Internal Controls and Financial Reporting for Executive Boards Eva Rooks, MA Health Services...
-
Upload
alexander-fleming -
Category
Documents
-
view
214 -
download
0
Transcript of Internal Controls and Financial Reporting for Executive Boards Eva Rooks, MA Health Services...
Internal Controls and
Financial Reportingfor Executive Boards
Eva Rooks, MAHealth Services Administrator/TrainerHealth Systems Quality Assurance DivisionWashington State Department of Health
Executive Boards’ Financial Oversight • Handling money in a secure manner• Helpful policies and procedures to
increase safety• Red flags of financial trouble • Financial reports• Safeguarding financial data • Resources
Handling Money in a Secure MannerChecks: •Unissued checks should be in a secure location•Checks made to “Cash” or “Bearer” should be prohibited•Abbreviated payee names should be prohibited•Voided checks should be cancelled and retained
Handling Money in a Secure MannerChecks: •Restricted endorsements (For Deposit Only) should be placed on all check remittances upon receipt•Follow up on outstanding checks•Supporting documents (invoices) should be marked as paid with the check number when the check is prepared
Bank statements:•Opened and reviewed by the Executive Board•Bank reconciliation should be reviewed, initialed and retained by the Executive Board monthly
Handling Money in a Secure Manner
Bank statements:•Review the bank statement and reconciliation for interbank transfers, missing and voided checks.•Review cancelled checks for authorized signatures, unusual endorsements and alterations.
Handling Money in a Secure Manner
Policies and ProceduresExpenses:•Gas and other expenses should be closely reviewed for irregularities •Non-reimbursed expenses should include parking tickets and moving violations.
Policies and ProceduresProcedures:•Date stamp all incoming mail •Credit card statements should be reconciled like a bank statement, be accompanied by receipts and reviewed by the Executive Board
“Red Flags” – Embezzlement / Fraud • Financial difficulties• Living beyond ones
means• Regularly comes to work
early and leaves late• Works nights and
weekends
• Seldom absent or on vacation
• Comes into the office during days off
• Asks others to hold work while away from the office
Review Reports Sent to DOH • Balance Sheet Prior Year
Comparison• Profit & Loss Prior Year Comparison• Budget Status Report • General Ledger, with bank
reconciliation • Misc. other reports
Safeguarding Financial Data • Backup computer files should be stored
in a location secure from fire and theft• A Washington State Patrol background
check should be obtained on all employees
• Employees with access to cash and other assets should have fidelity bond insurance
Resources • Washington State Ethics Board
Ethics Help Line: 360.664.0781www.ethics.wa.gov
• Your current CPA or accounting firm