YES          NO          N/A

PART A: This section should be completed by all applicable agencies.

               Statutory References - CGS 3-25, 3-112, 3-117, 4-69, 4-86, 4-89, 4a-71

PAYABLES (Payments)

         Invoice Processing:

1.     Are there invoice processing procedures that ensure that:           

        a) Copies of purchase orders and receiving reports are received directly from issuing 
            departments? 

        b) Invoice quantities, prices, and terms are compared with those indicated on the purchase 
            order?

        c) Invoice quantities are compared with those indicated on receiving reports?

        d) Accuracy of calculations is checked, as appropriate?

 2.     a) Are all copies of vendors' invoices:  

              1.     Routed directly to accounting from the mail room?

              2.     Duplicate invoices are destroyed or stamped to indicate that they are duplicates?            

        b) Are original vendors' invoices:

              1.     Invoiced and listed/recorded in an invoice/purchases register immediately on
                      receipt?

              2.     Maintained in the accounting department and only copies distributed when 
                      required?         

3.     Do procedures exist to ensure that the accounts payable system is properly 
        accounting for unmatched receiving reports and invoices?        

4.     Do procedures exist for processing invoices that do not involve materials or supplies
        (for example, lease or rental payments, utility bills)?         

5.     Do procedures exist to ensure accurate account distribution of all entries resulting from 
        invoice processing?      

6.     Is access to EDP master vendor file limited to employees authorized to make changes? 

 

        YES          NO          N/A

7.     Does the accounting department maintain a current list of those authorized to 
        approve expenditures?

8.     Do procedures exist for submission and approval of reimbursement to employees for 
        travel and other expenses?   

9.     Is control established by the accounting department over invoices received before 
        releasing them for departmental approval and other processing?

10.   Do procedures exist to ensure that payments are charged against the program to which
        they relate and not charged against the program most able to bear the cost?

11.   Are invoices (vouchers) reviewed and approved for completeness of supporting 
        documents and required accuracy checking by appropriate personnel?

12.   In processing the invoice and related payable:

        a) Are all data checked against approved copies of the purchase order and receiving 
            report?

        b) Are all extensions, footings, discounts, and freight terms checked for accuracy as 
            required by established policy?

        c) Is the performance of (a) and (b) clearly indicated on the face of the invoice?

13.   Are payments made only on the basis of original invoices?

14.   Is responsibility fixed for seeing that all cash discounts are taken and, if applicable, that 
        exemptions from sales, federal excise, and other taxes are claimed?

15.   Are differences in invoice and purchase order price, terms, shipping arrangements, or 
        quantities referred to purchasing for review and approval?

16.   Are partial deliveries recorded and followed up by the accounting department?

17.   Are the accounting and purchasing departments promptly notified of returned purchases 
        and are such purchases correlated with vendor credit advances?

18.   Are debit memos for returned goods, shortages, etc.:

        a) Issued only on receipt of proper authorization?

        b) Controlled numerically?

19.   Are vendor debit balances periodically reviewed and collected?

20.   Are the program and expenditure accounts to be charged reviewed for propriety and 
        budget conformity?

21.   Do responsible officials determine that restricted revenues are expended only for 
        restricted purposes?

22.   If applicable, do procedures exist to ensure that the reserve for encumbrances 
        (obligations) is adjusted when invoices are prepared for payment? 

 

        YES          NO          N/A

 Accounts Payable and Encumbrances:

 23.   Is there a monthly reconciliation of outstanding purchase orders to the reserve for 
         encumbrances?

 24.   Is the recording of encumbrance entries based only on approved purchase orders?

 25.   Do procedures exist to ensure that accounts payable and encumbrances are applied 
         against the appropriate account?

 26.   Do procedures exist to ensure that department heads are notified of the payments 
         made against accounts payable and encumbrances?

        Common Ledger:

27.   Are trial balances of reserve for encumbrances and accounts payable prepared regularly?

 28.   Are posting transactions between funds in all affected funds done in the same 
         accounting period and on a timely basis?

         Purchasing:

 29.   Are policies regarding conflicts of interest and business practice policies (code of 
         conduct) established, documented, and distributed?

30.   Are procedures for issuing and approving purchase orders and contracts established?

31.   Are bid and performance bonds considered when awarding construction contracts?

 32.   Are selection criteria predetermined for awarding personal service or construction 
         contracts and is adequate documentation of the award process required?

 33.   Are purchase prices reviewed periodically by a responsible employee independent of 
         the purchasing department?

 34.   Are recurring purchases reviewed periodically and is the justification for informal 
         rather than competitive bids documented?

 35.   Is a record of suppliers who have not met quality or other performance standards 
         maintained by the purchasing department?

 36.   If practicable, is there rotation of contract or purchasing officer's areas of responsibility
         on a regular basis?         

        Invoice Procedures:

 37.   Are requests for progress payments under long-term contracts related to contractor's 
         efforts and are they formally approved?

 

     
     
     

        YES          NO          N/A

PROCUREMENT AND PAYABLES PART B: This section to be completed only by agencies 
                                                                           that administer grants or entitlement payment.

        Grants and Contracts:

 1.     Are procedures modified when grant or loan agreements and related regulations 
         impose requirements that differ from the organization's normal policies?

 2.     Are procedures instituted to identify costs and expenditures not allowable under grant 
         (federal/state) program before orders are entered?

3.     Do contracts contain provisions for materials, services, or facilities acquired on other  
        than a fixed price basis and for an audit of contractors' costs, with payments subject 
        to audit results?

        Grant and Entitlement Monitoring:

4.     Are grants disbursed only on the basis of approved applications?

5.     Are reporting and compliance requirements defined (e.g., in regulations) and 
        communicated to grantees? 

6.     Do procedures exist to monitor grantee compliance with grant terms?

7.     Are the financial operations of grantees subject to periodic and timely audit?

8.     Does sufficiently timely monitoring of recipients exist to permit curtailment of any 
        abuse before complete funds disbursement?

9.     Are funds distributed to grantees only on an as needed basis?

10.   Is there a level of grant approval authority that appears appropriate?

11.   Is the failure by grantees to meet financial reporting requirements investigated on 
        a timely basis?

12.   Are grantees required to evidence correction of previously detected deficiencies 
        before approval of an extension or renewal of a grant?

13.   Do entitlement procedures exist to ensure that statistics or data used to allocate 
        funds are accurately accumulated (for example, census bureau forms)?

14.   Are statements of recipient compliance with entitlement conditions required to be 
        filed and are they reviewed by a responsible official?

15.   Are audited financial statements or other compliance requirements of entitlement 
        recipients reviewed on a timely basis and are unusual items investigated?

Comments:

DO NOT WRITE IN THIS BOX - AUDITORS USE ONLY

Preliminary opinion on the above Internal Control Matters:

Procurement and Payables

Good          Fair          Poor