||STATE OF CONNECTICUT
THE STATE COMPTROLLER
55 ELM STREET
MEMORANDUM NO. 2014-11
June 16, 2014
TO THE HEADS OF ALL STATE AGENCIES
Chief Administrative and Fiscal Officers, and Business
Procedural changes to post-audit of vouchers and
pre-audit of certain purchase orders.
- To provide State agencies with information regarding the changes to post audit
document selection and workflow for pre-audit of certain purchase orders.
- Connecticut General Statute 4-98
Post-Audit document selection
- The number of transactions selected for post audit will be determined based on
three criteria, overall statistical sample size, the volume of processed
transactions, and the results from previous period audits. Based on these items,
the Accounts Payable Division (OSC APD) will request 10, 15, or 20 documents
from the agency at the beginning of the month. This change will be effective
beginning August 1, 2014, for vouchers paid in July, 2014.
While the number of transactions selected is determined by the criteria, the
actual documents are selected randomly. Although agencies are generally audited
once per quarter, an agency may be subject to additional audits should the error
rate remain at an unacceptable level.
- There will be no additional changes to the procedure. Agencies
will continue to be provided with a list of randomly selected vouchers and have
five business days to submit the required supporting documentation.
Audit of purchase orders of $1,000,000.00 or more
- Comptroller's Memorandum 2004-6 introduced the pre-audit requirement for
purchase orders of $1 million or more. Effective July 1, 2014, requisition and
purchase order workflow in Core-CT will include an OSC approval group for
requisitions and purchase orders where the encumbered amount equals or exceeds
$1 million. This workflow approval group will also apply to certain change
orders which will bring the encumbered total to that threshold. While the only
change orders that require pre-audit are those that change the terms and
conditions i.e., time period, increase/decrease to obligation amount, name
change etc., workflow functionality will still require OSC APD approval when the
encumbered amount is $1 million or more. A comment on the PO approval page must
be added denoting the reason the change order is needed. Purchase order
amendments that do not require pre-audit will be approved by OSC APD for
workflow purposes only and will not be pre-audited. This will be noted in the
comments by OSC APD when approved.
- Purchase orders with an obligated amount of $1 million or more where the
encumbered amount is less than $1 million will not automatically route to OSC
APD for workflow approval. In this situation it is the agencies' responsibility
to submit a request for approval to email@example.com including the business unit
and purchase order number. Please include "PO approval request" in the subject
line. The agency may not transact against this purchase order until approval is
received from OSC APD.
- Proper supporting documentation is required for the pre-audit of purchase orders
and change orders. If the purchasing authority is a DAS contract award no
additional documentation is required. If the purchasing authority is an agency
contract, the agency should ensure that the contract is scanned and attached to
the contract record in Core-CT per Core-CT daily mail dated 10/9/2013, subject:
New Procedure for Electronic Contract Documentation.
- Questions regarding this memorandum may be directed to the Accounts Payable
Division of the Comptroller's Office at firstname.lastname@example.org or (860) 702-3393.
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