Title: OACR audit focus
Full Citation
Permanent Link: http://ufdc.ufl.edu/UF00087344/00028
 Material Information
Title: OACR audit focus
Physical Description: Serial
Language: English
Creator: Office of Audit & Compliance Review, University of Florida
Publisher: Office of Audit & Compliance Review
Place of Publication: Gainesville, Fla.
Publication Date: August 2009
 Record Information
Bibliographic ID: UF00087344
Volume ID: VID00028
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.


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.R Audit Focus

A quarterly newsletter from the Office of
Audit & Compliance Review

Brian Mikell, Chief Audit Executive

Purchasn C d Pogry Cls

Inside this issue:

We're on the \eb at:

such as a cash register receipt, com-
pleted mail order form, or e-mail confir-
mation. Supporting documentation
should include:
* Unit cost and description
* Number of items purchased
* Date
* Vendor name and address
* Total cost of purchase
Red Flags indicating altered documenta-
tion include:
* Hand-written descriptions
* Receipts with multiple fonts
* Items purchased not itemized
* No e-mail confirmation from vendor

Documented Receipt of Goods
PCard guidelines state that the person
receiving the goods must sign the re-
ceipt or other supporting documentation
indicating that purchases have been re-
ceived and are appropriate for the uni-
versity. Controls can be enhanced
through independent verification of re-
ceipt of goods, which could be achieved
through implementing a central receiv-
ing location.

Cardholders should submit receipts to
the reconciler or approved within three
days and transactions must be approved
within eight calendar days.
For more information, please refer to:
(http://www. purchasing. ufl. edu/
main purchasingcards.asp).

The Purchasing Card (PCard) is a conven-
ient, and therefore popular, way for uni-
versity units to purchase items with a
small dollar value.
Since the university operates in a decen-
tralized environment, the department is
responsible for providing assurance that
transactions are appropriate, properly
authorized and accounted for. Key con-
trols for approvers to consider include:

Approvers have the responsibility to
approve, question, and possibly deny,
staged transactions. The approved
should have knowledge of university
directives and procedures, be available
to approve transactions timely and not
report to the person initiating the
transaction. To strengthen controls we
* Use of a PCard requisition form
signed by the approved.
* Approver review of monthly card-
holder aging report.

Review of Transactions
PCard transactions should be reviewed
before approving in myUFL.
OThe approved must review sup-
porting documentation when the
cardholder reconciles their own
Transactional Documentation
PCard transactions should be supported
with acceptable original documentation


l osh is R spo?

Avenu, Roo 21
P.O. Box 113025

Tel:' [(352) 392,-1391B

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Fiax:' z (5) '392-149

You have probably heard the term
"internal controls" a million times
but what does it really mean? An
internal control system is the proc-
ess that is used to provide reason-
able assurance that the unit's goals
and objectives are achieved. It is
the management of business risks
and is a dynamic process that
changes as personnel and circum-
stances change.

Who is responsible for internal con-
trols? Internal controls are every-
one's responsibility. The adminis-
trator who is responsible for the ac-
complishment of unit goals and ob-
jectives is also responsible for the
establishment, maintenance, and
monitoring of the internal control
system. He or she is responsible for
the sound financial condition of the
unit, protection of the university's
assets, including its human re-
sources, and compliance with fed-
eral, state and university rules, regu-

Audit g oordination

The Office of Audit and Compliance
Review (OACR) was established to
provide a central point for the coor-
dination of, and responsibility for,
activities that promote accountabil-
ity, integrity, and efficiency at the
University of Florida. The OACR has
the duty and responsibility to direct,
supervise, and coordinate audits re-
lating to the programs and opera-
tions of the university. To effec-
tively fulfill this duty and responsi-
bility it is important that the OACR
is aware of all audit and audit-
related services received by the uni-
versity and related entities, includ-

ing direct support organizations. Ap-
propriate personnel shall work with
the OACR and determine (1) what au-
dit or audit-related service may best
be provided by the OACR versus and
outside source, and (2) the level of
involvement by the OACR in procuring
audit and audit-related services from
outside the university. Whenever
these services are provided by a
source outside the university, a copy
of the written results shall be pro-
vided to the OACR. Remember, con-
tact OACR at 392-1391 if you your
unit will be audited or if you need au-
dit related services.

lations, and procedures. The adminis-
trator may delegate some of the re-
lated duties but cannot delegate ac-
countability. The internal control
system should be designed to discour-
age occurrences of errors or irregu-
larities and to identify, within a rea-
sonable time frame, errors or irregu-
larities that may occur.

The internal audit group has the re-
sponsibility of evaluating the internal
control system and ascertaining that
the ongoing processes for controlling
the university's risks are adequately
designed and functioning in an effec-
tive manner. To ensure that adminis-
trators understand these responsibili-
ties, the university has adopted the
Guiding Principles of Financial Man-
agement and Internal Control Princi-
ples, located on the Finance and Ac-
counting website:
financial-management.asp) (http://

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