INTERNAL CONTROLS IC INTERNAL SELF-ASSESSMENT IMPREST CHECKING (BANK) ACCOUNTS INTERNAL CONTROLS SELF- ASSESSMENT FOR IMPREST CHECKING (BANK) ACCOUNTS

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1 ASSESSMENT TO BE COMPLETED INTERNAL CONTROLS IC INTERNAL CONTROLS SELF-ASSESSMENT The for Imprest Checking (Bank) Accounts was developed as a multipurpose tool to assess a unit s compliance with internal controls. Selected departments will be asked to complete this self-assessment as part of the University-wide compliance testing program. Departments should also use the self-assessment as a guide for managing important financial controls within their units. We encourage you to review this document periodically to assess your unit s compliance with proper internal controls. INTERNAL CONTROLS SELF- ASSESSMENT FOR IMPREST CHECKING (BANK) ACCOUNTS IMPREST CHECKING (BANK) ACCOUNTS An imprest checking account is established at a commercial financial institution. The base characteristic of an imprest account is that a fixed amount of money is reserved. Then, when money is spent, the imprest account is replenished to the original fixed amount. For example, start-up costs or payments to subjects participating in a research study might be paid through an imprest checking account, which would then be reimbursed from the Office of Sponsored Research or other appropriate funds. The initial funding for an imprest checking account is from the University s unrestricted endowment income pool and must be returned to the pool when the imprest checking account is closed. The imprest checking accounts are authorized and established when timing of disbursements is sensitive and critical to management objectives. IC INTERNAL CONTROLS

2 SELF-ASSESSMENT When your response to a question is either Not Applicable (NA) or No, it is necessary to provide a written explanation in the comments field. Please attach additional comments. Custodian s Name: Department Department Checking Account Number (last four digits): ConnectCarolina Chartfield String (if known): Checking Account Number (last four digits): ConnectCarolina Chartfield String (if known): Checking Account Number (last four digits): ConnectCarolina Chartfield String (if known): Checking Account Number (last four digits): ConnectCarolina Chartfield String (if known): IMPREST CHECKING (BANK) ACCOUNTS The imprest checking accounts are authorized and established when timing of disbursements is sensitive and critical to management objectives. 1. An imprest checking account has been established by the department. Yes No A yes answer indicates that the department currently has an imprest checking account. If a no answer, please skip to the certification section found at the end of this document. Page 1 of 7

3 2. Imprest checking accounts have been established per University Policy and the funds are used only for the University-authorized purpose. A yes answer indicates that the account was specifically authorized, in writing, by the Vice Chancellor for Finance and Administration. It also indicates that imprest funds are not, under any circumstances, used for the payment of stipends, personal services, payments to vendors, or loans and advances to employees. 3. Imprest checking accounts are replenished at least once a month to its original account balance when expenditures were recorded during the preceding thirty days. A yes answer indicates that at least once a month the account is reimbursed to its original account balance. It also indicates that proper supporting documentation for each disbursement is maintained and includes proper authorization. 4. The balance of the imprest checking account is in keeping with the approved purpose of the account and University policy. A yes answer means that the balance of the account does not exceed two months average disbursements from the account and the approved purpose of the account is still valid. Page 2 of 7

4 5. Bank statements are received directly and reconciled with disbursement records by someone independent of the cashier, payment processing and payment approval activities. (At a minimum reviewed by another individual.) A yes answer indicates that all disbursements were approved by an appropriate signer. In addition, during the reconciliation, the processed check is examined for alterations and signature validity. 6. Checkbooks, deposits slips, bank account numbers, and bank statements are kept in a secure location. A yes answer indicates that the above items are in a secure location with restricted access to authorized personnel only. To protect these items, they should be stored in an area that is not visible to unauthorized personnel and they should not be left unattended during the working day. When not being used, these items must be kept in a secured (locked) storage area, such as a file cabinet or safe located in an interior locked office. 7. Bank accounts are reconciled and reviewed on a monthly basis. A yes answer indicates that the department has written evidence (check marks etc.) that bank statements are reconciled and reviewed on a timely basis (within 30 days) by appropriate employees. Receipts and expenditures flowing through these accounts must be appropriate. Page 3 of 7

5 8. The number and scope of department authorized signers are reasonable. A yes answer indicates that the department has enough authorized signers so that no one can initiate and approve the same transactions unless a second individual reviews these or reconciles these transactions. 9. Persons authorized to approve expenditures are clearly identified, and all expenditures are approved in advance by an appropriately authorized person. A yes answer indicates that the department has written policies and procedures identifying the individuals authorized to approve expenditures, and the approval policy is communicated to all appropriate personnel. 10. Deposits are processed in a timely manner and sufficiently documented. A yes answer indicates that the department is in compliance with the Daily Deposit Act and promptly deposits (within 24 hours). There should be no deposits to the account other than account replenishment checks or checks issued for increasing the imprest bank balance. Page 4 of 7

6 11. Deposits are kept in a secured location. A yes answer indicates that the deposits are in a secure location with restricted access to authorized personnel only. To protect the deposits, they should be kept in a secured (locked) storage area, such as a file cabinet or safe located in an interior locked office. 12. Checks are restrictively endorsed upon receipt. A yes answer indicates that the department restrictively endorses checks (marked for deposit only) as soon as checks are received. 13. The department is aware of record retention requirements. A yes answer indicates that the department retains all financial and administrative records per the University s record retention schedule. Page 5 of 7

7 14. The imprest checking account is being used in accordance with University policy. A yes answer indicates that the account is used for its approved purpose and follows the Finance Division Policy 306 Imprest Checking (Bank) Accounts. UNDERSTANDING OF POLICY 15. Deposits to the imprest checking account should ONLY include; a. Account replenishment checks b. Checks issued for increasing the imprest account approved balance c. Reimbursement of loans and advances to employees d. Both a and b e. All of the above (a, b, & c) Reference: Policy 306 Imprest Checking (Bank) Accounts 16. An overdrawn imprest account will be charged all applicable overdraft fees for each day the account is overdrawn. Who is responsible for maintaining a positive cash balance in the account? a. Accounting Services b. Department (registered custodian of the account) c. Controller s Office Reference: Policy 306 Imprest Checking (Bank) Accounts Page 6 of 7

8 CERTIFICATION Completed by: (signature) (telephone) Name & Title: (please type) Date: Approval of Chair, Dean, or Director: (signature) Name & Title: (please type) Date: Page 7 of 7 Assessment To Be Completed