Internal Control Questionnaire
Departments/Units
December, 2015
College
Department/Unit
Administrative Officer non-university
Name
Purpose:
•
To assess and improve our overall system of financial internal controls, bringing them in line with best practices and with Provincial Auditor expectations. Internal controls are the system of practices, procedures and policies that are intended to safeguard the assets of the University from fraud, error or other irregularities, and ensure accurate record keeping. To simplify, internal controls are any actions taken by the University that will increase the likelihood that their mission and objectives will be achieved.
•
The unit (org) levels/codes that have been established in the University’s financial reporting system are intended to mirror an organization chart, and identify the distinct units of budgetary responsibility that exist at the University. With the completion of a separate internal control Questionnaire (ICQ) for each distinct unit, we will obtain a higher level of assurance that the responses received present an accurate picture of each unit’s current financial process controls, and that any unit-specific processes and procedures have been identified. The ICQ is intended to be an accurate self-assessment of the status of each unit’s financial controls at the time of ICQ completion. In order to be able to effectively implement any improvements that are necessary to achieve a consistent and sound ‘best practice’ internal control framework, we must have an accurate assessment of our existing financial controls as a starting point.
Objectives:
•
To identify only those key financial controls that are required at a departmental level
•
To identify key financial controls to ensure consistent application
•
To provide a self-assessment as to the effectiveness of each control in the department
•
To identify opportunities for staff training and development
•
To identify processes in the department that require a more thorough review
Glossary of Terms:
Term Statement
Reference
2, 9, 19
Definition
UniFi Org Code
Organizations or agencies that have no official affiliation with the University or any of its recognized committees, departments, etc. For example: students,
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documented requisition
Deferred Revenue forwarded contemplated authorized individual equipment
6
12
15
17
20, 25
37 to 42 inclusive faculty and staff are considered non-University. The
Canadian Light Source, which is a University subsidiary, is also considered non-University. Centres which are included as Chart 1 Accounts in UniFi, such as VIDO, are considered part of the University.
Written hard copy, or electronically produced and communicated, email, signed facsimile, or requisition form.
Represents monies received or promised , but not yet recognized or recorded as earned revenue, because the applicable work has not been performed yet; and therefore appears on the Balance Sheet under the
Liabilities section.
The delivery of donations to University Advancement
(UA) can be done through campus mail, in-person, or making other arrangements with UA to ensure the prompt delivery of the donation.
A gift in kind is contemplated at the point where we
(University, College, Department, Faculty/Staff member) are thinking of asking a potential donor for a particular asset, or when a potential donor first mentions to us (University, College, Department, Faculty/Staff member) the potential gift of a particular asset.
When we are asking for the gift in kind, contemplation of a gift in kind occurs before we formally ask the potential donor. When the potential donor is offering a gift in kind to the University, contemplation occurs before we give any indication to the potential donor that we may accept the gift in kind.
Employee who holds one of the following positions in the University community: President, Provost,
University Secretary, VP, AVP, Dean, Department
Head, Director, Manager, Researcher/Principal
Investigator (for Research project transactions) and any individual who has been given formal ‘Acting’ status in any of these positions.
Tangible assets, (e.g. audio visual equipment, computer equipment, vehicles, etc.), acquired through donation or gift, purchase, loan, capital lease or self-construction, with a life expectancy of more than one year, and a cost of $1,000 or greater. This does not include Furnishings
(chairs, desks, cabinets or other decorative items such as carpet or curtains). Cost is defined as unit price, including all direct costs of commissioning, installation, calibration, training, freight, transit insurance, certifications, and any non-recoverable taxes, duties or
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Dean/Department
Head/Director/Manager formally delegated
32, 34, 49,
55
54 applicable fees, less any discounts..
The applicable administrative head for the College, department or business unit.
Written delegation of authority given by an authorized individual.
INTERNAL CONTROL QUESTIONNAIRE: (Should be completed by the administrative staff member responsible for the identified activities)
General Information
1. What is your College’s/Unit’s UniFi 1000 Level Org Code number ? ___
Selling/Revenue Activities
Rating: 1 = Never; 2 = Some of the time; 3 = Most of the time; 4 = All of the time
Indicate in the N/A column for those that are not applicable to the unit Rating N/A
2. Invoices, point-of-sale (cash register) receipts, or pre-numbered receipt forms are prepared for all sales to non-University customers and are provided to the customer at the time of the sale.
