Interview Guide

Assessment of Control Activities of Non-Government Organizations in Tagbilaran City

Name of the Organization:

Segregation of duties

1. Who is responsible for the custody of received income? And for keeping the

corresponding accounting records?

2. Who is responsible for the bank reconciliation functions?

3. Who is assigned for the accounts receivable function? And the cash receipting?

4. Who is responsible for the authorization of cash payments? How about the

electronic fund transfer of cash payments?

5. Who is assigned for the processing or cheque signing? And the payment

recording and bank reconciliation functions?

6. Who is responsible for the authorization of accounts payable? How about the

processing and payment functions?

7. Who is the personnel assigned for the authorization of payroll? How about the

preparation of payroll?

8. Who is responsible for the payroll approval?

9. Who is assigned for payroll payment?

10. Who is the employee assigned for record keeping and bank reconciliation or

payroll payments?

11. Who is the person assigned custodial responsibility for petty cash fund?
 12. Who is responsible for the calculation, reconciliation, and replenishment of the

petty cash on a monthly basis?

13. Are the receipt, recording, custody, transaction authorization and performance

monitoring functions of all reciprocal grants clearly segregated?

14. Is the receipt and recording of grants, gifts and bequests segregated from

expenditure and monitoring of amounts expended?

15. Who is the employee designated to collect the organizational time sheets and

complete the payroll recap sheet?

16. Who is assigned to ensure that all time sheets are properly completed,

accurately totaled, and signed by the appropriate supervisor?

Authorization and Approval

1. Does the organization have a policy for employees or volunteers who are

authorized to approve expenditures?

2. Are all payments and obligations supported by properly approved, original

vendors invoice, purchase orders and receiving reports or other valid payment

authorization?

3. Do larger payments require a higher level of authority?

4. Are scheduled payments, or signed cheques, sent immediately by the

authorizers?

5. Do payment authorizers:

a. review and initial documentation supporting cheques indicating

completeness and appropriate approval?

accompanying cheques?

6. Are all invoices reviewed for correctness?

7. Do invoices receive appropriate supervisory approval before payment?

8. Is there only one person who can distribute petty cash funds?

9. Is access to data and organization program files restricted to authorized

personnel?

10. Are purchase requisitions initiated and approved by employees specifically

authorized to perform this task?

Verification and Approval

1. Describe the process of reconciling accounts.

2. Does the process include documentation of supervisory review and approval?

Who is the reviewer? Who is the approver?

3. How frequently accounts are reconciled?

4. Describe the process for handling reconciling items, How long does it take to

investigate and resolve reconciling items?

5. Are visible indicators of management reviews (such as initial and date) evident

on reconciliation and other reports?

6. Are checks or cash vouchers photocopied or is a cash receipt log is maintained

to create supporting documentation to which you can reconcile deposits?

7. Are invoices checked for mathematical accuracy and matched with purchase

orders and receiving reports prior to payments?

processing and recording functions?

9. Does the information on the receipt include: date, amount, payer, method of

payment, purpose of payments, cashiers name and account distribution?

10. Are the checks in place to ensure that the names on the payroll actually match

the real people who have employed?

Physical Control

1. Is there a safe deposit box?

a. Who is authorized to enter it?

b. Is there an inventory of its contents?

2. Are permanent records such as incorporation articles, bylaws, and real estate

deeds, kept in a safe place?

3. Are current or duplicate copies of the operating system and programs

maintained off-premises?

4. Are stored funds kept in a safe and secure (double locked) location until

deposited?

5. Are cash drawers assigned to one person and not shared across

shifts/employees? Is the transfer of ownership documented?

6. Are there any department assets (property, equipment, supplies, etc.) that

you believe are not adequately protected against theft or misuse?

7. Are telephone bills, copy machine logs, and fax logs reviewed to ensure that

personal use is kept to a minimum?

over-purchasing, pilferage, deterioration, and damage?

9. Are employees reminded to back up their current work often and to back up

the data on all directories regularly?

10. Do employees log off of their computers, or lock the screen with a password-

protected screen saver when they will be away from their computers for any

extended amount of time?

Independent checks

1. Are bank reconciliations prepared by a person independent of the cash receiving,

processing and recording functions? If the organization is unable to segregate

these functions, are bank reconciliations reviewed by someone independent of

the cash processing function?

2. Are payroll amount and details (e.g. bank account/ payee name) independently

checked by a separate person before they are processed?

3. Does someone independent of the cash receipting process review and approve

voids and refund transactions?