070-Exhibit04 Page 1 of 10 FOREST SERVICE HANDBOOK MISSOULA, MONTANA FSH 1409.11 - FISCAL REVIEW AND ANALYSIS HANDBOOK Region 1 Supplement No. 1409.11-96-3 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 1409.11-96-2 to 070-Exhibit03. This supplement supercedes R1 supplement 1409.11-93-3. Document Name 070-Exhibit04 Superseded New (Number of Sheets) 10 10 Digest: 070-Exhibit04 - This exhibit contains Internal Control Self-Review and Certification process for imprest activities. HAL SALWASSER Regional Forester R1 SUPPLEMENT 1409.11-96-3 EFFECTIVE 10/07/96 070-Exhibit04 Page 2 of 10 FSH 1409.11 FISCAL REVIEW AND ANALYSIS HANDBOOK R1 SUPPLEMENT 1109.11-96-3 EFFECTIVE October 7, 1996 070 - Exhibit 04 INTERNAL CONTROL REVIEW IMPREST FUND ACTIVITY Region/Station Unit Subunit Cashier(s) Review Area VI. IMPREST FUND ACTIVITY NORTHERN REGION Standard Reference A. General 1. Are Imprest Fund directives maintained currently? Cashiers are responsible for maintaining a copy of: (a) FSH 6509.13b (6.2C) Imprest Fund Payments Handbook. (b) Department of Treasury Manual of Procedures & Instructions for Cashiers. FSH 6509.31 2. Do Cashiers ensure that the imprest fund is not commingled with other funds? Cashiers must ensure the imprest Fund is not commingled with other official or semi-official funds or with personal funds. FSH 6509.13b (0504) Form 6500-138, Request for Imprest Fund Cashier Designation recommending approval is completed. Forms SF-211 and SF-1129 on file reflect the current status of the fund. FSH 6509.13b (0201) Cashier must be a permanent employee. FSH 6509.13b (201) B. Designation/Delegation 1. Have Cashiers been properly designated? 2. Are Cashiers properly qualified? Cashier should be performing procurement or supply function if at FSH 6509.13b (0201) FSH 6509.31 (6.4A & B) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | In Compliance? Yes No | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Remarks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | R1 SUPPLEMENT 1409.11-96-3 EFFECTIVE 10/07/96 070-Exhibit04 Page 3 of 10 all feasible. | | | | | | | | | | In Compliance? No Remarks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 070 - Exhibit 04--Continued Review Area 3. Is Cashier delegated appropriate purchasing authority? Standard Reference Cashier must be delegated purchasing authority in order to approve purchases or have transaction approved by someone with that authority. Yes FSH 6309.12 (33) 4. Is Cashier verifying that the approving officer's signature has been properly designated? Cashier must verify that the approving officer's signature matches that which is contained in the designation letter. 6509.13b-92-3 (701) 5. Is the requisition unit representative signing for receipt of supplies and services? Cashier or purchasing agent shall not sign receipt for services and supplies. The requisitioning Unit representative shall sign whenever possible. FSH 6509.13b (701) C. Imprest Fund Accountability 1. Are the five cash verifications and audit frequency requirements being accomplished? Verifications of cash balances shall be made as frequently as deemed necessary for the Government, but at least 5 unannounced times per year with the minimum of one verification each quarter. FSH 6509.13b (1008.2) Audits of each imprest fund shall be made within 120 days after the (1008.3) Cashier's designation, and thereafter as frequently as necessary to protect the interest of the Government, but at least annually. FSH 6509.13b This internal control review may be substituted for the annual audit and information transferred to Form AD-359 for NFC reporting purposes. 2. Is the audit being performed annually? The audit is included in one of the five unannounced cash verifications that are to be accomplished annually. FSH 6509.13b (1008) 3. Is the internal control The review/audit should be totally unpred- FSH 6509.13b R1 SUPPLEMENT 1409.11-96-3 EFFECTIVE 10/07/96 review scheduled in an unpredictable manner and reported by qualified S.O. personnel? 070-Exhibit04 Page 4 of 10 ictable and will be performed by qualified Supervisor's Office personnel. Staggered annual schedules are recommended. (1008) | | | | | | | | | | | | | | | 070 - Exhibit 04--Continued Review Area 4. Are unannounced cash verifications and audits completed by qualified employees? Standard A designated individual not supervised by the cashier shall conduct unannounced verifications and audits. Reference FSH 6509.13b (1008) 5. Are the samples for the review/audit in agreement with the minimum specified in FSH 6509.13b. As a minimum, a representive sample of past payments of the cashier and a sample of current subvouchers. FSH 6509.13b (1008.31) 6. Are reimbursement vouchers approved by proper officers? Vouchers are to be approved by the Administrative Officer or other (0901) designated employee. Determine if purchases appear appropriate from funds available. FSH 6509.13b 7. Are Cashiers' payment records complete? Cashiers will retain copies of the following: FSH 6509.13b (1001) (a) Reimbursement vouchers (b) Subvouchers (c) Advances for changemaking purpose (d) Travel