records all purchases on credit for and services of an organization. 9. General journal This is the journal – in which transactions not provided for in other specialized journals are recorded. b. Generally, any organization providing services under a Government project should have all of the accounting ledgers and journals delineated under 4.a. above. c. Organizations, which perform or expect to perform under Government projects, should have a project cost accounting system. b. Determine whether the of A project cost accounting system accumulates and account maintained are adequate for segregates by projects. This method of cost and suited for the organization’s accounting provides cumulative information business. relating to costs incurred by individual projects, thereby facilitating an efficient management and c. Determine whether the accounting control of project funds. system in use is adequate for the d. Costs recorded in the job cost ledger accumulation and segregation of should tie in with those recorded in the operating on a project-by-project basis. ledger and other accounting records. e. All attributed to a project should be supported by adequate documentation such as invoices, time or effort reports, etc. f. All organizations performing work under Government projects should have an individual(s) on their staff with the necessary educational and experience background in accounting to handle the Government project(s). Where there is no such individual(s), it is imperative that the organization d. Determine whether cost records are be made aware of the importance of possessing controlled by or periodically such expertise, to properly provide for adequate reconciled with the general books of financial management of government projects. account. g. It is good business policy for an e. Determine whether the accounting organization to have outside auditors to review and system provides for a reliable evaluate management business practices and the determination of costs. results of operations on a periodic basis. Additionally, outside auditors possess the f. Determine whether the prospective professional expertise to provide business awardee has an accountant to handle management services such as (a) installation and financial and business data. improvements of accounting systems, (b) strengthening of internal controls, (c) prDHSration and filing of tax returns, (d) bookkeeping services, (e) auditing services, etc. Review of outside auditors’ statements-as indicated elsewhere in this
b. Determine whether the of account maintained are adequate for and suited for the organization’s business. c. Determine whether the accounting system in use is adequate for the accumulation and segregation of on a project-by-project basis. d. Determine whether cost records are controlled by or periodically reconciled with the general books of account. e. Determine whether the accounting system provides for a reliable determination of costs. f. Determine whether the prospective awardee has an accountant to handle financial and business data. records all purchases on credit for and services of an organization. 9. General journal – This is the journal in which transactions not provided for in other specialized journals are recorded. b. Generally, any organization providing services under a Government project should have all of the accounting ledgers and journals delineated under 4.a. above. c. Organizations, which perform or expect to perform under Government projects, should have a project cost accounting system. A project cost accounting system accumulates and segregates by projects. This method of cost accounting provides cumulative information relating to costs incurred by individual projects, thereby facilitating an efficient management and control of project funds. d. Costs recorded in the job cost ledger should tie in with those recorded in the operating ledger and other accounting records. e. All attributed to a project should be supported by adequate documentation such as invoices, time or effort reports, etc. f. All organizations performing work under Government projects should have an individual(s) on their staff with the necessary educational and experience background in accounting to handle the Government project(s). Where there is no such individual(s), it is imperative that the organization be made aware of the importance of possessing such expertise, to properly provide for adequate financial management of government projects. g. It is good business policy for an organization to have outside auditors to review and evaluate management business practices and the results of operations on a periodic basis. Additionally, outside auditors possess the professional expertise to provide business management services such as (a) installation and improvements of accounting systems, (b) strengthening of internal controls, (c) prDHSration and filing of tax returns, (d) bookkeeping services, (e) auditing services, etc. Review of outside auditors’ statements-as indicated elsewhere in this
Panel1_DHS-Site-Visit-Checklists-and-Guidelines-6-27-2016.docx