YES          NO          N/A

This section should be completed only by agencies that collect revenues.

RECEIVABLES AND REVENUES

Statutory References - CGS 3-17, 3-112, 3-114, 4-32, 4-33 and 4-69

Segregation of Duties

1.     Is the billing department completely separate from:

        a)     Usage measurement?

        b)     Accounts receivable?

        c)     Collection functions?

2.     Are the responsibilities for maintaining detail accounts receivable records segregated from 
        collections, general ledger posting, and all other cash functions?

3.     Are the collection, control, and deposit of funds activities segregated from maintaining 
        accounting records?

4.     Are the responsibilities for entries in the cash receipts records segregated from those for
        general ledger entries? 

5.     If EDP is used, is the principle of segregation of duties maintained within processing 
        activities?

Procedural Controls

        License fees and permits

6.     If annual payments are involved, do procedures exist to ensure that previous years' 
        records are properly updated for new registrants and withdrawals?

7.     Are the updated records used as the basis for billing persons subject to payment?

8.     Are duties for initiating permit transactions segregated from those for account or 
        collections?

9.     Are current year receipts compared to those for prior years and reviewed by senior 
        officials for explanations of variations?

        Fines, forfeitures, and court fees

10.   Are court and other records of payments due maintained and used as a basis for 
        collections?

11.   Do procedures for control, issuance, and disposition of traffic violations exist to ensure that 
        amounts due are assessed and collected?

12.   a) Do procedures exist for reconciliation of amounts collected with records of court 
            proceedings?

        b) Are tickets for fines, arrests, etc. sequentially numbered?

        Enterprise and other service revenues:

13.   Are controls utilized that provide assurance that customer data base and, where 
        appropriate, usage records are accurately maintained and amounts due are billed?

 

        YES          NO          N/A

14.   If billing is based on usage, are service readings performed in a timely fashion?

15.   Are the assignments of meter readers rotated periodically?

16.   Do billing procedures provide for identification and investigation unusual patterns of use?

17.   Are the duties for initiating billings segregated from those for accounting and collections?

       General:

18.   Is billing of taxes, special assessments and fees done in a timely fashion?

19.   Do procedures exist for revenue collection to ensure timely payment of amounts due?

20.   Are rates for taxes, fines, fees, and services periodically reviewed and approved by the 
        proper governing body?

21.   Are programs of tax exemption or relief periodically reviewed and approved by the 
        proper governing body?

22.   Are tuition rate schedules authorized by the appropriate governing body?

23.   Do procedures exist to ensure that the accounting department is notified in a timely 
        manner when tax, service, or other billings or claims are prepared and rendered?

24.   Are numerical or batch-processing controls maintained over tax, fees, service or other 
        billings?

25.   Are controls maintained over the billing of miscellaneous revenues (for example, 
        sidewalk replacement and tree removal assessments)?

26.   Do procedures exist to prevent the interception or alteration of billings or statements by 
        unauthorized persons after preparation but before they are mailed?

27.   Is there prompt investigation of billings disputed by taxpayers or service recipients by 
        an individual independent of receivables record keeping functions?

28.   Do controls exist that provide reasonable assurances that restricted revenues are 
        expended only for restricted purposes?

        Collection:  

29.   Are checks restrictively endorsed when received (at mail opening, or upon receipt for 
        "walk-ins")?

30.   Do procedures exist that provide reasonable assurances that interest and penalties 
        are properly charged on delinquent taxes, fees, or charges for service?

31.   Do procedures exist that provide for the timely filing of liens on property for 
        nonpayment of claims in all cases permitted by law?

32.   Are controls maintained surrounding the collection, timely deposit, and recording of 
        collections in the accounting records for each collection location?

33.   Is there timely notice of cash receipts from separate collection centers to the general 
        accounting department?

34.   a) If payments are made in person, are receipts used for payment?

         b) Are they also used to account for and balance such receipts to collections?

 

        YES          NO          N/A

35.   Is there segregation and timely remittance of amounts collected on behalf of other 
        governments?

36.   Are revenues collected on behalf of the State by other units of government or private 
        businesses promptly remitted and subjected to reviews for reasonableness?

37.   Are all non-routine entries and disputed items posted to receivable subsidiary ledgers 
        and subject to the approval of a responsible official?

38.   Are accounts receivable aged regularly with appropriate accounts sent to debt collection 
        and/or intercept?

39.   Is upper management promptly notified when accounts are deemed uncollectible?

40.   Are write-offs or other reductions of receivables authorized in accordance with applicable
        legal requirements and approved by a responsible official who is not associated with detail     
        receivable and cash functions?