Advances SF 1129, AD-661, and payment subvouchers should be in agreement for each reimbursement period. FSH 6509.31 (6.4B1) Cashiers will maintain a current record of all advances: FSH 6509.13b (0308,1001) (a) Collection Officers for changemaking purposes. (b) Alternate Cashiers for normal disbursing purposes. (c) Informal advances to employees 6509.13b | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | In Compliance? Yes No | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Remarks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | R1 SUPPLEMENT 1409.11-96-3 EFFECTIVE 10/07/96 070-Exhibit04 Page 5 of 10 on SF-1165 for specific over-the-counter purchases and limited to a maximum of 5 days from date of advance (15 days for work crews in isolated areas) (702) | | | | | | | | | | | | | | | 070 - Exhibit 04--Continued Review Area Standard Reference 8. Are imprest funds adjusted as required to meet proper imprest fund cash advance levels? The amount of imprest advance may not exceed the estimated amount required for 30 days of operation. FSH 6509.13b (0306) 9. Are imprest fund reimbursement vouchers submitted according to frequency requirements? Reimbursement Voucher. SF-1129 shall be sent at least as often as shown below: FSH 6509.31 Chap6,Sec1 (a) Fund less than $2,000: monthly (b) Fund between $2,000 - $9,000: semi-monthly (c) Fund greater than $10,000: weekly 10. Are reimbursement vouchers for travel advances submitted according to frequency requirements? Reimbursement vouchers for travel advances (AD-615) should be sent daily. FSH 6509.13b (0701.23c) 11. Are Cashiers duties separated from other responsbilities? Duties and responsibilities in imprest transactions must be separated among individual employees to achieve appropriate internal controls. R-1 Policy 1410/6300/6500 Ltr 1/28/94 12. Are shortages documented and properly reported? If differences are disclosed during a cash verification, other than minor change-making errors ($5 or less) it must be documented and reported to the Regional Director of Financial Resources for determination of further action. FSM 6509.13b (505,1008) When there is a loss, shortage, or FSH 6509.13b | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | In Compliance? Yes No | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Remarks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | R1 SUPPLEMENT 1409.11-96-3 EFFECTIVE 10/07/96 070-Exhibit04 Page 6 of 10 theft, the unit administrative head should be notified immediately by phone. (0505) | | | | | | | | | | | | | | | R1 SUPPLEMENT 1409.11-96-3 EFFECTIVE 10/07/96 070-Exhibit04 Page 7 of 10 070 - Exhibit 04--Continued Review Area 13. When irregularities are disclosed, is appropriate action taken to protect the assets involved? Standard Reference When irregularities as defined in FSH 6509.13b (1008.34) are disclosed, appropriate action shall be taken to protect the assets involved, such as impoundment of the fund, additional investigation, etc. FSH 6509.13b (0505, 1008, 1507) Each Cashier (principal and alternate) will be provided with either a combination-locked safe or an individual combination locked drawer in a steel security filing cabinet for storing cashier's cashbox and receipts. FSH 6509.13b (0403) Only the Cashier and, in the event of an emergency, the Forest A.O. will have access to the Cashier's fund. Cashiers will keep combination and keys under strict personal control FSH 6509.13b (0004.1, 0403) D. Safekeeping of Funds 1. Are safekeeping facilities adequate? 2. Access to safekeeping facilities: a. Is access to the imprest fund limited to the Cashier? NOTE: CASHIERS WILL NOT RECORD COMBINATION AT LOCAL SITES. b. Is security of information for emergency access to safekeeping facilities adequate? Cashiers shall release to the unit head a sealed, signed, and dated envelope containing the safe combination and duplicate cashbox key which will then be kept in a secure place. FSH 6509.13b (0403) c. Is safe combination changed according to frequency requirements? Imprest fund safe combination will be changed annually and when (1) there is a change in Cashier, (2) it is necessary to open the envelope for emergency access, or (3) any instance when the combination has been or sus- FSH 6509.13b (0004.1, 0403) | | | | | | | | | In Compliance? Yes No | | | | | | | | | Remarks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | R1 SUPPLEMENT 1409.11-96-3 EFFECTIVE 10/07/96 070-Exhibit04 Page 8 of 10 pected of having been compromised. | | | | | | 070 - Exhibit 04--Continued Review Area d. Are funds reasonably protected at all times? Standard Imprest cash will be kept locked in approved safe/cabinet except when fund transactions are taking place. Safekeeping facilities will be placed in an area not easily accessible to the public. Reference FSH 6509.13b (0004) Appropriate protective measures will be observed when cash is transported. FSH 6509.13b (0004) Cashiers shall secure receipts (subvouchers) to prevent their loss prior to submission for reimbursement. FSH 6509.13b (0502) Copies of all receipts (sub-vouchers) supporting disbursement will be retained by