070-Exhibit03
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FOREST SERVICE HANDBOOK
PORTLAND, OREGON
TITLE 1409.11 - FISCAL REVIEW & ANALYSIS HANDBOOK
R-6/PNW Supplement No. 1409.11-92-2
Effective February 4, 1992
POSTING NOTICE. Supplements to this handbook are numbered consecutively.
Check the last transmittal sheet received for this handbook to see that the above
supplement number is in sequence. If not, obtain intervening supplement(s) at once
from the Information Center. Do not post this supplement until the missing one(s)
is received and posted. After posting, place the transmittal at the front of the title
and retain until the first transmittal of the next calendar year is received.
The last Supplement to this handbook was R-6/PNW 1409.11-92-1 (001-070).
Document Name
Superseded New
(Number of Sheets)
070-Exhibit
03
10
**SPECIAL PRINTING INSTRUCTIONS** Print in 15-pitch landscape.
Digest: This supplement is a reissuance of 070 - Exhibit 03, INTERNAL CONTROL
REVIEW COLLECTION ACTIVITY, to conform the format and structure to the
requirements of electronic directive issuance. CONTENT HAS NOT BEEN
CHANGED.
JOHN F. BUTRUILLE
Regional Forester
CHARLES W. PHILPOT
Station Director
R-6/PNW SUPPLEMENT 1409.11-92-2
EFFECTIVE 2/4/92
070-Exhibit03
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070 - Exhibit 03
INTERNAL CONTROL REVIEW
COLLECTION ACTIVITY
Region/Station
Unit
Subunit
Cashier(s)
PACIFIC NORTHWEST
Standard Met?
Review Area
I. ALL COLLECTIONS
PERSONNEL
Standard
Reference
All employees whose prescribed duties require
them to receive, handle, or have custody of cash
collections must be designated as a Collection
Officer, including Collections Clerks and
Alternates.
FSH 6509.14
(030)
FSM 6535.2
Collection Officers will be designated through
letter by Regional Foresters, Directors or Forest
Supervisors, or their designees.
FSM 6535.21
Volunteers in the National Forest Program and
SCSEP enrollees are authorized to be designated
CO's under limited conditions, & collections may
not exceed $750.
Employees must be designated in writing as
Collection Officers prior to receipt of public
funds.
FSM 1833.12
&
FSM1863.47
A. Designations:
1. Have personnel handling public funds
been designated for type of collections
handled?
EX: Campground
Map sales
Christmas tree permits
Mess hall meal collections
Fuelwood
2400-4's
Unit Collection Clerk
and Alternates
2. Are Collection designations in proper
format and approved by an officer
authorized to designate Collection
Officers?
3. If volunteers or SCSEP enrollees are
collecting funds, are the special
conditions & dollar limits being adhered
to?
4. Are designations made in advance of
performing collection activities?
FSM 6535.1
Yes
No
Remarks
R-6/PNW SUPPLEMENT 1409.11-92-2
EFFECTIVE 2/4/92
070-Exhibit03
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070 - Exhibit 03 - - Continued
Review Area
5. Are designations timely canceled.
a. by limitation or,
Standard
Designations must be canceled when need for
such ceases.
Reference
FSM 6535.21
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
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 puposes?
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 seperate locking drawer, or a
compartment in a bar-locked or combinationlocked steel file cabinet or a safe for storing cash.
FSH 6509.14
(030)
FSH 6530.3
b. by a cancellation letter?
B. Collection Officer accountability
1. Are Collection Officers aware of their
responsibility and accountability for the
proper handling of public funds?
II. COLLECTION OFFICERS
OTHER THAN UNIT COLLECTION
CLERKS
A. Collection Officer fund pickup
1. Have Collection Officers been
provided administrative direction
regarding required collection pickup
schedules?
B. Safeguarding of funds
1. Do safekeeping facilities meet
standards?
a. At work sites
b. At headquarters offices
C. Access to safekeeping facilities
Standard
Met?
Yes
No
Remarks
R-6/PNW SUPPLEMENT 1409.11-92-2
EFFECTIVE 2/4/92
1. Is access to safekeeping facility
limited only to authorized individuals?
Only the Collection Officer and, in the event of
an emergency, the Unit Head will have access to
Collection Officers' funds.
070-Exhibit03
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FSH 6509.14
(030)
FSM 6530.3
070 - Exhibit 03 - - Continued
Review Area
2. Is security of information for
emergency access to safekeeping
facilities adequate?
