State Of Connecticut Accountability Directive Number 1 (Revised) State Agency Internal Control Questionnaire - Receivables and revenues
YES NO N/A Notes
Reference
This section should be completed only by agencies that collect revenues.
RECEIVABLES AND REVENUES
Statutory References - CGS-3-17, 3-112, 3-114, 4-32, 4-33, and 4-69
Segregation of Duties
1. Is the billing department completely separate from:
a. Usage measurement? ______ ______ ______ ______
b. Accounts Receivable? ______ ______ ______ ______
c. Collection functions? ______ ______ ______ ______
2. Are the responsibilities for maintaining detail accounts receivable records segregated from collections, general ledger posting, and all other cash functions? ______ ______ ______ ______
3. Are the collection, control, and deposit of funds activities segregated from maintaining accounting records? ______ ______ ______ ______
4. Are the responsibilities for entries in the cash receipts records segregated from those for general ledger entries? ______ ______ ______ ______
5. If EDP is used, is the principle of segregation of duties maintained within processing activities? ______ ______ ______ ______
Procedural Controls
License fees and permits
6. If annual payments are involved, do procedures exist to ensure that previous years' records are properly updated for new registrants and withdrawals? ______ ______ ______ ______
7. Are the updated records used as the basis for billing persons subject to payment? ______ ______ ______ ______
8. Are duties for initiating permit transactions segregated from those for account or collections?
9. Are current year receipts compared to those for prior years and reviewed by senior officials for explanations of variations.
Fines, forfeitures, and court fees
10. Are court and other records of payments due maintained and used as a basis for collections? ______ ______ ______ ______
11. Do procedures for control, issuance, and disposition of traffic violations exist to ensure that amounts due are assessed and collected? ______ ______ ______ ______
12. a. Do procedures exist for correlation of amounts collected with records of court proceedings? ______ ______ ______ ______
b. Are tickets for fines, arrests, etc. sequentially numbered revenues? ______ ______ ______ ______
Enterprise and other service revenues:
13. Are controls utilized that provide assurance that customer data base and, where appropriate, usage records are accurately maintained and amounts due are billed? ______ ______ ______ ______
14. If billing is based on usage, are service readings performed in a timely fashion? ______ ______ ______ ______
15. Are the assignments of meter readers rotated periodically? ______ ______ ______ ______
16. Do billing procedures provide for identification and investigation of unusual patterns of use? ______ ______ ______ ______
17. Are the duties for initiating billings segregated from those for accounting and collections? ______ ______ ______ ______
General
18. Is billing of taxes, special assessments and fees done in a timely fashion? ______ ______ ______ ______
19. Do procedures exist for revenue collection to ensure timely payment of amounts due? ______ ______ ______ ______
20. Are rates for taxes, fines, fees, and services periodically reviewed and approved by the proper governing body? ______ ______ ______ ______
21. Are programs of tax exemption or relief periodically reviewed and approved by the proper governing body? ______ ______ ______ ______
22. Are tuition rate schedules authorized by the appropriate governing body? ______ ______ ______ ______
23. Do procedures exist to ensure that the accounting department is notified in a timely manner when tax, service, or other billings or claims are prepared and rendered? ______ ______ ______ ______
24. Are numerical or batch-processing controls maintained over tax, fees, service, or other billings? ______ ______ ______ ______
25. Are controls maintained over the billing of miscellaneous revenues (for example, sidewalk replacement and tree removal assessments)? ______ ______ ______ ______
26. Do procedures exist to prevent the interception or alteration of billings or statements by unauthorized persons after preparation but before they are mailed? ______ ______ ______ ______
27. Is there prompt investigation of billings disputed by taxpayers or service recipients by an individual independent of receivables record keeping functions? ______ ______ ______ ______
28. Do controls exist that provide reasonable assurances that restricted revenues are expended only for restricted purposes? ______ ______ ______ ______
Collection
29. Do procedures exist so that incoming checks are restrictively endorsed as soon as received? ______ ______ ______ ______
30. Do procedures exist that provide reasonable assurances that interest and penalties are properly charged on delinquent taxes, fees, or charges for service? ______ ______ ______ ______
31. Do procedures exist that provide for the timely filing of liens on property for nonpayment of claims in all cases permitted by law? ______ ______ ______ ______
32. Are controls maintained surrounding the collection, timely deposit, and recording of collections in the accounting records for each collection location? ______ ______ ______ ______
33. Is there timely notice of cash receipts from separate collection centers to general accounting department? ______ ______ ______ ______
34. :
a. If payments are made in person, are receipts used for payment? ______ ______ ______ ______
b. Are they also used to account for and balance such receipts to collections ______ ______ ______ ______
35. Is there segregation and timely remittance of amounts collected on behalf of other governments? ______ ______ ______ ______
36. Do procedures exist for assuring timely receipt of taxes and fees collected by another unit of government, and reviewing such amounts for reasonableness? ______ ______ ______ ______
37. Are all non-routine entries and disputed items posted to receivable subsidiary ledgers and subject to the approval of a responsible official? ______ ______ ______ ______
38. Are individual accounts in all receivable ledgers periodically aged and reviewed? ______ ______ ______ ______
39. Are delinquent accounts reviewed and collection action taken on a regular basis? ______ ______ ______ ______
40. Are write-offs or other reductions of receivables authorized in accordance with applicable legal requirements and approved by responsible official who is not associated with detail receivable and cash functions? ______ ______ ______ ______
