Auditee Name - Louisiana Legislative Auditor



This checklist is useful to auditors in assessing internal control and compliance, and useful to Louisiana government entities desiring to perform a self-assessment. These questions were prepared from the recurring deficiencies found during the legislative auditor’s advisory services provided over the past several years. The checklist is intended to identify control weaknesses, non-compliance with state laws, and poor business practices. This checklist is not intended to be all-inclusive.

| |Yes | |No | |Comments |

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|Written Procedures | | | | | |

|Formal/written procedures are necessary as a clear understanding of what should be done, how it should be done, who should do it, and when | | | | | |

|it should be done and ensure the procedures followed meet management’s expectations. | | | | | |

|Written procedures aid in the continuity of operation and for cross-training of staff. | | | | | |

| | | | | | |

|Does the agency have written procedures for the following, where applicable? | | | | | |

| | | | | | |

|Preparing, adopting, monitoring, and amending the budget | | | | | |

| | | | | | |

|Procurement/purchasing, including (at a minimum): | | | | | |

|How purchases are initiated | | | | | |

|Use of purchase requisitions | | | | | |

|Types of requisitions (capital assets, supplies, travel, et cetera) | | | | | |

|Approval process for requisitions | | | | | |

|Preparation and approval process of purchase orders | | | | | |

|Checks and balances to ensure compliance with the public bid law | | | | | |

|Dollar thresholds that are lower than the public bid law where competitive quotes should be obtained to ensure the most favorable prices | | | | | |

|Written Procedures (Cont.) | | | | | |

|Documentation to be maintained regarding all bids and quotes: | | | | | |

|Bid notification letters that include the contract, plans, and specifications | | | | | |

|Documentation that the bids were properly advertised | | | | | |

|Bid opening documentation that include the submitted bids, bid tabulation sheet, and indication of which bid was accepted | | | | | |

| | | | | | |

|Receiving, recording, and preparing deposits for cash receipts | | | | | |

| | | | | | |

|Processing, reviewing, and approving disbursements | | | | | |

| | | | | | |

|Accounting for the business and personal use of cellular telephones | | | | | |

| | | | | | |

|Processing, reviewing, and approving time/attendance records and payroll, including leave taken and overtime worked | | | | | |

| | | | | | |

|Investing excess cash, including procedures for ensuring that bank balances and investments are fully secured and that the types of | | | | | |

|securities pledged by the financial institutions are appropriate (R.S. 33:2955(A) and R.S. 39:1221) | | | | | |

| | | | | | |

|Recording, tagging, and safeguarding of capital assets, including conducting physical inventories | | | | | |

| | | | | | |

|Controlling and monitoring inventories (e.g., fuel, materials & supplies, food, et cetera) [For school food services, see below.] | | | | | |

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|Using credit cards and filing expense reports supporting credit card charges | | | | | |

| | | | | | |

|Dispensing and reviewing the use of gasoline/diesel fuel | | | | | |

| | | | | | |

|Written Procedures (Cont.) | | | | | |

|Monitoring and operating the energy management system | | | | | |

| | | | | | |

|School Food Services: | | | | | |

|Accounting and processing of receipts for school food services at the individual schools | | | | | |

|Inventory control at the central warehouse and at the individual schools | | | | | |

| | | | | | |

|School Activity Funds - guidelines and standardized forms that aid individual schools in receiving, disbursing, record keeping, bank | | | | | |

|reconciliations, and monthly financial reporting | | | | | |

| | | | | | |

|Storing, issuing, and accounting for traffic tickets/citations and misdemeanor summons | | | | | |

| | | | | | |

|Evidence Room - recording, maintaining, inventorying, and disposing of confiscated items | | | | | |

| | | | | | |

|Disaster recovery/business continuity plan (includes computer system and continued operations/functions of the entity) | | | | | |

| | | | | | |

|Strategic Plan or Plan for Future Operations | | | | | |

|Is there a strategic plan or an operating plan that includes both short-term and long-range goals? If so, does the agency: | | | | | |

|Monitor the plan, at least quarterly, to assess whether the agency is on target with the plan? | | | | | |

|Use the plan in decision-making processes and for budgeting (e.g., projects to undertake, major purchases, contracting, et cetera)? | | | | | |

| | | | | | |

|Budgeting | | | | | |

|The questions are intended to cover both compliance with the Local Government Budget Act (R.S. 39:1301 - 1315) and management’s | | | | | |

|responsibility in using the budget as a tool to manage the entity and control spending. | | | | | |