41.   Do procedures exist that provide for the execution of all legal remedies to collect 
        charged-off or uncollectible accounts, including tax sale of property, liens, etc.?

42.   Are credit balances reviewed by responsible officials before a refund is made?

43.   Are all refunds made by check?

44.   Are charge vouchers and/or credits authorized and transmitted to bookkeeping promptly?

45.   Are all credit memoranda prenumbered and reviewed and approved by a responsible 
        official?

        Accounts Receivable Recordkeeping

46.   Are controls maintained in the system that provide assurances that individual receivable 
        records are posted only from authorized source documents?

47.   Are aggregate collections on accounts receivable reconciled against postings to 
        individual receivable accounts?

48.   Where appropriate (for example, in proprietary funds), are statements of account mailed 
        regularly to all debtors or customers?

        General Ledger

49.   Are trial balances of individual receivable accounts prepared regularly?

50.   Are surprise counts of evidence of ownership periodically made and reconciled to detail 
        records and other controls?

51.   Are receivable subsidiary ledgers (trial balances) balanced monthly to control accounts?

52.   Do procedures exist that provide for timely and direct notification of the accounting 
        department of billings and collection activity?

       Intergovernmental Grant and Entitlement Monitoring Grants

53.   Is responsibility properly fixed for specific grant activities?

54.   Is there central monitoring of grants?

 

        YES          NO          N/A

55.   Are there procedures in the finance department to monitor compliance with:

        a) Financial reporting requirements?

        b) Use of funds and other conditions in accordance with grant terms?

        c) Timely billing of amounts due under grants?

56.   Is accounting for grant activity separated from the accounting for locally funded activities?

57.   Does a system exist for obtaining grantor approval before incurring expenditures in 
        excess of budgeted amounts or for unbudgeted expenditures?

58.   Is the processing of grant revenues and disbursements under the same degree of 
        controls applicable to the organization's other transactions (budget, procurement, etc.)?

59.   Are intergovernmental revenues consistently accrued each fiscal year in accordance with    
        GAAP?

60.   Do subgrantee agreements include requirements that the subgrantee comply with primary 
        grant agreement conditions as well as the grantee's standards?

61.   Do reasonable procedures and controls exist to provide assurances of compliance with 
        recipient eligibility requirements established by grants?

62.   Is an indirect cost allocation plan established and approved?

63.   Has the indirect cost allocation plan been approved?

64.   Has audit cognizance been established for rates generated by the plan?

65.   Are the reports issued to grantor agencies reconciled with the accounting records?

        Entitlements

66.   Is the amount of funds received compared with the amount anticipated by a responsible 
        official and are unusual variances investigated?

67.   Do procedures exist to ensure that funds received are expended in accordance with legal 
        requirements and spending restrictions?

68.   Are any statistical or data reports that form the basis for revenue distribution reviewed by a 
        responsible official before submission?

        Interfund Receivables and Payables

69.   Are interfund receivables and payables balanced monthly?

70.   Are interfund receivables and payables classified as current and long-term as appropriate?

71.   Are interfund receivables and payables properly authorized?

       Other Receivables 

72.   a) Are reimbursement claims filed or bills prepared on a timely basis?

        b) Are claims or bills reviewed for accuracy by an individual other than the preparer?

        c) Are all receivables recorded in the records at the time a claim is filed or at the time 
            service is billed?

 

     
     
     
     
     

        YES          NO          N/A

        d) Is the receivable ledger reconciled to the general ledger periodically, preferably 
            monthly?

        e) Are uncollectible receivables subject to approval by the governing body before being 
            written off?

         f) Is a periodic review made of all uncollected items and is a report prepared for the 
             governing body?

        g) Are credit balances in receivables properly reviewed and followed up?    

            Notes Receivable

73.   a) Do acceptance, terms, renewals or extensions, write-offs, and release of collateral on 
            notes require prior approval of a designated official or the governing body?

        b) Are detailed records of notes receivable maintained by designated employees separate 
            from the physical custodianship for such notes?

       c) Are periodic physical counts made and reconciled to control notes receivable by 
           personnel independent of custodial and recording functions?

       d) Is access to and responsibility for custody of notes and collateral vested in a designated 
           employee?

       e) Is a schedule of notes delinquent as to interest or principal prepared and reviewed by a 
           responsible employee?

      f) Are reconciliations periodically prepared for income accrued on notes and compared with 
         detailed records and interest rates? 

 Comments:         

DO NOT WRITE IN THIS BOX - AUDITORS USE ONLY

Preliminary opinion on the above Internal Control Matters:

Receivables and Revenues

Good          Fair          Poor