070-Exhibit03
Page 14 of 10
FOREST SERVICE HANDBOOK
MISSOULA, MONTANA
FSH 1409.11 - FISCAL REVIEW AND ANALYSIS HANDBOOK
Region 1 Supplement No. 1409.11-96-2
Effective October 7, 1996
POSTING NOTICE: Supplements are numbered consecutively by Handbook number and calendar year. Post by document name.
Remove entire document and replace with this document. Retain this transmittal as the first page of this document. The last
supplement to this Handbook was Supplement 1409.11-96-1 to 001-070.
This supplement supercedes R1 supplement 1409.11-93-2.
Document Name
070-Exhibit03
Superseded New
(Number of Sheets)
10
10
Digest:
070-Exhibit03 - This exhibit contains Internal Control Self-Review and Certification process for collection activities.
HAL SALWASSER
Regional Forester
R1 Supplement 1409.11-96-2
Effective 10/07/96
070-Exhibit03
Page 14 of 10
FSH 1409.11 - FISCAL REVIEW AND ANALYSIS HANDBOOK
R1 SUPPLEMENT 1409.11-96-2
EFFECTIVE October 7, 1996
070 - Exhibit 03
INTERNAL CONTROL REVIEW
COLLECTION ACTIVITY
Region/Station
Unit
Subunit
Cashier(s)
Review Area
I. ALL COLLECTION PERSONNEL
NORTHERN REGION
Standard
Reference
A. Designations:
1. Have personnel handling
public funds been designated
for type of collections
handled?
All employees whose prescribed duties
require them to receive, handle, or
have custody of cash collections must
be designated as a Collection Officer.
FSH 6509.14
(030)
FSM 6535.2
2. Are Collection
designations in proper format
and approved by an officer
authorized to designate
Collection Officers?
Collection Officers will be designated through letter by Regional
Foresters, Directors or Forest
Supervisors, or their designees.
FSM 6535.21
3. If volunteers or SCSEP enrollees are collecting funds,
are the special conditions &
dollar limits being adhered to?
Volunteers in the National Forest
Program and SCSEP enrollees are
authorized to be designated CO's under
limited conditions. Volunteer
collections are limited to L&WCF
(recreation) receipts only.
4. Are designations made in
advance of performing
collection activities?
Employees must be designated in
writing as Collection Officers
prior to receipt of public funds.
FSM 6535.1
5. Are designations timely
canceled.
Designations must be canceled when
need for such ceases.
FSM 6535.21
FSM 1833.12 &
FSM 1863.47
FSM 6535.21
FSH 6509.14
(Draft)
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In Compliance?
Yes
No
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Remarks
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R1 Supplement 1409.11-96-2
Effective 10/07/96
070-Exhibit03
Page 14 of 10
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R1 Supplement 1409.11-96-2
Effective 10/07/96
070-Exhibit03
Page 14 of 10
070 - Exhibit 03--Continued
Review Area
B. Collection Officer
accountability
1. Are Collection Officers
aware of their responsibility and accountability
for the proper handling of
public funds?
Standard
Reference
Collection Officers are charged with
the safekeeping of public monies and
are held personally liable for such
funds.
FSH 6509.14
(040)
FSM 6535.22
1. Have Collection Officers
been provided administrative
direction regarding required
collection pickup schedules?
Fee collection procedures are to be
described for each site.
FSM 2331.26
2. Have Collection Officers
met collection pickup
schedules?
To be defined at the local management
level.
FSM 2331.26
3. Are public funds being used
only for official and legal
purposes?
It is unlawful for employees to use
public money for any purpose except
that allowed by law.
FSM 6530.3
Each Collection Officer is to be
provided with either a portable
locking metal cashbox or equivalent,
and a separate locking drawer, or a
compartment in a bar-locked or
combination-locked steel file
cabinet or a safe for storing cash.
FSH 6509.14
(030)
FSH 6530.3
Only the Collection Officer and, in
the event of an emergency, the Unit
Administrative Officer will have
access to Collecion Officer funds.