Standard
Only the Unit Head is to have emergency access
information which is to be secured. NOTE:
KEEP DISTRICT COMBINATION OFF SITE
(i.e. at S.O. or local bank safe deposit box) or do
not record combinations at all.
Reference
FSH 6509.14
(030)
FSM 6530.3
3. Are safe combinations changed upon
change in Collection Officer
assignments? turned in.
Upon separation or transfer of Collection
Officers, safe combinations are to be changed and
keys
FSM 6530.3
4. Are official funds kept separate?
With some authorized exceptions, only official
funds are to be stored in safekeeping facilities.
FSM 6535.22a
D. Recording of Collections
1. Are collections promptly recorded into
a Collection Officer register?
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,
31.1
E. Transmittal of collections
1. Are Collection Officers meeting fund
transmittal standards to Lockbox
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 reflected.
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
FSH 6509.14
(030)
Standard
Met?
Yes
No
Remarks
R-6/PNW SUPPLEMENT 1409.11-92-2
EFFECTIVE 2/4/92
d. Are transmittal fees and change
making fees being properly handled?
amount. ($750 for volunteers & SCSEP
enrollees)
FSM 6530.3
See Item I.A.3
Cash collections are not to be diminished by fees
nor for change making.
FSH 6509.14
(030)
070-Exhibit03
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070 - Exhibit 03 - - Continued
Review Area
Standard
Reference
e. Are methods of transmittal followed?
Transmittal is to be in person or by mail to lockbox in the
form of money orders or cashier checks. In some cases
unopened campground envelopes may be transmitted by
courier in locked containers to a bank for counting.
FSH 6509.14
When collections on hand total $5000, but no less often than
every 30 days regardless of the amount.
(Except for volunteers & SCSEP enrollees)
FSH 6509.14
(030)
FSM 6530.3
See Item I.A.3
2. Another designated collection officer for
transmittal to the Unit Collection Clerk.
a. Are frequency requirements met?
b. Are receipt procedures for fund transfer
followed?
Transfer of funds between Collection Officers is to be
acknowledged by receipt on bills for collection or equivalent
transfer documentation.
FSH 6509.14
(156)
F. Segregation of duties
1. Is there an adequate segregation of duties to
safeguard against the concealment of fund misuse?
Persons responsible for handling cash receipts should not
participate in the accounting or operating functions relating to:
(1) Shipping of goods and billing for goods and services.
(2) Controlling accounts receivable and general ledgers
(3) Preparing and mailing statements of balances due.
(4) Authorizing and approving credits for returns and
allowances or for adjustments of amounts due.
FSH 6509.11k
31
Losses or thefts of collections are to be immediately reported
through appropriate administrative channels to the Regional
Director of Fiscal and Accounting Management or Assistant
Director for Research Support Services
Where initial evidence indicates apparent irregularity on the
part of a Collection Officer, the Collection Officer duties are
to be suspended pending further investigation.
FSH 6509.14
(160)
G. Reporting loss or theft of collections
1. Are losses or thefts appropriately reported
through administrative channels?
2. Are Collection Officer duties suspended in cases
of apparent fiscal irregularity?
FSM 6535.22b
Standard
Met?
Yes
No
Remarks
R-6/PNW SUPPLEMENT 1409.11-92-2
EFFECTIVE 2/4/92
070-Exhibit03
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H. Control files
1. Have required Collection Officer control files
been established?
Files are to be maintained by each Collection Officer.
FSH 6509.14
(170)
2. Do files contain appropriated 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
(170)
I. Audits
070 - Exhibit 03 - - Continued
Review Area
Standard
Reference
Within 30 days after beginning of recreation fee collections,
every 90 days thereafter through the recreation season*, and
upon termination of Collection Officer designation.
FSH 6509.11k,
31.11
1. Have required audits of collection activities been
made?
a. Campground
b. Map sales
Annually
c. Christmas tree permits
Within 30 days of designation, or beginning collections,
annually thereafter, & upon termination of Collection Officer
designation.
"
FSM 6532.7
FSH 6509.11k,
31.11
FSM 2336
"
"
"
FSH 6509.11k,
31.11
FSH 6509.11k,
31.11, FSM 6532.4
(Item 2 h)
d. Interpretive Association
e. Mess operations
Quarterly for year long messes and once during the season for
seasonal operations.
FSM 6532.8
FSH 6509.11k,
31.11
FSH 6509.11k,
31.11
f. Charge fuelwood permits
Within 30 days of designation, annually and upon termination
of Collection Officer designation.
FSH 6509.11k,
Standard
Met?
