||STATE OF CONNECTICUT
|WILLIAM E. CURRY JR.
THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
|EDWARD J. FORAND
MEMORANDUM NO. 93-32
October 1, 1993
TO THE HEADS OF ALL STATE AGENCIES
||Chief Administrative and Fiscal Officers, Business Managers, and Payroll and Personnel
||Central Accounts Payable Post Audit Procedure for Expenditure Documents
- 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.
- 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
- 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.
- 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
- 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.
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