FSH 6509.14
(Draft)
FSM 6530.3
II. FIELD COLLECTION OFFICERS
A. Collection Officer fund pickup
B. Safeguarding of funds
1. Do safekeeping facilities meet standards?
C. Access to safekeeping facilities
1. Is access to safekeeping
facility limited only to
authorized individuals?
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In Compliance?
Yes
No
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Remarks
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R1 Supplement 1409.11-96-2
Effective 10/07/96
070-Exhibit03
Page 14 of 10
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R1 Supplement 1409.11-96-2
Effective 10/07/96
070-Exhibit03
Page 14 of 10
070 - Exhibit 03--Continued
Review Area
2. Is security of information for emergency
access to safekeeping
facilities adequate?
Standard
Reference
Only the Administrative Officer is to
FSH 6509.14
have emergency access information which is ( Draft)
to be secured by placing in blue envelop &
approriately notinged for emergency use only.
DO NOT RECORD COMBINATIONS AT LOCAL SITE.
3. Are safe combinations
changed upon change in
Collection Officer assignments.
Upon separation or transfer of
Collection Officers, safe combinations
are to be changed and keys turned in.
4. Is safe combination
changed according to
frequency requirements?
Collection officer safe combination will
be changed annually and when (1) there
is a change in officer, (2) it is
necessary to open the envelope for
emergency access, or (3) any instance
when the combination has been or suspected of having been compromised.
5. Are official funds
kept separate?
With some authorized exceptions, only
official funds are to be stored in
safekeeping facilities.
FSM 6535.22a
Collection Officers are to promptly
record remittances into a collection
register unless accounted for on cash
register tape or record.
FSH 6509.14
(155)
FSH 6509.11k,
(31.2)
a. Are remittances promptly recorded
on the lockbox transmittal log
Remittances are to be posted on the
lockbox transmittal log.
FSH 6509.11K
(31.22)
b. Is required information
posted to the log?
Date payment received, bill number, name
of remittor, bank ID & amounts are to be
posted.
FSH 6509.11K
(31.22)
c. Are frequency
requirements met?
When collections on hand total
$5,000, but no less often than once
every 30 days regardless of amount.
($1000 for volunteers & SCSEP enrollees)
FSH 6509.14,030
R-1 Supplement
FSM 6530.3
R-1 Policy
D. Recording of collections
1. Are collections promptly
recorded into a Collection
Officer register?
E. Transmittal of collections
1. Are Collection Officers meeting
fund transmittal standards to Lockbox
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In Compliance?
Yes
No
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Remarks
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R1 Supplement 1409.11-96-2
Effective 10/07/96
070-Exhibit03
Page 14 of 10
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070 - Exhibit 03--Continued
Review Area
e. Are methods of transmittal followed?
Standard
Reference
Transmittal is to be in person or by
FSH 6509.14
mail to lockbox in the form of money orders (030)
or cashier checks.
2. Another designated collection
Officer for transmittal to the
Unit Collection Clerk.
a. Are frequency requirements met?
($500\daily with minimum safekeeping)
b. Are receipt procedures
for fund transfer followed?
When collections on hand total
FSH 6509.14
$5000, but no less often than every
R-1, Supp 5
30 days regardless of the amount.
(Except for volunteers & SCSEP enrollees) See Item I.A.3
See R-1, Supp 5
Transfer of funds between Collection
Officers is to be acknowledged by
receipt on bills for collection or
equivalent transfer documentation.
FSH 6509.14
(156)
Persons delegated authority to sign
as "Issuing Officer" on permits
should not also be designated as
collection officer for these same
R-1 Policy
Losses or thefts of collections are
to be immediately reported through
appropriate administrative channels
to the Regional Director of
Financial Resources.
FSH 6509.14
(160)
FSM 6506.21
FSM 6535.22b
F. Segregation of duties
1. Is there an adequate segregation of duties to safeguard against the concealment of fund misuse?
permits except where permit is
accountable property.
G. Reporting loss or theft
of collections
1. Are losses or thefts
appropriately reported
through administrative
channels?
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In Compliance?
