These Internal Control Ideals are presented as a self-assessment tool to aid managers, faculty and staff in evaluating the existing internal control structure of their unit. These ideals are not all-inclusive, but can serve as a guide for implementing good business practices, complying with existing policies, and limiting the potential for fraud.  If you have any questions or need assistance with this document please contact MAS.

INTERNAL CONTROL IDEALS
(Self Assessment)

GENERAL CONTROL ENVIRONMENT
Board of Regents

Personnel in your area are familiar with the various existing policies, (e.g. Board of Regents, University, etc.).

Supervisors and administrators in your area exhibit high ethical values, personal and professional integrity and compliance with existing policies.

Faculty/staff/students in your area are regularly informed on how to report ethical or fiscal misconduct concerns.

Roles and responsibilities of the people in your area are clearly documented and understood.

Personnel in your area, who initiate, approve, or review financial transactions receive appropriate training on the various University financial systems.

Your area has documented procedures for its primary operational processes.

Personnel in your area are cross trained or you have developed other plans for the replacement or backup of key personnel.

Personnel in your unit have enough time to complete their operational and fiscal responsibilities without sacrificing quality and compliance.

REVENUE, CASH RECEIPTS AND ACCOUNTS RECEIVABLE
Accounts

The procedures in place to establish accountability for revenues/receipts immediately upon receipt are in compliance with existing policies.

Cash and related items, (checks, credit card receipts) are physically safeguarded against theft and loss.

 The department promptly restrictively endorses checks upon receipt and timely deposits cash and checks (usually within 24 hours) with the cashier in Student Financial Services.

The department keeps a log of all cash and checks received, performs a documented independent verification of receipts to deposits, and reconciles the log of receipt to entries in FAS.

Documentation is available to support the deposits and to show that designated University accounts are being accurately credited.

If the department maintains any type of accounts receivable records, the records are updated and maintained by an individual independent of the cash receipt and deposit function.

The department does not have unauthorized bank accounts or charge accounts.

The department consults with the Comptroller’s office if the unit generates any unrelated business income so that UBIT (Unrelated Business Income Tax) issues can be considered.

PAYROLL AND HUMAN RESOURCES
Human Resources
Payroll

The individuals involved in the payroll process are familiar with University payroll processing procedures.

The payroll approver reviews adjustments, (on a test basis) to supporting documentation and documents the review on the supporting documentation.

Departmental paychecks are picked up and distributed by an employee independent of the payroll entry and approval process.

An employee independent of the payroll entry and approval process reconciles the payroll to Statement of Payroll Charges.

PURCHASING CARD
User's Guide
Ethics Commission

P-card users and supervisors have attended p-card training and are familiar with the University Purchasing Card Program policies and procedures that appears in the program User’s Guide.

Purchasing cards are kept in a secure place at all times and no one other than the designated cardholder uses the card for any purpose.

Purchasing cards are never used for personal purchases or for identification.

All purchasing card transactions are logged on a Cardholder Transaction Log as the purchases are made, on an on-going basis.

When there is no card activity during the month, cardholders still maintain a log for the month that indicates “no activity” on the face of the log.

Cardholder transaction logs are reviewed and signed by the cardholder and the supervisor each month and retained in a hard copy format with the supporting documentation.

Supporting documentation details what was purchased, when it was purchased and that the VISA purchasing card was the method of payment.

Purchases made are allocated to the appropriate chartstring monthly via PeopleSoft.

Faculty members who use a P-Card as part of their official responsibilities and whose purchases exceed $2,000 in a calendar year have completed the required Financial Disclosure Statement with the State of Maryland, as mandated by the State Ethics Commission.

PROCUREMENT AND DISBURSEMENTS (NON-PCARD)
Procurement
Accounts Payable
Travel

The department has developed procedures regarding the initiation, review and approval of all non-payroll, non-pcard expenditures.

All expenditures transaction and related vouchers are independently reviewed for completeness, accuracy, and compliance with University policies and in agreement with supporting documentation before being approved for payment.

University funds are used only for the purchase of goods or services that support the department’s mission.

The duties for authorizing purchases, receiving goods, approval of invoices for payments and reconciliation of departmental PS reports are separated between two or more employees.

SPONSORED PROGRAMS (GRANTS)
Sponsored Programs  
Grant Accounting

Unit personnel understand the definitions of unallowable costs or activities, (i.e. costs specifically unallowable for federal reimbursement but reasonable and necessary University expenses) and such costs are accounted for using appropriate chartstrings.

Direct charges to sponsored projects are properly authorized by a person who has been trained in the identification and proper accounting treatment of unallowable costs.

The unit has procedures in place to ascertain and document the appropriateness of direct charging any administrative and clerical staff salaries and any expendable materials/services (administrative by nature) to sponsored projects.

Documentation is available to demonstrate the appropriateness of the indirect cost rates being used.

PROPERTY AND EQUIPMENT INVENTORY
Inventory Control

The department has a designated property custodian who is on record with the Comptroller’s Office.

The department has made arrangements to secure its office space to provide adequate protection against the loss or theft of University equipment.

Property custodians as well as department personnel are familiar with existing policies and procedures surrounding property, plant and equipment which can be located through the Inventory Control section of the Comptroller’s website.

Equipment added, transferred, deleted or relocated is reported to the Comptroller’s Office in compliance with Inventory Control policy.

Department cooperate with the Comptroller’s Office when completing physical inventories.