UCSB Controls Documentation8/07

SAMPLE

University of California

SAS 112 Key Controls Documentation

Campus: UCSB

Area / Payroll
Key Control / Reconciliation of the Monthly Distribution of Payroll Expense
Risk / Inappropriate or inaccurate charges related to Payroll could be charged to the department and result in a misstatement of the financial statements.
Control Objective
Department or group with primary responsibility / Campus Departments
Roles, Responsibilities and Accountability
(Who performs the control
f / (Description of the control steps)
  • Review the monthly Distribution of Payroll Expense for correctness, appropriateness, and validity of expenses. Compare expenses to approved payroll actions, using preapproval documents or PAN notices.
  • Compare the Distribution of Payroll Expense entries to the entries on the department General Ledger to confirm expenses
  • Follow up on any unexplained charges or variances.
  • Sign and date the Distribution of Payroll Expense

Other Department / Other / Other
Automated or Manual / Manual
Frequency / Monthly
Special Year-end Activity

SAMPLE

University of California

SAS 112 Key Controls Documentation

Campus: UCSB

Area / General Ledger
Key Control / General Ledger Summary Review
Risk / Expenses recorded in the General Ledger will be incorrect or inappropriate resulting in misstatement of the financial statements
Control Objective
Department or group with primary responsibility / Campus Departments
Roles, Responsibilities and Accountability
(Who performs the control / (Description of the control steps)
  • Departments review their General Ledger and prepare reports showing actual revenue and expenses compared to budgeted/projected.
  • Reports are reviewed for general propriety and accuracy.
  • Reports are signed and dated.
  • Unexplained variances, based on expectations, are reviewed and investigated.

Other Department / Other / Other
Automated or Manual / Manual
Frequency / Monthly
Special Year-end Activity

SAMPLE

University of California

SAS 112 Key Controls Documentation

Campus: UCSB

Area / General Ledger
Key Control / Reconciliation of the Department General Ledger
Risk / Incorrect or inappropriate expenditures will be charged to the department/campus that could result in a misstatement of the financial statements.
Control Objective
Department or group with primary responsibility / Campus Departments
Roles, Responsibilities and Accountability
(Who performs the control
Department Staff / (Description of the control steps)
  • Reconciles ledger transactions and compares supporting documentation for accuracy, general propriety, and reasonableness.
  • Staff reconciling the ledger sign and date the ledger upon completion (or it is recorded electronically in the online GL.)
  • Unusual items are notated and investigated.
  • Reviews the ledger for appropriateness, and approves the ledger by signing and dating the ledger (or “Approves” the online GL, where it is time/date stamped).

Other Department / Other / Other
Automated or Manual / Manual
Frequency / Monthly
Special Year-end Activity

SAMPLE

University of California

SAS 112 Key Controls Documentation

Campus: UCSB

Area / Extramural Funds
Key Control / Personnel Activity Reports (PARS) are approved timely
Risk
Control Objective
Department or group with primary responsibility / Campus Departments
Roles, Responsibilities and Accountability
(Who performs the control / (Description of the control steps)
PAR is reviewed and approved by responsible official with first hand knowledge of the work performed.
Other Department / Other / Other
Automated or Manual / Manual
Frequency
Special Year-end Activity

SAMPLE

University of California

SAS 112 Key Controls Documentation

Campus: UCSB

Area / General Ledger
Key Control / Monitor and Review Funds for Overdraft Status
Risk / Department/Campus could have funds in a deficit and that would affect the financial health of the organization
Control Objective
Department or group with primary responsibility / Campus Departments
Roles, Responsibilities and Accountability
(Who performs the control / (Description of the control steps)
Review of General Ledger balances to verify funds are not in overdraft status.
  • If funds are in overdraft, document follow up/corrective action.
  • Complete follow actions as needed.

Other Department / Other / Other
Automated or Manual / Manual
Frequency / Monthly
Special Year-end Activity

SAMPLE

University of California

SAS 112 Key Controls Documentation

Campus: UCSB

Area / Equipment
Key Control / A physical inventory is conducted every 2 years
Risk / Equipment may be over/under stated on the financial statements
Control Objective
Department or group with primary responsibility / Campus Departments
Roles, Responsibilities and Accountability
(Who performs the control / (Description of the control steps)
  • Conduct a physical inventory every two years. Verify location/condition of all assets listed in inventory.
  • Sign/date the Equipment Inventory Report (EQ980)
  • Return the Equipment Inventory Report to Equipment Management

Other Department / Other / Other
Automated or Manual / Manual
Frequency / Every two years
Special Year-end Activity

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