Control Environment Yes No N/A Notations Are the roles and responsibilities of financial and administrative staff (including the establishment of the unit Director as the appropriate signature authority) in your unit clearly documented and understood? A yes answer indicates that staff roles and responsibilities are clearly documented in job descriptions and departmental policies and procedures, and are reviewed with appropriate employees on a regular basis. Do staff members have knowledge of and access to appropriate University SPG s, internal control guidelines and divisional policies and procedures? Are all appropriate employees required to complete and sign a conflict of interest & commitment form as part of the performance evaluation process? A yes answer indicates that a department will enforce the divisional conflict of interest/commitment policy, that each employee has signed a conflict form and that a management plan is in place for any potential conflict. New conflict forms should be signed on an annual basis. Does the department have internal procedures for reporting fiscal misconduct concerns? A yes answer indicates that the department has informed their Business Office and appropriate Associate Vice President. Are all unit physical assets (computers, printers, cameras, etc.) properly identified as departmental property and secured? 6 Are you familiar with the Internal controls website (http://www.umich.edu/~avpf/internal Controls.htm)? Page of 8 /6/0
Budget & Financial Reporting Yes No N/A Notations Are financial reports along with detailed unit budgets reviewed monthly to determine the reasonableness and appropriateness of all expenditures as well as the reason(s) for appropriate spending variances (actual vs.budget)? A yes answer indicates that department managers promptly analyze budget vs. actual reports and address any significant variances from budget. Does the department have written procedures for the reconciliation of monthly Statements of Activity? A yes answer indicates that Statement of Activity transactions are matched to supporting documents such as packing lists or vendor invoices. Are Statements of Activity reconciled to source documents by an individual who does not authorize purchasing, payroll and other financial transactions? A yes answer indicates that there is segregation of duties between initiating and reviewing/reconciling financial transactions on a timely basis. What is your main reason for doing journal entries? Are all journal entries properly authorized by the unit director and processed through their Business Office Are there written procedures in place that clearly identify which positions are authorized to create and process JE s? 6 7 Are updated fiscal year end revenue and expense projections prepared monthly and submitted to their Business Office Are monthly unit financial statements and related supporting documentation reviewed and certified in writing by the unit director? Page of 8 /6/0
Cash Receipt Processing Yes No N/A Notations Are cash, checks or credit card payments collected? Where and why do you receive cash/checks? If so, is there a clear definition of which position is authorized to approve the responsibility and documented procedures for who is authorized to receive funds and issue refunds? A. Are pre-numbered customer receipts used, accounted for, and retained? A yes answer indicates that all customer receipts and sales invoices are serially numbered and all numbers are accounted for. Voided customer receipts and sales invoices are retained and kept on file in the department. B. Is cash and credit card information properly safeguarded against unauthorized access? A yes answer indicates that appropriate locked storage is used to adequately safeguard undeposited receipts from theft and unauthorized access to credit card numbers. Are checks made payable to the University of Michigan and restrictively endorsed upon receipt? A yes answer indicates that the department restrictively endorses checks (by imprinting "For Deposit Only University of Michigan") as soon as checks are received. If daily receipts are greater than $00, are all receipts deposited intact each day? A yes answer indicates that all funds collected by the department are deposited into a University account on the date of collection as required by Standard Practice Guide section 0.0 Cashier's Office and Departmental Cash Management. Does an individual who does not have cash handling responsibilities verify the daily listing of money, checks and other receipts to the validated copy of the cash deposit ticket and Statement of Activity? A yes answer indicates that someone without cash handling responsibilities verifies that daily receipt totals are deposited intact. Is there a unit petty cash fund? If yes, what is the value of the fund, do you have appropriate written approval for creation of the fund and does its use comply with all relevant University SPG s? What is the reconciliation cycle for the fund? Page of 8 /6/0
