Biennial Report on Internal Controls - Procedures/Forms
For Questions, contact:
Heather Domenici, CPA, MAcc
Executive Branch Auditor III
Division of Internal Audits
NRS 353A.025 requires each agency to periodically review its system of internal accounting and administrative control. To meet the requirements of this statue, each agency is required to perform at a minimum, a biennial internal control review and evaluation to identify potential areas of weaknesses and non-compliance. The review should include:
1. An evaluation of the agency's actual procedures by completing the "Self Assessment Questionnaire (SAQ) and comparing the agency's written procedures to the SAQ to ensure and interview of persons involved with each fiscal process.
2. A comparison of the actual procedures used by agency staff to the agency's written procedures.
3. A sample test of each type of transaction processed by the agency. Agencies may use the Sample Transaction Testing Checklist or an equivalent document.
4. The SAQ and the transaction testing checklist must be maintained by the agency, but does not need to be submitted to the Division.
Upon completion of the above evaluations, each agency shall address any areas of weakness or non-compliance and document a corrective action plan. Findings and correction action plans should be summarized on the Report on Internal Controls. For departments with multiple agencies, findings and corrective action plans for each agency should be summarized on one department Report on Internal Controls. Findings and corrective actions should be identified by individual agencies. The Report on Internal Controls should be submitted to the Director of the Governor's Finance Office on or before July 1 of each even-numbered calendar year. Submission of the report to the Administrator of the Division satisfies this requirement.
Some agencies use a centralized fiscal office to perform their fiscal and accounting services. A centralized fiscal office may complete one SAQ for all the agencies it assists as long as the procedures used by the centralized fiscal office are the same for all agencies for whom it provides services. Both department director over the centralized fiscal office and the lead supervisor of the centralized fiscal office must sign the SAQ. An agency using a centralized fiscal office must complete a SAQ for any procedures it performs directly, and must coordinate with the centralized fiscal office to ensure all applicable questions are answered. The centralized fiscal office must make any agency for which it provides services aware of any non-compliance noted in the SAQ.