DISBURSING ACTIVITIES Page 2
YES NO
c. Are responsibilities for acknowledging the receipt of goods or services segregated from those preparing and writing checks?
d. Are responsibilities for preparing the bank reconcilement segregated from those involved in disbursing activities?
e. Are responsibilities for reviewing the bank reconcilement segregated from those involved in disbursing activities?
f. Are responsibilities for performing reconcilements between the disbursement ledger and the debits to the bank account
completed periodically by an individual segregated from those involved in disbursing activities?
g. Are responsibilities for individuals involved in the receipting process segregated from those involved in disbursing activities?
h. Are responsibilities for the preparation and approval of claims segregated from those involved in recording or entering cash
disbursement information in the records? (In most cases the disbursement will be posted during the preparation of the
disbursement.)
i. Does a responsible individual who is independent of the purchasing department perform periodic reviews of purchase prices?
2) Are there controls in place to ensure each disbursement is properly supported by a claim and an original (no photocopies)
invoices?
3) Does the fiscal officer or their designee review and audit supporting documentation to ensure funds are disbursed for only
authorized purchases?
4) Are invoices date stamped before releasing them for departmental approval?
5) When an invoice is received from a supplier not previously dealt with, are steps taken to verify the supplier actually exists?
6) Are claims approved by the governing board prior to payment?
7) If checks are written prior to the approval of the governing board, does an ordinance exist allowing for such items to be prepaid?
8) If checks are written prior to the approval of the governing board, does the governing board approve the disbursement at the next
regular board meeting?
9) What procedures exist to document the receipt of goods and services?
10) Are goods received accurately counted and examined to verify they meet quality standards?
11) Are checks signed only after all required documentation to support the payment is obtained, evidence that goods or services have
been received, proper approvals have been obtained, etc?
12) Are checks accounted for in numerical order and reconciled to the disbursement ledger and bank statement?
13) Are voided checks and documents to support the voided checks retained?
14) Are checks payable to “Cash” prohibited?
15) Is access to signature stamps, mechanical check signers or signature plates used to sign checks adequately controlled?
16) Are all disbursements made by check, except for small payments from petty cash?
17) Is the signing of checks in advance prohibited?
18) Are blank check stock kept in a secure location?
19) Are signed checks delivered directly to the mail room or postal office, making them inaccessible to persons who requested,
prepared or recorded them?
20) Are signed checks promptly recorded?
21) Is a reconcilement completed between the claims for payment approved by the governing board and the actual disbursements
posted to the ledger?
22) Is the review of the distribution of charges to various appropriation line items performed by an individual with knowledge and
experience to determine the correctness of the distribution?
23) Are error reports created to identify vendors with the same bank account number or same address?
24) Is there a separate bank account for payroll?
25) Is access to disbursement applications appropriately controlled by user logins and passwords?
26) Did management design the unit’s information system and related control activities to ensure the proper handling of
disbursements?
a. Did management implement control activities through written policies?
27) Are monthly disbursements compared to prior months to determine reasonableness?
28) Are there controls in place to ensure duplicate payments are not made?
29) Are electronic payments properly itemized, authorized, audited by the fiscal officer or their designee and approved by the
governing board?
30) Before electronic payments are submitted for approval, are the amounts reviewed to ensure the dollar amount charged is correct?
31) Are investigations made of unusual journal entries?
32) Are there controls in place to ensure all payments are made on a timely basis?
