Capitulo 1: Aspectos generales de la investigacion
1.1 Justificacion y contextualización del problema
1 = Not effective 5 = Highly effective Details of items or responsibility to be attended to:
2.1 Planning processes that reflect the entity’s strategic directions exist.
Agency comments
2.2 Budgets and plans are in accordance with the entity's strategic plans. The entity’s strategic plan aligns with the State’s strategic plan.
Agency comments
2.3 Systems have been developed to ensure that the entity operates within agreed resource allocations.
Management strategies have been developed for all known risks that may affect the financial
sustainability of the entity.
Agency comments
2.4 A fraud and corruption control plan exists and is reviewed/amended at least every two years.
This is in addition to the annual review of fraud policies.
Agency comments
1 2 3 4 5 Y N NA
1 2 3 4 5 Y N NA
1 2 3 4 5 Y N NA
General
2.5 Appropriate segregation of duties is maintained. Generally, the
following types of responsibilities would be segregated:
- Transaction initiation - Transaction authorisation
(including disposal) - Transaction recording - Custody of assets
- Reconciliation of assets and liabilities to records
e.g. processing cash receipting is separated from the maintenance of accounts receivable balances;
non-current tangible asset acquisition is separated from the recording of the disposal function;
preparation of payroll is separated from the disbursements and human resource function.
Agency comments
2.6 Delegations of authority are reviewed at least annually.
Agency comments
2.7 Procedures for the review of all non-standard contracts and/or terms exist and are maintained.
Agency comments 2.8 Project management
methodologies are used to ensure projects (identified in the strategic plan) are delivered efficiently and effectively.
Reissue date: September 2015 60
2.9 Processes exist that ensure complete and accurate processing to the general ledger and
subsidiary systems (eg payroll, accounts payable, accounts receivable, asset register).
Agency comments
2.10 Reconciliations are performed on a regular basis, eg general ledger to subsidiary systems, bank accounts and source documents.
Ensure movements and reconciling items are appropriately explained and actioned.
Agency comments
2.11 Processes exist that accurately record the effect of all tax transactions completed.
Agency comments Expenditure
2.12 Procurement, payment and accounts payable procedures and policies exist and are regularly reviewed.
Agency comments
2.13 All goods ordered/purchased and services requested/provided are in accordance with applicable
legislation, regulations, Treasurer’s instructions, entity’s delegations of authority, entity contracts and/or whole of government contracts.
Agency comments
2.14 Only goods ordered or services requested that meet appropriate specifications or business
2.15 All goods ordered/purchased and services requested/provided are completely and accurately recorded in a timely manner.
Agency comments
2.16 Resources are purchased in appropriate quantities at
appropriate times for appropriate amounts to meet the entity’s objectives.
Agency comments
2.17 Goods received and related information are processed in a timely manner and are transferred to the appropriate sections and stores promptly and completely and accurately recorded.
Agency comments
2.18 Goods ordered but not received or contracted services not provided are investigated on a timely basis.
Agency comments
2.19 All credits / discounts and goods returned are completely and accurately recorded in a timely manner.
Agency comments
2.20 Mechanisms to prevent the unauthorised use of purchase orders, credit cards, cheques etc exist and are maintained.
Agency comments
2.21 Cheque control procedures exist and are maintained.
Reissue date: September 2015 62
2.22 Authorisations for the
de-recognition of, or adjustments to, amounts previously recognised (eg correcting journals for amounts in dispute, credit notes received) exist and are maintained.
Agency comments
2.23 Appropriate processes are in place to review new vendors.
Agency comments
2.24 Financial authorisations for the incurring, approval and payment of expenses are set at the right level, to the right people and strictly enforced.
Agency comments
2.25 Approvers (as well as the initiators) are appropriately aware of the needs and requirements of the public authority and can readily determine if purchases being made are overpriced and/or not required Agency comments
2.26 Expenditure is in accordance with the agency’s budget and quantities reflect normal usage patterns.
Agency comments
2.27 Staff with financial delegations understand their role in ensuring compliance with procurement and financial policies and practices and diligently exercise their delegations Agency comments
2.28 Adequate attention is given to the preparation and review of
management reports, which may highlight inappropriate transactions
Payroll
2.29 Payroll procedures and policies exist and are regularly reviewed.
Agency comments
2.30 Employees are paid in accordance with wage enterprise agreement contracts, awards and other established policies.
Agency comments
2.31 Payroll is calculated and recorded accurately and completely
(including payroll deductions) and only for approved services that are actually performed.
Agency comments
2.32 Bona fide reports exist and are regularly reviewed/checked, and discrepancies actioned.
Agency comments Income
2.33 Income recognition, income
de-recognition, accounts receivable and debt write off procedures and policies exist and are regularly reviewed.
Agency comments
2.34 Requests for invoices and raised invoices are in accordance with applicable legislation, regulations, entity’s delegations of authority, entity contracts and/or service level agreements etc.
