The business purpose and attendees are not adequately documented for food expenditures.
Inappropriate use of department funds for items of personal use (i.e., bottled water, personal phone calls, personal copies, gifts).
Original supporting documentation should be maintained to support all employee travel (i.e., conference brochure, hotel receipt with a zero balance, rental car receipt, airline passenger receipt coupon, airline itinerary).
Inadequate Training or Knowledge of Policies and Procedures
Departments should have written manuals (or access to policies on web-sites) as a form
of administrative control, to provide guidance to employees regarding departmental
policies and procedures, and to facilitate the training of new employees.
Departments should have copies of all university policies and procedures.
Inadequate Time Records/FLSA Compliance Issues
Time sheet should be filled out for all non-exempt employees.
Non-exempt employees working over 40 hours in a work week should be paid or earn comp
time at time and one-half.
Time sheets should be completed by the employee and reviewed/approved by an appropriate
Time sheets and related leave documentation should be maintained within the department
for at least 3 years.
Inappropriate Access - Lack of Security
Management should provide safeguards for physical objects, restricted information,
critical forms, etc.
Control over keys; store cash and checks in secure place; lock desks and doors after
hours; restrict access to forms (request for payment, petty cash reimbursement, etc.);
change safe combinations periodically, always when an individual who knows the combination
Inadequate, or Untimely, Review of Turnaround Reports
The Advantage accounting system is the official financial record of the university. All
transactions recorded in the Advantage accounting reports should be reviewed and verified on a
monthly basis. Senior administrators, chairs, principal investigators should review the
accounting reports for reasonableness and propriety. Reports generated by local
"shadow" systems, although a useful management resource, do not represent the
official record of the university.
The People Soft HRIS is the official system to support budgeting and position control
needs as well as benefits administration, affirmative action reporting, payroll
processing, other employee related record keeping and management reporting
requirements. All transactions recorded in the People Soft reports should be reviewed
and verified for reasonableness.
Inadequate Segregation of Duties
Strong internal control requires the appropriate segregation of responsibilities for
authorization, physical custody of assets, and related record keeping.
The person who prepares deposits should not post receipts to customer accounts.
One individual should not have the ability to order, receive, approve for payment, and
verify charges to monthly accounting reports.
Inadequate Allocation of Costs
Ensure that costs are properly allocated and recovered when setting rates.
Local mailing costs, copies, telephone expenses should not be charged to a state
Lack of Control Over Capital Equipment
An equipment listing should be maintained and continuously updated to reflect new
purchases and dispositions.
Equipment should be properly tagged as property of Northern Arizona University.
A record of equipment taken home or off premises should be maintained and updated as
Maintenance contracts on equipment should be periodically reviewed to ensure that the
university is paying only for equipment still in use.
When faculty leave the university, appropriate approvals are required before equipment
can be taken from the university.
Untimely Deposit of Revenue Receipts
Cash and checks should be deposited when $200 is reached or within 5 business days,
whichever occurs first.
The risk of loss to the university is increased when cash receipts are held in
departments for extended periods of time before deposit.
Personal Use of NAU Equipment
Employees should not make personal toll calls on NAU phones or personal copies on NAU