Yes
No
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Remarks
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R1 Supplement 1409.11-96-2
Effective 10/07/96
070-Exhibit03
Page 14 of 10
070 - Exhibit 03--Continued
Review Area
2. Are Collection Officer
duties suspended in cases of
apparent fiscal irregularity?
Standard
Where initial evidence indicates
apparent irregularity on the part
of a Collection Officer, the Collection Officer duties are to be suspended pending further investigation.
Reference
FSM 6535.22b
1. Have required Collection
Officer control files been
established?
Files are to be maintained by each
Collection Officer.
FSH 6509.14
2. Do files contain appropriate information?
Control files should include Collection Officer designations and
cancellations; copies of paid bills
for collection; collection transfer
receipts, and audits made of the
Collection Officer.
FSH 6509.14
a. Campground
Within 30 days after beginning of
recreation fee collections, every 90
days thereafter* through the recreation season, and upon termination of
Collection Officer designation.
*Forest Supervisor may approve once
during recreation season.
FSH 6509.11k,
31.11
b. Map sales
Annually
FSM 6532.7,
FSH 6509.11k,
31.11, FSM 2336
c. Christmas tree
permits
Within 30 days of designation, or beginning collections, annually thereafter, &
upon termination of Collection Officer
designation.
FSH 6509.11k,
31.11
H. Control files
I. Audits
1. Have required audits of
collection activities been made?
d. Interpretive
FSH 6509.11k,
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In Compliance?
Yes
No
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Remarks
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R1 Supplement 1409.11-96-2
Effective 10/07/96
Association
Review Area
070-Exhibit03
Page 14 of 10
Same as above
(Item 2 h)
31.11, FSM 6532.4 |
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070 - Exhibit 03--Continued
Standard
Reference
e. Charge fuelwood
permits
Within 30 days of designation,
annually and upon termination of
Collection Officer designation.
FSH 6509.11k,
31.11
f. All other
permits
Within 30 days of designation or beginning collections, annually thereafter, &
upon termination of C.O. designation.
FSH 6509.11k,
31.11
2. Are audits properly
documented?
Audits are to be documented, reflecting what was reviewed, findings,
recommendations and related information.
FSH 6509.11K
31.11
1. Are remittances promptly
recorded on the lockbox
transmittal log?
Remittances are to be posted on the
lockbox transmittal log.
FSH 6509.11k,
31.22
2. Is required information
posted to the log?
Date payment received, bill number, name
of remittor, bank ID and amounts are to
be reflected.
FSH 6509.11k,
31.22
1. Are endorsements handled
correctly?
Do not endorse checks being
forwarded to a lockbox address.
FSH 6509.11k,
31.24d
2. What action is taken for
underpayments, overpayments,
no record of billings?
Procedural steps outlined in
directives are to be followed.
FSH 6509.11k,
31.24
Cash is to be converted to money order
or cashier's check and mailed to the
lockbox bank.
FSH 6509.11k,
31.27
III. UNIT COLLECTION CLERK
A. Recording of Transactions
B. Processing
C. Transmittal of remittances
1. Are methods of transmittal of funds followed?
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In Compliance?
Yes
No
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Remarks
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R1 Supplement 1409.11-96-2
Effective 10/07/96
2. Are frequency standards
for transmittals met?
070-Exhibit03
Page 14 of 10
Whenever collections on hand total
$5000, but no less often than once
every 30 days.
FSM 6530.3
FSH 6509.14, 30
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R1 Supplement 1409.11-96-2
Effective 10/07/96
070-Exhibit03
Page 14 of 10
070 - Exhibit 03--Continued
Review Area
3. Are collections used for
other than official purposes?
Standard
It is unlawful for receipts to be
used for personal activities.
Reference
FSM 6530.3
4. Are paid billings
promptly routed to appropriate personnel?
Paid billings are to be furnished
to designed personnel.
FSH 6509.11k,
31.24
1. Do safekeeping facilities
meet standards?
Safes shall be provided for all locations where $500 cash or more may be
on hand. Safekeeping facilities are to
be provided where cash may be retained
overnight.
