property control flowchart

YES NO N/A Notes
Reference
PART A: This section to be completed by all applicable agencies.
PROPERTY
Statutory References - CGS 4-33a and 4-36
Segregation of Duties
1. Are responsibilities for initiating, evaluating, and approving capital expenditures, leases, and maintenance or repair projects segregated from those for project accounting, property records, and general ledger functions? ______ ______ ______ ______
2. Are responsibilities for maintaining detail records or subsidiary ledgers for capitalized assets segregated from those for general ledger, cash, purchasing, payable, and capital expenditure authorizing functions? ______ ______ ______ ______
3. Are responsibilities for initiating capitalized asset transactions segregated from those for final approvals that commit funds? ______ ______ ______ ______
4. Are responsibilities for the custodial function segregated from the project accounting and property records functions? ______ ______ ______ ______
5. Are responsibilities for the project accounting and property records functions segregated from the general ledger function? ______ ______ ______ ______
6. Are responsibilities for the periodic physical inventories of capitalized assets assigned to responsible officials who have no custodial or record keeping responsibilities? ______ ______ ______ ______
7. If EDP is used, is the principle of segregation of duties maintained within processing activities? ______ ______ ______ ______
Procedural Controls
Authorization:
8. Are those individuals who are authorized to initiate capitalized asset transactions clearly identified and are the limits of their authority clearly defined? ______ ______ ______ ______
9. Are guidelines with respect to key considerations such as prices to be paid, acceptable vendors and terms, asset quality standards, and the provisions of grants or bonds that may finance the expenditures clearly established? ______ ______ ______ ______
10. Is a separate capital projects budget prepared? ______ ______ ______ ______
Executive or Legislative Approval:
11. Is written executive or legislative approval required for all significant capital assets projects or acquisitions? ______ ______ ______ ______
12. Do procedures exist for authorizing, approving, and documenting sales or other dispositions of capital assets? ______ ______ ______ ______
13. Do procedures exist for approving decisions regarding financing alternatives and accounting principles, practices, and methods? ______ ______ ______ ______
14. Do procedures provide for obtaining grantor (federal/state) approval, if required, for the use of grant funds for capital asset acquisitions? ______ ______ ______ ______
15. Are grant-funded acquisitions subjected to the same controls as internally funded acquisitions? ______ ______ ______ ______
16. Are supplemental authorizations required, including those of the grantor agency, if appropriate, for expenditures in excess of originally approved amounts? ______ ______ ______ ______
Asset Accountability:
17. Are detailed property records maintained for all self-constructed, donated, purchased, or leased capitalized assets? ______ ______ ______ ______
18. Is accountability established for each asset? ______ ______ ______ ______
19. Do procedures exist for the periodic inventory of documents that evidence property rights (e.g., deeds, leases, and the like)? ______ ______ ______ ______
20. Are reviews and appraisals made periodically for insurance considerations? ______ ______ ______ ______
21. Are items adequately safeguarded from loss due to fire, theft or misplacement? ______ ______ ______ ______
22. Do procedures exist that ensure that materials, services and repair projects paid for by capital expenditures are subjected to the same levels of controls as for all other procurements (for example, receiving, approval, checking)? ______ ______ ______ ______
23. Are detailed property records and physical counts compared periodically and records adjusted to reflect shortages? ______ ______ ______ ______
24. Are differences between records and physical counts investigated and records adjusted to reflect shortages? ______ ______ ______ ______
25. Do procedures exist to ensure that capitalized assets are adequately insured? ______ ______ ______ ______
26. Are the titles of sites, buildings, vehicles, etc., held in name of the proper authority? ______ ______ ______ ______
27. Are lease transactions subject to control procedures similar to those required for other capital expenditures? ______ ______ ______ ______
28. Is equipment properly identified by metal numbered tags or other means of positive identification and is an inventory conducted on a systematic basis? ______ ______ ______ ______
29. Do procedures exist for identifying and monitoring the appropriate disposition of property? ______ ______ ______ ______
30. Are custodians of property required to report any changes in the status thereof (i.e., transfers, sales, scrapping, obsolescence, or excess)? ______ ______ ______ ______
General Ledger:
31. Are detailed property records reconciled periodically with the general ledger control accounts? ______ ______ ______ ______
32. Do procedures and policies exist to:
a. Distinguish between capital project fund expenditures and operating budget expenditures? ______ ______ ______ ______
b. Distinguish between capital and operating leases? ______ ______ ______ ______
c. Differentiate between capitalizable additions, freight, installation costs, replacements and maintenance expenditures? ______ ______ ______ ______
33. Are accounting records promptly adjusted when capitalized assets are retired, sold, or transferred? ______ ______ ______ ______
PROPERTY PART B: This section to be completed by those agencies that handle project accounting.
Project Accounting:
1. Is a qualified employee or independent firm engaged to inspect and monitor technically complex projects? ______ ______ ______ ______
2. Are project cost records established and maintained for capital expenditure and repair projects? ______ ______ ______ ______
3. Do reporting procedures exist for in-progress and completed projects? ______ ______ ______ ______
4. If construction work is performed by contractors, do procedures exist to provide for and maintain control over construction projects and program billings? ______ ______ ______ ______
5. Is the accounting distribution reviewed to ensure proper allocation of charges to fixed asset and expenditure projects? ______ ______ ____________
6. Do procedures exist to identify completed projects so that timely transfers can be made to the appropriate accounts? ______ ______ ______ ______
7. Does the agency have the right to audit contractors' records? ______ ______ ______ ______
8. Is the right to audit contractor records executed during project performance? ______ ______ ______ ______
9. In addition to costs, is the audit of contractor conducted in compliance with EEO, Davis Bacon, and other regulations and contract terms? ______ ______ ______ ______
PROPERTY PART C: This section to be completed by those agencies that must depreciate assets.
Asset Accountability:
1. Are fully depreciated assets carried in the accounting records as means of providing accounting control? ______ ______ ______ ______
2. For depreciable property:
a. Are estimated lives and methods of depreciation initially reviewed and authorized by a responsible official or employee? ______ ______ ____________
b. Is the computation of depreciation reviewed by a responsible official or employee? ______ ______ ______ ______
c. Are estimated lives periodically reconsidered by a responsible official or employee for adequacy based on actual experience? ______ ______ ______ ______
3. Do procedures and policies exist to govern depreciation methods and practices? ______ ______ ______ ______
4. a. If costs are expected to be charged against federal grants, are depreciation policies or methods of computing allowances in accordance with the standards outlined in OMB circulars or grantor agency regulations? ______ ______ ______ ______
b. If not, is adjusting depreciation charged to grants appropriately? ______ ______ ______ ______
DO NOT WRITE IN THIS BOX --AUDITORS USE ONLY
Preliminary opinion on the above Internal Control matters:
Property
Good Fair Poor

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