Seal of the Office of the State Comptroller

MEMORANDUM NO. 98-6

February 17, 1998

TO THE HEADS OF ALL STATE AGENCIES

ATTENTION: Commissioners, Chief Financial Officers and Business Managers
SUBJECT: Annual Completion of Internal Control Self-Assessment
  1. PURPOSE

    The purpose of this memorandum is to remind agencies to conduct an annual internal control self-assessment as required by Accountability Directive Number 1 (Revised).

  2. INTERNAL CONTROL SELF-ASSESSMENT

    An internal control self-assessment must be completed by June 30 and kept on file at the agency. Each agency is required to complete the internal control questionnaire in the Accountability Directive Number 1 (Revised) issued in December 1996.

    Due to changes in the Federal Single Audit Act and related regulations promulgated by the Office of Management and Budget, it is no longer necessary for agencies to give written notification to the Auditors of Public Accounts when they have completed their annual internal control self-assessments. Similarly, the Auditors of Public Accounts will no longer be contacting agencies requesting that copies of these self-assessment questionnaires be sent to them. Instead the Auditors of Public Accounts will review these self-assessment questionnaires, for compliance with the provisions of Accountability Directive Number 1, as part of their regularly scheduled audits of State agencies.

  3. INSTRUCTIONS FOR COMPLETION

    Each year, before June 30, agencies have a responsibility to complete the checklist of internal control evaluation questions. The review of these questions is to be documented by a report noting any weaknesses with recommendations for solutions. Whenever remedial action is required, the agency should prepare and implement an action plan to correct the deficiency. Agencies should review the prior year's completed internal control questionnaire and record any changes to the questionnaire. A photocopy can be used or the applicable section of the questionnaire can be printed from the Comptroller's Home Page. (Under Comptroller's Manuals-select Accountability Directive Number 1).

    The changes to the applicable sections are to be filed with the internal control self-evaluation file at the agency and made available to those auditors who visit the site and upon request by the Auditors of Public Accounts. Agencies must also document if no changes to the questionnaire have occurred.

  4. FOR QUESTIONS OR ASSISTANCE

    The Office of the State Comptroller, the Office of Policy and Management and the Auditors of Public Accounts are committed to providing assistance to agency personnel to aid in the completion of the internal control self-assessment. If you have any questions or need additional information about the Accountability Directive or your agency's responsibilities in evaluating its internal control structure or need assistance in evaluating your agency internal control structure, please contact:

    Office of the State Comptroller, Policy Services Division, 860-702-3440 or Office of Policy and Management, Office of Finance, 860-418-6235 or Auditors of Public Accounts, 860-566-3648 x314

    Thank you for your cooperation.

 

NANCY WYMAN
STATE COMPTROLLER

NW:CH

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