Cashiers at their location to provide documentation for onsite review and to protect the Cashier should these records be lost in transit to the NFC. FSH 6509.13b (0901.2) a. General transactions? Shall not exceed $500 for any one transaction except for special authorizations which follow. FSH 6509.13b (0701.1) b. Emergency payment? If specifically authorized in writing, may make payments up to $1,000 per transaction under emergency conditions. FSH 6509.13b (0701.12) c. Purchase of information? Up to $200 advanced to criminal FSH 6509.13b e. Are payment documents safeguarded? FSH 6509.13b (0004) E. Purchasing/Payments 1. Are cash transactions within authorized limitations. for various types of purchases authorized for: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | In Compliance? Yes No | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Remarks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | R1 SUPPLEMENT 1409.11-96-3 EFFECTIVE 10/07/96 070-Exhibit04 Page 9 of 10 investigators; up to $500 if advance approval by Forest Supervisor. (0701.14a) | | | | | | | | | R1 SUPPLEMENT 1409.11-96-3 EFFECTIVE 10/07/96 070-Exhibit04 Page 10 of 10 070 - Exhibit 04--Continued Review Area d. Purchase of evidence? Standard Up to $400 to criminal investigators, $401-500/advance approval by Forest Supervisor, $501-2500 with advance approval by the Chief. Reference | | | | e. Travel Advances? For emergency or unscheduled travel situations Cashiers may make travel advances up to $500 provided an approved AD-615 is presented by the traveler. FSH 6509.13b (0701.23c) f. Salary prepayment? Shall not exceed maximum dollar limitations imposed upon Cashier for regular or emergency payments per single transaction for employees prior to receipt of first paycheck who because of financial hardship, need funds for subsistence, and for certain other employees. FSH 6509.13b (0801) h. Volunteers? Payments for subsistence and miscellaneous expenses at volunteers' duty stations are limited to general dollar limitations for imprest fund payments. FSH 6509.13b (0701.3) i. Spot Awards? The amount of the payment shall be in increments of $25 and not less than $25, nor more than $500. FSH 6509.13b (0701.13) j. Books & Subscriptions? Payments for magazine subscriptions, books, or other publications, printed or recorded, not exceeding $250 2. Do controls prevent duplication between cash purchases and payments of purchase orders and have duplicate payments been made? Except in emergency, items should not be purchased with cash from a vendor if a blanket purchase order (charge) arrangement is in force. FSH 6509.13b (0701.2) Form SF-1165 should not be used as a replacement subvoucher unless vendor is not equipped to prepare a receipt. (0701.21) Units should make sample checks of subvouchers against AD-838's, credit card files, and third party drafts for duplicates. Make sample contact with vendors to verify purchases, including dollar amounts and method of payment. In Compliance? Yes No | | | | Remarks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | R1 SUPPLEMENT 1409.11-96-3 EFFECTIVE 10/07/96 070-Exhibit04 Page 11 of 10 | | | R1 SUPPLEMENT 1409.11-96-3 EFFECTIVE 10/07/96 070-Exhibit04 Page 12 of 10 070 - Exhibit 04--Continued Review Area 3. Do controls prevent goods paid for in cash from being returned for personal credit? Standard Vendor's signature is required on subvouchers for purchases returned or exchanged reflecting items and cash returned. Values of returned items are to be reflected on imprest fund records. Cashier should keep originals of the subvouchers in the safe until they are sent to NFC. Reference FSH 6509.13b (0701.22) 4. Are all duplicate payments and irregularities being reported to the Director of Financial Resources? Any duplicate payments or irregularities must be reported to the Director Financial Resources, immediately. Report within 24 by phone to the Group Leader for Review & Analysis. FSH 6509.13b (0505) FSM 6506.21 5. Is each cash disbursement properly supported? Receipts should be originals and not duplicates. If they are duplicates, they should bear the statement "This is a true copy of the original." FSH 6509.13b (0701.21) Persons initially receiving goods or services shall acknowledge receipt by signature and date on subvouchers. If the item is not clearly described, this individual should briefly describe on the subvoucher. FSH 6509.13b (0701.21) Each receipt shall be marked paid by the vendor. FSH 6509.13b (0701.2) Subvouchers shall be sequentially numbered. FSH 6509.13b (0706) Question changes on subvouchers. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | In Compliance? Yes No | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Remarks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | R1 SUPPLEMENT 1409.11-96-3 EFFECTIVE 10/07/96 070-Exhibit04 Page 13 of 10 070 - Exhibit 04--Continued I have reviewed compliance to prescribed internal control procedures and standards for the imprest fund activity. Identification of those areas where standards have not been met are documented in the remarks block of this guide. Compliance Reviewer Date