Agency comments
2.35 Invoices and request for invoices are authorised and completely and accurately recorded in a timely manner.
Reissue date: September 2015 64
2.36 Credit notes are authorised and completely and accurately recorded in a timely manner.
Agency comments
2.37 Accounts receivable balances are monitored to ensure amounts are recovered in a timely manner.
Agency comments
2.38 Debts written off and/or provisions for bad debts are in accordance with applicable laws, regulations, Treasurer’s instructions, and the entity’s delegations.
Agency comments
2.39 Processes / mechanisms exists to review performance against
contracts, service level agreements etc.
Agency comments
2.40 Service level agreements are established and documented for all services rendered to other
SA Government entities.
Agency comments 2.41 Authorisations for the
de-recognition of, or adjustments to, amounts previously recognised (eg correcting journals for amounts in dispute, credit notes given) exist and are maintained.
Agency comments
Assets
2.42 Tangible and intangible asset accounting procedures and policies exist and are maintained.
Agency comments
2.43 Bank and deposit accounts and their operations are managed in accordance with applicable
legislation, regulations, Treasurer’s instructions and whole of
government contracts.
Agency comments
2.44 Cash balances are regularly reviewed to ensure compliance with the Cash Alignment Policy.
Agency comments
2.45 Financial assets are managed in accordance with the entity’s investment policies and to avoid cash shortfalls.
Agency comments 2.46 Cash receipts and cash
disbursements are completely and accurately recorded.
Agency comments
2.47 All receipts are deposited/banked daily.
Agency comments
2.48 Capital expenditure is only undertaken in accordance with strategic and capital budgets.
Agency comments
2.49 Tangible asset acquisitions, revaluations, transfers, disposals, write offs, adjustments,
de-recognitions and depreciation are completely and accurately recorded, in accordance with policies and procedures.
Reissue date: September 2015 66
2.50 Regular asset stocktakes are conducted. Stocktake records are reconciled to the asset register.
Differences are investigated and resolved.
Agency comments
2.51 Regular inventory stocktakes are conducted. Stocktake records are reconciled to inventory records.
Differences are investigated and resolved.
Agency comments
2.52 Inventory levels are reviewed on a regular basis to ensure optimal levels are carried.
Agency comments
2.53 Intangible assets are protected by intellectual property rights (where appropriate) and are completely and accurately recorded, including the associated amortisation.
Agency comments
2.54 Verification procedures exist to enable the existence and condition/impairment (where applicable) of all assets (including intangible assets) and liabilities on an annual basis.
Agency comments
2.55 All assets are safeguarded.
Agency comments
Liabilities
2.56 Personnel’s leave balances are monitored and actively managed to ensure the employee benefit liability is kept to a minimum.
2.57 Leave taken is certified by an appropriate senior officer and reconciled to payroll records.
Agency comments
2.58 Obligations entered into are in line with the entity’s strategic and capital plan; in accordance with applicable legislation,
Cabinet/ERBCC requirements, SA Government policies and other standards.
Agency comments
2.59 Borrowings (where entered into) are in accordance with Public Finance and Audit Act 1987 and Treasurer’s instructions (eg TI 8) and DTF Leasing Guidelines.
Agency comments
2.60 Contingent liabilities and assets and guarantees are completely and accurately recorded and in
accordance with Treasurer’s instructions/accounting policy frameworks.
Agency comments
2.61 Contracts and service level agreement requirements are articulated clearly, understood by personnel and legally enforceable.
Agency comments
2.62 Contracts are disclosed in accordance with the Department of the Premier and Cabinet’s Circular 027.
Reissue date: September 2015 68
Compliance Part 2: Financial accounting and budgeting
Examples of actions/procedures/policies/systems:
Plans
- Strategic plan aligns with the State’s strategic plan and reflects the governing body’s/CE’s strategic objectives.
Planning process (e.g. planning day) uses the entity’s objectives as the foundation and appropriate staff are involved in developing plans.
General
- Appropriate evaluation mechanisms are in place to report on the extent to which, once a project is completed, the outcomes and benefits delivered meet expectations.
- Ensure staff with delegations of authority are aware of their responsibilities and
requirements under Treasurer’s instructions, State Procurement Board Policies and Internal policies etc.
Expenditure
- Use standard contract terms.
- Ensure competitive bids are obtained for major acquisitions and regularly review ongoing contracts.
- Investigate, maintain and regularly review vendor information, service delivery, product quality, price, lead-time requirements and financial stability.
- Establish and maintain protocols for notification of potential vendor performance problems, appropriate investigation and resolution.
- Maintain appropriate procedures for inspecting the results of services provided or items received.
- Match invoice, receiving and purchase order information and follow up on missing or inconsistent information.
- Ensure information is being entered into the accounts payable, job cost and purchase order system on a timely basis.