| | | | | | |

|Does the agency’s budget include the following (R.S. 39:1305)? | | | | | |

|Adopted budget for the General Fund and all special revenue funds | | | | | |

|Budget message, including the preparer’s signature | | | | | |

|Estimated fund balances at the beginning of the year | | | | | |

|Estimated fund balances at the end of the year | | | | | |

|Proposed budget adoption instrument that defines the authority and powers of management and governing body in making changes to budget | | | | | |

| | | | | | |

|Does the agency's budget include a clearly presented side-by-side detailed comparison of information for the current year, including the | | | | | |

|fund balances at the beginning of the year, year-to-date actual receipts and revenues received and estimates of all receipts and revenues to| | | | | |

|be received the remainder of the year; estimated and actual revenues itemized by source; year-to-date actual expenditures and estimates of | | | | | |

|all expenditures to be made the remainder of the year itemized by agency, department, function, and character; other financing sources and | | | | | |

|uses by source and use, both year-to-date actual and estimates for the remainder of the year; the year-to-date actual and estimated fund | | | | | |

|balances as of the end of the fiscal year; and the percentage change for each item of information as required by state law [R.S. 39:1305 | | | | | |

|(C)(2)(a)]? | | | | | |

| | | | | | |

|Are performance measures incorporated into the budgeting process? | | | | | |

| | | | | | |

|Was the budget adopted prior to the beginning of the fiscal year (R.S. 39:1309)? [School boards must adopt the budget by September 15th - | | | | | |

|R.S. 17:88(A)] | | | | | |

| | | | | | |

|Are budgeted expenditures within estimated funds available (39:1309)? | | | | | |

| | | | | | |

|Budgeting (Cont.) | | | | | |

|Are budgets amended in accordance with R.S. 39:1310 - 1311? | | | | | |

| | | | | | |

|Financial Statements | | | | | |

|Management and the governing body should be provided with financial statements and budget comparisons for all funds each month. | | | | | |

| | | | | | |

|Is there a written policy that provides the nature, extent, and frequency of financial reporting information that should be provided to | | | | | |

|management and the governing body? | | | | | |

| | | | | | |

|Are monthly financial statements for all funds prepared and presented to the governing body? | | | | | |

| | | | | | |

|Do the monthly financial statements include a comparison of actual results with original or amended budget amounts, including the variance | | | | | |

|amounts and variance percentages? | | | | | |

| | | | | | |

|Does the governing body discuss the budget and actual financial results at its regular or finance committee meetings? If so, is this action| | | | | |

|reflected on the monthly meeting agenda and clearly documented in the minutes? | | | | | |

| | | | | | |

|Purchasing/Disbursements | | | | | |

|A lack of appropriate segregation of duties that is not mitigated by other management factors is a risk factor that could provide | | | | | |

|opportunities for management or employees to misappropriate assets. No single individual should control all facets of a financial function.| | | | | |

| | | | | | |

|Are there written purchasing policies? | | | | | |

| | | | | | |

|Is the purchasing function centralized within the agency? | | | | | |

| | | | | | |

|If an automated purchasing system is used, does the accounting system allow purchase orders to be created and invoices to be paid when an | | | | | |

|account is over budget? | | | | | |

| | | | | | |

|Purchasing/Disbursements (Cont.) | | | | | |

|Are at least three telephone or facsimile quotations obtained and documented as part of the approval process for purchases of materials or | | | | | |

|supplies costing between $10,000 and $30,000, as required by [R.S. 38:2212.1(A)(1)(b)]? | | | | | |

| | | | | | |

|Are bids obtained for the purchase of materials or supplies exceeding $30,000 as required by law [R.S. 38:2212.1(A)(1)(a)]? | | | | | |

| | | | | | |

|Are bids obtained for public works projects exceeding $150,000 as required by law | | | | | |

|[R.S. 38:2212 (A)(1)(a) and R.S. 38:2212 (A)(1)(d)]? | | | | | |

| | | | | | |

|Does the bid documentation for public works projects in excess of $150,000 include the Uniform Public Works Bid Form (bid form) as required | | | | | |

|by state law | | | | | |

|[R.S. 38:2212 A(1)(d) and R.S. 38:2212 (A)(1)(b)(ii)(aa)]? | | | | | |

| | | | | | |

|Does the agency allow contractors to submit bids for public contracts through a uniform and secure electronic interactive system - | | | | | |

|Electronic Bidding [R.S. 38:2212 A(1)(f)]? | | | | | |

| Exceptions: | | | | | |

|Public entities that are currently without available high speed internet access, until high speed internet access is available. | | | | | |

|Any Parish with a police jury form of government and a population of less than fifty thousand ( ................
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