FSM 6530.3
FSH 6509.14,030
2. Is security of information for emergency access to
safekeeping facilities
adequate?
Only the Forest Unit Head is to have
emergency access information which
is to be secured.
FSM 6530.3
FSH 6509.14, 30
District safe combinations should be
kept off-site.
National Policy
D. Safeguarding of funds
Keep all Forest combinations at
Supervisor's Office with the Administrative
Officer or equivalent.
3. Is the safe combination
changed upon a change in
Unit Collection Clerks?
Upon separation or change in duties,
safe combinations are to be changed
and keys turned in to the Unit Head,
at the Forest Supervisor level.
FSM 6530.3
FSH 6509.14, 30
4. Are personal funds kept
separate?
With some authorized exceptions, only
official funds are to be stored in
safekeeping facilities.
FSM 6535.22a
Collection officers delegated the
authority to sign as "Issuing Officer"
on permits should not have any duties
which include exclusive accounting for
such permits or entering permits into
R-1 Policy
E. Segregation of duties
Does the Unit Collection
Clerk perform other collection activity duties which
could contribute to misuse
of receipts and its conceal-
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In Compliance?
Yes
No
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Remarks
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R1 Supplement 1409.11-96-2
Effective 10/07/96
ment in accounting records?
070-Exhibit03
Page 14 of 10
the accounting system.
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070 - Exhibit 03--Continued
Review Area
F. Reporting loss or theft
Standard
Reference
1. Are losses or thefts
appropriately reported
through administrative
channels?
Losses or thefts of collections are to
be immediately reported through appropriate administrative channels to the
Regional Director of Financial Resources.
Immediately report incidents to the
Review & Analysis Group Leader.
FSH 6509.14
(160)
2. Are collection duties
suspended in cases of apparent fiscal irregularity?
Where initial evidence indicates
apparent irregularity on the part of
a Collection Officer, the collection
officer duties are to be suspended
pending further investigation & any
collections and records impounded.
FSM 6535.22b
Unannounced audits are to be made
at least monthly to reconcile cash
on hand to the collection register.
FSH 6509.11k,
31.23
Form 6500-101 is to be prepared and
receipted (e.g., when envelopes containing cash or checks are opened by
mailroom employee).
FSM 6535.1
Amounts due are to be placed under
accounting controls promptly through
the issuance of billings and record-
FSM 6530.3
FSM 6535.22b
R-1 Supp
G. Audits
1. Are required audits of
lockbox transmittals made and
appropriate action taken?
IV. NON-COLLECTION OFFICERS
A. Remittances received by
non-designed employees
1. Are accountability procedures used when remittances are received by an
employee other than a
Collection Officer?
V. ACCOUNTING CONTROLS
A. Are billings issued
promptly when amounts are
determined due?
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In Compliance?
Yes
No
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Remarks
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R1 Supplement 1409.11-96-2
Effective 10/07/96
ing as accounts receivable.
070-Exhibit03
Page 14 of 10
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R1 Supplement 1409.11-96-2
Effective 10/07/96
070-Exhibit03
Page 14 of 10
070 - Exhibit 03--Continued
Review Area
B. Are control procedures
and responsibilities established and operating whereby
individual billings (paid
and unpaid) and amounts are
accounted for from the time
of billing number assignment
to reflection of paid
amounts by individual billing in accounting records?
Standard
Amounts due are to be placed under
accounting controls whereby reconciliations are made between untransmitted collections, and transmissions in
transit not acknowledged by the
lockbox file retrieved from the RO.
Reference
FSM 6530.3
C. Do control procedures include adequate segregation of
duties to safeguard against
the concealment of fund misuse by employees responsible
for:
Organizational assignment of collecR-1 Policy
tion activities are to be segregated
whereby an individual(s) cannot conceal the misuse of remittances in
accounting records. (see sections II.E & III.F)
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In Compliance?
Yes
No
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Remarks
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I have reviewed compliance to prescribed internal control procedures and
standards for the collection activity. Identification of those areas
where standards have not been met are documented in the remarks block of
this guide.
Compliance Reviewer
Date