STATE OF CONNECTICUT
WILLIAM E. CURRY JR. COMPTROLLER	OFFICE OF THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	EDWARD J. FORAND JR. DEPUTY COMPTROLLER

MEMORANDUM NO. 93-32

October 1, 1993

TO THE HEADS OF ALL STATE AGENCIES

The Office of the State Comptroller is pleased to announce a new audit plan for the processing of expenditure documents. Effective October 1, 1993 expenditure documents will be post-audited using the same criteria previously used for pre-audit. Each claim sampled will be audited for legality, propriety,validity and completeness. The post-audit of expenditure documents will reduce the central processing time of documents since they will be reviewed after the claim is paid.

 

This change will reduce the processing time of claims received in this office by up to three business days for expenditure documents free of errors. Audit review of expenditure documents will be performed after payment has been issued.

I. AUTHORITY

Sections 3-112 "Powers and duties" and 3-117 "Claims against the state" of the Connecticut General Statutes prescribe that upon the settlement of any claim against the state, under procedures adopted by the comptroller, the comptroller shall draw an order on the treasurer for its payment.

II. AGENCY RESPONSIBILITY

With the change from a pre-audit to a post-audit environment in Central Accounts Payable, agencies will be responsible to ensure that uniform accounts payable procedures exist, supported by proper internal controls. Existing accounting and preparatory requirements as mandated by the State Accounting Manual (SAM) must be met.

 

Agencies should take steps to strengthen any existing weaknesses in internal control and provide additional controls to replace central pre-audit. An agency employee must certify the accuracy and completeness of expenditure documents; determine that the payment hasa receipt document and purchase order/contract; and ensure that the payment is made from an original vendor invoice, not a statement. THE COMPTROLLER'S OFFICE IS PLACING THE RESPONSIBILITY FOR OVERSIGHT OF ACCOUNTS PAYABLE ON THE AGENCY HEADS AND THEIR DESIGNATED REPRESENTATIVE.

 

Checks for payment of accounts payable claims will be issued based on certification by the agency. The accuracy, completeness and appropriateness of the claim will no longer be determined at the Comptroller's Central Accounts Payable Division before the claim is paid. In most instances, only after the check has been issued will a review be made.

III. MANAGEMENT REPORTING OF POST-AUDIT FINDINGS

Reports will be sent on a monthly basis to each State agency advising of any conditions found during the post audit. The first report will be issued in early November and sent to the Chief Fiscal Officer of each agency. The Central Accounts Payable Division will follow up on all conditions found. Non-compliance by a State agency may cause this office to revert the agency's processing of all expenditure documents to a pre-audit procedure, possibly slowing the issuance of checks to your vendors.

 

A compliance review at the agency's site will be conducted for serious or repeat offenses. This review will assess the materiality of weaknesses in the agency's internal control structure and the extent of compliance infractions.

IV. PRE-AUDIT PROCEDURES

All commitments will continue to be pre-audited. This examination will insure that the additional edits built into the accounting system will not hold up payments due to improper summarization of contractual information.

 

In addition, certain types of payments will be selected for pre-audit. Those payments selected for pre-audit will require immediate action for correction by the agency should a problem arise to avoid delaying payment.

V. CONCLUSION

Our office is committed to safeguarding State funds and expediting the processing of all vendor claims. This change in handling expenditure documents will aid State agencies in developing a better relationship with their vendors. State agencies have been given a greater role in the management of their financial resources with increased fiscal responsibilities.

VI. QUESTIONS

Any questions or concerns regarding this memorandum or the change in procedure may be directed to the Central Accounts Payable Division at 702-3423.

 

WILLIAM E. CURRY JR.
STATE COMPTROLLER

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