Yes
No
Remarks
R-6/PNW SUPPLEMENT 1409.11-92-2
EFFECTIVE 2/4/92
070-Exhibit03
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31.11
g. All other permits
2. Are audits properly documented?
Within 30 days of designation or beginning collections,
annually thereafter, & upon termination of C.O. designation.
Audits are to be documented, reflecting what was reviewed,
findings, reccommendations and related decisions.
FSM 6530.3
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 endorsments handled correctly?
In the name of the agency.
FSH 6509.11k,
31.24
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
III. UNIT COLLECTION CLERK
A. Recording
B. Processing
070 - Exhibit 03 - - Continued
Review Area
Standard
Reference
1. Are methods of transmittal of funds followed?
Cash is to be converted to money order or cashier's check and
mailed to the lockbox bank.
FSH 6509.11k,
31.27
2. Are frequency standards for transmittals met?
Whenever collections on hand total $5000, but no less often
than once every 30 days.
FSM 6530.3
FSH 6509.14,30
3. Are collections used for other than official
purposes?
It is unlawful for receipts to be used for personal activities.
FSM 6530.3
4. Are paid billings promptly routed to appropriate
personnel?
Paid billings are to be furnished to various personnel.
FSH 6509.11k,
31.24
Safes shall be provided for all locations where $500 cash or
FSM 6530.3
C. Transmittal of remittances
D. Safeguarding of funds
1. Do safekeeping facilities meet standards?
Standard
Met?
Yes
No
Remarks
R-6/PNW SUPPLEMENT 1409.11-92-2
EFFECTIVE 2/4/92
070-Exhibit03
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more may be on hand. Safekeeping facilities are to be
provided where cash may be retained overnight.
2. Is security of information for emergency access
to safekeeping facilities adequate?
Only the Unit Head* is to have emergency access information
which is to be secured.
* At Forest Supervisor level.
District safe combinations should be kept off-site.
FSM 6530.3
FSH 6509.14, 30
RO 6540 LETTER
DATED 2/5/88
It is permissable not to retain any written safe combinations.
RO 6540 LETTER
DATED 7/12/89
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 seperate?
With some authorized exceptions, only official funds are to be
stored in safekeeping facilities.
FSM 6535.22a
Person responsible for handling cash receipts should not
participate in the accounting or operating functions relating to:
1) Shipping of goods and billing for goods and services.
2) Controlling accounts receivable and general ledgers.
3) Perparing and mailing statements of balances due.
4) Authorizing and approving credits for returns and
allowances or for adjustments of amounts due.
FSH 6509.11k, 31
E. Segregation of duties
1. Does the Unit Collection Clerk perform other
collection activity duties which could contribute to
misuse of receipts and its concealment in
accounting records?
070 - Exhibit 03 - - Continued
Review Area
Standard
Reference
Losses or thefts of collections are to be immediately reported
through appropriate administrative channels to the Regional
Director of Fiscal and Accounting Management or Assistant
Director for Research Support Services.
FSH 6509.14
(160)
Where initial evidence indicates apparent irregularity on the
part of a Collection Officer, the collection officer duties are to
be suspended pending further investigation.
FSM 6535.22b
F. Reporting loss or theft
1. Are losses or thefts appropriately reported
through administrative channels?
2. Are collection duties suspended in cases of
apparent fiscal irregularity?
G. Audits
FSM 6535.22b
Standard
Met?
Yes
No
Remarks
R-6/PNW SUPPLEMENT 1409.11-92-2
EFFECTIVE 2/4/92
1. Are required audits of lockbox transmittals made
and appropriate action taken?
Unannounced audits are to be made at least quarterly.
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
070-Exhibit03
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IV. NON-COLLECTION OFFICERS
A. Remittances received by non-Collection
Officers
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?
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?
Amounts due are to be placed under accounting controls
promptly through the issuance of billings and recording as
accounts receivable
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 R.O.
FSM 6530.3
070 - Exhibit 03 - - Continued
Review Area
Standard
Reference
C. Do control prodedures include adequated
Organizational assignment of collection activities are to be
FSH 6509.11k, 31
Standard
Met?
Yes
No
Remarks
R-6/PNW SUPPLEMENT 1409.11-92-2
EFFECTIVE 2/4/92
segregation of duties to safeguard against the
concealment of fund misuse by employees
responsible for:
segregated whereby an individual(s) cannot conceal the
misuse of remittances in accounting records.
1. Assigning control numbers for bills for
collection
2. Issuing bills for collection.
3. Maintenance of accounts receivable files.
4. Month end collection activity reporting.
5. Unit Collection Clerk (and Alternates)
activities.
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
070-Exhibit03
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