5 Sept. 9 th, 2008 Cash processes are high risk and therefore subject to a lot of scrutiny Whoops!
6 Sept. 9 th, 2008 6 The Tales of ARMICS & SAS 112 Can you tell me a story about ARMICS & SAS 112?
7 Sept. 9 th, 2008 SAS 112 – Revised Audit Standards Auditors are required to consider whether a deficiency in controls, singularly or collectively, could be significant deficiencies AND Any significant deficiencies MUST be documented and communicated to the governing body.
8 Sept. 9 th, 2008 The Commonwealth’s ARMICS requires DOCUMENTATION of “Critical Functions”
9 Sept. 9 th, 2008 9 Rules & Regulations University Policies - http://www.virginia.edu/uvapolicies/ http://www.virginia.edu/uvapolicies/ UNIVERSITY REVIEWS AND RECONCILIATIONS – II.B.2II.B.2 RECORDS RETENTION AND DISPOSITION – II.C.1II.C.1 ESTABLISHMENT AND OPERATION OF A BANK ACCOUNT – II.E.1II.E.1 PETTY CASH, PETTY CASH CHECKING, AND CHANGE FUNDS – II.E.2II.E.2 CASH BALANCES – II.E.3II.E.3 CONTROLLING CASH ITEMS – II.E.4II.E.4 REVENUE GENERATING ACTIVITIES – V.A.1V.A.1 RESPONSIBILITY FOR THE COLLECTION, REPORTING, AND REMITTANCE OF VIRGINIA SALES TAX – V.A.3V.A.3 CASHIERING ACTIVITIES – V.B.1V.B.1
10 Sept. 9 th, 2008 Where do we run into trouble? Moving $$ in GL to grants (G awards) Unauthorized sales & services Unauthorized bank accounts Miscellaneous $$ collections Returned checks Securing “cash” items Documentation, documentation, documentation Communication with central offices
11 Sept. 9 th, 2008 Business Requirements Direct Bank Deposits UVA Cashiering Deposits These practices can differ greatly within UVA based on mission, unit, and best practices
12 Sept. 9 th, 2008 Matching Requirements to Practices In this case, they used Microsoft Visio, but you can use Word (shapes) or Excel to create flowcharts Here is an example of one unit’s ARMICS documentation for a process that differs from University policy.
13 Sept. 9 th, 2008 Matching Requirements to Practices Sample of an ARMICS SWOT analysis