- Ensure accurate input of data via reconciling accounts payable records with vendor
statements, use of control totals, validity checks and independent reasonableness checks.
- All changes to vendor files relating to expenditure activities are independently checked to source documentation and approved by an authorised officer.
- Policies, procedures, systems and internal controls exist for all types of expenditure activities, including but not limited to grants, payroll, gifts, personal expenditure, reimbursements and other recurrent expenditure.
- Maintain accurate inventory/store records.
- Reconcile accounts payable subsidiary ledger with general ledger and purchase and cash disbursement transactions and reconcile daily cheque run with system reports.
- Cancel all incorrect cheques.
- Pre-number, account for and maintain physical security over purchase orders and cheques.
Investigate missing documents.
- Maintain physical security over mechanical cheque signers and signature plates.
- Expenditure is authorised, and payments are made/disbursed, in accordance with applicable requirements (e.g. enabling legislation, Treasurer’s Instructions 8, 14, 15 etc) - Reconciliations are provided to the Department of Treasury and Finance in accordance
with Treasurer’s Instruction 6.
- Grant payments/agreements/supporting documentation are in accordance with Treasurer’s Instruction 15.
- Have pre-determined authorisation limits on how much employees can authorise and develop an exceptions report that includes all large purchases, write-offs and de-recognitions.
- Annual Accounts Payable Performance Reports are provided to the Department of Treasury and Finance in accordance with Treasurer’s Instruction 11.
Payroll
- Ensure payroll system correctly records agreed terms of payment and accurately processes this information.
- Ensure pay rates/deductions are properly authorised and accurately processed.
- Maintain logs or other documentation supporting or tracking changes to payroll database.
- Establish and maintain bona fide reports and/or perform random sightings of employees in remote locations.
- Maintain reconciliations of the employee subsidiary ledger to the general ledger control accounts and investigate and resolve any differences. Compare total hours and number of employees with totals in the payroll register.
- Scan source documents and maintain backups.
- Ensure pay goes to different bank account numbers. If different employees use the same bank account number, ensure there is a good reason.
Revenue
- Reconcile accounts receivable subsidiary ledger with general ledger and revenue and cash receipt transactions and reconcile daily banking’s with system reports. Follow up and resolve differences.
- Reconcile physical performance of services or delivery of goods to invoice date.
- Ensure accurate input of data via reconciling accounts receivable records with customer statements, use of control totals, validity checks and independent reasonableness checks.
- All changes to customer master files relating to income activities are independently
Reissue date: September 2015 70
checked to source documentation and approved by an authorised officer.
- Mail accounts receivable invoices or statements periodically and investigate and resolve disputes or inquiries by personnel that are independent of the invoicing function.
- Monitor number of debtor complaints regarding improper invoices or statements.
- Authorise credit memos by personnel independent of accounts receivable function.
- Debts are only written off in accordance with the provisions of Treasurer’s Instruction 5.
- Periodically follow up accounts that are not paid in a reasonable time frame.
- Check sales figures with invoices and reconcile sales with takings and purchase card receipts. Ensure all sales match documents such as delivery receipts.
Assets
- Segregate custodial and record keeping functions.
- Physical controls are established and maintained over access to and use of assets.
- Reconcile the asset register and bank account with the general ledger.
- Information systems should identify all sources of cash and dates cash is due (budget allocations, debtor collections, sales of assets etc) and cash requirements and date cash is needed (accounts payable, loan payments, payroll etc).
- Relevant personnel are aware of the Cash Alignment Policy.
- Cancel cash disbursement supporting documents to prevent their resubmission for payment.
- Establish clear definitions of asset categories/classes.
- Appropriate approvals are obtained before property, plant and equipment is disposed of/written off.
- Ensure non-current asset revaluations and useful life assessments are performed in accordance with Accounting Standards and Accounting Policy Framework requirements.
- Record and monitor use of tangible and intangible assets for non-entity related activities (eg motor vehicles, internet, photocopiers).
Liabilities
- Involve the Crown Solicitors Office at the planning stage of all significant contracts and agreements or have significant contracts reviewed by Crown Solicitors Office before execution.
- Establish and maintain a contract register that articulates obligations; renewal requirements; tax issues etc.
- Reconcile payments made under a Service Level Agreement or Contract to the Service Level Agreement or Contract.
- Appropriate personnel with appropriate delegation authorise/execute contracts/agreements and appropriate approvals are obtained for contract variations/extensions.
- Ensure relevant staff are aware of the Public Finance and Audit Act 1987,
Treasurer’s instructions, Treasurer’s mandate to use services provided by the South Australian Government Financing Authority’s and DTF Leasing Guideline requirements in relation to borrowings.
- Establish and maintain a Contingent Liability/Asset and Guarantees register.
- Establish a leave policy that encourages personnel to take leave on a regular basis.
Supervisors/Managers conduct a regular review of leave to ensure balances are within policy requirements.
Reissue date: September 2015 72