cash receipts flowchart
YES NO N/A Notes
Reference
PART A: This section to be completed by all applicable agencies.
CASH - Statutory References - CGS Sections 3-17, 3-112, 3-114, 4-32, 4-33, 4-37, and 4-69 to 4-107a.
Receipts
Segregation of Duties
1. Are the employees who perform collection and deposit preparation functions different individuals than those responsible for recording cash receipts and general ledger entries? ______ ______ ______ ______
2. Is incoming mail opened and are receipts listed by persons that have no access to cash receipts or accounts receivable records? ______ ______ ______ ______
3. Is the listing of mail receipts compared to cash receipts records (CO-39) and authenticated copies of deposit slips by an employee that has no access to cash? ______ ______ ______ ______
4. Are responsibilities for cash receipts functions separate from those for disbursements? ______ ______ ______ ______
5. Are responsibilities for entries in the cash receipt records segregated from those for general ledger entries? ______ ______ ______ ______
6. If EDP is used, is there segregation of duties within processing activities? ______ ______ ______ ______
Procedural Controls
Collections
7. Are all receipts deposited in a timely manner, preferably daily? (Pursuant to CGS 4-32). ______ ______ ______ ______
8. Are the collection, deposit, and recording of receipts in the accounting records segregated at each collection point? ______ ______ ______ ______
9. Are prenumbered cash receipts prepared and customers' remittance data and other supporting documentation attached? ______ ______ ______ ______
10. Do adequate physical controls exist over cash receipts from opening mail to bank deposit? ______ ______ ______ ______
11. Is there timely remittance of cash receipts from collection points to general accounting unit? ______ ______ ______ ______
12. Is a comparison of daily reported receipts conducted on a test basis to bank statements to verify timeliness of deposits? ______ ______ ______ ______
13. Are receipts deposited intact on a daily basis and are collection documentation totals compared to bank deposits and postings to cash receipts journals? ______ ______ ______ ______
14. Is a restrictive endorsement placed on incoming checks as soon as they are received? ______ ______ ______ ______
15. Are "not sufficient funds" (NSF) checks delivered to someone independent of processing and recording of cash receipts? ______ ______ ______ ______
16. Do procedures exist for follow-up of NSF checks? ______ ______ ______ ______
17. Are post-dated checks, disputed items, unidentified receipts, NSF checks, checks charged back by banks, and similar items subject to normal receipts controls, and received and investigated by persons independent of preparation of deposits and posting of accounts receivable detail? ______ ______ ______ ______
18. Do controls exist to ensure that checks are returned promptly for deposit if checks received are used as a source document to post taxpayer or customer accounts?
(Note: OSC and OPM do not recommend using checks as a source document.)
______ ______ ______ ______
19. Are over the counter receipts controlled by cash register, prenumbered receipts, or other equivalent methods? ______ ______ ______ ______
20. Are such receipts accounted for and balanced to collections on a daily basis? ______ ______ ______ ______
21. Do facilities exist for protecting undeposited cash receipts? ______ ______ ______ ______
cash disbursements flowchart

Statutory References - CGS Sections 3-112, 3-114, 3-117, 4-32, 4-33

Disbursements

1. Are responsibilities for disbursement preparation and disbursement approval functions segregated from those for recording or entering cash disbursements information in the general ledger? ______ ______ ______ ______
2. Are responsibilities for the disbursement approval functions segregated from those for disbursement, voucher preparation, and purchasing? ______ ______ ______ ______
3. Are all supporting documents properly canceled at time of signature to prevent duplicate payment? ______ ______ ______ ______
4. Are all checks, disbursement vouchers, or check requests approved for payment by the check signer or other responsible employee? ______ ______ ______ ______
5. Are checks recorded in a disbursements journal as prepared? ______ ______ ______ ______
6. Except for petty cash, are all disbursements (including payroll) made by check? ______ ______ ______ ______
7. (For Paperless Processing Agencies) Do procedures exist that provide for immediate notification to OSC when those who authorize payment leave the unit or are otherwise no longer authorized to sign? ______ ______ ______ ______
8. Do employees preparing payment transactions compare all data on voucher and support documents to check payment detail? ______ ______ ______ ______
9. Are invoices and supporting documents furnished to the authorizer coincident with payment approval? ______ ______ ______ ______
10. Is a payment to be made to cash or bearer prohibited? ______ ______ ______ ______
11. Are payments recorded in the disbursements journal as prepared? _____ ______ ______ ______
Expenditure Control
12. Are encumbrances (commitments) and the B-107 allotment process used to control expenditures and commitments? ______ ______ ______ ______
13. Is approval as to the availability of funds by the business office or finance/accounting department received before issuance of a purchase order or expenditures commitment? ______ ______ ______ ______
14. Do controls exist to ensure knowledge of outstanding encumbrances, if used? ______ ______ ______ ______
15. Is there timely notification of expenditures or potential obligations in excess of appropriations or budget? ______ ______ ______ ______
Detail Accounting
16. Do procedures exist that ensure that disbursements are recorded accurately and promptly? ______ ______ ______ ______
17. Do procedures exist for authorizing and recording interbank and interfund transfers that provide for proper accounting for those transactions, including electronic fund transfers? ______ ______ ______ ______

CASH PART B: This section to be completed by central administrative agencies, those with activity and welfare funds, and other agencies that operate checking accounts.

