How are areas selected for an audit?

The Office of Internal Audit prepares an audit plan on an annual basis.  The plan generally includes a scheduled audit in each major organizational unit on a regular basis (every three to five years).  The plan has provisions for special management requests and investigations of possible irregularities in areas.

Can an audit be requested?

An internal audit can be very beneficial, especially if there has been a change in either the management of the area or in key personnel.  An audit can provide an assessment of the current internal controls and assist in the modification of procedures.  An independent appraisal will be provided for the effectiveness and efficiency of an area’s activities.

An audit can be requested by directly contacting the Internal Auditor or submitting your request through the Financial Administration office.  The Internal Auditor is also available for consultation without having to perform an official audit.

What is the policy on receipts?

All transactions must have a receipt.  The receipt should be completed when the transaction is made.  The payor should be given the original receipt if a receipt book is used.  The carbon copy should be left in the book.  If a receipt is voided, the original receipt must be attached in the receipt book. 

Cash registers/terminals should be placed to enable the payor to see what is being rung up.  The machine-printed receipt should be given to the payor.

How often must money be deposited?

Weekly deposits are required by Wisconsin State Statutes!  Receipts totaling more than $1,000.00 should be deposited daily.

All departments should complete the standardized deposit slip when depositing cash with the Cashier’s Office.  Obtain the form from the Cashier’s Office.  Account name, account number, and description should be completed.  Questions on an account name and code should be addressed to the Financial Administration Office and coding information will be provided.  The period covered by the deposit should be entered on the deposit slip.

The Financial Administration Office is the only department authorized to have a bank account.  All other departments are prohibited from opening any bank account to deposit state funds.  All receipts collected by any department in the performance of assigned duties are considered state funds and must be deposited through the Cashier’s office.

How long must I keep receipts and documentation?

Filled receipt books, or any other form of receipts, must be kept for a minimum of seven years.  They can be kept in the department or given to the Financial Administration Office to store.  The seven year requirement includes purchase documentation, sales documentation, and other paperwork necessary to fully understand the receipt of revenue or the expenditure of university resources. 

What type of documentation does the auditor need?

The auditor will need documentation to verify any type of transaction made.  Examples of this documentation are receipt books, register tapes, purchase requisitions, receipts from vendors, software licenses, deposit slips, inventory records, payroll time sheets, approval forms, etc. 

Auditors often request documentation about departmental procedures and reporting structures.  Examples of this type of documentation include procedures manuals, flow charts, meeting minutes, organizational charts, etc. 

Why should I reconcile my account?

It is important to reconcile to verify revenue deposited is properly credited to your account.  It is possible for deposits to get posted for the wrong amount, to the wrong account, or not get posted at all.  The amount listed on the accounting records is the amount deposited to the account regardless of what may be written on a deposit slip.

It is important to reconcile to verify that all expenditures are properly charged to your account.  It is possible for expenditures to be charged for the wrong amount, to the wrong account, or not get charged at all. 

It is also important to reconcile your account in a timely manner.

Why should there be segregation of duties?

For good accountability and internal control!

A fundamental element of internal control is the separation of duties so that one individual cannot perpetuate and conceal errors and irregularities in the normal course of duties.  Segregation of duties is not always possible due to limited staff.  Strong internal controls require the segregation of responsibilities for authorizing transactions, physical custody of assets and the related record keeping.  For example, one individual could order, receive, approve for payment and verify charges to the monthly accounting report.  One individual should not have the ability to receive payments through the mail, prepare the deposits, reconcile the bank statements, and post payments to the receivable system.

Sharon Radtke, Controller
125 Graff Main Hall
(608) 785-8598
E-mail:  radtke.shar@uwlax.edu

[UW-L Internal Audit] [UW-L Administration and Finance]

Please send comments or suggestions for this page to: Vickie Baer
Last modified: 12/11/03
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