Office of the State Controller Self-Assessment of Internal Controls Purchasing/Accounts Payable Cycle Objectives and Risks Agency ____________________________ Year-End _________ Objectives All requests for goods and services are initiated Purchases from unauthorized and approved by authorized individuals, and are vendors. in accordance with budget and appropriation Purchases are in violation of a conflict guidelines. of interest policy. Purchases are not timely. Purchases not in accordance with budget and/or appropriations provisions. All purchase orders are based on valid, Payment in excess of optimum approved requests and are properly executed Quantities not adequate or in excess as to price, quantity and vendor. of need. All materials and services received agree with Payment for materials or services not the original orders. received. Damaged or missing goods not reported. All invoices processed for payment represent Payment based on improper price or goods and services received and are accurate terms. as to terms, quantities, prices and extensions; Accounting distribution of cost is account distributions are accurate and agree inaccurate. with established account classifications. All checks are prepared on the basis of Incorrect or duplicate payments. adequate and approved documentation, Alteration of checks. compared with supporting data and properly Disbursement for materials or services approved, signed and mailed. not properly documented or approved. All disbursement, accounts payable, Improper cash, accounts payable, and encumbrance transactions are promptly and encumbrance balances. accurately recorded as to and amount. All entries to accounts payable, reserve for Misstated financial statements. encumbrances, asset and expense accounts Misstated internal financial data. and cash disbursements are properly accumulated, classified and summarized in the accounts.
Office of the State Controller Self-Assessment of Internal Controls Purchasing/Accounts Payable Cycle Objectives and Risks Agency ____________________________ Year-End _________ Objectives All requests for goods and services are initiated and approved by authorized individuals, and are in accordance with budget and appropriation guidelines. Purchases from unauthorized vendors. Purchases are in violation of a conflict of interest policy. Purchases are not timely. Purchases not in accordance with budget and/or appropriations provisions. All purchase orders are based on valid, approved requests and are properly executed as to price, quantity and vendor. Payment in excess of optimum Quantities not adequate or in excess of need. All materials and services received agree with the original orders. Payment for materials or services not received. Damaged or missing goods not reported. All invoices processed for payment represent goods and services received and are accurate as to terms, quantities, prices and extensions; account distributions are accurate and agree with established account classifications. Payment based on improper price or terms. Accounting distribution of cost is inaccurate. All checks are prepared on the basis of adequate and approved documentation, compared with supporting data and properly approved, signed and mailed. Incorrect or duplicate payments. Alteration of checks. Disbursement for materials or services not properly documented or approved. All disbursement, accounts payable, encumbrance transactions are promptly and accurately recorded as to and amount. Improper cash, accounts payable, and encumbrance balances. All entries to accounts payable, reserve for encumbrances, asset and expense accounts and cash disbursements are properly accumulated, classified and summarized in the accounts. Misstated financial statements. Misstated internal financial data.
NCOSC_Risk_Assessment2009ICQ_SAUCC.docx