Self Assessment of Internal Controls
Linked below are control self assessment questionnaires offered to aid State agencies in meeting the requirements of the internal control law, 5 MRSA, §1541, sub-§10-A, and Controller’s Bulletin #04-09. The Bulletin requires agencies to submit completed copies of all questionnaires to the Office of the State Controller’s Internal Control Division annually by June 30 beginning 2004. These will be reviewed and recommendations for improvement of internal controls will be made as necessary.
Three questionnaire types are included: general elements of internal control, a financial transaction cycle type, and a federal compliance type. The two elements questionnaires cover two of the five elements of internal control identified by the COSO Report. These apply to each agency or subunit of the agency for which transaction cycle questionnaires will be completed. Not all transaction cycle questionnaires will apply to all agencies and not all federal compliance questionnaires will apply to all federal programs. All applicable transaction cycle type questionnaires should be filled out for each State agency and for each sub-unit where the cycle is separate and distinct. A set of federal compliance questionnaires must be filled out for each federal program for which the most recent SEFA amount was $4 million or above. Not all of the questionnaires are applicable to all programs.
The vast majority of the questions are phrased so that a “Yes” answer indicates a control strength and a “No” answer indicates a potential weakness. It is not expected that a questionnaire will have all “Yes” answers even if controls are adequately addressed. The questionnaires serve as an aid in evaluating how well risks are being addressed through present control policies and practices. They are also designed to raise awareness of certain issues and encourage further analysis and discussion. Other risk assessment and management activity is required to adequately address issues raised and provide adequate control.
General Elements of Internal Control
- Cash Receipting Cycle
- Accounts Receivable Cycle
- Purchasing/Accounts Payable Cycle
- Inventory Cycle
- Fixed Asset Cycle
- Allowable Activities/Cost
- Cash Management
- Davis-Bacon Act
- Matching, Level of Effort, Earmarking
- Period of Availability
- Procurement and Suspension and Debarment
- Program Income
- Subrecipient Monitoring