ncsu internal audit self assessment tool receipts/accounts ... · ncsu internal audit self...

NCSU Internal Audit Self Assessment Tool

Receipts/Accounts Receivable Relevant Policies: REG 07.30.02, Receipt Centers - Deposit of Funds REG 07.30.03, Receipt Centers - Operation and Use REG 07.30.04, Receipt Centers - Request for Authorization NC General Statute 147-77 REG 07.30.07, University Billings - University Invoices Office of the State Controller's Provision of State Services to Delinquent Debtors Policy Office of the State Controller's Statewide Accounts Receivable Program Policy REG 07.30.06, University Billings - Service Unit Billing REG 07.30.05, University Billings - Interdepartmental Transfer (IDT) REG 03.00.1, Notification of Gift Receipts

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Work to Perform Yes/No If no, Document Issue How are you going to correct the issue?

1. Does the Department/Unit have any revenue sources and activity? 2. Are receipts from Projects 350000 – 399999 processed in accordance

with the Trust Fund Authority (See Business Practices Self Assessment Tool, Section 2.D)? Note: See “Types of Funds” guidelines at: http://www.fis.ncsu.edu/controller/trust_funds/guidelines.doc

3. RECEIPTS A. Is the Department/Unit collecting and depositing monies on a regular

basis? i. If yes, proceed to #3B.

ii. If the Department/Unit only receives monies occasionally, is the Department/Unit taking the monies to a designated receipt center for deposit?

iii. If no, skip to section #4.

B. Is the Department/Unit an authorized receipt center? Note: Based on REG 07.30.04, the Department/Unit should have requested approval through the Controller’s Office (Form BA-114). Only authorized receipt centers should be depositing funds with the University Cashier’s Office.

C. Does the Office purchase receipt books?

http://www.ncsu.edu/policies/finance/accts_receivables/REG07.30.2.php



http://www.ncga.state.nc.us/EnactedLegislation/Statutes/HTML/BySection/Chapter_147/GS_147-77.html


http://www.ncosc.net/sigdocs/sig_docs/documentation/policies_procedures/sigPastDue_Account_Collection_Guide.html

http://www.ncosc.net/sigdocs/sig_docs/documentation/policies_procedures/sigStatewide_Accounts_Receivable_Pr.html



http://www.ncsu.edu/policies/alumni_dev/REG03.00.1.php

http://www.fis.ncsu.edu/controller/trust_funds/guidelines.doc



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i. If so, does the Office attach the proof of the purchase (e.g., a copy of the cash register receipt, invoice etc.) to the receipt book log/perpetual inventory of receipt books? Note: This can assist the Department/Unit in determining the number of receipt books that should be on hand.

D. Does the Department/Unit have a methodology (e.g. a receipt book log/perpetual inventory) for tracking used receipt books? Does the log/inventory include:

i. Beginning and end date of the receipt book?

ii. Unused receipt numbers within the receipt book?

iii. A description of what the receipt book is being used for?

iv. The date the receipt book was issued, the date the receipt book was returned?

v. Who the receipt book was originally issued and/or who currently is responsible for the receipt book?

E. Are all monies received including those coming through the mail recorded in a pre-numbered receipt book(s) or cash register? i. Does the Department/Unit retain the original receipt for monies

received through the mail or is it sent to the customer? If the original is retained by the Department/Unit, are the originals













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Work to Perform Yes/No If no, Document Issue How are you going to correct the issue? retained in the receipt book?

F. Are voided receipts retained in the receipt book?

G. Are receipts issued in a sequential manner (including date and receipt number)?

H. If pre-numbered duplicate receipts are used, does the Department/Unit have a process that prohibits writing on the duplicate copy? i. If duplicate copy is written on, does the Department/Unit recall

the original receipt? ii. If an error occurs, does the Department/Unit void the receipt

and issue a new one?

I. Are all checks restrictively endorsed immediately upon receipt?

J. Is the receipt book(s) adequately safeguarded? i. Where is it (they) kept? ii. Is the location locked? iii. Who has access and how frequently is this access reviewed?

K. Are checks and cash adequately safeguarded until deposited? i. Where are they kept? ii. Is the location locked?













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Work to Perform Yes/No If no, Document Issue How are you going to correct the issue? iii. Who has access and how frequently is this access reviewed?

See Business Practices Self Assessment Tool (Section 7. Safe) for additional safeguarding questions.

