Accounts Payable System Controls Yes No N/A

1 Separation of Duties Adequate segregation of duties is maintained

between approval and maintenance of POs, between receiving and
accounting for purchases and between AP and cash disbursements
functions.
2 Task performance and review/approval are by different people.
3 PO Review Purchase orders are prepared and reviewed for all
purchase transactions.
4 Purchase orders require amount and coding approvals.
5 Account codes assigned to purchase orders via the vendor and item
master files.
6 System rejects the duplicate entry of an invoice.
7 No-PO Purchases Procurement transactions not supported by PO
processed in accordance with compensating control procedures,
including appropriate approval of check request are approved by
Manager.
8 Vendor Selection Competitive pricing, delivery, availability and quality
for procurement practices require special review, evaluation and
approval.
9 The application is configured to restrict purchases, receipts and
invoices to defined suppliers in the vendor master file and defined
goods and services in the item master file.
10 New vendor set-up is reviewed by control clerk.
11 Costs by department/division/etc. are compared to budget.
12 New and existing vendors must be approved as qualified before
selection.
13 Vendor rating system measures vendor performance re: quality, timely
delivery and price.
14 Vendor master file is reviewed and maintained.
15 Purchase price tolerances are specified within the application to
mitigate the risk of inaccurate invoice entry and payment.
16 Buyer rotation program-Bidding helps prevent inappropriate vendor
relationships.
17 Duplicate tax identification numbers in the vendor master file are
reviewed.
18 Vendor invoice numbers must not be duplicated
19 Contract Review Contracts reviewed for unusual terms.
20 Ensure that District has met ORS 297 procurement requirements.
21 Pre-authorized services require signed contracts
22 Centralized Receiving Receiving performed in one central location
within each business unit.
23 Receiving/shipping during physical counts is controlled.
24 Interplant movement during physical counts is controlled.
25 Receiving Clerk performs counts/ verifies information against PO and
packing slip.
26 Goods or services are promptly entered into the application when
received and the default receipt date is the current date.
27 Receiving transactions entered into system daily by Receiving
Supervisor.
28 Receiving log is reconciled daily to system receiving report.
29 The application is configured so that goods or services are accrued
upon receipt.
30 System generates receiver number and traveler document
31 Established receiving procedures handle incorrect quantities or
delayed/ early vendor shipments.
32 Quantity tolerances are specified within the application to mitigate the
risk of inaccurate receipt, invoice entry and payment.
 Accounts Payable System Controls Yes No N/A
33 Debit memos adjust inventory for discrepancies
34 Transaction vouchered and paid only if goods/ services received and
matched with PO and valid invoice (3 way match).
35 System matches purchase order, receiving report and invoice entries
(3-way match).
36 System presents invoice for payment only after 3-way match.
37 System automatically records entry based on 3-way match.
38 If payment made from a receiver, PO and receiver must be matched (2
way match).
39 All exceptions to 3 way match must be flagged and investigated/
reviewed.
40 Unmatched purchase order reports are reviewed at period-end.
41 Exceptions to 3-way match are investigated daily.
42 Invoices are reviewed by appropriate departments prior to payment.
43 Invoices are approved daily by Principals/Directors to expedite timely
payments to vendors.
44 Manual Checks Manual checks and non - PO transactions must have
appropriate level of management review and approval.
45 System assigns coding for recurring payments.
46 Work orders must be approved before contractors are paid.
47 Person independent of AP/ Cash Disbursements process maintains
custody/ physical control over blank check stock and check signature
plates.
48 Separate controlled check stock for manual checks
49 System Checks System automatically writes checks and/ or validates
electronic payments based on approved invoice value.
50 System automatically writes checks and/or processes electronic
payments based on value of approved invoices.
51 System identifies available discounts for prompt payment
52 Check Signatures Dual signatures required on checks for all
disbursements exceeding locally determined threshold.
53 Disbursements greater than specified dollar amounts require additional
approval.
54 Disbursements made via wire transfer must be prepared and approved
for transmission by separate individuals.
55 CS AP-21 Manual checks must be individually reviewed and
approved.
56 List of manual checks is reviewed for coding issues.
57 Review checks requiring special handling
58 All manual checks require signature by authorized signer
59 Bank Accounts All bank accounts must be authorized by District
Business Office, including up-to-date list of authorized signers.
60 All bank accounts require up to date list of authorized signers
61 System will not post or accept a purchase order number more than
once.
62 Access AP personnel must not have access to vendor master file;
changes to vendor master file require independent approval.
63 GAAP Controls exist to ensure accurate month/month end cut - off to
fairly state financial statements.
64 Returned Merchandise Vendor returns are processed through system
to enable prompt recording of debit memos.
65 Debit memos are matched with vendor’s credit memos.
66 Debit memos require approval.
67 Controller review of monthly debit memos for unusual items.
 Accounts Payable System Controls Yes No N/A
68 Employee Expense Expense reports must be adequately supported
with receipts and detailed explanations for reimbursement in
accordance with District and School Site policies/ guidelines.
69 Disbursement requisitions for non-trade payables are reviewed.
70 Expense reports must be receipted and explained.
71 Purchase Cards Purchase cards issued and credit limits set based on
need (with appropriate vendor and transaction restrictions) and
transactions related to cards are independently reviewed and
approved.
72 P Card transactions must be reviewed and approved
73 Sales tax must be accrued on applicable P Card purchases
74 Periodic review of purchase card holders to ensure proper custody of
cards.
75 Petty Cash Accounting Manager must independently count and
reconcile petty cash fund maintained by AP Supervisor.
76 Count and reconcile petty cash at month end
77 Unclaimed Checks Unclaimed checks and/ or credits must be tracked
and resolved.
78 Secure and resolve disposition of any unclaimed checks..
79 GL Reconciliation AP sub ledger/ aging reviewed and reconciled to
General Ledger monthly.
80 Vendor statements are reconciled to Accounts Payable detail.
81 Vendors complain to Purchasing Department about overdue invoices.
82 Bank Reconciliations Disbursements bank account reconciliations
prepared monthly and reviewed on timely basis.
83 Rebates Rebates due from suppliers must be based on valid terms,
properly accrued and recovered on timely basis.
84 Accrue/ analyze vendor rebates on a monthly basis.
85 Problem Resolution Review and reconcile accrual for goods received
but not invoiced on monthly basis and investigate/ resolve old/ aged
items on timely basis.
86 Accrual for goods received not invoiced is reviewed.
87 Unmatched receiving reports are reviewed at period-end.
88 Aged report of open orders is reviewed and old/unusual items are
investigated.