When it comes time for planning for budgets for the next year it may be time to start thinking about the state of your Organization’s internal controls.
Your internal control system is a system designed to ensure that your assets are safeguarded, financial accounting information is reliable, and there is efficiency of operation.
It may be an excellent time to review these questions to help To assess the status of your current financial practices:
1) Are checks pre-numbered and used in sequence?
2) What are the controls for unused checks and are they adequate?
3) Do the people preparing the checks have access to blank checks and signing authority?
4) Are all check numbers accounted for?
5) Are voided checks properly mutilated and kept?
6) Are all employees handling cash bonded?
7) Are checks received restrictively endorsed?
8) Are receipts deposited on a routine basis?
9) Does the person handling receipts also complete the bank reconciliation?
10) Is the bank notified immediately of changes in authorized signers?
As you are planning for the next year, think about and discuss these questions in order to help protect your organization.
By Steven M. Brettholtz, CPA, CFF, CGMA Managing Partner at Myers, Brettholtz & Company, PA. Steve can be reached at email@example.com or 239.690.4256.