Staff at the Hall County Library System will use the following internal controls to minimize risks.
When staffing permits, there will be a segregation of duties in the handling of cash. No individual is to have complete control in the handling of cash. Employees handling cash are to be assigned duties that are complementary to or checked by another employee.
Cash is protected by the use of registers and safes and kept in areas of limited access.
Incoming cash must be made a matter of record as soon as possible.
A unique cash register code is assigned to all employees authorized to have access to the cash register. The cash register is reconciled daily by an administrator. Any shortages or overages are carefully investigated and, to the extent possible, corrected.
A secure area is needed for the safeguarding and processing of cash received. Access to the secured area is restricted to authorized personnel only.
Cash retained on the premises overnight is locked up in a safe.
Bank deposits are made weekly. Authenticated, duplicate deposit slips are retained.
The Library Director reviews all bank reconciliations.
Cash registers will keep an established minimal amount of petty cash for change purposes only. The established amounts will be recorded in the general ledger.
Petty Cash will not be used as a method of cash disbursement.
Disbursements are handled in such a manner as to ensure that the proper funds and accounts are charged; that the disbursement is used only for authorized purposes; and that laws, rules, and regulations governing the disbursement are followed.
Controls are established to assure that all payments are made on a timely basis and in accordance with all purchase orders and contracts.
Controls are established to ensure that duplicate payments are not made.
Approved invoices (or authorized facsimiles) totaling the amount of the disbursement is to be attached to each check before submitting for signing. Cash disbursements will not be paid using a vendor statement.
Employee duties in the handling of disbursements are separated to the extent possible with regard to:
• The initiation of purchase requisitions and purchase orders.
• The approval of invoices.
• The recording of invoices.
• The recording of disbursements.
• The mailing of checks.
Each cash disbursement is properly vouched and approved by the check signers authorized by the Hall County Library System Board of Trustees. This will ensure the proper and regular view of all disbursements.
Disbursements are to be made by EFT/check or journal voucher. Dual signatures (authorized by the Hall County Library System Board of Trustees) are required on all checks.
Blank checks are to be placed in a secured area. Access to blank checks is limited to the bookkeeper and library director.
All issued or voided cash disbursements are to be recorded in the general ledger. Voided cash disbursements are to be filed with cancelled disbursements along with documentation of why the disbursement was voided.
The Hall County Library System adheres to Hall County’s travel regulations including reimbursements amounts set in the County’s policy.
Travel is approved in advance by the employee’s supervisor and the library director.
Travel expense reimbursement forms are signed by the employee and approved by the employee’s supervisor and the library director to insure compliance with travel regulations.
Travel expense reimbursement forms must have all required supporting documentation attached.
Cash advances to employees to cover expenses to attend approved travel must be approved in advance with a detailed listing of anticipated expenses. Employees must provide receipts for all expenses and return any unused funds within two days of return from the travel.
Disbursements – Checking Account
Bank checks are completely filled out before being presented for signature.
Spoiled or voided checks are retained and documented.
Dual signatures are required on all checks.
Approved invoices are presented with checks for signature.
Someone mails checks other than the person preparing the checks.
Ledgers are reviewed monthly.
Purchase order numbers are used.
Invoices are matched with purchase orders and receiving reports before approval for payment.
Invoice computations and pricing are verified before approval for payment.
Invoices are paid in a timely manner and statements are reviewed monthly.
Claims are filed promptly for goods damaged in shipment.
Receivables are made a matter of record promptly upon the completion of the acts which entitle the library to collect the amounts owed it.
Controls are established so that receivables are reported in the proper funds and accounts.
Records of receivables are strictly guarded. Limited access to these records as well as the physical protection of them is required.
Receivable accounts are reviewed monthly.
Controls are established to ensure the prompt follow-up of past due receivables.
Supply and Merchandise Inventories
Authorized individuals are responsible for receiving and issuing the supplies to library staff. These individuals are to be responsible for inspecting all goods received to verify that they conform to specifications. In addition, these persons are responsible for the enforcement of all policies necessary for the internal control of these assets.
Specific central points for receiving and issuing supplies or merchandise are determined. All loading and unloading operations are closely supervised.
Quantities received are compared to the bill of lading and receiving report.
Effective control procedures are established to ensure that supplies are used properly and for authorized purposes.
Supplies and merchandise not currently in use are stored in secured areas where access is limited.
Damaged and obsolete goods are physically segregated.
Supplies and merchandise are kept neat.
Employees responsible for supervision and time keeping, personnel, payroll processing, disbursements, and general ledger functions are to be assigned duties that are complementary to or checked by another employee.
Detailed records of hours worked are maintained and approved, as appropriate.
Payroll charges are reviewed and approved before disbursements are made.
Payroll charges, including fringe benefits, are to be recorded and distributed accurately and promptly.
Written procedures are required for authorization, recording, and controlling sick leave, annual leave, and other leave time.
Procedures are established to ensure that all attendance reports and payroll reports are verified by supervisory personnel.
Payroll records and reports are to be adequately safeguarded.
Automated Data or Information Processing
Information Technology is independent of the accounting and operating departments for which it processes data.
Controls are established and followed for the preparation and approval of input transactions outside the IT department. These controls prohibit the IT department from initiating and processing transactions without the approval of affected users.
Controls are established over completeness and accuracy of input, processing, and output.
Controls are established over entry of data in on-line systems to restrict access to terminals and data entry to authorized employees. Password security is established on an individualized basis.
Controls are established over the use and retention of tape and disk files, including provisions for retention of adequate records to provide backup capabilities.
Controls are in place which safeguard and limit access to data processing equipment, tapes, disks, files, system documentation, and application program documentation to authorized employees.
Written documentation of procedures are established and followed by computer operators.
A contingency plan is in place providing for continued processing of critical applications in the event of a disaster to the computer facility.
Controls are established for the use and contents of personal computers.
Accounting records are neat and in proper order.
Accounting records are kept current.
Employees take periodic vacations and other employees then perform their work.
Internal audits are performed.
Journal entries are made by designated employees.
A current organizational chart is maintained and followed.
Appropriate documentation of procedures exists for all agency systems and functions such that the organization could continue to operate if key employees leave.