L. Does the Department/Unit deposit receipts daily when $250 is accumulated or at least weekly?

M. Does the Department/Unit transport monies from the Department/Unit to the University Cashier’s Office or Advancement Services or Foundations Accounting using an authorized secure transport service? (Note: This transport must be coordinated through the University Cashier’s Office).

N. Does the Department/Unit reconcile copies of each receipt within the receipt book, to funds deposited per the processed deposit slip, to the Financials system on a monthly basis? i. If the Unit utilizes a cash register, does the Department/Unit

reconcile register transactions to the Financials system monthly?

O. Is there adequate separation of duties for the following: receiving, recording, depositing, and reconciling? i. If no and complete separation of duties is not possible due to

lack of resources, are compensating controls in place (e.g.,













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Work to Perform Yes/No If no, Document Issue How are you going to correct the issue? verification steps and sign-offs, supervisory involvement and review, etc.)?

P. Select a sample of receipts, review deposit documentation for the following: i. Are steps 3.E-P incorporated into processing of monies,

receipts, deposit, and reconciliation process for sampled receipts?

ii. Can sampled receipts be traced to the Financials system?

4. EXTERNAL ACCOUNTS RECEIVABLE A. Does the Department/Unit bill external entities for goods and/or

services? i. If so, are all billings issued on University Invoices and

processed through Accounts Receivable (A/R)? ii. If not, has not using the University Invoices and processing

through A/R been pre-approved by the University Controller?

B. Does the Department/Unit receive and review monthly Aging Reports from A/R? i. For payments still outstanding, does the Department/Unit

reconcile the Aging Report to their outstanding invoices? ii. For paid invoices, does the Department/Unit ensure payment

has been applied to the appropriate account?













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Work to Perform Yes/No If no, Document Issue How are you going to correct the issue? iii. Does the Department/Unit notify A/R of any discrepancies?

C. Does the Department/Unit have a process in place to ensure that they do not continue to provide services to customers who are delinquent on their bills?

D. Does the Department/Unit have a procedure in place to ensure accounts receivable are collected according to University Regulation and the Statewide A/R Program?

E. If the Department/Unit does not use a University invoice and processes their own payments, does the Department/Unit: i. Internally maintain an Aging Report as one will not be provided

from A/R? ii. Follow collection procedures as noted above, including the

following usually performed by A/R: a. Does the Department/Unit use a collection agency? b. Does the Department/Unit assess interest and

penalties? c. Does the Department/Unit use Debt Setoff procedures? d. Does the Department/Unit refer to the Office of the

Attorney General?

F. Select a sample of accounts receivable from the most recent A/R Aging, review the Unit’s collection efforts based on steps 4.A-E.













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5. INTERNAL ACCOUNTS RECEIVABLE A. The following queries can be used to obtain a list of non-vendor

transactions which include deposits, Service Unit Billings (SUB), and Inter-departmental Transactions (IDT): i. For all Project and Grant Accounts:

IAD_IDT_SUB_Journals_OUC_QTR ii. For one Project or Grant Account:

Q_IDT_SUB_Journals

B. If the Department/Unit initiates SUBs, do they have a process for loading SUBs into the system and reconciling?

C. If the Department/Unit issues IDTs, do they have a procedure in place to track outstanding IDTs? i. Does the Department/Unit’s process include following up to

ensure the IDT posts to the appropriate account in the Financials system?

6. GIFTS A. Was Advancement Services notified within 5 working days via

a Notification of Gift Form (BA-151) of all gifts of cash or property?

i. If a cash gift was received for an established endowment fund, was the cash delivered













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Work to Perform Yes/No If no, Document Issue How are you going to correct the issue? immediately upon receipt to Advancement Service along with the Notification of Gift Form?

B. Review a sample of deposit slips i. Is the donor’s advance number (an identification

number) written on the deposit form when it is sent to Advancement Services, in accordance with their deposit procedures?

ii. If not, does the Department/Unit have read-only access to the University Advance System to obtain donor advance numbers?

C. Are receipts properly safeguarded until deposit is made with Advancement Services? See step 3.K for additional questions related to safeguarding.

D. Select a sample of deposits coded to revenue accounts 40269 and 40270. Has a Notification of Gift (Form BA-151) been completed for the sample of deposits coded to revenue accounts 40269 and 40270 and was it forwarded to Advancement Services?

E. If the Department/Unit has received donated items, did it complete the pertinent sections of the Notification of Gift Form (BA-151), and forward it to Advancement Services?











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