BC 2005 06 20 REGULAR - Laserfiche WebLink

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June 20, 2005 - Regular Meeting Page 252 UPON MOTION of Commissioner Privette, seconded by vice Chairman Carruth and unanimously carried, the Board adopted the following Internal Auditing and Control Policy as submitted by Susan B. Fearrington, Assistant Finance Director, with an effective date of July 1, 2005. CABARRUS COUNTY, NORTH CAROLINA INTERNAL AUDITING AND CONTROL POLICY PURPOSE: This policy: (1) establishes policies and procedures for the Finance Department to provide internal auditing functions on behalf of the County to all Departments within Cabarrus County's fiscal responsibility, (2) promotes consistency of internal controls among all Departments (3) provides authority for employees of the Finance Department to perform internal auditing procedures throughout the County, and (4) ensures proper internal controls are in place to monitor and safeguard assets of the County and prevent fraudulent activities. INTERNAL AUDIT DESCRIPTION: An internal audit can identify areas that need improvement which will in turn reduce cost and/or liability to the county. It can also show how losses of assets and taxpayer funds can be prevented. In addition, an internal audit: . Determines the department's efficiency and effectiveness . Determines the department's compliance with laws, regulations, policies, procedures, contracts, and agreements . Evaluates the adequacy and effectiveness of the department's internal controls . Investigates matters related to thefts, frauds, and other irregularities that may occur . Results in recommendations for improvement which result in better utilization of resources SCOPE OF THE INTERNAL AUDIT: The scope of the internal audits conducted by the Finance Department may include, but are not limited to, reviews of invoices, purchasing card and credit card activities, reviews of all travel advances and reimbursements, and reviews of internal controls over change funds, cash receipts, inventories and disposition of County assets. . Invoices, Purchase card, and credit card activity will be reviewed for payment authorization, appropriate levels of signature authority, adequate supporting documentation, proper coding of expenditures, adherence to travel and meal policies, and compliance with purchasing policies and procedures. . Travel advances and reimbursements will be reviewed for adherence to the County's travel policies and procedures including proper travel authorization, signature authority and appropriate business justification. . Purchase Orders will be reviewed for adherence to the County's policies and procedures and for possible split transactions. . Change funds will be reviewed for appropriate security, adequate separation of duties, and reconciliations of change funds to the general ledger. . Contract payments will be reviewed for signature authority, appropriate retainage when applicable, proper coding, and adherence to the signed contract. . Inventories of non-capital property and equipment (including computers, printers, etc.) will be reviewed for completeness of record and reconciliations of departmental asset records to issued physical assets. FINANCE DEPARTMENT RESPONSIBILITY/AUTHORITY: The Finance Department staff will act as the County's agents in assuring that assets and resources of Cabarrus County are safeguarded against loss or improper use, and that the County's financial policies and departmental internal control procedures are followed. It is the responsibility of the Finance Department to review, test and monitor the internal controls in place for all Departments of the County to ensure expenditures are appropriate for their business function. The Finance Department will perform financial and internal control compliance audits of every department within Cabarrus County every two years, or as deemed necessary by the Finance Director. It is the responsibility of the Finance Department to issue an internal audit report, if there are material findings, upon completion of the fieldwork. A copy of this report will be sent to the County Manager for any comments or additional guidance. Finance