3. Invoices, point-of-sale (cash register) receipts, or pre-numbered receipt forms are prepared for all sales to other University departments/units/affiliated organizations (e.g. VIDO) and are provided to the customer at the time of the sale.
4. All invoices issued for the sale of goods and/or services, to both internal and external customers, are recorded in UniFi by the end of the next business day following the date of the sales transaction. If not, please provide an explanation below.
5. Comments:
6. All sales to other University departments/units are initiated by a documented requisition, work request, or contract which is requested by fax or email, and/or signed by an authorized individual.
7. All monies received, for which the university is legally entitled , are handled in a secure manner, recorded in UniFi, deposited with the University
Treasury Office, and reconciled to the related sales records and receipts, as prescribed by the University’s ‘Managing and Controlling Monies’ policy, procedures and guidelines.
8. The department follows a documented procedure for authorizing credit to customers, prior to the provision of any products or services..
9. A documented agreement ( e.g. PO, contract, work order) is completed and received for all sales to non-University customers, before any products or services are provided.
10. All sales to non-University customers, where payment is not received at the point of sale, are recorded as Accounts Receivable in UniFi.
11. For accounts receivable that are managed in the department/unit, outstanding account balances are actively managed to ensure collection of
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accounts within 60 calendar days.
12. For accounts receivable that are managed in the department/unit, a monthly aged trial balance is prepared and reconciled to UniFi.
13. Payments received in advance of the point of sale transaction are recorded as Deferred Revenue in UniFi.
14. Copies of signed non-research revenue-generating contracts/agreements with external parties are submitted to Financial Reporting by the end of the next business day following the date of receipt of the executed contract/agreement. If not, please provide an explanation below.
15. Comments:
16. All donations (monies and supporting documentation) are forwarded to
University Advancement by the end of the next business day following the receiving date. If not, please provide an explanation below.
17. Comments:
18. Once a gift-in-kind is contemplated, University Advancement is contacted/advised by the end of the next business day. If not, please provide an explanation below.
19. Comments:
Buying/Expenditure Activities
Rating: 1 = Never; 2 = Some of the time; 3 = Most of the time; 4 = All of the time
Indicate in the N/A column for those that are not applicable to the unit Rating N/A
20. Purchases of goods and services from non-University suppliers are initiated in accordance with established University procurement policies and procedures: competitive bid processes (RFI, RFP, RFQ, RFT), purchase orders, PCards, employee expense reimbursements, etc.
21. All purchase requisitions for goods and services are appropriately reviewed, approved and signed by an authorized individual before the order is placed.
22. Department/unit staff members have undertaken appropriate consultations to ensure that all regulatory and legislative requirements are met when procuring goods and services.
23. All contracts for the purchase of goods and services that the department/unit has authorization to negotiate, are forwarded to Purchasing Services (FSD) for review and signature, and/or are centrally filed in the initiating
Department/Unit, in accordance with the University Signing Authority policy.
24. PCards are only used for authorized University expenditures in accordance with University policy.
25. All goods and services received are verified and documented by a staff member and compared to the purchase documentation before payment is authorized.
26. All claims for reimbursement to an employee, including travel, are
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reviewed, approved and signed by an authorized individual.
27. Department/unit employees perform appropriate documented month-end transaction cut-off reviews to ensure that all goods and services purchased, received and/or consumed during the month are accurately recorded in
UniFi, via recording of the applicable suppliers’ invoices, employees’ expense claims, or accrual by journal voucher entry.
28. All purchases of inventory of goods for resale are recorded to either Acct.
#72001 or #72002, as applicable, in UniFi.
29. All inventory of goods for resale is physically counted, at least annually, with the required adjustments recorded in UniFi.
30. All department/unit obsolete and/or valueless inventory is written off and disposed of, as evidenced by appropriate supporting documentation, in accordance with applicable University policies, procedures and guidelines.
31. All department/unit inventory store rooms/areas are locked or appropriately secured when not controlled by a responsible department/unit employee.
Payroll
Rating: 1 = Never; 2 = Some of the time; 3 = Most of the time; 4 = All of the time
Indicate in the N/A column for those that are not applicable to the unit Rating N/A
32. All department/unit payroll transactions are processed through the
University’s payroll system.
33. All department/unit monthly time records are reviewed and approved by the
Dean, Director, Unit head, or the unit supervisor (including the Principal
Investigator for research projects) who has direct supervisory responsibilities over the applicable department/unit employee(s).