Segregation of Duties

18. Are responsibilities for preparing and approving bank account reconciliations segregated from those for other cash receipt or disbursement functions? ______ ______ ______ ______
Disbursements
19. For independent authorities and others with independent disbursement authority, are authorized check signers independent of:
a) Voucher preparation and approval for payment? ______ ______ ______ ______
b) Check preparation, cash receiving, and petty cash? ______ ______ ______ ______
c) Purchasing and receiving? ______ ______ ______ ______
d) Handling of payroll? ______ ______ ______ ______
20. Are checks prenumbered and used in sequence? ______ ______ ______ ______
21. Are there controls over check signing machine signature plates and usage? ______ ______ ______ ______
22. Do procedures exist that provide for immediate notification to banks when check signers leave the unit or are otherwise no longer authorized to sign? ______ ______ ______ ______
23. Do employees preparing checks compare all data on voucher and support documents to check payment detail? ______ ______ ______ ______
24. Are invoices and supporting documents furnished to the signer coincident with check signing? ______ ______ ______ ______
25. Are limits set on amounts that can be paid by facsimile signatures? ______ ______ ______ ______
26. Are two signatures and/or manual signatures required on checks over a stated amount? ______ ______ ______ ______
27. When not in use, are signature plates maintained in the custody of the person whose facsimile signature is on the plate? ______ ______ ______ ______
28. Are plates used only under the signer's control and is the recording machine read by the signer or an appropriate designee to ascertain that all checks signed are properly accounted for by comparison to document control totals? ______ ______ ______ ______
29. Are signed checks delivered directly to the mail room making them inaccessible to the persons who requested, prepared, or recorded them? ______ ______ ______ ______
30. Is the drawing of checks to cash or bearer prohibited? ______ ______ ____________
31. Are checks recorded in the disbursements journal as prepared? ______ ______ ______ ______
32. Is signing blank checks forbidden? ______ ______ ______ ______
Custody
33. Are controls exercised over the supply of unused or voided checks? ______ ______ ______ ______
34. Is there a specified custodian for blank check stocks? ______ ______ ______ ______
35. a. Are all accounts properly authorized? ______ ______ ______ ______
b. Is the proper bank account establishment request form (CO-929) used? ______ ______ ______ ______
36. Are depositories periodically reviewed and reauthorized? (This should be done through the Office of the State Treasurer using the bank account identification form). ______ ______ ______ ______
37. Are controls and physical safeguards, including imprest procedures, exercised over working (petty cash) funds? ______ ______ ______ ______
38. Has appropriate fidelity insurance been secured? ______ ______ ______ ______
39. Are separate bank accounts maintained for each fund, or if not, are adequate fund controls used over pooled cash? ______ ______ ______ ______
General Ledger
40. Is there general ledger control over all bank accounts? ______ ______ ______ ______
41. Are bank statements and canceled checks delivered directly in unopened envelopes to the employee responsible for bank reconciliations? ______ ______ ______ ______
42. Are procedures that are essential to an effective reconciliation used, including:
a. Completed bank reconciliations reviewed by a responsible official? ______ ______ ______ ______
b. Monthly comparison of checks in appropriate detail to disbursement records? ______ ______ ______ ______
c. Examination of signature and endorsements, at least on a test basis, noting any alterations? ______ ______ ______ ______
d. Accounting for numerical sequence of checks used? ______ ______ ______ ______
e. Comparison of bank balances used in reconciliations with general ledger accounts? ______ ______ ______ ______
43. a. Are all reconciliations and investigation of unusual reconciling items reviewed and approved of by an official who is not responsible for receipts and disbursements? ______ ______ ______ ______
b. Is there recorded evidence of the review and approval by signing the reconciliation? ______ ______ ______ ______
44. Is there periodic investigation of old outstanding checks (i.e., over 90 days)? ______ ______ ______ ______
DO NOT WRITE IN THIS BOX --AUDITORS USE ONLY

Preliminary opinion on the above Internal Control matters:
Cash

Good Fair Poor

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