeds $1 million. This workflow approval group will also apply to certain change orders which will bring the encumbered total to that threshold. While the only change orders that require pre-audit are those that change the terms and conditions i.e., time period, increase/decrease to obligation amount, name change etc., workflow functionality will still require OSC APD approval when the encumbered amount is $1 million or more. A comment on the PO approval page must be added denoting the reason the change order is needed. Purchase order amendments that do not require pre-audit will be approved by OSC APD for workflow purposes only and will not be pre-audited. This will be noted in the comments by OSC APD when approved.
Purchase orders with an obligated amount of $1 million or more where the encumbered amount is less than $1 million will not automatically route to OSC APD for workflow approval. In this situation it is the agencies' responsibility to submit a request for approval to osc.apdpa@ct.gov including the business unit and purchase order number. Please include "PO approval request" in the subject line. The agency may not transact against this purchase order until approval is received from OSC APD.
Proper supporting documentation is required for the pre-audit of purchase orders and change orders. If the purchasing authority is a DAS contract award no additional documentation is required. If the purchasing authority is an agency contract, the agency should ensure that the contract is scanned and attached to the contract record in Core-CT per Core-CT daily mail dated 10/9/2013, subject: New Procedure for Electronic Contract Documentation.

IV. QUESTIONS

Questions regarding this memorandum may be directed to the Accounts Payable Division of the Comptroller's Office at osc.apdpa@ct.gov or (860) 702-3393.


KEVIN LEMBO
STATE COMPTROLLER


KL:EM

Return to Index of 2014 Comptroller's Memoranda
Return to Comptroller's Home Page