34. The department/unit maintains up-to-date records, on an individual employee basis, of all vacation, sick, and time-off-in-lieu, earned and taken
35. The department’s/unit’s senior financial officer and administrative head review the department’s/unit’s payroll transactions on a monthly basis to confirm that all unit employees’ payroll, including vacation pay/accrual is correct and in accordance with current wage contracts and collective bargaining agreements.
36. All department/unit employee garnishment and third party payment demand requests received by the department/unit are forwarded to Payroll by the end of the next business day following their receipt.
37. All documents containing department/unit employee personal information are securely stored in locked cabinets or secure locations in order to protect the confidentiality and security of the information.
38. All department/unit payroll costs that are allocated to grant fund accounts are in compliance with the applicable funding agreements.
Property and Equipment
Rating: 1 = Never; 2 = Some of the time; 3 = Most of the time; 4 = All of the time
Indicate in the N/A column for those that are not applicable to the unit Rating N/A
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39. All equipment (excluding furnishings) is tagged by the department/unit with a University equipment inventory tag when it is purchased, in accordance with University policy and procedures, and all required information is forwarded to Equipment Inventory (FSD) on the required tagging sheet.
40. All moveable equipment is appropriately secured (e.g. approved locking or fastening devices, laptop tie-down brackets or cable locks) so that it cannot be stolen, and/or is kept in locked storage when not in use.
41. A physical count of all Property and Equipment is performed annually to ensure that all assets recorded in the University’s equipment inventory system are still in use in the department/unit.
42. Changes to the equipment inventory records are communicated to
Equipment Inventory (FSD) to ensure that the University’s master inventory records are up to date.
43. Equipment inventory is reviewed on an annual basis to identify items that are obsolete or that have experienced a permanent impairment in value.
44. Disposal of equipment is in accordance with the Disposal of Assets policy, and is reported to Equipment Inventory (FSD) as soon as the item(s) have been disposed of.
Reviews, Reconciliations, and Other Activities
Rating: 1 = Never; 2 = Some of the time; 3 = Most of the time; 4 = All of the time
Indicate in the N/A column for those that are not applicable to the unit Rating N/A
45. Department/unit staff members have appropriate knowledge, training and skills to effectively perform their job functions.
46. Department/unit staff members are appropriately cross-trained for key processes.
47. Department/unit staff members are aware of all existing University Policies and Procedures that relate to their job functions.
48. Department/unit specific business processes and procedures are documented and readily available to staff for reference.
49. Department/unit staff members review department/unit UniFi transactions
(both salary and non-salary) on a monthly basis to ensure that all transactions initiated during the month have been correctly posted to UniFi.
50. Department/unit staff members reconcile all financial activities recorded in a sub-ledger to the balances in UniFi on a monthly basis (e.g. accounts receivable).
51. Documented monthly ‘Budget vs. Actual’ financial reviews are performed by department/unit revenue and expense account, with appropriate reports ( including explanations of significant variances) forwarded to the department’s/unit’s senior financial officer, department/unit head, and Dean for review.
52. All reviews and reconciliations of department/unit financial reports, activities and/or transactions are documented in writing.
53. Appropriate segregation of departmental/unit duties exists for the
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authorization, custody, record keeping and reconciliation processes, so that no one individual employee can control a process from start to finish. For example, department/unit personnel who approve or execute transactions are not responsible for performing related reconciliations. If not, please provide and explanation below.
54. Comments:
55. Department/unit staff members have current, written job descriptions that clearly explain their financial management responsibilities and expected results.
56. Authority has been formally delegated to staff members to act on behalf of the “financial managers of funds” to initiate and/or approve financial transactions within these funds.
57. The department/unit head/manager reviews financial activities/reports of the department/unit on a monthly basis.
58. All correcting journal vouchers and inter-fund transfers are authorized internally for appropriateness by an authorized individual who is not the preparer, before posting to UniFi.
59. The department/unit retains copies of all financial source documents, in either hard copy or electronic format, in accordance with the university’s
Management of University Records Policy and supporting Records
Retention Schedules.
60. The department/unit has appropriate procedures and processes in place to effectively manage and control personal use of University assets (including property, equipment, materials, or supplies) by department/unit employees, in compliance with all applicable University policies, procedures and guidelines.
61. Additional Comments:
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