Purchasing Card Expenditures Yes No N/A Notations 6 7 8 9 Do the right people have P-Cards and are their individual spending limits and the business purpose justification for the card annually reviewed by department management for appropriateness? A yes answer indicates that only people with appropriate need have a University P-Card and that monthly spending limits are set at a level that only covers the expected spending. For each P-Card, is the approver an individual who has knowledge that expenses are reasonable, necessary and for appropriate University business? A yes answer indicates that P-Card approvers independently assure themselves of the appropriateness of purchases and the validity of related expenses. The approver shares accountability with the P-Card holder that each purchase is necessary and appropriate. At the completion of a hosting event, do P-Card holders complete a Hosting Documentation Form and submit it with their monthly Account Statement and Reconciliation Form? A yes answer indicates that Hosting Documentation Forms are on file for typical hosting expenditures such as food, beverages, floral decorations and rentals of banquet facilities. When employees leave the department, is a P-Card Maintenance Form prepared and submitted before the effective date of termination? A yes answer indicates the department has written evidence that P-Card Maintenance Forms were filed timely. Is itemized documentation and appropriate supporting documentation provided for all P-Card, ATM form and Travel Expense Report transactions? Are all P-Card, ATM form and Travel Expense Report transactions reconciled to source documentation? Are all P-Card statements, ATM forms and Travel Expense Reports signed by the employee and the unit director? When a P-Card is lost or stolen, is the P-Card vendor contacted immediately upon discovery to report the loss or any fraudulent activity? Does the P-Card holder promptly follow up on all discrepancies with suppliers and notify the P-Card office of all disputed transactions? Page of 8 /6/0
Purchase Order Expenditures Yes No N/A Notations When purchases exceed $,000, does the department submit a purchase order to Procurement Services who will then coordinate all correspondence with vendors involving pricing, terms, conditions, delivery, quantity, substitution or complaints? A yes answer indicates that departments are following appropriate purchasing policy. Split transactions on P-Cards or Non-PO vouchers to avoid complying with the $,000 limit are not allowed. Is Non-PO usage monitored to verify the appropriate payment option was used in accordance with procurement policies? A yes answer indicates that purchasing practices are monitored to ensure Non-PO s are not used to avoid the purchase order process in instances when the proper purchasing route is to submit a purchase order or use e-procurement and a strategic vendor at M-Marketsite. Page of 8 /6/0
Payroll Expenditures Yes No N/A Notations Are time and attendance reports completed in an accurate and timely manner and signed (not stamped) by the staff member and the unit director? A yes answer indicates that individuals approving time & attendance reports have direct knowledge that hours and absences reported are true and accurate, or receive assurance from someone who can verify or attest that the hours and absences reported are true and accurate. Are employees restricted from access to their own approved time and attendance reports before they are sent to the University Payroll Office? A yes answer indicates that approved time and attendance reports, including internal time documents, are not returned to staff members for delivery to the departmental timekeeper or University Payroll Office. Are Gross Pay Registers reconciled to source documents (time records not statements of activity)? Are duties appropriately separated for approving, submitting and reviewing employee time reports and other payroll documents used to process payroll? A yes answer indicates that one individual is not responsible for recording, approving and reviewing payroll transactions. Are fully completed and authorized (Unit Director) payroll submittal forms used to compensate staff for additional services provided above and beyond their regular assignments? Page 6 of 8 /6/0
Human Resources Yes No N/A Notations Are all job postings (permanent and temporary) properly approved by the unit Director and appropriate Assoc Vice President (when necessary) and processed through your Human Resources Office according to all University and Divisional guidelines? Are all job offers (permanent and term limited) reviewed and approved by your Human Resources Office before being communicated to the successful candidate? Are all changes in appointment properly authorized by the Unit Director and sent to your Human Resources Office for review, approval and processing? 6 Are all requests for effort certification completed in a timely manner and processed online with a copy to your Human Resources Office? When employment is terminated for any reason (termination for cause, retirement resignation, etc.) is a termination form along with any supporting documentation completed, signed by the unit Director and forwarded to your Human Resources Office? Before an employee s last day of work e the following items addressed: Have you completed and submitted to your Human Resources Office a Layoff and Termination form? Have you attached a signed copy of the employee s letter of resignation? Is P-Card access cancelled and the card retrieved? Did you complete and submit the employee s final time sheet? Is ITCom contacted to have all system access cancelled? Are all University keys, identification cards, cell phones, M-Token, etc. retrieved from employee Do you obtain the employee s signature on an as needed Effort Certification form when needed? Do you send that form to your Human Resources Office? Page 7 of 8 /6/0
7 8 Are all qualified RIF candidates reviewed and considered in accordance with SPG s? Are reference checks conducted on all finalists before a job offer is made? 9 Is an I-9 for completed and submitted to your unit Human Resources Office in accordance with government and University guidelines? I understand it is my responsibility as a unit director to assure that proper internal controls are in place within my unit. I have read and answered all questions included in this Unit Internal Controls questionnaire in accordance with that responsibility. Unit Name: Unit Director: Director Signature: Date: Page 8 of 8 /6/0