41. Do procedures exist that provide for the execution of all legal remedies to collect charged-off or uncollectible accounts, including tax sale of property, liens, etc.? ______ ______ ______ ______
42. Are credit balances reviewed by responsible officials before a refund is made? ______ ______ ______ ______
43. Are all refunds made by check? ______ ______ ______ ______
44. Are charge vouchers and/or credits authorized and transmitted to bookkeeping promptly? ______ ______ ______ ______
45. Are all credit memoranda prenumbered and reviewed and approved by a responsible official? ______ ______ ______ ______
Accounts Receivable Record keeping
46. Are controls maintained in the system that provide assurances that individual receivable records are posted only from authorized source documents? ______ ______ ______ ______
47. Are aggregate collections reconciled with postings to individual receivable accounts? ______ ______ ______ ______
48. Where appropriate (for example, in proprietary funds), are statements of account mailed regularly to all debtors or customers? ______ ______ ______ ______
49. Are periodic statements from outsiders or data resulting from independent requests by the State or County (e.g., brokers position listing, etc.) reconciled on receipt to detail records? ______ ______ ______ ______
General Ledger
50. Are trial balances of individual receivable accounts prepared regularly and reconciled? ______ ______ ______ ______
51. Are surprise counts of evidence of ownership periodically made and reconciled to detail records and other controls? ______ ______ ______ ______
52. Are receivable subsidiary ledgers (trial balances) balanced monthly to control accounts? ______ ______ ______ ______
53. Are aged accounts receivable balances periodically reviewed by supervisory personnel? ______ ______ ______ ______
54. Do procedures exist that provide for timely and direct notification of the accounting department of billings and collection activity? ______ ______ ______ ______
Intergovernmental Grant and Entitlement Monitoring Grants
55. Is responsibility properly fixed for specific grant activities? ______ ______ ______ ______
56. Is there a central grants monitoring activity? ______ ______ ______ ______
57. Are there procedures in the finance department to monitor compliance with:
a. Financial reporting requirements? ______ ______ ______ ______
b. Use of funds and other conditions in accordance with grant terms? ______ ______ ______ ______
c. Timely billing of amounts due under grants? ______ ______ ______ ______
58. Is accounting for grant activity separated from the accounting for locally funded activities? ______ ______ ______ ______
59. Does a system exist for obtaining grantor approval before incurring expenditures in excess of budgeted amounts or for unbudgeted expenditures? ______ ______ ______ ______
60. Is the processing grant revenues and disbursements under the same degree of controls applicable to the organization's other transactions (budget, procurement, etc.)? ______ ______ ______ ______
61. Are intergovernmental revenues consistently accrued each fiscal year in accordance with GAAP? ______ ______ ______ ______
62. Do subgrantee agreements include requirements that the subgrantee comply with primary grant agreement conditions as well as grantee's standards? ______ ______ ______ ______
63. Do reasonable procedures and controls exist to provide assurances of compliance with recipient eligibility requirements established by grants? ______ ______ ______ ______
64. Is an indirect cost allocation plan established and approved? ______ ______ ______ ______
65.. Has audit cognizance been established for rates generated by the plan? ______ ______ ______ ______
66. Are the reports issued to grantor agencies reconciled with the accounting records? ______ ______ ______ ______
Entitlements
67. Is the amount of funds received compared with the amount anticipated by a responsible official and are unusual variances investigated? ______ ______ ______ ______
68. Do procedures exist to ensure that funds received are expended in accordance with legal requirements and spending restrictions? ______ ______ ______ ______
69. Are any statistical or data reports that form the basis for revenue distribution reviewed by a responsible official before submission? ______ ______ ______ ______
Interfund Receivables and Payables
70. Are interfund receivables and payables balanced monthly? ______ ______ ______ ______
71. Are interfund receivables and payables classified as current and long-term as appropriate? ______ ______ ______ ______
72. Are interfund receivables and payables properly authorized? ______ ______ ______ ______
Other Receivables
73.
a. Are reimbursement claims are filed or bills prepared on a timely basis? ______ ______ ______ ______
b. Are claims or bills reviewed for accuracy by an individual other than the preparer? ______ ______ ______ ______
c. Are all receivables recorded in the records at the time a claim is filed or at the time service is billed? ______ ______ ______ ______
d. Is the receivable ledger reconciled to the general ledger periodically, preferably monthly? ______ ______ ______ ______
e. Are uncollectible receivables subject to approval by the governing body before being written off? ______ ______ ______ ______
f. Is a periodic review made of all uncollected items and is a report prepared for the governing body? ______ ______ ______ ______
g. Are credit balances in receivables properly reviewed and followed up? ______ ______ ______ ______
Notes Receivable
74.
a. Do acceptance, terms, renewals or extensions, write-offs, and release of collateral on notes require prior approval of a designated official or the governing body? ______ ______ ______ ______
b. Are detailed records of notes receivable maintained by designated employees separate from the physical custodianship for such notes? ______ ______ ______ ______
c. Are periodic physical counts made and reconciled to control notes receivable by personnel independent of custodial and recording functions? ______ ______ ______ ______
d. Is access to and responsibility for custody of notes and collateral vested in a designated employee? ______ ______ ______ ______
e. Is a schedule of notes delinquent as to interest or principal periodically prepared and reviewed by a responsible employee? ______ ______ ______ ______
f. Are reconciliations periodically prepared for income accrued on notes and compared with detailed records and interest rates? ______ ______ ______ ______
DO NOT WRITE IN THIS BOX --AUDITORS USE ONLY
Preliminary opinion on the above Internal Control matters:
Receivables and Revenues
Good Fair Poor

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