YES          NO          N/A

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

   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.   Do procedures exist that provide for immediate notification to Core-CT when those who
         authorize payment leave the agency or are otherwise no longer authorized to sign?

   8.   Do employees preparing payment transactions compare all invoice data on voucher and
         supporting documents to Core-CT payment detail?

   9.   Are invoices and supporting documents furnished to the authorized payment approver? 

  10.   Is a payment 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?                   

 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 collections and 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?

 

    YES         NO          N/A

CASH PART B: This Section to be completed by central administrative agencies, those 
                           with trustee accounts, 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)   Invoice 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 invoice and support documents to 
        check payment detail?

24.   Are invoices and supporting documents furnished to the authorized check signer?

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 of 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?

 

     
     
     
     
     
     

        YES          NO          N/A

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.   Are all reconciliations and investigation of unusual reconciling items reviewed and approved 
        of by an official who is not responsible for receipts and disbursements?

44.   Is there periodic investigation of old outstanding checks (i.e., over 90 days)?

Comments:

DO NOT WRITE IN THIS BOX - AUDITORS USE ONLY

Preliminary opinion on the above Internal Control Matters:

Cash

Good          Fair          Poor