Biennial Report on Internal Controls - Procedures/Forms
Pursuant to NRS 353A.025, each agency must submit its Biennial Report on Internal Controls to the Division of Internal Audits – Financial Management section by July 1 of each even numbered year. This report must be emailed the Division of Internal Audit-attention: Financial Manager at email@example.com.
The Report on Internal Controls summarizes the results of agencies’ self assessment of their actual and written internal control procedures. Prior to completing the Report on Internal Controls, agencies must assess their actual and written internal control procedures using the Self Assessment Questionnaire and Sample Transaction Testing Checklist.
Report on Internal Control
The Report on Internal Controls summarizes the results of agencies’ self assessment of their actual and written internal control procedures using the Self Assessment Questionnaire. The report asks if:
- Actual processes are in compliance with the Self-Assessment Questionnaire and the Transaction Testing Checklist
- Written procedures are in compliance with the Self-Assessment Questionnaire
- If actual processes match documented procedures
Any “No” answers require an explanation and how and when the problem will be resolved.
Self Assessment Questionnaire and the Sample Transaction Testing Checklist
Each agency is required to periodically self assess its actual processes and written procedures and identify potential areas of weaknesses, and non-compliance by performing the following steps:
- Complete the Self-Assessment Questionnaire (SAQ)
- Assess Actual Processes - Agencies should answer the questions on the SAQ by interviewing and observing persons involved in fiscal processes.
- Assess Written Procedures – Agencies should evaluate their written procedures by ensuring they address all the items on the SAQ.
- Compare actual processes to written procedures and resolve any discrepancies.
- Complete the Sample Transaction Testing Checklist - Test a sample of sample of 3 to 5 transactions for each type of transaction performed by the agency.
Upon completion of the above assessments, each agency shall address any areas of weaknesses or non-compliance, and document a corrective action plan. The findings and corrective action plan should be maintained by the agency, and need not be submitted to Financial Management. The findings and corrective action should be available for review by the Post Review section of Internal Audits.